H-1275.3  _______________________________________________

                          HOUSE BILL 1925

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Cairnes, Skinner, Koster, DeBolt, Benson, Huff, Boldt, Buck, Thomas, Delvin, Pennington, Cox, Mielke, Carrell, Esser, Schindler, Dunn, Wensman, Talcott, McDonald and Radcliff

Read first time 02/10/1999.  Referred to Committee on Commerce & Labor.

Requiring disclosure by sellers of new residential construction.

    AN ACT Relating to requiring sellers of new residential construction to disclose regulatory construction costs to consumers in order to increase consumer awareness of costs in such purchases; adding a new section to chapter 64.06 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The legislature recognizes that, for many citizens of Washington state, the ability to purchase a home in which families can be raised has increasingly become difficult.  Home ownership is recognized as a main symbol of economic and social success and is a primary goal for most citizens in Washington.  In addition, the design, construction, and rehabilitation of homes employs local labor and uses a vast array of American-made products and services.  As a result of the positive attributes associated with high home ownership rates, and in an attempt to educate potential home owners in the costs associated with new home construction, the legislature intends to require sellers of new construction to itemize and disclose all direct and indirect costs associated with the construction of new residential housing.

NEW SECTION. Sec. 2.  A new section is added to chapter 64.06 RCW to read as follows:

    (1) In a transaction for the sale of newly constructed residential real property, the seller shall deliver to the buyer a completed real property transfer disclosure statement containing, but not limited to, the following information:  (a) Any and all impact fees paid to the local jurisdiction as a condition of permit approval; (b) real estate excise taxes paid under authority of chapter 82.45 RCW; (c) sewer and water connection fees paid under chapters 35.92 and 35.91 RCW; (d) costs associated with compliance under chapter 43.21C RCW; (e) costs, including studies and permit fees, associated with compliance under chapter 90.58 RCW; and (f) federal, state, and local taxes paid by the builder.

    (2) For the purposes of this section, "impact fees" means payment of money, including payments made as voluntary agreements under RCW 82.02.020, imposed upon development as a condition of development approval to generate revenue for the construction or expansion of capital facilities located outside the boundaries of new development that serve the contributing and peripheral developments.  "Capital facilities" means the following facilities owned or operated by government entities:  (a) Public streets and roads; (b) publicly owned parks, open space, and recreational facilities; (c) school facilities; (d) fire protection facilities in jurisdictions that are not part of a fire district; (e) sewer and water connection fees imposed under authority of RCW 35.92.025; (f) water and sewer fees imposed under RCW 35.91.020; (g) street fees imposed under chapter 35.72 RCW; and (h) state environmental policy act mitigation measures imposed under chapter 43.21C RCW.

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