State of Washington63rd Legislature2014 Regular Session

By Representatives Fey, Jinkins, and Freeman

Read first time 01/21/14.   Referred to Committee on Community Development, Housing & Tribal Affairs.

     AN ACT Relating to disposing tax foreclosed property to cities for affordable housing purposes; and amending RCW 36.35.150.


Sec. 1   RCW 36.35.150 and 2001 c 299 s 11 are each amended to read as follows:
     (1) The county legislative authority may dispose of tax foreclosed property by private negotiation, without a call for bids, for not less than the principal amount of the unpaid taxes in any of the following cases:
     (((1))) (a) When the sale is to any governmental agency and for public purposes;
     (((2))) (b) When the county legislative authority determines that it is not practical to build on the property due to the physical characteristics of the property or legal restrictions on construction activities on the property;
     (((3))) (c) When the property has an assessed value of less than five hundred dollars and the property is sold to an adjoining landowner; or
     (((4))) (d) When no acceptable bids were received at the attempted public auction of the property, if the sale is made within twelve months from the date of the attempted public auction.
     (2) The county legislative authority must give notice to any city in which any tax foreclosed property is located within at least sixty days of acquiring such property and the county may not dispose of the property at public auction or by private negotiation before giving such notice. The notice must offer the city the opportunity to purchase the property for no more than the amount of unpaid taxes, including any tax-deferral lien amounts, interest, penalties, and costs, under the following conditions:
     (a) The city must accept the offer within thirty days of receiving notice, unless the county agrees to extend the offer;
     (b) The city must provide that the property is suitable and will be used for an affordable housing development as defined in RCW 36.130.010; and
     (c) The city must agree to transfer the property to a local housing authority, a nonprofit housing organization, or other entity eligible to receive assistance from the affordable housing program under chapter 43.185A RCW.
     (3) The county selling property to a city for affordable housing purposes under subsection (2) of this section may negotiate with the city to defer payment for any period that the city owns the property.

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