AN ACT Relating to creating a housing gap voucher program; adding a new section to chapter 43.31 RCW; adding a new section to chapter 44.28 RCW; creating a new section; and providing an expiration date.

NEW SECTION. Sec. 1. (1) The legislature finds that the state of Washington is experiencing a significant increase in housing costs, particularly in rental markets. High rents have become a substantial burden for a substantial portion of the population, limiting their ability to access safe and affordable housing. This situation creates economic instability and negatively impacts the overall well-being of individuals and families across the state.

(2) The legislature further finds that a significant number of Washington residents are currently rent-burdened, spending a disproportionate amount of their income on housing expenses. The strain imposed by high rental costs contributes to financial insecurity, making it challenging for individuals and families to meet other essential needs, such as health care, education, and savings for the future. This phenomenon exacerbates existing inequalities and hinders economic mobility for a significant portion of the population.

(3) Therefore, the legislature intends to address the issue of housing affordability by establishing a rental voucher program. This program aims to reduce the number of people who are rent-burdened by providing financial assistance to eligible individuals and families. This program seeks to create a more equitable and accessible housing market, fostering stability and opportunity for Washington residents. By implementing this rental voucher program, the legislature aims to alleviate the economic strain caused by high rents, promote housing security, and enhance the overall quality of life for residents of the state.

(1) Subject to the availability of amounts appropriated for this specific purpose, the housing gap voucher program is created as a grant program administered by the department of commerce. The department may adopt any rules necessary to administer the program.

(2) As part of the housing gap voucher program, the department of commerce may provide grants to public housing authorities created under chapter 35.82 RCW for the purpose of providing housing gap voucher payments for eligible renters as described in this section.

(a) The renter must have a household income at or below 80 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development;

(b) The renter must spend more than 30 percent of the renter's monthly household income on monthly housing costs, including rent, fees, and utilities; and

(c) The renter would not have to spend more than 30 percent of their monthly household income on monthly housing costs, including rent, fees, and utilities, if the renter's monthly rent payment was reduced by $400 or less.

(4) A public housing authority must prioritize providing housing gap voucher payments for eligible renters who meet any of the following criteria:

(a) The eligible renter has a household income at or below 60 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development; or

(5) A housing gap voucher payment may not exceed the lesser of $400 or the amount necessary to reduce an eligible renter's monthly housing costs, including rent, fees, and utilities, to no more than 30 percent of the eligible renter's monthly household income.

(7) An eligible renter may receive housing gap voucher payments for up to 24 months, regardless of whether the months are consecutive.

(8)(a) A renter seeking a housing gap voucher payment under this section must submit monthly documentation of their income, rent, utilities, and any other records necessary to determine program eligibility to the appropriate public housing authority.

(b) A renter who provides false documentation under this subsection must repay any housing gap voucher payments received and is no longer eligible for participation in the housing gap voucher program.

(10) By June 30, 2025, and annually thereafter, and in compliance with RCW 43.01.036, the department of commerce shall submit a report to the appropriate committees of the legislature on the housing gap voucher program that includes information on the total number of renter households served by the program, the total dollar amount of rental assistance distributed to renters as housing gap voucher payments, the average number of months that a renter household receives housing gap voucher payments, and any recommendations for changes to the program. The department of commerce must also post a copy of the report to the department's website.

(11) For the purposes of this section, "renter" means any person who rents a dwelling unit under a rental agreement subject to chapter 59.18 RCW or a manufactured/mobile home lot under a rental agreement subject to chapter 59.20 RCW.

The joint committee must review the efficacy of the housing gap voucher program established by this act and its impacts on housing stability for those served by the program and report its findings to the appropriate committees of the legislature by December 1, 2030. The review must include a recommendation on whether this program should be continued without change or should be amended or repealed.