Committee hears supporters say land banks could speed affordable housing development
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
HB 1974 would permit public housing authorities, public corporations, and nonprofits to serve as land banks with tax exemptions and a 50% affordability requirement for dispositions over 30 years. Supporters, including Spokane Land Bank and developers, said the tool reduces acquisition costs and accelerates projects; fiscal note pending.
House Bill 1974 proposes creating land banking authorities that public housing authorities, public corporations, or nonprofit organizations could operate to acquire, hold, improve and transfer land for redevelopment with an emphasis on affordable housing. The bill requires at least 50% of land sold or leased by a land bank to include affordability covenants lasting at least 30 years, grants property tax and leasehold excise tax exemptions for land owned by qualifying land banks, exempts certain transactions from real estate excise tax, and calls for a JLARC performance review while exempting new tax preferences from the 10‑year automatic expiration requirement.
Sponsor Representative Natasha Hill described the bill as informed by Spokane stakeholders and the Spokane Regional Land Bank’s experience. Hill said authorizing nonprofits as land banks and extending REIT exemptions helps reduce acquisition and transaction costs and allows land to be held and prepared for affordable rental and homeownership projects.
Remote and in-person testimony from practitioners underlined operational benefits. Amy Manning, executive director of the Spokane Land Bank, said the tools would let her organization clear titles, tackle liens, undertake predevelopment activities and prioritize tax‑foreclosed properties to lower project land costs. Crosby Carter of 1Drop highlighted benefits for BIPOC and underrepresented developers by providing acquisition certainty and a clearer path to construction. Matt Hoffman (planner) cited research showing the limited number of counties where median buyers can afford a median home, arguing land banks can reduce the upfront cost barrier that represents a large share of project budgets.
Committee members asked about the distinction between land banks and land trusts and whether permanent public ownership should be a priority; witnesses said land banks and land trusts can complement one another and that longer covenants can complicate financing. No fiscal note was available in the staff briefing version; supporters said they worked to refine language to balance accountability and development feasibility.
The committee closed the public hearing on HB 1974 with proponents urging further work on design details.