WA HB2527

Private developers receiving federal low-income housing tax credits for eventual tenant ownership programs must establish required reserve/escrow accounts, inform tenants of their ownership rights, notify nonprofit/municipal/tribal partners of requirements, and ensure timely transfer of home ownership to tenants.

The Washington State Housing Finance Commission must investigate complaints, IRS findings, or state auditor findings of violations within a reasonable time and act on findings within six months.

Developers found in violation may be barred from receiving additional low-income housing tax credits for 1-5 years; willful violations result in a 2-5 year ban from all commission-funded programs.

The commission must annually monitor all eventual tenant ownership and rent-to-own development agreements and publish progress reports on its website.

Provisions apply retroactively to violations occurring up to five years before the effective date, and developers may appeal findings to the Office of Administrative Hearings under the Administrative Procedures Act.