2357-S AMS ET S4460.1

SHB 2357 - S COMM AMD

By Committee on Economic Development & Telecommunications

                                       ADOPTED AS AMENDED 03/06/02

    Strike everything after the enacting clause and insert the following:

    "Sec. 1.  RCW 35.81.010 and 1991 c 363 s 41 are each amended to read as follows:

    The following terms wherever used or referred to in this chapter, shall have the following meanings, unless a different meaning is clearly indicated by the context:

    (1) "Agency" or "((urban)) community renewal agency" ((shall)) means a public agency created ((by)) under RCW 35.81.160 or otherwise authorized to serve as a community renewal agency under this chapter.

    (2) "Blighted area" ((shall)) means an area which, by reason of the substantial physical dilapidation, deterioration, defective construction, material, and arrangement and/or age or obsolescence of buildings or improvements, whether residential or nonresidential, inadequate provision for ventilation, light, proper sanitary facilities, or open spaces as determined by competent appraisers on the basis of an examination of the building standards of the municipality; inappropriate ((or mixed)) uses of land or buildings; ((high density of population and)) existence of overcrowding of buildings or structures; defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or usefulness; excessive land coverage; insanitary or unsafe conditions; deterioration of site; existence of hazardous soils, substances, or materials; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; improper subdivision or obsolete platting; existence of persistent and high levels of unemployment or poverty within the area; or the existence of conditions ((which)) that endanger life or property by fire or other causes, or any combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency ((and)) or crime; substantially impairs or arrests the sound growth of the ((city)) municipality or its environs, or retards the provision of housing accommodations ((or)); constitutes an economic or social liability((,)); and/or is detrimental, or constitutes a menace, to the public health, safety, welfare, ((and)) or morals in its present condition and use.

    (3) "Bonds" ((shall)) means any bonds, notes, or debentures (including refunding obligations) herein authorized to be issued.

    (4) "Clerk" ((shall)) means the clerk or other official of the municipality who is the custodian of the official records of such municipality.

    (5) "Community renewal area" means a blighted area which the local governing body designates as appropriate for a community renewal project or projects.

(6) "Community renewal plan" means a plan, as it exists from time to time, for a community renewal project or projects, which plan (a) shall be consistent with the comprehensive plan or parts thereof for the municipality as a whole; (b) shall be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the community renewal area; zoning and planning changes, if any, which may include, among other things, changes related to land uses, densities, and building requirements; and the plan's relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements; (c) shall address the need for replacement housing, within the municipality, where existing housing is lost as a result of the community renewal project undertaken by the municipality under this chapter; and (d) may include a plan to address any persistent high levels of unemployment or poverty in the community renewal area.

(7) "Community renewal project" includes one or more undertakings or activities of a municipality in a community renewal area:  (a) For the elimination and the prevention of the development or spread of blight; (b) for encouraging economic growth through job creation or retention; (c) for redevelopment or rehabilitation in a community renewal area; or (d) any combination or part thereof in accordance with a community renewal plan.

(8) "Federal government" ((shall include)) includes the United States of America or any agency or instrumentality, corporate or otherwise, of the United States of America.

    (((6))) (9) "Local governing body" ((shall)) means the council or other legislative body charged with governing the municipality.

    (((7))) (10) "Mayor" ((shall)) means the chief executive of a city or town, or the elected executive, if any, of any county operating under a charter, or the county legislative authority of any other county.

    (((8))) (11) "Municipality" ((shall)) means any incorporated city or town, or any county, in the state.

    (((9))) (12) "Obligee" ((shall include)) includes any bondholder, agent, or trustees for any bondholders, ((or)) any lessor demising to the municipality property used in connection with ((an urban)) a community renewal project, or any assignee or assignees of such lessor's interest or any part thereof, and the federal government when it is a party to any contract with the municipality.

    (((10))) (13) "Person" ((shall)) means any individual, firm, partnership, corporation, company, association, joint stock association, or school district; and shall include any trustee, receiver, assignee, or other person acting in a similar representative capacity.

    (((11))) (14) "Persons of low income" means an individual with an annual income, at the time of hiring or at the time assistance is provided under this chapter, that does not exceed the higher of either:  (a) Eighty percent of the statewide median family income, adjusted for family size; or (b) eighty percent of the median family income for the county or standard metropolitan statistical area, adjusted for family size, where the community renewal area is located.

(15) "Public body" ((shall)) means the state or any municipality, ((township,)) board, commission, district, or any other subdivision or public body of the state or of a municipality.

    (((12))) (16) "Public officer" ((shall)) means any officer who is in charge of any department or branch of the government of the municipality relating to health, fire, building regulations, or to other activities concerning dwellings in the municipality.

    (((13))) (17) "Real property" ((shall)) includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest, right and use, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise.

    (((14))) (18) "Redevelopment" ((may)) includes (a) acquisition of a blighted area or portion thereof; (b) demolition and removal of buildings and improvements; (c) installation, construction or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out in the area the ((urban)) community renewal provisions of this chapter in accordance with the ((urban)) community renewal plan((, and)); (d) making the land available for development or redevelopment by private enterprise or public ((agencies)) bodies (including sale, initial leasing, or retention by the municipality itself) at its fair value for uses in accordance with the ((urban)) community renewal plan; and (e) making loans or grants to a person or public body for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

    (((15))) (19) "Rehabilitation" ((may)) includes the restoration and renewal of a blighted area or portion thereof, in accordance with ((an urban)) a community renewal plan, by (a) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements; (b) acquisition of real property and demolition or removal of buildings and improvements thereon where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, reduce traffic hazards, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities; (c) installation, construction or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out in the area the ((urban)) community renewal provisions of this chapter; and (d) the disposition of any property acquired in such ((urban)) community renewal area (((including sale, initial leasing, or retention by the municipality itself) at its fair value)) for uses in accordance with such ((urban)) community renewal plan.

    (((16) "Urban renewal area" means a blighted area which the local governing body designates as appropriate for an urban renewal project or projects.

    (17) "Urban renewal plan" means a plan, as it exists from time to time, for an urban renewal project, which plan (a) shall conform to the comprehensive plan or parts thereof for the municipality as a whole; and (b) shall be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the urban renewal area, zoning and planning changes, if any, land uses, maximum densities, building requirements, and the plan's relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements.

    (18) "Urban renewal project" may include undertakings or activities of a municipality in an urban renewal area for the elimination and for the prevention of the development or spread of blight, and may involve redevelopment in an urban renewal area, or rehabilitation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan.))

    Sec. 2.  RCW 35.81.020 and 1965 c 7 s 35.81.020 are each amended to read as follows:

    It is hereby found and declared that blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals and welfare of the residents of the state exist in municipalities of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime and depreciation of property values, constitutes an economic and social liability, substantially impairs or arrests the sound growth of municipalities, retards the provision of housing accommodations, hinders job creation and economic growth, aggravates traffic problems and substantially impairs or arrests the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of such areas is a matter of state policy and state concern in order that the state and its municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, are conducive to fires, are difficult to police and to provide police protection for, and, while contributing little to the tax income of the state and its municipalities, consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization and other forms of public protection, services, and facilities.

    It is further found and declared that certain of such areas, or portions thereof, may require acquisition, clearance, and disposition subject to use restrictions, as provided in this chapter, since the prevailing condition of decay may make impracticable the reclamation of the area by rehabilitation; that other areas or portions thereof may, through the means provided in this chapter, be susceptible of rehabilitation in such a manner that the conditions and evils hereinbefore enumerated may be eliminated, remedied or prevented; and that to the extent feasible salvable blighted areas should be rehabilitated through voluntary action and the regulatory process.

It is further found and declared that there is an urgent need to enhance the ability of municipalities to act effectively and expeditiously to revive blighted areas and to prevent further blight due to shocks to the economy of the state and their actual and threatened effects on unemployment, poverty, and the availability of private capital for businesses and projects in the area.

    It is further found and declared that the powers conferred by this chapter are for public uses and purposes for which public money may be expended and the power of eminent domain exercised; and that the necessity in the public interest for the provisions herein enacted is hereby declared as a matter of legislative determination.

    Sec. 3.  RCW 35.81.030 and 1965 c 7 s 35.81.030 are each amended to read as follows:

    A municipality, to the greatest extent it determines to be feasible in carrying out the provisions of this chapter, shall afford maximum opportunity, consistent with the ((sound)) needs of the municipality as a whole, to the rehabilitation or redevelopment of the ((urban)) community renewal area by private enterprise.  A municipality shall give consideration to this objective in exercising its powers under this chapter, including the formulation of a workable program, the approval of ((urban)) community renewal plans (consistent with the comprehensive plan or parts thereof for the municipality), the exercise of its zoning powers, the enforcement of other laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements, the disposition of any property acquired, and the provision of necessary public improvements.

    Sec. 4.  RCW 35.81.040 and 1965 c 7 s 35.81.040 are each amended to read as follows:

    A municipality for the purposes of this chapter may formulate a workable program for ((utilizing)) using appropriate private and public resources to eliminate, and prevent the development or spread of, blighted areas, to encourage needed ((urban)) community rehabilitation, to provide for the redevelopment of such areas, or to undertake ((such of)) the ((aforesaid)) activities, or other feasible municipal activities as may be suitably employed to achieve the objectives of ((such)) the workable program.  ((Such)) The workable program may include, without limitation, provision for:  The prevention of the spread of blight into areas of the municipality which are free from blight through diligent enforcement of housing, zoning, and occupancy controls and standards; the rehabilitation of blighted areas or portions thereof by replanning, removing congestion, providing parks, playgrounds and other public improvements, by encouraging voluntary rehabilitation and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; ((and)) the replacement of housing that is lost as a result of community renewal activities within a community renewal area; the clearance and redevelopment of blighted areas or portions thereof; and the reduction of unemployment and poverty within the community renewal area by providing financial or technical assistance to a person or public body that is used to create or retain jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

    Sec. 5.  RCW 35.81.050 and 1965 c 7 s 35.81.050 are each amended to read as follows:

(1) No municipality shall exercise any of the powers hereafter conferred upon municipalities by this chapter until after its local governing body shall have adopted ((a)) an ordinance or resolution finding that:  (((1))) (a) One or more blighted areas exist in such municipality; and (((2))) (b) the rehabilitation, redevelopment, or a combination thereof, of such area or areas is necessary in the interest of the public health, safety, morals, or welfare of the residents of such municipality.

(2) After adoption of the ordinance or resolution making the findings described in subsection (1) of this section, the local governing body of the municipality may elect to have the powers of a community renewal agency under this chapter exercised in one of the following ways:

(a) By appointing a board or commission composed of not less than five members, which board or commission shall include municipal officials and elected officials, selected by the mayor, with approval of the local governing body of the municipality; or

(b) By the local governing body of the municipality directly; or

(c) By the board of a public corporation, commission, or authority under chapter 35.21 RCW, or a public facilities district created under chapter 35.57 or 36.100 RCW, or a public port district created under chapter 53.04 RCW, or a housing authority created under chapter 35.82 RCW, that is authorized to conduct activities as a community renewal agency under this chapter.

    Sec. 6.  RCW 35.81.060 and 1965 c 7 s 35.81.060 are each amended to read as follows:

    (1) A municipality shall not approve ((an urban)) a community renewal project for ((an urban)) a community renewal area unless the local governing body has, by ordinance or resolution, determined such an area to be a blighted area and designated ((such)) the area as appropriate for ((an urban)) a community renewal project.  The local governing body shall not approve ((an urban)) a community renewal plan until a comprehensive plan or parts of ((such)) the plan for an area which would include ((an urban)) a community renewal area for the municipality have been prepared as provided in chapter ((35.63 RCW.  For this purpose and other municipal purposes, authority is hereby vested in every municipality to prepare, to adopt, and to revise from time to time, a comprehensive plan or parts thereof for the physical development of the municipality as a whole (giving due regard to the environs and metropolitan surroundings), to establish and maintain a planning commission for such purpose and related municipal planning activities, and to make available and to appropriate necessary funds therefor)) 36.70A RCW.  For municipalities not subject to the planning requirements of chapter 36.70A RCW, any proposed comprehensive plan must be consistent with a local comprehensive plan adopted under chapter 35.63 or 36.70 RCW, or any other applicable law.  A municipality shall not acquire real property for ((an urban)) a community renewal project unless the local governing body has approved the ((urban)) community renewal project plan in accordance with subsection (4) ((hereof)) of this section.

    (2) The municipality may itself prepare or cause to be prepared ((an urban)) a community renewal plan, or any person or agency, public or private, may submit such a plan to the municipality.  Prior to its approval of ((an urban)) a community renewal project, the local governing body shall ((submit such plan to the planning commission of the municipality for review and recommendations as to its conformity)) review and determine the conformity of the community renewal plan with the comprehensive plan or parts thereof for the development of the municipality as a whole.  ((The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within sixty days after receipt of it.  Upon receipt of the recommendations of the planning commission, or if no recommendations are received within sixty days, then without such recommendations, the local governing body may proceed with the hearing on the proposed urban renewal project plan prescribed by subsection (3) hereof))  If the community renewal plan is not consistent with the existing comprehensive plan, the local governing body may amend its comprehensive plan or community renewal plan.

    (3) Prior to adoption, the local governing body shall hold a public hearing on ((an urban)) a community renewal plan after providing public notice ((thereof)).  ((Such)) The notice shall be given by publication once each week for two consecutive weeks not less than ten nor more than thirty days prior to the date of the hearing in a newspaper having a general circulation in the ((urban)) community renewal area of the municipality and by mailing a notice of ((such)) the hearing not less than ten days prior to the date of the hearing to the persons whose names appear on the county treasurer's tax roll as the owner or reputed owner of the property, at the address shown on the tax roll.  The notice shall describe the time, date, place, and purpose of the hearing, shall generally identify the ((urban)) community renewal area affected, and shall outline the general scope of the ((urban)) community renewal plan under consideration.

    (4) Following ((such)) the hearing, the local governing body may approve ((an urban)) a community renewal project if it finds that (a) a ((workable and)) feasible plan exists for making available adequate housing for the ((persons)) residents who may be displaced by the project; (b) the ((urban)) community renewal plan conforms to the comprehensive plan ((or parts thereof)) for the municipality ((as a whole)); (c) the ((urban)) community renewal plan will afford maximum opportunity, consistent with the ((sound)) needs of the municipality ((as a whole)), for the rehabilitation or redevelopment of the ((urban)) community renewal area by private enterprise; ((and)) (d) a sound and adequate financial program exists for the financing of ((said)) the project; and (e) the ((urban)) community renewal project area is a blighted area as defined in RCW 35.81.010(2) (as recodified by this act).

    (5) ((An urban)) A community renewal project plan may be modified at any time by the local governing body((:  PROVIDED, That)).  However, if modified after the lease or sale by the municipality of real property in the ((urban)) community renewal project area, ((such)) the modification shall be subject to ((such)) the rights at law or in equity as a lessee or purchaser, or ((his)) the successor or successors in interest may be entitled to assert.

    (6) ((Upon the approval of an urban renewal project by a municipality, the provisions of the urban renewal plan with respect to the future use and building requirements applicable to the property covered by said plan shall be controlling with respect thereto)) Unless otherwise expressly stated in an ordinance or resolution of the governing body of the municipality, a community renewal plan shall not be considered a subarea plan or part of a comprehensive plan for purposes of chapter 36.70A RCW.  However, a municipality that has adopted a comprehensive plan under chapter 36.70A RCW may adopt all or part of a community renewal plan at any time as a new or amended subarea plan, whether or not any subarea plan has previously been adopted for all or part of the community renewal area.  Any community renewal plan so adopted, unless otherwise determined by the growth management hearings board with jurisdiction under a timely appeal in RCW 36.70A.280, shall be conclusively presumed to comply with the requirements in this chapter for consistency with the comprehensive plan.

    Sec. 7.  RCW 35.81.070 and 1965 c 7 s 35.81.070 are each amended to read as follows:

    Every municipality shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others ((herein)) granted under this chapter:

    (1) To undertake and carry out ((urban)) community renewal projects within the municipality, to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under this chapter, and to disseminate blight clearance and ((urban)) community renewal information.

    (2) To provide or to arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities or other facilities for, or in connection with, ((an urban)) a community renewal project; to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of ((an urban)) a community renewal project, and to include in any contract let in connection with such a project, provisions to fulfill such of said conditions as it may deem reasonable and appropriate.

    (3) To provide financial or technical assistance, using available public or private funds, to a person or public body for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

(4) To make payments, loans, or grants to, provide assistance to, and contract with existing or new owners and tenants of property in the community renewal areas as compensation for any adverse impacts, such as relocation or interruption of business, that may be caused by the implementation of a community renewal project, and/or consideration for commitments to develop, expand, or retain land uses that contribute to the success of the project or plan, including without limitation businesses that will create or retain jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

(5) To contract with a person or public body to provide financial assistance, authorized under this section, to property owners and tenants impacted by the implementation of the community renewal plan and to provide incentives to property owners and tenants to encourage them to locate in the community renewal area after adoption of the community renewal plan.

(6) Within the municipality, to enter upon any building or property in any ((urban)) community renewal area, in order to make surveys and appraisals, provided that such entries shall be made in such a manner as to cause the least possible inconvenience to the persons in possession, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted; to acquire by purchase, lease, option, gift, grant, bequest, devise, eminent domain, or otherwise, any real property and such personal property as may be necessary for the administration of the provisions herein contained, together with any improvements thereon; to hold, improve, clear, or prepare for redevelopment any such property; to dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance:  PROVIDED, That no statutory provision with respect to the acquisition, clearance, or disposition of property by public bodies shall restrict a municipality in the exercise of such functions with respect to ((an urban)) a community renewal project.

    (((4))) (7) To invest any ((urban)) community renewal project funds held in reserves or sinking funds or any such funds which are not required for immediate disbursement, in property or securities in which mutual savings banks may legally invest funds subject to their control; to redeem such bonds as have been issued pursuant to RCW 35.81.100 at the redemption price established therein or to purchase such bonds at less than redemption price, all such bonds so redeemed or purchased to be canceled.

    (((5))) (8) To borrow money and to apply for, and accept, advances, loans, grants, contributions and any other form of financial assistance from the federal government, the state, county, or other public body, or from any sources, public or private, for the purposes of this chapter, and to enter into and carry out contracts in connection therewith.  A municipality may include in any application or contract for financial assistance with the federal government for ((an urban)) a community renewal project such conditions imposed pursuant to federal laws as the municipality may deem reasonable and appropriate and which are not inconsistent with the purposes of this chapter.

    (((6))) (9) Within the municipality, to make or have made all plans necessary to the carrying out of the purposes of this chapter and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify, and amend such plans.  Such plans may include, without limitation:  (a) A comprehensive plan or parts thereof for the locality as a whole, (b) ((urban)) community renewal plans, (c) plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements, (d) plans for the enforcement of state and local laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements, ((and)) (e) appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of ((urban)) community renewal projects, and (f) plans to provide financial or technical assistance to a person or public body for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.  The municipality is authorized to develop, test, and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the elimination of ((urban)) blight, for job creation or retention activities, and to apply for, accept, and utilize grants of, funds from the federal government for such purposes.

    (((7))) (10) To prepare plans for the relocation of families displaced from ((an urban)) a community renewal area, and to coordinate public and private agencies in such relocation, including requesting such assistance for this purpose as is available from other private and governmental agencies, both for the municipality and other parties.

    (((8))) (11) To appropriate such funds and make such expenditures as may be necessary to carry out the purposes of this chapter, and in accordance with state law:  (a) Levy taxes and assessments for such purposes; (b) acquire land either by negotiation ((and/or)) or eminent domain, or both; (c) close, vacate, plan, or replan streets, roads, sidewalks, ways, or other places; (d) plan or replan, zone or rezone any part of the municipality; (e) adopt annual budgets for the operation of ((an urban)) a community renewal agency, department, or offices vested with ((urban)) community renewal project powers under RCW 35.81.150; and (f) enter into agreements with such agencies or departments (which agreements may extend over any period) respecting action to be taken by such municipality pursuant to any of the powers granted by this chapter.

    (((9))) (12) Within the municipality, to organize, coordinate, and direct the administration of the provisions of this chapter as they apply to such municipality in order that the objective of remedying blighted areas and preventing the causes thereof within such municipality may be most effectively promoted and achieved, and to establish such new office or offices of the municipality or to reorganize existing offices in order to carry out such purpose most effectively.

    (((10))) (13) To contract with a person or public body to assist in carrying out the purposes of this chapter.

(14) To exercise all or any part or combination of powers herein granted.

    Sec. 8.  RCW 35.81.080 and 1965 c 7 s 35.81.080 are each amended to read as follows:

    A municipality shall have the right to acquire by condemnation, in accordance with the procedure provided for condemnation by such municipality for other purposes, any interest in real property, which it may deem necessary for ((an urban)) a community renewal project under this chapter after the adoption by the local governing body of a resolution declaring that the acquisition of the real property described therein is necessary for such purpose.  Condemnation for ((urban)) community renewal of blighted areas is declared to be a public use, and property already devoted to any other public use or acquired by the owner or ((his)) a predecessor in interest by eminent domain may be condemned for the purposes of this chapter.

    The award of compensation for real property taken for such a project shall not be increased by reason of any increase in the value of the real property caused by the assembly, clearance, or reconstruction, or proposed assembly, clearance, or reconstruction in the project area.  No allowance shall be made for the improvements begun on real property after notice to the owner of such property of the institution of proceedings to condemn such property.  Evidence shall be admissible bearing upon the insanitary, unsafe, or substandard condition of the premises, or the unlawful use thereof.

    Sec. 9.  RCW 35.81.090 and 1965 c 7 s 35.81.090 are each amended to read as follows:

    (1) A municipality, with approval of its legislative authority, may acquire real property, or any interest therein, for the purposes of a community renewal project (a) prior to the selection of one or more persons interested in undertaking to redevelop or rehabilitate the real property, or (b) after the selection of one or more persons interested in undertaking to redevelop or rehabilitate such real property.  In either case the municipality may select a redeveloper through a competitive bidding process consistent with this section or through a process consistent with section 10 of this act.

(2) A municipality, with approval of its legislative authority, may sell, lease, or otherwise transfer real property or any interest therein acquired by it for ((an urban)) a community renewal project, in ((an urban)) a community renewal area for residential, recreational, commercial, industrial, or other uses or for public use, and may enter into contracts with respect thereto, or may retain such a property or interest only for parks and recreation, education, public utilities, public transportation, public safety, health, highways, streets, and alleys, administrative buildings, or civic centers, in accordance with the ((urban)) community renewal project plan, subject to such covenants, conditions, and restrictions, including covenants running with the land, as it may deem to be necessary or desirable to assist in preventing the development or spread of blighted areas or otherwise to carry out the purposes of this chapter((:  PROVIDED, That)).  However, such a sale, lease, other transfer, or retention, and any agreement relating thereto, may be made only after the approval of the ((urban)) community renewal plan by the local governing body.  The purchasers or lessees and their successors and assigns shall be obligated to devote ((such)) the real property only to the uses specified in the ((urban)) community renewal plan, and may be obligated to comply with ((such)) any other requirements as the municipality may determine to be in the public interest, including the obligation to begin and complete, within a reasonable time, any improvements on ((such)) the real property required by the ((urban)) community renewal plan or promised by the transferee.  ((Such)) The real property or interest shall be sold, leased, or otherwise transferred((, or retained at not less than its fair value for uses in accordance with the urban renewal plan)) for the consideration the municipality determines adequate.  In determining the ((fair value of real property for uses in accordance with the urban renewal plan)) adequacy of consideration, a municipality ((shall)) may take into account((, and give consideration to,)) the uses ((provided in such)) permitted under the community renewal plan; the restrictions upon, and the covenants, conditions, and obligations assumed by, the ((purchaser or lessee or by the municipality retaining the property)) transferee; and the public benefits to be realized, including furthering of the objectives of ((such)) the plan for the prevention of the recurrence of blighted areas.

(3) The municipality in any instrument of conveyance to a private purchaser or lessee may provide that ((such)) the purchaser or lessee shall be without power to sell, lease, or otherwise transfer the real property, or to permit changes in ownership or control of a purchaser or lessee that is not a natural person, in each case without the prior written consent of the municipality until ((he)) the purchaser or lessee has completed the construction of ((any and)) all improvements ((which he)) that it has obligated ((himself)) itself to construct thereon.  The municipality may also retain the right, upon any earlier transfer or change in ownership or control without consent; or any failure or change in ownership or control without consent; or any failure to complete the improvements within the time agreed to terminate the transferee's interest in the property; or to retain or collect on any deposit or instrument provided as security, or both.  The enforcement of these restrictions and remedies is declared to be consistent with the public policy of this state.  Real property acquired by a municipality ((which)) that, in accordance with the provisions of the ((urban)) community renewal plan, is to be transferred, shall be transferred as rapidly as feasible, in the public interest, consistent with the carrying out of the provisions of the ((urban)) community renewal plan.  The inclusion in any ((such)) contract or conveyance to a purchaser or lessee of any ((such)) covenants, restrictions, or conditions (including the incorporation by reference therein of the provisions of ((an urban)) a community renewal plan or any part thereof) shall not prevent the recording of such a contract or conveyance in the land records of the auditor or the county in which ((such)) the city or town is located, in ((such)) a manner ((as to)) that affords actual or constructive notice thereof.

    (((2))) (4)(a)(i) A municipality may dispose of real property in ((an urban)) a community renewal area, acquired by the municipality under this chapter, to any private persons only under ((such)) those reasonable competitive bidding procedures as it shall prescribe, or by competitive bidding as ((hereinafter)) provided in this subsection, through direct negotiation where authorized under (c) of this subsection, or by a process authorized in section 10 of this act.

(ii) A competitive bidding process may occur (A) prior to the purchase of the real property by the municipality, or (B) after the purchase of the real property by the municipality.

(b)(i) A municipality may, by public notice by publication once each week for three consecutive weeks in a newspaper having a general circulation in the community, prior to the execution of any contract or deed to sell, lease, or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite bids from, and make available all pertinent information to, private redevelopers or any persons interested in undertaking to redevelop or rehabilitate ((an urban)) a community renewal area, or any part thereof.  ((Such)) This notice shall identify the area, or portion thereof, and shall state that ((such)) further information as is available may be obtained at ((such)) the office as shall be designated in ((said)) the notice.

(ii) The municipality shall consider all responsive redevelopment or rehabilitation bids and the financial and legal ability of the persons making ((such)) the bids to carry them out.  The municipality may accept ((such)) the bids as it deems to be in the public interest and in furtherance of the purposes of this chapter.  Thereafter, the municipality may execute, in accordance with the provisions of subsection (((1))) (2) of this section, and deliver contracts, deeds, leases, and other instruments of transfer.

    (((3))) (c) If the legislative authority of the municipality determines that the sale of real property to a specific person is necessary to the success of a neighborhood revitalization or community renewal project for which the municipality is providing assistance to a nonprofit organization from federal community development block grant funds under 42 U.S.C. Sec. 5305(a)(15), or successor provision, under a plan or grant application approved by the United States department of housing and urban development, or successor agency, then the municipality may sell or lease that property to that person through direct negotiation, for consideration determined by the municipality to be adequate consistent with subsection (2) of this section.  This direct negotiation may occur, and the municipality may enter into an agreement for sale or lease, either before or after the acquisition of the property by the municipality.  Unless the municipality has provided notice to the public of the intent to sell or lease the property by direct negotiation, as part of a citizen participation process adopted under federal regulations for the plan or grant application under which the federal community development block grant funds have been awarded, the municipality shall publish notice of the sale at least fifteen days prior to the conveyance of the property.

(5) A municipality may operate and maintain real property acquired in ((an urban)) a community renewal area for a period of three years pending the disposition of the property for redevelopment, without regard to the provisions of subsection (((1) above)) (2) of this section, for such uses and purposes as may be deemed desirable even though not in conformity with the ((urban)) community renewal plan((:  PROVIDED, That)).  However, the municipality may, after a public hearing, extend the time for a period not to exceed three years.

(6) Any covenants, restrictions, promises, undertakings, releases, or waivers in favor of a municipality contained in any deed or other instrument accepted by any transferee of property from the municipality or community renewal agency under this chapter, or contained in any document executed by any owner of property in a community renewal area, shall run with the land to the extent provided in the deed, instrument, or other document, so as to bind, and be enforceable by the municipality against, the person accepting or making the deed, instrument, or other document and that person's heirs, successors in interest, or assigns having actual or constructive notice thereof.

NEW SECTION. Sec. 10.  A new section is added to chapter 35.81 RCW to read as follows:

    (1) The process authorized under this section may occur (a) prior to the purchase of the real property by the municipality, or (b) after the purchase of the real property by the municipality.

    (2) A municipality may, by public notice once each week for three consecutive weeks in a legal newspaper in the municipality, or prior to the execution of any contract or deed to sell, lease, or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite statements of interest and qualifications and, at the municipality's option, proposals from any persons interested in undertaking to redevelop or rehabilitate the real property.

    (3) The notice required under this section shall identify the area, or portion thereof, the process the municipality will use to evaluate qualifications and, if applicable, proposals submitted by redevelopers or any persons, and other information relevant to the community renewal project.  The notice shall also state that further information, as is available, may be obtained at the offices designated in the notice.

    (4)(a) Based on its evaluation of qualifications and, if applicable, proposals, the municipality may select a proposer with whom to negotiate or may select two or more finalists to submit proposals, or to submit more detailed or revised proposals.  The municipality may, in its sole discretion, reject all responses or proposals, amend any solicitation to allow modification or supplementation of qualifications or proposals, or waive irregularities in the content or timing of any qualifications or proposals.

    (b) The municipality may initiate negotiations with the person selected on the basis of qualifications or proposals.  If the municipality does not enter into a contract with that person, it may (i) enter into negotiations with the person that submitted the next highest ranked qualifications or proposal, (ii) solicit additional proposals using a process permitted by RCW 35.81.090, or (iii) otherwise dispose of or retain the real property consistent with the provisions of this chapter.  A municipality shall not be required to select or enter into a contract with any proposer or to compensate any proposer for the cost of preparing a proposal or negotiating with the municipality.

    (c) A municipality, with approval of its legislative authority, may select and enter into a contract with more than one proposer to carry out different aspects or parts of a community renewal plan.

    Sec. 11.  RCW 35.81.100 and 1983 c 167 s 64 are each amended to read as follows:

    (1) A municipality shall have the power to issue bonds from time to time in its discretion to finance the undertaking of any ((urban)) community renewal project under this chapter, including, without limiting the generality ((thereof)) of this power, the payment of principal and interest upon any advances for surveys and plans for ((urban)) community renewal projects, and shall also have power to issue refunding bonds for the payment or retirement of such bonds previously issued by it.  Such bonds shall not pledge the general credit of the municipality and shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues, and funds of the municipality derived from, or held in connection with, its undertaking and carrying out of ((urban)) community renewal projects under this chapter((:  PROVIDED, That)).  However, the payment of such bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant, or contribution from the municipality, the federal government, or from other sources, in aid of any ((urban)) community renewal projects of the municipality under this chapter.

    (2) Bonds issued under this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance, or sale of bonds.  Bonds issued under the provisions of this chapter are declared to be issued for an essential public and governmental purpose, and together with interest thereon and income therefrom, shall be exempted from all taxes.

    (3) Bonds issued under this section shall be authorized by resolution or ordinance of the local governing body and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form either coupon or registered as provided in RCW 39.46.030, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption (with or without premium), be secured in such manner, and have such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto.

    (4) Such bonds may be sold at not less than ninety-eight percent of par at public or private sale, or may be exchanged for other bonds on the basis of par:  PROVIDED, That such bonds may be sold to the federal government at private sale at not less than par and, in the event less than all of the authorized principal amount of such bonds is sold to the federal government, the balance may be sold at public or private sale at not less than ninety-eight percent of par at an interest cost to the municipality of not to exceed the interest cost to the municipality of the portion of the bonds sold to the federal government.

    (5)(a) The municipality may annually pay into a fund to be established for the benefit of such bonds any and all excess of the taxes received by it from the same property over and above the average of the annual taxes authorized without vote for a five-year period immediately preceding the acquisition of the property by the municipality for renewal purposes, such payment to continue until such time as all bonds payable from the fund are paid in full.  Any other taxing unit ((in a municipality)) that receives property tax revenues from property in the community renewal area is authorized to allocate ((a like amount of such)) excess taxes, computed in the same manner, to the municipality or municipalities in which it is situated.

(b) In addition to the excess property tax revenues from property in the community renewal area, authorized in this subsection, the municipality may annually pay into the fund, established in this subsection, any and all excess of the excise tax received by it from business activity in the community renewal area over and above the average of the annual excise tax collected for a five-year period immediately preceding the establishment of a community renewal area.  The payment may continue until all the bonds payable from the fund are paid in full.  Any other taxing unit that receives excise tax from business activity in the community renewal area is authorized to allocate excess excise tax, computed in the same manner, to the municipality or municipalities in which it is situated.  As used in this subsection, "excise tax" means a local retail sales and use tax authorized in chapter 82.14 RCW.  The legislature declares that it is a proper purpose of a municipality to allocate an excise tax for purposes of a community renewal project under this chapter.

    (6) In case any of the public officials of the municipality whose signatures appear on any bonds or any coupons issued under this chapter shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery.  Any provision of any law to the contrary notwithstanding, any bonds, issued pursuant to this chapter shall be fully negotiable.

    (7) In any suit, action, or proceeding involving the validity or enforceability of any bond issued under this chapter or the security therefor, any such bond reciting in substance that it has been issued by the municipality in connection with ((an urban)) a community renewal project, as herein defined, shall be conclusively deemed to have been issued for such purpose and such project shall be conclusively deemed to have been planned, located, and carried out in accordance with the provisions of this chapter.

    (8) Notwithstanding subsections (1) through (7) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.

    Sec. 12.  RCW 35.81.110 and 1965 c 7 s 35.81.110 are each amended to read as follows:

    All banks, trust companies, bankers, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking or investment business, all insurance companies, insurance associations, and other persons carrying on an insurance business and all executors, administrators, curators, trustees, and other fiduciaries, may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds or other obligations issued by a municipality ((pursuant to)) under this chapter((:  PROVIDED, That such bonds and other obligations shall be secured by an agreement between the issuer and the federal government in which the issuer agrees to borrow from the federal government and the federal government agrees to lend to the issuer, prior to the maturity of such bonds or other obligations, moneys in an amount which (together with any other moneys irrevocably committed to the payment of interest on such bonds or other obligations) will suffice to pay the principal of such bonds or other obligations with interest to maturity thereon, which moneys under the terms of said agreement are required to be used for the purpose of paying the principal of, and the interest on, such bonds or other obligations at their maturity)).  Such bonds and other obligations shall be authorized security for all public deposits.  It is the purpose of this section to authorize any persons, political subdivisions, and officers, public or private, to use any funds owned or controlled by them for the purchase of any such bonds or other obligations.  Nothing contained in this section with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities.

NEW SECTION. Sec. 13.  A new section is added to chapter 35.81 RCW to read as follows:

    (1) A community renewal agency may establish local improvement districts within the community renewal area, and levy special assessments, in annual installments extending over a period not exceeding twenty years on all property specially benefited by the local improvement, on the basis of special benefits, to pay in whole or in part the damages or costs of the local improvement, and issue local improvement bonds to be paid from local improvement assessments.  The formation of the local improvement districts, the determination, levy, and collection of such assessments, and the issuance of such bonds shall be as provided for the formation of local improvement districts, the determination, levy, and collection of local improvement assessments, and the issuance of local improvement bonds by cities and towns, insofar as consistent with this chapter.  These bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.

    (2) Notwithstanding subsection (1) of this section, the bonds authorized under subsection (1) of this section may be issued and sold in accordance with chapter 39.46 RCW.

NEW SECTION. Sec. 14.  A new section is added to chapter 35.81 RCW to read as follows:

    Any notice given to the public or to the owners of specific lots, tracts, or parcels of land relating to the formation of a local improvement district created under section 13 of this act shall contain a statement that actual assessments may vary from assessment estimates so long as they do not exceed a figure equal to the increased benefit the improvement adds to the property.

    Sec. 15.  RCW 35.81.120 and 1965 c 7 s 35.81.120 are each amended to read as follows:

    (1) All property of a municipality, including funds, owned or held by it for the purposes of this chapter, shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall judgment against a municipality be a charge or lien upon such property:  PROVIDED, That the provisions of this section shall not apply to, or limit the right of, obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this chapter by a municipality on its rents, fees, grants, or revenues from ((urban)) community renewal projects.

    (2) The property of a municipality, acquired or held for the purposes of this chapter, is declared to be public property used for essential public and governmental purposes and such property shall be exempt from all taxes of the municipality, the county, the state, or any political subdivision thereof:  PROVIDED, That such tax exemption shall terminate when the municipality sells, leases, or otherwise disposes of such property in ((an urban)) a community renewal area to a purchaser or lessee ((which)) that is not a public body or other organization normally entitled to tax exemption with respect to such property.

    Sec. 16.  RCW 35.81.130 and 1965 c 7 s 35.81.130 are each amended to read as follows:

    (((1))) For the purpose of aiding in the planning, undertaking, or carrying out of ((an urban)) a community renewal project located within the area in which it is authorized to act, any public body authorized by law or by this chapter, may, upon such terms, with or without consideration, as it may determine:  (((a))) (1) Dedicate, sell, convey, or lease any of its interest in any property, or grant easements, licenses, or other rights or privileges therein to a municipality or other public body; (((b))) (2) incur the entire expense of any public improvements made by ((such)) a public body, in exercising the powers granted in this section; (((c))) (3) do any and all things necessary to aid or cooperate in the planning or carrying out of ((an urban)) a community renewal plan; (((d))) (4) lend, grant, or contribute funds, including without limitation any funds derived from bonds issued or other borrowings authorized in this chapter, to a municipality or other public body and, subject only to any applicable constitutional limits, to any other person; (((e))) (5) enter into agreements (which may extend over any period, notwithstanding any provision or rule of law to the contrary) with a municipality or other public body respecting action to be taken pursuant to any of the powers granted by this chapter, including the furnishing of funds or other assistance in connection with ((an urban)) a community renewal project((, and (f))); (6) cause public building and public facilities, including parks, playgrounds, recreational, community, educational, water, sewer, or drainage facilities, or any other works ((which)) that it is otherwise empowered to undertake to be furnished; furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or replan streets, roads, sidewalks, ways, or other places; (7) abate environmental problems; (8) plan or replan, zone or rezone any part of the ((urban)) community renewal area; and (9) provide such administrative and other services as may be deemed requisite to the efficient exercise of the powers herein granted.

    (((2) Any sale, conveyance, lease, or agreement provided for in this section shall be made by a public body with appraisal, public notice, advertisement, or public bidding in accordance with the provisions of RCW 35.81.090(2).))

    Sec. 17.  RCW 35.81.150 and 1965 c 7 s 35.81.150 are each amended to read as follows:

    (1) A municipality may itself exercise its ((urban)) community renewal project powers (((as herein defined))) or may, if the local governing body by ordinance or resolution determines such action to be in the public interest, elect to have such powers exercised by the ((urban)) community renewal agency (((created by RCW 35.81.160))) or a department or other officers of the municipality or by any ((existing)) other public body ((corporate, as they are authorized to exercise under this chapter)).

    (2) In the event the local governing body ((makes such determination)) determines to have the powers exercised by the community renewal agency, such body may authorize the ((urban)) community renewal agency or department or other officers of the municipality to exercise any of the following ((urban)) community renewal project powers:

    (a) To formulate and coordinate a workable program as specified in RCW 35.81.040.

    (b) To prepare ((urban)) community renewal plans.

    (c) To prepare recommended modifications to ((an urban)) a community renewal project plan.

    (d) To undertake and carry out ((urban)) community renewal projects as required by the local governing body.

    (e) To acquire, own, lease, encumber, and sell real or personal property.  The agency may not acquire real or personal property using the eminent domain process, unless authorized independently of this chapter.

(f) To create local improvement districts under sections 13 and 14 of this act.

(g) To issue bonds from time to time in its discretion to finance the undertaking of any community renewal project under this chapter.  The bonds issued under this section must meet the requirements of RCW 35.81.100.

(h) To make and execute contracts as specified in RCW 35.81.070, with the exception of contracts for the purchase or sale of real or personal property.

    (((f))) (i) To disseminate blight clearance and ((urban)) community renewal information.

    (((g))) (j) To exercise the powers prescribed by RCW 35.81.070(2), except the power to agree to conditions for federal financial assistance and imposed pursuant to federal law relating to salaries and wages, shall be reserved to the local governing body.

    (((h))) (k) To enter any building or property, in any ((urban)) community renewal area, in order to make surveys and appraisals in the manner specified in RCW 35.81.070(((3))) (6).

    (((i))) (l) To improve, clear, or prepare for redevelopment any real or personal property in ((an urban)) a community renewal area.

    (((j))) (m) To insure real or personal property as provided in RCW 35.81.070(((3))) (6).

    (((k))) (n) To effectuate the plans provided for in RCW 35.81.070(((6))) (9).

    (((l))) (o) To prepare plans for the relocation of families displaced from ((an urban)) a community renewal area and to coordinate public and private agencies in such relocation.

    (((m))) (p) To prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements.

    (((n))) (q) To conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of ((urban)) community renewal projects.

    (((o))) (r) To negotiate for the acquisition of land.

    (((p))) (s) To study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places and to make recommendations with respect thereto.

    (((q))) (t) To provide financial and technical assistance to a person or public body, for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

(u) To make payments, grants, and other assistance to, or contract with, existing or new owners and tenants of property in the community renewal area, under RCW 35.81.070.

(v) To organize, coordinate, and direct the administration of the provisions of this chapter.

    (((r))) (w) To perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and the performance of the duties and responsibilities entrusted to the local governing body.

    Any powers granted in this chapter that are not included in ((RCW 35.81.150(2))) this subsection (2) as powers of the ((urban)) community renewal agency or a department or other officers of a municipality in lieu thereof((,)) may only be exercised by the local governing body or other officers, boards, and commissions as provided ((under existing)) by law.

    Sec. 18.  RCW 35.81.160 and 1965 c 7 s 35.81.160 are each amended to read as follows:

    (1) When a municipality has made the finding prescribed in RCW 35.81.050 and has elected to have the ((urban)) community renewal project powers, as specified in RCW 35.81.150, exercised, such ((urban)) community renewal project powers may be assigned to a department or other officers of the municipality or to any existing public body corporate, or the legislative body of a ((city)) municipality may create ((an urban)) a community renewal agency in such municipality to be known as a public body corporate to which such powers may be assigned.

    (2) If the ((urban)) community renewal agency is authorized to transact business and exercise powers ((hereunder)) under this chapter, the mayor, by and with the advice and consent of the local governing body, shall appoint a board of commissioners of the ((urban)) community renewal agency which shall consist of five commissioners.  The initial membership shall consist of one commissioner appointed for one year, one for two years, one for three years, and two for four years; and each appointment thereafter shall be for four years, except that in the case of death, incapacity, removal, or resignation of a commissioner, the replacement may be appointed to serve the remainder of the commissioner's term.

    (3) A commissioner shall receive no compensation for ((his)) services but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his or her duties.  Each commissioner shall hold office until ((his)) a successor has been appointed and has qualified.  A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the municipality and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner.

    The powers and responsibilities of ((an urban)) a community renewal agency shall be exercised by the commissioners thereof.  A majority of the commissioners shall constitute a quorum for the purpose of conducting business and exercising the powers and responsibilities of the agency and for all other purposes.  Action may be taken by the agency upon a vote of a majority of the commissioners present, unless in any case the bylaws shall require a larger number.  Any persons may be appointed as commissioners if they reside within the municipality.

    The ((urban)) community renewal agency or department or officers exercising ((urban)) community renewal project powers shall be staffed with the necessary technical experts and such other agents and employees, permanent and temporary, as it may require.  An agency authorized to transact business and exercise powers under this chapter shall file, with the local governing body, on or before March 31st of each year, a report of its activities for the preceding calendar year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expense as of the end of such calendar year.  At the time of filing the report, the agency shall publish in a legal newspaper ((of general circulation)) in the community a notice to the effect that such report has been filed with the municipality and that the report is available for inspection during business hours in the office of the ((city)) clerk of the municipality and in the office of the agency.

    (4) For inefficiency, neglect of duty, or misconduct in office, a commissioner may be removed by the legislative body of the municipality.

    Sec. 19.  RCW 35.81.170 and 1965 c 7 s 35.81.170 are each amended to read as follows:

    For all of the purposes of this chapter, no person shall, because of race, creed, color, sex, or national origin, be subjected to any discrimination.

    Sec. 20.  RCW 35.81.180 and 1965 c 7 s 35.81.180 are each amended to read as follows:

    No ((public)) official((,)) or department or division head of a municipality or ((urban)) community renewal agency or department or officers ((which have been vested by a municipality with urban)) with responsibility for making or supervising any decisions in the exercise of community renewal project powers and responsibilities under RCW 35.81.150((,)) shall voluntarily acquire any interest, direct or indirect, in any ((urban)) community renewal project, or in any property included or planned to be included in any ((urban)) community renewal project of such municipality, or in any contract or proposed contract in connection with such ((urban)) community renewal project.  ((Where)) Whether or not such an acquisition is ((not)) voluntary, the ((interest acquired)) person acquiring it shall ((be)) immediately ((disclosed)) disclose the interest acquired in writing to the local governing body and such disclosure shall be entered upon the minutes of the governing body.  If any such official((,)) or department or division head owns or controls, or owned or controlled within two years prior to the date of the first public hearing on the ((urban)) community renewal project, any interest, direct or indirect, in any property ((which)) that he or she knows is included in ((an urban)) a community renewal project, he or she shall immediately disclose this fact in writing to the local governing body, and such disclosure shall be entered upon the minutes of the governing body, and any such official((,)) or department or division head shall not participate in any action on that particular project by the municipality or ((urban)) community renewal agency((, department, or officers which have been vested with urban renewal project powers by the municipality pursuant to the provisions of RCW 35.81.150.  A majority of the commissioners of an urban renewal agency exercising powers pursuant to this chapter shall not hold any other public office under the municipality other than their commissionership or office with respect to such urban renewal agency, department, or officers)).  Any willful violation of the provisions of this section shall constitute misconduct in office.

    Sec. 21.  RCW 35.81.910 and 1965 c 7 s 35.81.910 are each amended to read as follows:

    This chapter shall be known and may be cited as the "((Urban)) Community Renewal Law."

    Sec. 22.  RCW 35.82.070 and 1993 c 478 s 17 are each amended to read as follows:

    An authority shall constitute a public body corporate and politic, exercising public and essential governmental functions, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others herein granted:

    (1) To sue and be sued; to have a seal and to alter the same at pleasure; to have perpetual succession; to make and execute contracts and other instruments, including but not limited to partnership agreements and joint venture agreements, necessary or convenient to the exercise of the powers of the authority; to participate in the organization or the operation of a nonprofit corporation which has as one of its purposes to provide or assist in the provision of housing for persons of low income; and to make and from time to time amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority.

    (2) Within its area of operation:  To prepare, carry out, acquire, lease and operate housing projects; to provide for the construction, reconstruction, improvement, alteration or repair of any housing project or any part thereof; to agree to rent or sell dwellings forming part of the projects to or for persons of low income.  Where an agreement or option is made to sell a dwelling to a person of low income, the authority may convey the dwelling to the person upon fulfillment of the agreement irrespective of whether the person is at the time of the conveyance a person of low income.  Leases, options, agreements, or conveyances may include such covenants as the authority deems appropriate to assure the achievement of the objectives of this chapter.

    (3) To acquire, lease, rent, sell, or otherwise dispose of any commercial space located in buildings or structures containing a housing project or projects.

    (4) To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof; and (notwithstanding anything to the contrary contained in this chapter or in any other provision of law) to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours of labor, and comply with any conditions which the federal government may have attached to its financial aid of the project.

    (5) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in any housing project and (subject to the limitations contained in this chapter) to establish and revise the rents or charges therefor; to own or manage buildings containing a housing project or projects as well as commercial space or other dwelling units that do not constitute a housing project as that term is defined in this chapter((:  PROVIDED, That)).  However, notwithstanding the provisions under subsection (1) of this section, dwelling units made available or sold to persons of low income, together with functionally related and subordinate facilities, shall occupy at least fifty percent of the interior space in the total development owned by the authority or at least fifty percent of the total number of units in the development owned by the authority, whichever produces the greater number of units for persons of low income, and for mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park owned by the authority; to own, hold, and improve real or personal property; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise including financial assistance and other aid from the state or any public body, person or corporation, any real or personal property or any interest therein; to acquire by the exercise of the power of eminent domain any real property; to sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest therein; to sell, lease, exchange, transfer, or dispose of any real or personal property or interest therein at less than fair market value to a governmental entity for any purpose when such action assists the housing authority in carrying out its powers and purposes under this chapter, to a low-income person or family for the purpose of providing housing for that person or family, or to a nonprofit corporation provided the nonprofit corporation agrees to sell the property to a low-income person or family or to use the property for the provision of housing for persons of low income for at least twenty years; to insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards; to procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds or parts thereof issued by an authority, including the power to pay premiums on any such insurance.

    (6) To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to purchase its bonds at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be canceled.

    (7) Within its area of operation:  To investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions; to determine where slum areas exist or where there is a shortage of decent, safe and sanitary dwelling accommodations for persons of low income; to make studies and recommendations relating to the problem of clearing, replanning and reconstructing of slum areas, and the problem of providing dwelling accommodations for persons of low income, and to cooperate with the city, the county, the state or any political subdivision thereof in action taken in connection with such problems; and to engage in research, studies and experimentation on the subject of housing.

    (8) Acting through one or more commissioners or other person or persons designated by the authority:  To conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information; to administer oaths, issue subpoenas requiring the attendance of witnesses or the production of books and papers and to issue commissions for the examination of witnesses who are outside of the state or unable to attend before the authority, or excused from attendance; to make available to appropriate agencies (including those charged with the duty of abating or requiring the correction of nuisances or like conditions, or of demolishing unsafe or insanitary structures within its area of operation) its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety or welfare.

    (9) To initiate eviction proceedings against any tenant as provided by law.  Activity occurring in any housing authority unit that constitutes a violation of chapter 69.41, 69.50 or 69.52 RCW shall constitute a nuisance for the purpose of RCW 59.12.030(5).

    (10) To exercise all or any part or combination of powers herein granted.

    No provisions of law with respect to the acquisition, operation or disposition of property by other public bodies shall be applicable to an authority unless the legislature shall specifically so state.

    (11) To agree (notwithstanding the limitation contained in RCW 35.82.210) to make such payments in lieu of taxes as the authority finds consistent with the achievement of the purposes of this chapter.

    (12) Upon the request of a county or city, to exercise any powers of ((an urban)) a community renewal agency under chapter 35.81 RCW or a public corporation, commission, or authority under chapter 35.21 RCW.  ((However, in the exercise of any such powers the housing authority shall be subject to any express limitations contained in this chapter.))

    (13) To exercise the powers granted in this chapter within the boundaries of any city, town, or county not included in the area in which such housing authority is originally authorized to function:  PROVIDED, HOWEVER, The governing or legislative body of such city, town, or county, as the case may be, adopts a resolution declaring that there is a need for the authority to function in such territory.

    (14) To administer contracts for assistance payments to persons of low income in accordance with section 8 of the United States Housing Act of 1937, as amended by Title II, section 201 of the Housing and Community Development Act of 1974, P.L. 93‑383.

    (15) To sell at public or private sale, with or without public bidding, for fair market value, any mortgage or other obligation held by the authority.

    (16) To the extent permitted under its contract with the holders of bonds, notes, and other obligations of the authority, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest security, or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the authority is a party.

    (17) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans to persons of low income to enable them to acquire, construct, reconstruct, rehabilitate, improve, lease, or refinance their dwellings, and to take such security therefor as is deemed necessary and prudent by the authority.

    (18) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans for the acquisition, construction, reconstruction, rehabilitation, improvement, leasing, or refinancing of land, buildings, or developments for housing for persons of low income.  For purposes of this subsection, development shall include either land or buildings or both.

    (a) Any development financed under this subsection shall be subject to an agreement that for at least twenty years the dwelling units made available to persons of low income together with functionally related and subordinate facilities shall occupy at least fifty percent of the interior space in the total development or at least fifty percent of the total number of units in the development, whichever produces the greater number of units for persons of low income.  For mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park.  During the term of the agreement, the owner shall use its best efforts in good faith to maintain the dwelling units or mobile home lots required to be made available to persons of low income at rents affordable to persons of low income.  The twenty-year requirement under this subsection (18)(a) shall not apply when an authority finances the development by nonprofit corporations or governmental units of dwellings or mobile home lots intended for sale to persons of low and moderate income, and shall not apply to construction or other short-term financing provided to nonprofit corporations or governmental units when the financing has a repayment term of one year or less.

    (b) In addition, if the development is owned by a for-profit entity, the dwelling units or mobile home lots required to be made available to persons of low income shall be rented to persons whose incomes do not exceed fifty percent of the area median income, adjusted for household size, and shall have unit or lot rents that do not exceed fifteen percent of area median income, adjusted for household size, unless rent subsidies are provided to make them affordable to persons of low income.

    For purposes of this subsection (18)(b), if the development is owned directly or through a partnership by a governmental entity or a nonprofit organization, which nonprofit organization is itself not controlled by a for-profit entity or affiliated with any for-profit entity that a nonprofit organization itself does not control, it shall not be treated as being owned by a for-profit entity when the governmental entity or nonprofit organization exercises legal control of the ownership entity and in addition, (i) the dwelling units or mobile home lots required to be made available to persons of low income are rented to persons whose incomes do not exceed sixty percent of the area median income, adjusted for household size, and (ii) the development is subject to an agreement that transfers ownership to the governmental entity or nonprofit organization or extends an irrevocable right of first refusal to purchase the development under a formula for setting the acquisition price that is specified in the agreement.

    (c) Commercial space in any building financed under this subsection that exceeds four stories in height shall not constitute more than twenty percent of the interior area of the building.  Before financing any development under this subsection the authority shall make a written finding that financing is important for project feasibility or necessary to enable the authority to carry out its powers and purposes under this chapter.

    (19) To contract with a public authority or corporation, created by a county, city, or town under RCW 35.21.730 through 35.21.755, to act as the developer for new housing projects or improvement of existing housing projects.

    Sec. 23.  RCW 35.21.730 and 1985 c 332 s 1 are each amended to read as follows:

    In order to improve the administration of authorized federal grants or programs, to improve governmental efficiency and services, or to improve the general living conditions in the urban areas of the state, any city, town, or county may by lawfully adopted ordinance or resolution:

    (1) Transfer to any public corporation, commission, or authority created ((hereunder)) under this section, with or without consideration, any funds, real or personal property, property interests, or services;

    (2) Organize and participate in joint operations or cooperative organizations funded by the federal government when acting solely as coordinators or agents of the federal government;

    (3) Continue federally-assisted programs, projects, and activities after expiration of contractual term or after expending allocated federal funds as deemed appropriate to fulfill contracts made in connection with such agreements or as may be proper to permit an orderly readjustment by participating corporations, associations, or individuals;

    (4) Enter into contracts with public corporations, commissions, and authorities for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW; and

(5) Create public corporations, commissions, and authorities to:  Administer and execute federal grants or programs; receive and administer private funds, goods, or services for any lawful public purpose; and perform any lawful public purpose or public function.  The ordinance or resolution shall limit the liability of such public corporations, commissions, and authorities to the assets and properties of such public corporation, commission, or authority in order to prevent recourse to such cities, towns, or counties or their assets or credit.

    Sec. 24.  RCW 35.21.745 and 1985 c 332 s 2 are each amended to read as follows:

(1) Any city, town, or county which shall create a public corporation, commission, or authority pursuant to RCW 35.21.730 or 35.21.660, shall provide for its organization and operations and shall control and oversee its operation and funds in order to correct any deficiency and to assure that the purposes of each program undertaken are reasonably accomplished.

(2) Any public corporation, commission, or authority created as provided in RCW 35.21.730 may be empowered to own and sell real and personal property; to contract with a city, town, or county to conduct community renewal activities under chapter 35.81 RCW; to contract with individuals, associations, and corporations, and the state and the United States; to sue and be sued; to loan and borrow funds and issue bonds and other instruments evidencing indebtedness; transfer any funds, real or personal property, property interests, or services; to do anything a natural person may do; and to perform all manner and type of community services((:  PROVIDED, That such)).  However, the public corporation, commission, or authority shall have no power of eminent domain nor any power to levy taxes or special assessments.

    Sec. 25.  RCW 35.57.020 and 1999 c 165 s 2 are each amended to read as follows:

    (1) A public facilities district is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate one or more regional centers.  For purposes of this chapter, "regional center" means a convention, conference, or special events center, or any combination of facilities, and related parking facilities, serving a regional population constructed, improved, or rehabilitated after July 25, 1999, at a cost of at least ten million dollars, including debt service.  "Regional center" also includes an existing convention, conference, or special events center, and related parking facilities, serving a regional population, that is improved or rehabilitated after July 25, 1999, where the costs of improvement or rehabilitation are at least ten million dollars, including debt service.  A regional center is conclusively presumed to serve a regional population if state and local government investment in the construction, improvement, or rehabilitation of the regional center is equal to or greater than ten million dollars.

    (2) A public facilities district may enter into contracts with any city or town for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.

(3) A public facilities district may impose charges and fees for the use of its facilities, and may accept and expend or use gifts, grants, and donations for the purpose of a regional center.

    (((3))) (4) A public facilities district may impose charges, fees, and taxes authorized in RCW 35.57.040, and use revenues derived therefrom for the purpose of paying principal and interest payments on bonds issued by the public facilities district to construct a regional center.

    (((4))) (5) Notwithstanding the establishment of a career, civil, or merit service system, a public facilities district may contract with a public or private entity for the operation or management of its public facilities.

    (((5))) (6) A public facilities district is authorized to use the supplemental alternative public works contracting procedures set forth in chapter 39.10 RCW in connection with the design, construction, reconstruction, remodel, or alteration of any regional center.

(7) A county or municipal corporation in conjunction with any special agency, authority, or other district established by a county or any other governmental agency is authorized to use the supplemental alternative public works contracting procedures set forth in chapter 39.10 RCW in connection with the design, construction, reconstruction, remodel, or alteration of any regional center funded in whole or in part by a public facilities district.

    Sec. 26.  RCW 36.100.010 and 1995 3rd sp.s. c 1 s 301 are each amended to read as follows:

    (1) A public facilities district may be created in any county and shall be coextensive with the boundaries of the county.

    (2) A public facilities district shall be created upon adoption of a resolution providing for the creation of such a district by the county legislative authority in which the proposed district is located.

    (3) A public facilities district is a municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

    (4) No taxes authorized under this chapter may be assessed or levied unless a majority of the voters of the public facilities district has approved such tax at a general or special election.  A single ballot proposition may both validate the imposition of the sales and use tax under RCW 82.14.048 and the excise tax under RCW 36.100.040.

    (5) A public facilities district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued.

    (6) A public facilities district may enter into contracts with a county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.

(7) The county legislative authority or the city council may transfer property to the public facilities district created under this chapter.  No property that is encumbered with debt or that is in need of major capital renovation may be transferred to the district without the agreement of the district and revenues adequate to retire the existing indebtedness.

NEW SECTION. Sec. 27.  A new section is added to chapter 53.08 RCW to read as follows:

    A port district may enter into a contract with any city, town, or county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.

NEW SECTION. Sec. 28.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 29.  (1) This act does not impair any authority granted, any actions undertaken, or any liability or obligation incurred under the sections amended in this act or under any rule, order, plan, or project adopted under those sections, nor does it impair any proceedings instituted under those sections.

    (2) Any power granted in this act with respect to a community renewal plan, and any process authorized for the exercise of the power, may be used by any municipality in implementing any urban renewal plan or project adopted under chapter 35.81 RCW, to the same extent as if the plan were adopted as a community renewal plan.

    (3) This act shall be liberally construed.

NEW SECTION. Sec. 30.  (1) RCW 35.81.010 is recodified as RCW 35.81.015.

    (2) RCW 35.81.020 is recodified as RCW 35.81.005."

SHB 2357 - S COMM AMD

By Committee on Economic Development & Telecommunications

                                                  ADOPTED 03/06/02

    On page 1, line 1 of the title, after "renewal;" strike the remainder of the title and insert "amending RCW 35.81.010, 35.81.020, 35.81.030, 35.81.040, 35.81.050, 35.81.060, 35.81.070, 35.81.080, 35.81.090, 35.81.100, 35.81.110, 35.81.120, 35.81.130, 35.81.150, 35.81.160, 35.81.170, 35.81.180, 35.81.910, 35.82.070, 35.21.730, 35.21.745, 35.57.020, and 36.100.010; adding a new section to chapter 53.08 RCW; adding new sections to chapter 35.81 RCW; creating a new section; and recodifying RCW 35.81.010 and 35.81.020."

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