Building on temporary authority granted in 2017, HB 1219 streamlines and makes permanent the authority for cities to use their Real Estate Excise Tax (REET) II revenues. The bill states that revenues can be used for the “planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of facilities for those experiencing homelessness and affordable housing projects.” HB 1219 is sponsored by Rep. Amy Whalen (D–Kirkland). SB 5195 is the companion.

AWC and individual cities testified in support of the Senate version. These proposals are one of our priority bills as they provide more flexibility with existing tools to encourage affordable housing.

The current authority for this financing tool is set to expire at the end of 2019. That authority includes more stringent restrictions that require cities to certify that they have met all other unmet capital needs before using these funds for housing and homelessness purposes.

Dates to remember

HB 1219 will be heard on Friday, February 1 at 10 am before the House Housing, Community Development & Veterans Committee.