BP BHEAD INT H [atlas:bill]

AN ACT Relating to homelessness prevention activities; adding new sections to chapter 43.63A RCW; and making appropriations.

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

NEW SECTION. Sec. 1. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department of community, trade, and economic development shall establish and administer a homelessness prevention program.

(2) The goals of the program are to:

(a) Provide temporary emergency mortgage loans or rental assistance loans on behalf of very low-income households on a state-wide basis who are unable to make mortgage, property tax, or rental payments on their residences and are at risk of losing their homes;

(b) Prevent the dislocation of individuals and families from their permanent residences and their communities; and

(c) Assist very low-income households to attain housing through loans for downpayment assistance, payment of rental security deposits, or rent.

(3) Organizations eligible to receive homelessness prevention funds for distribution under the program are those organizations that are eligible to receive assistance through the Washington housing trust fund created under chapter 43.185 RCW.

(4) The local organizations shall use the funds to make grants or loans following the guidelines specified in RCW 43.63A.610 through 43.63A.640. The local organization shall establish a revolving grant and loan fund with funds received as loan repayments and shall continue to make grants or loans or both grants and loans from funds received as loan repayments to eligible very low-income households.

(5) Administrative costs of the department may not exceed one percent of available funds.

(6) As used in this section:

(a) "Very low-income household" means a family or person whose income is at or below fifty percent of the median family income, adjusted for household size, for the county.

(b) "Rental assistance" means a payment made to the landlord, on behalf of the very low-income household, for a period not to exceed six months of rent.

NEW SECTION. Sec. 2. A new section is added to chapter 43.63A RCW to read as follows:

(1) The rental housing voucher program is created in the department. The department shall:

(a) Develop a process to evaluate applications for grant assistance under this section;

(b) Distribute funds to eligible organizations as grants. The eligible local organizations shall use the funds for the purpose of administering a program designed to provide rental assistance payments to very low-income households;

(d) Take other actions the department deems necessary for the proper implementation of this section.

(2) Rental assistance may be provided, by the eligible local organization, under the following guidelines:

(a) As either a grant or loan and must not exceed an amount equal to twenty-four months of rental payments;

(b) To eligible very low-income households; and

(3) Administrative costs of the department may not exceed one percent of available funds.

(4) As used in this section:

(a) "Department" means the department of community, trade, and economic development.

(b) "Eligible organizations" means an organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW.

(d) "Very low-income household" means a family or person whose income is at or below fifty percent of the median family income, adjusted for household size, for the county.

NEW SECTION. Sec. 3. The sum of two million five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1998, from the general fund to the department of community, trade, and economic development for the purposes of section 1 of this act.

NEW SECTION. Sec. 4. The sum of two million five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the department of community, trade, and economic development for the purposes of section 1 of this act.

NEW SECTION. Sec. 5. The sum of five million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1998, from the general fund to the department of community, trade, and economic development for the purposes of section 2 of this act.

NEW SECTION. Sec. 6. The sum of five million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the department of community, trade, and economic development for the purposes of section 2 of this act.