BILL REQ. #:  S-1099.2 

READ FIRST TIME 02/10/11.   

     AN ACT Relating to the use of surplus property for the development of affordable housing; and amending RCW 43.63A.510, 43.20A.037, 72.09.055, 43.19.19201, 79A.05.170, 79A.05.175, 36.34.137, 35.21.687, 79.11.005, 57.08.016, and 81.112.080.

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

Sec. 1   RCW 43.63A.510 and 1993 c 461 s 2 are each amended to read as follows:
     (1) The department ((shall)) may work with ((the departments of natural resources, transportation, social and health services, corrections, and general administration)) state and local governmental entities to identify and catalog surplus or underutilized((, state-owned land and property)) real property owned by these governmental entities suitable for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households. The state and local governmental entities subject to the requirements of this section are the departments of natural resources, ((transportation,)) social and health services, corrections, ((and)) general administration ((shall provide)), public lands except for state forest lands, the state parks and recreation commission, counties, cities, towns, regional transit agencies, and water-sewer districts. These governmental entities must maintain an inventory of surplus or underutilized real property that is owned or administered by each ((agency)) governmental entity and is available for lease or sale. ((The inventories shall be provided to the department by November 1, 1993, with inventory revisions provided each November 1 thereafter.)) Each inventory must contain descriptive information about each property that includes, if known, the contact information for the property and the location, approximate size, sale or lease price and terms, and current zoning classification of the property. Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing. Counties with a population of less than one hundred thousand and cities and towns with a population of less than ten thousand are not required to maintain an inventory as required under this section.
     (2) ((Upon written request, the department shall provide a copy of the inventory of state-owned and publicly owned lands and buildings to parties interested in developing the sites for affordable housing.
     (3))) Surplus property for sale by the governmental entities subject to the requirements of this section, and which is suitable for the development of affordable housing, must be offered for at least the first one hundred eighty days after its availability for sale exclusively to eligible organizations, for the purpose of developing affordable housing.
     (3) Eligible organizations have the right to obtain these surplus properties through purchase, lease, exchange, or donation, under reasonable option and conveyance conditions, in return for a recorded covenant to provide affordable housing for at least forty years or a loan note in the name of a governmental entity for homeownership programs.
     (4) A governmental entity that sells real property to an eligible organization under this section may do so at a price that is less than fair market value, provided that the housing developed on the property is occupied primarily by individuals or households who are extremely low-income, very low-income, or low-income.
     (5) Governmental entities subject to this section have the sole authority to determine: (a) Whether or not property is surplus; (b) whether or not the property is suitable for the development of affordable housing; and (c) what constitutes reasonable option and conveyance conditions for the purchase, lease, exchange, or donation of the property.
     (6) Each governmental entity subject to the requirements of this section must develop the criteria and procedures necessary for inventorying surplus property and offering it for sale, lease, exchange, or donation for affordable housing. Each governmental entity must (a) enter into a recorded covenant with the purchaser of the surplus property or a loan note in the name of the jurisdiction, to ensure that the property will meet the required income restrictions, and (b) monitor compliance with the covenant or loan note.
     (7) As used in this section:
     (a) "Affordable housing" means residential housing that is rented or ((owned by)) sold to a person who qualifies as ((a)) an extremely low-income, very low-income, low-income, or moderate-income household or who is from a special needs population((, and whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income)).
     (b) "Very low-income household" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the county area median income((, adjusted for household size,)) for the county where the affordable housing is located, adjusted for household size.
     (c) "Low-income household" means a single person, family, or unrelated persons living together whose income is more than fifty percent but is at or below eighty percent of the county area median income where the affordable housing is located, adjusted for household size.
     (d) "Moderate-income household" means a single person, family, or unrelated persons living together whose income is more than eighty percent but is at or below one hundred fifteen percent of the county area median income where the affordable housing is located, adjusted for household size.
     (e) "Eligible organization" means any city, town, or county government, local housing authority, public development authority, community renewal agency, regional support network established under chapter 71.24 RCW, nonprofit community or neighborhood-based organization, federally recognized Indian tribe in the state of Washington, or regional or statewide nonprofit housing assistance organization, including such entities materially participating as a general partner or managing members of a partnership, limited liability company, or equivalent organization.
     (f) "Extremely low-income household" means a single person, family, or unrelated persons living together whose income is at or below thirty percent of the county area median income where the affordable housing is located, adjusted for household size.
     (g) "Primarily" means fifty-one percent or more.
     (h) "Real property" means land, buildings, or buildings and land.
     (8) In addition to the requirements of this section, counties, cities, and towns may sell surplus property at a discount for affordable housing that may be part of mixed-income or mixed-use developments, provided that the affordable housing complies with the guidelines for amounts of affordable housing, income levels, affordable rents, affordable sales prices, and minimum terms of affordability under RCW 36.70A.540 for affordable housing incentive programs.

Sec. 2   RCW 43.20A.037 and 1995 c 399 s 65 are each amended to read as follows:
     (1) In accordance with RCW 43.63A.510, the department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory ((shall)) must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. ((The department shall provide a copy of the inventory to the department of community, trade, and economic development by November 1, 1993, and every November 1 thereafter.
     (2) By November 1 of each year, beginning in 1994, the department shall purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. As used in this section, "real property" means buildings, land, or buildings and land.)) Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.
     (2) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized property, the department shall give priority to selling the property to an eligible organization as defined in RCW 43.63A.510 for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. The department may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510.

Sec. 3   RCW 72.09.055 and 1995 c 399 s 202 are each amended to read as follows:
     (1) In accordance with RCW 43.63A.510, the department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory ((shall)) must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. ((The department shall provide a copy of the inventory to the department of community, trade, and economic development by November 1, 1993, and every November 1 thereafter.
     (2) By November 1 of each year, beginning in 1994, the department shall purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. As used in this section, "real property" means buildings, land, or buildings and land.)) Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.
     (2) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized property, the department shall give priority to selling the property to an eligible organization as defined in RCW 43.63A.510 for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. The department may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510.

Sec. 4   RCW 43.19.19201 and 1995 c 399 s 64 are each amended to read as follows:
     (1) In accordance with RCW 43.63A.510, the department of general administration shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory ((shall)) must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. ((The department of general administration shall provide a copy of the inventory to the department of community, trade, and economic development by November 1, 1993, and every November 1 thereafter.
     (2) By November 1 of each year, beginning in 1994, the department of general administration shall purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. As used in this section, "real property" means buildings, land, or buildings and land.)) Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.
     (2) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized property, the department shall give priority to selling the property to an eligible organization as defined in RCW 43.63A.510 for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. The department may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510.

Sec. 5   RCW 79A.05.170 and 1991 sp.s. c 13 s 23 are each amended to read as follows:
     (1) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized real property, the commission shall give priority to selling the property to an eligible organization as defined in RCW 43.63A.510 for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. The commission may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510.
     (2) Except for those lands subject to RCW 43.63A.510, any lands owned by the ((state parks and recreation)) commission, which are determined to be surplus to the needs of the state for development for state park purposes and which the commission proposes to deed to a local government or other entity, shall be accompanied by a clause requiring that if the land is not used for outdoor recreation purposes, ownership of the land shall revert to the ((state parks and recreation)) commission.
     (((2) The state parks and recreation commission,)) (a) In cases where land subject to such a reversionary clause is proposed for use or disposal for purposes other than recreation, the commission shall require that, if the land is surplus to the needs of the commission for park purposes at the time the commission becomes aware of its proposed use for nonrecreation purposes, the holder of the land or property shall reimburse the commission for the release of the reversionary interest in the land. The reimbursement shall be in the amount of the fair market value of the reversionary interest as determined by a qualified appraiser agreeable to the commission. Appraisal costs shall be borne by the local entity which holds title to the land.
     (((3))) (b) Any funds generated under a reimbursement under this section shall be deposited in the parkland acquisition account which is hereby created in the state treasury. Moneys in this account are to be used solely for the purchase or acquisition of property for use as state park property by the commission, as directed by the legislature; all such funds shall be subject to legislative appropriation.
     (3) In accordance with RCW 43.63A.510, the commission shall identify and catalog real property that is no longer required for commission purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.

Sec. 6   RCW 79A.05.175 and 2007 c 145 s 1 are each amended to read as follows:
     Except for those lands subject to RCW 43.63A.510 and 79A.05.170(1), whenever the commission finds that any land under its control cannot advantageously be used for park purposes, it is authorized to dispose of such land by the method provided in this section or by the method provided in RCW 79A.05.170. If such lands are school or other grant lands, control thereof shall be relinquished by resolution of the commission to the proper state officials. If such lands were acquired under restrictive conveyances by which the state may hold them only so long as they are used for park purposes, they may be returned to the donor or grantors by the commission. All other such lands may be either sold by the commission to the highest bidder or exchanged for other lands of equal value by the commission, and all conveyance documents shall be executed by the governor. All such exchanges shall be accompanied by a transfer fee, to be set by the commission and paid by the other party to the transfer; such fee shall be paid into the parkland acquisition account established under RCW 79A.05.170. The commission may accept sealed bids, electronic bids, or oral bids at auction. Bids on all sales shall be solicited at least twenty days in advance of the sale date by an advertisement appearing at least once a week for two consecutive weeks in a newspaper of general circulation in the county in which the land to be sold is located. If the commission feels that no bid received adequately reflects the fair value of the land to be sold, it may reject all bids, and may call for new bids. All proceeds derived from the sale of such park property shall be paid into the park land acquisition account. All land considered for exchange shall be evaluated by the commission to determine its adaptability to park usage. The equal value of all lands exchanged shall first be determined by the appraisals to the satisfaction of the commission. No sale or exchange of state park lands shall be made without the unanimous consent of the commission.

Sec. 7   RCW 36.34.137 and 1993 c 461 s 5 are each amended to read as follows:
     (1) In accordance with RCW 43.63A.510, every county shall identify and catalog real property owned by the county that is no longer required for its purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory ((shall)) must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. ((Every county shall provide a copy of the inventory to the department of community development by November 1, 1993, with inventory revisions each November 1 thereafter.
     (2) By November 1 of each year, beginning in 1994, every county shall purge the inventory of real property of sites that are no longer available for the development of affordable housing. The inventory revision shall include an updated listing of real property that has become available since the last update. As used in this section, "real property" means buildings, land, or buildings and land.)) Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.
     (2) In addition to the requirements of this section, counties may sell surplus property at a discount for affordable housing that may be part of mixed-income or mixed-use developments, provided that the affordable housing complies with the guidelines for amounts of affordable housing, income levels, affordable rents, affordable sales prices, and minimum terms of affordability under RCW 36.70A.540 for affordable housing incentive programs.

Sec. 8   RCW 35.21.687 and 1995 c 399 s 37 are each amended to read as follows:
     (1) In accordance with RCW 43.63A.510, every city and town, including every code city operating under Title 35A RCW, shall identify and catalog real property owned by the city or town that is no longer required for its purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory ((shall)) must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. ((Every city and town shall provide a copy of the inventory to the department of community, trade, and economic development by November 1, 1993, with inventory revisions each November 1 thereafter.
     (2) By November 1 of each year, beginning in 1994, every city and town, including every code city operating under Title 35A RCW, shall purge the inventory of real property of sites that are no longer available for the development of affordable housing. The inventory revision shall also contain a list of real property that has become available since the last update. As used in this section, "real property" means buildings, land, or buildings and land.)) Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.
     (2) In addition to the requirements of this section, cities and towns may sell surplus property at a discount for affordable housing that may be part of mixed-income or mixed-use developments, provided that the affordable housing complies with the guidelines for amounts of affordable housing, income levels, affordable rents, affordable sales prices, and minimum terms of affordability under RCW 36.70A.540 for affordable housing incentive programs.

Sec. 9   RCW 79.11.005 and 2003 c 334 s 201 are each amended to read as follows:
     (1) Subject to RCW 43.63A.510, the department is authorized to sell any real property not designated or acquired as state forest lands, but acquired by the state, either in the name of the forest board, the forestry board, or the division of forestry, for administrative sites, lien foreclosures, or other purposes whenever it shall determine that the lands are no longer or not necessary for public use.
     (2) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized real property, the department shall give priority to selling the property to an eligible organization as defined in RCW 43.63A.510 for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. The department may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510.
     (3) Except as otherwise provided under RCW 43.63A.510, the sale may be made after public notice to the highest bidder for such a price as approved by the governor, but not less than the fair market value of the real property, plus the value of improvements thereon. Any instruments necessary to convey title must be executed by the governor in a form approved by the attorney general.
     (((3))) (4) All amounts received from the sale must be credited to the fund of the department of government that is responsible for the acquisition and maintenance of the property sold.
     (5) In accordance with RCW 43.63A.510, the department shall identify and catalog real property owned by the state that is no longer required for its purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.

Sec. 10   RCW 57.08.016 and 1999 c 153 s 5 are each amended to read as follows:
     (1) There shall be no private sale of real property where the appraised value exceeds the sum of two thousand five hundred dollars. Subject to the provisions of subsection (2) of this section, no real property of the district shall be sold for less than ninety percent of the value thereof as established by a written appraisal made not more than six months prior to the date of sale by three disinterested real estate brokers licensed under the laws of the state or professionally designated real estate appraisers as defined in RCW 74.46.020. The appraisal shall be signed by the appraisers and filed with the secretary of the board of commissioners of the district, who shall keep it at the office of the district open to public inspection. Any notice of intention to sell real property of the district shall recite the appraised value thereof.
     (2) Subject to RCW 43.63A.510, if no purchasers can be obtained for the property at ninety percent or more of its appraised value after one hundred twenty days of offering the property for sale, the board of commissioners of the district may adopt a resolution stating that the district has been unable to sell the property at the ninety percent amount. The district then may sell the property at the highest price it can obtain at public auction. A notice of intention to sell at public auction shall be published once a week for two consecutive weeks in a newspaper of general circulation in the district. The notice shall describe the property, state the time and place at which it will be offered for sale and the terms of sale, and shall call for bids, fix the conditions thereof, and reserve the right to reject any and all bids for good cause.
     (3) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized property, a district shall give priority to selling the property to an eligible organization for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. A district may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510.
     (4) A district shall identify and catalog real property that is no longer required for district purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing.

Sec. 11   RCW 81.112.080 and 1992 c 101 s 8 are each amended to read as follows:
     An authority shall have the following powers in addition to the general powers granted by this chapter:
     (1) To carry out the planning processes set forth in RCW 81.104.100;
     (2) To acquire by purchase, condemnation, gift, or grant and to lease, construct, add to, improve, replace, repair, maintain, operate, and regulate the use of high capacity transportation facilities and properties within authority boundaries including surface, underground, or overhead railways, tramways, busways, buses, bus sets, entrained and linked buses, ferries, or other means of local transportation except taxis, and including escalators, moving sidewalks, personal rapid transit systems or other people-moving systems, passenger terminal and parking facilities and properties, and such other facilities and properties as may be necessary for passenger, vehicular, and vessel access to and from such people-moving systems, terminal and parking facilities and properties, together with all lands, rights-of-way, property, equipment, and accessories necessary for such high capacity transportation systems. When developing specifications for high capacity transportation system operating equipment, an authority shall take into account efforts to establish or sustain a domestic manufacturing capacity for such equipment. The right of eminent domain shall be exercised by an authority in the same manner and by the same procedure as or may be provided by law for cities of the first class, except insofar as such laws may be inconsistent with the provisions of this chapter. Public transportation facilities and properties which are owned by any city, county, county transportation authority, public transportation benefit area, or metropolitan municipal corporation may be acquired or used by an authority only with the consent of the agency owning such facilities. Such agencies are hereby authorized to convey or lease such facilities to an authority or to contract for their joint use on such terms as may be fixed by agreement between the agency and the authority.
     The facilities and properties of an authority whose vehicles will operate primarily within the rights-of-way of public streets, roads, or highways, may be acquired, developed, and operated without the corridor and design hearings that are required by RCW 35.58.273 for mass transit facilities operating on a separate right-of-way;
     (3) To dispose of any real or personal property acquired in connection with any authority function and that is no longer required for the purposes of the authority, in the same manner as provided for cities of the first class. When an authority determines that a facility or any part thereof that has been acquired from any public agency without compensation is no longer required for authority purposes, but is required by the agency from which it was acquired, the authority shall by resolution transfer it to such agency;
     (4) In selling, leasing, transferring, or otherwise disposing of surplus or underutilized property, to give priority to selling the property to an eligible organization for the development of affordable housing for extremely low-income, very low-income, low-income, or moderate-income households, consistent with RCW 43.63A.510. An authority may sell, lease, or exchange the property for less than fair market value if the affordable housing to be developed on the property is to be occupied primarily by extremely low-income, very low-income, or low-income households as provided in RCW 43.63A.510;
     (5) To identify and catalog real property that is no longer required for authority purposes and is suitable for the development of affordable housing for extremely low-income, very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510. The inventory must include the location, approximate size, sale or lease price and terms, and current zoning classification of the property. Each inventory must be updated at least once a year, and printed and electronic copies of each inventory must be provided upon request. Each annual inventory must also include any surplus properties that have been sold for affordable housing;
     (6) To fix rates, tolls, fares, and charges for the use of such facilities and to establish various routes and classes of service. Fares or charges may be adjusted or eliminated for any distinguishable class of users.