24 Housing Supply Bills Survive First Cut-off in Olympia

Last Friday was the final day for bills in the State Legislature to get out of a committee, with the exception of fiscal and transportation committees, and bills necessary to budgets.

Fifteen bills related to housing supply passed out of a House committee by yesterday’s cut-off.

House Bill 1085, sponsored by Rep. Brian Blake (D – Longview) et al, would permit cities and counties to eliminate any minimum floor space requirements for single family detached homes, or reduce any such standards below any minimum standards in the State Building Code. The bill passed out of the House Community Development, Housing & Tribal Affairs (CDHTA) Committee 7-0 on February 1. It is currently in the House Rules Committee, waiting to be placed on the second reading floor calendar.

Substitute House Bill 1514, by the House Judiciary Committee, and originally sponsored by Rep. June Robinson (D – Everett) et al, would require, with limited exceptions, that a landlord under the Manufactured/Mobile Home Landlord Tenant Act provide 18 months notice of closure or conversion. Exceptions would include when the property is taken through imminent domain; when the property is sold to a tenants’ organization, a local government, a nonprofit, or a housing authority that preserves the housing; or the landlord compensates the tenants for the loss of their homes at their assessed value prior to a change of use or sale of the property. The committee amendment reduced the notification time from 3 years to 18 months. The substitute bill passed out of the House Judiciary Committee 8-5 on Thursday. It is currently in the House Rules Committee. The committee report detailing testimony was not available at time of publication. The companion bill, SB 5520, failed to get a hearing in the Senate Financial Institutions & Insurance Committee.

A group of protesters from The Firs Mobile Home Park, which is slated to be replaced with apartments and hotels, protested at the Angle Lake Station opening celebration. Per KUOW coverage, the landlord is arranging an alternative location for current tenants of the mobile home park. Under current law, mobile home tenants have a right to a one-year lease.

SHB 1532, by the House Finance Committee, and originally sponsored by Rep. Kristine Lytton (D – Anacortes) et al, would amend the property tax exemption for real property owned by a nonprofit entity for the purpose of developing residences to be sold to low-income households to include single-family dwelling units where the land is leased for life or 99 years. This could include single units that are part of a multiunit dwelling. The committee amendment has the exemption from property taxes expire for the land value, once the lease is executed. The substitute bill passed out of committee 9-1-1 on February 14, and is sitting in the House Rules Committee. The companion bill, SB 5143, passed out of the Senate Human Services, Mental Health & Housing Committee on February 15.

HB 1570, by Rep. Nicole Macri (D – Seattle) et al, would raise the Homelessness Housing & Assistance surcharge on document recordings from $40 to $90 and make it permanent. A substitute version of the bill passed out of the CDHTA Committee 4-3 on February 16. The substitute bill was not available at the time of publication. The bill is now in the House Appropriations Committee, needing to be heard and voted on by Friday.

HB 1616, requested by the Washington State Housing Finance Commission, and sponsored by Rep. Joan McBride (D – Kirkland) et al, would expand the type of allowable land that loans may be made for, under the Affordable Housing Land Acquisition Revolving Loan Fund Program, to include land that already has structures on it, not just vacant property. Purchasers would then be able to tear down the structures to build new housing, or convert the structures into housing. The bill passed out of the CDHTA Committee 5-2 on February 9. It on the second reading floor calendar.

HB 1627, requested by Washington State Housing Finance Commission, and sponsored by Reps. Cindy Riu (D – Shoreline) and Joan McBride (D – Kirkland), would expand the definition of “nonprofit corporation,” for the purpose of eligibility to receive lower-cost financing through the Nonprofit Facilities Program, to include any public development authority and organizations eligible to receive assistance through the Department of Commerce’s Affordable Housing Program. The bill passed out of committee 7-0 February 9, and is sitting in the House Rules Committee. The committee report detailing testimony was not available at time of publication.

HB 1633, by Rep. Marcus Riccelli (D – Spokane) et al, would prohibit discrimination by a landlord against a tenant or applicant based on source of income. The bill passed out of the House Judiciary Committee 7-6 on February 16, and is sitting in the House Rules Committee. The companion bill, SB 5407, did not get out of the Senate Financial Institutions & Insurance Committee. The committee report detailing testimony was not available at time of publication.

SHB 1740, by the House Environment Committee, and originally sponsored by Rep. McBride et al, would require that at least 10 percent of dwelling units in a project completed under a city’s optional comprehensive plan must be set aside for affordable housing in order for the project to be exempt from appeal under the State Environmental Policy Act. The committee amendment reduced the percent from 20 to 10 or whatever percentage local statute sets. A representative of Futurewise testified neutrally, asking that the 18-year life of the exemption program be reduced to 8 years so its impact on transit-oriented development can be assessed sooner. The bill passed out of the House Environment Committee 5-4 on February 9. It is now in the House Appropriations Committee, where it needs to be heard and voted on by Friday.

HB 1752, Rep. Sharon Tomiko Santos (D – Seattle) et al, would create the Affordable Housing Land Bank within the Department of Commerce to hold and lease publically owned land for the construction and development of affordable housing within certain urban development areas, would require certain governmental entities to remit 20 percent of public lands sales to provide funding for the Housing Trust Fund, and would allow governmental entities to transfer or lease property within an urban development area into the Land Bank to obtain an exemption from the 20 percent remittance. A substitute version of the bill passed out of the House CDHTA Committee 4-3 on February 15. The committee report detailing differences between the bills and testimony was not available at time of publication.

SHB 1763, by the House Finance Committee, and originally sponsored by Rep. Robinson et al, would expand the property tax exemption for nonprofit organizations providing housing to low-income individuals with developmental disabilities to include adult family homes for individuals with development disabilities in which at least 75% of the residents are low-income, removing the current requirement that all residents be low-income in order to qualify. The committee amendment sunsets the exemption in 2028. The substitute bill passed out of committee 10-0 on February 14 and is in the House Rules Committee.

SHB 1797, by the House CDHTA Committee, and originally sponsored by Rep. McBride et al, would allows cities to apply for a one-time remittance of 4.37 percent of the state sales and use tax on public purchases for affordable housing development or public infrastructure to support such development, would allow up to 25% of the local real estate excise tax to be used for affordable housing development through 2022 so long as other local capital projects have adequate funding, and would allow King County and the cities within King County to have a 0.1% local sales tax for mental health services and affordable housing without an election. The substitute bill passed out of committee 7-0 on February 15, was heard in the House Finance Committee Tuesday, and has to be voted out of that committee by Friday.

SHB 1862, by the House Local Government Committee, and originally sponsored by Rep. Joe Fitzgibbon (D – Burien) and Jay Rodne (R – Snoqualmie), would allow the legislative authority of cities, towns, and counties to, by ordinance, delegate final plat approval to an established planning commission, planning agency, or other authorized administrative personnel in accordance with state law and local charter. The committee amendment merely makes terminology consistent throughout the bill. The substitute bill passed out of committee 4-3 on February 15, and is in the House Rules Committee. Its companion is Senate Bill 5674, which passed out of the Senate Local Government Committee on February 9.

HB 1987, by Rep. Joan McBride (D – Kirkland) et al, would prohibit cities and counties from restricting any affordable housing development on real property owned or controlled by a religious organization when the affordable housing development (1) is set aside for or occupied exclusively by low-income households; (2) is part of a lease or binding obligation that requires development to be used exclusively for affordable housing purposes for at least 40 years, even if the religious organization no longer owns the property; and (3) does not discriminate against any person who qualifies as a member of a low-income household. A substitute version of the bill passed out of the House CDHTA Committee 4-3 on February 16. The committee report for that substitute bill, detailing testimony and differences with the original bill, was not available at time of publication.

HB 2044 by Rep. Joan McBride (D – Kirkland) et al, would prohibit county, city, and town ordinances from placing undue burden on religious organizations providing housing or shelters for the homeless, but would allow ordinances requiring 3-month breaks between hostings, and would require a hosting religious organization to enter into a written agreement to provide residents of temporary shelters access to public health and safety assistance. A substitute version of the bill passed out of the CDHTA Committee February 16, and is sitting in the House Rules Committee. The committee report for the substitute bill was not available at time of publication. It’s companion bill, SB 5657, was amended in, and passed out of, the Senate Local Government Committee the same day.

HB 2046, by Rep. Mike Steele (R – Chelan) et al, would allow cities and counties to establish a local infrastructure investment program by ordinance, and apply for a remittance of 4.37 percent, of the state sales and use tax, on the construction of local infrastructure to support the development of affordable housing, workforce housing, or revitalization efforts within a revitalization district. The tax remittance would be credited against the state tax charged on the same sales and could be claimed once per project. The bill passed out of the CDHTA Committee 7-0 on February 16, and heads next to the House Finance Committee, where it needs to be heard and voted on by Friday.

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Nine bills related to housing supply passed out of a Senate committee by yesterday’s cut-off.

Senate Bill 5060, by the Senate Health Care Committee, and originally sponsored by Sens. Steve O’Ban (R – Tacoma) and Steve Conway (D – Tacoma), and one other senator who has since withdrawn her sponsorship, would require the rules and standards adopted by the department of social and health services to provide that no more than two adult family homes may be located within a four block area of a residential community within Pierce County. The committee amendment limited the NIMBYism to Pierce County and provided a grandfather clause. The substitute bill passed out of committee 7-4-1 on February 7, with Sen. Conway switching to “without recommendation”. The bill is sitting in the Senate Rules Committee, waiting to be placed on the second reading floor calendar. The companion bill, HB 1383, did not get a hearing in the House Health Care & Wellness Committee.

Substitute Senate Bill 5077, by the Senate Law & Justice Committee, and originally sponsored by Sen. Jan Angel (R – Port Orchard) et al, would allow the Department of Corrections to provide rental vouchers for up to three months to persons released from the Washington Corrections Center for Women or the Mission Creek Corrections Center for Women. The committee amendment added the Mission Creek facility after testimony requesting the addition. Per testimony, 16 women were released from custody into homelessness last year. The bill passed out of committee 7-0 on January 26, and sits in the Senate Rules Committee waiting to be placed on the second reading floor calendar.

SB 5143, Sen. Hans Zeiger (R – Puyallup) et al, would amend the property tax exemption for real property owned by a nonprofit entity for the purpose of developing residences to be sold to low-income households to include single-family dwelling units where the land is leased for life or 99 years. This could include single units that are part of a multiunit dwelling. The bill passed out of the Senate Human Services, Mental Health & Housing Committee 4-0 on February 6. It was heard in the Senate Ways & Means Committee on February 15, and needs to be voted out by Friday. Its companion bill, HB 1532, was amended in the House Finance Committee and passed out on February 14.

SB 5182, by Sen. Joe Fain (R – Auburn) et al, would allow a city or county to adopt a property tax exemption program to preserve affordable housing for very low-income households. To qualify for this exemption, a minimum of 25 percent of units in a multiple-unit property must be affordable, and in return the property is exempt from local property taxes for 15 years. The bill is based on one of the 65 recommendations in Seattle’s Housing Affordability and Livability Agenda. The bill passed out of the Senate Human Services, Mental Health & Housing Committee 5-0-1 on February 8. It was heard in the Senate Ways & Means Committee Tuesday, and has to be voted out by Friday.

SSB 5254, by the Senate Local Government Committee, and originally sponsored by Sen. Fain et al, would add factors to the land capacity analysis and a housing supply and affordability review to the Growth Management Act; would create a property tax exemption program for cities and county unincorporated areas to preserve affordable housing for low-income households; would require updates to the state and local homeless housing plans; and would allow county auditors to create a $50 document recording fee to fund housing programs. Both the bill and its reports are lengthy. There was much testimony against the bill, including from Futurewise. The bill passed out of committee 5-0 Tuesday, and is scheduled to be heard Wednesday in the Senate Ways & Means Committee, from which it must be voted out by Friday.

SB 5569, by Sen. Jan Angel (R – Port Orchard) et al, would ban cities, towns, and counties from enacting, maintaining, or enforcing any ordinance or other provision that would create additional protected classes against housing discrimination beyond those already listed in the Washington Law Against Discrimination. The practical effect of the bill would be to overturn various local ordinances against discrimination based on source of income. The bill passed 4-3 out of the Senate Law & Justice Committee on February 16, and is sitting in the Senate Rules Committee.

SB 5615, by Sen. Tim Sheldon (D – Potlatch) would permit counties to establish manufactured housing communities outside of urban growth areas in the same manner as fully contained communities. Both Futurewise and the Association of Manufactured Home Owners testified against the bill, concerned that the this would lead to land speculation and displacement of those living in the new manufactured communities. The bill passed out of the Senate Local Government Committee 5-0 Tuesday, and is now in the Senate Rules Committee.

SSB 5657, by the Senate Local Government Committee, and originally sponsored by Sens. Mark Miloscia (R – Federal Way) and Ann Rivers (R – La Center), would prohibit county, city, and town ordinances from placing undue burden on religious organizations providing housing or shelters for the homeless, but would allow ordinances requiring 3-month breaks between hostings, and would require a hosting religious organization to enter into a written agreement to provide residents of temporary shelters access to public health and safety assistance. The bill passed out of committee 5-0 on February 16, and is sitting in the Senate Rules Committee. The companion bill, SHB 2044, was amended in and passed out of the House CDHTA Committee the same day.

SB 5674, by Sens. Guy Palumbo (D – Maltby) and Joe Fain (R – Auburn), would allow the legislative authority of cities, towns, and counties to, by ordinance, delegate final plat approval to an established planning commission, planning agency, or other authorized administrative personnel in accordance with state law and local charter. The bill passed out of committee 5-0 on February 9, and is in the Senate Rules Committee. A substitute version of its companion bill, HB 1862, passed out of the House Local Government Committee on February 15.