SB 5802, sponsored by Sen. Phil Fortunato (R–Auburn), is a short bill proposing a big impact. The bill would allow a city or county required to plan under the Growth Management Act to designate housing affordability zones within an Urban Growth Area. The housing affordability zone would have to meet the following criteria:

• Only development of owner-occupied, single-family residential detached dwellings serving low-income households would be allowed
• Each dwelling developed would be exempt from impact fees
• The local jurisdiction could not charge more than $1,250 in permit fees for each dwelling
• Provision to ensure the housing remains designated for low-income households
• In designating the zones, the local jurisdiction must coordinate with Ecology and Commerce to identify possible sites for healthy housing remediation

The bill creates an incentive in two ways:

1. by granting those jurisdictions who designate these zones to receive the state’s tax distribution for taxes incurred in the development of the property; and,
2. until July 1, 2030, the seller of each housing unit sold would receive a 4% business and occupation tax credit.

What is particularly interesting about this proposal is that it is one of the only ideas that have been advanced this session that would directly promote private single-family development meeting a more affordable price point. We think that it would be helpful to see some emphasis placed on developing tools to promote affordability in the single-family market as the Legislature wrestles with how to address the affordable housing crisis.

Dates to remember

SB 5802 will be heard on Wednesday, February 20 at 1:30 pm in the Senate Housing Stability & Affordability Committee.