| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Capital Budget Committee | |
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.
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 Summary of Bill |
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Hearing Date: 2/26/08
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 the State 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: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.