WA SB5884

Expands eligibility for Washington's sales and use tax deferral program from cities with populations of 135,000-250,000 to cities with populations of 135,000-275,000, and increases the minimum building size from 2 to 4 dwelling units

Broadens the definition of "underdeveloped property" to include vacant, partially used, or underutilized land (including surface parking lots) identified as suitable for affordable housing development under RCW 36.70A.115

Allows cities to designate "residential target areas" within urban centers where projects may qualify with only 20% affordable units (rather than 50%) if the area already has adequate affordable housing

Establishes a graduated repayment schedule for deferred taxes if projects lose eligibility, ranging from 100% repayment in year 1 down to 10% in year 10, with interest but no penalties assessed

Permits cities to require prevailing wage, apprenticeship utilization, and minority/women's business contracting inclusion plans as conditions for receiving the tax deferral