Island County amends ordinance to clarify HB 1590 housing-tax may fund purchases and rehab of existing homes

On June 3, 2025, the Board of Island County Commissioners adopted Ordinance C28-25, amending Ordinance C90-21 to clarify the intended uses of Island County’s existing 1% sales-and-use tax under state law (RCW 82.14.530).

Emily Wildman, Island County housing program manager, told the board the HB 1590 tax has been in place since March 2022 and “generates approximately $1,100,000 a year for Island County to use on affordable housing.” She said the amendment would add language explicitly allowing the purchase and rehabilitation of existing housing units to be used for affordable housing in addition to new construction.

Wildman said the change responds to lessons learned while deploying the funds: new construction can be costly, while acquisition-and-rehab can bring units into the affordable stock more quickly. “The Goosefoot project…is like $600,000 a unit,” she said, and described an acquisition in Coupeville that she characterized in the hearing transcript as “about $2.25 a unit” (as stated in the public record). The transcript wording for that acquisition figure was unclear; the record reflects the number as spoken by Wildman.

A member of the public, Kate Grundon, asked how the county finds properties for acquisition; Wildman said the county’s affordable-housing development specialist, George Hernandez, cultivates relationships with developers and realtors and monitors the market. Wildman also noted an application for HB 1590 funds is available online and asked interested property owners to contact Human Services for follow-up.

The board then moved to adopt Ordinance C28-25 to amend C90-21 with the clarifying language. The motion was made and seconded; the board voted in favor (“Aye”) and the ordinance passed. The minutes record that the action was adopted at the June 3 meeting; the transcript does not show a roll-call with individual votes by name.

The amended ordinance does not create a new sales tax; the chairperson emphasized the change is a clarification of the existing local tax’s allowable uses. Staff provided a phone number for follow-up: Island County Human Services at (360) 679-7354 for requests such as contacting the affordable-housing development specialist.

What changed: the ordinance insertion clarifies that HB 1590 funds may be used for acquisition and rehabilitation of existing housing units so they may be leased or sold at affordable rates, in addition to construction of new affordable units. Island County staff framed the amendment as expanding practical options for using limited local funds to increase affordable housing inventory more cost-effectively.

Next steps: the county will continue to accept applications for HB 1590 funds under the clarified ordinance and said staff will follow up with property owners and developers who contact Human Services.