BILL REQ. #:  H-4640.1 

READ FIRST TIME 1/31/06.   

     AN ACT Relating to using surplus property to develop affordable housing; and amending RCW 43.63A.510, 35.21.687, 36.34.137, 43.20A.037, 47.12.063, 47.12.064, 72.09.055, 43.19.19201, 79A.05.170, 79A.05.175, and 79.11.005.

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

Sec. 1   RCW 43.63A.510 and 1993 c 461 s 2 are each amended to read as follows:
     (1) The department shall work with the departments of natural resources, ((transportation,)) social and health services, corrections, and general administration, as well as all cities, towns, and counties, to identify and catalog under-utilized, ((state-)) publicly owned land and property suitable for the development of affordable housing for very low-income, low-income or moderate-income households. The department, and the departments of natural resources, ((transportation,)) social and health services, corrections, and general administration, as well as cities, towns, and counties, shall ((provide)) produce an inventory of real property that is owned or administered by each agency or local government and is available for lease or sale. The inventories shall be provided to the department by November 1, 1993, with inventory revisions provided ((each November 1 thereafter)) monthly beginning in June 2006.
     (2) ((Upon written request,)) The department shall ((provide a copy of)) publicly advertise on its web site the inventory of ((state-owned and publicly owned)) all lands and buildings ((to parties interested in developing the sites for affordable housing)) owned by the state, cities, towns, and counties that are available for lease or sale, including contact information. Printed copies of the list shall be provided upon request.
     (3) As used in this section:
     (a) "Affordable housing" means ((residential housing that is rented or owned by a person who qualifies as a very low-income, low-income, or moderate-income household or who is from a special needs population, and whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income)) 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 the 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 all utilities other than telephone costs, to qualify as affordable housing.
     (b) "Very low-income household" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the median income, adjusted for household size, for the county where the affordable housing is located.
     (c) "Low-income household" means a single person, family, or unrelated persons living together whose income is more than fifty percent but is at or below eighty percent of the median income where the affordable housing is located.
     (d) "Moderate-income household" means a single person, family, or unrelated persons living together whose income is more than eighty percent but is at or below one hundred fifteen percent of the median income where the affordable housing is located.
     (e) "Nonprofit housing organization" means any public or private nonprofit organization that: (i) Is organized under federal, state, or local laws; (ii) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (iii) 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.
     (f) "Authority" or "housing authority" means any of the public corporations created by RCW 35.82.030.
     (4) Property for sale, which is included in the inventory as required by subsections (1) and (2) of this section, shall be offered, for the first ninety days after its availability, exclusively to public and private nonprofit housing organizations and housing authorities. Nonprofit housing organizations and authorities may purchase such property at ninety percent of its appraised value under reasonable option and purchase conditions.
     (a) To be considered, each purchase offer must include a proposed project description, including an estimated number of affordable housing units to be created. A written commitment must be provided that explicitly states that the nonprofit housing organization or housing authority will develop affordable housing for households earning at or below eighty percent of the area median income. The specific income level, or income levels, to be served must be included in the commitment statement. The written commitment must also include a statement that the organization or authority agrees to maintain the affordability of those housing units for a minimum of thirty years. The department may establish additional requirements for nonprofit housing organizations and authorities under this chapter.
     (b) The department will establish criteria to use if more than one purchase offer is received from nonprofit housing organizations and housing authorities for a single piece of property. Such criteria may include giving preference to nonprofit housing organizations and housing authorities that propose affordable housing developments which:
     (i) Serve the lowest income populations or special needs populations;
     (ii) Create the greatest number of units;
     (iii) Preserve the affordability of those units for the longest periods of time; and
     (iv) Integrate other supportive services.
     (c) The deed transferring the property sold under this section must include a condition that if the nonprofit housing organization or housing authority is found to be significantly out of compliance with the written commitment made upon purchase of the property, as required in (a) of this subsection, the nonprofit housing organization or housing authority shall remit to the state, city, town, or county, from which the property was purchased, the equivalent of ten percent of the property's appraised value as of the day of sale, plus interest on that ten percent which shall be calculated using the prevailing interest rate for superior court civil judgments.
     (d) After ninety days, if no purchase offers are made on behalf of a nonprofit housing organization or housing authority, which meet the requirements of (a) of this subsection, offers from the general public may be considered.
     (5) The department of community, trade, and economic development shall produce a single statewide report, to be provided to the appropriate committees of the legislature each year by December 31st, including information on all publicly owned surplus property that was purchased by a nonprofit housing organization or housing authority. The report shall include the following:
     (a) A list of all properties purchased and the identity of all corresponding nonprofit or housing authority purchasers;
     (b) For each property, the number of affordable housing units created, under development, and planned, including anticipated dates of completion if applicable;
     (c) For each property, a notation of the income level populations for which the housing units shall be available.
     (6) Real property which is designated or which was acquired from the federal government as state forest lands is exempt from this chapter.

Sec. 2   RCW 35.21.687 and 1995 c 399 s 37 are each amended to read as follows:
     (1) Every city and town, including every code city operating under Title 35A RCW, shall identify and catalog real property owned by the city or town that is no longer required for its purposes and is suitable for the development of affordable housing for very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory shall include the location, approximate size, and current zoning classification of the property. Every city and town shall provide a copy of the inventory to the department of community, trade, and economic development by November 1, 1993, with inventory revisions ((each November 1 thereafter)) provided monthly beginning in June 2006.
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is included in the inventory as required by subsection (1) of this section, shall be offered, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510(4).
     (3) Every city and town, including every code city operating under Title 35A RCW, shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The inventory revision shall also contain a list of real property that has become available since the last update. The inventory revision shall be provided monthly to the department of community, trade, and economic development. As used in this section, "real property" means buildings, land, or buildings and land.
     (4) An annual report must be submitted to the department of community, trade, and economic development, which shall include a list of all properties that were purchased by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5).
     (5) The department of community, trade, and economic development shall consolidate municipal reports required in subsection (4) of this section into the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 3   RCW 36.34.137 and 1993 c 461 s 5 are each amended to read as follows:
     (1) Every county shall identify and catalog real property owned by the county that is no longer required for its purposes and is suitable for the development of affordable housing for very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory shall include the location, approximate size, and current zoning classification of the property. Every county shall provide a copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993)), with inventory revisions ((each November 1 thereafter)) provided monthly beginning in June 2006.
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is included in the inventory as required by subsection (1) of this section, shall be offered, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510(4).
     (3) Every county shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The inventory revision shall include an updated listing of real property that has become available since the last update, and shall be provided monthly to the department of community, trade, and economic development. As used in this section, "real property" means buildings, land, or buildings and land.
     (4) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5).
     (5) The department of community, trade, and economic development shall consolidate county reports required in subsection (4) of this section into the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 4   RCW 43.20A.037 and 1995 c 399 s 65 are each amended to read as follows:
     (1) The department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory shall include the location, approximate size, and current zoning classification of the property. The department shall provide a copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)), with inventory revisions provided monthly beginning in June 2006.
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is included in the inventory as required by subsection (1) of this section, shall be offered, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510(4).
     (3) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. The inventory revision shall be provided monthly to the department of community, trade, and economic development. As used in this section, "real property" means buildings, land, or buildings and land.
     (4) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5).
     (5) The department of community, trade, and economic development shall include this information in the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 5   RCW 47.12.063 and 2002 c 255 s 1 are each amended to read as follows:
     (1) It is the intent of the legislature to continue the department's policy giving priority consideration to abutting property owners in agricultural areas when disposing of property through its surplus property program under this section.
     (2) Whenever the department determines that any real property owned by the state of Washington and under the jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so, the department may sell the property or exchange it in full or part consideration for land or improvements or for construction of improvements at fair market value to any of the following governmental entities or persons:
     (a) In the case of property suitable for residential use, any nonprofit organization that is (i) dedicated to providing affordable housing to very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510 and (ii) eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW;
     (b) Any other state agency;
     (((b))) (c) The city or county in which the property is situated;
     (((c))) (d) Any other municipal corporation;
     (((d))) (e) Regional transit authorities created under chapter 81.112 RCW;
     (((e))) (f) The former owner of the property from whom the state acquired title;
     (((f))) (g) In the case of residentially improved property, a tenant of the department who has resided thereon for not less than six months and who is not delinquent in paying rent to the state;
     (((g))) (h) Any abutting private owner but only after each other abutting private owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in RCW 47.12.283;
     (((h))) (i) To any person through the solicitation of written bids through public advertising in the manner prescribed by RCW 47.28.050;
     (((i))) (j) To any other owner of real property required for transportation purposes;
     (((j) In the case of property suitable for residential use, any nonprofit organization dedicated to providing affordable housing to very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510 and is eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW;)) or
     (k) A federally recognized Indian tribe within whose reservation boundary the property is located.
     (3) Sales to purchasers may at the department's option be for cash, by real estate contract, or exchange of land or improvements. Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW or Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.
     (4) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.
     (5) All moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund.
     (6) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased for the purpose of affordable housing development by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5). The department of community, trade, and economic development shall include this information in the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 6   RCW 47.12.064 and 1995 c 399 s 121 are each amended to read as follows:
     (1) The department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory shall include the location, approximate size, and current zoning classification of the property. The department shall provide a copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)), with inventory revisions provided monthly beginning in June 2006.
     (2) ((By November 1 of each year, beginning in 1994,)) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. The inventory revision shall be provided monthly to the department of community, trade, and economic development. As used in this section, "real property" means buildings, land, or buildings and land.
     (3) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased by a nonprofit housing organization, as defined in RCW 43.63A.510, housing authority, or any other entity for the purpose of affordable housing development. The report must also include all information required in RCW 43.63A.510(5).
     (4) The department of community, trade, and economic development shall include this information in the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 7   RCW 72.09.055 and 1995 c 399 s 202 are each amended to read as follows:
     (1) The department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory shall include the location, approximate size, and current zoning classification of the property. The department shall provide a copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)), with inventory revisions provided monthly beginning in June 2006.
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is included in the inventory as required by subsection (1) of this section, shall be offered, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510(4).
     (3) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. The inventory revision shall be provided monthly to the department of community, trade, and economic development. As used in this section, "real property" means buildings, land, or buildings and land.
     (4) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5).
     (5) The department of community, trade, and economic development shall include this information in the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 8   RCW 43.19.19201 and 1995 c 399 s 64 are each amended to read as follows:
     (1) The department of general administration shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory shall include the location, approximate size, and current zoning classification of the property. The department of general administration shall provide a copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)), with inventory revisions provided monthly beginning in June 2006.
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is included in the inventory as required by subsection (1) of this section, shall be offered, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510(4).
     (3) The department of general administration shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. The inventory revision shall be provided monthly to the department of community, trade, and economic development. As used in this section, "real property" means buildings, land, or buildings and land.
     (4) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5).
     (5) The department of community, trade, and economic development shall include this information in the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 9   RCW 79A.05.170 and 1991 sp.s. c 13 s 23 are each amended to read as follows:
     (1) Any lands owned by the state parks and recreation commission, which are determined to be surplus to the needs of the state for development for state park purposes and which the commission proposes to deed to a local government or other entity for outdoor recreation purposes, shall be accompanied by a clause requiring that if the land is not used for outdoor recreation purposes, ownership of the land shall revert to the state parks and recreation commission.
     (2) The state parks and recreation commission, in cases where land subject to such a reversionary clause is proposed for use or disposal for purposes other than recreation, shall require that, if the land is surplus to the needs of the commission for park purposes at the time the commission becomes aware of its proposed use for nonrecreation purposes, the ((holder of the land or property shall reimburse the commission for the release of the reversionary interest in the land. The reimbursement shall be in the amount of the fair market value of the reversionary interest as determined by a qualified appraiser agreeable to the commission. Appraisal costs shall be borne by the local entity which holds title to the land)) commission shall offer the property for sale, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510. The commission shall provide a monthly revised inventory of real property sites that are available for the development of affordable housing.
     (3) ((Any funds generated under a reimbursement under this section shall be deposited in the parkland acquisition account which is hereby created in the state treasury. Moneys in this account are to be used solely for the purchase or acquisition of property for use as state park property by the commission, as directed by the legislature; all such funds shall be subject to legislative appropriation.)) An annual report must be submitted to the department of community, trade, and economic development which shall include a list of all properties that were purchased by a nonprofit housing organization or housing authority. The report must also include all information required in RCW 43.63A.510(5).
     (4) The department of community, trade, and economic development shall include this information in the single statewide report on surplus property required in RCW 43.63A.510(5).

Sec. 10   RCW 79A.05.175 and 1999 c 249 s 601 are each amended to read as follows:
     Whenever the commission finds that any land under its control cannot advantageously be used for park purposes, it is authorized to dispose of such land by the method provided in this section or by the method provided in RCW 79A.05.170. If such lands are school or other grant lands, control thereof shall be relinquished by resolution of the commission to the proper state officials. If such lands were acquired under restrictive conveyances by which the state may hold them only so long as they are used for park purposes, they may be returned to the donor or grantors by the commission. All other such lands must be sold by the method provided for in RCW 79A.05.170. After the first ninety days that the property becomes available, if no purchase offers are made on behalf of a nonprofit housing organization, as defined in RCW 43.63A.510, or housing authority, which meet the requirements of RCW 43.63A.510(4)(a), offers from the general public may be considered, lands may be either sold by the commission to the highest bidder or exchanged for other lands of equal value by the commission, and all conveyance documents shall be executed by the governor. All such exchanges shall be accompanied by a transfer fee, to be set by the commission and paid by the other party to the transfer; such fee shall be paid into the parkland acquisition account established under RCW 79A.05.170. Sealed bids on all sales shall be solicited at least twenty days in advance of the sale date by an advertisement appearing at least once a week for two consecutive weeks in a newspaper of general circulation in the county in which the land to be sold is located. If the commission feels that no bid received adequately reflects the fair value of the land to be sold, it may reject all bids, and may call for new bids. All proceeds derived from the sale of such park property shall be paid into the park land acquisition account. All land considered for exchange shall be evaluated by the commission to determine its adaptability to park usage. The equal value of all lands exchanged shall first be determined by the appraisals to the satisfaction of the commission. No sale or exchange of state park lands shall be made without the unanimous consent of the commission.

Sec. 11   RCW 79.11.005 and 2003 c 334 s 201 are each amended to read as follows:
     (1) The department is authorized to sell any real property not designated or acquired as state forest lands, but acquired by the state, either in the name of the forest board, the forestry board, or the division of forestry, for administrative sites, lien foreclosures, or other purposes whenever it shall determine that the lands are no longer or not necessary for public use.
     (2) Property for sale shall be offered, for the first ninety days after its availability, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and housing authorities as required in RCW 43.63A.510(4).
     (3) After ninety days, if no purchase offers are made on behalf of a nonprofit housing organization or housing authority which meet the requirements of RCW 43.63A.510(4)(a), offers from the general public may be considered and sales to the general public may be conducted under subsection (4) of this section.
     (4) The sale of property to the general public may be made after public notice to the highest bidder for such a price as approved by the governor, but not less than the fair market value of the real property, plus the value of improvements thereon. Any instruments necessary to convey title must be executed by the governor in a form approved by the attorney general.
     (((3))) (5) All amounts received from ((the sale)) all sales must be credited to the fund of the department of government that is responsible for the acquisition and maintenance of the property sold.