Wash. Rev. Code § 43.185A § 43.185A.060
Protection of state interest.
Operative Text
The department shall adopt policies to ensure that the state's interest will be protected upon either the sale or change of use of projects financed in whole or in part under RCW 43.185A.140 (4). These policies may include, but are not limited to: (1) Requiring payment to the state of a share of the appreciation in the project in proportion to the state's contribution to the project; (2) requiring a lump-sum repayment of the loan or grant upon the sale or change of use of the project; or (3) requiring a deferred payment of principal or principal and interest on loans after a specified time period. The policies must require projects to remain as affordable housing for a minimum of 40 years except for projects that provide homes for low-income first-time homebuyers, which must remain affordable for a minimum of 25 years.
Under Wash. Rev. Code § 43.185A.005 et seq. § 43.185A.060, Washington State's Department of Commerce is directed to adopt policies that protect the public's financial stake in housing projects that received state financing. When such a project is sold or its use changes, the state may recoup its investment through mechanisms such as a share of appreciation, a lump-sum loan repayment, or deferred principal payments. Critically, the provision mandates that most state-financed projects remain affordable housing for at least 40 years, while projects serving low-income first-time homebuyers must remain affordable for a minimum of 25 years.
Plain English — not legal advice.
Operators and developers of housing projects that received state financing under the programs referenced in Wash. Rev. Code § 43.185A.005 et seq. § 43.185A.060 should be aware that the Department of Commerce's policies govern what happens when a project is sold or its use changes. Compliant operators typically maintain detailed records of the state's proportional contribution and honor the long-term affordability covenants—generally 40 years, or 25 years for first-time homebuyer projects—attached to their financing agreements. Any planned sale or change of use generally triggers a review of repayment or recapture obligations established under those departmental policies.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Wash. Rev. Code § 43.185A.005 et seq. § 43.185A.060 establishes that housing projects built with state funds must remain affordable for extended periods—typically 40 years, or 25 years if the project serves low-income first-time homebuyers. Tenants living in state-financed affordable housing may have protections rooted in these long-term affordability requirements if a landlord attempts to sell or convert the property. Those who believe a project's affordability status is being improperly changed can explore options such as contacting a local tenant-rights organization or inquiring with the Washington State Department of Commerce about the applicable policies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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