Local gov. property transfer

AN ACT Relating to prohibiting local governments from 1
transferring real property to nongovernment entities without fair 2
consideration; amending RCW 39.33.015; adding a new section to 3
chapter 35.21 RCW; adding a new section to chapter 35A.21 RCW; and 4
adding a new section to chapter 36.01 RCW. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 39.33.015 and 2023 c 301 s 1 are each amended to 7
read as follows: 8
(1) Any state agency, municipality, or political subdivision, 9
with authority to dispose of surplus public property other than real 10
property, may transfer, lease, or otherwise dispose of such property 11
for a public benefit purpose, consistent with and subject to this 12
section. Any such transfer, lease, or other disposal may be made to a 13
public, private, or nongovernmental body on any mutually agreeable 14
terms and conditions, including a no cost transfer, subject to and 15
consistent with this section. 16
(2) Any state agency, municipality, or political subdivision with 17
authority to dispose of surplus public real property may lease or 18
sell such for a public benefit purpose, consistent with and subject 19
to this section. Any sale or lease may be made to a public, private, 20
or nongovernmental body on any mutually agreeable terms and 21
H-0952.1
HOUSE BILL 1852
State of Washington 69th Legislature 2025 Regular Session
By Representatives Graham, Keaton, Volz, Marshall, and Eslick
Read first time 02/05/25. Referred to Committee on Housing.
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conditions, including a lease for a nominal amount. Consideration 1
must include appraisal costs, debt service, all closing costs, and 2
any other liabilities to the agency, municipality, or political 3
subdivision, and, in a sale, must be fair . However, the property may 4
not be so ((transferred,)) sold or leased((, or disposed of if such 5
transfer, lease, or disposal )) if doing so would violate any bond 6
covenant or encumber or impair any contract. 7
(((2))) (3) A deed, lease, or other instrument transferring or 8
conveying property pursuant to subsection (((1))) (2) of this section 9
must include: 10
(a) A covenant or other requirement that the property shall be 11
used for the designated public benefit purpose; and12
(b) Remedies that apply if the recipient of the property fails to 13
use it for the designated public purpose or ceases to use it for such 14
purpose. 15
(((3))) (4) To implement the authority granted by this section, 16
the governing body or legislative authority of a municipality or 17
political subdivision must enact rules to regulate the disposition of 18
property for public benefit purposes. Any transfer, lease, or other 19
disposition of property authorized under this section must be 20
consistent with existing locally adopted comprehensive plans as 21
described in RCW 36.70A.070. 22
(((4))) (5) This section is deemed to provide a discretionary 23
alternative method for the doing of the things authorized herein, and 24
shall not be construed as imposing any additional condition upon the 25
exercise of any other powers vested in any state agency, 26
municipality, or political subdivision. 27
(((5))) (6) No transfer, lease, or other disposition of property 28
for public benefit purposes made pursuant to any other provision of 29
law prior to June 7, 2018, may be construed to be invalid solely 30
because the parties thereto did not comply with the procedures of 31
this section. 32
(((6))) (7) The ((transfer at no cost, )) lease((, or other 33
disposal)) of surplus real property for a nominal amount for public 34
benefit purposes is deemed a lawful purpose of any state agency, 35
municipality, or political subdivision, for which accounts are kept 36
on an enterprise fund or equivalent basis, regardless of the primary 37
purpose or function of such agency. 38
(((7))) (8) This section does not apply to the sale or transfer 39
of any state forestlands, any state lands or property granted to the 40
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state by the federal government for the purposes of common schools or 1
education, or subject to a legal restriction that would be violated 2
by compliance with this section. 3
(((8))) (9) For purposes of this section: 4
(a) "Affordable housing" means: 5
(i) For rental housing, 30 percent of the household's monthly 6
income for rent and utilities, other than telephone; or7
(ii) For permanently affordable homeownership, 38 percent of the 8
household's monthly income for mortgage principal, interest, property 9
taxes, homeowner's insurance, homeowner's association fees, and land 10
lease fees, as applicable. In addition, total household debt is no 11
more than 45 percent of the monthly household income;12
(b) "Public benefit" means affordable housing, which can be 13
rental housing or permanently affordable homeownership for low-income 14
and very low-income households as defined in RCW 43.63A.510, and 15
related facilities that support the goals of affordable housing 16
development in providing economic and social stability for low-income 17
persons; and 18
(c) "Surplus public property" means excess real property that is 19
not required for the needs of or the discharge of the 20
responsibilities of the state agency, municipality, or political 21
subdivision. 22
NEW SECTION. Sec. 2. A new section is added to chapter 35.21 23
RCW to read as follows: 24
A city may not transfer or sell real property owned by the city 25
to a nongovernmental entity or individual without receiving fair 26
market value or other equivalent compensation. 27
NEW SECTION. Sec. 3. A new section is added to chapter 35A.21 28
RCW to read as follows: 29
A code city may not transfer or sell real property owned by the 30
code city to a nongovernmental entity or individual without receiving 31
fair market value or other equivalent compensation.32
NEW SECTION. Sec. 4. A new section is added to chapter 36.01 33
RCW to read as follows: 34
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A county may not transfer or sell real property owned by the 1
county to a nongovernmental entity or individual without receiving 2
fair market value or other equivalent compensation.3
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