SENATE BILL REPORT

HB 86

BYRepresentatives Brough, Haugen, May, Bristow and Bumgarner

Requiring notice about sewer or water improvements to be sent to certain additional property owners.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):April 2, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; McCaslin, Talmadge, Zimmerman.

Senate Staff:Walt Corneille (786-7452); Eugene Green (786-7405)

                  April 3, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, APRIL 2, 1987

BACKGROUND:

Local improvement districts (LID's) are mechanisms used by local governments to finance all or part of the costs of public improvements such as roads, streets, sewer lines, and water lines.  Special assessments are imposed upon property within a LID in relation to its benefit from being located near the improvement.

A condition of purchasing a house using a Federal Housing Administration (FHA) loan is that the house be serviced by a sewer or water system if the system is available to the house.

SUMMARY:

If a city, town, county, water district, or irrigation district creates a LID to finance sanitary sewers or potable water facilities, notice must be given to certain property owners located outside the LID.  Notice must be given to those property owners outside the LID whose property is required to be serviced by the improvements if the sale of the property is financed with an FHA loan.

A city or town is required to hold a public hearing on a proposed LID or utility LID if the LID was initiated by petition.

SUMMARY OF PROPOSED SENATE AMENDMENT:

When a LID is created, notice must be given to property owners outside the LID if, at the time of the notice, connection to the water or sewer facility would be required when financing the sale of the property with an FHA loan.

Fiscal Note:      none requested

Senate Committee - Testified: Cee Strong, City of Everett; Mike Weissman