One of the biggest disappointments of the 2023 legislative session, dubbed by many as the “Year of Housing,” was that despite all the policy changes, the Legislature decided not to advance any proposals to generate new ongoing revenues. As AWC continues to voice, cities will not meet our projected need for over 500,000 new homes affordable to lower income residents without significant new permanent revenues.

It is for this reason that we are excited to see HB 2276, the Affordable Homes Act, introduced by the chair of the House Finance Committee Rep. April Berg (D–Mill Creek). Sen. Noel Frame (D–Greenwood) is sponsoring the Senate companion bill (SB 6191). The bill adjusts the state real estate excise tax (REET) and adds a real estate transfer tax (RETT) on high-value properties.

The proposal:

• Adjusts the state REET to reduces taxes on most property sold under $3,025,000.
• Imposes a new RETT of 1% on any property selling over $3,025,000, calculated on the value over $3,025,000.
• Is designed to generate nearly $200 million per year.

New revenue from the RETT is distributed as follows:

• 25% to Housing Trust Fund, with 5% for Farm Worker Housing
• 25% to Home Security Fund
• 25% to Apple Health & Homes Account
• 15% to Developmental Disabilities Housing and Services
• 10% to stabilize low-income housing in the Housing Trust Fund portfolio

AWC will be supporting this measure, and we encourage you to share your support with your legislators.

Dates to remember

HB 2276 is scheduled for public hearing in the House Finance Committee on Thursday, January 18 at 1:30 pm.