SB 5725 — Expanding affordable housing opportunities on community and technical college lands.

S-1745.1S-1299.1 SUBSTITUTE SENATE BILL 5725 State of Washington 69th Legislature 2025 Regular Session By Senate Housing (originally sponsored by Senators Slatter, Hasegawa, Trudeau, and Valdez)Valdez READRead FIRSTfirst TIMEtime 02/21/25.02/11/25.

Referred to Committee on Housing.

1 SSBSB 5725 face increasing barriers to securing stable housing near their workplaces and schools, forcing many to commute long distances or relocate entirely.

2 SSBSB 5725 (a) That each college district, in coordination with colleges, within a regional area, shall offer thoroughly comprehensive educational, training, and service programs to meet the needs of both the communities and students served by combining high standards of excellence in academic transfer courses;

3 SSBSB 5725 (5) Define and administer criteria and guidelines for the establishment of new community and technical colleges or campuses within the existing districts;

4 SSBSB 5725 such action is consistent with the purposes set forth in RCW 28B.50.020 as now or hereafter amended;

(13) Notwithstanding any other law or statute regarding the sale of state property((,property, sell)):sell ((or)), exchange, lease, transfer, assign, pledge, or dispose of and convey any or all interest in any community and technical college real and personal property for a public purpose, such as affordable housing, except such property as is received by a college district in accordance with RCW 28B.50.140(8), when it determines that such property is surplus or that such a sale ((or)), exchange, lease, transfer, assignment, pledge, or disposal is in the best interests of the community and technical college system;

(a) Sell or exchange and convey any or all interest in any community and technical college real and personal property, except such property as is received by a college district in accordance with RCW 28B.50.140(8), when it determines that such property is surplus or that such a sale or exchange is in the best interests of the community and technical college system;

or (b) Sell, exchange, lease, transfer, assign, pledge, grant, or dispose of any or all interest in any community and technical college real or personal property at less than fair market value to a governmental entity for a public purpose, such as affordable housing, or to a nonprofit corporation provided the nonprofit corporation agrees to use the property for the provision of affordable housing, or another community purpose for at least 50 years;

(15) Notwithstanding the provisions of subsection (13) of this section, may receive such gifts, grants, conveyances, devises, and bequests of real or personal property from private sources as may be made from time to time, in trust or otherwise, whenever the terms and conditions thereof will aid in carrying out the community and technical college programs and may sell, lease or exchange, invest or expend the same or the proceeds, rents, profits and income thereof p.according to the terms and conditions thereof;

5 SSB 5725 according to the terms and conditions thereof;

NEWp. SECTION.

5 SB 5725 NEW SECTION.

(1) The college board is authorized to enter into long-term leases forup atto least99 50 years tofor enable the development of affordable housing on underutilized community and technical college land, consistent with RCW 39.33.015.

CommunityThe andcollege technicalboard colleges may pledgelease orcollege grant land usedto fornonprofit affordabledevelopers, public housing asauthorities, securityor forother loansentities to supportensure additional affordable housing projectsis ondeveloped underutilized community and technicalmaintained. college land.

(2)Community Anyand landtechnical leasedcolleges bymay thepledge collegeor boardgrant forland affordableas housingsecurity underfor thisfinancing sectioncontracts must include restrictive covenants to preventsupport conversion to uses other than affordable housing forprojects. the duration of the lease, including remedies if the lessor fails to use the property for the designated public purpose or ceases to use it for such purpose.

(3)(2) IfAny aland projectleased failsfor toaffordable securehousing financingunder orthis doessection notmust commenceinclude constructionrestrictive withincovenants fourto yearsprevent offuture leaseconversion approval,to market-rate housing or ifcommercial theuse recipientand ofmust thealso propertyaddress failscriteria orand ceasespolicies to usemaintain it for the designated public purposebenefit duringif the leaseproperty period,is theconverted leaseto shalla terminateuse andother thethan propertywhich shallcontinues revert back to theprovide collegefor boardaffordable withouthousing. limitation.

(4)(a)(3) CommunityIf anda technicalproject collegesfails mayto allowsecure affordablefinancing housingor projectsdoes onnot leasedcommence construction within four years of lease approval, the community and technical college boardmay propertyreclaim to:the land under a repurchase agreement.

(i)(4) ShareCommunity generaland parkingtechnical unlesscolleges codemay requiredallow foraffordable minimumhousing parkingprojects requirementsto areshare noparking, longerroads, achievedand byutilities without violating restrictions on the college;use of public resources.

(ii)Easements Utilizemay collegebe roadsgranted to provide necessary access and services to affordable housing facilities;developments.

and (iii) Connect to site utilities.

(b) A community and technical college may charge the affordable housing project and tenants reasonable fees for use of college facilities and services.

(6) If the college board sellsdecides to sell or lease underutilized community and technical college land property forpursuant affordableto housingthis pursuantsection, a community or technical college has a right of first refusal to thispurchase p.or lease at fair market value a property or unused portions of the property by negotiated agreement with mutual consideration.

6 SSB 5725 section, and finds during the term of any affordable housing covenant that the property is not compliant or is no longer used for its restricted purpose, the college board can proceed to:

(a) Enforce the covenant provision;

or (b) Declare the property in default and shall have the right of first refusal to repurchase the property for the original sale price, minus any costs of enforcing the covenant if the property is no longer used for affordable housing.

(1) Before any state agency may dispose of surplus state-owned real property to a private or any nongovernmental party, the agency must provide written notice to the following governmental entities at leastp. sixty days before entering into any proposed disposition agreement:

6 SB 5725 least sixty days before entering into any proposed disposition agreement:

p.(1) All leasehold interests in underutilized community and technical college land are exempt from tax under this chapter, for the duration of the lease in accordance with section 3 of this act, when used for the placement of affordable housing under the following conditions:

7(a) SSBA 5725lessee (1)must Allcommit leaseholdto interestsrenting inor underutilizedselling community100 andpercent technical college land are exempt from tax under this chapter, for the duration of the leaseunits inas accordancepermanently withaffordable section 3 of this act, when used for thelow-income placementand ofmoderate-income affordablehouseholds; housing under the following conditions:

(a) A lessee must commit to renting or selling 100 percent of the units as affordable for low-income and moderate-income households during the lease term;

(3)p. For purposes of this section, "affordable housing," "low- income household," and "moderate-income household" have the same meaning as defined in RCW 84.14.010.

7 SB 5725 (3) For purposes of this section, "affordable housing," "low- income household," and "moderate-income household" have the same meaning as defined in RCW 84.14.010.

p.NEW SECTION.

8 SSB 5725 NEW SECTION.

98 SSBSB 5725