SENATE BILL REPORT

E2SHB 1301

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Nutley, Leonard, Rayburn, J. Williams, Wang, Grant, R. King and Unsoeld)

Providing for farm-worker housing.

House Committe on Housing

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Agriculture

Senate Hearing Date(s):February 25, 1988; February 26, 1988

Majority Report:  Do pass as amended and refer to Committee on Ways & Means.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Hansen, Rinehart.

Senate Staff:Kaleen Cottingham (786-7415)

                  February 26, 1988

AS REPORTED BY COMMITTEE ON AGRICULTURE, FEBRUARY 26, 1988

BACKGROUND:

Washington agriculture depends on large numbers of farm workers to harvest labor intensive crops such as apples, cherries, and asparagus.  The majority of this labor force consists of migrant workers.

In November, 1987 the State Board of Health (Farm-worker Housing Work/Study Group) released its preliminary report on farm-worker housing.  The report recommends the development of housing for migrant farm workers by the federal government, the state, and the agricultural community.  A secondary recommendation is that the State Building Code be revised to be sensitive to the seasonal occupancy of the housing.

The purpose of the State Building Code is to provide a uniform set of performance standards for the construction of structures within the state.  Cities and counties are authorized to amend the State Building Code, but the amendments cannot result in a standard that is less than the performance standards adopted by the state.

The Washington Housing Trust Fund (Trust Fund) was created in 1986 to assist in meeting the basic housing needs of low-income persons, persons in rural areas, and persons with special housing needs, including housing for migrant farm workers.  The Department of Community Development (DCD) is responsible for the administration of the housing trust fund program.

SUMMARY:

The Department of Community Development is directed to assist in the development or preservation of housing for migrant farm workers.

Technical Assistance

DCD is authorized to provide grants to local governments and nonprofit organizations to increase the development of permanent and temporary housing alternatives for farm workers.  The grants may be used for: (a) technical assistance (such as design, finance and consultation services); and/or (b) increasing access to other funding sources.

DCD is authorized to develop model construction plans for farm-worker housing including, but not limited to, campgrounds, dormitory housing, family housing, and recreational vehicle parks.

$250,000 is appropriated to the Department of Community Development for technical assistance.

Loans and Grants for Migrant Farm-worker Housing

Provisions of the Washington State Housing Trust Fund are developed to allow DCD to make loans, grants and subsidies for (1) the construction, rehabilitation or acquisition of housing affordable to low-income farm workers and their families; (2) construction of migrant centers; and (3) construction of temporary housing alternatives.  These loans and grants may be made to the following entities: (a) local governments and nonprofit organizations; and (b) eligible organizations, as defined by the department.  Operating subsidies for the operation of migrant centers or migrant farm worker housing are also provided.

Grants to local governments and nonprofit organizations, for the development or rehabilitation of migrant farm-worker housing, can not exceed 50 percent of the project costs nor be used for project organization or planning.

Loans to local governments and nonprofit organizations for the development or preservation of migrant farm-worker housing cannot exceed 80 percent of the project costs nor be used for project organization or planning.  Such loans may not have an interest rate which exceeds 7 percent per year.

Loans to eligible individuals, for the rehabilitation of migrant farm-worker housing cannot exceed 50 percent of the project costs nor exceed an interest rate of 7 percent per year.

Grants to local governments and nonprofit organizations, for operating subsidies for migrant farm-worker housing, cannot exceed the minimum amount necessary to maintain the units at rates affordable to migrant farm workers.

Criteria are established for demonstrating that the project is appropriate for inclusion in the loan, grant or subsidy program.  DCD is authorized to establish additional terms, rates, and conditions for the loans and grants.

Building Code Exemption

The State Building Code Council may adopt, by rule, its own construction and thermal performance standards for housing that is occupied solely by farm workers.  If such standards are adopted, then the local governing body must comply with these construction standards.

If the council does not adopt its own standards, the local governing body may adopt the federal Farmers Home Administration (FmHA) standards for migrant farm- worker housing.  If the local government adopts the FmHA standards, the State Energy Code standards do not apply.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The striking amendment is mostly technical in nature:  language is amendatory to existing statutes rather than creating new and potentially redundant sections.  Some sections are rewritten to be easier to understand.  Substantive changes do include the following:

      1)recognizing the contribution that farm workers provide to the continued viability of Washington agriculture;

      2)expanding the coverage so that funding can be provided for low-income farm workers, not just migrant and seasonal farm workers; and

      3)relaxing the criteria for a loan applicant so that he or she need only demonstrate that existing financial resources are inadequate to finance the whole project.

Appropriation:    $250,000 to the Department of Community Development.

Revenue:    none

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Karl Kupers, wheat grower (for); Rebecca Smith, Evergreen Legal Services; Hector Gonzalez, Commission on Hispanic Affairs (for); Sylvie McGee, Washington State Coalition for the Homeless (for); Kim Herman, Washington State Housing Finance Comm. (for); Billie Heath, Washington Rural Housing Coalition