SB 5587 — Concerning affordable housing development in counties not closing the gap between estimated existing housing units within the county and existing housing needs.

S-1514.1S-0980.1 SUBSTITUTE SENATE BILL 5587 State of Washington 69th Legislature 2025 Regular Session By Senate Housing (originally sponsored by Senators Cleveland, Nobles, and Orwall)Orwall READRead FIRSTfirst TIMEtime 02/17/25.01/30/25.

Referred to Committee on Housing.

adding a new section to chapter 36.70A RCW;

This report may also include city-specific median income data for those cities implementingp. the multifamily tax exemption program under chapter 84.14 RCW.

p.1 SB 5587 implementing the multifamily tax exemption program under chapter 84.14 RCW.

1 SSB 5587 (b) The report completed by October 15, 2021, must include an analysis of the private rental housing market for each area outlining the number of units, vacancy rates, and rents by unit type, where possible.

(i)(A)(i) ExceptAn as provided in (e)(i)(B) of this subsection, an analysis of the estimated existing housing units and existing housing needs within each county at the following income levels:

(B) If a county's estimated existing housing units, existing housing needs, or both, cannot be determined at the income levels under (e)(i)(A) of this subsection or at the individual county level due to insufficient data, alternative thresholds may be used to best determine existing housing units and existing housing needs;

(2) The Washington center for real estate research shall collaborate with the Washington housing finance commission and the p.office of financial management to develop the metrics compiled in the series of reports under this section.

2p. SSB 5587 office of financial management to develop the metrics compiled in the series of reports under this section.

2 SB 5587 (3) The series of reports under this section must be submitted, consistent with RCW 43.01.036, to the standing committees of the legislature with jurisdiction over housing issues and this chapter.

NEW SECTION.

A new section is added to chapter 36.70A RCW to read as follows:

(1) If the report produced under RCW 36.70A.610 finds that a county's gap between estimated existing housing units and existing housing needs has not decreased from the preceding year, the county, or any city within the county may not deny an affordable housing development, or approve an affordable housing development with conditions or restrictions that have a substantial adverse impact on the viability of the development or the degree of affordability of the development unless at least one of the following conditions is met:

(a) The denial of the affordable housing development, or the approval of the affordable housing development with conditions or restrictions that have a substantial adverse impact on the viability of the development or the degree of affordability of the development, is required in order to comply with specific state or federal law;

(b) The affordable housing development or proposed development site is located outside an urban growth area, in a critical area, in a critical area buffer, or in an area where residential uses are not allowed by the applicable shoreline master program;

or (c) The affordable housing development or proposed development site is located in an area where neither the local jurisdiction's comprehensive plan nor zoning ordinance permits residential or mixed uses.

(2) The county or city must require the developer of an affordable housing development to include legally binding, enforceable restrictions on the development, recorded as a covenant or deed restriction, to ensure that the measures of affordability described in subsection (5) of this section are met for a minimum 25- year period.

The county or city must periodically audit compliance with the restrictions or provide another mechanism to ensure that the units committed to affordable housing meet the measures of affordability described in subsection (5) of this section during the agreed term.

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3 SB 5587 (3) Permits for affordable housing development under this section must be given priority by the city or county and processed prior to any other permit applications.

(4) A county or city subject to the requirements of this section is eligible to receive funds under chapter 43.155 RCW to defray infrastructure and clean water costs related to infill development and any other increase in affordable housing units.

(5) For the purpose of this section "affordable housing development" or "affordable housing" means a residential housing development where the developer has agreed to include legally binding, enforceable restrictions on the development, recorded as a covenant or deed restriction, to ensure that for at least 25 years:

(a) At least 20 percent of the units are for rental housing with monthly costs that do not exceed 30 percent of the monthly income of a household whose income is at or below 80 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 (b) All remaining units are for rental housing with monthly costs that do not exceed 30 percent of the monthly income of a household whose income is more than 80 percent but is at or below 115 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.

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(2) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town planning under RCW 36.70A.040 may not receive financial assistance underp. this chapter unless it has adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040.

4 SB 5587 under this chapter unless it has adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040.

(3) In considering awarding financial assistance for public facilities to special districts requesting funding for a proposed facility located in a county, city, or town planning under RCW 36.70A.040, the board must consider whether the county, city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the p.proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.

3 SSB 5587 proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.

(viii)p. Whether the project encourages infill development or any other increase in affordable housing in counties identified as having a gap between estimated existing housing units and estimated housing needs by the report produced under RCW 36.70A.610.

For5 purposesSB of5587 this(viii) subsectionWhether (4)(a)(viii),the "affordableproject housing"encourages hasinfill thedevelopment sameor meaningany asother increase in RCWaffordable 36.70A.030;housing in counties subject to the requirements of section 2 of this act.

For purposes of this subsection (4)(a)(viii), "affordable housing" has the same meaning as in section 2(5) of this act;

p.(F) Efficiency in delivery of goods and services and transportation;

4 SSB 5587 (F) Efficiency in delivery of goods and services and transportation;

(v)p. The total amount of loan repayments due for outstanding loans for each fiscal year over the following ((ten)) 10-year period;

6 SB 5587 (v) The total amount of loan repayments due for outstanding loans for each fiscal year over the following ((ten)) 10-year period;

p.(8) To qualify for loans, grants, or pledges for solid waste or recycling facilities under this chapter, a city or county must demonstrate that the solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70A.205 RCW.

5 SSB 5587 (8) To qualify for loans, grants, or pledges for solid waste or recycling facilities under this chapter, a city or county must demonstrate that the solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70A.205 RCW.