AWC is tracking a number of bills related to affordable housing property tax exemptions.

Nonprofit homeownership development

HB 1107, sponsored by Rep. Vandana Slatter (D–Bellevue), provides a state and local property tax exemption for real property owned by a nonprofit entity or a qualified cooperative association and used to develop affordable housing. Sen. Guy Palumbo (D–Maltby) is sponsoring its companion, SB 5289.

Here are the key changes to current law:

• It’s an expansion in two ways. First, existing law only allows the tax exemption for a nonprofit property owner. The bill expands this to include a qualified cooperative association. Second, existing law only allows the tax exemption when property is sold to a low-income household.The bill expands the list of buyers to include a qualified cooperative association and a separate nonprofit entity.
• The tax exemption will not expire if the property transfers from one nonprofit to another or to a qualified cooperative association. It will only expire when the property is conveyed to any single-family dwelling on the property.
• The bill defines qualified cooperative association as the owner of real property that develops on the property:
  • 60% or more of units owned by low-income; and
  • 80% or more of the square feet of improvements of property are used by owners of the units.

Senior and disabled veterans tax exemption

SB 5160, sponsored by Sen. Manka Dhingra (D–Redmond), would make a series of adjustments to the senior and disabled veterans property tax exemption program, phased in over a number of years. The ultimate result of these changes is to shift the criteria for qualifying for the exemption from a tiered flat dollar amount of between $30,000 – 40,000 to one based on tiers of 45-65% of the county median household income, which would be adjusted for inflation every five years. The bill also provides for a new electronic application for the exemption.

AWC knows that many cities are interested in ways to support their low-income seniors and disabled veterans and to keep them in their homes. We will be signing in in favor of this proposal. Please let Carl know if you have any comments.

SB 5160 is scheduled for a both a public hearing and a committee vote in the Senate Housing Stability & Affordability Committee on Monday, January 21 at 1:30 pm. The bill passed out of its fiscal committee, ahead of being heard in its policy committee

SB 5390, sponsored by Sen. Randi Becker (R–Eatonville), has a similar intent with a different approach. The bill has been referred to its fiscal committee first. We will cover it in a future Legislative Bulletin when it is referred to its policy committee. Stay tuned!

Multifamily tax exemption

SB 5366, sponsored by Sen. Keith Wagoner (R–Sedro-Wooley), would allow small cities (under 15,000k) to use the Multifamily Tax Exemption Program until July 1, 2022. Right now, only cities above that population threshold are eligible for the program. AWC supports this bill.

SB 5366 is scheduled for a hearing in the Senate Housing Stability & Affordability Committee on Wednesday, January 23 at 1:30 pm.

SB 5363, sponsored by Sen. Palumbo, creates a 12-year extension of the multifamily tax exemption if a local government adopts qualifying guidelines for the extension. The bill also allows a local government to adopt and implement more stringent income eligibility, rent, or sale price limits – including limits that apply to a higher percentage of units than the minimum conditions required for the first 12-year exemption period. AWC supports this bill.

Dates to remember

SB 5160 is scheduled for a both a public hearing and a committee vote in the Senate Housing Stability & Affordability Committee on Monday, January 21 at 1:30 pm.

SB 5366 is scheduled for a hearing in the Senate Housing Stability & Affordability Committee on Wednesday, January 23 at 1:30 pm.