HOUSE BILL REPORT

HB 97

BYRepresentatives Braddock, Haugen, Kremen and Ferguson

Modifying provisions relating to sale of property by special districts.

House Committe on Local Government

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (12)

     Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Hine, Nealey, Nelson, Nutley, Rayburn,L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT MARCH 2,1987

BACKGROUND:

Real property owned by a sewer district or water district may not be sold for less than 90 percent of its appraised value as established by three written appraisals made not more than six months before the date of the sale.

SUMMARY:

SUBSTITUTE BILL:  Laws relating to the sale of real property owned by a sewer district or water district are changed so that if no purchaser can be found for the property at 90 percent of its appraised value after 90 days of attempting a sale, the district must obtain another set of appraisals and attempt to sell the property for at least 90 percent of the second appraised value for another 90 day period.

If a purchaser cannot be found for this 90 percent amount, the district can request permission from the county legislative authority, of the county in which the district is located, to sell the property below this 90 percent figure, and the county legislative authority may authorize such a sale.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The requirement was added to get permission from the county legislative authority for a sale below the 90 percent figure.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Joe Daniels, Washington State Association of Wastewater Districts; Pat Sizemore, Birch Bay Water District No. 8; and Bill Mudge, Washington State Association of Sewer Districts.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     A sewer district in Birch Bay has not been able to sell its property for 90 percent of its assessed valuation.  In areas that are in a recession, property values drop.  In some cases the appraised value is less than the amount of delinquency.

House Committee - Testimony Against: The appraised value is not the assessed value.  An appraisal should take cognizance of reduced property values.