April Government Affairs Report

2024 WA Leg Session January 8^th and Concluded March 7^th

• Washington lawmakers introduced almost 1,200 bills this session on education, public safety, taxes, housing and a wide variety of other topics – ranging from Lunar New Year to octopus farming. Sixty days later, less than half of that legislation will become law
• WR Priorities:
• (HB 1245) Lot Splitting-Increasing housing options through lot splitting (BILL DID NOT PASS)
  • This would allow cities through an administrative process similar to lot line adjustments to ensure new residential lot meets various requirements such as:
  • Lot Size
  • Availability of utilities
  • Legal access & Easements
  • Compliance with critical areas like wetlands and other environmental constraints
• (HB 2126) Rural ADUs (BILL DID NOT PASS)
  • Authorizing accessory dwelling units in rural areas
  • Allows counties planning under the Growth Management Act to authorize development of detached accessory dwelling units (DADUs) in rural areas on lots of any size if the DADUs and are subject to certain development regulations.
  • Update: Feb 20 Returned to Rules Committee for second reading.House Rules "X" file. Heavy opposition by environmental groups, concerned about water supply issues “Hearst decision” from a number of years ago.
• (HB2160) Transit Oriented Development (BILL DID NOT PASS)
  • Promoting community and transit-oriented housing development.
  • Stuck with it has to have a mandatory for affordable. They believe that affordability has to be developed at the local level. Which reflects the local market. Series of exemption in that cities that are exempted support it and the cities that are not exempted do not support it.

OTHER NOTABLE BILLS:

• (HB 2276) Real Estate Excise Tax (BILL DID NOT PASS)
  • Increases the "ceiling" for the Tier 1 1.1 percent state real estate excise tax (REET) from $525, 000 to $750, 000 beginning January 1, 2025. • Imposes a new real estate transfer tax (RETT) of 1 percent on the value of the selling price over $3.025 million. Directs the revenue from RETT to be divided between accounts currently receiving REET moneys and the Washington Housing Trust Fund, Apple Health and Homes Account, the Affordable Housing for All Account, the new Developmental Disabilities Housing and Services Account, and the new Housing Stability Account. • Creates a REET exemption for certain sales or transfers of properties that qualify for a property tax exemption that will be used for a community purpose.

• (SB 5770) Property Tax Cap Increase (BILL DID NOT PASS)
  • Increases the property tax revenue limit for local property taxes
  • See attached, the focus is to fund the counties Law Enforcement initiatives not Housing
  • 1% to 3% increase property tax lid
  • increases the property tax revenue limit for local property taxes. • Exempts property owners qualifying under the retired persons property tax relief program from 25 percent of part one of the state levy. • Eliminates non-supplant restrictions applicable to local government taxing districts located in a county with a population of 1.5 million or more. • Modifies the portion of a county current expense levy allocated in statute to funding county-owned hospitals.

• (HB 1589) Natural Gas Ban (BILL PASSED)
  • Applies to large gas and utilities providers. They are large emitters and as people electrify, the companies are obligated to provide gas to the customers that need it. Large emitters have to buy credit when they go over the limits. With customers electrifying this will make it more costly for these companies to provide gas to customers. Then the law requires these companies to provide gas.
  • Clean Energy-Supporting WA’s Clean Energy economy & transitioning to a clean affordable & reliable energy future.
    • Ban on New Hookups
    • Under the CCA, large emitters must buy credits when they exceed their limits, they believe that
  • Update-Exec Committee
  • 3/1: applies only to PSE, protecting obligation to provide natural gas. potential increase cost, a loss of predictability to their customers. We want to minimize cost and impact. Was on the floor for 5 hours.

• (SB 6136) Rental Property & B&O Tax (BILL DID NOT PASS)
  • Reestablishing a b & o tax on the privilege of providing property for rent and supporting access to affordable rental property by exempting from tax landlords participating in a rent stabilization program.
    • For both residential and Commercial, was a tax and exemption and now just a tax.
    • Basically, you get a tax exemption if you keep the rate increase below 5% each year. Now it's just a tax. (Tax rate will probably depend on the Gross receipts)
      • Under 1 mil 1.5% over 1mil 1.75??

• (HB 2114 & SB 5961) Rent Control (BILL DID NOT PASS)
  • Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for Attorney General enforcement.
  • 5% Cap increase per year, require 180-day notification for rate increase greater than 3%, would allow tenants 20-day to notice to terminate, limit moving fees & security deposits to 1 month rent.
    • In the House this bill is moving and the Senate not going so well. Very tense and a lot of PASSION. 1 Rep did receive a death threat based on their position.
    • 1 thing that has been brought up a lot, is that Property Taxes are going up higher than the rent caps.

• (SB 6175) An act relating to providing a sales and use tax incentive for existing structures, Concerning housing affordability tax incentives for existing structures.(BILL DID NOT PASS)
  • Allows a city to establish a retail sales and use tax deferral program for the conversion of underutilized commercial property to affordable housing.

• (HB 1433) Home Energy Report (BILL DID NOT PASS)
  • reemerged from last year. Would allow cities and counties to require home energy reports prior to listing and if that a city or county would require this it Basically, its a re-statement that cities and counties already have the authority to do this.
  • Authorizes cities and counties to require that the owner of a single-family residence obtain and make available a home energy performance report before the residence may be publicly advertised for sale. • Requires home energy performance reports, where required by a city or county, to contain specified information and be prepared by a qualified home energy auditor certified by a qualified certification program approved by the United States Department of Energy.

• (SB 5796) Concerning common interest communities (BILL PASSED)
  • Summary: Unlawful Restrictions in Governing Documents. The board of associations may remove unlawful restrictions in the association's governing documents without a vote of the unit owners. A unit owner may request a restriction be removed and requires the board to act within 90 days of receiving such a request.

Thurston County BoCC:

• Approved-Appointment of Board Members for the Regional Housing Council’s Affordable Housing Advisory Board and the Homeless Services Advisory Board
  • Affordable Housing Advisory Board: Karen Hall, Jamie Milletary and Tonya Hennen
  • Homeless Services Advisory Board: Teri Cochran-Frederick and Casper Cramblette
• Approved-Contract with Trillium Housing Services in the amount of $2,650,000 for the construction of Lansdale Apartments.
  • This project will be located at 911 Burr Rd. SE in Olympia and will create 162 units of affordable housing accessible to individuals below 60% of the Area Median Income. The project will have a mix of 1, 2, 3, and 4-bedroom apartments. Construction is expected to begin in May 2024.

 

City of Tumwater: Approved-Ordinance No. 022023-017, TMC 18.38 FP Floodplan Overlay

• Background: City of Tumwater participates with close to three hundred towns, counties and tribes in the state participate in the Federal Emergency Management Agency’s (FEMA National Flood Insurance Program (NFIP)
• Continued enforcement of the City’s floodplain regulations allows FEMA to make federally backed flood insurance available to property overs within the city.
• As a condition of participation in the NFIP, communities are required to adopt and enforce flood hazard reduction regulations that meet the minimum requirements of the NFIP.
  • This has included updates, amendments, revisions and new definitions in all of the following:
  • TMC 18.38.17-Definitions
  • 38.090-Special Flood Hazard Areas
  • TMC 18.38.100- Flood Hazard Data
  • TMC 18.38.130-Floodplain Development Permit Required
  • TMC 18.38.140-Floodplain Development Permit Application
  • TMC 18.38.180-Records
  • TMC 18.38.210 Development and Subdivisions
  • TMC 18.38.184-Flood Protection Standards
  • TMC 18.38.270-Nonresidential Contruction
  • TMC 18.38.280-Manufactured Homes
  • TMC 18.38.285-Detached Accessory Structures
  • TMC 18.38.325-Storage of Materials and Equipment
  • TMC 18.38.360-Floodway Standards
  • TMC 18.38.450-Penalties for Noncompliance
  • SEPA and Notice of Intent
  • FEMA Notification-Draft Maps
• Approved: Interlocal Agreement with Thurston County, Cities of Lacey and Olympia for 2024 Thurston Climate Collaborative Regional Initiatives
• Residential Energy Efficiency and Electrification Campaign Project Plan will include three components:
  • Web-based information hub to educate users about electric and energy-efficient technologies
  • Advisory Support Services that consist of one-on-one personalized support (email, phone and/or video calls) to answer technical questions and help residents plan and complete home electrification and energy efficiency upgrades.
  • Local Incentive & Outreach Campaign-Will include targeted financial incentives, customer support and intensive outreach and marketing.
• Home Energy Score Model Ordinance
  • Bill Authorizes cities and counties to require that the owner of a single-family residence obtain and make available a home energy performance report before the residence may be publicly advertised for sale.
  • Home energy assessment and disclosure programs provide homebuyers and occupants with an assessment of home energy performance, expected energy costs, and recommendations for cost-effective improvements to reduce energy use and costs.
  • Stakeholder Outreach
    • Realtors, Builders, Low income, Housing Providers, Homeowners & Home Inspectors.

City of Lacey

• Approved- Resolution 1143-Lacey fee schedules as it relates to services provided by the Community & Economic Development Department. The proposed ordinance is to simplify the fee schedule and to clean up a series of unrelated issues including staff turnover and software limitations that caused some deviations from the fee schedule as adopted by the Council back in 2018. The proposed schedule is not intended to raise fees.
  • Construction Fees
  • Electrical Fees
  • Land Use Permit Fees