HOUSE BILL REPORT

                  HB 1056

             As Reported By House Committee On:

          Trade, Economic Development, and Housing

Title:  An act relating to housing.

Brief Description:  Creating the Washington housing policy act.

Sponsors:  Representatives Franklin, Zellinsky, Thibaudeau, Quall, Wineberry, Ludwig, Campbell, Romero, Jones, Springer, Shin, Wolfe, Karahalios, Ogden, J. Kohl and Anderson.

Brief History:

  Reported by House Committee on:

Trade, Economic Development, and Housing, February 22, 1993, DPS.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT, AND HOUSING

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Schoesler; Sheldon; Springer; Valle; and Wood.

Staff:  Kenny Pittman (786-7392).

Background:  The state of Washington has been involved in providing assistance for housing since 1970.  What has evolved during the past 20 years is a system of direct spending programs and housing-related tax provisions that are used to meet the goal of reducing the cost and improving the quality of the housing stock.

While the state's involvement in housing has increased over the years, there has been concern expressed over the lack of a clearly articulated state policy on housing.  This concern was evident during statewide public hearings to receive input on the state's Comprehensive Housing Affordability Strategy.  The state Department of Community Development reported that participants identified the need for better coordination of existing resources and public and private organizations that play a role in the provision of housing as a major goal.

Summary of Substitute Bill:  The Washington Housing Policy Act provides a statement of public policy on state financial and technical assistance, and encourages partnerships between the public and private sectors to meet the housing needs of Washington's residents.

The objectives of the act are to strengthen public and private institutions that are able to: (1) develop an adequate and affordable supply of housing for all economic segments of the population; (2) assist very low-income and special needs households who cannot obtain affordable, safe, and adequate housing in the private sector; (3) encourage and maintain home ownership opportunities; (4) reduce life cycle housing costs while preserving public health and safety; (5) preserve the supply of existing affordable housing; (6) provide housing for special needs populations; (7) ensure fair and equal access to the housing market; (8) increase the availability of mortgage credit at low interest rates; and (9) coordinate and be consistent with the goals and objectives of the state's Growth Management Act.

Substitute Bill Compared to Original Bill:  The substitute bill states that land supply has an impact on housing cost.

Fiscal Note:  Not Requested.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The state needs a public policy to guide its decisions on housing.  Direction and a framework for future decisions is needed to guide all participants, public and private, in the housing industry.

Testimony Against:  None.

Witnesses:  Senator Franklin, prime sponsor (Pro); Glenn Hudson, Washington Association of Realtors (Pro); and Kim Herman, Washington State Housing Finance Commission (Pro).