BILL REQ. #:  H-4361.3 

READ FIRST TIME 01/30/06.   

     AN ACT Relating to providing affordable housing for all; amending RCW 43.185B.030, 43.185B.040, 36.22.178, 43.185A.020, 43.185A.070, 35.82.080, 35.21.685, 35.82.230, 43.63A.505, 43.63A.640, 43.63A.645, 43.330.110, 43.330.165, 43.330.170, 59.28.010, 70.114A.010, 70.114A.040, 70.114A.085, 70.164.010, 43.63A.115, 43.185B.020, 43.185.015, 43.185.110, and 43.63A.650; reenacting and amending RCW 36.18.010; adding a new section to chapter 36.70A RCW; adding a new section to chapter 43.185 RCW; adding new sections to chapter 35.82 RCW; adding a new chapter to Title 43 RCW; creating a new section; recodifying RCW 36.22.178, 43.185B.020, 43.185B.030, and 43.185B.040; repealing RCW 43.185B.010; making an appropriation; and providing an expiration date.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that there is a large, unmet need for affordable housing in the state of Washington. The legislature declares that a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household by 2020 is a goal for state and local governments and all housing organizations and related subcontractors. Furthermore, this goal includes increasing the percentage of low-income households who are able to obtain and retain housing without government subsidies or other public support.
     (2) The legislature finds that the continual systematic collection and rigorous evaluation of comprehensive data regarding the state's affordable housing stock and persons requiring affordable housing is critical to planning for and achieving the state's affordable housing goal.
     (3) The legislature finds that there are many root causes of the affordable housing shortage and declares that it is critical that such causes be analyzed, effective solutions be developed, implemented, monitored, and evaluated, and that these causal factors be eliminated. The legislature also finds that there is a taxpayer and societal cost associated with a lack of living wage jobs and affordable housing and that state and local governments must identify and quantify that cost.
     (4) The legislature finds that the support and commitment of all sectors of the statewide community is critical to accomplishing the state's affordable housing for all goal. The legislature finds that the provision of housing and housing-related services should be administered at the local level. However, the state should play a primary role in: Researching, evaluating, benchmarking, and implementing best practices; continually updating and evaluating statewide housing data; developing a statewide plan to achieve the affordable housing for all goal; coordinating and supporting local government plans and activities; and encouraging quality management practices by monitoring both state and local government performance towards achieving interim and ultimate goals.
     (5) The legislature declares that the systematic and comprehensive performance measurement and evaluation of progress toward interim goals and the ultimate state affordable housing goal of a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020 is a necessary component of the statewide effort to end the lack of affordable housing crisis.

NEW SECTION.  Sec. 2   This chapter may be known and cited as the Washington affordable housing for all act.

NEW SECTION.  Sec. 3   There is created within the department the state affordable housing for all program. The goal of the program is a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020. A priority shall be placed upon achieving this goal for very low-income households. This goal includes increasing the percentage of very low and low-income households who access affordable housing without government assistance by increasing the number of households who achieve self-sufficiency and economic independence. The goal also includes implementing strategies to slow the rising cost of new housing. The program shall be developed and administered by the department.

NEW SECTION.  Sec. 4   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Affordable housing" means housing that has a sales price or rental amount that is within the means of a household that may occupy moderate-income or low-income housing. In the case of dwelling units for rent, affordable housing means housing for which the affordable rent and utilities do not exceed thirty percent of the gross annual household income for a household below median income of the household size that may occupy the particular unit. In the case of dwelling units for sale, affordable housing means housing in which annual housing costs do not exceed thirty percent of the gross annual household income for a household below the median income of the household size that may occupy the particular unit. The department shall adopt policies for residential homeownership housing, occupied by low-income households, that specify the percentage of household income that may be spent on monthly housing costs, including utilities other than telephone, to qualify as affordable housing.
     (2) "Department" means the department of community, trade, and economic development.
     (3) "Director" means the director of the department of community, trade, and economic development.
     (4) "First-time home buyer" means an individual or his or her spouse who have not owned a home during the three-year period prior to purchase of a home.
     (5) "Nonprofit organization" means any public or private nonprofit organization that: (a) Is organized under federal, state, or local laws; (b) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (c) has among its purposes, significant activities related to the provision of decent housing that is affordable to very low-income, low-income, or moderate-income households and special needs populations.
     (6) "Regulatory barriers to affordable housing" and "regulatory barriers" mean any public policies, including those embodied in statutes, ordinances, regulations, or administrative procedures or processes, required to be identified by the state or local government in connection with its strategy under section 105(b)(4) of the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.).
     (7) "Affordable housing for all account" means the state treasury account receiving the state's portion of income from the revenue of sources established by section 19 of this act.
     (8) "Local affordable housing task force" means a local committee, as described in section 10 of this act, created to prepare and recommend to its local government legislative authority an affordable housing for all plan and also to decide upon expenditures of the funds for the local affordable housing for all program.
     (9) "Performance measurement" means the process of comparing specific measures of success with ultimate and interim goals.
     (10) "Performance evaluation" means the process of evaluating the performance by established objective, measurable criteria according to the achievement of outlined goals, measures, targets, standards, or other outcomes using a ranked scorecard from highest to lowest performance which employs a scale of one to one hundred, one hundred being the optimal score.
     (11) "Quality management program" means a nationally recognized program similar or equivalent to the Baldridge criteria. All local governments receiving over two hundred thousand dollars from the affordable housing for all program in RCW 36.22.178 (as recodified by this act) and from the surcharge in RCW 36.22.179 shall implement a quality management program and shall apply to the Washington state quality award program once every three years.
     (12) "Affordable housing for all 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.
     (13) "Affordable housing data base" means a master data base created or purchased, implemented, and maintained by the department of all existing housing stock which has received federal, state, or local funds, funds from another nonprofit organization, or financing through the Washington housing finance commission meeting the conditions of section 6 of this act, and which is affordable to households whose adjusted income is less than eighty percent of the median household income, adjusted for household size for the county where the project is located. The data base shall also include information on privately owned rental units provided voluntarily by owners and landlords.
     (14) "State affordable housing for all plan" means the plan developed by the department in collaboration with the affordable housing advisory board with the goal of ensuring every low-income household in Washington has a decent, appropriate, and affordable home in a healthy, safe environment by 2020.
     (15) "Local affordable housing for all plan" means the plan developed by each participating local government with the goal of ensuring every low-income household in the local jurisdiction has a decent, appropriate, and affordable home in a healthy, safe environment by 2020.
     (16) "Low-income household," for the purposes of the affordable housing for all program, means a single person, family, or unrelated persons living together whose adjusted income is less than eighty percent of the median household income, adjusted for household size for the county where the project is located.
     (17) "Very low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than fifty percent of the median family income, adjusted for household size for the county where the project is located.
     (18) "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 reaching the goals of the affordable housing for all program within its borders.
     (19) "Authority" or "housing authority" means any of the public corporations created by RCW 35.82.030.

NEW SECTION.  Sec. 5   The department of labor and industries shall annually determine a specific living wage, based upon the cost of living, including housing costs, for each county in the state. The department of labor and industries shall deliver a report to the department of community, trade, and economic development regarding the number and percentage of individuals and households statewide and in each county, who are not earning a living wage. The affordable housing advisory committee shall discuss in its annual report to the legislature, starting in 2007, the measurable relationship between living wage jobs and housing affordability.

NEW SECTION.  Sec. 6   (1) The department shall create or purchase, and implement a master affordable housing data base that includes specific information about existing affordable housing stock in the state of Washington by December 31, 2009. 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 units which 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, it must include, at a minimum, measures for quality, cost, safety, and size. In addition to other data points to be determined by the department, the following data points may be collected for units entered into the data base:
     (a) Identification of the owner and manager of the unit;
     (b) Cost of the housing unit that, in the case of rental units, may include rent, average utility costs, security deposits, and any other fees required of tenants;
     (c) Size of the housing unit, including square footage, number of bedrooms, and number of bathrooms;
     (d) Specific target populations for the unit, if applicable, including, units designed to serve or limited to serving the disabled, the elderly, victims of domestic violence, families, individuals, or a specific number of persons; and
     (e) The current availability of the unit.
     (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 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 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.
     (6) A summary of collected performance measurement data regarding the existing rental housing stock and a corresponding analysis shall be presented annually in the statewide plan required in RCW 43.185B.040 (as recodified by this act). Local data shall also be included in the local governments' updated affordable housing for all plans under section 12 of this act. Information shall include, at a minimum, the following:
     (a) An inventory of the supply and geographic, including political geography, distribution of affordable housing units for specific income groups, including households making at or below living wage levels, as defined by the department of labor and industries, and those making at or below eighty percent, fifty percent, and thirty percent of the median household income adjusted for household size for the county where the project is located, and other specific target populations;
     (b) A calculation reflecting the increase or decrease in affordable housing units from the previous twelve-month period; and
     (c) The average current market cost per square foot of units, statewide, in each county, and for each major metropolitan area.

NEW SECTION.  Sec. 7   (1) The department shall conduct a study to evaluate the potential development of a statewide, low-income household, housing waiting list data base which 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 which 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.

Sec. 8   RCW 43.185B.030 and 1993 c 478 s 6 are each amended to read as follows:
     The affordable housing advisory board shall:
     (1) Analyze those solutions and programs that ((could begin to)) address the state's need for housing that is affordable for all economic segments of the state, with an emphasis on very low and low-income populations and special needs populations, including, but not limited to, initiatives, programs, or proposals which include recommendations about or provide for:
     (a) Financing for the acquisition, rehabilitation, preservation, or construction of affordable housing in order to meet the state's affordable housing and homelessness goals;
     (b) Use of publicly owned land and buildings as sites for affordable housing;
     (c) Coordination of state initiatives with federal initiatives and financing programs that are referenced in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended, and development of an approved housing strategy as required in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended;
     (d) Identification and removal, where appropriate and not detrimental to the public health and safety, or environment, of state and local regulatory barriers to the development and placement of affordable housing;
     (e) Goals and performance measures for stimulating public and private sector cooperation in the development of affordable housing and public and private sector support to reach affordable housing and homelessness goals; and
     (f) Development of solutions and programs affecting housing, including the equitable geographic distribution of housing for all economic segments, as the advisory board deems necessary;
     (2) Consider both homeownership and rental housing as viable options for the provision of housing. The advisory board shall give consideration to various types of residential construction and innovative housing options, including, but not limited to, manufactured housing, and make annual recommendations related to the appropriate type of housing given a variety of situations and needs;
     (3) Review, evaluate, and make recommendations regarding existing and proposed housing programs and initiatives including but not limited to tax policies, land use policies, and financing programs((. The advisory board shall provide recommendations to the director, along with the department's response in the annual housing report to the legislature required in RCW 43.185B.040; and
     (4) Prepare and submit to the director, by each December 1st, beginning December 1, 1993, a report detailing its findings and make specific program, legislative, and funding recommendations and any other recommendations it deems appropriate));
     (4) Annually evaluate the department's statewide affordable housing for all plan; and
     (5) Present annual reports of its findings and recommendations to the department and appropriate committees of the legislature by October 31, 2007, and present annual updated reports by October 31st of each subsequent year.

Sec. 9   RCW 43.185B.040 and 1993 c 478 s 12 are each amended to read as follows:
     (1) The department shall, in consultation with the affordable housing advisory board created in RCW 43.185B.020 (as recodified by this act), prepare and ((from time to time amend a five-year)) update annually an affordable housing ((advisory)) for all plan. The plan includes the recommendations of the affordable housing advisory board annual report required in RCW 43.185B.030 (as recodified by this act) and must be coordinated with the state homeless housing strategic plan required under RCW 43.185C.040. The plan shall be created by December 31, 2007, and updated by December 31st of each subsequent year. The purpose of the plan is to document the need for affordable housing in the state and the extent to which that need is being met through public and private sector programs, to outline the development of sound strategies and programs for affordable housing, to establish, evaluate, and report upon performance measures for the state and local governments, and to facilitate state and local planning to meet the state affordable housing ((needs of the state, and to enable the development of sound strategies and programs for affordable housing)) goal of ensuring a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020.
     (2) The information in the ((five-year)) affordable housing ((advisory)) for all plan must include:
     (a) An assessment of the state's housing market trends;
     (b) An assessment of the housing needs for all economic segments of the state and special needs populations;
     (c) An inventory of the supply and geographic distribution of affordable housing units made available through public and private sector programs;
     (d) A status report on the degree of progress made by the public and private sector toward meeting the housing needs of the state and each county and major city in the state;
     (e) An identification of state and local regulatory barriers to affordable housing and proposed regulatory and administrative techniques designed to remove barriers to the development and placement of affordable housing; ((and))
     (f) An annual review, statewide and within each county and major city, of the primary contributors to the cost of housing;
     (g) Specific recommendations, policies, or proposals for meeting the affordable housing needs of the state, including the recommendations of the affordable housing advisory board annual report;
     (h) Identification of key root causal factors of the affordable housing shortage and the inability of low-income households to obtain and retain appropriate housing, and identification of possible preventative strategies and related performance measures. The list of root causes shall include the cost of construction, other development costs, the inadequacy of wages to enable low-income households to obtain and retain housing, and financial management skills;
     (i) A determination, in collaboration with the department of labor and industries, of the state cost of the affordable housing shortage and the lack of living wage jobs;
     (j) Interim goals and timelines that are determined by the department and by which the state and local governments' performances may be measured;
     (k) Detailed timelines to accomplish the goal of a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020; and
     (l) Performance measures that are determined by the department with input required from the appropriate committees of the legislature, which include, at a minimum, the following:
     (i) Percentage increase of affordable housing needs being met within each twelve-month period;
     (ii) Percentage increase of families reaching self-sufficiency or economic independence as defined by the department of labor and industries;
     (iii) A measure of future sustainability of the affordable housing stock;
     (iv) A measure of increased collaboration and coordination among public bodies and community stakeholders, and the level of community support and participation;
     (v) Percentage increase of living wage jobs, as defined by the department of labor and industries; and
     (vi) Implementation of local quality management programs.
     (((2)(a))) (3) The ((five-year)) state affordable housing ((advisory)) for all plan required under subsection (1) of this section must be submitted to the appropriate committees of the legislature on or before ((February 1, 1994)) December 31, 2007, and subsequent updated plans must be submitted ((every five years)) annually by December 31st thereafter, which shall include an annual progress report detailing the extent to which the state's affordable housing needs were met during the preceding year.
     (((b) Each February 1st, beginning February 1, 1995, the department shall submit an annual progress report, to the legislature, detailing the extent to which the state's affordable housing needs were met during the preceding year and recommendations for meeting those needs)) (4) To guide local governments in preparation for their first local affordable housing for all plan required under section 12 of this act, the department shall issue, by December 31, 2007, guidelines for preparing local affordable housing for all plans consistent with this chapter. Local affordable housing for all plans shall be substantially consistent with the goals and program recommendations of the state affordable housing for all plan and shall include, at a minimum, the same performance measures as described in subsection (2) of this section.
     (5) Based on the performance of local affordable housing for all programs in meeting their interim goals and on changes to the general population and in the housing market, the department may revise the performance measures and goals of the state affordable housing for all plan, set goals for years following December 31, 2020, and recommend changes in local affordable housing for all plans.

NEW SECTION.  Sec. 10   Each participating local government shall convene an affordable housing task force. The task force shall be a local committee, made up of volunteers, created to prepare and recommend to its local government legislative authority an affordable housing for all plan and also to decide upon expenditures of the funds created in this chapter. The affordable housing task force shall include a representative of the county, a representative of the largest city located within the county, other members as may be required to maintain eligibility for federal funding related to housing programs and services, and a representative of a private nonprofit organization with experience in low-income housing. The task force may be the same as the homeless housing task force created in RCW 43.185C.160.

NEW SECTION.  Sec. 11   (1) Each local affordable housing task force shall prepare and recommend to its local government legislative authority an affordable housing for all plan for its jurisdictional area which must be consistent with the department's local plan guidelines and the department's state affordable housing for all plan. For local governments required or choosing to plan under RCW 36.70A.040, affordable housing for all plans must be consistent with housing elements of comprehensive plans described in RCW 36.70A.070(2). Local plans must also be consistent with any existing local homeless housing plan required in RCW 43.185C.050. Local affordable housing for all plans shall be primarily focused on ensuring that every low-income household in the local jurisdictional area has a decent, appropriate, and affordable home in a healthy, safe environment by 2020 and on increasing the percentage of low-income households that access affordable housing without government assistance. The local affordable housing for all plan shall include performance measures, including, at a minimum, the same performance measures required of the state affordable housing for all plan outlined in RCW 43.185B.040(2)(l) (as recodified by this act), timelines for the accomplishment of interim goals, targets, and projected estimated financing appropriate for outlined goals. Annual local plan updates shall include legislative recommendations. Local governments shall adopt a plan by April 30, 2008, and update the plan annually on or before April 30th. All plans must be forwarded to the department on or before the date of adoption.
     (2) The department shall conduct an annual performance evaluation of local affordable housing for all plans. The department shall present its performance evaluations to the appropriate committees of the legislature on or before December 31st of each year beginning in 2008.

NEW SECTION.  Sec. 12   Local governments shall report on achievements, according to stated performance measures in the local affordable housing for all plans, to the department annually by December 1st. The department shall conduct an annual performance evaluation of local governments according to their performance in achieving stated affordable housing goals. The department shall present the results of the performance evaluation in its annually updated state affordable housing for all plan.

NEW SECTION.  Sec. 13   (1) A county may decline to participate in the program authorized in this chapter by forwarding to the department a resolution adopted by the county legislative authority stating its intention not to participate. A copy of the resolution shall be transmitted to the county auditor and treasurer. If a resolution is adopted, all of the funds otherwise due to the county under RCW 36.22.178 (as recodified by this act) shall be remitted monthly to the state treasurer for deposit in the affordable housing for all account, except as provided in subsection (4) of this section, without any reduction by the county for collecting or administering the funds. Upon receipt of the resolution, the department shall promptly begin to identify and contract with one or more entities to create and execute a local affordable housing for all plan for the county meeting the requirements of this chapter. The department shall utilize the county's portion of the funds provided under section 17 of this act for this purpose. The department shall expend all of the funds received from the county to carry out the purposes of this chapter in the county, except that the department may retain six percent of these funds to offset the cost of managing the county's program.
     (2) A resolution by the county declining to participate in the program has no effect on the ability of each city in the county to assert its right to manage its own program under this chapter, as provided in section 14 of this act, and the county shall transmit to the city, every month, the portion of funds due to the city, as provided in section 14 of this act, which are collected pursuant to RCW 36.18.010.
     (3) A county that has declined to participate may, at a later date, participate in the program authorized by this chapter by forwarding to the department a resolution adopted by the county legislative authority stating the intention to participate. The department shall determine a procedure and appropriate timeline for the transfer of the program from any existing third-party contractor to the county.
     (4) The funding reduction required under subsection (1) of this section does not apply to counties which have made funding commitments to projects prior to the effective date of this act. Such projects may be awarded the funds that were not committed prior to the effective date of this act.

NEW SECTION.  Sec. 14   Any city may assert responsibility for reaching the goals of the affordable housing for all program within its borders, if it so chooses, by forwarding a resolution to the legislative authority of the county stating its intention and its commitment to operate a separate affordable housing for all program. If it so chooses, the city shall receive the portion of the funds attributable to document recordings involving transactions within the city. A city choosing to operate a separate affordable housing for all program is responsible for complying with all of the same requirements as counties and shall adopt an affordable housing for all plan meeting the requirements of this chapter for local affordable housing for all plans. The city may, by resolution of its legislative authority, accept an appropriate portion of the county's affordable housing for all plan as its own.

NEW SECTION.  Sec. 15   Local governments may subcontract with any other local government, housing authority, community action agency, or other nonprofit organization for the execution of programs contributing to the goal of ensuring a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the local jurisdiction by 2020. All subcontracts must be: Consistent with the local affordable housing for all plan adopted by the legislative authority of the local government; time limited; and filed with the department, and must have specific performance terms as specified by the local government. This authority to subcontract with other entities does not affect the local governments' ultimate responsibility for the affordable housing for all program within its borders.

Sec. 16   RCW 36.22.178 and 2005 c 484 s 18 are each amended to read as follows:
     (1) Except as provided in subsection (((2))) (3) of this section, a surcharge of ten dollars per instrument shall be charged by the county auditor for each document recorded, which will be in addition to any other charge authorized by law. The county may retain up to five percent of these funds collected solely for the collection, administration, and local distribution of these funds. Of the remaining funds, forty percent of the revenue generated through this surcharge will be transmitted monthly to the state treasurer who will deposit the funds into the ((Washington housing trust account. The office of community development of the department of community, trade, and economic development will develop guidelines for the use of these funds to support)) affordable housing for all account established in section 19 of this act. The department may use these funds for the following purposes:
     (a) To provide planning grants to local governments that receive less than twenty thousand dollars annually through revenue created by this chapter for the purpose of the creation of local affordable housing for all plans;
     (b) To fund building operation and maintenance costs of housing projects or units within housing projects that are affordable to extremely low-income ((persons)) households with incomes at or below thirty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses; and
     (c) To provide technical assistance to any participating local government that requests assistance. Technical assistance activities may include:
     (i) Assisting in identifying best practices from other areas;
     (ii) Assisting in identifying additional funding sources for specific projects;
     (iii) Assisting local governments to identify appropriate service providers with which the local government may subcontract for service provision and development activities when necessary; and
     (iv) Assisting local governments to implement a quality management program.
     (2) All of the remaining funds generated by this surcharge will be retained by the county and be deposited into a fund that must be used by the county and its cities and towns for programs and activities outlined in the local affordable housing for all plan. Housing projects or units within housing projects ((that are)) shall be affordable to ((very)) low-income ((persons)) households with incomes at or below ((fifty)) eighty percent of the area median income. The portion of the surcharge retained by a county ((shall)) may be allocated to ((very)) low-income housing projects or units within such housing projects in the county and the cities within a county ((according to an interlocal agreement between the county and the cities within the county)), or for programs and services, consistent with countywide and local housing needs and policies. A priority shall be given to projects or units within projects, or programs and services that are affordable to very low-income households with incomes at or below fifty percent of the area median income. Local governments shall report upon performance measures established by the department in an annual report to the department as required in section 12 of this act. The funds generated with this surcharge shall not be used for construction of new housing if at any time the vacancy rate for available low-income housing within the county rises above ten percent. The vacancy rate for each county shall be developed using the state low-income vacancy rate standard developed under subsection (((3))) (5) of this section. Uses of these local funds are limited to:
     (a) Acquisition, construction, or rehabilitation of housing projects or units within housing projects that are affordable to ((very)) low-income ((persons)) households with incomes at or below ((fifty)) eighty percent of the area median income, including units for homeownership, rental units, and single room occupancy units;
     (b) Supporting building operation and maintenance costs of housing projects or units within housing projects eligible to receive housing trust funds, that are affordable to very low-income ((persons)) households with incomes at or below fifty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses;
     (c) Rental assistance vouchers for housing ((projects or)) units ((within housing projects)) that are affordable to very low-income ((persons)) households with incomes at or below fifty percent of the area median income, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program((, consistent with the United States department of housing and urban development's section 8 rental assistance voucher program standards)). The department shall develop statewide guidelines for a rental assistance program by 2007; ((and))
     (d) Operating costs for emergency shelters and licensed overnight youth shelters;
     (e) Housing programs and projects or housing services specifically referenced in the current local affordable housing for all plan; and
     (f) Activities eligible under chapter 43.185C RCW.
     (((2))) (3) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.
     (((3))) (4) Local governments shall report upon expenditures of funds created by this chapter to the department. The report shall include the amount of funding allocated, a description of the projects funded, and the outcome or anticipated outcome of each project. The department shall create an electronic reporting system.
     (5) The real estate research center at Washington State University shall develop a vacancy rate standard for low-income housing in the state as described in RCW 18.85.540(1)(i).

NEW SECTION.  Sec. 17   The sum of two million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2007, from the general fund to the affordable housing for all account established in section 19 of this act, for the purposes of accomplishing the planning, data system creation, data collection, and program implementation activities of this act. Of the two million dollars appropriated, the department of community, trade, and economic development shall distribute one million dollars to the participating local governments using a formula to be determined by the department and to be used for local planning, data system creation, data collection, and program implementation purposes.

NEW SECTION.  Sec. 18   The department, the housing finance commission, the affordable housing advisory board, and all participating local governments, housing authorities, and other nonprofits receiving state 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 the legislature to streamline and simplify all planning and reporting requirements. The entities listed in this section shall also give recommendations for additional legislative actions that could promote the affordable housing for all goal.

NEW SECTION.  Sec. 19   The affordable housing for all account is created in the custody of the state treasurer. The state's portion of the surcharge established in RCW 36.22.178 (as recodified by this act) shall be deposited in the account. Expenditures from the account may only be used for the affordable housing for all program as described in this chapter. 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.

Sec. 20   RCW 36.18.010 and 2005 c 484 s 19 and 2005 c 374 s 1 are each reenacted and amended to read as follows:
     County auditors or recording officers shall collect the following fees for their official services:
     (1) For recording instruments, for the first page eight and one-half by fourteen inches or less, five dollars; for each additional page eight and one-half by fourteen inches or less, one dollar. The fee for recording multiple transactions contained in one instrument will be calculated for each transaction requiring separate indexing as required under RCW 65.04.050 as follows: The fee for each title or transaction is the same fee as the first page of any additional recorded document; the fee for additional pages is the same fee as for any additional pages for any recorded document; the fee for the additional pages may be collected only once and may not be collected for each title or transaction;
     (2) For preparing and certifying copies, for the first page eight and one-half by fourteen inches or less, three dollars; for each additional page eight and one-half by fourteen inches or less, one dollar;
     (3) For preparing noncertified copies, for each page eight and one-half by fourteen inches or less, one dollar;
     (4) For administering an oath or taking an affidavit, with or without seal, two dollars;
     (5) For issuing a marriage license, eight dollars, (this fee includes taking necessary affidavits, filing returns, indexing, and transmittal of a record of the marriage to the state registrar of vital statistics) plus an additional five-dollar fee for use and support of the prevention of child abuse and neglect activities to be transmitted monthly to the state treasurer and deposited in the state general fund plus an additional ten-dollar fee to be transmitted monthly to the state treasurer and deposited in the state general fund. The legislature intends to appropriate an amount at least equal to the revenue generated by this fee for the purposes of the displaced homemaker act, chapter 28B.04 RCW;
     (6) For searching records per hour, eight dollars;
     (7) For recording plats, fifty cents for each lot except cemetery plats for which the charge shall be twenty-five cents per lot; also one dollar for each acknowledgment, dedication, and description: PROVIDED, That there shall be a minimum fee of twenty-five dollars per plat;
     (8) For recording of miscellaneous records not listed above, for the first page eight and one-half by fourteen inches or less, five dollars; for each additional page eight and one-half by fourteen inches or less, one dollar;
     (9) For modernization and improvement of the recording and indexing system, a surcharge as provided in RCW 36.22.170;
     (10) For recording an emergency nonstandard document as provided in RCW 65.04.047, fifty dollars, in addition to all other applicable recording fees;
     (11) For recording instruments, a surcharge as provided in RCW 36.22.178 (as recodified by this act); and
     (([(12)])) (12) For recording instruments, except for documents recording a birth, marriage, divorce, or death or any documents otherwise exempted from a recording fee under state law, a surcharge as provided in RCW 36.22.179.

NEW SECTION.  Sec. 21   This chapter does not require either the department or any local government to expend any funds to accomplish the goals of this chapter other than the revenues authorized in this act. However, neither the department nor any local government may use any funds authorized in this act to supplant or reduce any existing expenditures of public money to address the affordable housing shortage.

NEW SECTION.  Sec. 22   The joint legislative audit and review committee shall conduct a performance audit of the affordable housing for all programs every four years. The first audit shall be conducted on or before December 31, 2009. Each audit shall take no longer than six months or fifty thousand dollars to complete.

NEW SECTION.  Sec. 23   A new section is added to chapter 36.70A RCW to read as follows:
     (1) The department shall report annually on counties and cities planning under RCW 36.70A.040 to satisfy the affordable housing requirements of this chapter.
     (2) The report shall include:
     (a) A performance evaluation of county and city compliance and results in implementing adopted policies, the housing element of comprehensive plans, and development regulations pertaining to affordable housing; and
     (b) A performance evaluation of county and city efforts in leveraging public and private funds or other resources to provide, develop, and preserve affordable housing to all. Consideration will be given to factors, which include county size, population, and economic conditions.
     (3) The report shall be included in the state affordable housing for all plan.

NEW SECTION.  Sec. 24   A new section is added to chapter 43.185 RCW to read as follows:
     (1) The department, in collaboration with the affordable housing advisory board, shall establish performance measures for the housing assistance program. Performance measures shall, at a minimum, include the following:
     (a) Percentage of the affordable housing need met within the last twelve-month period;
     (b) Reduction of cost per unit developed;
     (c) Percent increase in affordable units preserved; and
     (d) Percent increase in other public and private funds leveraged.
     (2) The department, in collaboration with the affordable housing advisory board, shall establish individual performance measures for housing assistance program grantees.
     (3) The department shall include a summary of the performance evaluations of programs and projects financed by the housing assistance program in the annual state affordable housing for all plan.

Sec. 25   RCW 43.185A.020 and 1995 c 399 s 103 are each amended to read as follows:
     The affordable housing program is created in the department for the purpose of developing and coordinating public and private resources targeted to meet the affordable housing needs of low-income households in the state of Washington. The program shall be developed and administered by the department with advice and input from the affordable housing advisory board established in RCW 43.185B.020 (as recodified by this act). The program shall operate in coordination with the state affordable housing for all program established in section 3 of this act. Funding decisions made through the affordable housing program shall be consistent with the recommendations of the state affordable housing for all plan.

Sec. 26   RCW 43.185A.070 and 1991 c 356 s 16 are each amended to read as follows:
     The director shall monitor the activities of recipients of grants and loans under this chapter to determine compliance with the terms and conditions set forth in its application or stated by the department in connection with the grant or loan. The department shall establish performance measures upon which each grant or loan recipient must report. The department shall conduct, at a minimum, annual performance evaluations of all projects receiving affordable housing program assistance. The department shall report on performance evaluations annually in the updated state affordable housing for all plan.

Sec. 27   RCW 35.82.080 and 1989 c 363 s 3 are each amended to read as follows:
     It is hereby declared to be the policy of this state that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for low-income dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that no housing authority shall construct or operate any such project for profit, or as a source of revenue to the city or the county. Each housing authority shall annually provide to the department of community, trade, and economic development performance measurement data on the attainment of these policy goals. To this end, an authority shall fix the rentals for rental units for persons of low income in projects owned or leased by the authority at no higher rates than it shall find to be necessary in order to produce revenues which (together with all other available moneys, revenues, income and receipts of the authority from whatever sources derived) will be sufficient (1) to pay, as the same become due, the principal and interest on the bonds or other obligations of the authority issued or incurred to finance the projects; (2) to meet the cost of, and to provide for, maintaining and operating the projects (including the cost of any insurance) and the administrative expenses of the authority; and (3) to create (during not less than the six years immediately succeeding its issuance of any such bonds) a reserve sufficient to meet the largest principal and interest payments which will be due on such bonds in any one year thereafter and to maintain such reserve. Nothing contained in this section shall be construed to limit an authority's power to rent commercial space located in buildings containing housing projects or non low-income units owned, acquired, financed, or constructed under RCW 35.82.070 (5), (((16))) (18), or (((17))) (19) at profitable rates and to use any profit realized from such rentals in carrying into effect the powers and purposes provided to housing authorities under this chapter.

Sec. 28   RCW 35.21.685 and 1986 c 248 s 1 are each amended to read as follows:
     (1) A city or town may assist in the development or preservation of publicly or privately owned housing for ((persons)) households of low income by providing loans or grants of general municipal funds to the owners or developers of the housing. The loans or grants shall be authorized by the legislative authority of the city or town. They may be made to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by a ((person or family)) household of low income. As used in this section, "low income" means income that does not exceed eighty percent of the median income for the standard metropolitan statistical area in which the city or town is located.
     (2) Participating cities and towns shall annually report their efforts to the department of community, trade, and economic development housing division. Information from the report shall be included in the state and local affordable housing for all plans.
     (3) Housing constructed with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services: PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

Sec. 29   RCW 35.82.230 and 1965 c 7 s 35.82.230 are each amended to read as follows:
     At least once a year, an authority shall file with the clerk a report of its activities for the preceding year, and shall make recommendations with reference to such additional legislation or other action as it deems necessary in order to carry out the purposes of this chapter. Each city or county for which a particular housing authority exists shall conduct an annual performance evaluation of the housing authority, utilizing performance measures determined by the local governing body. The annual performance evaluation shall be submitted annually to the department of community, trade, and economic development. The report shall be integrated into the local affordable housing for all plan as required under section 12 of this act.

NEW SECTION.  Sec. 30   A new section is added to chapter 35.82 RCW to read as follows:
     All housing authorities receiving over two hundred thousand dollars from the state or financing through the Washington housing finance commission for housing projects during the previous twenty-four months must implement a quality management program and must apply to the Washington state quality award program once every three years. Every year, beginning in 2007, the department of community, trade, and economic development shall conduct a performance evaluation, using predetermined criteria, of housing authorities that have received funding from the state or financing through the Washington housing finance commission for housing projects during the previous twenty-four months.

Sec. 31   RCW 43.63A.505 and 1999 c 164 s 202 are each amended to read as follows:
     (1) The department shall establish and administer a "one-stop clearinghouse" to coordinate state assistance for growers and nonprofit organizations in developing housing for agricultural employees. Growers, housing authorities, and nonprofit organizations shall have direct access to the one-stop clearinghouse. The department one-stop clearinghouse shall provide assistance on planning and design, building codes, temporary worker housing regulations, financing options, and management to growers and nonprofit organizations interested in farmworker construction. The department one-stop clearinghouse shall also provide educational materials and services to local government authorities on Washington state law concerning farmworker housing.
     (2) The department shall report on the performance of the one-stop clearinghouse by December 31st of each year as part of its report on the state affordable housing for all program and shall make recommendations for improvement. Performance measures for all state-supported farmworker housing activities shall be included in the state affordable housing for all plan. The performance measures to be included in the report are the following, at a minimum:
     (a) Percent of farmworker housing developed within the last twelve-month period that received assistance from the one-stop clearinghouse;
     (b) Percent of farmworker housing need met in the state;
     (c) Percent of farmworker housing developed within the last twelve-month period that complies with building codes and temporary worker housing regulations; and
     (d) Amount leveraged in public and private dollars for the development of farmworker housing within the last twelve-month period.

Sec. 32   RCW 43.63A.640 and 1994 c 114 s 5 are each amended to read as follows:
     The department shall carry out the following duties:
     (1) Administer the program;
     (2) Identify organizations eligible to receive funds to implement the program;
     (3) Develop and adopt the necessary rules and procedures for implementation of the program and for dispersal of program funds to eligible organizations;
     (4) Establish performance measures for the program to include the following:
     (a) Percentage of households that retained housing due to the program's intervention; and
     (b) Percentage of on-time loan payments during the last twelve-month period.
     (5) Establish the interest rate for repayment of loans at two percent below the market rate;
     (((5))) (6) Work with lending institutions and social service providers in the eligible communities to assure that all eligible persons are informed about the program;
     (((6))) (7) Utilize federal and state programs that complement or facilitate carrying out the program;
     (((7))) (8) Ensure that local eligible organizations that dissolve or become ineligible assign their program funds, rights to loan repayments, and loan security instruments, to the government of the county in which the local organization is located. If the county government accepts the program assets described in this subsection, it shall act as a local eligible organization under the provisions of RCW ((43.63A.600 through)) 43.63A.640. If the county government declines to participate, the program assets shall revert to the department;
     (9) Include activities, performance measures, and outcomes of activities of the program in the state affordable housing for all plan.

Sec. 33   RCW 43.63A.645 and 1999 c 267 s 5 are each amended to read as follows:
     The department shall, by rule, establish program standards, performance measures, eligibility standards, eligibility criteria, and administrative rules for emergency housing programs and specify other benefits that may arise in consultation with providers.

Sec. 34   RCW 43.330.110 and 1993 c 280 s 14 are each amended to read as follows:
     (1) The department shall maintain an active effort to help communities, families, and individuals build and maintain capacity to meet housing needs in Washington state. The department shall facilitate partnerships among the many entities related to housing issues and leverage a variety of resources and services to produce comprehensive, cost-effective, and innovative housing solutions.
     (2) The department shall assist in the production, development, rehabilitation, and operation of owner-occupied or rental housing for very low, low, and moderate-income persons; operate programs to assist home ownership, offer housing services, and provide emergency, transitional, and special needs housing services; and qualify as a participating state agency for all programs of the federal department of housing and urban development or its successor. The department shall develop or assist local governments in developing housing plans required by the state or federal government.
     (3) The department shall coordinate and administer energy assistance and residential energy conservation and rehabilitation programs of the federal and state government through nonprofit organizations, local governments, and housing authorities.
     (4) The department shall include information on its activities, outcomes, and performance measures in the state affordable housing for all plan.

Sec. 35   RCW 43.330.165 and 1998 c 37 s 8 are each amended to read as follows:
     (1) The department shall work with the advisory group established in subsection (2) of this section to review proposals and make prioritized funding recommendations to the department or funding approval board that oversees the distribution of housing trust fund grants and loans to be used for the development, maintenance, and operation of housing for low-income farmworkers.
     (2) A farmworker housing advisory group representing growers, farmworkers, and other interested parties shall be formed to assist the department in the review and priority funding recommendations under this section.
     (3) The department shall establish performance measures for farmworker programs receiving state funding to include the following:
     (a) Percentage of need for farmworker housing met within the last twelve-month period; and
     (b) Percentage of farmworkers who have obtained permanent housing.
     (4) The department shall include farmworker housing performance measures in its state affordable housing for all plan.

Sec. 36   RCW 43.330.170 and 2002 c 294 s 4 are each amended to read as follows:
     The office of community development of the department of community, trade, and economic development is directed to conduct a statewide housing market analysis by region. The purpose of the analysis is to identify areas of greatest need for the appropriate investment of state affordable housing funds, using vacancy data and other appropriate measures of need for low-income housing. The analysis shall include the number and types of projects that counties have developed using the funds collected under chapter 294, Laws of 2002. The analysis shall be completed by September 2003, and updated ((every two years)) annually thereafter. The analysis shall be included in the state affordable housing for all plan.

Sec. 37   RCW 59.28.010 and 1989 c 188 s 1 are each amended to read as follows:
     The legislature finds that:
     (1) There is a severe shortage of federally assisted housing within the state of Washington. Over one hundred seventy thousand low and moderate-income households are eligible for federally assisted housing but are unable to locate vacant units.
     (2) Within the next twenty years, more than twenty-six thousand existing low-income housing units may be lost as a result of the prepayment of mortgages or loans by the owners, or as a result of the expiration of rental assistance contracts. Over three thousand units of federally assisted housing have already been lost and an additional nine thousand units may be lost within the next two and one-half years.
     (3) Recent reductions in federal housing assistance and tax benefits related to low-income housing make it uncertain whether additional units of federally assisted housing will be built or that those lost will be replaced.
     (4) The loss of federally assisted housing will adversely affect current tenants and lead to their displacement. It will also drastically reduce the supply of affordable housing in our communities.
     It is the purpose of this chapter to preserve federally assisted housing in the state of Washington and to minimize the involuntary displacement of tenants currently residing in such housing. The preservation of existing federally assisted housing is a critical strategy in achieving the state's goal of a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020.

Sec. 38   RCW 70.114A.010 and 1995 c 220 s 1 are each amended to read as follows:
     The legislature finds that there is an inadequate supply of temporary and permanent housing for migrant and seasonal workers in this state. The legislature also finds that unclear, complex regulations related to the development, construction, and permitting of worker housing inhibit the development of this much needed housing. The legislature further finds that as a result, many workers are forced to obtain housing that is unsafe and unsanitary.
     Therefore, it is the intent of the legislature to encourage the development of temporary and permanent housing for workers that is safe and sanitary by: Establishing a clear and concise set of regulations for temporary housing; establishing a streamlined permitting and administrative process that will be locally administered and encourage the development of such housing; and by providing technical assistance to organizations or individuals interested in the development of worker housing.
     The development of temporary and permanent worker housing is a critical strategy in achieving the state's goal of a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020. Information on activities, outcomes, and performance measures of the department under this chapter shall be included in the state affordable housing for all plan.

Sec. 39   RCW 70.114A.040 and 1995 c 220 s 4 are each amended to read as follows:
     The department ((is designated the single state agency responsible for encouraging)) shall collaborate with the departments of community, trade, and economic development, agriculture, and labor and industries to encourage the development of additional temporary worker housing((, and shall be)). The department of community, trade, and economic development is responsible for coordinating the activities of the various state and local agencies to assure a seamless, nonduplicative system for the development and operation of temporary worker housing. Information on the performance and efforts of all state departments under this chapter shall be included by the department of community, trade, and economic development in the state affordable housing for all plan.

Sec. 40   RCW 70.114A.085 and 1999 c 374 s 11 are each amended to read as follows:
     The department, in collaboration with the departments of community, trade, and economic development, agriculture, and labor and industries, shall prepare a report to the legislature on utilization of the temporary worker building code authorized by RCW 70.114A.081. The report shall include the number of housing units, number of families or individuals housed, number of growers obtaining permits, the geographic distribution of the permits, and recommendations of changes in the temporary worker building code necessary to avoid health and safety problems for the occupants. The report shall be ((transmitted to the senate committee on commerce, trade, housing and financial institutions and the house of representatives committee on economic development, housing and trade by December 15, 2000, and an update shall be transmitted every two years thereafter)) included in the department of community, trade, and economic development affordable housing for all plan. The department of community, trade, and economic development shall report on performance measures established by the department to include, at a minimum, the percentage of temporary and permanent housing need met within the preceding twelve-month period.

Sec. 41   RCW 70.164.010 and 1987 c 36 s 1 are each amended to read as follows:
     The legislature finds and declares that weatherization of the residences of low-income households will help conserve energy resources in this state and can reduce the need to obtain energy from more costly conventional energy resources. The legislature also finds that rising energy costs have made it difficult for low-income citizens of the state to afford adequate fuel for residential space heat. Weatherization of residences will lower energy consumption, making space heat more affordable for persons in low-income households. Weatherization will also reduce overall household costs, which increases the ability of low-income households to maintain safe, quality housing and thus contributes to achieving the state's goal of a decent, appropriate, and affordable home in a healthy, safe environment for every low-income household in the state by 2020. It will also reduce the uncollectible accounts of fuel suppliers resulting from low-income customers not being able to pay fuel bills.
     The program implementing the policy of this chapter is necessary to support the poor and infirm and also to benefit the health, safety, and general welfare of all citizens of the state.

NEW SECTION.  Sec. 42   (1) The department shall include performance measures related to the weatherization assistance program in the state affordable housing for all plan. Performance measures shall be established by the department; however, the measures must include, at a minimum, the following information by county and major city:
     (a) Percent of low-income households requesting assistance that receive assistance; and
     (b) Percent of low-income households receiving assistance that pay less than thirty percent of household income on housing costs, including heating the residence.
     (2) Performance evaluations shall be conducted for each participating vendor.

Sec. 43   RCW 43.63A.115 and 1993 c 280 s 60 are each amended to read as follows:
     (1) The community action agency network, established initially under the federal economic opportunity act of 1964 and subsequently under the federal community services block grant program of 1981, as amended, shall be a delivery system for federal and state anti-poverty programs in this state, including but not limited to the community services block grant program, the low-income energy assistance program, and the federal department of energy weatherization program.
     (2) Local community action agencies comprise the community action agency network. The community action agency network shall serve low-income persons in the counties. Each community action agency and its service area shall be designated in the state federal community service block grant plan as prepared by the department of community, trade, and economic development.
     (3) Funds for anti-poverty programs may be distributed to the community action agencies by the department of community, trade, and economic development and other state agencies in consultation with the authorized representatives of community action agency networks.
     (4) Information regarding community action agency affordable housing programs and performance measures shall be included in the state affordable housing for all plan required in RCW 43.185B.040 (as recodified by this act).
     (5) The department of community, trade, and economic development shall conduct an annual performance evaluation of all community action agency affordable housing programs.

Sec. 44   RCW 43.185B.020 and 2003 c 40 s 1 are each amended to read as follows:
     (1) The department shall establish the affordable housing advisory board to consist of ((twenty-two)) seventeen members.
     (a) ((The following nineteen)) Nine members shall be appointed by the governor on the basis of geographic distribution, cultural diversity, and their expertise in one or more of the following fields:
     (i) ((Two representatives of the)) Residential construction ((industry));
     (ii) ((Two representatives of the)) Home mortgage lending ((profession));
     (iii) ((One representative of the)) Real estate sales ((profession));
     (iv) ((One representative of the)) Apartment management and operations ((industry));
     (v) ((One representative of the)) For-profit and nonprofit housing development ((industry));
     (vi) ((One representative of)) For-profit and nonprofit rental housing ((owners));
     (vii) ((One representative of the nonprofit housing development industry;
     (viii) One representative of)) Homeless shelter ((operators)) operations and services;
     (((ix) One representative of lower-income persons;
     (x) One representative of)) (viii) Special needs ((populations)) population services;
     (((xi) One representative of)) (ix) Public housing authorities ((as created)) under chapter 35.82 RCW;
     (((xii))) (x) Two representatives ((of)) shall be appointed by the governor from among persons nominated by the Washington association of counties, one ((representative)) of which shall be from a county that is located east of the crest of the Cascade mountains, and one of which shall be from a county that is located west of the crest of the Cascade mountains;
     (((xiii))) (xi) Two representatives ((of)) shall be appointed by the governor from among persons nominated by the association of Washington cities, one ((representative)) of which shall be from a city that is located east of the crest of the Cascade mountains, and one of which shall be from a city that is located west of the crest of the Cascade mountains; and
     (((xiv))) (xii) One representative shall be appointed by the governor to serve as chair of the affordable housing advisory board((;
     (xv) One representative at large)).
     (b) ((The following)) Three members shall serve as ex officio((, nonvoting members)):
     (i) The director or the director's designee;
     (ii) The executive director of the Washington state housing finance commission or the executive director's designee; and
     (iii) The secretary of social and health services or the secretary's designee.
     (2)(((a))) The members of the affordable housing advisory board appointed by the governor shall be appointed for four-year terms, except that the chair shall be appointed to serve a two-year term. ((The terms of five of the initial appointees shall be for two years from the date of appointment and the terms of six of the initial appointees shall be for three years from the date of appointment. The governor shall designate the appointees who will serve the two-year and three-year terms.)) All members of the board serving on the effective date of this act shall continue to serve through the end of the terms to which they were originally appointed. As vacancies in the positions are filled by the governor, the governor shall designate the length of the term of each position filled, with the requirement that five of the positions serve terms that overlap, by two years, the terms of the four remaining positions. The members of the advisory board shall serve without compensation, but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.
     (((b) The governor, when making appointments to the affordable housing advisory board, shall make appointments that reflect the cultural diversity of the state of Washington.))
     (3) The affordable housing advisory board shall serve as the ((department's)) state's principal advisory body on housing and housing-related issues((, and replaces the department's existing boards and task forces on housing and housing-related issues)) and will submit annual reports, consistent with RCW 43.185B.030 (as recodified by this act), to the department and to the appropriate committees of the legislature.
     (4) The affordable housing advisory board shall meet regularly and may appoint technical advisory committees, which may include members and nonmembers of the affordable housing advisory board, as needed to address specific issues and concerns.
     (5) The department, in conjunction with the Washington state housing finance commission and the department of social and health services, shall supply such information and assistance as are deemed necessary for the advisory board to carry out its duties under this section.
     (6) The department shall provide administrative and clerical assistance to the affordable housing advisory board.

Sec. 45   RCW 43.185.015 and 1995 c 399 s 100 are each amended to read as follows:
     There is created within the department the housing assistance program to carry out the purposes of this chapter. The program shall be developed and administered by the department with advice and input from the affordable housing advisory board established in RCW 43.185B.020 (as recodified by this act). The housing assistance program must operate in coordination with the state affordable housing for all program established in section 3 of this act. Funding decisions made through the housing assistance program must be consistent with recommendations of the state affordable housing for all plan.

Sec. 46   RCW 43.185.110 and 1993 c 478 s 15 are each amended to read as follows:
     The affordable housing advisory board established in RCW 43.185B.020 (as recodified by this act) shall advise the director on housing needs in this state, including housing needs for persons who are mentally ill or developmentally disabled or youth who are blind or deaf or otherwise disabled, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter. Such advice shall be consistent with the state affordable housing for all plan and policies and plans developed by regional support networks according to chapter 71.24 RCW for the mentally ill and the developmental disabilities planning council for the developmentally disabled.

NEW SECTION.  Sec. 47   A new section is added to chapter 35.82 RCW to read as follows:
     The primary objective of all housing authorities is to provide decent, safe, and affordable housing for families who, due to economic hardship or disabilities, find it difficult or impossible to obtain housing in the private real estate market. A second objective is to assist families in achieving self-sufficiency.

Sec. 48   RCW 43.63A.650 and 1999 c 267 s 3 are each amended to read as follows:
     (1) The department shall be the principal state department responsible for coordinating federal and state resources and activities in housing, except for programs administered by the Washington state housing finance commission under chapter 43.180 RCW, and for evaluating the operations and accomplishments of other state departments and agencies as they affect housing. The department shall conduct an annual evaluation of all state departments and agencies regarding their housing programs and activities. The department shall provide copies of the evaluation reports to the appropriate committees of the legislature by December 31st of each year.
     (2) The department shall work with local governments, tribal organizations, local housing authorities, nonprofit community or neighborhood-based organizations, and regional or statewide nonprofit housing assistance organizations, for the purpose of coordinating federal and state resources with local resources for housing.
     (3) The department shall be the principal state department responsible for providing shelter and housing services to homeless families with children. The department shall have the principal responsibility to coordinate, plan, and oversee the state's activities for developing a coordinated and comprehensive plan to serve homeless families with children. The plan shall be developed collaboratively with the department of social and health services. The department shall include community organizations involved in the delivery of services to homeless families with children, and experts in the development and ongoing evaluation of the plan. The department shall follow professionally recognized standards and procedures. The plan shall be implemented within amounts appropriated by the legislature for that specific purpose in the operating and capital budgets. The department shall submit the plan to the appropriate committees of the senate and house of representatives no later than September 1, 1999, and shall update the plan and submit it to the appropriate committees of the legislature by January 1st of every odd-numbered year through 2007. The plan shall address at least the following: (a) The need for prevention assistance; (b) the need for emergency shelter; (c) the need for transitional assistance to aid families into permanent housing; (d) the need for linking services with shelter or housing; and (e) the need for ongoing monitoring of the efficiency and effectiveness of the plan's design and implementation.

NEW SECTION.  Sec. 49   RCW 36.22.178, 43.185B.020, 43.185B.030, and 43.185B.040 are each recodified as sections in chapter 43.--- RCW (created in section 50 of this act).

NEW SECTION.  Sec. 50   Sections 1 through 7, 10 through 15, 18, 19, 21, 22, and 42 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 51   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION.  Sec. 52   RCW 43.185B.010 (Definitions) and 1995 c 399 s 104 & 1993 c 478 s 4 are each repealed.