HB 1035, sponsored by Rep. Shelley Kloba (D–Kirkland), brings back a proposal presented to the Legislature several years ago. The bill would authorize cities and counties to provide six-year property tax exemptions to preserve existing affordable housing.

There are many provisions within the proposal, the core of which is that cities would be authorized to provide a tax exemption to properties that meet the following standards:

• Housing units or mobile homes that are rented below market;

   

• Multifamily dwellings that are affordable to households making at or below 50 percent of the area median income and part of a building that is at least 25 years old; and
• Owner-occupied single-family structures or ADUs that are affordable to households making at or below 80 percent of the area median income.

Cities would be authorized to adopt alternative income or rent thresholds where it determines that an adjustment is needed to serve renters making at or below 50 percent of the area median income in either mobile homes or multifamily units.

In addition to the provisions above, properties must also comply with the following requirements throughout the entire exemption period:

• A minimum of 25 percent of the residential units in a multifamily property must be affordable.
• Qualifying units must be comparable to market rate units in the building.
• The building must be at least 90 percent occupied at time of application.
• Mixed use properties must dedicate at least 50 percent of the space to residential occupancy.

Date to remember

HB 1035 is scheduled for public hearing in the House Local Government Committee on Monday, February 8 at 10 am.