SENATE BILL REPORT
SB 5747
As of February 18, 2025
Title: An act relating to an exemption for affordable housing.
Brief Description: Concerning an exemption for affordable housing.
Sponsors: Senators Wilson, J. and Christian.
Brief History:
Committee Activity: Housing: 2/19/25.
Brief Summary of Bill
  • Permits affordable housing projects meeting 12-year Multi-Family Property Tax Exemption criteria to be constructed, altered, or repaired according to any of the previous four building code standards or the current international building code council model codes.
  • Allows these projects to be constructed, altered, or repaired according to any of the previous four energy code standards or the current international energy conservation codes.
SENATE COMMITTEE ON HOUSING
Staff: Benjamin Omdal (786-7442)
Background:

State Building Code.  The State Building Code (Code) establishes minimum performance standards and requirements for construction and construction materials in the state, consistent with accepted standards of engineering, fire, and life safety.  The Code comprises a number of model codes and standards, developed and published by international and national organizations, which are adopted by reference in the State Building Code Act (Act).  Model codes and standards adopted in the Act include the International Building Code (IBC), the International Residential Code, and the Energy Code.

 

The State Building Code Council (Council) is responsible for adopting, amending, and maintaining the model codes and standards adopted by reference in the Act.  Amendments to the model codes and standards adopted by the Council are codified in the Washington Administrative Code.  The Council reviews updated editions of each model code and standard every three years.

 

The Multi-Family Property Tax Exemption. The Multi-Family Property Tax Exemption (MFTE) exempts real property associated with the construction, conversion, or rehabilitation of qualified, multiple-unit residential structures. Property owners must submit an application for the tax exemption to the designated city or county.  The city or county may include additional eligibility requirements for the tax exemptions.  Tax exemptions available under the statute include:

  • 8-year exemption;
  • 12-year exemption if the applicant commits to renting or selling at least 20 percent of multiple-family housing units as affordable housing to low- and moderate-income households; and
  • 20-year exemption if applicant commits to renting at least 20 percent of dwelling units to low-income households for a term of 99 years.
Summary of Bill:

Affordable housing projects which meet the criteria of the 12-year MFTE may be constructed, altered, or repaired according to any of the previous four building code standards or the current IBC council model codes.

 

These projects may be constructed, altered, or repaired according to any of the previous four energy code standards or the current international energy conservation codes.

 

For the purposes of the Act, affordable housing is defined as residential housing rented by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household's monthly income. 

 

For the purposes of housing intended for owner occupancy, affordable housing means residential housing that is within the means of low or moderate-income households, defined as households earning 80 percent or less of the median income for a locality.
Appropriation: None.
Fiscal Note: Requested on February 13, 2025.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.