S‑0646.1   _____________________________________________

SENATE BILL 5137

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senators Fairley, McAuliffe, Kohl‑Welles, Kastama, Rasmussen, Haugen, Gardner, Patterson, Kline, Shin, Regala, Costa and Winsley

Read first time 01/12/2001.  Referred to Committee on Labor, Commerce & Financial Institutions.

_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.  Loans shall be

13  made from moneys in the low-income home ownership loan account and

14  all proceeds from the repayment of loans shall be deposited in the

15  low-income home ownership account.  The loans shall be made without

16  interest or at a rate that is below the market interest rate.  The

17  loans shall be awarded on the basis of the family's need, the

18  family's ability to repay the loan, and the willingness of the

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_1  family to meet minimum requirements to participate in the

_2  construction of their home or the homes of other participating

_3  families.  The department shall seek to achieve a geographic

_4  distribution of loans that is proportional to the state's

_5  distribution of eligible families.

_6      (2) The department may contract with public and nonprofit

_7  organizations for the administration of the low-income home

_8  ownership loan program and supervision of the minimum

_9  participation requirements.

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

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

12  including eligibility, application, and repayment provisions and

13  establishing minimum requirements for participation in the home

14  construction.

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

16  RCW to read as follows:

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

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

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

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

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

22  director's designee may authorize expenditures from the

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

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

25  expenditures.

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