BILL REQ. #:  H-0645.3 

Read first time 01/26/11.   Referred to Committee on Community Development & Housing.

     AN ACT Relating to requiring recipients of public funds for housing to provide an application preference for qualified disabled veterans; amending RCW 36.70A.540, 36.22.178, 43.185.060, and 43.185A.040; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that disabled veterans are individuals who were willing to risk their lives serving in the armed forces of the United States, and who had the misfortune to suffer injury during their service. Every citizen of the United States benefits from the presence of our military personnel and their willingness to put their country and the lives of others before their own.
     Despite the boundless debt of gratitude owed to them by their fellow countrymen, veterans are over represented amongst the homeless population. More than ninety-nine thousand disabled veterans reside in Washington. The legislature finds that, if a disabled veteran is in need of housing and the taxpayers are providing government subsidized housing, disabled veterans should benefit from the opportunity to reside in such housing.

Sec. 2   RCW 36.70A.540 and 2009 c 80 s 1 are each amended to read as follows:
     (1)(a) Except as provided in subsection (5) of this section, any city or county planning under RCW 36.70A.040 may enact or expand affordable housing incentive programs providing for the development of low-income housing units through development regulations or conditions on rezoning or permit decisions, or both, on one or more of the following types of development: Residential; commercial; industrial; or mixed-use. An affordable housing incentive program may include, but is not limited to, one or more of the following:
     (i) Density bonuses within the urban growth area;
     (ii) Height and bulk bonuses;
     (iii) Fee waivers or exemptions;
     (iv) Parking reductions; or
     (v) Expedited permitting.
     (b) The city or county may enact or expand such programs whether or not the programs may impose a tax, fee, or charge on the development or construction of property.
     (c) If a developer chooses not to participate in an optional affordable housing incentive program adopted and authorized under this section, a city, county, or town may not condition, deny, or delay the issuance of a permit or development approval that is consistent with zoning and development standards on the subject property absent incentive provisions of this program.
     (2) Affordable housing incentive programs enacted or expanded under this section shall comply with the following:
     (a) The incentives or bonuses shall provide for the development of low-income housing units;
     (b) Jurisdictions shall establish standards for low-income renter or owner occupancy housing, including income guidelines consistent with local housing needs, to assist low-income households that cannot afford market-rate housing. Low-income households are defined for renter and owner occupancy program purposes as follows:
     (i) Rental housing units to be developed shall be affordable to and occupied by households with an income of fifty percent or less of the county median family income, adjusted for family size;
     (ii) Owner occupancy housing units shall be affordable to and occupied by households with an income of eighty percent or less of the county median family income, adjusted for family size. The legislative authority of a jurisdiction, after holding a public hearing, may establish lower income levels; and
     (iii) The legislative authority of a jurisdiction, after holding a public hearing, may also establish higher income levels for rental housing or for owner occupancy housing upon finding that higher income levels are needed to address local housing market conditions. The higher income level for rental housing may not exceed eighty percent of the county area median family income. The higher income level for owner occupancy housing may not exceed one hundred percent of the county area median family income. These established higher income levels are considered "low-income" for the purposes of this section;
     (c) The jurisdiction shall establish a maximum rent level or sales price for each low-income housing unit developed under the terms of a program and may adjust these levels or prices based on the average size of the household expected to occupy the unit. For renter-occupied housing units, the total housing costs, including basic utilities as determined by the jurisdiction, may not exceed thirty percent of the income limit for the low-income housing unit;
     (d) Where a developer is utilizing a housing incentive program authorized under this section to develop market rate housing, and is developing low-income housing to satisfy the requirements of the housing incentive program, the low-income housing units shall be provided in a range of sizes comparable to those units that are available to other residents. To the extent practicable, the number of bedrooms in low-income units must be in the same proportion as the number of bedrooms in units within the entire development. The low-income units shall generally be distributed throughout the development and have substantially the same functionality as the other units in the development;
     (e) Low-income housing units developed under an affordable housing incentive program shall be committed to continuing affordability for at least fifty years. A local government, however, may accept payments in lieu of continuing affordability. The program shall include measures to enforce continuing affordability and income standards applicable to low-income units constructed under this section that may include, but are not limited to, covenants, options, or other agreements to be executed and recorded by owners and developers;
     (f) Any government entity providing incentives under subsection (1)(a) of this section must adopt policies and enforcement mechanisms to ensure that at least ten percent of all housing units developed using such incentives are offered to qualified disabled veterans who meet the qualifications of the housing incentive programs. Housing units need not be required to remain empty if there are not sufficient qualified disabled veteran applicants at the time a unit becomes available.
     (g) Programs authorized under subsection (1) of this section may apply to part or all of a jurisdiction and different standards may be applied to different areas within a jurisdiction or to different types of development. Programs authorized under this section may be modified to meet local needs and may include provisions not expressly provided in this section or RCW 82.02.020;
     (((g))) (h) Low-income housing units developed under an affordable housing incentive program are encouraged to be provided within developments for which a bonus or incentive is provided. However, programs may allow units to be provided in a building located in the general area of the development for which a bonus or incentive is provided; and
     (((h))) (i) Affordable housing incentive programs may allow a payment of money or property in lieu of low-income housing units if the jurisdiction determines that the payment achieves a result equal to or better than providing the affordable housing on-site, as long as the payment does not exceed the approximate cost of developing the same number and quality of housing units that would otherwise be developed. Any city or county shall use these funds or property to support the development of low-income housing, including support provided through loans or grants to public or private owners or developers of housing.
     (3) Affordable housing incentive programs enacted or expanded under this section may be applied within the jurisdiction to address the need for increased residential development, consistent with local growth management and housing policies, as follows:
     (a) The jurisdiction shall identify certain land use designations within a geographic area where increased residential development will assist in achieving local growth management and housing policies;
     (b) The jurisdiction shall provide increased residential development capacity through zoning changes, bonus densities, height and bulk increases, parking reductions, or other regulatory changes or other incentives;
     (c) The jurisdiction shall determine that increased residential development capacity or other incentives can be achieved within the identified area, subject to consideration of other regulatory controls on development; and
     (d) The jurisdiction may establish a minimum amount of affordable housing that must be provided by all residential developments being built under the revised regulations, consistent with the requirements of this section.
     (4) For purposes of this section, "qualified disabled veteran" means a person who:
     (a) Meets the definition of "veteran" in RCW 41.04.007;
     (b) Is rated as disabled by the United States department of veterans affairs; and
     (c) Meets the income limitations of this section.
     (5)(a) After January 1, 2012, a jurisdiction may not enact, expand, or apply an affordable housing incentive program unless the jurisdiction has adopted a policy concerning affordable housing for qualified disabled veterans. At a minimum, such policy must provide for a tracking mechanism to monitor compliance with the requirement that an application preference apply for qualified disabled veterans.
     (b) The jurisdiction shall file with the Washington state department of veterans affairs a report of compliance with its policy concerning affordable housing for qualified disabled veterans. The report must be prepared in the form and within the time frame prescribed by the director of the department of veterans affairs. The information in the report must be provided as of the date of the report, and must set forth:
     (i) The jurisdiction's current policy concerning affordable housing for qualified disabled veterans;
     (ii) The number of housing units in the jurisdiction that were developed utilizing the housing incentive program;
     (iii) The number of qualified disabled veterans who applied for housing in the jurisdiction in housing units developed utilizing the housing incentive program; and
     (iv) The number of qualified disabled veterans provided housing in the jurisdiction in housing units developed utilizing the housing incentive program.

Sec. 3   RCW 36.22.178 and 2007 c 427 s 1 are each amended to read as follows:
     The surcharge provided for in this section shall be named the affordable housing for all surcharge.
     (1) Except as provided in subsections (((3))) (4) and (5) of this section, a surcharge of ten dollars per instrument shall be charged by the county auditor for each document recorded, which will be in addition to any other charge authorized by law. The county may retain up to five percent of these funds collected solely for the collection, administration, and local distribution of these funds. Of the remaining funds, forty percent of the revenue generated through this surcharge will be transmitted monthly to the state treasurer who will deposit the funds into the affordable housing for all account created in RCW 43.185C.190. The department of ((community, trade, and economic development)) commerce must use these funds to provide housing and shelter for extremely low-income households, including but not limited to grants for building operation and maintenance costs of housing projects or units within housing projects that are affordable to extremely low-income households with incomes at or below thirty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses.
     (2) All of the remaining funds generated by this surcharge will be retained by the county and be deposited into a fund that must be used by the county and its cities and towns for eligible housing activities as described in this subsection that serve very low-income households with incomes at or below fifty percent of the area median income. The portion of the surcharge retained by a county shall be allocated to eligible housing activities that serve extremely low and very low-income households in the county and the cities within a county according to an interlocal agreement between the county and the cities within the county consistent with countywide and local housing needs and policies. A priority must be given to eligible housing activities that serve extremely low-income households with incomes at or below thirty percent of the area median income. Eligible housing activities to be funded by these county funds are limited to:
     (a) Acquisition, construction, or rehabilitation of housing projects or units within housing projects that are affordable to very low-income households with incomes at or below fifty percent of the area median income and that provide an application preference for qualified disabled veterans for a minimum of ten percent of the units funded in full or part by revenue generated by the surcharge, including units for homeownership, rental units, seasonal and permanent farm worker housing units, and single room occupancy units;
     (b) Supporting building operation and maintenance costs of housing projects or units within housing projects eligible to receive housing trust funds, that are affordable to very low-income households with incomes at or below fifty percent of the area median income and that provide an application preference for qualified disabled veterans for a minimum of ten percent of the units funded in full or part by revenue generated by the surcharge, and that require a supplement to rent income to cover ongoing operating expenses;
     (c) Rental assistance vouchers for housing units that are affordable to very low-income households with incomes at or below fifty percent of the area median income, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards; and
     (d) Operating costs for emergency shelters and licensed overnight youth shelters.
     (3) For purposes of this section, "qualified disabled veteran" means a person who:
     (a) Meets the definition of "veteran" in RCW 41.04.007;
     (b) Is rated as disabled by the United States department of veterans affairs; and
     (c) Meets the income limitations of this section.
     (4)(a) After January 1, 2012, the county auditor may not impose the surcharge under this section unless the county has adopted a policy concerning affordable housing for qualified disabled veterans. At a minimum, such policy must provide for a tracking mechanism to monitor compliance with the requirement that an application preference apply for qualified disabled veterans for a minimum of ten percent of the housing units funded in full or part by funds generated by the surcharge.
     (b) The county auditor shall file with the Washington state department of veterans affairs a report of compliance with its policy concerning affordable housing for qualified disabled veterans. The report must be prepared in the form and within the time frame prescribed by the director of the department of veterans affairs. The information in the report must be provided as of the date of the report, and must set forth:
     (i) The county's current policy concerning affordable housing for qualified disabled veterans;
     (ii) The number of housing units in the county funded in full or part by funds generated by the surcharge;
     (iii) The number of qualified disabled veterans who applied for housing in the county in housing units funded in full or part by funds generated by the surcharge; and
     (iv) The number of qualified disabled veterans provided housing in the county in housing units funded in full or part by funds generated by the surcharge.
     (5) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.

Sec. 4   RCW 43.185.060 and 1994 c 160 s 2 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, regional support networks established under chapter 71.24 RCW, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or statewide nonprofit housing assistance organizations.
     (2) For organizations that are included in subsection (1) of this section and that provide housing units directly to low and very low-income citizens, only those organizations that provide an application preference favoring qualified disabled veterans are eligible to receive assistance from the department under this chapter. The application preference must apply to a minimum of ten percent of all housing units developed under the program by these organizations. For purposes of this subsection, "qualified disabled veteran" means a person who:
     (a) Meets the definition of "veteran" in RCW 41.04.007;
     (b) Is rated as disabled by the United States department of veterans affairs; and
     (c) Has an adjusted income of less than fifty percent of the median family income, adjusted for household size, for the county where the housing unit is located.
     (3) Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made.

Sec. 5   RCW 43.185A.040 and 1994 c 160 s 4 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or statewide nonprofit housing assistance organizations.
     (2) For organizations that are included in subsection (1) of this section and that provide housing units directly to low and very low-income citizens, only those organizations that provide an application preference favoring qualified disabled veterans are eligible to receive assistance from the department under this chapter. The application preference must apply to a minimum of ten percent of all housing units developed under the program by these organizations. For purposes of this subsection, "qualified disabled veteran" means a person who:
     (a) Meets the definition of "veteran" in RCW 41.04.007;
     (b) Is rated as disabled by the United States department of veterans affairs; and
     (c) Meets the definition of "low-income household" in RCW 43.185A.010.
     (3) Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made.