SENATE BILL REPORT

                  ESB 5843

               As Passed Senate, March 16, 1999

Title:  An act relating to the housing finance commission.

Brief Description:  Concerning the housing finance commission.

Sponsors:  Senators Prentice and Winsley.

Brief History:

Committee Activity:  Commerce, Trade, Housing & Financial Institutions:  3/2/99, 3/2/99 [DP].

Passed Senate, 3/16/99, 46-0.

SENATE COMMITTEE ON COMMERCE, TRADE, HOUSING & FINANCIAL INSTITUTIONS

Majority Report:  Do pass.

  Signed by Senators Prentice, Chair; Shin, Vice Chair; Benton, Gardner, Hale, Heavey, Rasmussen, T. Sheldon, West and Winsley.

Staff:  Dave Cheal (786-7576)

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Summary of Bill:  Several out of date references with respect to planning and rulemaking are removed.

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

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The reporting and planning deadlines in the Housing Finance Commission statute that have long since passed should be removed.

Testimony Against:  None.

Testified:  PRO:  Pam Mead, Housing Finance Commission; Majken Ryherd Keira, Washington Low Income Housing Congress.