AN ACT Relating to supporting the development of affordable housing in urban areas; amending RCW 43.63A.510, 28A.335.120, 28A.335.130, 43.19.19201, 43.20A.035, 47.12.063, 47.12.064, 53.08.090, 53.08.091, 72.09.055, 79.11.005, 79A.05.170, 79A.05.175, and 81.112.080; adding a new section to chapter 35.21 RCW; adding a new section to chapter 36.34 RCW; adding new sections to chapter 43.185 RCW; adding a new section to chapter 28A.335 RCW; and repealing RCW 43.20A.037.

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

NEW SECTION.  Sec. 1.  A new section is added to chapter 35.21 RCW to read as follows:

Every city that owns real property within an urban development area, as provided in RCW 43.63A.510, must provide an annual inventory to the department of commerce of all such property and must comply with the provisions of that section regarding the sale or transfer of such property.

NEW SECTION.  Sec. 2.  A new section is added to chapter 36.34 RCW to read as follows:

Every county that owns real property within an urban development area, as provided in RCW 43.63A.510, must provide an annual inventory to the department of commerce of all such property and must comply with the provisions of that section regarding the sale or transfer of such property.

Sec. 3.  RCW 43.63A.510 and 1993 c 461 s 2 are each amended to read as follows:

(1) ((The department shall work with the departments of natural resources, transportation, social and health services, corrections, and general administration to identify and catalog under-utilized, state-owned land and property suitable for the development of affordable housing for very low-income, low-income or moderate-income households. The departments of natural resources, transportation, social and health services, corrections, and general administration shall provide an inventory of real property that is owned or administered by each agency 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.

(3))) Each governmental entity, as defined in this section, must identify and catalog all of its publicly owned real property within any urban development area. The inventories must be provided to the department by November 1st each year.

(9) As used in this section:

(a) "Affordable housing" means residential housing that is rented or owned by a person who qualifies as a very low-income household, low-income household, 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))) (i) "Very low-income household" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the median income, adjusted for household size, for the county where the affordable housing is located.

(((c))) (ii) "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 median income where the affordable housing is located.

(((d))) (iii) "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 median income where the affordable housing is located.

NEW SECTION.  Sec. 4.  A new section is added to chapter 43.185 RCW to read as follows:

The affordable housing land bank is created within the department and managed in accordance with the purposes, goals, and objectives of the housing policy act under chapter 43.185B RCW. The land bank may receive any publicly owned real property, including property transferred pursuant to RCW 43.63A.510. The department may use the property in the affordable housing land bank only for purposes authorized in section 5 of this act, and subject to any restrictions of that section.

NEW SECTION.  Sec. 5.  A new section is added to chapter 43.185 RCW to read as follows:

(1) Any real property in the affordable housing land bank may be leased to any eligible organization for the purposes of the construction or operation of any housing project or development that dedicates at least eighty percent of its units to provide affordable housing. Any lease agreement may last up to forty years, and may provide for the transfer of any improvements to the property to an eligible organization at the end of the lease agreement.

(2) As used in this section:

(a) "Affordable housing" has the same meaning as in RCW 43.63A.510.

(b) "Eligible organization" has the same meaning as in RCW 43.185.060.

NEW SECTION.  Sec. 6.  A new section is added to chapter 28A.335 RCW to read as follows:

Each school district that owns any real property owned within an urban development area must provide an annual inventory to the department of commerce, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

Sec. 7.  RCW 28A.335.120 and 2006 c 263 s 913 are each amended to read as follows:

(1) Except as provided in RCW 43.63A.510, the board of directors of any school district of this state may:

(a) Sell for cash, at public or private sale, and convey by deed all interest of the district in or to any of the real property of the district which is no longer required for school purposes; and

(b) Purchase real property for the purpose of locating thereon and affixing thereto any house or houses and appurtenant buildings removed from school sites owned by the district and sell for cash, at public or private sale, and convey by deed all interest of the district in or to such acquired and improved real property.

(2) When the board of directors of any school district proposes a sale of school district real property pursuant to this section and the value of the property exceeds seventy thousand dollars, the board shall publish a notice of its intention to sell the property. The notice shall be published at least once each week during two consecutive weeks in a legal newspaper with a general circulation in the area in which the school district is located. The notice shall describe the property to be sold and designate the place where and the day and hour when a hearing will be held. The board shall hold a public hearing upon the proposal to dispose of the school district property at the place and the day and hour fixed in the notice and admit evidence offered for and against the propriety and advisability of the proposed sale.

(3) The board of directors of any school district desiring to sell surplus real property shall publish a notice in a newspaper of general circulation in the school district. School districts shall not sell the property for at least forty-five days following the publication of the newspaper notice.

(4) Private schools shall have the same rights as any other person or entity to submit bids for the purchase of surplus real property and to have such bids considered along with all other bids.

(5) Any sale of school district real property authorized pursuant to this section shall be preceded by a market value appraisal by a professionally designated real estate appraiser as defined in RCW 74.46.020 or a general real estate appraiser certified under chapter 18.140 RCW selected by the board of directors and no sale shall take place if the sale price would be less than ninety percent of the appraisal made by the real estate appraiser: PROVIDED, That if the property has been on the market for one year or more the property may be reappraised and sold for not less than seventy-five percent of the reappraised value with the unanimous consent of the board.

(6) If in the judgment of the board of directors of any district the sale of real property of the district not needed for school purposes would be facilitated and greater value realized through use of the services of licensed real estate brokers, a contract for such services may be negotiated and concluded: PROVIDED, That the use of a licensed real estate broker will not eliminate the obligation of the board of directors to provide the notice described in this section: PROVIDED FURTHER, That the fee or commissions charged for any broker services shall not exceed seven percent of the resulting sale value for a single parcel: PROVIDED FURTHER, That any professionally designated real estate appraiser as defined in RCW 74.46.020 or a general real estate appraiser certified under chapter 18.140 RCW selected by the board to appraise the market value of a parcel of property to be sold may not be a party to any contract with the school district to sell such parcel of property for a period of three years after the appraisal.

(7) If in the judgment of the board of directors of any district the sale of real property of the district not needed for school purposes would be facilitated and greater value realized through sale on contract terms, a real estate sales contract may be executed between the district and buyer.

Sec. 8.  RCW 28A.335.130 and 2004 c 6 s 2 are each amended to read as follows:

Except as provided in RCW 28A.335.240(1) and 43.63A.510, the proceeds from any sale of school district real property by a board of directors shall be deposited to the debt service fund and/or the capital projects fund, except for amounts required to be expended for the costs associated with the sale of such property, which moneys may be deposited into the fund from which the expenditure was incurred.

Sec. 9.  RCW 43.19.19201 and 2011 1st sp.s. c 43 s 218 are each amended to read as follows:

(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.)) The department must provide an annual inventory to the department of commerce of all real property owned within an urban development area, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

Sec. 10.  RCW 43.20A.035 and 1991 c 204 s 2 are each amended to read as follows:

The department shall conduct an inventory of real properties as provided in RCW ((79.01.006)) 43.63A.510 and 79.02.400. The department must comply with the provisions of RCW 43.63A.510 regarding the sale or transfer of real property within an urban development area.

Sec. 11.  RCW 47.12.063 and 2015 3rd sp.s. c 13 s 2 are each amended to read as follows:

(1) It is the intent of the legislature to continue the department's policy giving priority consideration to abutting property owners in agricultural areas when disposing of property through its surplus property program under this section.

(2) Whenever the department determines that any real property owned by the state of Washington and under the jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so, the department may sell the property or exchange it in full or part consideration for land or building improvements or for construction of highway improvements at fair market value to any person through the solicitation of written bids through public advertising in the manner prescribed under RCW 47.28.050 or in the manner prescribed under RCW 47.12.283.

(3) The department may forego the processes prescribed by RCW 47.28.050 and 47.12.283 and sell the real property to any of the following entities or persons at fair market value:

(a) Any other state agency;

(b) The city or county in which the property is situated;

(c) Any other municipal corporation;

(d) Regional transit authorities created under chapter 81.112 RCW;

(e) The former owner of the property from whom the state acquired title;

(f) In the case of residentially improved property, a tenant of the department who has resided thereon for not less than six months and who is not delinquent in paying rent to the state;

(g) Any abutting private owner but only after each other abutting private owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in RCW 47.12.283;

(h) To any other owner of real property required for transportation purposes;

(i) In the case of property suitable for residential use, any nonprofit organization dedicated to providing affordable housing to very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510 and is eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW; or

(j) A federally recognized Indian tribe within whose reservation boundary the property is located.

(4) When selling real property pursuant to RCW 47.12.283, the department may withhold or withdraw the property from an auction when requested by one of the entities or persons listed in subsection (3) of this section and only after the receipt of a nonrefundable deposit equal to ten percent of the fair market value of the real property or five thousand dollars, whichever is less. This subsection does not prohibit the department from exercising its discretion to withhold or withdraw the real property from an auction if the department determines that the property is no longer surplus or chooses to sell the property through one of the other means listed in subsection (2) of this section. If a transaction under this subsection is not completed within sixty days, the real property must be put back up for sale.

(5) Sales to purchasers may, at the department's option, be for cash, by real estate contract, or exchange of land or highway improvements. Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW and Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.

(6) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.

(7) Unless otherwise provided, all moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund. The sale or transfer of any real property pursuant to this section that is located within an urban development area, as provided in RCW 43.63A.510, is subject to the provisions of that section.

(8) The department may not enter into equal value exchanges or property acquisitions for building improvements without first consulting with the office of financial management and the joint transportation committee.

Sec. 12.  RCW 47.12.064 and 1995 c 399 s 121 are each amended to read as follows:

(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.)) The department must provide an annual inventory to the department of commerce of all real property owned within an urban development area, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

Sec. 13.  RCW 53.08.090 and 1994 c 26 s 1 are each amended to read as follows:

(1) Each port commission must provide an annual inventory to the department of commerce of all real property owned within an urban development area, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

(2) A port commission may, by resolution, authorize the managing official of a port district to sell and convey port district property of ten thousand dollars or less in value. The authority shall be in force for not more than one calendar year from the date of resolution and may be renewed from year to year. Prior to any such sale or conveyance the managing official shall itemize and list the property to be sold and make written certification to the commission that the listed property is no longer needed for district purposes. Any large block of the property having a value in excess of ten thousand dollars shall not be broken down into components of ten thousand dollars or less value and sold in the smaller components unless the smaller components be sold by public competitive bid. Subject to the provisions of RCW 43.63A.510 regarding real property within an urban development area, a port district may sell and convey any of its real or personal property valued at more than ten thousand dollars when the port commission has, by resolution, declared the property to be no longer needed for district purposes, but no property which is a part of the comprehensive plan of improvement or modification thereof shall be disposed of until the comprehensive plan has been modified to find the property surplus to port needs. The comprehensive plan shall be modified only after public notice and hearing provided by RCW 53.20.010.

Nothing in this section shall be deemed to repeal or modify procedures for property sales within industrial development districts as set forth in chapter 53.25 RCW.

Sec. 14.  RCW 53.08.091 and 2010 c 8 s 16001 are each amended to read as follows:

Except in cases where the full purchase price is paid at the time of the purchase, every sale of real property or personal property under authority of RCW 53.08.090 or 53.25.110 shall be subject to the following terms and conditions:

(1) The purchaser shall enter into a contract with the district in which the purchaser shall covenant that he or she will make the payments of principal and interest when due, and that he or she will pay all taxes and assessments on such property. Upon failure to make payments of principal, interest, assessments, or taxes when due all rights of the purchaser under said contract may, at the election of the district, after notice to said purchaser, be declared to be forfeited. When the rights of the purchaser are declared forfeited, the district shall be released from all obligation to convey land covered by the contract, and in the case of personal property, the district shall have all rights granted to a secured party under chapter 62A.9A RCW;

(2) The district may, as it deems advisable, extend the time for payment of principal and interest due or to become due;

(3) The district shall notify the purchaser in each instance when payment is overdue, and that the purchaser is liable to forfeiture if payment is not made within thirty days from the time the same became due, unless the time be extended by the district;

(4) Not less than four percent of the total purchase price shall be paid on the date of execution of the contract for sale and not less than four percent shall be paid annually thereafter until the full purchase price has been paid, but any purchaser may make full payment at any time. All unpaid deferred payments shall draw interest at a rate not less than six percent per annum.

Nothing in this section shall be deemed to supersede other provisions of law more specifically governing sales of port district property, including RCW 43.63A.510 regarding the sale or transfer of real property within an urban development area. It is the purpose of this section to provide additional authority and procedures for sale of port district property no longer needed for port purposes.

Sec. 15.  RCW 72.09.055 and 1995 c 399 s 202 are each amended to read as follows:

(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.)) The department must provide an annual inventory to the department of commerce of all real property owned within an urban development area, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

Sec. 16.  RCW 79.11.005 and 2003 c 334 s 201 are each amended to read as follows:

(1) The department must provide an annual inventory to the department of commerce of all real property owned within an urban development area, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

(2) Except as provided in RCW 43.63A.510, the department is authorized to sell any real property not designated or acquired as state forestlands, 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))) (3) Except as provided in 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) Except as provided in RCW 43.63A.510, 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.

Sec. 17.  RCW 79A.05.170 and 1991 sp.s. c 13 s 23 are each amended to read as follows:

(1) The commission must provide an annual inventory to the department of commerce of all real property owned within an urban development area, as provided in RCW 43.63A.510, and must comply with the provisions of that section regarding the sale or transfer of real property.

(2) Except as provided in 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))) (3) Except as provided in RCW 43.63A.510, the ((state parks and recreation)) commission, in cases where land subject to such a reversionary clause is proposed for use or disposal for purposes other than recreation, 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))) (4) Except as provided in RCW 43.63A.510, 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.

Sec. 18.  RCW 79A.05.175 and 2007 c 145 s 1 are each amended to read as follows:

Except as provided in RCW 43.63A.510, 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 parkland 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 parklands shall be made without the unanimous consent of the commission.

Sec. 19.  RCW 81.112.080 and 1992 c 101 s 8 are each amended to read as follows:

(1) An authority shall have the following powers in addition to the general powers granted by this chapter, and subject to the applicable provisions of RCW 43.63A.510:

(((1))) (a) To carry out the planning processes set forth in RCW 81.104.100;

(((2))) (b) 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))) (c) 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, and subject to the provisions of RCW 43.63A.510 regarding the sale or transfer of real property in an urban development area. 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))) (d) 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.

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