H-3539.1  _______________________________________________

                          HOUSE BILL 2627

          _______________________________________________

State of Washington      53rd Legislature     1994 Regular Session

By Representatives Quall, Ballard, Valle, Foreman, Shin, Sehlin, Campbell, Johanson, Veloria, Peery, Hansen, G. Cole, Lemmon, Brumsickle, Heavey, Finkbeiner, Dunshee, R. Johnson, Karahalios, Springer, Mastin, Jacobsen, Chappell, R. Meyers, Basich, Patterson, Linville, Grant, Fuhrman, Kremen, Dorn, Ogden, Caver, Scott, Moak, Kessler, Conway, Roland, King, Rayburn, Chandler and J. Kohl

Read first time 01/19/94.  Referred to Committee on Trade, Economic Development & Housing.

Promoting single-family home ownership.

    AN ACT Relating to housing finance; amending RCW 43.33A.080; and adding new sections to chapter 43.180 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 43.180 RCW to read as follows:

    The commission, in cooperation with the department of community, trade, and economic development, and the state investment board, shall develop and implement a housing finance program that:

    (1) Provides subsidized or unsubsidized mortgage financing for single-family home ownership, including condominiums, located in the state of Washington;

    (2) Utilizes the resources of the state investment board to purchase mortgage-backed securities that are offered by the federal national mortgage association or the federal home loan mortgage corporation and/or collateralized by loans made within the state of Washington; and

    (3) Provides flexible loan underwriting guidelines, including but not limited to provisions that will allow reduced downpayment requirements for the purchaser.

NEW SECTION. Sec. 2.  A new section is added to chapter 43.180 RCW to read as follows:

    The housing finance program developed under section 1 of this act shall:

    (1) Be limited to borrowers with incomes that do not exceed one hundred fifteen percent of the median family income, adjusted for family size, for the county where the property is located;

    (2) Be targeted so that priority is given to active participants of the state retirement systems managed by the department of retirement systems under chapter 41.50 RCW, and low-income households as defined in RCW 43.185.010; and

    (3) Provide downpayment or closing costs assistance to eligible low-income households as defined in RCW 43.185A.010.

    Sec. 3.  RCW 43.33A.080 and 1987 c 29 s 2 are each amended to read as follows:

    The state investment board may invest those funds which are not under constitutional prohibition in:  (1) Farm ownership and soil and water conservation loans fully guaranteed as to principal and interest under the Bankhead-Jones farm tenant act administered by the United States department of agriculture; ((and)) (2) single home ownership loans fully backed by mortgage-backed securities and made under sections 1 and 2 of this act; and (3) the Washington land bank established by chapter 31.30 RCW.

NEW SECTION. Sec. 4.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

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