H‑0178.1   _____________________________________________

HOUSE BILL 1819

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Kirby, Dunn, O'Brien, Wood, Jarrett, Dickerson and Conway

Read first time 02/06/2001.  Referred to Committee on Financial Institutions & Insurance.

_1      AN ACT Relating to housing finance; amending RCW 43.33A.080 and

_2  43.180.240; and adding a new section to chapter 43.180 RCW.

_3  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_4      NEW SECTION. Sec. 1.  A new section is added to chapter 43.180

_5  RCW to read as follows:

_6      (1) The commission, in cooperation with the state investment

_7  board, shall develop and implement a housing finance program that:

_8      (a) Provides subsidized or unsubsidized mortgage financing for

_9  single-family home ownership, including a single condominium unit,

10  located in the state of Washington;

11      (b) Requests the state investment board to make investments,

12  within its policies and investment guidelines, in mortgage-backed

13  securities that are collateralized by loans made within the state

14  of Washington; and

15      (c) Provides flexible loan underwriting guidelines, including,

16  but not limited to, provisions that will allow reduced downpayment

17  requirements for the purchaser.

18      (2) The housing finance program developed under subsection (1)

19  of this section shall:

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_1      (a) Be limited to active participants of the Washington state

_2  teachers= retirement system under chapter 41.32 RCW;

_3      (b) Be limited to borrowers with incomes that do not exceed one

_4  hundred fifteen percent of the state or county median family

_5  income, whichever is higher, adjusted for family size; and

_6      (c) Be limited to first-time home buyers as defined in RCW

_7  43.185A.010.

_8      (3) The commission, to the extent funds are available, may

_9  provide either down payment or closing costs' assistance to

10  households eligible for assistance under this chapter.

11      (4) The commission, in cooperation with the department of

12  retirement systems, shall notify active participants of the

13  Washington state teachers= retirement system of the availability of

14  mortgage financing through this section.

15      (5) This section may be known and cited as the Washington state

16  teachers= mortgage loan program.

17      Sec. 2.  RCW 43.33A.080 and 1987 c 29 s 2 are each amended to read

18  as follows:

19      The state investment board may invest those funds which are not

20  under constitutional prohibition in:  (1) Farm ownership and soil

21  and water conservation loans fully guaranteed as to principal and

22  interest under the Bankhead-Jones farm tenant act administered by

23  the United States department of agriculture; and (2) ((the

24  Washington land bank established by chapter 31.30 RCW)) subsidized

25  and unsubsidized mortgage loans made under section 1 of this act

26  that are secured by residential mortgage-backed securities

27  administered by the federal national mortgage association, the

28  government national mortgage association, or the federal home loan

29  mortgage corporation.

30      Sec. 3.  RCW 43.180.240 and 1994 c 235 s 3 are each amended to read

31  as follows:

32      (1) The commission shall submit to the legislature in its

33  annual report a summary of the progress of the housing finance

34  programs developed under RCW 43.180.220 and section 1 of this act.

35  The report shall include, but not be limited to the number of

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_1  loans made and location of property financed under RCW 43.180.220

_2  and ((43.180.230)) section 1 of this act.

_3      (2) The commission shall take such steps as are necessary to

_4  ensure that RCW 43.180.220 and 43.180.230 are implemented on June

_5  9, 1994.

_6      (3) The commission shall take necessary steps to ensure that

_7  section 1 of this act is implemented by September 1, 2001.

_8      NEW SECTION. Sec. 4.  If any provision of this act or its

_9  application to any person or circumstance is held invalid, the

10  remainder of the act or the application of the provision to other

11  persons or circumstances is not affected.

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