HOUSE BILL REPORT

SB 5564

As Amended by the House

BYSenator Zimmerman

Establishing procedure for deactivation or abolition of local housing authorities.

House Committe on Housing

Majority Report:  Do pass with amendment.  (9)

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

House Staff:Kenny Pittman (786-7392)

AS PASSED HOUSE APRIL 7, 1987

BACKGROUND:

In 1939, legislation enacted provisions that created a "Housing Authority" in every city, town and county.  However, before a housing authority can transact any business or exercise its powers, the governing body of the city, town or county must pass a resolution declaring the need for the housing authority to function.

Some housing authorities, formerly activated, are no longer functioning or necessary.  No statutory authority and procedures exist in present law for the deactivation of a housing authority.

The present law does not contain provision to handle the disbursement of assets of a housing authority that is in the process of being deactivated by the governing body of a city, town or county.

SUMMARY:

A housing authority may be deactivated by resolution of the governing body of the city, town or county.  The process of deactivating a housing authority must include an assessment of the need of a housing authority at a public hearing.  The governing body of the city, town or county is permitted to exercise power to wind up the affairs of the housing authority.

A housing authority being deactivated shall distribute its assets (a) to satisfy all liabilities and obligations of the housing authority (b) to the original granting party when required in the contract conditions (c) to the governing body of the city, town or county to satisfy contract conditions (d) to the governing body of the city, town or county, when uses not specified in contract or return not required, for uses allowed under state law.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Senator Hal Zimmerman

House Committee - Testified Against:      Mike Sivia, Washington Association of Housing Authorities.

House Committee - Testimony For:    Currently there are a number of housing authorities in existence which are no longer active.  These housing authorities serve no function and are unnecessary.  At present there is no law to deactivate these housing authorities.  This bill will allow this action to occur.

House Committee - Testimony Against:      As written, this bill does not provide adequate protection to an active housing authority.  A uniform process similar to the steps required to activate a housing authority should be developed.