HB 2673 — Social housing agencies/tax

Summary

Establishing tax exemptions for property used as affordable housing owned or operated by a social housing agency.

Bill Text

Compared against the Revised Code of Washington as published AI-generated reading aid — verify against the official bill.

This bill amends 2 section(s) of the Revised Code of Washington: RCW 82.45.010; RCW 84.36.805.

• RCW 82.45.010

  For purposes of this subsection (3)(v), "qualifying grantee" means a nonprofit entity as defined in RCW 84.36.560, a nonprofit entity or qualified cooperative association as defined in RCW 84.36.049, a housing authority created under RCW 35.82.030 or 35.82.300, a public corporation established under RCW 35.21.660 or 35.21.730, or a county or municipal corporation. "low → residential property and must include a copy of the transfer agreement and any other documentation as required by the department. (u)(i) The sale by an affordable homeownership facilitator of self-help housing to a low-income household. (ii) The definitions in this subsection (3)(u) apply to this subsection (3)(u) unless the context clearly requires otherwise. (A) "Affordable homeownership facilitator" means a nonprofit community or neighborhood-based organization that is exempt from income tax under Title 26 U.S.C. Sec. 501(c) of the internal revenue code of 1986, as amended, as of October 1, 2019, and that is the developer of self-help housing. (B) "Low-income" means household income as defined by the department, provided that the definition may not exceed 80 percent of median household income, adjusted for household size, for the county in which the dwelling is located. (C) "Self-help housing" means dwelling residences provided for ownership by low-income individuals and families whose ownership requirement includes labor participation. "Self-help housing" does not include residential rental housing provided on a commercial basis to the general public. (v)(i) A sale or transfer of real property to a qualifying grantee that uses the property for housing for low-income persons and receives or otherwise qualifies the property for an exemption from real and personal property taxes under RCW 84.36.560, 84.36.049, 35.82.210, 35.21.755, section 3 of this act, or 84.36.010. A qualifying grantee that is a county or municipal corporation must record a covenant at the time of transfer that prohibits using the property for any purpose other than for low- income housing for a period of at least 10 years. A qualifying grantee that is a social housing agency must record a covenant at the time of transfer that prohibits using the property for any purpose other than for low-income housing for a period of at least 15 years. bsection and must als transfer, that it int ing grantee intends t n one year of the sale g grantee must receiv ption under RCW section 3 of this act, must be used as housin ying grantee intends years of the sale or t g grantee must receiv ption under RCW section 3 of this act, must be used as housin alifying grantee in ises as defined in RC g grantee must receiv ption under RCW section 3 of this act, (iv) Each affidavit must be filed with the department upon completion of the sale or transfer of property, including transfers from a qualifying grantee to a different qualifying grantee. The qualifying grantee must provide proof to the department as required by the department once the requirements as described in (v)(i)(A), (B), or (C) of this subsection have been satisfied. (v) For the purposes of this subsection (3)(v), the following definitions apply: (A) "Qualifying grantee" means a nonprofit entity as defined in association as defined in RCW 84.36.049, a housing authority created under RCW 35.82.030 or 35.82.300, a public corporation established under RCW 35.21.660 or 35.21.730, a county or municipal corporation, or a social housing agency; (B) "Low-income" has the same meaning as in (u) of this subsection; (C) "Moderate-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 120 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development; and (D) "Social housing agency" means a public development authority or other public or quasi-public entity established under state or local law for the purpose of owning, developing, or financing housing affordable to low-income or moderate-income households, including any successor entity performing substantially similar functions. Social housing agency does not include a housing authority created under RCW 35.82.030 or 35.82.300, a public corporation established under RCW 35.21.660 or 3

  amended

• RCW 84.36.805

  s 2 are each amended to tion under this chapter, social housing agencies, (2) r the actual operation ranted, unless otherwise nt reasonably necessary o the contrary in this s (a) t subject the property (i) T of the portion of the pr aintenance and operation roperty loaned or rented (ii) 4), 84.36.037, 84.36.050 ould be exempt from tax is loaned or rented; a (iii) ptions granted under RCW (b) ents does not subject t are consistent with the are conducted by a non or rented to conduct (a) of this subsectio (c) A r inconsistent with the ot subject the property f a pattern of use. A pa se is repeated in the s ive assessment years. (3) lable to all regardles (4) T must be duly licensed tification is required (5) P social housing agencies, operty sold to a nonprofit entity, as defined in RCW 84.3 or a social housing agency as defined in section 3 of this act, perty under RCW 84.36.037 oses of a qualifying far

  amended

Action History

1. January 27, 2026

   First reading, referred to Finance.

Sponsors

• (Scott) · Primary

Subjects