Bill > HB1717

This bill creates a sales and use tax remittance program designed to incentivize the development of affordable housing across Washington state. The bill defines affordable housing as residential units where low-income households (those earning at or below 80-100% of the area median income) pay no more than 30-38% of their monthly income on housing costs. Eligible organizations like nonprofit developers, public housing authorities, and for-profit developers can apply to local city or county governments for approval of qualifying projects that dedicate at least 50% of units to low-income households for a minimum of 40 years. If approved, these organizations can receive a 50% remittance of state and local sales and use taxes paid during construction, with the remaining 50% going to the local government. These remitted funds must be used by cities and counties for purposes such as acquiring or constructing affordable housing, funding housing operations, or supporting behavioral health services. The program is set to begin January 1, 2026, and will expire on December 31, 2035, with the Joint Legislative Audit and Review Committee required to evaluate its effectiveness in creating affordable housing units by December 31, 2033.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1717&Year=2025&Initiative=false