With dozens and dozens of bills introduced this session claiming to address the state’s underproduction of housing through constant tweaking of local land use codes, it is very reassuring to finally see some proposals that will provide a financial incentive to build more roofs. This is a good little bill.

SB 5591, sponsored by Sen. Jessica Bateman (D–Olympia), allows a city or county legislative authority to create a sales and use tax remittance program for the development of affordable housing by eligible organizations. Here are the details:

• Eligible organizations include nonprofit developers, for-profit developers, public housing authorities, public development authorities, or other applicants eligible under rules established by the Washington State Housing Finance Commission.
• The tax remittance is allocated to the eligible organization and the city or county as follows:
  • 50 percent of the state and local sales and use taxes is allocated to the eligible organization; and
  • 50 percent of the state sales and use tax must be distributed to the city or county that authorized the program.
• The city or county must use the funding to:
  • acquire, rehabilitate or construct affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supported housing services;
  • acquire real property for future affordable housing development;
  • fund the operation and maintenance of new units of affordable or permanent supportive housing; or
  • operate and deliver behavioral health treatment programs and services.
• If the city or county utilizes general fund moneys to support a qualifying project under a remittance program, the city or county may reimburse itself.
• The program can run until December 31, 2035.

Date to remember

SB 5591 is scheduled for a committee vote in the Senate Housing Committee on Friday, February 14 at 10:30 am.