[atlas:bill]

AN ACT Relating to preservation of federally assisted housing by nonprofit organizations; creating new sections; and providing an expiration date.

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

NEW SECTION. Sec. 1. (1) The legislature finds that federally assisted housing provides a source of affordable housing for many seniors in Washington. The legislature further finds that owners of federally assisted housing have the option of either prepaying their mortgage or opting out of the program after a specified period of time. The legislature further finds that many nonprofit organizations have a desire to acquire federally assisted housing where the owner has decided to opt out of the program. The legislature further finds that many nonprofit organizations have difficulty in obtaining financing, on an expedited basis, in order to purchase federally assisted housing when it becomes available. The legislature further finds that there is a need to develop financing programs designed to respond to immediate financing needs of nonprofit organizations that are trying to purchase federally assisted housing where the owner is opting out of the program.

(2) It is the intent of the legislature to create a task force on federally assisted housing preservation to explore techniques designed to expedite financing to nonprofit organizations that want to purchase federally assisted housing developments where the owner is opting out of the program.

NEW SECTION. Sec. 2. (1) There is created the task force on federally assisted housing preservation to consist of twelve members. The task force consists of the following members:

(a) The chair of the Washington affordable housing advisory board, created under chapter 43.185B RCW, who shall serve as an ex officio member and as chair;

(b) The executive director of the Washington state investment board or the director's designee, who shall serve as an ex officio member;

(c) The executive director of the Washington housing finance commission or the director's designee, who shall serve as an ex officio member;

(d) The secretary of the department of social and health services or the secretary's designee, who shall serve as an ex officio member;

(e) Two representatives from nonprofit organizations that represent owners of federally assisted housing developments that serve seniors;

(f) Two representatives from for-profit organizations that represent owners of federally assisted housing developments that serve seniors;

(g) Three representatives from financial institutions involved in financing senior housing development, one representative must be from an investment and banking firm involved in financing federally insured assisted housing development; and

(h) One representative from a public housing authority.

(2) The director of the department of community, trade, and economic development shall appoint all nonex officio members to the task force on federally assisted housing preservation. The vice-chair of the task force is selected by majority vote of the task force members. The members of the task force shall serve without compensation.

(3) The department of community, trade, and economic development, the Washington state investment board, and the Washington state housing finance commission shall provide necessary information, assistance, and administrative and clerical assistance to the task force.

NEW SECTION. Sec. 3. The task force on federally assisted housing preservation shall:

(1) Review financing needs for the preservation, acquisition, or rehabilitation of federally assisted housing developments for seniors by nonprofit organizations;

(2) Review existing federal and state programs and incentives designed to assist in the preservation of federally assisted housing developments for seniors;

(3) Review techniques designed to expedite the acquisition financing of federally assisted housing developments for seniors, by nonprofit organizations, where the owner has opted out of the program. This would include, but not be limited to, streamlined loan underwriting, preapproved lines of credit for preservation purchases, and expedited loan approvals by public and private funding sources;

(4) Make recommendations on possible financing techniques that could be developed at the state level to assist nonprofit organizations in the preservation of federally assisted housing developments for seniors; and

(5) By December 1, 2001, prepare and submit to the appropriate committees of the legislature a report detailing its findings and recommendations regarding financing techniques designed to assist nonprofit organizations in the preservation, acquisition, or rehabilitation of federally assisted housing developments for seniors where the owner is planning to opt out of the program.

NEW SECTION. Sec. 4. This act expires February 1, 2002.