HOUSE BILL REPORT

HB 1389

BYRepresentatives Nutley, J. Williams, Leonard, Sanders, Wineberry, Heavey, Anderson, Jacobsen, Valle, Nelson, Todd, Lux, Unsoeld and Ferguson

Creating the emergency food and shelter program revolving account.

House Committe on Housing

Majority Report:  Do pass.  (9)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Armstrong, Barnes, Padden, Sanders, Todd, J. Williams and Wineberry.

House Staff:Charlie Gavigan (786-7340)

Rereferred House Committee on Committee on Ways & Means/Appropriations

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (22)

      Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Bristow, Brough, Butterfield, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, Nealey, Peery, Silver, H. Sommers, Spanel, Sprenkle, Wang, and B. Williams.

House Staff:      Susan Kavanaugh (786-7145)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

FEBRUARY 7, 1988

BACKGROUND:

The Federal Emergency Management Agency (FEMA) oversees and funds the Emergency Food and Shelter Program.  The funds for this program are allocated by a national board.  The national board is chaired by FEMA, and consists of representatives from United Way, The Salvation Army, the National Council of Churches, Catholic Charities, the Council of Jewish Federations, and the Red Cross. Local boards manage the program on the local level.

The intent of the program is to meet emergency needs by supplementing existing food and shelter assistance persons might currently be receiving, as well as to assist those who are receiving no assistance.  One form of assistance is the one-time payment of rent for poor persons facing eviction.

There is usually a delay between the approval of the grant and the disbursement of the funds.  This gap often exists from November, which is the beginning of the federal fiscal year, through February or March.

SUMMARY:

The emergency food and shelter revolving loan fund (the fund) is created.  The fund is managed by the Department of Community Development (the department).  The department is to make loans to local governments or organizations that have been approved to receive a grant from FEMA through the emergency food and shelter program.  The recipient of the department's loan will repay the loan when the federal funds are received.

The loans are to be issued by the department to cover the gap and meet the emergency service needs from November through March. The recipient will not be required to pay interest on the loan, however interest that the fund makes on the fund's balance is to be deposited in the general fund.

The department is to make rules to implement and administer the program.  Two hundred fifty thousand dollars is allocated for loans and the department is allocated fifty thousand dollars to implement and administer the program.  These appropriations are from the general fund.

The fund and program expire on July 1, 1991.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  No revolving loan fund is created.  Loans are repaid to the general fund.  Funding for administration is reduced from fifty thousand to ten thousand.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Housing) Sylvie McGee, Washington State Coalition for the Homeless.

(Ways & Means/Appropriations)  Representative Busse Nutley; and Phil Kaplan, Washington Poverty Law Advocates.

House Committee - Testified Against:      (Housing)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:    (Housing)  The gap in funding hurts organizations who provide eviction assistance.  The gap occurs during the winter months, when funds are needed most.

(Ways & Means/Appropriations)  Shelter funding is most needed and least available in winter.  Shelters turn away six thousand people a month.

House Committee - Testimony Against:      (Housing)  None Presented.

(Ways & Means/Appropriations)  None Presented.