HOUSE BILL REPORT

HB 2971

BYRepresentatives Wineberry, Padden, Nutley, Baugher, Leonard, Winsley, Anderson, Locke, O'Brien, Jacobsen, Crane, Rayburn, P. King, Walker and Forner

Requiring drug prevention plans for assisted housing.

House Committe on Housing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Winsley, Ranking Republican Member; Anderson, Ballard, Inslee, Padden, Rector and Todd.

House Staff:Kenny Pittman (786-7392)

AS REPORTED BY COMMITTEE ON HOUSING FEBRUARY 2, 1990

BACKGROUND:

The financing of housing for persons of low- and moderate- income at the state level is accomplished primarily through programs administered by the Washington State Housing Finance Commission (commission) and the Department of Community Development (DCD).

The commission's housing programs for single family and multifamily residential housing are financed through the issuance of non- recourse revenue bonds.  Before bonds are issued, the commission is required to adopt a general (finance) plan and set objectives to guide the financing of affordable housing.  The finance plan must address a range of objectives that guide the use of the funds, the populations served, and geographic distribution of bond proceeds.  The finance plan is usually developed for a two year period.

The Department of Community Development's housing program (Housing Trust Fund) provides a source of funds to local governments, nonprofit organizations, and public housing authorities.  The funds are used to assist in the development or preservation of housing for low-income persons and families with special housing needs. In rating applications for assistance through the Housing Trust Fund, DCD must consider the degree of other funds in the project, the population served, and applicants ability to manage the project.

SUMMARY:

SUBSTITUTE BILL:  The Washington State Housing Finance Commission's (commission) finance plan is revised to require the existence of a drug prevention plan.  The rating and evaluation criteria for financial assistance through the Department of Community Development's (DCD) Housing Trust Fund is revised to require a drug prevention plan.

The Department of Community Development is directed to develop a model drug prevention plan to be used by applicants requesting assistance through the Washington State Housing Finance Commission and the department's Housing Trust Fund. The model drug prevention plan includes activities that are to be undertaken by the applicant to aid in the prevention and control of illegal drug activities at the housing development site.  The elements of the plan shall include but not be limited to:  tenant screening for prior drug offenses; on-site property management; and the distribution of anti-drug educational materials.

The commission is required to notify the mortgage lender, mortgage insurer, and the federal Internal Revenue Service when the owner fails to make a good faith effort to maintain a drug free environment.

The Department of Community Development must include provisions in its contracts for financial assistance through the Housing Trust Fund that can include penalties against the owner for failure to maintain a drug free environment.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The Department of Community Development is directed to develop a model drug prevention plan to be used by applicants requesting assistance through the Washington State Housing Finance Commission and the department's Housing Trust Fund.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Wineberry (Bill Sponsor); Joel Sweetland, Seattle Police Department; Eugene Wasserman, Neighborhood Business Council; Kay Godefroy, Neighborhood Crime and Justice Center; and Jeff Robinson, Department of Community Development (with concern).

House Committee - Testified Against:      Paul Fitzgerald, Washington State Housing Finance Commission.

House Committee - Testimony For:    The problems of illegal drug activity are felt in all areas of the state.  Drug activity impacts the business activities of the community.  It is time we address this problem at the site.  The use of landlords is a key to any drug prevention activities.  The concern is over how to enforce the drug prevention provisions of the bill.

House Committee - Testimony Against:      The commission supports the concept of drug prevention.  However, the commission's role is in the financing of affordable housing.  This bill would require the commission to get involved in an area where it has no expertise.