Bill would clarify REIT use for regional affordable‑housing collaborations

House Finance heard House Bill 16-94 on Feb. 13, a measure that would clarify and expand how local REIT funds may be used for collaborative regional affordable-housing projects.

Staff described the bill as a focused change: it removes the date restriction on use of REIT 2 revenues for affordable housing and homelessness facilities and expressly allows revenues to fund projects supported through interlocal housing collaborations. The staff noted that a fiscal note was not yet available and that the bill affects only allowable uses of local revenues, not state tax rates.

Supporters included city and county officials and regional housing coalitions. Scott Pingle, Newcastle city manager, testified for ARCH (the East King County regional housing partnership) and said the bill “maintains the intent of the current REIT statute, which permits REIT to fund affordable housing and enhances flexibility by allowing cities to use REIT for interlocal collaborations like ARCH.” Paul Jewell of the Washington State Association of Counties echoed support and noted that removing the January 1, 2026 limitation is appropriate given the ongoing nature of the housing shortage.

Carl Schroeder of the Association of Washington Cities said interlocal coordination ensures public resources are invested in the “best projects across a region,” rather than fragmenting smaller allocations among individual cities. Bill Clark of Washington Realtors said his organization was open to discussions but expressed a preference that REIT funds remain focused on fundamental local infrastructure uses.

The bill was presented as a modest, technical fix to promote regional cooperation in affordable housing funding; the committee recorded no votes in the hearing.