BILL REQ. #:  H-5029.4 

READ FIRST TIME 02/08/06.   

     AN ACT Relating to affordable housing; amending RCW 82.45.060, 43.185C.010, and 43.63A.655; adding new sections to chapter 43.185 RCW; adding new sections to chapter 43.185A RCW; adding a new section to 2005 c 488 (uncodified); adding new sections to chapter 43.185C RCW; creating new sections; recodifying RCW 43.63A.655; making appropriations; and providing expiration dates.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 43.185 RCW to read as follows:
     The legislature finds that Washington is experiencing an affordable housing crisis and that this crisis is growing exponentially every year as the population of the state expands and housing values increase at a rate that far exceeds most households' proportionate increase in income. The legislature further finds that while the rapid increase in housing values has exacerbated the affordable housing crisis, the phenomena has also dramatically benefited the state's general fund, the growth of which is directly attributable to increased proceeds from the real estate excise tax.
     The fiscal and societal costs of the lack of adequate affordable housing are high for both the public and private sectors. However, the legislature finds that while real estate generates large amounts of revenue, current levels of funding for affordable housing programs are inadequate to meet the housing needs of many low-income Washington households.
     Therefore, the legislature declares that a portion of the increased revenue generated from the real estate excise tax must be used to support affordable housing programs that assist low-income households obtain and retain housing.

Sec. 2   RCW 82.45.060 and 2005 c 450 s 1 are each amended to read as follows:
     (1) There is imposed an excise tax upon each sale of real property at the rate of one and twenty-eight one-hundredths percent of the selling price. An amount equal to six and one-tenth percent of the proceeds of this tax to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050. An amount equal to one and six-tenths percent of the proceeds of this tax to the state treasurer shall be deposited in the city-county assistance account created in RCW 43.08.290.
     (2) Of amounts deposited into the general fund pursuant to subsection (1) of this section, the legislature may authorize a transfer of up to twenty-five million dollars for the fiscal year ending June 30, 2006, into the Washington housing trust fund created in RCW 43.185.030.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.185 RCW to read as follows:
     The application process and distribution procedure for the allocation of funds are the same as the competitive application process and distribution procedure for the housing trust fund, described in this chapter and chapter 43.185A RCW, except for the funds applied to the homeless families services fund created in RCW 43.330.167, dollars appropriated to weatherization administered through the energy matchmaker program, dollars appropriated for rental vouchers for low-income or seasonal farm workers, and dollars appropriated to any program to provide financial assistance for grower-provided on-farm housing for low-income migrant or seasonal farm workers.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.185A RCW to read as follows:
     The application process and distribution procedure for the allocation of funds are the same as the competitive application process and distribution procedure described in section 3 of this act.

NEW SECTION.  Sec. 5   A new section is added to 2005 c 488 (uncodified) to read as follows:
FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT
     Housing Assistance, Weatherization, and Affordable Housing--Home Security Fund (06-4-851)

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $8,600,000 of the appropriation from the Washington housing trust account is provided solely for the backlog, as defined by the department, of projects determined by the department to be eligible under chapter 43.185 or 43.185A RCW.
     (2) $1,000,000 of the appropriation from the Washington housing trust account is provided solely for rental vouchers for low-income or seasonal farm workers, specifically to be used for: (a) Privately owned and operated rental units, including single-family homes; or (b) on-farm housing units. Housing and rental units for which rental vouchers may be used must meet temporary worker housing standards, when applicable. Any of this appropriation that is unspent on June 30, 2007, shall be added to the amount appropriated for the backlog identified in subsection (1) of this section.
     (3) $4,500,000 of the appropriation from the Washington housing trust account is provided solely for weatherization administered through the energy matchmakers program.
     (4) $1,250,000 of the appropriation from the Washington housing trust account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.
     (5) $500,000 of the appropriation from the Washington housing trust account is provided solely for shelters, transitional housing, or other housing facilities for victims of domestic violence.
     (6) $4,000,000 of the appropriation from the Washington housing trust account is provided solely for farm worker housing projects and programs to meet the full spectrum of housing needs of Washington's farm workers and their families. The department shall work with stakeholders representing a diversity of farm worker housing interests to develop a strategic plan in implementing this provision.
     (7) $1,000,000 of the appropriation from the Washington housing trust account is provided solely for mobile home preservation.
     (8) $4,000,000 of the appropriation from the homeless families services fund is provided solely for the purposes of RCW 43.330.167, but limited to residents living in housing subject to a regulatory agreement related to rent and/or income restrictions.
     (9) $150,000 of the appropriation from the Washington housing trust account is provided solely for a program to assist individuals and communities in the home-buying process, including, but not limited to: Homebuyer education classes, credit and budget counseling, financial literacy training, and down payment assistance programs. The department shall contract with a nonprofit organization as defined under section 501(c)(3) of the internal revenue code or similar successor provision that has experience and expertise in addressing language access barriers in the home-buying process to implement this program.
     (10) Appropriations in this section shall be included in the calculation of annual funds available for determining the administrative costs of the department, which shall not exceed five percent of the annual funds available for the housing assistance program and the affordable housing program as authorized under RCW 43.185.050 and 43.185A.030.

Appropriation:
     Washington Housing Trust Account--State . . . . . . . . . . . . $21,000,000
     Homeless Families Services Account--State . . . . . . . . . . . . $4,000,000
          Subtotal Appropriation . . . . . . . . . . . . $25,000,000

     Prior Biennia (Expenditures) . . . . . . . . . . . . $0
     Future Biennia (Projected Costs) . . . . . . . . . . . . $75,000,000
          TOTAL . . . . . . . . . . . . $100,000,000

NEW SECTION.  Sec. 6   A new section is added to chapter 43.185 RCW to read as follows:
     The department must report annually by December 31st the accomplishments of this act to the appropriate committees of the legislature. The report must include statewide information as well as information that is county and city specific. Performance measures must be determined by the department, with required input from the appropriate committees of the legislature, by December 31, 2006.

Sec. 7   RCW 43.185C.010 and 2005 c 484 s 3 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (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) "Homeless person" means an individual living outside or in a building not meant for human habitation or which they have no legal right to occupy, in an emergency shelter, or in a temporary housing program which may include a transitional and supportive housing program if habitation time limits exist. This definition includes substance abusers, mentally ill people, and sex offenders who are homeless.
     (4) "Washington homeless census" means an annual statewide census conducted as a collaborative effort by towns, cities, counties, community-based organizations, and state agencies, with the technical support and coordination of the department, to count and collect data on all homeless individuals in Washington.
     (5) "Homeless housing account" means the state treasury account receiving the state's portion of income from revenue from the sources established by RCW 36.22.179.
     (6) "Homeless housing grant program" means the vehicle by which competitive grants are awarded by the department, utilizing moneys from the homeless housing account, to local governments for programs directly related to housing homeless individuals and families, addressing the root causes of homelessness, preventing homelessness, collecting data on homeless individuals, and other efforts directly related to housing homeless persons.
     (7) "Local government" means a county government in the state of Washington or a city government, if the legislative authority of the city affirmatively elects to accept the responsibility for housing homeless persons within its borders.
     (8) "Housing continuum" means the progression of individuals along a housing-focused continuum with homelessness at one end and homeownership at the other.
     (9) "Local homeless housing task force" means a voluntary local committee created to advise a local government on the creation of a local homeless housing plan and participate in a local homeless housing program. It must include a representative of the county, a representative of the largest city located within the county, at least one homeless or formerly homeless person, such other members as may be required to maintain eligibility for federal funding related to housing programs and services and if feasible, a representative of a private nonprofit organization with experience in low-income housing.
     (10) "Long-term private or public housing" means subsidized and unsubsidized rental or owner-occupied housing in which there is no established time limit for habitation of less than two years.
     (11) "Interagency council on homelessness" means a committee appointed by the governor and consisting of, at least, ((the director of)) policy level representatives of the following entities: (a) The department of community, trade, and economic development; (b) the ((secretary of the)) department of corrections; (c) the ((secretary of the)) department of social and health services; (d) the ((director of the)) department of veterans affairs; and (e) the ((secretary of the)) department of health.
     (12) "Performance measurement" means the process of comparing specific measures of success against ultimate and interim goals.
     (13) "Community action agency" means a nonprofit private or public organization established under the economic opportunity act of 1964.
     (14) "Housing authority" means any of the public corporations created by chapter 35.82 RCW.
     (15) "Homeless housing program" means the program authorized under this chapter as administered by the department at the state level and by the local government or its designated subcontractor at the local level.
     (16) "Homeless housing plan" means the ten-year plan developed by the county or other local government to address housing for homeless persons.
     (17) "Homeless housing strategic plan" means the ten-year plan developed by the department, in consultation with the interagency council on homelessness and the affordable housing advisory board.
     (18) "Washington homeless client management information system" means a data base of information about homeless individuals in the state used to coordinate resources to assist homeless clients to obtain and retain housing and reach greater levels of self-sufficiency or economic independence when appropriate, depending upon their individual situations.

NEW SECTION.  Sec. 8   A new section is added to chapter 43.185C RCW to read as follows:
     (1) The interagency council on homelessness, as defined in RCW 43.185C.010, shall be convened not later than August 31, 2006, and shall meet at least two times each year and report to the appropriate committees of the legislature annually by December 31st on its activities.
     (2) The interagency council on homelessness shall work to create greater levels of interagency coordination and to coordinate state agency efforts with the efforts of state and local entities addressing homelessness.
     (3) The interagency council shall seek to:
     (a) Align homeless-related housing and supportive service policies among state agencies;
     (b) Identify ways in which providing housing with appropriate services can contribute to cost savings for state agencies;
     (c) Identify and eliminate policies and actions that contribute to homelessness or interfere with its reduction;
     (d) Review and improve strategies for discharge from state institutions that contribute to homelessness;
     (e) Recommend and adopt new policies to either improve practices or align resources, or both, including those policies requested by the affordable housing advisory board or through state and local housing plans; and
     (f) Ensure that the housing status of people served by state programs is collected in consistent formats available for analysis.

Sec. 9   RCW 43.63A.655 and 1999 c 267 s 4 are each amended to read as follows:
     (1) In order to improve services for the homeless, the department, within amounts appropriated by the legislature for this specific purpose, shall implement ((a)) the Washington homeless client management information system for the ongoing collection and ((analysis of)) updates of information about all homeless individuals in the state.
     (2) Information about homeless individuals for the Washington homeless client management information system shall come from the Washington homeless census and from state agencies and community organizations providing services to homeless individuals and families.
     (3) The Washington homeless client management information system shall serve as an online information and referral system to enable local governments and providers to connect homeless persons in the data base with available housing and other support services. Local governments shall develop a capacity for continuous case management, including independent living plans, when appropriate, to assist homeless persons.
     (4) The information in the Washington homeless client management information system will also provide the department with the information to consolidate and analyze data about the extent and nature of homelessness in Washington state, giving emphasis to information about the extent and nature of homelessness in Washington state among families with children.
     (5) The system may be merged with other data gathering and reporting systems and shall:
     (a) Protect the right of privacy of individuals;
     (b) Provide for consultation and collaboration with all relevant state agencies including the department of social and health services, experts, and community organizations involved in the delivery of services to homeless persons; and
     (c) Include related information held or gathered by other state agencies.
     (((2))) (6) Within amounts appropriated by the legislature, for this specific purpose, the department shall evaluate the information gathered and disseminate the analysis and the evaluation broadly, using appropriate computer networks as well as written reports.
     (7) The Washington homeless client management information system shall be implemented by December 31, 2009, and updated with new homeless client information at least annually.

NEW SECTION.  Sec. 10   (1) The department of community, trade, and economic development shall conduct a study to evaluate the potential development of a voluntary statewide, low-income household housing waiting list data base that would include information on all low-income households requesting housing assistance for the purpose of connecting such households with appropriate housing opportunities. The study shall investigate and evaluate the following:
     (a) The anticipated benefits of such a statewide waiting list to low-income households and low-income housing providers;
     (b) The cost of implementing and maintaining the data base; and
     (c) Best practices from other states or from counties in other states that currently have a similar data base.
     The department shall report the results of this study to the appropriate committees of the legislature by December 31, 2007.
     (2) This section expires December 31, 2007.

NEW SECTION.  Sec. 11   A new section is added to chapter 43.185A RCW to read as follows:
     (1) The department shall create or purchase, and implement by December 31, 2009, a master affordable housing data base that includes specific information about existing affordable rental housing stock in the state of Washington. The data base shall be maintained and continually updated by the department, and the department may cross-reference and exchange information between this data base and other existing state housing data bases.
     (2) The data base shall include information on all rental units that meet the affordable housing definition and have received or continue to receive funding from the federal, state, or local government, or other nonprofit organization or financing through the Washington housing finance commission. The department shall encourage private landlords to voluntarily submit information about private rental units that are affordable for low-income households to be included in the data base.
     (3) The data base shall include information about rental units that shall be determined by the department. However, the data base must include, at a minimum, measures for quality, cost, safety, and size.
     (4) Other state agencies, local governments, local public agencies, including water and sewer districts, housing authorities, and other housing organizations shall cooperate with the department to create and update the affordable housing data base by providing to the department any requested existing information about rental housing units within the jurisdiction.
     (5) The data base shall be searchable by the department, local governments, community housing organizations, including housing authorities, and the public according to housing characteristics determined by the department including, at a minimum, location, cost, and size. The data base will be utilized for data collection about Washington's affordable rental housing stock and will also serve as a low-income housing referral system to connect low-income households seeking housing with appropriate and available units.

NEW SECTION.  Sec. 12   A new section is added to chapter 43.185A RCW to read as follows:
     The department, the housing finance commission, the affordable housing advisory board, and all local governments, housing authorities, and other nonprofits receiving state housing funds or financing through the housing finance commission shall, by December 31, 2006, and annually thereafter, review current housing reporting requirements related to housing programs and services and give recommendations to streamline and simplify all planning and reporting requirements to the department of community, trade, and economic development, which will compile and present the recommendations annually to the legislature. The entities listed in this section shall also give recommendations for additional legislative actions that could promote affordable housing and end homelessness.

NEW SECTION.  Sec. 13   RCW 43.63A.655 is recodified as a section in chapter 43.185C RCW.

NEW SECTION.  Sec. 14   Sections 1 through 6 of this act expire July 1, 2010.

NEW SECTION.  Sec. 15   Unless a transfer of at least twenty-five million dollars from the general fund to the Washington housing trust fund as created in RCW 43.185.030 for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2006, in the omnibus appropriations act, this act is null and void.