Bill > HB2227

This bill provides a real estate excise tax (REET) exemption for certain affordable housing sales and transfers, focusing on expanding opportunities for low-income housing development. Specifically, the bill modifies existing law to create new exemptions for sales of qualified housing developments to nonprofit organizations, housing authorities, and public corporations. The exemption applies to sales of residential properties that will be used for housing low-income individuals, defined as households earning up to 80% of the county's median income. The bill introduces provisions for qualifying grantees who receive such properties, requiring them to either operate existing housing, develop new housing, or substantially rehabilitate premises within specified timelines to maintain the tax exemption. Notably, the bill replaces the term "self-help housing" with "ownership housing" and provides mechanisms for tracking the effectiveness of this tax preference, including requiring the joint legislative audit and review committee to review the number of taxpayers claiming the exemption and the total amount of real estate excise tax revenue exempted. The tax preference is designed to encourage the development of affordable housing by reducing the financial burden of property transfers for qualifying entities. The exemption will expire on January 1, 2030, allowing the legislature to reassess its effectiveness in the future.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2227&Year=2025&Initiative=false