BILL REQ. #:  H-3425.1 

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.

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

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 the principal amount of the unpaid taxes, 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 of all real property taxes levied on the property for the period that the city owns the property. The tax obligations deferred must become payable with interest upon the transfer or conveyance of the property to a local housing authority, nonprofit housing organization, or other eligible entity provided in subsection (2) of this section. The county must collect the payment on the deferred taxes directly from the housing entity receiving the property.