READ FIRST TIME 03/07/05.   

     AN ACT Relating to preventing and ending homelessness in the state of Washington; amending RCW 36.22.178, 36.18.010, 43.185B.005, and 43.185B.009; adding a new section to chapter 36.22 RCW; adding a new chapter to Title 43 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   Despite laudable efforts by all levels of government, private individuals, nonprofit organizations, and charitable foundations to end homelessness, the number of homeless persons in Washington is unacceptably high. The state's homeless population, furthermore, includes a large number of families with children, youth, and employed persons. The legislature finds that the fiscal and societal costs of homelessness are high for both the public and private sectors, and that ending homelessness should be a goal for state and local government.
     The legislature finds that there are many causes of homelessness, including a shortage of affordable housing; a shortage of family-wage jobs which undermines housing affordability; a lack of an accessible and affordable health care system available to all who suffer from physical and mental illnesses and chemical and alcohol dependency; domestic violence; and a lack of education and job skills necessary to acquire adequate wage jobs in the economy of the twenty-first century.
     The support and commitment of all sectors of the statewide community is critical to the chances of success in ending homelessness in Washington. While the provision of housing and housing-related services to the homeless should be administered at the local level to best address specific community needs, the legislature also recognizes the need for the state to play a primary coordinating, supporting, and monitoring role. There must be a clear assignment of responsibilities and a clear statement of achievable and quantifiable goals. Systematic statewide data collection on homelessness in Washington must be a critical component of such a program enabling the state to work with local governments to count homeless persons and assist them in finding housing.
     The systematic collection and rigorous evaluation of homeless data, a search for and implementation through adequate resource allocation of best practices, and the systematic measurement of progress toward interim goals and the ultimate goal of ending homelessness are all necessary components of a statewide effort to end homelessness in Washington by July 1, 2015.

NEW SECTION.  Sec. 2   This chapter may be known and cited as the homelessness housing and assistance act.

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

NEW SECTION.  Sec. 4   The governor shall establish the interagency council on homelessness and appoint, at least, the director of the department, the secretary of the department of social and health services, the secretary of the department of corrections, the director of the department of veterans affairs, the director of the employment security department, the director of the department of health, and the director of the office of financial management to the council. The interagency council on homelessness shall be responsible to further the goals of the state ten-year homeless housing strategic plan to end homelessness through the following actions:
     (1) Aligning housing and supporting services policies and resources among state agencies;
     (2) Identifying and eliminating policies and actions which contribute to homelessness or interfere with its reduction; and
     (3) Adopting or recommending new policies to improve practices and align resources, including those policies requested by the affordable housing advisory board or through state and local homeless housing plans.

NEW SECTION.  Sec. 5   There is created within the department the homeless housing program to develop and coordinate a statewide strategic plan aimed at housing homeless persons. 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.

NEW SECTION.  Sec. 6   The department shall annually conduct a Washington homeless census or count consistent with the requirements of RCW 43.63A.655. The census shall make every effort to count all homeless individuals living outdoors, in shelters, and in transitional housing, coordinated, when reasonably feasible, with already existing homeless census projects including those funded in part by the United States department of housing and urban development under the McKinney-Vento homeless assistance program. The department shall determine, in consultation with local governments, the data to be collected.
     All personal information collected in the census is confidential, and the department and each local government shall take all necessary steps to protect the identity and confidentiality of each person counted.
     The department and each local government are prohibited from disclosing any personally identifying information about any homeless individual when there is reason to believe or evidence indicating that the homeless individual is an adult or minor victim of domestic violence, dating violence, sexual assault, or stalking or is the parent or guardian of a child victim of domestic violence, dating violence, sexual assault, or stalking; or revealing other confidential information regarding HIV/AIDS status, as found in RCW 70.24.105. The department and each local government shall not ask any homeless housing provider to disclose personally identifying information about any homeless individuals when the providers implementing those programs have reason to believe or evidence indicating that those clients are adult or minor victims of domestic violence, dating violence, sexual assault, or stalking or are the parents or guardians of child victims of domestic violence, dating violence, sexual assault, or stalking. Summary data for the provider's facility or program may be substituted.
     The Washington homeless census shall be conducted annually on a schedule created by the department. The department shall make summary data by county available to the public each year. This data, and its analysis, shall be included in the department's annual updated homeless housing program strategic plan.
     Based on the annual census and provider information from the local government plans, the department shall, by the end of year four, implement an online information and referral system to enable local governments and providers to identify available housing for a homeless person. The department shall work with local governments and their providers to develop a capacity for continuous case management to assist homeless persons.
     By the end of year four, the department shall implement an organizational quality management system.

NEW SECTION.  Sec. 7   (1) Six months after the first Washington homeless census, the department shall, in consultation with the interagency council on homelessness and the affordable housing advisory board, prepare and publish a ten-year homeless housing strategic plan which shall outline statewide goals and performance measures and shall be coordinated with the plan for homeless families with children required under RCW 43.63A.650. To guide local governments in preparation of their first local homeless housing plans due December 31, 2005, the department shall issue by October 15, 2005, temporary guidelines consistent with this chapter and including the best available data on each community's homeless population. Local governments' ten-year homeless housing plans shall not be substantially inconsistent with the goals and program recommendations of the temporary guidelines and, when amended after 2005, the state strategic plan.
     (2) Program outcomes and performance measures and goals shall be created by the department and reflected in the department's homeless housing strategic plan as well as interim goals against which state and local governments' performance may be measured, including:
     (a) By the end of year one, completion of the first census as described in section 6 of this act;
     (b) By the end of each subsequent year, goals common to all local programs which are measurable and the achievement of which would move that community toward housing its homeless population; and
     (c) By July 1, 2015, reduction of the homeless population statewide and in each county by fifty percent.
     (3) The department shall develop a consistent statewide data gathering instrument to monitor the performance of cities and counties receiving grants in order to determine compliance with the terms and conditions set forth in the grant application or required by the department.
     The department shall, in consultation with the interagency council on homelessness and the affordable housing advisory board, report annually to the governor and the appropriate committees of the legislature an assessment of the state's performance in furthering the goals of the state ten-year homeless housing strategic plan and the performance of each participating local government in creating and executing a local homeless housing plan which meets the requirements of this chapter. The annual report may include performance measures such as:
     (a) The reduction in the number of homeless individuals and families from the initial count of homeless persons;
     (b) The number of new units available and affordable for homeless families by housing type;
     (c) The number of homeless individuals identified who are not offered suitable housing within thirty days of their request or identification as homeless;
     (d) The number of households at risk of losing housing who maintain it due to a preventive intervention;
     (e) The transition time from homelessness to permanent housing;
     (f) The cost per person housed at each level of the housing continuum;
     (g) The ability to successfully collect data and report performance;
     (h) The extent of collaboration and coordination among public bodies, as well as community stakeholders, and the level of community support and participation;
     (i) The quality and safety of housing provided; and
     (j) The effectiveness of outreach to homeless persons, and their satisfaction with the program.
     (4) Based on the performance of local homeless housing programs in meeting their interim goals, on general population changes and on changes in the homeless population recorded in the annual census, the department may revise the performance measures and goals of the state homeless housing strategic plan, set goals for years following the initial ten-year period, and recommend changes in local governments' plans.

NEW SECTION.  Sec. 8   (1) Each local homeless housing task force shall prepare and recommend to its local government legislative authority a ten-year homeless housing plan for its jurisdictional area which shall be not inconsistent with the department's statewide temporary guidelines, for the December 31, 2005, plan, and thereafter the department's ten-year homeless housing strategic plan and which shall be aimed at eliminating homelessness, with a minimum goal of reducing homelessness by fifty percent by July 1, 2015. The local government may amend the proposed local plan and shall adopt a plan by December 31, 2005. Performance in meeting the goals of this local plan shall be assessed annually in terms of the performance measures published by the department. Local plans may include specific local performance measures adopted by the local government legislative authority, and may include recommendations for any state legislation needed to meet the state or local plan goals.
     (2) Eligible activities under the local plans include:
     (a) Rental and furnishing of dwelling units for the use of homeless persons;
     (b) Costs of developing affordable housing for homeless persons, and services for formerly homeless individuals and families residing in transitional housing or permanent housing and still at risk of homelessness;
     (c) Operating subsidies for transitional housing or permanent housing serving formerly homeless families or individuals;
     (d) Services to prevent homelessness, such as emergency eviction prevention programs including temporary rental subsidies to prevent homelessness;
     (e) Temporary services to assist persons leaving state institutions and other state programs to prevent them from becoming or remaining homeless;
     (f) Outreach services for homeless individuals and families;
     (g) Development and management of local homeless plans including homeless census data collection; identification of goals, performance measures, strategies, and costs and evaluation of progress towards established goals;
     (h) Rental vouchers payable to landlords for persons who are homeless or below thirty percent of the median income or in immediate danger of becoming homeless; and
     (i) Other activities to reduce and prevent homelessness as identified for funding in the local plan.

NEW SECTION.  Sec. 9   A new section is added to chapter 36.22 RCW to read as follows:
     (1) In addition to the surcharge authorized in RCW 36.22.178, and except as provided in subsection (2) of this section, an additional surcharge of ten dollars shall be charged by the county auditor for each document recorded, which will be in addition to any other charge allowed by law. The funds collected pursuant to this section are to be distributed and used as follows:
     (a) The auditor shall retain two percent for collection of the fee, and of the remainder shall remit sixty percent to the county to be deposited into a fund that must be used by the county and its cities and towns to accomplish the purposes of this act, six percent of which may be used by the county for administrative costs related to its homeless housing plan, and the remainder for programs which directly accomplish the goals of the county's homeless housing plan, except that for each city in the county which elects as authorized in section 12 of this act to operate its own homeless housing program, a percentage of the surcharge assessed under this section equal to the percentage of the city's local portion of the real estate excise tax collected by the county shall be transmitted at least quarterly to the city treasurer, without any deduction for county administrative costs, for use by the city for program costs which directly contribute to the goals of the city's homeless housing plan; of the funds received by the city, it may use six percent for administrative costs for its homeless housing program.
     (b) The auditor shall remit the remaining funds to the state treasurer for deposit in the homeless housing account. The department may use twelve and one-half percent of this amount for administration of the program established in section 5 of this act, including the costs of creating the statewide homeless housing strategic plan, measuring performance, providing technical assistance to local governments, and managing the homeless housing grant program. The remaining eighty-seven and one-half percent is to be distributed by the department to local governments through the homeless housing grant program.
     (2) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.

NEW SECTION.  Sec. 10   The homeless housing account is created in the custody of the state treasurer. The state's portion of the surcharge established in section 9 of this act must be deposited in the account. Expenditures from the account may be used only for the homeless housing 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.

NEW SECTION.  Sec. 11   (1) During each calendar year in which moneys from the homeless housing account are available for use by the department for the homeless housing grant program, the department shall announce to all Washington counties, participating cities, and through major media throughout the state, a grant application period of at least ninety days' duration. This announcement will be made as often as the director deems appropriate for proper utilization of resources. The department shall then promptly grant as many applications as will utilize available funds, less appropriate administrative costs of the department as described in section 9 of this act.
     (2) The department will develop, with advice and input from the affordable housing advisory board established in RCW 43.185B.020, criteria to evaluate grant applications.
     (3) The department may approve applications only if they are consistent with the local and state homeless housing program strategic plans. The department may give preference to applications based on some or all of the following criteria:
     (a) The total homeless population in the applicant local government service area, as reported by the most recent annual Washington homeless census;
     (b) Current local expenditures to provide housing for the homeless and to address the underlying causes of homelessness as described in section 1 of this act;
     (c) Local government and private contributions pledged to the program in the form of matching funds, property, infrastructure improvements, and other contributions; and the degree of leveraging of other funds from local government or private sources for the program for which funds are being requested, to include recipient contributions to total project costs, including allied contributions from other sources such as professional, craft and trade services, and lender interest rate subsidies;
     (d) Construction projects or rehabilitation that will serve homeless individuals or families for a period of at least twenty-five years;
     (e) Projects which demonstrate serving homeless populations with the greatest needs, including projects that serve special needs populations;
     (f) The degree to which the applicant project represents a collaboration between local governments, nonprofit community-based organizations, local and state agencies, and the private sector, especially through its integration with the coordinated and comprehensive plan for homeless families with children required under RCW 43.63A.650;
     (g) The cooperation of the local government in the annual Washington homeless census project;
     (h) The commitment of the local government and any subcontracting local governments, nonprofit organizations, and for-profit entities to employ a diverse work force;
     (i) The extent, if any, that the local homeless population is disproportionate to the revenues collected under this chapter, RCW 36.22.178, and section 9 of this act; and
     (j) Other elements shown by the applicant to be directly related to the goal and the department's state strategic plan.

NEW SECTION.  Sec. 12   (1) Only a local government is eligible to receive a homeless housing grant from the homeless housing account. Any city may assert responsibility for homeless housing 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 homeless housing program. The city shall then receive a percentage of the surcharge assessed under section 9 of this act equal to the percentage of the city's local portion of the real estate excise tax collected by the county. A participating city may also then apply separately for homeless housing program grants. A city choosing to operate a separate homeless housing program shall be responsible for complying with all of the same requirements as counties and shall adopt a local homeless housing plan meeting the requirements of this chapter for county local plans. However, the city may by resolution of its legislative authority accept the county's homeless housing task force as its own and based on that task force's recommendations adopt a homeless housing plan specific to the city.
     (2) Local governments applying for homeless housing funds may subcontract with any other local government, housing authority, community action agency or other nonprofit organization for the execution of programs contributing to the overall goal of ending homelessness within a defined service area. All subcontracts shall be consistent with the local homeless housing plan adopted by the legislative authority of the local government, time limited, and filed with the department and shall have specific performance terms. While a local government has the authority to subcontract with other entities, the local government continues to maintain the ultimate responsibility for the homeless housing program within its borders.
     (3) 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 the intention not to participate. A copy of the resolution shall also be transmitted to the county auditor and treasurer. If such a resolution is adopted, all of the funds otherwise due to the county under section 10 of this act shall be remitted monthly to the state treasurer for deposit in the homeless housing account, 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 eligible under this section to create and execute a local homeless housing plan for the county meeting the requirements of this chapter. The department shall expend all of the funds received from the county under this subsection to carry out the purposes of this act in the county, provided that the department may retain six percent of these funds to offset the cost of managing the county's program.
     (4) A resolution by the county declining to participate in the program shall have no effect on the ability of each city in the county to assert its right to manage its own program under this chapter, and the county shall monthly transmit to the city the funds due under this chapter.

NEW SECTION.  Sec. 13   The department shall allocate grant moneys from the homeless housing account to finance in whole or in part programs and projects in approved local homeless housing plans to assist homeless individuals and families gain access to adequate housing, prevent at-risk individuals from becoming homeless, address the root causes of homelessness, track and report on homeless-related data, and facilitate the movement of homeless or formerly homeless individuals along the housing continuum toward more stable and independent housing. The department may issue criteria or guidelines to guide local governments in the application process.

NEW SECTION.  Sec. 14   The department shall provide technical assistance to any participating local government that requests such assistance. Technical assistance activities may include:
     (1) Assisting local governments to identify appropriate parties to participate on local homeless housing task forces;
     (2) Assisting local governments to identify appropriate service providers with which the local governments may subcontract for service provision and development activities, when necessary;
     (3) Assisting local governments to implement or expand homeless census programs to meet homeless housing program requirements;
     (4) Assisting in the identification of "best practices" from other areas;
     (5) Assisting in identifying additional funding sources for specific projects; and
     (6) Training local government and subcontractor staff.

NEW SECTION.  Sec. 15   The department shall establish a uniform process for participating local governments to report progress toward reducing homelessness and meeting locally established goals.

NEW SECTION.  Sec. 16   The department may adopt such rules as may be necessary to effect the purposes of this chapter.

NEW SECTION.  Sec. 17   The department shall ensure that the state's interest is protected upon the development, use, sale, or change of use of projects constructed, acquired, or financed in whole or in part through the homeless housing grant program. These policies may include, but are not limited to: (1) Requiring a share of the appreciation in the project in proportion to the state's contribution to the project, or (2) requiring a lump sum repayment of the grant upon the sale or change of use of the project.

Sec. 18   RCW 36.22.178 and 2002 c 294 s 2 are each amended to read as follows:
     (1) Except as provided in subsection (2) 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 ((auditor)) county may retain up to five percent of these funds collected ((to administer)) 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 building operation and maintenance costs of housing projects or units within housing projects that are affordable to extremely low-income persons 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. ((Sixty percent of the revenue)) 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 housing projects or units within housing projects that are affordable to very low-income persons with incomes at or below fifty percent of the area median income. The portion of the surcharge retained by a county shall 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, consistent with countywide and local housing needs and policies. 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) of this section. ((Permissible)) 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 with incomes at or below fifty percent of the area median income;
     (b) Supporting building operation and maintenance costs of housing projects or units within housing projects ((built with)) eligible to receive housing trust funds, that are affordable to very low-income persons 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 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; and
     (d) Operating costs for emergency shelters and licensed overnight youth shelters.
     (2) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.
     (3) 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).

Sec. 19   RCW 36.18.010 and 2002 c 294 s 3 are each amended to read as follows:
     County auditors or recording officers shall collect the following fees for their official services:
     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;
     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;
     For preparing noncertified copies, for each page eight and one-half by fourteen inches or less, one dollar;
     For administering an oath or taking an affidavit, with or without seal, two dollars;
     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;
     For searching records per hour, eight dollars;
     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;
     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;
     For modernization and improvement of the recording and indexing system, a surcharge as provided in RCW 36.22.170((.));
     For recording an emergency nonstandard document as provided in RCW 65.04.047, fifty dollars, in addition to all other applicable recording fees((.));
     For recording instruments, a surcharge as provided in RCW 36.22.178; and
     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 section 9 of this act.

NEW SECTION.  Sec. 20   The department of social and health services shall exempt payments to individuals provided under this chapter when determining eligibility for public assistance.

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 for the reduction or prevention of homelessness or services for homeless persons.

Sec. 22   RCW 43.185B.005 and 1993 c 478 s 1 are each amended to read as follows:
     (1) The legislature finds that:
     (a) Housing is of vital statewide importance to the health, safety, and welfare of the residents of the state;
     (b) Reducing homelessness and moving individuals and families toward stable, affordable housing is of vital statewide importance;
     (c) Safe, affordable housing is an essential factor in stabilizing communities;
     (((c))) (d) Residents must have a choice of housing opportunities within the community where they choose to live;
     (((d))) (e) Housing markets are linked to a healthy economy and can contribute to the state's economy;
     (((e))) (f) Land supply is a major contributor to the cost of housing;
     (((f))) (g) Housing must be an integral component of any comprehensive community and economic development strategy;
     (((g))) (h) State and local government must continue working cooperatively toward the enhancement of increased housing units by reviewing, updating, and removing conflicting regulatory language;
     (((h))) (i) State and local government should work together in developing creative ways to reduce the shortage of housing;
     (((i))) (j) The lack of a coordinated state housing policy inhibits the effective delivery of housing for some of the state's most vulnerable citizens and those with limited incomes; and
     (((j))) (k) It is in the public interest to adopt a statement of housing policy objectives.
     (2) The legislature declares that the purposes of the Washington housing policy act are to:
     (a) Provide policy direction to the public and private sectors in their attempt to meet the shelter needs of Washington residents;
     (b) Reevaluate housing and housing-related programs and policies in order to ensure proper coordination of those programs and policies to meet the housing needs of Washington residents;
     (c) Improve the delivery of state services and assistance to very low-income and low-income households and special needs populations;
     (d) Strengthen partnerships among all levels of government, and the public and private sectors, including for-profit and nonprofit organizations, in the production and operation of housing to targeted populations including low-income and moderate-income households;
     (e) Increase the supply of housing for persons with special needs;
     (f) Encourage collaborative planning with social service providers;
     (g) Encourage financial institutions to increase residential mortgage lending; and
     (h) Coordinate housing into comprehensive community and economic development strategies at the state and local level.

Sec. 23   RCW 43.185B.009 and 1993 c 478 s 3 are each amended to read as follows:
     The objectives of the Washington housing policy act shall be to attain the state's goal of a decent home in a healthy, safe environment for every resident of the state by strengthening public and private institutions that are able to:
     (1) Develop an adequate and affordable supply of housing for all economic segments of the population, including the destitute;
     (2) Identify and reduce the causal factors preventing the state from reaching its goal;
     (3) Assist very low-income and special needs households who cannot obtain affordable, safe, and adequate housing in the private market;
     (((3))) (4) Encourage and maintain home ownership opportunities;
     (((4))) (5) Reduce life-cycle housing costs while preserving public health and safety;
     (((5))) (6) Preserve the supply of existing affordable housing;
     (((6))) (7) Provide housing for special needs populations;
     (((7))) (8) Ensure fair and equal access to the housing market;
     (((8))) (9) Increase the availability of mortgage credit at low interest rates; and
     (((9))) (10) Coordinate and be consistent with the goals, objectives, and required housing element of the comprehensive plan in the state's growth management act in RCW 36.70A.070.

NEW SECTION.  Sec. 24   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. 25   This act takes effect August 1, 2005.

NEW SECTION.  Sec. 26   Sections 1 through 8, 10 through 17, 20, 21, 24, and 25 of this act constitute a new chapter in Title 43 RCW.