Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Housing Committee
HB 1046
Brief Description: Expanding housing supply by supporting the ability of public housing authorities to finance affordable housing developments by rebenchmarking area median income limits.
Sponsors: Representatives Walen, Leavitt, Ryu, Bateman and Peterson.
Brief Summary of Bill
  • Increases the area median income limits on a public housing authority-financed, low-income housing development to 80 percent.
Hearing Date: 1/10/23
Staff: Audrey Vasek (786-7383).
Background:

Authorized by state law in 1939, a public housing authority (PHA) is an independent municipal corporation established to provide safe and affordable rental housing for low-income individuals, families, senior citizens, and people with disabilities.  A PHA must be activated by a resolution of the governing body of a city or county, and a PHA's boundaries are coextensive with the creating city or county, unless established as a joint housing authority comprised of two or more jurisdictions.  With some exceptions, PHAs are governed by a five-member commission appointed by a city's mayor or a county's commissioners.


While PHAs are created under state law, they primarily serve as a conduit for federally funded housing programs, such as tenant-based vouchers and publicly owned housing.  The PHAs also own and operate other rental housing, such as emergency and transitional housing, senior housing, and properties funded through low-income housing tax credits.  The PHAs have no taxing authority, and most of their funding is provided by the federal government.


PHA Financing Authority.


A PHA may finance a low-income housing development if certain conditions are met.  In general, a PHA-financed, low-income housing development must be subject to a 20-year affordability agreement that requires 50 percent of the dwelling units or 50 percent of the interior space of the development to be made available to low-income households for at least 20 years.  For mobile home parks, 50 percent of the total number of mobile home lots in the park must be made available to low-income households.


The 20-year affordability requirement does not apply when a PHA finances a development by a nonprofit corporation or governmental unit of dwellings or mobile home lots intended for sale to low- and moderate-income households, or when a PHA provides construction or other short-term financing with a repayment term of one year or less to a nonprofit corporation or governmental unit.


For a PHA-financed, low-income housing development owned by a for-profit entity, the low-income housing portion of the development must be rented to households whose income does not exceed 50 percent of the area median income.


For a PHA-financed, low-income housing development owned by a governmental entity or a nonprofit organization, the low-income housing portion of the development must be rented to households whose income does not exceed 60 percent of the area median income.
Summary of Bill:

The area median income limits on a low-income housing development financed by a public housing authority are increased as follows:

  • For a development owned by a for-profit entity, the area median income limit is increased from 50 percent to 80 percent.
  • For a development owned directly or through a partnership by a governmental entity or a nonprofit organization, the area median income limit is increased from 60 percent to 80 percent.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.