BILL REQ. #: H-1009.1
|State of Washington||58th Legislature||2003 Regular Session|
Read first time 02/03/2003. Referred to Committee on Trade & Economic Development.
AN ACT Relating to creating the manufactured home purchase assistance program; and adding new sections to chapter 43.31 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The definitions in this section apply
throughout sections 1 through 4 of this act unless the context clearly
(1) "Department" means the department of community, trade, and economic development.
(2) "Director" means the director of the department of community, trade, and economic development.
(3) "Eligible person" means a person who meets the requirements set forth in section 3 of this act.
(4) "Income requirement" means an income level, set by the department in rule, that is below the median family income of the state.
(5) "Manufactured home purchase loan" means a loan for the purchase of a manufactured home, manufactured home lot, or manufactured home and lot that is guaranteed under the manufactured home purchase assistance program.
(6) "Lender" means banks, trust companies, savings and loan associations, credit unions, nonprofit housing organizations, or other financial institutions that provide manufactured home purchase loans.
(7) "Manufactured home" means a single-family dwelling built in accordance with the department of housing and urban development manufactured home construction and safety standards act, which is a national, preemptive building code.
(8) "Manufactured home standards" means the manufactured home construction and safety standards as promulgated by the United States department of housing and urban development.
NEW SECTION. Sec. 2 The manufactured home purchase assistance
program is created in the department to assist eligible persons in
obtaining manufactured home purchase loans.
(1) Lenders providing financing to an eligible person for a home purchase loan will be insured by the manufactured home purchase assistance program against default by the eligible person under the terms provided in sections 1 through 4 of this act.
(2) Before a lender makes a manufactured home purchase loan the lender must, pursuant to contract, establish the terms of the loan guarantee with the department before it will be insured under the assistance program. The manufactured home purchase loan must provide a fixed interest rate loan based upon the best prevailing market rate in the area at the time the loan is made.
(3) If an eligible person defaults, the lender may apply to the department for reimbursement for the defaulted amount in accordance with the terms of the contract between the department and lender.
NEW SECTION. Sec. 3 To qualify for a manufactured home purchase
loan a person must:
(1) Make a down payment of five percent of the value of the manufactured home, manufactured home lot, or manufactured home and lot;
(2) Demonstrate that they have current adequate income to make the payments on the loan and meet their other expenses, including a salary that is at least two and one-half times the value of the expected monthly payment on the home purchase loan;
(3) Not have declared bankruptcy under the federal bankruptcy code at any time within the past ten years;
(4) Provide documentation or other proof, as required by the department, that the person has been continuously employed for the three years prior to the loan guarantee request;
(5) Have a suitable site on which to place the manufactured home. The home may be placed on a rental site in a manufactured home park, or on an individual home site owned or leased by the borrowers. The site must meet the established local standards for site suitability and have adequate water supply and sewage disposal facilities.
NEW SECTION. Sec. 4 (1) The department may, pursuant to a
contract, agree to provide funds to a lender in the event an eligible
person has defaulted on a home purchase loan. The department shall not
guarantee additional loans if the available money to fund the program
does not equal or exceed the amount it would cost to repay lenders if
fifty percent of all current applicants defaulted on their home
(2) The manufactured home purchase assistance account is created in the custody of the state treasurer. The account shall contain all money allocated by the state to the account and any other money otherwise transferred into the account. Expenditures from the account must be used only to fund the manufactured home purchase assistance program as specified under this section and sections 1 through 3 of this act. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
NEW SECTION. Sec. 5 Sections 1 through 4 of this act are each
added to chapter 43.31 RCW.