SENATE BILL REPORT

SB 6199

As of January 29, 2004

Title: An act relating to restoring the American Dream by eliminating impact fees in counties and cities in counties where the first time home buyer housing affordability index shows that housing is not affordable.

Brief Description: Eliminating impact fees in areas where housing is not affordable for first time home buyers.

Sponsors: Senator Benton.

Brief History:

Committee Activity: Land Use & Planning: 1/29/04.

SENATE COMMITTEE ON LAND USE & PLANNING

Staff: Genevieve Pisarski (786-7488)

Background: There is concern that impact fees contribute to the high cost of housing in many counties.

Summary of Bill: The Legislature declares its intent to make housing more affordable for first-time home buyers by eliminating impact fees in certain counties.

A definition of "first time buyer housing affordability index" is adopted and means the index used by the Washington Center for Real Estate Research to measure the ability of a typical renter household to purchase a typical starter home based on certain assumptions relating to the median price of homes, mortgage terms, and household earnings.

In counties where the first time buyer housing affordability index is below 100 for three quarters in any given year, cities and counties are prohibited from collecting impact fees for the next two years. These counties are also prohibited from requiring dedications of land or imposing fees pursuant to the State Environmental Policy Act instead.

Appropriation: None.

Fiscal Note: Available.

Effective Date: Ninety days after adjournment of session in which bill is passed.