Over the last few years, lawmakers have proposed dozens of bills aimed at encouraging construction of housing. Despite the unusual circumstances surrounding session this year, we expected to see the trend continue. And indeed: more housing-related
bills are up for hearings during the second week of session.
Creating optional housing benefit districts (HBDs)
HB 1128, sponsored by Rep. Cindy Ryu (D–Shoreline), creates an optional funding mechanism modeled after special purpose districts, such
as a transportation benefit district. The bill allows a city or county to create a housing benefit district via ballot or councilmanic vote to levy a sales and use tax. In addition, the district could levy a property tax by ballot measure. The revenue
must be used to create affordable low-income and middle-income housing and community development projects within the district.
Incentivizing construction of “American dream homes”
SB 5189 was introduced last year by Sen. Phil Fortunato (R–Auburn) and returns this year. The bill creates an optional program that consists
of the following:
- Defines an “American dream home” as a low-income owner-occupied single-family home of 1,700 square feet or less;
- In exchange for the state taxes charged during construction, a city exempts each eligible home from impact fees and cap permit fees at $1,250;
- The home must maintain low-income occupant status via covenant or other restriction; and
- The builder receives a business and occupation tax credit of 4% of the selling price.
Encouraging ADUs in rural areas
SB 5221, sponsored by Sen. Chris Gilden (R–Puyallup), is a short bill that intends to remove a barrier to accessory dwelling unit (ADU)
development in rural areas. The bill would not count detached ADUs outside of urban growth areas against the density calculation of that area if:
- Each parcel had no more than one ADU;
- The ADU met location, size, and appearance requirements of the rural character of the area, including near the primary dwelling;
- The ADU did not interfere with agriculture or natural resource use of the area; and
- The square footage of the ADU were not more than 50 percent of the primary dwelling
Dates to remember
HB 1128 is scheduled to be heard on Tuesday, January 19 at 10 am in the House Local Government Committee and voted on in the same committee on Friday at 8 am.
SB 5189 & SB 5221 are scheduled for public hearing in the Senate Housing & Local Government Committee on Tuesday, January 19 at 8 am.