Bill > HB1206

This bill expands the eligibility for the Multifamily Tax Exemption (MFTE) program to all counties that are required or choose to plan under the Growth Management Act (RCW 36.70A.040). Currently, the program has been limited to specific types of counties and cities. The bill modifies the definition of "county" to remove population restrictions, allowing more counties to participate in the tax exemption program. The MFTE program provides tax incentives for developers who create multifamily housing units, with a requirement that a percentage of those units be affordable to low and moderate-income households. Specifically, for housing in unincorporated county areas, developers must commit to renting or selling at least 20% of units as affordable housing to low and moderate-income households. The bill also maintains existing provisions that require counties to evaluate potential resident displacement risks when designating residential targeted areas and allows local governments to set additional requirements for developers seeking the tax exemption, such as prevailing wage standards, apprenticeship utilization, and contracting inclusion plans.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1206&Year=2025&Initiative=false