HB 1494 makes several reforms that were requested by the Department of Commerce to improve the multifamily property tax exemption program (MFTE) to allow cities and select counties that need multifamily development to encourage these housing units.

The bill, sponsored by Rep. Alex Ramel (D-Bellingham), makes several changes to the MFTE statues. The most notable are as follows:

• Any city with a population of at least 15,000 and a mandatory inclusionary zoning requirement is authorized to offer the 20-year rental exemption in areas within one mile of high-capacity transit. The high-capacity transit must have at least a 15-minute scheduled frequency.
• A household may continue to qualify as low-income or moderate income unless the household's income exceeds 150 percent of the established income limit.
• For owner-occupied projects that receive a 12-year exemption, a deed restriction or covenant that ensures the affordability and other MFTE requirements are met is required.
• Cities offering the MFTE are required to ensure any new residential targeted area meets the anti-displacement requirements under the Growth Management Act.
• Authorizes cities to impose a sliding scale penalty, rather than canceling the exemption for noncompliance.
• New reporting and notification requirements.

Date to remember

HB 1494 is scheduled for a vote in the Senate Ways & Means Committee on Thursday, April 3 at 1:30 pm.