HOUSE BILL REPORT
SB 6332
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Capital Budget
Title: An act relating to increasing the debt limit of the housing finance commission.
Brief Description: Increasing the debt limit of the housing finance commission.
Sponsors: Senators Kauffman, Kilmer, Shin, Murray, Sheldon, Marr, Rasmussen, Franklin, Berkey, Haugen, Kohl-Welles, Regala, Keiser, Spanel, McDermott, Rockefeller, Kline, Tom and McAuliffe; by request of Governor Gregoire.
Brief History:
Capital Budget: 2/26/08, 3/3/08 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON CAPITAL BUDGET
Majority Report: Do pass. Signed by 18 members: Representatives Fromhold, Chair; Ormsby, Vice Chair; Schual-Berke, Vice Chair; McDonald, Ranking Minority Member; Appleton, Blake, Chase, Dunshee, Flannigan, Hankins, Kelley, Orcutt, Pearson, Pedersen, Sells, Skinner, Smith and Upthegrove.
Staff: Nona Snell (786-7153).
Background:
The Housing Finance Commission (HFC) was created by the Legislature in 1983. However,
it is not a state agency, does not receive or lend state funds, and the HFC debt is not backed
by the full faith and credit of Washington.
The HFC acts as a conduit of federal financing for housing, nonprofit facilities, and
beginning farmers and ranchers. It issues both tax-exempt and taxable bonds to provide
below market-rate financing to nonprofit and for-profit housing developers who set aside a
certain percentage of their units for low-income individuals and families. The HFC also
issues tax-exempt bonds to provide below market-rate financing for non-housing nonprofit
facilities and for beginning farmers and ranchers.
To date, the HFC has financed more than 126,000 affordable housing units and elderly beds,
and provided over 38,000 loans for home ownership. It has also financed 127 nonprofit
facilities throughout the state. The Beginning Farmers and Ranchers Program was created in
2005, and no projects have yet been financed.
When created in 1983, the HFC's statutory debt limit was $1 billion. The debt limit was
raised to $2 billion in 1985, to $3 billion in 1999, and to $4.5 billion in 2006. The debt limit
is the total amount of debt the HFC is authorized to have outstanding at any one time. As of
January 2008, the HFC's outstanding debt reached $4 billion. Once the HFC reaches the
current debt limit of $4.5 billion, it must stop issuing debt to finance additional affordable
housing and nonprofit facilities.
Summary of Bill:
The HFC's debt limit is increased to $6.5 billion.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) This bill is Governor request legislation. The Governor believes this is a tool to
promote the development of affordable housing without spending state resources.
(Opposed) None.
Persons Testifying: Kari Burrell, Office of the Governor.