Priority REET bill passes Legislature

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. AWC and individual cities testified in support.

HB 1219 is one of our priority bills, as it provides more flexibility with existing tools to encourage affordable housing. This bill removes some of the hurdles in the current authority, such as the requirement to certify all other capital projects are funded. Further, this bill does not prevent counties and cities from using the REET for infrastructure investments.

HB 1219 does the following:

• Removes the sunset date of 2019;
• Removes the requirement that cities must certify that they have met all other unmet capital needs before using these funds for housing and homelessness purposes;
• Authorizes a county or city to use REET II revenue for the planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvements of facilities serving the homeless and affordable housing until January 1, 2026, so long as it documents in its capital facilities plan that it has funds during the next two years for certain capital projects; and
• The annual amount of REET II revenue a county or city may use for affordable housing and homelessness projects is limited to $100,000 or 25 percent of available funds, but not to exceed $1 million. This limit does not apply to a county or city which used REET II revenue to provide housing for the homeless prior to June 30, 2019.