With session cruising to the finish line, we are beginning to see bills sent to the Governor for signature as they pass the Legislature. These include several affordable housing bills we have been covering here this session.
Multi-family tax exemption reform
SB 5287 culminates a multi-year effort to extend and expand the state’s multi-family tax exemption program. It is seen by cities
as one of the most effective and powerful tools we have to promote and incentivize residential apartment construction to build density, increase supply, and press for affordability when the market will bear it. This has been a heavily contested issue
as some stakeholders and legislators were not convinced of the merits of the program. At the end of the day, a strong bill was passed with the leadership of great sponsors—Sen. Mona Das (D–Renton) and Rep. Alex Ramel (D–Bellingham)—and
support of a broad coalition.
The result includes many outcomes worth touting in a housing agenda, including:
- Continuing the 12-year program that sets aside 20 percent of units to low- and moderate-income households, expanding its geographic reach, allowing an extension for existing units that would otherwise revert to market rent.
- Providing smaller cities limited access to the program for the first time.
- Adding new tenant protections for families in income-restricted units.
- Enhanced accountability measures to ensure transparency and meeting legislative intent.
- Creating a 20-year program for nonprofit organizations for permanent affordable homes.
- Continuing the eight-year program and providing local governments flexibility to help incentivize denser, urban development beyond what the market will support. The bill also allows an extension if a property rents or sells 20 percent of units to
low- and moderate-income households.
In total, SB 5287 provides improved and powerful tools to support urban density, economic development, affordable workforce housing, and flexibility for local governments to maximize public benefit.
Changes to allowable uses of the optional 1/10th cent sales tax for housing
HB 1070 moved quickly through the legislative process and has already been signed by the Governor. This bill provides new authority for
the revenues from the optional 1/10th cent sales tax for housing that cities and counties may levy, allowing funds to be used for acquisition of existing properties for conversion to new uses. In addition, a new requirement directs counties
who are acquiring facilities in cities to provide an opportunity for 15 percent of the units to be accessed by individuals who live in or near the city or have ties to that community.
Two critical elements of AWC’s housing stability priority still await final action
HB 1277 provides key resources to support rental assistance and maintain operations of the state’s stock of permanent supportive
housing. The proposal to add a $100 surcharge on the official recording of documents is awaiting final floor action in the Senate. While indications are still positive, historically, document recording fee bills have frequently been among the last
to pass. AWC continues to support this bill as a way to mitigate the economic disruption of the pandemic and the resulting instability in family housing situations.
On that note, another key bill, SB 5160, is awaiting potential Senate concurrence on House amendments that would chart a path out of the
eviction moratorium. The main components of the bill include:
- Tenant protections, such as prohibiting late fees on debts accrued during the pandemic and limitations of consideration of nonpayment during pandemic for potential occupancy decisions;
- Requirement that landlords must offer a “reasonable” repayment plan where the repayment of past debt does not exceed one third of the monthly rent;
- Authorization of payments of up to $15,000 in unpaid rent for landlords under certain circumstances from the landlord mitigation fund;
- Creation of an eviction resolution program serving all counties connecting tenants and landlords with dispute resolution centers;
- Right to counsel for indigent tenants facing eviction.
A remaining key dispute is an adopted House floor amendment that ends the Governor’s eviction moratorium proclamation on June 30, 2021. There are concerns from some that the protections provided by the bill may not be in place by that time. Further,
there is concern that the Governor may feel constrained in offering a new moratorium to provide the necessary stop gap if the Legislature just terminated his previous moratorium.