BILL REQ. #:  H-1430.2 

Read first time 02/25/13.   Referred to Committee on Capital Budget.

     AN ACT Relating to properties obtained by public agencies through foreclosures; and adding a new chapter to Title 42 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Master real estate plan" or "plan" means a plan of a public agency for the timely use or disposal of properties that were obtained by foreclosure.
     (2) "Public agency" means: (a) Any state board, commission, committee, department, educational institution, or other state agency created by or pursuant to statute, other than courts and the legislature; and (b) any county, city, school district, special purpose district, or other municipal corporation or political subdivision of the state of Washington.

NEW SECTION.  Sec. 2   (1) By December 31, 2013, each public agency that owns property that was obtained by foreclosure must develop a list of these properties by parcel number.
     (2)(a) By July 1, 2014, the public agencies subject to subsection (1) of this section must develop, adopt, and implement a master real estate plan to use or dispose of the properties on the list required by subsection (1) of this section. For each property, the plan must:
     (i) Describe the use or application of the property as of the date of the list;
     (ii) Include the dollar amount of the property tax assessments for the three years prior to foreclosure; and
     (iii) Include, if the property is to be retained by the public entity, a detailed description of what the property is to be used for and when it is to be used.
     (b) Unless the plan provides a specific use for a property that is consistent with the authority and objectives of the public agency, the plan may not allow for a property to be owned by the public agency for five years beyond the adoption of the plan for the specified property, or five years beyond the date the foreclosed property becomes property of the public agency, whichever is later.
     (3) Public agencies that acquire property through foreclosure after the initial adoption of the plan must add each property to the plan and comply with subsection (2) of this section within two years of acquisition.

NEW SECTION.  Sec. 3   The master real estate plan required by section 2 of this act must provide a specific use for each property that is consistent with the authority and objectives of the public agency. If the master plan provisions for a specific property are not implemented in accordance with the requirements of the plan for that property, the authority of the public agency to retain ownership of the property is extinguished five years after the adoption of the plan, or five years after the date the foreclosed property becomes property of the public agency, whichever is later.

NEW SECTION.  Sec. 4   Upon extinguishment of the authority to retain ownership of a property under section 3 of this act, the public agency must take all appropriate actions to expeditiously dispose of the property to a market-rate purchaser. In disposing of the property, priority must be given to purchasers who will return the property to the tax rolls.

NEW SECTION.  Sec. 5   Sections 1 through 4 of this act constitute a new chapter in Title 42 RCW.