BILL REQ. #: Z-0142.4
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/31/11. Referred to Committee on Community Development & Housing.
AN ACT Relating to housing trust fund administrative costs; amending RCW 43.185.020, 43.185.050, 43.185A.010, and 43.185A.050; and reenacting and amending RCW 43.185.070 and 43.185A.030.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.185.020 and 2009 c 565 s 37 are each amended to
read as follows:
(1) "Contracted amount of state investment in the housing
assistance program" or "contracted amount" means the aggregate amount
of all state funds for which the department has monitoring and
compliance responsibility.
(2) "Department" means the department of commerce.
(3) "Director" means the director of the department of commerce.
Sec. 2 RCW 43.185.050 and 2006 c 371 s 236 are each amended to
read as follows:
(1) The department ((shall)) must use moneys from the housing trust
fund and other legislative appropriations to finance in whole or in
part any loans or grant projects that will provide housing for persons
and families with special housing needs and with incomes at or below
fifty percent of the median family income for the county or standard
metropolitan statistical area where the project is located. At least
thirty percent of these moneys used in any given funding cycle shall be
for the benefit of projects located in rural areas of the state as
defined by the department. If the department determines that it has
not received an adequate number of suitable applications for rural
projects during any given funding cycle, the department may allocate
unused moneys for projects in nonrural areas of the state.
(2) Activities eligible for assistance from the housing trust fund
and other legislative appropriations include, but are not limited to:
(a) New construction, rehabilitation, or acquisition of low and
very low-income housing units;
(b) Rent subsidies;
(c) Matching funds for social services directly related to
providing housing for special-need tenants in assisted projects;
(d) Technical assistance, design and finance services and
consultation, and administrative costs for eligible nonprofit community
or neighborhood-based organizations;
(e) Administrative costs for housing assistance groups or
organizations when such grant or loan will substantially increase the
recipient's access to housing funds other than those available under
this chapter;
(f) Shelters and related services for the homeless, including
emergency shelters and overnight youth shelters;
(g) Mortgage subsidies, including temporary rental and mortgage
payment subsidies to prevent homelessness;
(h) Mortgage insurance guarantee or payments for eligible projects;
(i) Down payment or closing cost assistance for eligible first-time
home buyers;
(j) Acquisition of housing units for the purpose of preservation as
low-income or very low-income housing;
(k) Projects making housing more accessible to families with
members who have disabilities; and
(l) During the 2005-2007 fiscal biennium, a manufactured/mobile
home landlord-tenant ombudsman conflict resolution and park
registration program.
(3) During the 2005-2007 fiscal biennium, revenues generated under
RCW 36.22.178 may be used for the development of affordable housing
projects and other activities funded in section 108, chapter 371, Laws
of 2006.
(4) Legislative appropriations from capital bond proceeds may be
used only for the costs of projects authorized under subsection (2)(a),
(i), and (j) of this section, and not for the administrative costs of
the department.
(5) Moneys from repayment of loans from appropriations from capital
bond proceeds may be used for all activities necessary for the proper
functioning of the housing assistance program except for activities
authorized under subsection (2)(b) and (c) of this section.
(6) Administrative costs associated with application, distribution,
and project development activities of the department ((shall)) may not
exceed ((five)) three percent of the annual funds available for the
housing assistance program.
(7) Administrative costs associated with compliance and monitoring
activities of the department may not exceed one-quarter of one percent
annually of the contracted amount of state investment in the housing
assistance program.
Sec. 3 RCW 43.185.070 and 2005 c 219 s 2 and 2005 c 518 s 1802
are each reenacted and amended to read as follows:
(1) During each calendar year in which funds from the housing trust
fund or other legislative appropriations are available for use by the
department for the housing assistance program, the department ((shall))
must announce to all known interested parties, and through major media
throughout the state, a grant and loan application period of at least
ninety days' duration. This announcement ((shall)) must be made as
often as the director deems appropriate for proper utilization of
resources. The department ((shall)) must then promptly grant as many
applications as will utilize available funds less appropriate
administrative costs of the department as provided in RCW 43.185.050.
((Administrative costs paid out of the housing trust fund may not
exceed five percent of annual revenues available for distribution to
housing trust fund projects.)) In awarding funds under this chapter,
the department ((shall)) must provide for a geographic distribution on
a statewide basis.
(2) The department ((shall)) must give first priority to
applications for projects and activities which utilize existing
privately owned housing stock including privately owned housing stock
purchased by nonprofit public development authorities and public
housing authorities as created in chapter 35.82 RCW. As used in this
subsection, privately owned housing stock includes housing that is
acquired by a federal agency through a default on the mortgage by the
private owner. Such projects and activities ((shall)) must be
evaluated under subsection (3) of this section. Second priority
((shall be)) is given to activities and projects which utilize existing
publicly owned housing stock. All projects and activities ((shall))
must be evaluated by some or all of the criteria under subsection (3)
of this section, and similar projects and activities shall be evaluated
under the same criteria.
(3) The department ((shall)) must give preference for applications
based on some or all of the criteria under this subsection, and similar
projects and activities ((shall)) must be evaluated under the same
criteria:
(a) The degree of leveraging of other funds that will occur;
(b) The degree of commitment from programs to provide necessary
habilitation and support services for projects focusing on special
needs populations;
(c) 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) Local government project contributions in the form of
infrastructure improvements, and others;
(e) Projects that encourage ownership, management, and other
project-related responsibility opportunities;
(f) Projects that demonstrate a strong probability of serving the
original target group or income level for a period of at least twenty-five years;
(g) The applicant has the demonstrated ability, stability and
resources to implement the project;
(h) Projects which demonstrate serving the greatest need;
(i) Projects that provide housing for persons and families with the
lowest incomes;
(j) Projects serving special needs populations which are under
statutory mandate to develop community housing;
(k) Project location and access to employment centers in the region
or area;
(l) Projects that provide employment and training opportunities for
disadvantaged youth under a youthbuild or youthbuild-type program as
defined in RCW 50.72.020; and
(m) Project location and access to available public transportation
services.
(4) The department ((shall)) may only approve applications for
projects for ((mentally ill persons)) individuals with mental illness
that are consistent with a regional support network six-year capital
and operating plan.
Sec. 4 RCW 43.185A.010 and 2009 c 565 s 38 are each amended to
read as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Affordable housing" means residential housing for rental
occupancy which, as long as the same is occupied by low-income
households, requires payment of monthly housing costs, including
utilities other than telephone, of no more than thirty percent of the
family's income. The department ((shall)) must adopt policies for
residential homeownership housing, occupied by low-income households,
which specify the percentage of family income that may be spent on
monthly housing costs, including utilities other than telephone, to
qualify as affordable housing.
(2) "Contracted amount of state investment in the housing
assistance program" or "contracted amount" has the same meaning as
provided in RCW 43.185.020.
(3) "Department" means the department of commerce.
(((3))) (4) "Director" means the director of the department of
commerce.
(((4))) (5) "First-time home buyer" means an individual or his or
her spouse or domestic partner who have not owned a home during the
three-year period prior to purchase of a home.
(((5))) (6) "Low-income household" means a single person, family or
unrelated persons living together whose adjusted income is less than
eighty percent of the median family income, adjusted for household
size, for the county where the project is located.
Sec. 5 RCW 43.185A.030 and 2005 c 219 s 3 and 2005 c 518 s 1803
are each reenacted and amended to read as follows:
(1) Using moneys specifically appropriated for such purpose, the
department shall finance in whole or in part projects that will provide
housing for low-income households.
(2) Activities eligible for assistance include, but are not limited
to:
(a) New construction, rehabilitation, or acquisition of housing for
low-income households;
(b) Rent subsidies in new construction or rehabilitated multifamily
units;
(c) Down payment or closing costs assistance for first-time home
buyers;
(d) Mortgage subsidies for new construction or rehabilitation of
eligible multifamily units; and
(e) Mortgage insurance guarantee or payments for eligible projects.
(3) Legislative appropriations from capital bond proceeds may be
used only for the costs of projects authorized under subsection (2)
(a), (c), (d), and (e) of this section, and not for the administrative
costs of the department.
(4) Moneys from repayment of loans from appropriations from capital
bond proceeds may be used for all activities necessary for the proper
functioning of the affordable housing program except for activities
authorized under subsection (2)(b) of this section.
(5) Administrative costs associated with application, distribution,
and project development activities of the department ((shall)) may not
exceed ((five)) three percent of the annual funds available for the
affordable housing program.
(6) Administrative costs associated with compliance and monitoring
activities of the department may not exceed one-quarter of one percent
annually of the contracted amount of state investment in the affordable
housing program.
Sec. 6 RCW 43.185A.050 and 1991 c 356 s 14 are each amended to
read as follows:
(1) During each calendar year in which funds are available for use
by the department for the affordable housing program, the department
((shall)) must announce to all known interested parties, and through
major media throughout the state, a grant and loan application period
of at least ninety days' duration. This announcement ((shall)) must be
made as often as the director deems appropriate for proper utilization
of resources. The department ((shall)) must then promptly grant as
many applications as will utilize available funds less appropriate
administrative costs of the department((, not to exceed five percent of
moneys appropriated to the affordable housing program)) as provided in
RCW 43.185A.030.
(2) The department ((shall)) must develop, with advice and input
from the ((low-income assistance advisory committee established in RCW
43.185.110)) affordable housing advisory board, criteria to evaluate
applications for assistance under this chapter.