HB 2308, sponsored by Rep. Amy Walen (D–Kirkland), and its companion, SB 6175, sponsored by Sen. Yasmin Trudeau (D–Tacoma), brings new ideas to the housing policy table. This proposal aims to incentivize the conversion of vacant commercial buildings to affordable housing, and to incentivize existing multifamily housing to offer lower rents.

The bill creates the following two local options for cities to adopt:

• Creates affordability within existing market rate buildings: This incentive creates a state and local property tax exemption to convert a minimum of 30% of a market rate residential multifamily building that is no more than 25 years old into affordable housing, specifically for households earning below 80% AMI. The exemption lasts for a total of 20 years; 100% for the first 10, and 50% for the remaining 10. By receiving the exemption, the property owner is committing to keep at least 30% of units affordable.
• Adding supply by converting commercial buildings to market rate: Like the first incentive, this creates a state and local property tax exemption for property owners converting a commercial building to a residential building. Property owners can only apply for this exemption for a duration of five years by submitting a complete land use application before 2029. The property tax exemption lasts for a total of 30 years and 20% of the units developed must be committed to affordability at 80% AMI or less. The incentive also includes a state and local sales and use tax exemption for all construction materials; if the property owner leverages the sales and use tax exemption, they must commit 30% of the units to households at 80% AMI or less.

AWC thanks both sponsors for their leadership in proposing a local option that provides an incentive to the development industry and converts unused buildings to meet our housing need.

Dates to remember

HB 2343 is scheduled for public hearing in the House Housing Committee on Monday, January 22 at 1:30 pm and for executive session on Thursday, January 25 at 8 am.

SB 6175 is scheduled for a public hearing in the Senate Housing Committee on Wednesday, January 24 at 10:30 am.