OLYMPIA — A bill aimed at increasing affordable housing was signed into law by Gov. Jay Inslee today.
Senate Bill 6175, sponsored by Sen. Yasmin Trudeau (D-Tacoma), represents a collaborative effort to address the pressing need for accessible housing options, particularly for low- and moderate-income households in urban areas. The newly enacted legislation introduces provisions for a sales and use tax exemption, empowering city governing authorities to convert commercial buildings into affordable housing units. This measure comes in response to identified areas of underutilized commercial property and a shortage of affordable housing options in such areas.
Under SB 6175, property owners seeking tax exemptions for the conversion of commercial spaces into multifamily housing units must meet specific criteria outlined in the legislation. These include commitments to rent or sell a percentage of units as affordable housing, compliance with local plans and regulations, and adherence to additional affordability and income eligibility conditions set forth by the respective local governments.
“This legislation represents a crucial step forward in our ongoing efforts to ensure that every individual and family in our state has access to safe and affordable housing,” Trudeau stated. “By incentivizing the conversion of underutilized commercial properties into housing units, we are not only revitalizing our communities but also providing much-needed support to our neighbors facing housing insecurity.”
The bill further establishes reporting requirements to ensure transparency and accountability in the implementation of these tax preferences. Cities issuing program approval certificates must provide annual reports to the Department of Commerce, detailing the number of certificates granted, housing units converted, and the estimated value of sales and use tax deferrals.
The new law goes into effect June 6, 2024.
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