SENATE BILL REPORT

SHB 932

BYHouse Committee on Housing (originally sponsored by Representatives Nutley, Padden, Leonard, Ebersole, Sanders, J. Williams, Lewis, Doty, Nealey, L. Smith, Brough,  Winsley, Wineberry, Silver, Ballard, Betrozoff, Taylor, Miller and D. Sommers) 

Relating to rental payments to landlords from public assistance.

House Committe on Housing

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 18, 1988; February 22, 1988

Majority Report:     Do pass as amended.

     Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Halsan, Metcalf, Pullen.

Senate Staff:Desley Brooks (786-7443); Eugene Green (786-7405)

                February 23, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 22, 1988

BACKGROUND:

The Department of Social and Health Services (DSHS) is authorized as the single state agency to administer public assistance programs.  The administration of public assistance programs must be in conformance with federal laws as well as be consistent with state public assistance laws.

DSHS presently administers its public assistance programs with provisions for protective and vendor payments on behalf of recipients.  These provisions allow DSHS to make payments from public assistance funds when recipients are incapable of self- care or when directed by recipients as a vendor payment.

SUMMARY:

The Department of Social and Health Services will implement a pilot program, selecting from three to seven local governing bodies throughout the state in which DSHS will pay public assistance funds directly to landlords when voluntarily requested to do so by public assistance recipients.  In conjunction with the pilot program, the department will conduct a study to determine the feasibility of a statewide program and whether the program would increase the supply of housing available to persons on public assistance.

The department will report on pilot program progress to the Legislature at the beginning of the 1988 and 1989 legislative session.  The act expires June 30, 1989.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The striking amendment has the same intent as the bill, but makes the following significant changes and/or additions.

Upon written request of the recipient, the department shall pay to the recipient's landlord, through the local governing body, that portion that equals 90 percent of the monthly public assistance grant which is allocated for rent.

The local governing body shall charge the landlord a monthly fee of $2 to cover the cost of administering each direct payment.  The fee shall not be charged to the tenant in the form of rent or otherwise.  Additionally, landlords may be charged a fee, up to $50 per unit, to cover the cost of inspecting and certifying that the unit is in compliance with the housing authority standards and for the Department of Housing and Urban Development.

Recipients will not be liable to the department for amounts incorrectly paid to the landlord.  The department shall recover overpayments from the landlord.

The effective date is changed to July 1, 1988.

The expiration date is changed from June 30, 1989 to June 30, 1991.

The department has rule making authority.

The department shall provide an annual report to the governor and the Legislature.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Laurie Evans, DSHS (con); Tony Lee, Catholic charities (con); Cindy Silverman, AFDC recipient (con); Mary Washington-Lathon, Fair Budget Action (con); Sylvie McGee, Washington Coalition for the Homeless (con): Tim Seth, Washington Apartment Association (pro); Carrol Duval, Apartment Association of Seattle and King County (pro); Steve Fredrickson, Evergreen Legal Services (con); Lois Gaddy, Washington State Mobile Park Owners Association (pro)