HB 1406 would create a revenue sharing partnership between the state and cities and counties for affordable housing construction. In addition, for cities under 100,000 in population, this bill allows the monies to provide for rental assistance. HB 1406 is one of AWC’s priority housing bills. We were very supportive of the predecessor bill, HB 2437 last session, and it has only gotten better for cities this year.

HB 1406, sponsored by Rep. June Robinson (D–Everett), would allow a total sales tax share between the state and local governments equivalent to a total of two one-hundredths of a percent – a total of $31 million per year if every jurisdiction took advantage. The commitment is for 20 years, so these funds can be bonded. The mechanism is a credit against the state sales tax, so there is no effective increase on the consumer. And unlike last year’s version, there is no match requirement. Check out this chart to see the projected share per county. We are working to provide a clear illustration of what that would mean per city, and will share that when it is available.

Initially, any city can claim half of that capacity, while the county can claim the other half. If either party does not elect to utilize those revenues within a year, the other party can claim the unused capacity. For cities who have adopted other authorized housing or mental health levies within one year of passage of this bill, they would instead have the ability to claim the full amount of funds provided by the state.

SB 5646, sponsored by Sen. Patty Kuderer (D–Clyde Hill), is the companion bill.

Dates to remember

HB 1406 is scheduled for public hearing in the House Housing, Community Development & Veterans Committee on Friday, February 1 at 10 am.

SB 5646 will be heard on Wednesday, January 30 at 1:30 pm in the Senate Committee on Housing Stability & Affordability Committee.