SENATE BILL REPORT

SHB 1389

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives 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

Rereferred House Committee on Committee on Ways & Means/Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):February 29, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Bauer, Bluechel, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Saling, Talmadge, Vognild, Warnke, Williams, Wojahn.

Senate Staff:Jan Sharar (786-7715)

                  February 29, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 29, 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 at 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 Department of Community Development 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.

The department is to make rules to implement and administer the program.  Two hundred fifty thousand dollars is provided to the department for loans,  and the department is provided $10,000 to implement and administer the program.  These appropriations are from the general fund.  The loan repayments by the recipients will be deposited in the general fund by the department.

The program will expire on June 30, 1989.

SUMMARY OF PROPOSED SENATE AMENDMENT:

October is reflected as the first month of the federal fiscal year and specific reference to program dates is removed.

Appropriation:    $260,000

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Representative Busse Nutley; Sylvia McGee, Washington Coalition for the Homeless