Affordable housing dev.

AN ACT Relating to affordable housing development in counties not 1
closing the gap between estimated existing housing units within the 2
county and existing housing needs; amending RCW 36.70A.610 and 3
43.155.070; adding a new section to chapter 36.70A RCW; and creating 4
a new section. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 36.70A.610 and 2020 c 173 s 6 are each amended to 7
read as follows: 8
(1) The Washington center for real estate research at the 9
University of Washington shall produce a series of reports as 10
described in this section that compiles housing supply and 11
affordability metrics for each city planning under RCW 36.70A.040 12
with a population of ((ten thousand)) 10,000 or more.13
(a) The initial report, completed by October 15, 2020, must be a 14
compilation of objective criteria relating to income, employment, 15
housing and rental prices, housing affordability by housing tenure, 16
and other metrics relevant to assessing housing supply and 17
affordability for all income segments, including the percentage of 18
cost-burdened households of each jurisdiction. This report may also 19
include city-specific median income data for those cities 20
S-0980.1
SENATE BILL 5587
State of Washington 69th Legislature 2025 Regular Session
By Senators Cleveland, Nobles, and Orwall
Read first time 01/30/25. Referred to Committee on Housing.
p. 1 SB 5587
implementing the multifamily tax exemption program under chapter 1
84.14 RCW. 2
(b) The report completed by October 15, 2021, must include an 3
analysis of the private rental housing market for each area outlining 4
the number of units, vacancy rates, and rents by unit type, where 5
possible. This analysis should separate market rate multifamily 6
rental housing developments and other smaller scale market rate 7
rental housing. This analysis should also incorporate data from the 8
Washington state housing finance commission on subsidized rental 9
housing in the area consistent with the first report under this 10
subsection. 11
(c) The report completed by October 15, 2022, must also include 12
data relating to actions taken by cities under chapter 348, Laws of 13
2019 as well as detailed information on development regulations, 14
levies and fees, and zoning related to housing development.15
(d) The report completed by October 15, 2024, and every two years 16
thereafter, must also include relevant data relating to buildable 17
lands reports prepared under RCW 36.70A.215, where applicable, and 18
updates to comprehensive plans under this chapter.19
(e) The report completed by October 15, 2026, and every two years 20
thereafter, must also include:21
(i) An analysis of the estimated existing housing units and 22
existing housing needs within each county at the following income 23
levels: 0 to 30 percent of the area median income, 30 to 50 percent 24
of the area median income, 50 to 80 percent of the area median 25
income, 80 to 100 percent of the area median income, 100 to 120 26
percent of the area median income, and greater than 120 percent of 27
the area median income;28
(ii) Each county's progress in closing the gap between estimated 29
existing housing units within the county and existing housing needs; 30
and31
(iii) Each county's progress in meeting emergency housing, 32
emergency shelters, and permanent supportive housing needs within the 33
county.34
(2) The Washington center for real estate research shall 35
collaborate with the Washington housing finance commission and the 36
office of financial management to develop the metrics compiled in the 37
series of reports under this section. 38
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(3) The series of reports under this section must be submitted, 1
consistent with RCW 43.01.036, to the standing committees of the 2
legislature with jurisdiction over housing issues and this chapter.3
NEW SECTION. Sec. 2. A new section is added to chapter 36.70A 4
RCW to read as follows: 5
(1) If the report produced under RCW 36.70A.610 finds that a 6
county's gap between estimated existing housing units and existing 7
housing needs has not decreased from the preceding year, the county, 8
or any city within the county may not deny an affordable housing 9
development, or approve an affordable housing development with 10
conditions or restrictions that have a substantial adverse impact on 11
the viability of the development or the degree of affordability of 12
the development unless at least one of the following conditions is 13
met: 14
(a) The denial of the affordable housing development, or the 15
approval of the affordable housing development with conditions or 16
restrictions that have a substantial adverse impact on the viability 17
of the development or the degree of affordability of the development, 18
is required in order to comply with specific state or federal law;19
(b) The affordable housing development or proposed development 20
site is located outside an urban growth area, in a critical area, in 21
a critical area buffer, or in an area where residential uses are not 22
allowed by the applicable shoreline master program; or23
(c) The affordable housing development or proposed development 24
site is located in an area where neither the local jurisdiction's 25
comprehensive plan nor zoning ordinance permits residential or mixed 26
uses. 27
(2) The county or city must require the developer of an 28
affordable housing development to include legally binding, 29
enforceable restrictions on the development, recorded as a covenant 30
or deed restriction, to ensure that the measures of affordability 31
described in subsection (5) of this section are met for a minimum 25-32
year period. The county or city must periodically audit compliance 33
with the restrictions or provide another mechanism to ensure that the 34
units committed to affordable housing meet the measures of 35
affordability described in subsection (5) of this section during the 36
agreed term. 37
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(3) Permits for affordable housing development under this section 1
must be given priority by the city or county and processed prior to 2
any other permit applications. 3
(4) A county or city subject to the requirements of this section 4
is eligible to receive funds under chapter 43.155 RCW to defray 5
infrastructure and clean water costs related to infill development 6
and any other increase in affordable housing units.7
(5) For the purpose of this section "affordable housing 8
development" or "affordable housing" means a residential housing 9
development where the developer has agreed to include legally 10
binding, enforceable restrictions on the development, recorded as a 11
covenant or deed restriction, to ensure that for at least 25 years:12
(a) At least 20 percent of the units are for rental housing with 13
monthly costs that do not exceed 30 percent of the monthly income of 14
a household whose income is at or below 80 percent of the median 15
household income adjusted for household size, for the county where 16
the household is located, as reported by the United States department 17
of housing and urban development; and 18
(b) All remaining units are for rental housing with monthly costs 19
that do not exceed 30 percent of the monthly income of a household 20
whose income is more than 80 percent but is at or below 115 percent 21
of the median household income adjusted for household size, for the 22
county where the household is located, as reported by the United 23
States department of housing and urban development.24
Sec. 3. RCW 43.155.070 and 2021 c 65 s 49 are each amended to 25
read as follows: 26
(1) To qualify for financial assistance under this chapter the 27
board must determine that a local government meets all of the 28
following conditions: 29
(a) The city or county must be imposing a tax under chapter 82.46 30
RCW at a rate of at least one-quarter of one percent;31
(b) The local government must have developed a capital facility 32
plan; and 33
(c) The local government must be using all local revenue sources 34
which are reasonably available for funding public works, taking into 35
consideration local employment and economic factors.36
(2) Except where necessary to address a public health need or 37
substantial environmental degradation, a county, city, or town 38
planning under RCW 36.70A.040 may not receive financial assistance 39
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under this chapter unless it has adopted a comprehensive plan, 1
including a capital facilities plan element, and development 2
regulations as required by RCW 36.70A.040. This subsection does not 3
require any county, city, or town planning under RCW 36.70A.040 to 4
adopt a comprehensive plan or development regulations before 5
requesting or receiving financial assistance under this chapter if 6
such request is made before the expiration of the time periods 7
specified in RCW 36.70A.040. A county, city, or town planning under 8
RCW 36.70A.040 that has not adopted a comprehensive plan and 9
development regulations within the time periods specified in RCW 10
36.70A.040 may apply for and receive financial assistance under this 11
chapter if the comprehensive plan and development regulations are 12
adopted as required by RCW 36.70A.040 before executing a contractual 13
agreement for financial assistance with the board.14
(3) In considering awarding financial assistance for public 15
facilities to special districts requesting funding for a proposed 16
facility located in a county, city, or town planning under RCW 17
36.70A.040, the board must consider whether the county, city, or town 18
planning under RCW 36.70A.040 in whose planning jurisdiction the 19
proposed facility is located has adopted a comprehensive plan and 20
development regulations as required by RCW 36.70A.040.21
(4)(a) The board must develop a process to prioritize 22
applications and funding of loans and grants for public works 23
projects submitted by local governments. The board must consider, at 24
a minimum and in any order, the following factors in prioritizing 25
projects: 26
(i) Whether the project is critical in nature and would affect 27
the health and safety of many people; 28
(ii) The extent to which the project leverages other funds;29
(iii) The extent to which the project is ready to proceed to 30
construction; 31
(iv) Whether the project is located in an area of high 32
unemployment, compared to the average state unemployment;33
(v) Whether the project promotes the sustainable use of resources 34
and environmental quality, as applicable; 35
(vi) Whether the project consolidates or regionalizes systems;36
(vii) Whether the project encourages economic development through 37
mixed-use and mixed income development consistent with chapter 36.70A 38
RCW; 39
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(viii) Whether the project encourages infill development or any 1
other increase in affordable housing in counties subject to the 2
requirements of section 2 of this act. For purposes of this 3
subsection (4)(a)(viii), "affordable housing" has the same meaning as 4
in section 2(5) of this act;5
(ix) Whether the system is being well -managed in the present and 6
for long-term sustainability; 7
(((ix))) (x) Achieving equitable distribution of funds by 8
geography and population; 9
(((x))) (xi) The extent to which the project meets the following 10
state policy objectives: 11
(A) Efficient use of state resources; 12
(B) Preservation and enhancement of health and safety;13
(C) Abatement of pollution and protection of the environment;14
(D) Creation of new, family-wage jobs, and avoidance of shifting 15
existing jobs from one Washington state community to another;16
(E) Fostering economic development consistent with chapter 36.70A 17
RCW; 18
(F) Efficiency in delivery of goods and services and 19
transportation; and 20
(G) Reduction of the overall cost of public infrastructure;21
(((xi))) (xii) Whether the applicant sought or is seeking funding 22
for the project from other sources; and 23
(((xii))) (xiii) Other criteria that the board considers 24
necessary to achieve the purposes of this chapter.25
(b) Before September 1, 2018, and each year thereafter, the board 26
must develop and submit a report regarding the construction loans and 27
grants to the office of financial management and appropriate fiscal 28
committees of the senate and house of representatives. The report 29
must include: 30
(i) The total number of applications and amount of funding 31
requested for public works projects; 32
(ii) A list and description of projects approved in the preceding 33
fiscal year with project scores against the board's prioritization 34
criteria; 35
(iii) The total amount of loan and grants disbursements made from 36
the public works assistance account in the preceding fiscal year;37
(iv) The total amount of loan repayments in the preceding fiscal 38
year for outstanding loans from the public works assistance account;39
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(v) The total amount of loan repayments due for outstanding loans 1
for each fiscal year over the following ((ten)) 10-year period; and2
(vi) The total amount of funds obligated and timing of when the 3
funds were obligated in the preceding fiscal year. 4
(c) The maximum amount of funding that the board may provide for 5
any jurisdiction is ((ten million dollars)) $10,000,000 per biennium.6
(5) Existing debt or financial obligations of local governments 7
may not be refinanced under this chapter. Each local government 8
applicant must provide documentation of attempts to secure additional 9
local or other sources of funding for each public works project for 10
which financial assistance is sought under this chapter.11
(6) Before September 1st of each year, the board must develop and 12
submit to the appropriate fiscal committees of the senate and house 13
of representatives a description of the loans and grants made under 14
RCW 43.155.065 and 43.155.068. 15
(7) The board may not sign contracts or otherwise financially 16
obligate funds from the public works assistance account before the 17
legislature has appropriated funds to the board for the purpose of 18
funding public works projects under this chapter. 19
(8) To qualify for loans, grants, or pledges for solid waste or 20
recycling facilities under this chapter, a city or county must 21
demonstrate that the solid waste or recycling facility is consistent 22
with and necessary to implement the comprehensive solid waste 23
management plan adopted by the city or county under chapter 70A.205 24
RCW. 25
(9) After January 1, 2010, any project designed to address the 26
effects of stormwater or wastewater on Puget Sound may be funded 27
under this section only if the project is not in conflict with the 28
action agenda developed by the Puget Sound partnership under RCW 29
90.71.310. 30
(10) For projects involving repair, replacement, or improvement 31
of a wastewater treatment plant or other public works facility for 32
which an investment grade efficiency audit is reasonably obtainable, 33
the public works board must require as a contract condition that the 34
project sponsor undertake an investment grade efficiency audit. The 35
project sponsor may finance the costs of the audit as part of its 36
public works assistance account program loan or grant.37
(11) The board must implement policies and procedures designed to 38
maximize local government consideration of other funds to finance 39
local infrastructure. 40
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NEW SECTION. Sec. 4. This act may be known and cited as the 1
affordable housing action act.2
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