Senator pushes tax‑incentive changes to spur affordable housing, cites Nova Hillyard support
January 23, 2026 | Spokane County, Washington
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State Sen. Marcus Raccelli discussed a package of housing measures during Spokane County Spotlight, saying lawmakers need new tools to bring housing online.
Raccelli described an update to an existing tax incentive that, in his draft, reduces the percentage threshold for units qualifying as "affordable" (he said the eligible threshold would move from 50% toward 25% of units at 120% area median income in initial language) so projects better "pencil out" for developers. He also said the bill would make underutilized land eligible for the incentive to unlock vacant or underused parcels.
Raccelli called the Nova Hillyard project — an affordable housing complex with childcare proposed by the Northeast Public Development Authority on city‑donated land near the North‑South Corridor — "amazing," and said legislators from the 3rd, 4th and 6th districts are coordinating to secure funding. He listed Spokane, Vancouver, Tacoma, Kent and Bellevue as communities lining up around the proposal.
Both Waldrep and Raccelli emphasized that permitting and administrative interpretation by the Department of Commerce have sometimes blocked projects, and Raccelli said his bill also aims to clean up implementation language so incentives produce housing rather than paperwork.
No votes or formal enactments occurred on the broadcast; Raccelli described bills pending committee consideration.
Raccelli described an update to an existing tax incentive that, in his draft, reduces the percentage threshold for units qualifying as "affordable" (he said the eligible threshold would move from 50% toward 25% of units at 120% area median income in initial language) so projects better "pencil out" for developers. He also said the bill would make underutilized land eligible for the incentive to unlock vacant or underused parcels.
Raccelli called the Nova Hillyard project — an affordable housing complex with childcare proposed by the Northeast Public Development Authority on city‑donated land near the North‑South Corridor — "amazing," and said legislators from the 3rd, 4th and 6th districts are coordinating to secure funding. He listed Spokane, Vancouver, Tacoma, Kent and Bellevue as communities lining up around the proposal.
Both Waldrep and Raccelli emphasized that permitting and administrative interpretation by the Department of Commerce have sometimes blocked projects, and Raccelli said his bill also aims to clean up implementation language so incentives produce housing rather than paperwork.
No votes or formal enactments occurred on the broadcast; Raccelli described bills pending committee consideration.
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