Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Local Government & Housing Committee |
HB 2018
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: Regarding state funding for low-income housing.
Sponsors: Representatives Simpson, Miloscia and Chase.
Brief Summary of Bill |
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Hearing Date: 2/18/09
Staff: Sara del Moral (786-7291) and Thamas Osborn (786-7129)
Background:
Housing Finance Commission.
The Washington State Housing Finance Commission (WSHFC or Commission) stimulates the production of affordable single family, multifamily, and special needs housing through the:
issuance of revenue bonds;
administration of the federal Low-Income Housing Tax Credit Program; and
administration of other programs authorized under federal and state law.
The WSHFC offers financial incentives to developers and housing owners who meet certain federal and state guidelines. Typically, these requirements relate to making a percentage of housing units available to households of a given income level for a certain period of time.
Housing Assistance Program.
Through the Housing Assistance Program (Program), the Department of Community, Trade and Economic Development (DCTED or Department) uses money from the Housing Trust Fund and other sources to help finance loans and grants to provide housing to people with special housing needs and incomes below 50 percent of area median income (AMI).
The Department distributes Program funds through grants and loans. Each year, the Department must publicly announce a grant and loan application period and distribute all available funds, less a deduction of up to 5 percent for administrative costs.
The DCTED must give first priority to projects utilizing existing privately owned housing stock. In evaluating an application, the Department must apply a number of specific criteria. Examples include:
for a project focused on special needs populations, the degree of commitment to provide habilitation and support services;
recipient contributions to total project costs, including allied contributions from other sources; and
projects that encourage ownership, management, and other opportunities for responsibility.
Affordable Housing for All Surcharge.
When filing and recording deeds and other documents, a county auditor must assess the Affordable Housing for All (AHFA) Surcharge, a $10 fee allocated for affordable housing projects and programs.
A county may keep up to 5 percent of this surcharge to cover administrative costs. Of the remaining funds, 40 percent is transmitted to the Affordable Housing for All Account, administered by the DCTED to be used for housing and shelter for extremely low-income households. The county retains the remainder of the revenue for low-income housing programs and projects.
Homeless Housing and Assistance Surcharges.
In addition to the AHFA Surcharge, a county auditor must assess two Homeless Housing and Assistance (HHA) surcharges, of $10 and $8 respectively, for each document recorded. With the exception of administrative costs, these funds are divided between local homeless housing plans and the State Treasurer, who allocates the funds to provide housing and shelter to homeless people.
Summary of Bill:
Housing Finance Commission.
In addition to its other duties, the Commission must include a life-cycle cost analysis when evaluating proposals for funding.
The Department of Community, Trade and Economic Development and the Housing Assistance Program.
In addition to other criteria it applies when awarding Program funds, the DCTED must apply a life-cycle cost analysis to proposed housing projects and programs.
The Department must also prepare an annual report for the Legislature including a compilation of reports from the counties and information on Program funds allocated to entities other than counties. With regards to the non-county funds, the report must include:
a description of the process used to allocate funds;
a list of projects receiving funds; and
the criteria used to allocate funds.
County Auditors.
County auditors have new responsibilities regarding the AHFA Surcharge and the HHA surcharges.
Beginning July 1, 2009, a county auditor must include a life-cycle cost analysis as a criterion for awarding funds.
Beginning on September 30, 2009, a county auditor must submit an annual report describing the distribution of all unreported funds collected in previous fiscal years to the DCTED. The period covered under this requirement begins in July 2002. The report must include, but is not limited to:
a description of the process used to allocate funds;
the criteria used to allocate funds;
a list of projects receiving funds; and
the amount awarded to each project.
Appropriation: None.
Fiscal Note: Requested February 9, 2009.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.