"NEW SECTION.  Sec. 2   A new section is added to chapter 82.02 RCW to read as follows:
     (1) As used in this chapter, "first-time buyer housing affordability index" means the index determined by the Washington center for real estate research that measures the ability of a typical renter household to afford the purchase of a typical starter home by assuming: (a) The household will purchase a home priced at eighty-five percent of area median with a ten-percent down payment; (b) the home mortgage loan is for a term of thirty years at the prevailing average fixed rate of interest; (c) the potential first-time home buyer earns seventy percent of the area median household income and twenty-five percent of household income can be used for principal and interest payments.
     (2) For purposes of this chapter, a first-time buyer housing affordability index of: (a) One hundred, indicates that a household of the defined income can afford a home of the defined price; (b) less than one hundred, indicates that a household of the defined income cannot afford a home of the defined price without spending more than twenty-five percent of their income on mortgage payments; and (c) greater than one hundred, indicates that a household of the defined income can afford a home of the defined price while spending less than twenty-five percent of their income on mortgage payments.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.02 RCW to read as follows:
     (1) In any county in which the first-time buyer housing affordability index, as defined in section 1 of this act and as determined by the Washington center for real estate research at Washington State University, is less than one hundred for three quarters in any given year, the county and cities located within the county may not collect impact fees under this chapter for the following two years.
     (2) The one-year period measured by the Washington center for real estate research under subsection (1) of this section shall begin and end in the third quarter of the calendar year. The time period for which the ability to collect impact fees under this chapter is suspended under subsection (1) of this section begins January 1st of the year following the determination by the Washington center for real estate research.

Sec. 4   RCW 82.02.100 and 1992 c 219 s 2 are each amended to read as follows:
     (1) A person required to pay a fee pursuant to RCW 43.21C.060 for system improvements shall not be required to pay an impact fee under RCW 82.02.050 through 82.02.090 for those same system improvements.
     (2) A county prohibited from imposing a fee for system improvements under section 2 of this act may not impose a fee under RCW 43.21C.065 for those same system improvements.
     (3) A county prohibited from imposing a fee for system improvements under section 2 of this act may not require a dedication of land under RCW 58.17.110 for those same system improvements."