SB 6027 — Modifying requirements and allowed uses for certain funding related to providing and maintaining affordable housing and related services.

S-3894.2S-3566.2 SUBSTITUTE SENATE BILL 6027 State of Washington 69th Legislature 2026 Regular Session By Senate Housing (originally sponsored by Senators Alvarado, Robinson, Bateman, Conway, Frame, and Nobles)Nobles READPrefiled FIRST01/07/26. TIME 01/22/26.

ANRead ACTfirst Relatingtime to01/12/26. modifying certain funding and exemptions related to providing and maintaining affordable housing and related services;

amendingReferred RCWto 82.14.530,Committee 82.14.540,on 82.45.010,Housing. 82.45.010, and 84.36.043;

AN ACT Relating to modifying requirements and allowed uses for certain funding related to providing and maintaining affordable housing and related services;

amending RCW 82.14.530, 82.14.540, 82.45.010, and 82.45.010;

1 SSBSB 6027 under this section may not exceed ((one-tenth of one)) 0.1 percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.

2 SSBSB 6027 providing housing-related services, or acquiring land for these purposes;

3 SSBSB 6027 housing and urban development funding for the continuum of care program.

4 SSBSB 6027 (b) "Nonparticipating county" is a county that does not impose a sales and use tax in accordance with the terms of this section.

5 SSBSB 6027 this section or does not adopt a resolution in accordance with this section;

6 SSBSB 6027 (4) By December 31, 2019, or within ((thirty)) 30 days of a county or city authorizing the tax under this section, whichever is later, the department must calculate the maximum amount of tax distributions for each county and city authorizing the tax under this section as follows:

7 SSBSB 6027 affordable housing intended for owner occupancy, as defined in RCW 84.14.010.

8 SSBSB 6027 (a) Documents recording a birth, marriage, divorce, or death;

9 SSBSB 6027 10 percent for administrative costs retained under (a) of this subsection and the 75 percent for local homeless housing plans retained under (b) of this subsection must be combined and distributed as follows:

10 SSBSB 6027 households with incomes at or below 50 percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses;

11 SSBSB 6027 and case management for adult, family, youth, and young adult homeless populations and those at risk of homelessness;

12 SSBSB 6027 (A) Resident services, such as programming, community events, and building activities, including meals and supplies;

(8)p. The department of commerce shall require grantees to maintain supporting documentation for all expenses over $50.

13 SB 6027 (8) The department p.of commerce shall require grantees to maintain comprehensive records for all expenses above $50 and require submission of documentation, upon request, for auditing purposes.

13 SSB 6027 may not require submission of supporting documentation before approving reimbursement requests except for cause or auditing purposes.

14 SSBSB 6027 (ii) When persons are not commonly owned or controlled, they must be treated as acting in concert only when the unity with which the purchasers have negotiated and will consummate the transfer of ownership interests supports a finding that they are acting as a single entity.

15 SSBSB 6027 contract of insurance or guaranty with the federal housing administration or veterans administration.

16 SSBSB 6027 limited to nonrecognition of gain or loss because of application of 26 U.S.C.

17 SSBSB 6027 qualified low-income housing development occurring on or after July 1, 2035.

18 SSBSB 6027 fails to meet the requirements for continued use, the department of social and health services must notify the department and the real estate excise tax based on the value of the property at the time of the transfer into use as residential property for persons with developmental disabilities becomes immediately due and payable by the qualified entity.

19 SSBSB 6027 (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, or 84.36.010.

20 SSBSB 6027 (ii) If the qualifying grantee fails to satisfy the requirements described in (v)(i)(A), (B), or (C) of this subsection, within the timelines described in (v)(i)(A), (B), or (C) of this subsection, the qualifying grantee must pay the tax that would have otherwise been due at the time of initial transfer, plus interest calculated from the date of initial transfer pursuant to RCW 82.32.050.

21 SSBSB 6027 including, but not limited to, health clinics, senior day care, food banks, community centers, and early learning facilities.

22 SSBSB 6027 persons are acting in concert.

23 SSBSB 6027 (j) Any transfer or conveyance made pursuant to a deed of trust or an order of sale by the court in any mortgage, deed of trust, or lien foreclosure proceeding or upon execution of a judgment, or deed in lieu of foreclosure to satisfy a mortgage or deed of trust.

24 SSBSB 6027 the subsequent transfer has not been paid within sixty days of becoming due, excise taxes become due and payable on the original transfer as otherwise provided by law.

25 SSBSB 6027 federal low-income housing tax credits authorized under 26 U.S.C.

26 SSBSB 6027 such similar residential property must be considered the successor for continued use.

27 SSBSB 6027 income housing for a period of at least 10 years.

28 SSBSB 6027 described in (u)(i)(A), (B), or (C) of this subsection, only the new qualifying grantee is liable for the payment of taxes required by (u)(ii) of this subsection.

29 SSBSB 6027 Sec.NEW SECTION.

6.

RCW 84.36.043 and 2023 sp.s.

c 1 s 18 are each amended to read as follows:

(1) The real and personal property used by a nonprofit organization in providing emergency or transitional housing for low- income homeless persons as defined in RCW 35.21.685 or 36.32.415 or victims of domestic violence who are homeless for personal safety reasons is exempt from taxation if: