SB 6328 — Creating a local infrastructure investment program to support the development of affordable housing, workforce housing, and revitalization efforts.

S-5991.1SUBSTITUTES-5364.1SENATE SENATE BILL 6328State of Washington66th Legislature2020 Regular SessionBySenateSessionBySenators Housing Stability & Affordability (originally sponsored by Senators Warnick, Hawkins, Kuderer, Zeiger, Fortunato, and Wilson, C.)READC.Read FIRSTfirst TIMEtime 02/04/20.AN01/15/20.Referred to Committee on Housing Stability & Affordability.AN ACT Relating to creating a local infrastructure investment program to support the development of affordable housing, workforce housing, and revitalization efforts;

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) "Affordable workforce housing" means residential housing units that are rented or owned by a moderate income person or household withwhose anmonthly incomehousehold atcosts, orincluding belowutilities oneother hundredthan tentelephone, percentdo ofnot exceed the medianmonthly income forthreshold thedefined countythrough in which the housingordinance isprocess located.(2)provided "Department"in meanssection the3 department of revenue.(3)this "Eligibleact.(2) city"Department" or county" means any county located east of the crestdepartment of therevenue.(3) Cascade mountains with a population greater than forty thousand but no more than one hundred twenty-five thousand and the cities within those counties.(4) "Eligible project" means an affordable housing project, a workforce housing projectproject, or revitalization effort within a revitalization districtdistrict. that is wholly located within the limits of an urban growth area as defined in RCW 36.70A.110.

AnThe eligible project may be housing, mixed-use, industrial, commercial, or a combination of multiple development typestypes.(4) that"Local isinfrastructure" whollyhas locatedthe withinsame themeaning limitsas ofprovided anfor urban"public growthimprovements" areain RCW 39.104.020.(5) "Participating local jurisdiction" means a city or limitedcounty areasthat establishes a local infrastructure investment program.(6) "Revitalization effort" means a project that promotes the continued economic growth of morea intenseparticipating rurallocal developmentjurisdiction, as describeddefined inthrough RCWthe 36.70A.110ordinance andprocess WACprovided 365-196-425in assection 3 of this act.(7) "Workforce housing" means residential housing units that are rented or owned by a person or household who meets the effectiverequirements datedefined through the ordinance process provided in section 3 of this section.act.NEW SECTION.  Sec.

In counties and cities fully planning under RCW 36.70A.040, an eligible project must be located within the limits of the urban growth area or in a location consistent with the jurisdiction's comprehensive land use plan as defined in RCW 36.70A.030.

In counties and cities not fully planning under RCW 36.70A.040, an eligible project must be located within the limits of a city or town or in a location consistent with a locally adopted development plan.(5) "Local infrastructure" has the same meaning as provided for "public improvements" in RCW 39.104.020.(6) "Participating local jurisdiction" means a city or county that establishes a local infrastructure investment program.(7) "Revitalization effort" means a project that promotes the continued economic growth of a participating local jurisdiction, as defined through the ordinance process provided in section 3 of this act.NEW SECTION.  Sec.

(1) A participating local jurisdiction that builds approved local infrastructure to support the development of affordable housing or workforce housing or to support revitalization efforts within a revitalization district may receive a remittance that is the equivalent of a 4.37 percent sales or use tax on the construction of such housing developed under thethis local infrastructure investment program.(2) The remittance may be claimed once per project.

(1) To commence a local infrastructure investment program, a participating local jurisdiction must adopt an ordinance establishing the localfollowing definitionparameters offor revitalizationtheir effortprogram:(a) andThe thelocal geographicincome boundariesthreshold ofused theto revitalizationdefine district.(2)affordable housing;(b) The participating local jurisdictionrequirements mustused holdto adefine publicworkforce hearinghousing;(c) onThe the proposed local infrastructuredefinition investment program before passage of therevitalization ordinanceeffort; establishing the program.

and(d) The geographic boundaries of the revitalization district.(2) The participating local jurisdiction must hold a public hearing on the proposed local infrastructure investment program before passage of the ordinance establishing the program.

(1) AThe city or county must notify the department that a local infrastructure investment program has been established, in a form prescribed by the department.(2) To collect the sales and use tax remittance, the participating local jurisdiction must submitapply anto applicationthe fordepartment thein remittancea toform and manner prescribed by the department beforeand initiationprovide the following information about the eligible project:(a) The total amount of construction costs for the eligible project.project;(b) The total amount of sales and use tax paid on the eligible project;

The application must be made to the department in a form and manner prescribed by the department.

The application must provide information about the estimated amount of sales and use tax to be paid on the eligible project;

the estimated date when construction will be completed;

and any other information required by the department to determine the estimated amount of remittance.(2)(a) The department must rule on the application within sixty days.

Applications must be approved on a first-in-time basis.(b) The department may not approve any application after June 30, 2027.(c) The department must report on the utilization of the program to the appropriate committees of the legislature by November 1, 2026.(3) Upon completion of the eligible project, an eligible city or county may claim the remittance by submitting a request to the department, in a form and manner prescribed by the department, that provides the following information about the eligible project:(a) The total amount of construction costs for the eligible project;(b) The total amount of sales and use tax paid on the eligible project;