SENATE BILL REPORT

SB 6574

BYSenators Lee, Smitherman, West, McCaslin, Murray, Williams, Amondson and Anderson

Changing the definition of housing under the Washington state housing finance commission.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 30, 1990

Majority Report:     Do pass.

     Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Murray, Saling, Smitherman, West, Williams.

Senate Staff:Dave Cheal (786-7576)

                March 2, 1990

House Committe on Housing

Rereferred House Committee on Capital Facilities & Financing

AS PASSED SENATE, FEBRUARY 8, 1990

BACKGROUND:

The Washington State Housing Finance Commission assists in the financing of low and moderate income housing through a variety of programs including the issuance of tax exempt bonds.  The program of the commission is limited to traditional residential dwellings rather than any type of special needs housing.

SUMMARY:

The definition of "housing" in the Housing Finance Commission's enabling statute is amended to expressly include nursing homes licensed under Chapter 18.51 RCW.

With this change, the commission could provide assistance in the development of licensed nursing homes. 

Appropriation:  none

Revenue:   none

Fiscal Note:    requested

Senate Committee - Testified:   Kim Herman, Washington State Housing Finance Commission; Skip Chilberg, Washington State Housing Finance Commission; Richard Milson, The Hearthstone Retirement Center; Derril Meyer, CRISTA; Karen Tynes, Washington Association of Homes for the Aging

HOUSE AMENDMENT:

The Housing Finance Commission is authorized to enter into a variety of financing arrangements with nonprofit corporations in furtherance of activities which are educational, charitable and literary, within the meaning of section 501(c)(3) of the Internal Revenue Code.  These financing arrangements include the issuance of tax exempt nonrecourse revenue bonds.  The Housing Finance Commission is designated as the sole issuer of revenue bonds for facilities owned and operated by nonprofit corporations, except the Health Care Facilities Authority and the Higher Education Facilities Authority.  The principal and interest payments on the bonds come solely from the revenues of the nonprofit facility being financed and are not an obligation of the commission or the state.  Such bonds may be secured by a trust agreement between the commission and a corporate trustee, such as any trust company or bank having the powers of a trust company.  Financing agreements between the commission and a nonprofit corporation may provide for foreclosure of the nonprofit facility being financed in the event of a default on the agreement.