The Department of Commerce (Commerce) administers many of the state's housing and homelessness programs. These programs include funding for rental subsidies and the construction, operations, and maintenance of housing. Programs administered by Commerce include the Housing Trust Fund, the Landlord Mitigation Program, the Consolidated Homeless Grant, the Manufactured/Mobile Home Relocation Assistance Program, and tenant rental assistance programs. Commerce does not generally provide direct assistance to the public nor does it build and operate housing. Instead, Commerce provides state and federal funding to local governments and nonprofit organizations who in turn provide the housing, services, and subsidies in local communities.
Other state entities also administer housing programs. For example, the Washington State Housing Finance Commission administers low-income housing tax credits and offers affordable home loans and down-payment assistance programs, and the Office of Civil Legal Aid is responsible for overseeing and administering eviction defense programs.
The Office of Financial Management (OFM) must contract with an external consultant to study the transition of state housing programs to a new state agency and identify gaps in current state housing programs. The study must include a review and recommendations on the following issues:
As part of the review, the external consultant must engage with and seek recommendations from the following:
The contract must require the external consultant to submit a report with its findings and recommendations to the Governor and the Legislature by July 1, 2025.
The substitute bill removes a requirement that the external consultant help facilitate the transition of state housing programs to a new state agency.
The substitute bill clarifies that the review of estimated costs for the reorganization includes the creation of the new state agency, including indirect costs, change management, training, and community outreach.
The substitute bill adds to the study requirements an analysis of existing state and federal funding for state housing programs and any statutory revisions necessary to ensure sufficient funding to the new agency.
The substitute bill clarifies that the consultant must engage with and seek recommendations from both the nonprofit rental housing development industry and the nonprofit homeownership housing development industry.
The substitute bill adds a labor organization representing frontline staff within permanent supportive housing providers to the entities that the consultant must engage.
The substitute bill prohibits the OFM from awarding the contract to an external consultant or entity that has lobbied or publicly testified on matters related to the scope of the study, including affordable housing, homelessness, tenant protections, and social services for people at risk of homelessness, and exempts the contract from competitive procurement requirements.
The substitute bill extends the due date for the consultant's findings and recommendations from December 1, 2024, to July 1, 2025.
(In support) The Legislature has been passing laws, funding, and programs to address the housing crisis, but the situation continues to get worse. Homelessness and evictions continue to increase. Section 8 vouchers do not meet rising rents. People are not able to participate in the American dream of homeownership. The goal of this bill is to provide a holistic approach to housing and direct resources efficiently. The state needs a one-stop housing shop to specialize and take time to deliver solutions. Nonprofit homeownership developers and health care workers have perspectives and recommendations for the new agency and should be consulted.
(Opposed) None.
(Other) It is critical to restructure the way homelessness is addressed. Too many agencies are involved, and the state needs just one to address the root cause of homelessness. The state needs to build housing and should look at how other countries handle public housing. With the connection between land use and housing, a land-use organization should be consulted. The external consultant needs to be transparent, and the bill should require an open process, including public meetings.
(In support) Representative Melanie Morgan, prime sponsor; Morgan Irwin, Association of Washington Business; Dane Austreng, Service Employees International Union Healthcare 1199NW; Ryan Donohue, Habitat for Humanity Seattle-King and Kittitas Counties; and Michele Thomas, Washington Low Income Housing Alliance.
The Appropriations Committee added a null and void clause, making the bill null and void unless funded in the budget.
(In support) The study required under this bill represents an important inquiry into not only the benefits of creating a new department of housing, but also identifying existing gaps in housing and homelessness services funded by the state, and where improvements can be made in the current system. The study will identify the costs to create a new agency as well. It will be very thorough and is necessary for ensuring the state is effective and efficient as it addresses the housing and homelessness crisis.
(Opposed) None.
Michele Thomas, Washington Low Income Housing Alliance.