Housing Washington prepares to roll out tax break for office-to-housing conversions

[Yo_Mama_Been_Loggin]

Cities in Washington are eager to see underused office buildings converted to housing.

A new state tax break could help. The Legislature approved a law this year to allow developers to defer sales and use taxes if they convert existing structures, like office buildings, into affordable housing.

The Department of Revenue last week continued the process of finalizing the rules for how that incentive would work. It said it anticipates having preliminary guidance in August. Cities could start implementing the program after that.

“We support rapid completion of the rulemaking process and are prepared to put the provisions of the law to use once it’s fully enacted,” said Andrew Rolwes, vice president of the Downtown Spokane Partnership.

https://washingtonstatestandard.com/2024/07/29/washington-prepares-to-roll-out-tax-break-for-office-to-housing-conversions/

[AnnaLee]

1. I have taken an interest in this.

I am watching to see if cities follow through. A friend from San Francisco was talking a few months ago about a similar vacancy in SF downtown real estate. I suggested a similar solution and he said that, when SF considered conversion to living spaces, they decided it was not realistic because of the problems with changes in utility access that would be necessary (heating, cooling, plumbing, wiring, etc.)

I imagine the structures in WA are probably smaller than many of those in downtown SF so maybe it is more feasible here.

[LisaM]

2. No, there are a lot of large office buildings in Seattle with vacancies.

In the buildings I have worked in, they are all set up for modular walls. Plumbing is definitely an issue (apparently older buildings are better for conversion, a lot of 'newer' buildings were set up for cubicles).