For the Reporter

The Puget Sound region faces a housing affordability and homelessness crisis, caused by increasing population and skyrocketing rental rates that have priced out middle- and low-income working families.

The state Senate on Tuesday approved legislation – sponsored by Sen. Joe Fain, R-Auburn – to ease the crisis by creating a preservation-tax exemption, which stems from the City of Seattle’s Housing Affordability and Livability Agenda

“Addressing housing issues in our region requires a variety of tools to keep working families in their homes,” said Fain, who serves as the Senate majority floor leader. “By engaging private-sector landlords as a key partner we can protect and maximize the use of existing housing. This isn’t only an urban issue, but spreads throughout the surrounding region, including South King County. It’s important to provide affordable housing without reducing supply over time. New construction is underway but for the most part doesn’t address the needs of low-income people and takes time to build.”

The legislation allow cities to enact a local-option property tax exemption for existing rental units in order to preserve lower rent and prevent the displacement of long-time tenants, even as landlords seek to make building improvements.

“The Preservation Tax Exemption is an important tool, not only for Seattle, but for communities across the state trying to address rapidly rising rents,” said Seattle Mayor Ed Murray. “Thank you to Sen. Fain and Sen. (David) Frockt for your leadership and to all senators who support this effort. I urge the House of Representatives to pass the bill quickly to help ensure low-income residents throughout Washington have the opportunity to live in affordable homes. “

Under the preservation tax-exemption bill, cities could allow rental-property owners to apply for a 15-year exemption from local property taxes. In exchange landlords must reserve 25 percent of their units for low-income families earning less than 50 percent of the area median income. In higher-cost areas, cities could raise the income restriction to 60 percent of the income standard.

“We are excited for what the potential of Senate Bill 6239 holds in store for cities looking to provide affordable housing for their residents,” said Auburn Mayor Nancy Backus. “Some call this a Seattle-centric bill, but I call it people-centric. I am thankful for Sen. Fain’s leadership on this issue.”

All apartments enrolled in the exemption would be inspected and required to meet minimum standards for physical condition.

In King County, 50 percent of the area median income is $36,000 for two-person household and 60 percent of AMI is $43,000.

The legislation was approved by a 36-13 margin and now heads to the House of Representatives for its consideration.