Senate committee hears package of tax deferrals and financing tools aimed at boosting affordable housing

The Washington Senate Ways and Means Committee on Feb. 2 heard a set of bills sponsors and advocates say would make it easier to build affordable and workforce housing by lowering upfront costs and expanding financing options.

Committee staff said Substitute Senate Bill 5,884 would widen an existing sales and use tax deferral — originally limited to vacant surface parking lots in urban centers — to include vacant, partially used or underutilized land suitable for multifamily housing. Under current and proposed rules, qualifying projects generally must reserve at least 50% of units for very low, low and moderate‑income households; the bill would let a city designate areas with reduced affordability requirements where projects could meet a 20% affordability floor. Alia Kennedy, committee staff, said the fiscal note estimates a state revenue reduction of roughly $2.7 million in the current biennium and about $12.5 million in the next biennium if the bill advances.

Developers and city officials described localized benefits. Kitty Klitsky, a Spokane city council member, said the city had…