AN ACT Relating to rental assistance for single-parent households receiving aid to families with dependent children; amending RCW 67.70.190; adding a new chapter to Title 74 RCW; making an appropriation; providing an effective date; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. This chapter may be cited as the rental housing allowance act of 1988.

NEW SECTION. Sec. 2. The legislature finds that the rate of increase for rental costs for housing has increased faster than household income for most households; that this increase in rental housing cost is particularly hard on households on public assistance; that there are over fifty-five thousand households that receive aid to families with dependent children as their sole source of income; that many single-parent households on public assistance need assistance to cover basic shelter costs, but the assistance should maximize individual choice; that the cost of basic accommodation is so high as to cause undue hardship for many single-parent households on public assistance.

The legislature further finds that a program to provide housing assistance to single-parent households on public assistance, by providing a monthly fixed allowance for rent, would protect those households from the erosion of their income from increased housing costs.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Very low-income household" means a person or household whose adjusted income is below fifty percent of the median household income, adjusted annually by the federal department of housing and urban development, for the county or standard metropolitan statistical area in which the household is located.

(2) "Eligible household" means a household or family that at the time it initially receives assistance under the housing allowance program:

(a) Qualifies as a single-parent household, as determined by the department of social and health services;

(b) Qualifies as a very low-income family or household; and

(3) "Department" means the department of community development.

(4) "Director" means the director of community development.

(5) "Dependent child" means dependent child as defined in chapter 74.12 RCW.

(6) "Housing allowance payment" means the monthly payment by the eligible organization to an owner on behalf of a household participating in the housing allowance program.

(7) "Housing allowance contract" means a written contract between an eligible organization and an owner in which the eligible organization agrees to make housing allowance payments to the owner on behalf of an eligible household.

(8) "Lease" means a written agreement between an owner and a household for the leasing of a dwelling unit by the owner to the household with assistance payments under a housing allowance contract between the owner and the eligible organization.

(9) "Owner" means one or more persons, jointly or severally, in whom is vested:

(a) All or any part of the legal title to property; or

(b) All or part of the beneficial ownership, and a right to present use and enjoyment of the property.

(10) "Participant" means a household that is eligible for a housing allowance payment, and the eligible organization has executed a housing allowance contract with the owner for housing allowance payments on behalf of the household.

(11) "Eligible organization" means a public housing authority created under RCW 35.82.030, a not-for-profit corporation as defined in RCW 24.03.005, or an organization that administers rental assistance programs on behalf of a local governing body.

Sec. 4. Section 19, chapter 7, Laws of 1982 2nd ex. sess as amended by section 8, chapter 511, Laws of 1987 and RCW 67.70.190 are each amended to read as follows:

Unclaimed prizes shall be retained in the state lottery account for the person entitled thereto for one hundred eighty days after the drawing in which the prize is won, or after the official end of the game for instant prizes. If no claim is made for the prize within this time, the prize shall be ((~~retained in the state lottery fund for further use as prizes~~)) deposited in the housing trust fund under RCW 43.185.030 and all rights to the prize shall be extinguished.

NEW SECTION. Sec. 5. Subject to appropriation, the department shall:

(1) Establish a rental housing allowance program. The department may make grants to local governing bodies for the purpose of making housing allowance payments to or on behalf of eligible households under the pilot program established by this chapter.

(2) Select up to eight local governing bodies for the purposes of implementing local pilot programs designed to provide a fixed monthly housing allowance payment to or on behalf of eligible households. In selecting projects under this section, the department shall consider:

(a) The number of eligible households within the jurisdiction of the local governing body;

(b) The availability of suitable housing stock in the jurisdiction of the local governing body for the eligible households the housing allowance program is intended to serve;

(d) Other factors the department deems appropriate.

(3) In selecting the pilot programs under this section, to the extent feasible, provide for a geographic distribution of programs throughout the state.

NEW SECTION. Sec. 6. (1) The department shall administer the pilot program in conjunction with local governing bodies through eligible organizations authorized to administer federal or state housing assistance programs.

(2) The department shall establish:

(a) The maximum total rent for an assisted housing unit, the size of the assisted housing unit, and the amount of the monthly rental allowance payments by household size, taking into account:

(i) Regional variances within the state;

(ii) Expected average annual participant income by household size;

(iii) Typical rental costs; and

(iv) Any other factors relative to income or rental costs.

(b) Minimum standards for eligible housing units.

NEW SECTION. Sec. 7. (1) The department shall award funds to participating local governing bodies, as established under section 5 of this act, for the purpose of administering local housing allowance programs.

(2) The grant award amount shall be invested by the local governing body in a revolving fund for the purpose of making housing allowance payments to owners of housing units on behalf of program participants.

(3) The earnings on the investment of the grant award may be applied, by the local governing body or the eligible organization, to payments under the housing allowance contracts or to cover local administrative costs.

NEW SECTION. Sec. 8. (1) The local governing body, through the eligible organization, shall enter into a housing allowance contract with the owner of the housing unit for the purpose of making housing allowance payments on behalf of the program participants.

(2) Prior to the execution of a housing allowance contract, the eligible organization shall inspect the housing unit to ensure compliance with the terms and conditions of the program. The eligible organization shall also review and approve the lease agreement between the eligible household and the owner of the housing unit.

(3) Once the terms and conditions have been met, the eligible organization shall enter into a housing allowance contract with the owner of a housing unit for the purpose of making monthly housing allowance payments on behalf of the participant.

(4) The eligible organization shall make a fixed monthly housing allowance payment to the owner of the housing unit leased by the participant.

(5) The housing allowance contract shall be for the term of the lease, not to exceed twelve months.

(6) Nothing in this chapter shall be construed as creating an entitlement to assistance programs in the absence of appropriations sufficient to fund this program.

NEW SECTION. Sec. 9. The director shall report to the governor and the commerce and labor committee of the senate and the committee on housing of the house of representatives on the results of the housing allowance program by November 1, 1991. The report shall include, but not be limited to, the results of the individual demonstration sites, number of persons assisted, assistance per participant, and recommendations for improvement, continuation, or expansion of the housing allowance program.

NEW SECTION. Sec. 10. The department may adopt rules to implement this chapter.

NEW SECTION. Sec. 11. The department may receive such gifts, grants, and endowments from public and private sources as may be made from time to time, in trust or otherwise, for its programs, including the housing allowance program. Funds from the housing trust fund, chapter 43.185 RCW, not to exceed two million dollars, may be used for the housing allowance program by the department of community development and eligible organizations, provided all requirements of this chapter and chapter 43.185 RCW are met.

NEW SECTION. Sec. 12. This chapter shall expire on June 30, 1991.

NEW SECTION. Sec. 13. Sections 1 through 3 and 5 through 12 of this act shall constitute a new chapter in Title 74 RCW.

NEW SECTION. Sec. 14. The sum of three million dollars, or as much thereof as may be necessary, is appropriated to the department of community development from the state general fund for the biennium ending June 30, 1989, to carry out the purposes of the housing allowance program.

NEW SECTION. Sec. 15. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 16. This act shall take effect July 1, 1988. The director of community development may take such steps as are necessary to ensure that this act is implemented on its effective date.