HOUSE BILL REPORT
HB 1301
BYRepresentatives Nutley, Leonard, Rayburn, J. Williams, Wang, Grant, R. King and Unsoeld
Providing for farm-worker housing.
House Committe on Housing
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (5)
Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Armstrong, Todd and Wineberry.
Minority Report: Do not pass. (4)
Signed by Representatives J. Williams, Barnes, Padden and Sanders.
House Staff:Kenny Pittman (786-7392)
Rereferred House Committee on Ways & Means/Appropriations
Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass. (20)
Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Bristow, Butterfield, Ebersole, Grant, Grimm, Hine, Holland, McLean, Nealey, Peery, Silver, H. Sommers, Spanel, Sprenkle, Wang and B. Williams.
House Staff: Susan Kavanaugh (786-7136)
AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS
FEBRUARY 7, 1988
BACKGROUND:
Agriculture is a major industry in the state of Washington. The harvesting of labor intensive crops, such as apples, cherries, and asparagus, require large numbers of farm-workers. The majority of this labor force consists of out-of-state workers or workers from areas beyond commuting distances (migrant farm-workers).
In November, 1987 the State Board of Health, Farm-worker Housing Work/Study Group released its preliminary report on farm-worker housing. The recommendations of the work/study group covered five areas: (1) farm-worker housing, (2) housing initiatives, (3) health effects and health surveillance, (4) regulatory agencies, and (5) education.
One recommendation calls for the development of an adequate supply of safe and sanitary housing for migrant and seasonal farm-workers. The report further recommends that the responsibility for the development of this housing should be the joint responsibility of the State and the agricultural community.
The State Building Code is designed to provide a uniform set of performance standards (construction and energy) for structures within the state. Cities and counties are authorized to amend the state building code, but the amendments cannot result in a standard that is less than the performance standards adopted by the state.
SUMMARY:
SUBSTITUTE BILL: The Department of Community Development (DCD) is required to develop the following grant and loan programs to assist migrant farm-workers:
1. Grants for Emergency Food and Shelter
Grants may be given to local governing bodies and nonprofit organizations in order to provide short-term food or shelter to migrant farm-workers who are unable to find employment.
Grants may only be given under the program if the local legislative body has certified that existing food and shelter resources are inadequate to meet the increased demand.
$100,000 is appropriated for grants for emergency food and shelter.
2. Grants for Technical Assistance
Grants may be given to local governing bodies and nonprofit organizations to increase their ability to develop permanent and temporary housing alternatives for farm-workers.
The grants may be used to cover: (a) technical assistance (such as design, finance and consultation services) and related administrative costs and/or (b) administrative costs necessary to increase access to other funding sources.
$250,000 is appropriated for grants for technical assistance.
3. Loans and Grants for Farm-worker Housing
This program authorizes (a) loans and/or grants to local governing bodies and nonprofit organizations, as defined by the department, and (b) loans to eligible individuals. Loans and/or grants under this program are for the construction, rehabilitation or acquisition of temporary or permanent housing affordable to farm-workers and their families.
In the case of local governing bodies and nonprofit organizations, the grant amount can not (a) exceed fifty percent of the project costs or (b) be used for project organization or planning costs. Loans made to local governing bodies and nonprofit organizations can not exceed eighty percent of the project costs. The loan and grant provisions require that the housing be occupied, utilized, maintained, and operated for at least twenty years.
In the case of eligible individuals, the loan amount can not (a) exceed fifty percent of the project costs, or (b) exceed a interest rate of seven percent per annum. Loans to eligible individuals require an agreement between the owner and DCD that the housing will be occupied, utilized, maintained, and operated for a least the term of the loan.
DCD is authorized to establish the terms, rates and conditions of the loans.
$2.4 million is appropriated for loans and grants for farm-worker housing.
4. Grants for Operating Subsidies
DCD is authorized to make grants to local governing bodies or nonprofit organizations to assist in the operation of migrant centers or migrant farm-worker housing.
$500,000 is appropriated for grant for operating subsidies.
PRIORITIES FOR AWARDING LOANS AND GRANTS
DCD is directed to accept applications for loans and grants on a year-round basis and to give preference to projects based on the following criteria:
a) The minimum amount necessary to ensure affordable rents;
b) The degree of other funds in the project, including land and in-kind contributions; and
c) The ability of the applicant to develop and operate the project.
MODEL CONSTRUCTION PLANS
DCD is authorized to develop and make available model construction plans for farm-worker housing, including, but not limited to campgrounds, dormitory housing, family housing, and recreational vehicle parks.
FARM-WORKER HOUSING FUND - REIMBURSEMENT
A farm-worker housing fund is established in the custody of the treasurer. All principal and interest payments received on loans made by DCD, to local governing bodies, nonprofit organizations, and eligible individuals, shall be deposited in the fund. Disbursements from the fund shall be only for loans and grants to support the development of farm-worker housing. The Director of DCD is authorized to make additional loans and grants from the fund without a legislative appropriation.
BUILDING CODE EXEMPTION
The State Building Code Council (SBCC) may adopt, by rule, its own construction and thermal performance construction standards for housing that is (a) occupied for less than six months per year and (b) occupied solely by farm-workers. If such standards are adopted, then the local governing body must comply with the construction and thermal performance construction standards adopted by the SBCC.
If the SBCC does not adopt its own construction and thermal performance construction standards, the local governing body may adopt the federal Farmers Home Administration (FmHA) construction and thermal performance construction standards for migrant farm-worker housing.
If the SBCC has adopted its own construction and thermal performance construction standards or the local governing body has adopted the FmHA construction and thermal performance construction standards, then the State Energy Code standards do not apply.
SUBSTITUTE BILL COMPARED TO ORIGINAL: DCD shall define farm-worker, and eligible individual, and further define nonprofit organization for the purposes of this act by rule.
The provision to require that all farm-worker housing constructed, rehabilitated, or acquired with a loan and/or grant by a local governing body or nonprofit shall be available to all eligible farm-workers.
CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS: The programs of grants for emergency food and shelter, grants and loans for farmworker housing and grants for operating subsidies are deleted. No farmworker housing fund is created. The appropriation is reduced from $3.5 million to $250,000.
Appropriation: $250 thousand to the Department of Community Development.
Fiscal Note: Requested January 20, 1988.
Effective Date:The bill contains an emergency clause and takes effect immediately.
House Committee ‑ Testified For: (Housing) Frank Delong, Washington State Horticultural Association; Rebecca Smith, Evergreen Legal Services; Billie Heath, Rural Community Assistance Corporation; and Hector Gonzalez, Washington State Commission on Hispanic Affairs.
(Ways & Means/Appropriations) Representative Busse Nutley; Phil Kaplan, Washington Poverty Law Advocates.
House Committee - Testified Against: (Housing) None Presented.
(Ways & Means/Appropriations) None Presented.
House Committee - Testimony For: (Housing) The agricultural industry supports the concept of the bill. The need for low interest, long-term loans for construction of new housing and rehabilitation of existing on-farm housing for seasonal farm-workers is clear. Off-farm housing should be the priority of state funding and away from temporary solutions, such as tent camps, for farm-workers. This approach, with its flexible funding, is what is needed to respond to the unique housing needs of the seasonal and migrant farm-worker population.
(Ways & Means/Appropriations) Given the new immigration laws, decent housing is needed to attract migrant farmworkers to the state. Currently, five different agencies have farmworker housing regulations. This has created confusion and needed housing is not being built. This bill would provide access to federal funds for farmworker housing. The programs under this bill will alleviate human suffering.
House Committee - Testimony Against: (Housing) None Presented.
(Ways & Means/Appropriations) None Presented.