Proposed bill seeks to incentivize developing affordable housing on DNR-owned lands

With the Washington state Department of Commerce predicting the state will need approximately 1.1 million new homes over the next 20 years to keep up with population growth projections and the affordable housing crisis persisting, one Washington lawmaker has proposed legislation that seeks to incentivize developing affordable housing on public lands to help accommodate that growth.
House Bill 2003, proposed by Rep. April Connors, R-Kennewick, aims to encourage the leasing of lands owned by the Washington state Department of Natural Resources (DNR) to develop affordable housing units by creating a tax exemption for those who do so, according to a news release.
The legislation would exempt developers from Washington state’s 12.84% leasehold excise tax for 12 years if they commit to renting or leasing at least 20% of the housing units to low-income and moderate-income households.
Developers could be exempt from this tax for as long as 20 years if they commit to leasing 25% or more of the housing units to low-income and moderate-income households.

DNR owns over 7,000 acres of “transition land” that can’t be logged due to proximity to existing developments, and Connors hopes to help finally utilize this land while also increasing affordable housing.
“Washington has the fewest housing units per household in the nation and nearly half of renters spend a third of their income on rent,” Connors said in the release. “This legislation would help solve a real problem for DNR while, at the same time, make housing more accessible and affordable for everyday Washington families. It’s a win-win.”
HB 2003 is currently in the Washington state House Committee on Finance and is one of three bills Connors has sponsored this session to help address the affordable housing crisis.
For more information on these bills and others, visit https://app.leg.wa.gov/billinfo/ and search by bill number. The 2024 legislative session will end on March 7.