A law passed earlier this year by the Washington State Legislature allows developers to defer sales and use taxes if they convert existing structures, including office buildings, into affordable housing.
The law passed almost unanimously in the legislature. The state’s Department of Revenue has said that it expects to have preliminary guidance for local jurisdictions in August. Cities could launch a tax deferment program for conversions after that.
Cities and towns will be able to issue their own resolutions for sales and use tax deferrals, but they will have to follow the guidance from the Department of Revenue. To receive a deferral, a project must consist of multifamily housing units with at least 10% considered affordable, and a project must be located on what the city considers underutilized commercial property.
If a project retains those qualifications for at least 10 years, owners would not have to repay sales and use taxes. City councils in Seattle and Spokane have already indicated support for the new law.
Related Stories
Adaptive Reuse | Apr 15, 2021
The Weekly Show, Apr 15, 2021: The ins and outs of adaptive reuse, and sensors for real-time construction monitoring
This week on The Weekly show, BD+C editors speak with AEC industry leaders from PBDW Architects and Wohlsen Construction about what makes adaptive reuse projects successful, and sensors for real-time monitoring of concrete construction.
Adaptive Reuse | Feb 24, 2021
Adaptive reuse project brings co-living space to Los Angeles’s Hancock Park
Lorcan O’Herlihy Architects is designing the project.
Adaptive Reuse | Feb 14, 2021
Three adaptive reuse projects will add housing in Wisconsin
Historic tax credits helped pave the way, but preservation required creative solutions.
Multifamily Housing | Jan 20, 2021
Abandoned Miami hospital gets third life as waterfront condo development
The 1920s King Cole Hotel becomes the Ritz-Carlton Residences Miami in the largest residential adaptive reuse project in South Florida.
Adaptive Reuse | Dec 17, 2020
A train engine repair building is turned into an innovation center that’s part of a massive riverfront redevelopment in Pittsburgh
The adaptive reuse of the Roundhouse is the latest step forward for Hazelwood Green.
Adaptive Reuse | Oct 26, 2020
Mall property redevelopments could result in dramatic property value drops
Retail conversions to fulfillment centers, apartments, schools, or medical offices could cut values 60% to 90%.
Adaptive Reuse | Oct 22, 2020
A Los Angeles design firm reimagines urban workplaces, multifamily buildings, and warehouses
Omgivning conjures varieties of adaptive-reuse concepts.
Adaptive Reuse | Jul 29, 2020
Two Indianapolis schools find new digs in a long-dormant factory
Adaptive reuse preserved many of the building’s original features.
Coronavirus | May 18, 2020
Will empty hotels provide an answer for affordable housing shortage?
A Los Angeles-based startup sees the Midwest as most fertile for adaptive reuse.
Adaptive Reuse | Feb 25, 2020
Hastings Architecture creates its new HQ from a former Nashville Public Library building
The building was originally constructed in 1965.
