As many cities are aware, implementing HB 1406, passed in 2019, has been challenging due to some confusing language and unintended consequences.

AWC, the Washington of Association of Counties, the state, housing advocates, and legislators have been working since the bill’s passage to address some “fixes” that would better achieve the goal of the legislation—shared revenue for affordable housing—without increasing the financial commitment of the state. Companion bills were introduced, HB 2797 and SB 6631, at the start of session, but the conversation on amendments continued.

HB 2797 is still alive in its original form. The bill would address:

• The timing issue if a city adopts the ordinance before a county;
• Extending the timeline to adopt a resolution of intent and ordinance to impose the tax credit;
• Cities without a qualifying local tax in a nonparticipating county; and
• Clarifying language on how the funds may be spent.

We continue to work with our partners and legislators to support the Senate’s changes. To continue to advance, HB 2797 must get voted out of the House by February 19.

UPDATE: HB 2797 passed out of the House with the amendments we supported! Thank you to the members of the House of Representatives for moving this important piece of legislation for cities.