BILL REQ. #:  H-4134.1 

Read first time 01/21/2004.   Referred to Committee on Local Government.

     AN ACT Relating to relocation assistance payments to low-income tenants; amending RCW 59.18.440 and 35.80.030; creating a new section; and prescribing penalties.

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

NEW SECTION.  Sec. 1   The people of the state of Washington deserve decent, safe, and sanitary housing. Certain tenants in the state of Washington have remained in rental housing that does not meet the state's minimum standards for health and safety because they cannot afford to pay two or three months' rent to a new landlord in advance of occupying new and safer housing. In egregious cases, authorities have been forced to condemn property when property owners have failed to remedy building code or health code violations after repeated notice, and, as a result, families with limited financial resources have been displaced and left with nowhere to go.
     The purpose of this act is to establish a process, consistent throughout the state, by which low-income tenants would receive funds for relocation from property owners who fail to provide safe and sanitary housing after due notice of building code or health code violations. It is also the purpose of this act to establish a review process, available to property owners and tenants, and to provide enforcement mechanisms to cities, towns, counties, or municipal corporations including the ability to advance relocation funds to tenants who are displaced as a result of a property owner's failure to remedy building code or health code violations and later to collect the full amounts of these relocation funds, along with interest and penalties, from property owners.

Sec. 2   RCW 59.18.440 and 1997 c 452 s 17 are each amended to read as follows:
     (1) Any city, town, county, or municipal corporation that is required to develop a comprehensive plan under RCW 36.70A.040(1) is authorized to require, after reasonable notice to the public and a public hearing, property owners to provide their portion of reasonable relocation assistance to low-income tenants upon the demolition, substantial rehabilitation whether due to code enforcement or any other reason, or change of use of residential property, or upon the removal of use restrictions in an assisted-housing development.
     (2) Each city, town, county, or municipal corporation shall require property owners to provide reasonable relocation assistance to low-income tenants if a local health officer or official from a local health district or health department exercising his or her emergency power or a local building inspector determines that a residential property is unfit for human habitation and that determination results in the eviction or displacement of tenants.
     (3) No city, town, county, or municipal corporation may require property owners to provide relocation assistance to low-income tenants, as defined in this chapter, upon the demolition, substantial rehabilitation, upon the change of use of residential property, or upon the removal of use restrictions in an assisted-housing development, except as expressly authorized ((herein)) by this chapter or when authorized or required by state or federal law.
     (4) As used in this section((,)):
     (a) "Assisted housing development" means a multifamily rental housing development that either receives government assistance and is defined as federally assisted housing in RCW 59.28.020, or that receives other federal, state, or local government assistance and is subject to use restrictions((.));
     (((2) As used in this section,)) (b) "Low-income tenants" means tenants whose combined total income per dwelling unit is at or below fifty percent of the median income, adjusted for family size, in the county where the tenants reside.
     The department of community, trade, and economic development shall adopt rules defining county median income in accordance with the definitions promulgated by the federal department of housing and urban development.
     (((3) A requirement that property owners provide relocation assistance shall include the amounts of such assistance to be provided to low-income tenants.)) (5) In determining ((such)) the amounts((, the jurisdiction imposing the requirement)) of relocation assistance due to low-income tenants, each city, town, county, or municipal corporation shall evaluate, and receive public testimony on, what relocation expenses displaced tenants would reasonably incur in that jurisdiction including:
     (a) Actual physical moving costs and expenses;
     (b) Advance payments required for moving into a new residence such as the cost of first and last month's rent and security and damage deposits;
     (c) Utility connection fees and deposits; and
     (d) Anticipated additional rent and utility costs in the residence for one year after relocation.
     (((4))) (6)(a) Relocation assistance provided to low-income tenants under this section shall not exceed two thousand dollars for each dwelling unit displaced by actions of the property owner under subsection (1) of this section. A city, town, county, or municipal corporation may make future annual adjustments to the maximum amount of relocation assistance required under this subsection in order to reflect any changes in the housing component of the consumer price index as published by the United States department of labor, bureau of labor statistics.
     (b) The property owner's portion of any relocation assistance provided to low-income tenants under this section shall not exceed one-half of the required relocation assistance under (a) of this subsection in cash or services. However, if low-income tenants of residential property are displaced because a local health officer or official from a local health district or health department exercising his or her emergency power or a local building inspector determines that a residential property is unfit for human habitation and that determination results in the eviction or displacement of tenants, the property owner shall pay the full amount of relocation assistance provided to low-income tenants required under (a) of this subsection.
     (c) The portion of relocation assistance not covered by the property owner under (b) of this subsection shall be paid by the city, town, county, or municipal corporation authorized to require relocation assistance under subsection (1) of this section. The relocation assistance may be paid from proceeds collected from the excise tax imposed under RCW 82.46.010.
     (((5))) (7) A city, town, county, or municipal corporation requiring the provision of relocation assistance under this section shall adopt policies, procedures, or regulations to implement ((such requirement. Such)) this section. These policies, procedures, or regulations shall include procedures for determining the eligibility of tenants to relocation assistance payments under subsection (2) of this section and provisions for administrative hearings to resolve disputes between tenants and property owners relating to relocation assistance or unlawful detainer actions during relocation, and shall require a decision within thirty days of a request for a hearing by either a tenant or property owner. This subsection does not preclude a city, town, county, or municipal corporation from adopting policies, procedures, or regulations that provide for administrative hearings and review on relocation assistance matters in the same fora as those that also hear complaints and appeals regarding building code violations and deficiencies.
     Judicial review of an administrative hearing decision relating to relocation assistance may be had by filing a petition, within ten days of the decision, in the superior court in the county where the residential property is located. Judicial review shall be confined to the record of the administrative hearing and the court may reverse the decision only if the administrative findings, inferences, conclusions, or decision is:
     (a) In violation of constitutional provisions;
     (b) In excess of the authority or jurisdiction of the administrative hearing officer;
     (c) Made upon unlawful procedure or otherwise is contrary to law; or
     (d) Arbitrary and capricious.
     (((6))) (8) In cases under subsection (2) of this section, the property owner shall pay relocation assistance to eligible low-income tenants within seven days from the time that notice of the names of eligible low-income tenants and amounts of relocation assistance due is sent by the city, town, county, or municipal corporation. The property owner can satisfy this requirement by making individual payments to eligible low-income tenants or by providing a certified check to the authority ordering relocation assistance. If the property owner fails to complete payment of relocation assistance within seven days of the notice being sent, the city, town, county, or municipal corporation may advance the cost of the relocation assistance payments to the eligible low-income tenants.
     (9) Any city, town, county, or municipal corporation may require relocation assistance, under the terms of this section, for otherwise eligible tenants whose living arrangements are exempted from the provisions of this chapter under RCW 59.18.040(3) and if the living arrangement is considered to be a rental or lease not defined as a retail sale under RCW 82.04.050.
     (((7))) (10) Except as provided in subsection (11) of this section:
     (a) Persons who move from a dwelling unit prior to the application by the owner of the dwelling unit for any governmental permit necessary for the demolition, substantial rehabilitation, or change of use of residential property or prior to any notification or filing required for condominium conversion shall not be entitled to the assistance authorized by this section.
     (b) Persons who move into a dwelling unit after the application for any necessary governmental permit or after any required condominium conversion notification or filing shall not be entitled to the assistance authorized by this section if such persons receive written notice from the property owner prior to taking possession of the dwelling unit that specifically describes the activity or condition that may result in their temporary or permanent displacement and advises them of their ineligibility for relocation assistance.
     (11) During a period from the date that a building inspector, building official, or health official first notifies the property owner of a building code or health code violation or deficiency, to the time that relocation assistance payments are paid to eligible tenants, the property owner shall not:
     (a) Evict, harass, or intimidate tenants into vacating their units for the purpose of avoiding or diminishing application of this section;
     (b) Reduce services to any tenant; or
     (c) Materially increase or change the obligations of any tenant, including unreasonably increasing the rent.
     (12) Low-income tenants who are evicted or vacate as a result of the conduct proscribed by subsection (11) of this section prior to receiving relocation assistance payments, may be eligible for relocation assistance payments, as determined in accordance with the policies, procedures, or regulations adopted by a city, town, county, or municipal corporation under subsection (7) of this section.
     (13) If, after thirty days from the date that the city, town, county, or municipal corporation first advanced relocation assistance funds to the displaced tenants, a property owner has failed to repay the amount of relocation assistance advanced by the city, town, county, or municipal corporation under subsection (8) of this section, then the city, town, county, or municipal corporation shall assess civil penalties in the amount of fifty dollars per day for each tenant to whom the city, town, county, or municipal corporation has advanced a relocation assistance payment.
     (14) In addition to the penalties set forth in subsection (13) of this section, interest will accrue on the amount of relocation assistance paid by the city, town, county, or municipal corporation for which the property owner has not reimbursed the city, town, county, or municipal corporation. The rate of interest shall be the maximum legal rate of interest permitted under RCW 19.52.020, commencing thirty days after the date that the city first advanced relocation assistance funds to the displaced tenants.
     (15) If the city, town, county, or municipal corporation must initiate legal action in order to recover the amount of relocation assistance payments that it has advanced to low-income tenants, including any interest and penalties under subsections (13) and (14) of this section, the city, town, county, or municipal corporation shall be entitled to attorneys' fees and costs arising from its legal action.

Sec. 3   RCW 35.80.030 and 1989 c 133 s 3 are each amended to read as follows:
     (1) Whenever the local governing body of a municipality finds that one or more conditions of the character described in RCW 35.80.010 exist within its territorial limits, ((said)) that governing body may adopt ordinances relating to such dwellings, buildings, structures, or premises. Such ordinances may provide for the following:
     (a) That an "improvement board" or officer be designated or appointed to exercise the powers assigned to such board or officer by the ordinance as specified ((herein. Said)) in this section. The board or officer may be an existing municipal board or officer in the municipality, or may be a separate board or officer appointed solely for the purpose of exercising the powers assigned by ((said)) the ordinance.
     If a board is created, the ordinance shall specify the terms, method of appointment, and type of membership of ((said)) the board, which may be limited, if the local governing body chooses, to public officers ((as herein defined)) under this section.
     (b) that if a board is created, a public officer, other than a member of the improvement board, may be designated to work with the board and carry out the duties and exercise the powers assigned to ((said)) the public officer by the ordinance.
     (c) That if, after a preliminary investigation of any dwelling, building, structure, or premises, the board or officer finds that it is unfit for human habitation or other use, he or she shall cause to be served either personally or by certified mail, with return receipt requested, upon all persons having any interest therein, as shown upon the records of the auditor's office of the county in which such property is located, and shall post in a conspicuous place on such property, a complaint stating in what respects such dwelling, building, structure, or premises is unfit for human habitation or other use. If the whereabouts of any of such persons is unknown and the same cannot be ascertained by the board or officer in the exercise of reasonable diligence, and the board or officer makes an affidavit to that effect, then the serving of such complaint or order upon such persons may be made either by personal service or by mailing a copy of the complaint and order by certified mail, postage prepaid, return receipt requested, to each such person at the address of the building involved in the proceedings, and mailing a copy of the complaint and order by first class mail to any address of each such person in the records of the county assessor or the county auditor for the county where the property is located. Such complaint shall contain a notice that a hearing will be held before the board or officer, at a place therein fixed, not less than ten days nor more than thirty days after the serving of ((said)) the complaint; and that all parties in interest shall be given the right to file an answer to the complaint, to appear in person, or otherwise, and to give testimony at the time and place in the complaint. The rules of evidence prevailing in courts of law or equity shall not be controlling in hearings before the board or officer. A copy of such complaint shall also be filed with the auditor of the county in which the dwelling, building, structure, or ((premise [premises])) premises is located, and such filing of the complaint or order shall have the same force and effect as other lis pendens notices provided by law.
     (d) That the board or officer may determine that a dwelling, building, structure, or premises is unfit for human habitation or other use if it finds that conditions exist in such dwelling, building, structure, or premises which are dangerous or injurious to the health or safety of the occupants of such dwelling, building, structure, or premises, the occupants of neighboring dwellings, or other residents of such municipality. Such conditions may include the following, without limitations: Defects therein increasing the hazards of fire or accident; inadequate ventilation, light, or sanitary facilities, dilapidation, disrepair, structural defects, uncleanliness, overcrowding, or inadequate drainage. The ordinance shall state reasonable and minimum standards covering such conditions, including those contained in ordinances adopted in accordance with ((subdivision)) subsection (7)(a) ((herein)) of this section, to guide the board or the public officer and the agents and employees of either, in determining the fitness of a dwelling for human habitation, or building, structure, or premises for other use.
     (e) That the determination of whether a dwelling, building, structure, or premises should be repaired or demolished, shall be based on specific stated standards on (i) the degree of structural deterioration of the dwelling, building, structure, or premises, or (ii) the relationship that the estimated cost of repair bears to the value of the dwelling, building, structure, or premises, with the method of determining this value to be specified in the ordinance.
     (f) That if, after the required hearing, the board or officer determines that the dwelling is unfit for human habitation, or building or structure or premises is unfit for other use, it shall state in writing its findings of fact in support of such determination, and shall issue and cause to be served upon the owner or party in interest thereof, as is provided in ((subdivision (1))) (c) of this subsection, and shall post in a conspicuous place on ((said)) the property, an order ((which)) that (i) requires the owner or party in interest, within the time specified in the order, to repair, alter, or improve such dwelling, building, structure, or premises to render it fit for human habitation, or for other use, or to vacate and close the dwelling, building, structure, or premises, if such course of action is deemed proper on the basis of the standards set forth as required in ((subdivision (1))) (e) of this subsection; or (ii) requires the owner or party in interest, within the time specified in the order, to remove or demolish such dwelling, building, structure, or premises, if this course of action is deemed proper on the basis of ((said)) those standards. If no appeal is filed, a copy of such order shall be filed with the auditor of the county in which the dwelling, building, structure, or premises is located.
     (g) That the owner or any party in interest, within thirty days from the date of service upon the owner and posting of an order issued by the board under ((the provisions of subdivision)) (c) of this subsection, may file an appeal with the appeals commission.
     The local governing body of the municipality shall designate or establish a municipal agency to serve as the appeals commission. The local governing body shall also establish rules of procedure adequate to assure a prompt and thorough review of matters submitted to the appeals commission, and such rules of procedure shall include the following, without being limited thereto: (i) All matters submitted to the appeals commission must be resolved by the commission within sixty days from the date of filing therewith and (ii) a transcript of the findings of fact of the appeals commission shall be made available to the owner or other party in interest upon demand.
     The findings and orders of the appeals commission shall be reported in the same manner and shall bear the same legal consequences as if issued by the board, and shall be subject to review only in the manner and to the extent provided in ((subdivision)) subsection (2) of this section.
     If the owner or party in interest, following exhaustion of his or her rights to appeal, fails to comply with the final order to repair, alter, improve, vacate, close, remove, or demolish the dwelling, building, structure, or premises, the board or officer may direct or cause such dwelling, building, structure, or premises to be repaired, altered, improved, vacated, and closed, removed, or demolished.
     (h) That the amount of the cost of such repairs, alterations or improvements; or vacating and closing; or removal or demolition by the board or officer, shall be assessed against the real property upon which such cost was incurred unless such amount is previously paid. For purposes of this subsection, the cost of vacating and closing shall include (i) the amount of relocation assistance payments that a property owner has not repaid to a municipality or other local government entity that has advanced relocation assistance payments to low-income tenants under RCW 59.18.440(8) and (ii) all penalties and interest that accrue as a result of the failure of the property owner to timely repay the amount of these relocation assistance payments under RCW 59.18.440 (13) and (14). Upon certification to him or her by the treasurer of the municipality in cases arising out of the city or town or by the county improvement board or officer, in cases arising out of the county, of the assessment amount being due and owing, the county treasurer shall enter the amount of such assessment upon the tax rolls against the property for the current year and the same shall become a part of the general taxes for that year to be collected at the same time and with interest at such rates and in such manner as provided for in RCW 84.56.020((, as now or hereafter amended,)) for delinquent taxes, and when collected to be deposited to the credit of the general fund of the municipality. If the dwelling, building, structure, or premises is removed or demolished by the board or officer, the board or officer shall, if possible, sell the materials of such dwelling, building, structure, (([or])) or premises in accordance with procedures set forth in ((said)) the ordinance, and shall credit the proceeds of such sale against the cost of the removal or demolition and if there be any balance remaining, it shall be paid to the parties entitled thereto, as determined by the board or officer, after deducting the costs incident thereto.
     The assessment shall constitute a lien against the property which shall be of equal rank with state, county and municipal taxes.
     (2) Any person affected by an order issued by the appeals commission pursuant to ((subdivision (1)(f) hereof)) subsection (1)(g) of this section may, within thirty days after the posting and service of the order, petition to the superior court for an injunction restraining the public officer or members of the board from carrying out the provisions of the order. In all such proceedings the court is authorized to affirm, reverse, or modify the order and such trial shall be heard de novo.
     (3) An ordinance adopted by the local governing body of the municipality may authorize the board or officer to exercise such powers as may be necessary or convenient to carry out and effectuate the purposes and provisions of this section. These powers shall include the following in addition to others ((herein)) granted in this section: (a)(i) To determine which dwellings within the municipality are unfit for human habitation; (ii) to determine which buildings, structures, or premises are unfit for other use; (b) to administer oaths and affirmations, examine witnesses, and receive evidence; and (c) to investigate the dwelling and other property conditions in the municipality or county and to enter upon premises for the purpose of making examinations when the board or officer has reasonable ground for believing they are unfit for human habitation, or for other use: PROVIDED, That such entries shall be made in such manner as to cause the least possible inconvenience to the persons in possession, and to obtain an order for this purpose after submitting evidence in support of an application which is adequate to justify such an order from a court of competent jurisdiction in the event entry is denied or resisted.
     (4) The local governing body of any municipality adopting an ordinance pursuant to this chapter may appropriate the necessary funds to administer such ordinance.
     (5) ((Nothing in)) This section ((shall be construed to)) does not abrogate or impair the powers of the courts or of any department of any municipality to enforce any provisions of its charter or its ordinances or regulations, nor to prevent or punish violations thereof; and the powers conferred by this section shall be in addition and supplemental to the powers conferred by any other law.
     (6) ((Nothing in)) This section ((shall be construed to)) does not impair or limit in any way the power of the municipality to define and declare nuisances and to cause their removal or abatement, by summary proceedings or otherwise.
     (7) Any municipality may ((())by ordinance adopted by its governing body(())) (a) prescribe minimum standards for the use and occupancy of dwellings throughout the municipality((,)) or county, (b) prescribe minimum standards for the use or occupancy of any building, structure, or premises used for any other purpose, (c) prevent the use or occupancy of any dwelling, building, structure, or premises, ((which)) that is injurious to the public health, safety, morals, or welfare, and (d) prescribe punishment for the violation of any provision of such ordinance.