On page 25, after line 13, insert the following:
"(10)(a) A city or county may permit American dream homes in order to encourage the development of residential housing for low-income households. A new American dream home may be approved in a city or county if the following criteria are met:
(i) Each American dream home is exempt from impact fees under RCW 82.02.050; (ii) The city or county does not charge cumulative permitting fees for each American dream home that equal more than $1,250;
(iii) Provisions, such as covenants or other restrictions, are included to ensure that each American dream home remains reserved for low-income households.
(b) For the purposes of this section:
(i) "American dream home" means an owner-occupied single-family residential detached dwelling of 1,700 square feet or less serving low-income households.
(ii) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than 80 percent of the median family income adjusted for household size, for the city or county where the project is located."