BILL REQ. #:  H-4925.1 

     AN ACT Relating to loans made by the community economic revitalization board; amending RCW 43.160.060; and adding a new section to chapter 43.160 RCW.

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

Sec. 1   RCW 43.160.060 and 2007 c 231 s 3 are each amended to read as follows:
     (1) The board is authorized to make direct loans to political subdivisions of the state and to federally recognized Indian tribes for the purposes of assisting the political subdivisions and federally recognized Indian tribes in financing the following:
     (a) The cost of public facilities, including development of land and improvements for public facilities, project-specific environmental, capital facilities, land use, permitting, feasibility, and marketing studies and plans; project design, site planning, and analysis; project debt and revenue impact analysis; as well as the construction, rehabilitation, alteration, expansion, or improvement of the facilities;
     (b) The cost of public works projects that support affordable rental and owner-occupied housing, including the planning, construction, repair, reconstruction, replacement, rehabilitation, or improvement of sidewalks, streets and roads, bridges, power utilities, water systems, storm and sanitary sewage systems, and solid waste facilities.
     (i) For the purposes of this section, "affordable rental housing" means rental housing units affordable to and occupied by households with incomes not exceeding eighty percent of the median income for housing located outside of high-cost areas, or equal to the median income for housing located within high-cost areas.
     (ii) For the purposes of this section, "affordable owner-occupied housing" means housing affordable to and occupied by households with incomes not exceeding one hundred fifteen percent of the median income for housing located outside of high-cost areas, or one hundred fifty percent of the median income for housing located within high-cost areas.
     (iii) For the purposes of this section, "high-cost area" means a county where the third quarter median house price for the previous year, as reported by the Washington center for real estate research at Washington State University, is equal to or greater than one hundred thirty percent of the statewide median house price published during the same time period.
     (2) A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision or the federally recognized Indian tribe and the finding by the board that financial circumstances require grant assistance to enable the project to move forward. However, at least ten percent of all financial assistance provided by the board in any biennium shall consist of grants to political subdivisions and federally recognized Indian tribes.
     (3) Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:
     (((1))) (a) The board shall not provide financial assistance:
     (((a))) (i) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.
     (((b))) (ii) For any project that evidence exists would result in a development or expansion that would displace existing jobs in any other community in the state.
     (((c))) (iii) For the acquisition of real property, including buildings and other fixtures which are a part of real property, except when the acquisition is directly related to the development of affordable rental housing and affordable owner-occupied housing defined in subsection (1)(b) of this section.
     (((d))) (iv) For a project the primary purpose of which is to facilitate or promote gambling.
     (((2))) (b) The board shall only provide financial assistance:
     (((a))) (i) For those projects which would result in specific private developments or expansions (((i))) (A) in manufacturing, production, food processing, assembly, warehousing, advanced technology, research and development, and industrial distribution; (((ii))) (B) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (((iii))) (C) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; (((iv))) (D) which support the relocation of businesses from nondistressed urban areas to rural counties or rural natural resources impact areas; ((or (v))) (E) which substantially support the trading of goods or services outside of the state's borders; or (F) for public works infrastructure that supports affordable housing as identified in subsection (1)(b) of this section.
     (((b))) (ii) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.
     (((c))) (iii) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the public facility improvement is made.
     (((3))) (iv) For public works projects that support affordable housing, identified in subsection (1)(b) of this section, and that demonstrate convincing evidence that (A) additional residential or mixed-use development will occur in an urban growth area designated under RCW 36.70A.110; (B) the proposed mixed-use residential development is within one-half mile of a transit station; and (C) either moderate or high-density, or both, housing developments will be constructed.
     (c) The board shall prioritize each proposed project according to:
     (((a))) (i) The relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located;
     (((b))) (ii) The rate of return of the state's investment, that includes the expected increase in state and local tax revenues associated with the project; and
     (((c))) (iii) Whether the applicant has developed and adhered to guidelines regarding its permitting process for those applying for development permits consistent with section 1(2), chapter 231, Laws of 2007.
     (4) A responsible official of the political subdivision or the federally recognized Indian tribe shall be present during board deliberations and provide information that the board requests.
     (5) Before any financial assistance application is approved, the political subdivision or the federally recognized Indian tribe seeking the assistance must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.160 RCW to read as follows:
     The affordable housing infrastructure account is created in the state treasury. All receipts from appropriations made to the account, repayments of loans made pursuant to RCW 43.160.060(1)(b), and other sources identified by the legislature must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes identified in RCW 43.160.060(1)(b).