A Breakdown of RHAWA 2023 Legislative Priorities

idea and full control on sites where an eviction has occurred. HB 1389 actually required the department to calculate the annual increase percentage. The utilities and transportation commission (UTC) does not appear to have that function under SB 5697. Further, HB 1389 provided some illusory rights to recoup capital invested in the property over the preceding 12-month period, but SB 5697 does not allow any such recovery (or pretend to allow it as in HB 1389). We are strongly opposing this bill.

We have been working on Housing Gap Vouchers for most of this legislative session and just this week we introduced that bill in the House and Senate (Senate version awaiting bill number now). The House bill HB 1817 is scheduled for a hearing in the House Housing Committee on February 14 at 4pm and we will be out in force and need YOU to show our support for this important bill.

Our Housing Gap Vouchers would create rental assistance vouchers in partnership with the public housing authorities for residents to bridge the gap between their income and their rent, especially helping with rent increases. The bill makes available rental assistance for seniors, low-income families, and members of marginalized communities living in manufactured housing or rental housing in Washington. These vouchers are targeted to 80% AMI and below, adjusted by family size and area and the voucher is good for up to 12 months and allows residents in need to reapply. The voucher amounts are enough to bridge the gap but not paying all of the resident’s monthly rent.

This is a critical priority for us as we need to help lawmakers understand that rents have increased because of many factors and that rent control is not the answer; the answer is providing targeted assistance to those low-income families and seniors who need the assistance.

HB 1628 – Highest State REET Tax in America on Properties Over $5 Million

HB 1628 would create a new tier in the state graduated REET Tax that would be the highest REET Tax in America on sales over $5 million. The REET Tax would be 4% of the selling price that is greater than $5 million, beginning January 1, 2025. The REET Tax shall be split as follows: (1) 30% to the Washington housing trust fund created in RCW 43.185.030; (2) 30% to the apple health and homes account created in RCW 43.330.184; (3) 15% to the developmental disabilities trust ac- count created in the bill; and (4) 24% to the affordable housing for all account created in RCW 43.185C.190 for operations, maintenance, and service cost for permanent supportive housing as defined in RCW 17 36.70A.030.

Unfortunately, WA is becoming less desirable and less competitive for real estate investment. There are 15 states that do not charge real estate excise or transfer taxes at all. In addition, WA is one of 23 states that also allow a local option real estate excise or transfer tax on top of that. The higher our WA fees, the more likely to drive investment to other states. Multifamily housing and Commercial real estate have taken a lot of financial hits during the pandemic and are still working to recover, the idea of enacting the nation’s highest REET tax would not allow that recovery. With many companies still not back to work in the office, adding this extreme REET tax to commercial properties will only exacerbate that problem. We know that higher taxes and increased administrative burden have proven to consistently drive real estate investment out of the market and likely increase rental prices. Additionally, increased REET Taxes will discourage housing investment and development in Washington State, increasing rents, and worsening our housing crisis. Costs are already increasing for small housing providers; this will create even more burden on these small businesses and will lead to less housing in WA State. We are part of a coalition adamantly opposing this legislation.

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