S‑1786.1   _____________________________________________

SUBSTITUTE SENATE BILL 5137

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senate Committee on Labor, Commerce & Financial Institutions (originally sponsored by Senators Fairley, McAuliffe, Kohl‑Welles, Kastama, Rasmussen, Haugen, Gardner, Patterson, Kline, Shin, Regala, Costa and Winsley)

READ FIRST TIME 02/21/01. 

_1      AN ACT Relating to a low-income home ownership loan program;

_2  and adding new sections to chapter 43.185A 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 43.185A

_5  RCW to read as follows:

_6      (1) To the extent that funds are available, the department

_7  shall establish a low-income home ownership loan program for

_8  families:  (a) For which one or more members have received services

_9  authorized under chapter 74.12 RCW, temporary assistance for needy

10  families; (b) whose adjusted income is less than two hundred

11  percent of the federal poverty guidelines; and (c) that include

12  one or more children under eighteen years of age.  The department

13  will capitalize revolving loan funds through grants to eligible

14  public and nonprofit organizations which demonstrate capacity to

15  administer a low-income home ownership loan program.  The

16  organizations will be responsible for lending funds to families,

17  collecting repayments, and depositing repayments into the

18  revolving fund.  These repayments will be used to assist additional

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_1  families.  The organizations shall make loans without interest or at

_2  a rate that is below the market interest rate.  The loans shall be

_3  awarded on the basis of the family's need, the family's ability to

_4  repay the loan, and the willingness of the family to meet minimum

_5  requirements to participate in the construction of their home or

_6  the homes of other participating families.  The department shall

_7  seek to achieve a geographic distribution of loans that is

_8  proportional to the state's distribution of eligible families.

_9      (2) The department may contract with public and nonprofit

10  organizations for the administration of the low-income home

11  ownership loan program and supervision of the minimum

12  participation requirements.

13      (3) The department shall adopt rules providing for the

14  administration of the low-income home ownership loan program,

15  including eligibility, application, and repayment provisions and

16  establishing minimum requirements for participation in the home

17  construction.

18      NEW SECTION. Sec. 2.  A new section is added to chapter 43.185A

19  RCW to read as follows:

20      The low-income home ownership loan account is created in the

21  custody of the state treasurer.  Expenditures from the account may

22  be used only for the purposes of the low-income home ownership

23  loan program established under section 1 of this act.  Only the

24  director of community, trade, and economic development or the

25  director's designee may authorize expenditures from the

26  account.  The account is subject to the allotment procedures under

27  chapter 43.88 RCW, but an appropriation is not required for

28  expenditures.

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