Take Advantage of Revenue for Affordable Housing

In 2019 the Legislature approved (HB 1406) a local revenue sharing program for local governments by providing up to a 0.0146% local sales and use tax credited against the state sales tax for housing investments, available in increments of 0.0073%, depending on the imposition of other local taxes and whether cities within your county also take advantage.

The tax credit is in place for up to 20 years and can be used for acquiring, rehabilitating, or constructing affordable housing; operations and maintenance of new affordable or supportive housing facilities; and, for smaller counties, rental assistance. The funding must be spent on projects that serve persons whose income is at or below sixty percent of the area median income. Counties can also issue bonds to finance the authorized projects.

This local sales tax authority is a credit against the state sales tax, so it does not increase the sales tax for the consumer. There are tight timelines that must be met to access this funding source – the first is January 31, 2020 to pass a resolution of intent. The tax ordinance must then be adopted by July 27, 2020 to qualify for a credit.

There are fast approaching timelines that must be met to access this funding source.  You must pass a resolution of intent by January 1, 2020. A tax ordinance must then be adopted by July 27, 2020.

Don’t miss out on learning about and taking advantage of this very important revenue being made available to counties for affordable housing. Join us for a webinar at 1:00 p.m. on August 20, 2019 that will explore options and considerations for the use of these revenues, how to access these revenues, and deadlines you need to keep in mind. Follow this link to register.

Resources

We are continuing to collect resources on this topic and will update as they come in.

1406 - Revenue for Affordable Housing

Get the facts! Download the information sheet on HB 1406 and how to get revenue for affordable housing.

Download this guide that walks you through the steps for getting revenue for affordable housing in your community.

The Washington Low Income Housing Alliance has several resources on their page including a webinar recording, the PowerPoint slidesThey also have a sample resolution ordinance of intent to implement 1406 by the Pacifica Law Group, and an excel sheet that counties are estimated to take in based on 2018.

There are also more resources on the MRSC Insight page and how to implement HB 1406 on the Association of Washington Cities website.

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Juliana Roe comes to WSAC with almost a decade of experience working as non-partisan staff in the Washington State Senate. She has a strong legal background and knowledge of our court system as she served as a law clerk for Chief Justice Alexander for the Washington State Supreme Court, as well as a Deputy Prosecuting Attorney for the Pierce County Prosecutor’s Office. Juliana received her Juris Doctorate from Seattle University School of Law, and her Bachelor of Arts from the University of Washington. She represents WSAC on issues relating to public safety, law and justice, and human services.
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