HOUSE BILL REPORT
HB 1616
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. |
As Reported by House Committee On:
Community Development, Housing & Tribal Affairs
Title: An act relating to affordable housing loan programs.
Brief Description: Clarifying the type of land eligible for purchase under the affordable housing land acquisition revolving loan fund program.
Sponsors: Representatives McBride, Johnson, Stanford, Pollet and Jinkins; by request of Housing Finance Commission.
Brief History:
Committee Activity:
Community Development, Housing & Tribal Affairs: 2/8/17, 2/9/17 [DP].
Brief Summary of Bill |
|
HOUSE COMMITTEE ON COMMUNITY DEVELOPMENT, HOUSING & TRIBAL AFFAIRS |
Majority Report: Do pass. Signed by 5 members: Representatives Ryu, Chair; Macri, Vice Chair; Barkis, Assistant Ranking Minority Member; Reeves and Sawyer.
Minority Report: Do not pass. Signed by 2 members: Representatives McCabe, Ranking Minority Member; Jenkin.
Staff: Kirsten Lee (786-7133).
Background:
The Legislature created the Affordable Housing Land Acquisition Revolving Loan Fund Program (LAP). The LAP is managed by the Washington State Housing Finance Commission and consists of a revolving loan fund for land acquisition by eligible organizations who intend to develop affordable housing or develop facilities intended to provide supportive services to affordable housing residents and low-income households. Loan interest rates may not exceed 1 percent. An affordable housing development plan is required as part of the loan application process and loan recipients must develop and place affordable housing into service within eight years of loan receipt. If a housing development does not comply with the requirements of the LAP, a penalty is imposed on the loan recipient, which consists of the principal of the loan plus compounded interest calculated at the current market rate. Forty percent of loans must be made to eligible applicants operating homeownership programs for low-income households in which the households participate in the construction of their homes. Sixty percent of loans must be made to other eligible organizations.
–––––––––––––––––––––––––––––––––
Summary of Bill:
The type of allowable land that loans may be made for, under the Affordable Housing Land Acquisition Revolving Loan Fund Program, is expanded to include vacant or improved land.
–––––––––––––––––––––––––––––––––
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:
(In support) Once of the problems that the program runs into is that vacant land is not always available for affordable housing developers to purchase. This change would allow for improved land, including land with existing structures on the property, to be purchased for the purpose of affordable housing. This allows eligible organizations purchasing the improved land to have the option of tearing down the structure or rehabilitating the existing structure for uses such as habitat homes, adult family homes, and other affordable housing purposes. This change is positive because this is an easy and effective way to provide affordable housing with existing resources.
(Opposed) None.
Persons Testifying: Representative McBride, prime sponsor; and Kim Herman, Washington State Housing Finance Commission.
Persons Signed In To Testify But Not Testifying: None.