WSR 98-20-086

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE

[Filed October 6, 1998, 1:45 p.m.]



Subject of Possible Rule Making: WAC 458-16A-010 Nonprofit homes for the aging.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 84.36.041 and 84.36.865.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The Washington Association of Homes for the Aging (WAHA) submitted a petition to the department to begin the rule-making process for WAC 458-16A-010. WAHA requests that the set-aside requirements in this rule be revised to allow nonprofit homes for the aging to retain their property tax exemption if they maintain their original set-aside requirements when refinancing existing tax-exempt indebtedness. The department agreed to commence this process because it believes when the existing rule was adopted in 1995, the participants failed to consider all the ramifications of a brand new facility financed with tax exempt bonds, which initially met the low-income set-aside requirements, needing to refinance because of interest rate changes or market growth. If such a facility is required to meet the higher set-aside requirements for low-income residents contained in the current rule, the facility may lose its capacity to serve low-income elders because it may lose its tax-exempt status or ability to refinance. The department drafted revisions to the rule to address WAHA's concerns and the unintended results of the current set-aside requirements contained in WAC 458-16A-010.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Kathy Beith, Property Tax Division, P.O. Box 47471, Olympia, WA 98504-7471, phone (360) 753-1941, fax (360) 586-7602, e-mail kathyb@dor.wa.gov. Copies of the rule are also available upon request from Pat Baxter at (360) 664-3172.

Location and Date of Public Meeting: November 12, 1998, at 10 a.m., Evergreen Plaza Building, 2nd Floor Conference Room, 711 Capitol Way South, Olympia, WA 98502.

Assistance for Persons with Disabilities: Contact Arturo Haro by November 5, 1998, TDD 1-800-451-7985 or (360) 586-0721.

October 5, 1998

Claire Hesselholt

Rules Manager

Legislation and Policy Division

Legislature Code Reviser

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