[atlas:bill]

AN ACT Relating to emergency mortgage and rental assistance for aerospace workers; adding a new chapter to Title 43 RCW; making appropriations; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. For the purposes of this chapter, "department" means the department of community, trade, and economic development.

NEW SECTION. Sec. 2. (1) The department shall establish and administer the emergency mortgage and rental assistance program. The department shall identify the communities most adversely affected by reductions in the aerospace industry and shall prioritize assistance under this program to these communities. Organizations eligible to receive grant funds for distribution under the program are those organizations that are eligible to receive assistance through the Washington housing trust fund. The department shall disburse the funds to eligible local organizations as grants. The local organizations shall use the funds to make grants or loans as specified in sections 2 through 6 of this act. If funds are disbursed as loans, 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 from funds received as loan repayments to dislocated aerospace workers eligible under the provisions of sections 2 through 6 of this act.

(2) The goals of the program are to:

(a) Provide temporary emergency mortgage loans or rental assistance grants or loans on behalf of dislocated aerospace workers who are unable to make mortgage, property tax, or rental payments on their permanent residences and are subject to immediate eviction for nonpayment of mortgage installments, property taxes, or nonpayment of rent;

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

NEW SECTION. Sec. 3. Emergency mortgage assistance shall be provided under the following general guidelines:

(1) Loans provided under the program may not exceed an amount equal to twenty-four months of mortgage payments.

(2) The maximum loan amount allowed under the program may not exceed twenty thousand dollars.

(3) Loans shall be made to applicants who meet specific income guidelines established by the department.

(4) Loan payments shall be made directly to the mortgage lender.

(5) Loans shall be granted on a first-come, first-served basis.

(6) Repayment of loans provided under the program shall be made to eligible local organizations, and may not take more than twenty years. Funds repaid to the program shall be used as grants or loans under the provisions of sections 2 through 6 of this act.

NEW SECTION. Sec. 4. Emergency rental assistance shall be provided under the following general guidelines:

(1) Rental assistance provided under the program may be in the form of loans or grants and may not exceed an amount equal to twenty-four months of rental payments.

(2) Rental assistance shall be made to applicants who meet specific income guidelines established by the department.

(3) Rental payments shall be made directly to the landlord.

(4) Rental assistance shall be granted on a first-come, first-served basis.

NEW SECTION. Sec. 5. To be eligible for assistance under the program, an applicant must:

(1) Be unable to keep mortgage or rental payments current due to a loss of employment, and shall be at significant risk of eviction;

(2) Have his or her permanent residence located in an eligible community;

(3) If requesting emergency mortgage assistance, be the owner of an equitable interest in the permanent residence and intend to reside in the home being financed;

(4) Be actively seeking new employment or be enrolled in a training program approved by the director; and

(5) Submit an application for assistance to an organization eligible to receive funds under section 2 of this act.

NEW SECTION. Sec. 6. The department shall carry out the following duties:

(1) Administer the program;

(2) Identify organizations eligible to receive funds to implement the program;

(3) Develop and adopt the necessary rules and procedures for implementation of the program and for dispersal of program funds to eligible organizations;

(4) Establish the interest rate for repayment of loans at two percent below the market rate;

(5) Work with lending institutions and social service providers in the eligible communities to assure that all eligible persons are informed about the program;

(6) Utilize federal and state programs that complement or facilitate carrying out the program;

(7) Ensure that local eligible organizations that dissolve or become ineligible assign their program funds, rights to loan repayments, and loan security instruments, to the government of the county in which the local organization is located. If the county government accepts the program assets described in this subsection, it shall act as a local eligible organization under the provisions of sections 2 through 6 of this act. If the county government declines to participate, the program assets shall revert to the department.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act shall constitute a chapter in Title 43 RCW.

NEW SECTION. Sec. 8. (1) The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2000, from the general fund to the department of community, trade, and economic development for the purposes of this act.

(2) The sum of one million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2001, from the general fund to the department of community, trade, and economic development for the purposes of this act.

NEW SECTION. Sec. 9. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1999.