SENATE BILL REPORT

ESHB 1601

BYHouse Committee on Housing (originally sponsored by Representatives Wineberry, Locke, Armstrong, Anderson, Hine, Ferguson, Nutley, Ebersole, Valle and Nelson)

Creating the low-income housing preservation task force.

House Committe on Housing

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 23, 1988

Senate Staff:Patrick Woods (786-7430)

AS OF FEBRUARY 22, 1988

BACKGROUND:

The loss of affordable housing for low-income persons is a concern in many areas.  This loss of housing is due to many factors such as demolitions, conversions of existing use to new uses, and local development pressures.

In response to the loss of affordable residential units, some jurisdictions have passed local ordinances that required some form of payment from developers that destroy or remove units occupied by low-income persons.  The payment required by the jurisdiction is used to replace the housing lost as a result of the development.

The State Supreme Court has held that an ordinance that has as its primary purpose to provide a public benefit and not to regulate is a tax.  A Seattle ordinance which required a developer to provide additional housing or pay into a fund for low income housing was held to be a tax by the State Supreme Court.

The State Supreme Court also has held that a municipal corporation has no authority to levy taxes other than when expressly granted by statute.

This ruling by the court has invalidated one approach that some jurisdictions have used to preserve or replace their existing low-income housing stock.

SUMMARY:

The Low-Income Housing Preservation Task Force is created.  The task force shall be composed of eighteen members appointed by the Director of the Department of Community Development to consist of six representatives of cities; two representatives of counties; one representative of the Seattle Master Builders; one representative of the Home Builders Association; two representatives of realtors; two representatives of Building Owners and Managers Association: two representatives of financial institutions that provide development financing; one representative of the Washington State Housing Finance Commission, as a nonvoting member; one representative of the Department of Community Development, as an ex officio, nonvoting member; and one representative selected by the task force to act as chairperson, and shall be a nonvoting member, except in the case of ties.

The task force is to conduct a comprehensive examination of the loss of low-income housing caused by, but not limited to demolitions, conversion activities to different uses, and local development pressures; determine strategies and methods for replacing and preserving the existing low-income housing stock including, but not limited to development fees, relocation fees to displaced tenants, replacement housing, and revisions to state property tax policies; take any action related to carrying out the purpose of the task force; and provide a written preliminary report to the House Committee on Housing and Senate Governmental Operations committees by September 1, 1988, and a final report by December 1, 1988, that presents the findings and recommendations of the task force.

Staffing for the task force is provided through the members.

Members of the task force will receive no compensation. The task force expires July 1, 1989.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 21, 1988