SENATE BILL REPORT

SB 6338

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.

As of February 6, 2014

Title: An act relating to giving preferences to housing trust fund projects that involve collaboration between local school districts and housing authorities to help children of low-income families succeed in school.

Brief Description: Giving preferences to housing trust fund projects that involve collaboration between local school districts and housing authorities to help children of low-income families succeed in school.

Sponsors: Senators Dammeier, Darneille, Angel, Keiser, Honeyford and Tom.

Brief History:

Committee Activity: Financial Institutions, Housing & Insurance: 2/04/14.

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, HOUSING & INSURANCE

Staff: Alison Mendiola (786-7483)

Background: Washington State Housing Trust Fund (Housing Trust Fund).

Established at the Department of Commerce (Commerce) in 1987 and funded beginning in 1989, the Housing Trust Fund helps communities meet the housing needs of low-income and special needs populations. Ninety-three percent of households served are below 50 percent of area median income, with 71 percent below 30 percent of area median income.

Capital Budget Appropriations for Housing 2003-05 through 2013-15 Biennium.

Biennium

2003-05

2005-07

2007-09

2009-11

2011-13

2013-15

Appropriations

(millions)

$81

$121

$200

$130

$117

$51.5

Housing Assistance Program. The Housing Assistance Program, administered by Commerce, uses the Housing Trust Fund and other appropriations to finance loans and grant projects that provide housing for households with special housing needs and with incomes at or below 50 percent of the project area's median family income. At least 30 percent of funds in any cycle must benefit projects located in rural parts of the state.

Organizations eligible to receive funding include the following: local governments; local housing authorities; regional support networks; nonprofit community or neighborhood-based organizations; federally recognized Indian tribes; and regional or statewide nonprofit housing assistance organizations.

Commerce must grant as many applications as available funding allows. In awarding funds, Commerce must provide for geographic distribution statewide. Commerce must give first priority to projects that use privately owned housing purchased by a public housing authority or nonprofit public development authority. A second priority must be given to projects that use publicly owned housing. Within these priorities, Commerce must give preference to projects based on some or all of the following criteria:

Applications for projects that serve persons with mental illnesses must be consistent with a regional support network six-year capital and operating plan.

Summary of Bill: Commerce must give preference to housing trust fund project applications that involve collaborative partnerships between local school districts and public housing authorities the help children of low-income families succeed in school.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This bill is inspired by the wonderful work that is happening in Tacoma between the public housing authority and its public schools. The outcomes for homeless children have been tremendous and could help children break the cycle of poverty. Every time a homeless child changes school, the chance of that child graduating from high school drops. The partnership between McCarver Elementary School and the Tacoma Public Housing Authority has produced great results both in housing and for the children in school. There is support for the idea of expanding the language to also include nonprofit housing agencies, like Habitat for Humanity; not just public housing authorities.

Persons Testifying: PRO: Senator Dammeier, prime sponsor; Michael Power, Tacoma Housing Authority; Nick Federici, WA Low Income Housing Alliance; Connie Brown, Tacoma-Pierce County Affordable Housing Consortium.