FINAL BILL REPORT

                  ESB 5843

                          C 131 L 99

                      Synopsis as Enacted

Brief Description:  Concerning the housing finance commission.

Sponsors:  Senators Prentice and Winsley.

Senate Committee on Commerce, Trade, Housing & Financial Institutions

House Committee on Economic Development, Housing & Trade

House Committee on Capital Budget

Background:  The Washington State Housing Finance Commission was created in 1983.  The commission provides housing for low- and moderate-income households through several programs including the issuance of private activity tax-free bonds, nonprofit tax-free bonds, and taxable bonds.

When the commission was created, the initial legislation required the creation of a general plan of housing finance objectives and the adoption of certain rules of procedure.  The plan must be updated periodically.

The commission=s statutory debt limit will be reached sometime this calendar year.  If the limit is not raised, the commission can then only issue new bonds as existing ones are paid off.  The debt of the commission is not an obligation of the state.

Summary:  Several out-of-date references with respect to planning and rule-making are removed.

The commission=s debt limit is raised from $2 billion to $3 billion.

Votes on Final Passage:

Senate 46 0

House     92 3

Effective:  July 25, 1999