BP BHEAD INT H

AN ACT Relating to housing policies and program coordination; amending RCW 43.185.110 and 43.185A.020; adding new sections to chapter 43.63A RCW; and adding a new chapter to Title 43 RCW.

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

NEW SECTION. Sec. 1. (1) The legislature finds that:

(a) Housing is of vital state-wide importance to the health, safety, and welfare of the residents of the state;

(b) Decent housing is an essential motivating force in helping people achieve self-sufficiency;

(c) A healthy housing market is one in which residents of this state have a choice of housing opportunities and one in which the housing consumer may effectively choose within the free market;

(d) A healthy housing market is fundamentally related to a healthy state economy and can contribute significantly to the employment factor in Washington;

(e) Housing is an integral component of any comprehensive community and economic development strategy;

(f) Restrictive, obsolete, conflicting, duplicating, and unnecessary regulations and requirements can increase the cost of housing;

(g) State involvement in the provision of affordable housing has increased;

(h) Public and private sector activity in the provision of affordable housing has increased;

(i) The lack of a coherent state housing policy has hindered the effective delivery of housing and supportive services to very low-income and low-income households, and special needs populations;

(j) The state has a vital interest in ensuring that resources for housing exist; and

(k) It is in the public interest to adopt a statement of housing policy objectives.

(2) The legislature declares that the purposes of the Washington housing policy act are to:

(a) Provide policy direction to the public and private sector in their attempts to meet the shelter needs of Washington residents;

(b) Reevaluate housing-related activities affected by legislation in order to ensure proper coordination of those activities to meet the shelter needs of Washington residents;

(c) Expand and improve the delivery of state services and assistance to very low-income and low-income households and special needs populations;

(d) Strengthen partnerships among all levels of government, and the public and private sector, including for-profit and nonprofit organizations, in the production, operation, and equitable distribution of housing that is affordable to very low-income, low-income, and moderate-income households, and special needs populations;

(e) Increase the supply of housing with necessary supportive services needed to enable persons with special needs to live with dignity and independence;

(f) Lower the regulatory cost of housing through research and the development of regulatory barrier removal strategies at the state and local level;

(g) Preserve the existing housing stock through weatherization and rehabilitation, activities;

(h) Encourage the development of innovative pilot programs to meet the unique housing needs of local jurisdictions;

(i) Help maintain a healthy and stable mortgage financing environment so that the housing market can effectively meet rental and home ownership demand; and

(j) Coordinate housing into comprehensive community and economic development strategies at the state and local level.

NEW SECTION. Sec. 2. It is the goal of the state of Washington to coordinate, encourage, and direct, when necessary, the efforts of the public and private sectors of the state and to cooperate and participate, when necessary, in the attainment of a decent home in a healthy and safe environment for every resident of the state. The legislature declares that attainment of that goal is a state priority.

NEW SECTION. Sec. 3. The objectives of the Washington housing policy act shall be to attain the state's goal of a decent home in a suitable environment for every resident of the state by strengthening public and private institutions that are able to:

(1) Develop an adequate and affordable supply of housing for all economic segments of the population;

(2) Assist very low-income, low-income, and special needs households that cannot obtain affordable, suitable, and adequate shelter in the private market;

(3) Encourage and support home ownership opportunities;

(4) Reduce life cycle housing costs while preserving public health and safety;

(5) Preserve the supply of existing affordable housing;

(6) Provide housing and necessary supportive services for special needs populations;

(7) Ensure fair and equal access to the housing market;

(8) Increase the availability of mortgage credit at affordable interest rates; and

(9) Coordinate and be consistent with the goals and objectives of the state's growth management act.

NEW SECTION. Sec. 4. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Affordable housing" means residential housing that is rented or owned by a person who qualifies as an extremely low-income, very low-income, low-income, moderate-income, or middle-income household, and special needs populations, and whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income.

(2) "Nonprofit organization" means any public or private nonprofit organization that: (a) Is organized under federal, state, or local laws; (b) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (c) has among its purposes significant activities related to the provision of decent housing that is affordable to extremely low-income, very low-income, low-income, or moderate-income households, and special needs populations.

(3) "Tenant-based organization" means a nonprofit organization whose governing body includes a majority of members who reside in the housing development and are considered low-income households.

(4) "Extremely low-income household" means a single person, family, or unrelated persons living together whose income is at or below thirty percent of the median income, adjusted for household size, for the county where the housing is located.

(5) "Very low-income household" means a single person, family, or unrelated persons living together whose income is more than thirty percent but is at or below fifty percent of the median income, adjusted for household size, for the county where the housing is located.

(6) "Low-income household" means a single person, family, or unrelated persons living together whose income is more than fifty percent but is at or below eighty percent of the median income, adjusted for household size, for the county where the housing is located.

(7) "Moderate-income household" means a single person, family, or unrelated persons living together whose income is more than eighty percent but is at or below ninety-five percent of the median income, adjusted for household size, for the county where the housing is located.

(8) "Middle-income household" means a single person, family, or unrelated persons living together whose income is more than ninety-five percent but is at or below one hundred twenty percent of the median income, adjusted for household size, for the county where the housing is located.

NEW SECTION. Sec. 5. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall establish the affordable housing advisory board to consist of twenty-one members.

(a) The following eighteen members shall be appointed by the governor:

(i) One representative of the residential homebuilding industry;

(ii) One representative of the home mortgage lending profession;

(iii) One representative of the real estate sales profession;

(iv) One representative of the apartment development industry;

(v) One representative of the apartment management and operation industry;

(vi) One representative of the nonprofit housing development industry;

(vii) One representative of the for-profit housing development industry;

(viii) Two representatives of very low-income and low-income persons;

(ix) One representative of special needs populations;

(x) One representative of a public housing authority as created under chapter 35.82 RCW;

(xi) Two representatives of the Washington association of counties, one representative shall be from a county that is located east of the crest of the Cascade mountains;

(xii) Two representatives of the association of Washington cities, one representative shall be from a city or town that is located east of the crest of the Cascade mountains;

(xiii) One representative to serve as chair of the affordable housing advisory board;

(xiv) Two representatives at large;

(b) The following three members shall serve as ex officio, nonvoting members:

(i) The director of community development or the director's designee;

(ii) The executive director of the Washington state housing finance commission or the executive director's designee; and

(iii) The secretary of social and health services or the secretary's designee.

(2) The members of the affordable housing advisory board appointed by the governor shall be appointed for four-year terms, except that the chair shall be appointed to serve a two-year term. The terms of five of the initial appointees shall be for two years from the date of appointment and the terms of six of the initial appointees shall be for three years from the date of appointment. The governor shall designate the appointees who will serve the two-year and three-year terms. The members of the advisory board shall serve without compensation, but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(3) The affordable housing advisory board shall serve as the department's principal advisory body on housing and housing-related issues, and replaces the department's existing boards and task forces on housing and housing-related issues.

(4) The affordable housing advisory board shall meet regularly and may create subcommittees as needed to deal with specific issues and concerns.

(5) The department, in conjunction with the Washington state housing finance commission and the department of social and health services, shall supply such information and assistance as are deemed necessary for the advisory board to carry out its duties under this section.

(6) The department shall provide administrative and clerical assistance to the affordable housing advisory board.

NEW SECTION. Sec. 6. A new section is added to chapter 43.63A RCW to read as follows:

The affordable housing advisory board shall:

(1) Analyze those solutions and programs that could begin to address the state's need for affordable housing for extremely low-income, very low-income, low-income, moderate-income, and middle-income households, as defined in section 4 of this act, and special needs populations, including, but not limited to programs or proposals which provide for:

(a) Financing for the acquisition, rehabilitation, preservation, or construction of housing;

(b) Use of publicly owned lands and buildings as sites for affordable housing as defined in section 4 of this act;

(c) Coordination of state initiatives with federal initiatives and financing programs that are referenced in the Cranston-Gonzales national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended, and development of an approved housing strategy as required in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended;

(d) Streamlining, where appropriate and not detrimental to the public health, safety, and welfare, of the various state and local regulations, and building codes governing the housing industry;

(e) Stimulating public and private sector cooperation in the development of affordable housing as defined in section 4 of this act; and

(f) Development of solutions and programs affecting housing, including the equitable geographic distribution of housing for all economic segments, as the advisory board deems necessary;

(2) Consider both homeownership and rental housing as viable options for the provision of housing. The advisory board shall give consideration to various types of residential construction and innovative housing options, including but not limited to manufactured housing;

(3) Review, evaluate, and make recommendations regarding existing and proposed housing programs and initiatives including but not limited to tax policies, land use policies, and financing programs. The advisory board shall provide recommendations to the director of community development, along with the department's response in the annual housing report to the legislature required in section 7 of this act; and

(4) Prepare and submit to the director, by each December 1st, beginning December 1, 1993, a report detailing its findings and make specific program, legislative, and funding recommendations and any other recommendations it deems appropriate.

NEW SECTION. Sec. 7. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall, in consultation with the affordable housing advisory board created in section 5 of this act, prepare and from time to time amend a five-year housing advisory plan. The purpose of the plan is to document the need for affordable housing in the state and the extent to which that need is being met through public and private sector programs, to facilitate planning to meet the affordable housing needs of the state, and to enable the development of sound strategies and programs for affordable housing. The information in the five-year housing advisory plan must include:

(a) An assessment of the state's housing market trends;

(b) An assessment of the housing needs of extremely low-income, very low-income, low-income, moderate-income, and middle-income households as defined in section 4 of this act, and special needs populations;

(c) An inventory of the supply and geographic distribution of affordable housing units made available through public and private sector programs;

(d) A status report on the degree of progress made by the public and private sector toward meeting the housing needs of the state;

(e) An identification of state and local regulatory barriers to affordable housing and proposed regulatory and administrative techniques designed to remove barriers to the development and placement of affordable housing; and

(f) Specific recommendations, policies, or proposals for meeting the affordable housing needs of the state.

(2)(a) The five-year housing advisory plan required under subsection (1) of this section must be submitted to the legislature on or before February 1, 1994, and subsequent plans must be submitted every five years thereafter.

(b) Each February 1st, beginning February 1, 1995, the department shall submit an annual progress report, to the legislature, detailing the extent to which the state's affordable housing needs were met during the preceding year and recommendations for meeting those needs.

NEW SECTION. Sec. 8. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall be the principal state department responsible for coordinating federal and state resources and activities in housing, except for programs administered by the Washington state housing finance commission under chapter 43.180 RCW, and for evaluating the operations and accomplishments of other state departments and agencies as they affect housing.

(2) The department shall work with local governments, local housing authorities, nonprofit community or neighborhood-based organizations, and regional or state-wide nonprofit housing assistance organizations, for the purpose of coordinating federal and state resources with local resources for housing.

Sec. 9. RCW 43.185.110 and 1991 c 204 s 4 are each amended to read as follows:

The director shall prepare an annual report and shall send copies to the ((~~chair of the house of representatives committee on housing, the chair of the senate committee on commerce and labor, and one copy to the staff of each committee~~)) appropriate committees of the legislature that summarizes the housing trust fund's income, grants and operating expenses, implementation of its program, and any problems arising in the administration thereof. ((The director shall promptly appoint a low-income housing assistance advisory committee composed of a representative from each of the following groups: Apartment owners, realtors, mortgage lending or servicing institutions, private nonprofit housing assistance programs, tenant associations, and public housing assistance programs.)) The affordable housing advisory ((~~group~~)) board established in section 5 of this act shall advise the director on housing needs in this state, including housing needs for persons who are mentally ill or developmentally disabled or youth who are blind or deaf or otherwise disabled, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter. Such advice shall be consistent with policies and plans developed by regional support networks according to chapter 71.24 RCW for the mentally ill and the developmental disabilities planning council for the developmentally disabled.

Sec. 10. RCW 43.185A.020 and 1991 c 356 s 11 are each amended to read as follows:

The affordable housing program is created in the department of community development for the purpose of developing and coordinating public and private resources targeted to meet the affordable housing needs of low-income households in the state of Washington. The program shall be developed and administered by the department with advice and input from the ((~~low-income [housing] assistance advisory committee established in RCW 43.185.110~~)) affordable housing advisory board established in section 5 of this act.

NEW SECTION. Sec. 11. This chapter may be known and cited as the "Washington housing policy act."

NEW SECTION. Sec. 12. Sections 1 through 4 and 11 of this act shall constitute a new chapter in Title 43 RCW.