H-2960.1 _______________________________________________
HOUSE BILL 2725
_______________________________________________
State of Washington 57th Legislature 2002 Regular Session
By Representatives Upthegrove, Ericksen, O'Brien, McDermott, Edwards, Ogden, Chase, Haigh, Schual‑Berke and Wood
Read first time 01/25/2002. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to housing finance; amending RCW 43.180.240 and 43.33A.080; and adding a new section to chapter 43.180 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 43.180 RCW to read as follows:
(1) The commission, in cooperation with the state investment board, shall develop and implement a housing finance program that:
(a) Provides subsidized or unsubsidized mortgage financing for single-family home ownership, including a single condominium unit, located in the state of Washington;
(b) Requests the state investment board to make investments, within its policies and investment guidelines, in mortgage-backed securities that are collateralized by loans made within the state of Washington; and
(c) Provides flexible loan underwriting guidelines, including, but not limited to, provisions that will allow reduced down payment requirements for the purchaser.
(2) The housing finance program developed under subsection (1) of this section shall:
(a) Be limited to active participants of the Washington state teachers' retirement system under chapter 41.32 RCW;
(b) Be limited to borrowers with incomes that do not exceed one hundred fifteen percent of the state or county median family income, whichever is higher, adjusted for family size; and
(c) Be limited to first-time home buyers as defined in RCW 43.185A.010.
(3) The commission, to the extent funds are available, may provide either down payment or closing costs assistance to households eligible for assistance under this chapter.
(4) The commission, in cooperation with the department of retirement systems, shall notify active participants of the Washington state teachers' retirement system of the availability of mortgage financing through this section.
(5) This section may be known and cited as the Washington state teachers' mortgage loan program.
Sec. 2. RCW 43.180.240 and 1994 c 235 s 3 are each amended to read as follows:
(1) The commission
shall submit to the legislature in its annual report a summary of the progress
of the housing finance programs developed under RCW 43.180.220 and
section 1 of this act. The report shall include, but not be limited to the
number of loans made and location of property financed under RCW 43.180.220 and
((43.180.230)) section 1 of this act.
(2) The commission shall take such steps as are necessary to ensure that RCW 43.180.220 and 43.180.230 are implemented on June 9, 1994.
(3) The commission shall take such steps as are necessary to ensure that section 1 of this act is implemented by September 1, 2002.
Sec. 3. RCW 43.33A.080 and 1987 c 29 s 2 are each amended to read as follows:
The state investment
board may invest those funds which are not under constitutional prohibition
in: (1) Farm ownership and soil and water conservation loans fully guaranteed
as to principal and interest under the Bankhead-Jones farm tenant act
administered by the United States department of agriculture; and (2) ((the
Washington land bank established by chapter 31.30 RCW)) mortgage loans
made under section 1 of this act that are secured by residential
mortgage-backed securities administered by the federal national mortgage
association, the government national mortgage association, the federal home
loan mortgage corporation, or a private mortgage-backed securities corporation.
NEW SECTION. Sec. 4. 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.
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