Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Community Development & Housing Committee |
HB 1699
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Brief Description: Concerning housing trust fund administrative costs.
Sponsors: Representatives Kenney, Smith and Maxwell; by request of Washington State Department of Commerce.
Brief Summary of Bill |
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Hearing Date: 2/7/11
Staff: Jennifer Thornton (786-7147).
Background:
Housing Trust Fund.
Established at the Department of Commerce (Department) in 1987 and funded beginning in 1989, the Washington State Housing Trust Fund helps communities meet the housing needs of low-income and special needs populations. Ninety-three percent of households served are below 50 percent of area median income, with 72 percent below 30 percent of area median income.
The Housing Trust Fund portfolio is currently $806 million. Trust funds appropriations from the capital budget have supported the development of 1,200 projects and 36,000 single and multifamily units statewide. Administrative funding is limited to 5 percent of appropriations, and come from the loan repayment account within the trust fund.
Capital Budget Appropriations for Housing 2001-03 through 2009-11 Biennium.
Biennium | 2001-03 | 2003-05 | 2005-07 | 2007-09 | 2009-11 |
Appropriations | $78,000,000 | $81,000,000 | $121,000,000 | $200,000,000 | $130,000,000 |
Two primary state programs operate within the Housing Trust Fund: the Housing Assistance Program and the Affordable Housing Program.
Housing Assistance Program.
The Housing Assistance Program, administered by the Department, uses Housing Trust Fund and other appropriations to finance loans and grant projects that provide housing for households with special housing needs and with incomes at or below 50 percent of the project area's median family income. At least 30 percent of funds in any cycle must benefit projects located in rural parts of the state. Eligible activities include:
new construction, rehabilitation, or acquisition of low and very low-income housing units;
rent subsidies;
matching funds for social services directly related to providing housing for special-need tenants in assisted projects;
technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;
administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;
shelters and related services for the homeless, including emergency shelters and overnight youth shelters;
mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;
mortgage insurance guarantee or payments for eligible projects;
down payment or closing cost assistance for eligible first-time home buyers;
acquisition of housing units for the purpose of preservation as low-income or very low-income housing; and
projects making housing more accessible to families with members who have disabilities.
Affordable Housing Program.
The Affordable Housing Program, administered by the Department, uses Housing Trust Fund and other appropriations for the purpose of developing and coordinating public and private resources targeted to meet the affordable housing needs of households below 80 percent of the project area's median family income. Eligible activities include, but are not limited to:
new construction, rehabilitation, or acquisition of housing for low-income households;
rent subsidies in new construction or rehabilitated multifamily units;
down payment or closing costs assistance for first-time home buyers;
mortgage subsidies for new construction or rehabilitation of eligible multifamily units; and
mortgage insurance guarantee or payments for eligible projects.
Summary of Bill:
The maximum amount of funds that can be used for administrative costs is reduced from 5 to 3 percent of the annual funds available for the Housing Assistance Program and Affordable Housing Program. Administrative costs are described as the costs associated with application, distribution and project development activities.
Administration funding of up to 0.25 percent of the contracted amount of state investment in the housing assistance program and affordable housing program for compliance and monitoring activities is added.
"Contracted amount of state investment in the housing assistance program" and "contracted amount" are defined as the aggregate amount of all state funds for which the Department has monitoring and compliance responsibility.
Appropriation: None.
Fiscal Note: Requested on January 31, 2011.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.