BILL REQ. #:  H-1885.1 

Read first time 02/21/2005.   Referred to Committee on Housing.

     AN ACT Relating to housing trust fund loans; amending RCW 43.185.050 and 43.185A.030; adding new sections to chapter 43.185 RCW; adding a new section to chapter 43.185A RCW; and providing an effective date.

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

Sec. 1   RCW 43.185.050 and 2002 c 294 s 6 are each amended to read as follows:
     (1) The department shall use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loans or grant projects that will provide housing for persons and families with special housing needs and with incomes at or below fifty percent of the median family income for the county or standard metropolitan statistical area where the project is located. At least thirty percent of these moneys used in any given funding cycle shall be for the benefit of projects located in rural areas of the state as defined by the department. If the department determines that it has not received an adequate number of suitable applications for rural projects during any given funding cycle, the department may allocate unused moneys for projects in nonrural areas of the state.
     (2) Activities eligible for assistance from the housing trust fund and other legislative appropriations include, but are not limited to:
     (a) New construction, rehabilitation, ((or)) acquisition of low and very low-income housing units, or building or property acquisition for the purpose of low-income housing development;
     (b) Rent subsidies;
     (c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;
     (d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;
     (e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;
     (f) Shelters and related services for the homeless, including emergency shelters and overnight youth shelters;
     (g) Mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;
     (h) Mortgage insurance guarantee or payments for eligible projects;
     (i) Down payment or closing cost assistance for eligible first-time home buyers;
     (j) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing; and
     (k) Projects making housing more accessible to families with members who have disabilities.
     (3) Legislative appropriations from capital bond proceeds may be used only for the costs of projects authorized under subsection (2)(a), (i), and (j) of this section, and not for the administrative costs of the department.
     (4) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the housing assistance program except for activities authorized under subsection (2)(b) and (c) of this section.
     (5) Administrative costs of the department shall not exceed four percent of the annual funds available for the housing assistance program.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.185 RCW to read as follows:
     The department may use up to five million dollars annually from the housing trust fund capital bond proceeds to provide short-term loans to eligible organizations for property or building acquisition when the purpose of the acquisition is affordable housing development. The department may finance the properties for a period not to exceed three years during which time the organization must secure replacement permanent financing. In addition to seeking outside financing during the three-year period, the organization may apply for permanent financing from the department through the housing trust fund. Once awarded permanent financing, either through the housing trust fund or an alternative source, the organization must repay the short-term loan. Loan repayments must be placed in the housing trust fund short-term financing account under section 3 of this act to be used by the department for future short-term financing loans.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.185 RCW to read as follows:
     The housing trust fund short-term financing account is created in the custody of the state treasurer. All receipts from the housing trust fund short-term financing program must be deposited in the account. Expenditures from the account may be used only for short-term financing of property or building acquisition when the purpose of such acquisition is affordable housing development. Only the director or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 4   RCW 43.185A.030 and 1994 c 160 s 3 are each amended to read as follows:
     (1) Using moneys specifically appropriated for such purpose, the department shall finance in whole or in part projects that will provide housing for low-income households.
     (2) Activities eligible for assistance include, but are not limited to:
     (a) New construction, rehabilitation, ((or)) acquisition of housing for low-income households, or building or property acquisition for the purpose of low-income housing development;
     (b) Rent subsidies in new construction or rehabilitated multifamily units;
     (c) Down payment or closing costs assistance for first-time home buyers;
     (d) Mortgage subsidies for new construction or rehabilitation of eligible multifamily units; and
     (e) Mortgage insurance guarantee or payments for eligible projects.
     (3) Legislative appropriations from capital bond proceeds may be used only for the costs of projects authorized under subsection (2) (a), (c), (d), and (e) of this section, and not for the administrative costs of the department.
     (4) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the affordable housing program except for activities authorized under subsection (2)(b) of this section.
     (5) Administrative costs of the department shall not exceed four percent of the annual funds available for the affordable housing program.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.185A RCW to read as follows:
     The department may use up to five million dollars annually from the housing trust fund capital bond proceeds to provide short-term loans to eligible organizations for property or building acquisition when the purpose of the acquisition is affordable housing development. The department may finance the properties for a period not to exceed three years during which time the organization must secure replacement permanent financing. In addition to seeking outside financing during the three-year period, the organization may apply for permanent financing from the department through the housing trust fund. Once awarded permanent financing, either through the housing trust fund or an alternative source, the organization must repay the short-term loan. Loan repayments will be placed in the housing trust fund short-term financing account under section 3 of this act to be used by the department for future short-term financing.

NEW SECTION.  Sec. 6   This act takes effect August 1, 2005.