H-1781

AN ACT Relating to preservation of moderate-income housing; amending RCW 43.84.092 and 43.84.092; adding new sections to chapter 43.180 RCW; creating a new section; making an appropriation; providing an effective date; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds that there is a severe shortage of affordable housing within the state of Washington and that preservation of the existing supply of affordable housing is a cost-effective alternative to displacement of tenants.

It is the purpose of this act to preserve multifamily rental housing in the state of Washington and to minimize the involuntary displacements of tenants currently residing in such housing.

NEW SECTION. Sec. 2. A new section is added to chapter 43.180 RCW to read as follows:

The commission, in cooperation with the department of community, trade, and economic development, shall develop and implement a rental housing preservation program that:

(1) Provides subsidized or unsubsidized mortgage financing for multifamily rental housing;

(2) Provides flexible loan underwriting guidelines, including but not limited to provisions that encourage ownership of multifamily housing by nonprofit organizations;

(3) Gives priority funding, through the commission, to multifamily rental housing projects that result in the long-term preservation of housing for moderate-income households;

(4) Targets existing public and private resources to assist in the new construction, rehabilitation, or acquisition of multifamily rental housing for moderate-income households; and

(5) Uses a portion of the revenue generated from the issuance of bonds under this chapter to assist in the new construction, rehabilitation, or acquisition of multifamily rental housing for moderate-income households.

NEW SECTION. Sec. 3. A new section is added to chapter 43.180 RCW to read as follows:

(1) The rental housing preservation program developed under section 2 of this act shall:

(a) Be limited to housing units that are owned or will be owned by nonprofit organizations, associations, or corporations, with priority given to nonprofit tenant organizations;

(b) Give priority to nonprofit organizations, associations, or corporations that will operate the housing as housing for moderate-income households for a period of at least fifty years and will agree to a written covenant agreeing to keep rents affordable to moderate-income households;

(c) Give priority to multifamily rental housing projects that are located in metropolitan areas that have experienced sharp increases in rents; and

(d) To the extent feasible, use the funds in the moderate-income housing preservation account created in section 4 of this act to assist nonprofit organizations, associations, or corporations in the preservation of housing for moderate-income households.

(2) As used in this section and section 2 of this act, "moderate-income households" means a single person, family, or unrelated persons living together whose adjusted income is greater than fifty percent but less than eighty percent of the median family income, adjusted for household size, for the county where the project is located.

NEW SECTION. Sec. 4. A new section is added to chapter 43.180 RCW to read as follows:

The moderate-income housing preservation account is created in the state treasury. All receipts from appropriations by the legislature, private contributions, repayment of loans made from this account, and all other sources must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used for the purposes of chapter . . ., Laws of 1999 (this act).

NEW SECTION. Sec. 5. A new section is added to chapter 43.180 RCW to read as follows:

The commission, in consultation with the department of community, trade, and economic development, may provide technical assistance to nonprofit tenant organizations who wish to convert the multifamily housing development in which they reside to tenant ownership. Technical assistance does not include details connected with the sale or conversion of a multifamily housing development which would require the commission to act in a representative capacity.

Sec. 6. RCW 43.84.092 and 1997 c 218 s 5 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the moderate-income housing preservation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the department of licensing services account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the gasohol exemption holding account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the small city account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation revolving loan account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 7. RCW 43.84.092 and 1998 c 341 s 708 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the moderate-income housing preservation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system combined plan II and plan III account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington school employees' retirement system combined plan II and III account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 8. The sum of five million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2001, from the state building construction account to the moderate-income housing preservation account created in section 4 of this act, for the purposes of this act.

NEW SECTION. Sec. 9. Section 6 of this act expires September 1, 2000.

NEW SECTION. Sec. 10. Section 7 of this act takes effect September 1, 2000.