The short session is just past its halfway point, and the pace continues to accelerate! We are excited to see continued momentum around housing opportunity this session. A number of the proposals around tenant protections, inclusionary zoning, and land use are linked together as part of a proposed housing package but continue to move as separate bills. Here’s where Housing Alliance priorities and other relevant bills stand mid-way through session.
Housing Alliance agenda priorities
Tenant protections (HB 4143): This bill includes 90 days’ notice for rent increases and no rent increases during the first year of tenancy. It has passed out of the House Committee on Human Services and Housing and House Committee on Rules, and is now headed to the House floor and then Senate Rules.
Inclusionary zoning (SB 1533): While inclusionary zoning is a priority of the Housing Alliance, we are neutral on the current version of this bill, which was amended in the Senate Committee on Human Services and Early Childhood. SB 1533 as amended would allow local governments to implement inclusionary zoning with the following parameters:
- IZ can require up to 20% of units in multifamily structures (defined as three connected units) in developments or structures of 20 units or more.
- IZ units can be for sale or rental.
- IZ units are affordable to households at 80% of area median income and above with some (complete or partial) subsidy requirements.
- Local government must offer incentives for inclusionary zoning units, including property tax exemptions for affordable rental units. Note that property tax exemptions would tie units to area median incomes of 80% and below.
SB 1533 also allows cities and counties to impose a construction excise tax (CET) of up to 1% on residential properties, with all proceeds dedicated for affordable housing, as well as on commercial properties with half of the proceeds dedicated to affordable housing. CETs on industrial property would not be limited.
The bill is scheduled for a hearing and work session before the Senate Committee on Finance and Revenue on Feb. 22.
Removing the sunset of property tax exemptions for affordable housing (HB 4081): Passed out of House Committee on Revenue and then unanimously passed by the House. Hearing scheduled for Feb. 22 before the Senate Committee on Human Services and Early Childhood.
Local Innovation and Fast Track affordable housing development program parameters (SB 1582): Passed out of Senate Committee on Human Services and Early Childhood, then referred to the Joint Committee on Ways and Means and assigned to the Subcommittee on Transportation and Economic Development. Work session scheduled for Feb. 23.
We remain optimistic about funding for the Emergency Housing Account and State Homeless Assistance Program, as well as funds to preserve affordable housing units. These will be included as funding requests in the budget bill.
Support agenda items
Restoring General Assistance (HB 4042): Passed out of House Human Services and Housing; referred to Joint Ways and Means
Strengthening the Earned Income Tax Credit
HB 4110: Increase in EITC for families with young children): Passed out of House and awaiting first reading before the Senate.
HB 4144 (increasing EITC utilization): Passed out of House Committee on Human Services and Housing and House Committee on Revenue. Referred to Ways and Means.
Minimum wage (SB 1532): Passed House and Senate; sent to Governor’s desk.
Document recording fee and capital gains tax exemption for affordable housing (HB 4043): Public hearing held before House Committee on Revenue on Feb. 8. No action taken.
Funding for 211info: Will be contained as a funding request in the budget bill.
Other bills to watch
The Housing Alliance is neutral or has not taken a position on the following housing-related bills.
HB 4064 (affordable housing mortgage loan fund): Passed out of House Committee on Human Services and Housing and referred to Joint Committee on Ways and Means.
HB 4079 (establishing pilot programs to expand the urban growth boundary to develop affordable housing): Passed out of House Committee on Rural Communities, Land Use and Water and House Committee on Rules; referred to Joint Committee on Ways and Means.
SB 1573 (ending voter approval of annexation): Currently in Senate Committee on Rules.
SB 1575 (various measures intended to encourage local governments to dedicate land for affordable housing): Public hearing held before Senate Committee on Human Services and Early Childhood on Feb. 8 with no action taken.