Concerning local tax increment financing.

Removed the requirement that jurisdictions must prove public improvements are necessary for private projects that are already under construction, have active applications, valid permits, or are undergoing environmental review.

Changed the state treasurer's obligation regarding public comments from a mandatory 'must accept and consider' to a permissive 'may receive,' reducing the treasurer's administrative burden.

Replaced the term 'briefings' with 'hearings' and removed the word 'briefings' from parentheses, standardizing the terminology for public meetings.

Updated the document title from 'Second Substitute House Bill' to 'Engrossed Second Substitute House Bill' to indicate the bill's final legislative status.

Added a new section (Sec. 6) that reenacts and amends the tax exemption chapter for affordable housing, introducing new long-term exemption periods and stricter affordability requirements.

Modified the criteria for including areas in a tax increment financing project to require proof that public improvements are necessary for private development, preventing the inclusion of areas that already have necessary infrastructure.

Updated project analysis requirements to mandate that public improvement lists reflect the jurisdiction's capital plans and can only include projects expected to be completed within seven years unless a specific finding is made.

Added new definitions for 'permanently affordable housing' and 'public improvement costs' to clarify what expenses and housing types qualify for tax increment financing.

Introduced new eligibility tiers for tax exemptions based on transit access, inclusionary zoning, and density requirements, with specific provisions for extending exemptions for affordable housing projects.

Added a sunset clause stating that no new tax exemptions under the housing chapter will be available after January 1, 2032, and no extensions after January 1, 2046.

The bill's effective date was changed to June 2, 2026, and the reading date was updated to February 9, 2026.

The bill was transferred from the House Local Government committee to the House Finance committee.

The sunset date for tax increment areas was changed from a fixed 25-year term to the date when the funded obligations are no longer outstanding.

The requirement for a written permit to relocate government facilities was removed, allowing relocation, renovation, or construction without that specific condition.

A new requirement was added stating that property tax exemptions for affordable housing do not apply to tax increment financing areas that were in effect before June 2, 2026.

The definition of 'consumer price index' was updated to specify that it uses the 'most recently published' index rather than a specific regional index.

The list of allowable public improvements was expanded to include broadband and rail service, and the definition of government-owned facility improvements was broadened to include renovation.

The deadline for creating a special tax increment area with a valuation over $200 million was moved from the 2026 fiscal year to a specific date of June 30, 2026.

The process for resolving disputes with impacted taxing districts was updated to change the trigger for negotiations from a 'property tax levy lid lift' to an 'increase in regular property tax levies' and adjusted the timeline for arbitration.

The bill now explicitly states that its provisions do not modify increment areas that were already in place prior to June 2, 2026.