SB 6337

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Human Services, Mental Health & Housing, February 4, 2016

Title: An act relating to disposing tax foreclosed property to cities for affordable housing purposes.

Brief Description: Disposing tax foreclosed property to cities for affordable housing purposes.

Sponsors: Senators Darneille, Miloscia, McCoy, Hasegawa, Conway and Chase.

Brief History:

Committee Activity: Human Services, Mental Health & Housing: 1/21/16, 2/01/16, 2/02/16, 2/04/16 [DPS].


Majority Report: That Substitute Senate Bill No. 6337 be substituted therefor, and the substitute bill do pass.

Signed by Senators O'Ban, Chair; Miloscia, Vice Chair; Darneille, Ranking Minority Member; Hargrove and Padden.

Staff: Alison Mendiola (786-7444)

Background: Local jurisdictions must follow state statute and any applicable local ordinance or code to dispose of property it owns. The same is true for property a legislative authority owns as a result of a tax foreclosure.

Tax-Foreclosed Property. A legislative authority may dispose of tax-foreclosed property by private negotiation, without a call for bids, and for at least the principle amount of unpaid taxes in any of the following cases: (1) when the sale is to any governmental agency and for public purposes; (2) 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) when the property has an assessed value of less than $500 and the property is sold to an adjoining landowner; or (4) when no acceptable bids were received at the attempted public auction of the property, if the sale is made within 12 months from the date of the attempted public auction.

Summary of Bill (Recommended Substitute): Prior to disposing of tax-foreclosed property, the county legislative authority gives notice to any city in which any tax foreclosed property is located within 60 days of acquiring the property.

The notice must offer the city the opportunity to purchase the property for the original minimum bid under RCW 84.64.080, under the following conditions:

EFFECT OF CHANGES MADE BY HUMAN SERVICES, MENTAL HEALTH & HOUSING COMMITTEE (Recommended Substitute): Language changed from "principal amount of unpaid taxes" to "original minimum bid under RCW 84.64.080" which allows for the collection of unpaid taxes, interest, and costs.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony on Original Bill: PRO: This is another tool in the tool box of addressing the need for affordable housing, a tool that Tacoma would like to use. This won't solve the problem of the lack of affordable housing but it will help. This bill only applies to county tax foreclosed property, meaning the taxes have not been paid on the property for three years before the tax foreclosure.

Persons Testifying on Original Bill: PRO: Senator Darneille, Prime Sponsor; and Briahna Murray, Representing City of Tacoma.

Persons Signed In To Testify But Not Testifying on Original Bill: No one.