A surplus property bill contains two significant provisions of interest to cities, and we would like review by city attorneys.

First, it makes some improvements to the process by which the state catalogs its surplus property that might be suitable for affordable housing development. Second, and potentially more impactful to cities, is a provision intended to more clearly authorize the disposition of utility property for these purposes.

HB 2896 was introduced last week and is sponsored by Rep. Cindy Ryu (D–Shoreline). The proposal states that:

The transfer, lease, or other disposal of surplus municipal utility property at less than true and full value or at no cost for public benefit purposes shall be deemed a lawful tax imposed by a city or town specifically for public benefit as defined in this section and shall not be subject to the provisions of or limitations imposed under RCW 35.21.865 and 35.21.870.

(a) "Public benefit" means affordable housing for low-income and very low-income households as defined in RCW 43.63A.510, and related facilities or uses that ((support)): (i) Support the goals of affordable housing development in providing economic and social stability for low-income persons; (ii) subsidize or reduce the cost of affordable housing development; or (iii) are required by local development regulations;

We would appreciate knowing your city attorney’s thoughts on whether this language works or there are any concerns with it. Please contact Shannon.

Dates to remember

HB 2896 is scheduled for public hearing in the House Housing, Community Development & Veterans Committee at 10 am on Tuesday, February 4. The bill is also scheduled for a committee vote at 8 am on Wednesday, February 5.