SB 5713

Washington State House of Representatives Office of Program Research	BILL ANALYSIS

Housing Committee

SB 5713

Brief Description: Assisting tenants in multiple-unit housing proposed for rehabilitation.

Sponsors: Senators Regala, Franklin and Kohl-Welles.

Brief Summary of Bill

Enables property owners to utilize the multi-unit housing tax exemption program if their property is currently occupied, with the condition that they must provide tenants with housing of comparable size, quality and price as well as a reasonable opportunity to relocate.

Hearing Date: 3/22/05

Staff: Robyn Dupuis (786-7166).

Background:

Current law provides a property tax exemption as an incentive to encourage the rehabilitation or construction of new multifamily housing in certain urban centers, with the intended additional effects of promoting community development, affordable housing, neighborhood revitalization, and limiting urban sprawl.

The tax exemption provides that new housing construction and the rehabilitation of existing buildings that meet certain criteria is exempt from property taxation for 10 successive years, following the calendar year that the eligibility requirements were met. The exemption does not include the value of the land, non-housing related improvements, and construction improvements to existing buildings that were made prior to applying for the exemption.

To qualify for the tax exemption, the new or rehabilitated multiple-unit housing must meet the following general criteria:

be located within a residential target area, as designated by the city;
meet any guidelines adopted by the governing local government, which may include, among other requirements, height, density, public benefit features, and low or moderate income occupancy requirements;
have at least 50 percent of the space within the structure dedicated to permanent residential occupancy;
be completed within three years from the date of application approval;
be vacant at least 12 months before submitting an application and fail to meet applicable building or housing codes, if it is a property that is proposed for rehabilitation; and
the applicant and the city must contractually agree to the terms and conditions of development.

Summary of Bill:

A property proposed for rehabilitation is not required to be vacant 12 months prior to application for the exemption. If a building is occupied, the property owner must provide existing tenants with comparable housing and a reasonable opportunity to relocate. This housing could be within the same building.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.