Establishing land banking authorities.

Removed the amendment to RCW 82.45.010 and 2025 c 159 s 1, which previously defined 'sale' for real estate excise tax purposes. This change indicates the bill no longer intends to modify the general definition of a sale for tax purposes.

Removed the amendment to RCW 82.45.010 and 2025 c 159 s 2, which previously defined 'sale' for real estate excise tax purposes. This confirms the bill is no longer altering the state's general real estate excise tax code.

Renumbered sections from 10, 11, 12, 13, 14, and 15 to 10, 11, 12, and 13 respectively to reflect the removal of the two excise tax amendments.

Adjusted the expiration and effective date references in the performance statement and tax preference sections to align with the new section numbering (referencing sections 7 through 9 instead of 7 through 11).

The legislative session changed from the 2025 Regular Session to the 2026 Regular Session, and the bill title was updated from 'House Bill' to 'Substitute House Bill'.

The original bill required counties to levy a local tax dedicated to affordable housing and remove barriers to supportive housing to qualify for state grants.

The required affordability covenant period for housing developed on land bank property was reduced from 99 years to 30 years.

The substitute bill requires land banks to prepare an annual report detailing acquisitions, dispositions, and progress toward equity goals.

The mix of housing required on land bank properties was changed from a specific 33/33 split to a requirement that at least 50% of units maintain affordability for 30 years.

The substitute bill adds a real estate excise tax exemption for sales to and by land bank authorities.

The original bill included a detailed grant program administered by the Housing Finance Commission with specific funding allocations.

The substitute bill clarifies that land banks can be operated by public corporations, public housing authorities, or tax-exempt nonprofits, and explicitly states that tax-exempt entities cannot build housing themselves.

The bill was reorganized to create a new chapter in Title 35 RCW rather than Title 36 RCW, and the structure of sections was significantly altered.

The substitute bill adds specific tax exemptions for land banks in the real estate excise tax chapter (RCW 82.45.010).

Added a requirement that a city or county legislative authority must adopt an ordinance or resolution to authorize the establishment and operation of a land bank.

Clarified that only entities exempt from federal income taxation (nonprofits) may operate as land banks, removing the ability for general public corporations to do so unless they are operated by such a nonprofit.

Expanded the scope to allow land banks to be administered regionally across two or more contiguous counties through interlocal agreements.

Added new definitions for 'land bank' and 'land bank authority' to clarify that these refer to the inventory of property and the authorized entity, respectively.

Updated tax exemption provisions for housing authorities to include land bank authorities and intertribal housing authorities, while adding specific certification requirements to claim these exemptions.

Renumbered sections and adjusted expiration and effective dates to align with the new structure, moving the tax preference performance statement to a new section.