wa-law.org > bill > 2025-26 > HB 2527 > Original Bill
A private developer who is allocated a federal low-income housing tax credit by the commission, and who is participating in a program intended to assist tenants in becoming homeowners, including an eventual tenant ownership program, shall:
Establish a reserve or escrow account required by the commission's rules or agreements or by federal rules;
Inform residents, tenants, or purchasers of their rights and responsibilities to have ownership transferred to them as required by law or agreements;
Inform nonprofit, municipal, or tribal government development partners of rights, responsibilities, and requirements under the terms of federal low-income housing tax credit financed agreements and meet terms and conditions as a private developer or facilitator of housing developments in partnership with such entities; and
Ensure that ownership of homes is transferred to tenants in a timely manner pursuant to the terms of agreements approved by the commission or pursuant to applicable state or federal law.
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The commission shall promptly investigate the following within a reasonable period of time:
Any complaints submitted to the commission alleging violations of subsection (1) of this section;
Any audit or formal finding of the federal internal revenue service indicating violations of subsection (1) of this section; and
Any audit by the state auditor indicating violations of subsection (1) of this section.
The commission shall act on the findings of any audit or complaint within six months of receipt.
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If the commission finds that a developer has violated subsection (1) of this section, the commission may not allocate any additional federal low-income housing tax credits to that developer for a period of one to five years.
If the commission finds that the violation of subsection (1) of this section was willful or purposeful, or if an audit or formal finding by the federal internal revenue service or an audit by the state auditor finds that the violation of subsection (1) of this section was willful or purposeful, the commission shall prohibit the developer from participating in any program funded or administered by the commission for a period of two to five years.
A developer found to have violated subsection (1) of this section may appeal the commission's finding to the office of administrative hearings. Such hearings are subject to chapter 34.05 RCW, the administrative procedures act.
This section applies retroactively to violations of subsection (1) of this section occurring up to five years prior to the effective date of this section.
The commission shall annually monitor the progress of all development agreements using eventual tenant ownership or rent-to-own options and post the results on its website.
The commission shall inform tenants of each approved program or agreement funded through the commission of their opportunity to comment on information provided to them and progress toward home ownership, including how they may comment or file an anonymous complaint.