WA HB1717

Cities and counties may establish a sales and use tax remittance program for affordable housing developments where at least 50% of residential units are dedicated to low-income households for a minimum of 40 years

Eligible organizations (nonprofit and for-profit developers, housing authorities) can receive remittance of 50% of state and local sales/use taxes paid on qualifying project construction materials and labor

The remaining 50% of state sales/use taxes is distributed to the city or county, which must use funds for affordable housing acquisition, construction, rehabilitation, or behavioral health services

Low-income household threshold is set at 80% of area median income for non-rural counties and 100% for rural counties, with housing costs capped at 30% of income for renters and 38% for homeowners

Program takes effect January 1, 2026, applies to projects receiving certificates of completion by December 31, 2035, and requires annual compliance reporting for 40 years