H-3864.1          _______________________________________________

 

                                  HOUSE BILL 2486

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Representatives Leonard, Mitchell, Nelson, Ogden, Franklin, Winsley and Wineberry

 

Read first time 01/17/92.  Referred to Committee on Housing.Defining further nonprofit facilities eligible for financing by the Washington state housing commission.


     AN ACT Relating to the Washington housing finance commission; and amending RCW 43.180.300.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     Sec. 1.  RCW 43.180.300 and 1990 c 167 s 2 are each amended to read as follows:

     As used in RCW 43.180.310 through 43.180.360, the following terms have the meanings indicated unless the context clearly requires otherwise.

     (1) "Construction" or "construct" means construction and acquisition, whether by device, purchase, gift, lease, or otherwise.

     (2) "Facilities" means land, rights in land, buildings, structures, equipment, landscaping, utilities, approaches, roadways and parking, handling and storage areas, and similar ancillary facilities.

     (3) "Financing document" means a lease, sublease, installment sale agreement, conditional sale agreement, loan agreement, mortgage, deed of trust guaranty agreement, or other agreement for the purpose of providing funds to pay or secure debt service on revenue bonds.

     (4) "Improvement" means reconstruction, remodeling, rehabilitation, extension, and enlargement.  "To improve" means to reconstruct, to remodel, to rehabilitate, to extend, and to enlarge.

     (5) "Nonprofit corporation" means a nonprofit corporation described under section 501(c)(3) of the Internal Revenue Code, or similar successor provisions.

     (6) "Nonprofit facilities" means facilities owned or used by a nonprofit corporation for any nonprofit activity described under section 501(c)(3) of the Internal Revenue Code that qualifies such a corporation for an exemption from federal income taxes under section 501(a) of the Internal Revenue Code, or similar successor provisions provided that facilities which may be funded pursuant to chapter 28B.07, 35.82, 43.180, or 70.37 RCW shall not be included in this definition.  This definition includes facilities:  (a) The primary purpose of which will not be to provide twenty-four hour a day care by licensed physicians and which will not be operated in connection with a hospital; and (b) that are eligible for financing under chapter 70.37 RCW, but the Washington health care facilities authority, or its successor under chapter 70.37 RCW, determines not to provide financing for the facility.

     (7) "Project costs" means costs of (a) acquisition, construction, and improvement of any facilities included in a nonprofit facility; (b) architectural, engineering, consulting, accounting, and legal costs related directly to the development, financing, and construction of a nonprofit facility, including costs of studies assessing the feasibility of a nonprofit facility; (c) finance costs, including discounts, if any, the costs of issuing revenue bonds, and costs incurred in carrying out any trust agreement; (d) interest during construction and during the six months after estimated completion of construction, and capitalized debt service or repair and replacement or other appropriate reserves; (e) the refunding of any outstanding obligations incurred for any of the costs outlined in this subsection; and (f) other costs incidental to any of the costs listed in this section.

     (8) "Revenue bond" means a taxable or tax-exempt nonrecourse revenue bond, nonrecourse revenue note, or other nonrecourse revenue obligation issued for the purpose of providing financing to a nonprofit corporation on an interim or permanent basis.

     (9) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and may include a party who transfers the right of use and occupancy to another party by lease, sublease, or otherwise.