BILL REQ. #:  S-1042.3 

READ FIRST TIME 02/17/11.   

     AN ACT Relating to the allocation of vouchers in awarding resources for low-income housing; amending RCW 36.22.178, 36.22.179, and 36.22.1791; and adding a new section to chapter 36.22 RCW.

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

Sec. 1   RCW 36.22.178 and 2007 c 427 s 1 are each amended to read as follows:
     The surcharge provided for in this section shall be named the affordable housing for all surcharge.
     (1) Except as provided in subsection (3) of this section, a surcharge of ten dollars per instrument shall be charged by the county auditor for each document recorded, which will be in addition to any other charge authorized by law. The county may retain up to five percent of these funds collected solely for the collection, administration, and local distribution of these funds. Of the remaining funds, forty percent of the revenue generated through this surcharge will be transmitted monthly to the state treasurer who will deposit the funds into the affordable housing for all account created in RCW 43.185C.190. The department of ((community, trade, and economic development)) commerce must use these funds to provide housing and shelter for extremely low-income households with incomes at or below thirty percent of the area median income, including ((but not limited to)) using a minimum of twenty-six percent of the funds for rental vouchers in locations where a majority of the dwelling units occupied by the tenants using these vouchers are privately owned units that are not operating under any program licensed by the state of Washington. The remaining funds must be used for grants for building operation and maintenance costs of housing projects or units within housing projects that are affordable to extremely low-income households with incomes at or below thirty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses.
     (2) All of the remaining funds generated by this surcharge will be retained by the county and be deposited into a fund that must be used by the county and its cities and towns for eligible housing activities as described in this subsection that serve very low-income households with incomes at or below fifty percent of the area median income. The portion of the surcharge retained by a county shall be allocated to eligible housing activities that serve extremely low and very low-income households in the county and the cities within a county according to an interlocal agreement between the county and the cities within the county consistent with countywide and local housing needs and policies. A priority must be given to eligible housing activities that serve extremely low-income households with incomes at or below thirty percent of the area median income. Eligible housing activities to be funded by these county funds are limited ((to)) as follows:
     (a) A minimum of twenty-six percent of funds received must be (i) allocated for rental vouchers for housing units that are affordable to very low-income households with incomes at or below fifty percent of the area median income, and (ii) administered by a local public housing authority or other local organization that has an existing rental assistance voucher program or the authority to offer a voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards, which provides vouchers for as long as necessary, as opposed to providing vouchers for a limited period of time, in order to provide renters with consistency and an opportunity to live where they desire. The rental vouchers must be payable to the landlord, including vouchers for first and last month's rent and security and other required deposits, except pet deposits, required of all other new tenants. The administering authority or organization must ensure that a majority of the dwelling units occupied by tenants using these vouchers are privately owned units that are not operating under any program licensed by the state of Washington;
     (b) The remaining funds may be used for:
     (i) Acquisition, construction, or rehabilitation of housing projects or units within housing projects that are affordable to very low-income households with incomes at or below fifty percent of the area median income, including units for homeownership, rental units, seasonal and permanent farm worker housing units, and single room occupancy units;
     (((b))) (ii) Supporting building operation and maintenance costs of housing projects or units within housing projects eligible to receive housing trust funds, that are affordable to very low-income households with incomes at or below fifty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses;
     (((c))) (iii) Other rental assistance vouchers for housing units that are affordable to very low-income households with incomes at or below fifty percent of the area median income, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards; and
     (((d))) (iv) Operating costs for emergency shelters and licensed overnight youth shelters.
     (3) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.

Sec. 2   RCW 36.22.179 and 2009 c 462 s 1 are each amended to read as follows:
     (1) In addition to the surcharge authorized in RCW 36.22.178, and except as provided in subsection (2) of this section, an additional surcharge of ten dollars shall be charged by the county auditor for each document recorded, which will be in addition to any other charge allowed by law. During the 2009-11 and 2011-13 biennia, the surcharge shall be thirty dollars. The funds collected pursuant to this section are to be distributed and used as follows:
     (a) The auditor shall retain two percent for collection of the fee, and of the remainder shall remit sixty percent to the county to be deposited into a fund that must be used by the county and its cities and towns to accomplish the purposes of chapter 484, Laws of 2005, (i) six percent of which may be used by the county for administrative costs related to its homeless housing plan, (ii) a minimum of twenty-six percent of which must be used for rental vouchers to provide housing for homeless people in locations where a majority of the dwelling units occupied by the tenants using these vouchers are privately owned units that are not operating under any program licensed by the state of Washington, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards, and (iii) the remainder for programs which directly accomplish the goals of the county's local homeless housing plan, except that for each city in the county which elects as authorized in RCW 43.185C.080 to operate its own local homeless housing program, a percentage of the surcharge assessed under this section equal to the percentage of the city's local portion of the real estate excise tax collected by the county shall be transmitted at least quarterly to the city treasurer, without any deduction for county administrative costs, for use by the city for program costs which directly contribute to the goals of the city's local homeless housing plan; of the funds received by the city, it may use six percent for administrative costs for its homeless housing program.
     (b) The auditor shall remit the remaining funds to the state treasurer for deposit in the home security fund account. The department may use twelve and one-half percent of this amount for administration of the program established in RCW 43.185C.020, including the costs of creating the statewide homeless housing strategic plan, measuring performance, providing technical assistance to local governments, and managing the homeless housing grant program. A minimum of twenty-six percent of the remaining eighty-seven and one-half percent is to be used by the department to((:
     (i))) provide housing and shelter for homeless people through the use of rental vouchers. The remaining moneys must be used to (i) provide housing and shelter for homeless people including, but not limited to: Grants to operate, repair, and staff shelters; grants to operate transitional housing; ((partial payments for rental assistance;)) consolidated emergency assistance; overnight youth shelters; and emergency shelter assistance((;)), and (ii) fund the homeless housing grant program.
     (2) The surcharge imposed in this section does not apply to (a) assignments or substitutions of previously recorded deeds of trust, or (b) documents recording a birth, marriage, divorce, or death or any documents otherwise exempted from a recording fee under state law.

Sec. 3   RCW 36.22.1791 and 2007 c 427 s 5 are each amended to read as follows:
     (1) In addition to the surcharges authorized in RCW 36.22.178 and 36.22.179, and except as provided in subsection (2) of this section, the county auditor shall charge an additional surcharge of eight dollars for each document recorded, which is in addition to any other charge allowed by law. The funds collected under this section are to be distributed and used as follows:
     (a) The auditor shall remit ninety percent to the county to be deposited into a fund, (i) six percent of which may be used by the county for administrative costs related to its homeless housing plan, (ii) a minimum of twenty-six percent of which must be used for rental vouchers to provide housing for homeless people in locations where a majority of the dwelling units occupied by the tenants using these vouchers are privately owned units that are not operating under any program licensed by the state of Washington, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards, and (iii) the remainder for programs that directly accomplish the goals of the county's local homeless housing plan, except that for each city in the county that elects, as authorized in RCW 43.185C.080, to operate its own local homeless housing program, a percentage of the surcharge assessed under this section equal to the percentage of the city's local portion of the real estate excise tax collected by the county must be transmitted at least quarterly to the city treasurer for use by the city for program costs that directly contribute to the goals of the city's local homeless housing plan.
     (b) The auditor shall remit the remaining funds to the state treasurer for deposit in the home security fund account. The department ((may use the funds)) must use a minimum of twenty-six percent of the funds for rental vouchers to provide housing for homeless people, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards, and the remaining funds must be used:
     (i) For administering the program established in RCW 43.185C.020, including the costs of creating and updating the statewide homeless housing strategic plan, measuring performance, providing technical assistance to local governments, and managing the homeless housing grant program((. Remaining funds may also be used to:
     (i)));
     (ii) To provide housing and shelter for homeless people including, but not limited to: Grants to operate, repair, and staff shelters; grants to operate transitional housing; ((partial payments for rental assistance;)) consolidated emergency assistance; overnight youth shelters; and emergency shelter assistance; and
     (((ii))) (iii) To fund the homeless housing grant program.
     (2) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.

NEW SECTION.  Sec. 4   A new section is added to chapter 36.22 RCW to read as follows:
     In calculating the rental voucher payment amount under RCW 36.22.178, 36.22.179, and 36.22.1791, the department of commerce, local public housing authorities, and other local organizations administering the rental voucher program must use the method specified by the United States department of housing and urban development in 24 C.F.R. Part 982 on the effective date of this section, or a subsequent date as may be provided by the United States department of housing and urban development by rule, consistent with the purposes of this section.