FINAL BILL REPORT

HB 1618

                                  C 363 L 89

BYRepresentatives Locke, Nutley, Winsley, Wineberry, Betrozoff, Anderson, Jacobsen and O'Brien

Making major revisions concerning public housing authorities.

House Committe on Housing

Senate Committee on Economic Development & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

The state's Housing Authorities Law, enacted in 1939, created local public housing authorities in each county and city of the state.  The purpose of a public housing authority is to provide safe and sanitary housing for persons of low-income.  Persons of low-income are defined as an individual or household whose annual income is at or below 50 percent of median income, based on household size, for the county where the housing is located.  The housing for persons of low-income is provided through the administration of various federal, state, or local housing programs.

Public housing authorities are authorized to lease, rent, own or manage buildings containing a housing project for persons of low- income.  A housing project is defined as dwelling units that occupy at least 30 percent of the interior space of any individual building in a project, and at least 50 percent of the interior space in the total project.

Public housing authorities are authorized to make loans to property owners to construct or improve their housing.  In exchange for the financial assistance the property owner agrees to rent the property to persons of low-income for at least 10 years.  In addition, the property owner must: (a) ensure that other federal, state, or local government financial assistance will be provided for the project; or (b) provide the public housing authority at least a 25 percent interest in the completed building or development or at least 25 percent ownership of the housing units in the completed building or development.

Under the state's Housing Authorities Law, public housing authorities must sell all real or personal property at fair market value and are not authorized to use the small works roster process to award public works contracts for construction, repair, or alteration projects.

SUMMARY:

The state's Housing Authorities Law is revised to allow public housing authorities greater participation in the provision of housing that is affordable to persons of low-income.

Several changes are made to assist public housing authorities in the development of housing that contains a mix of income groups.  First, the definition of housing project is expanded to include mobile home parks.  Second, single family or duplex residential buildings are exempt from the requirement that 30 percent of the interior space of any individual building must be occupied by persons of low-income, but the requirement that 50 percent of the interior space of the total project must be occupied by persons of low-income is retained.  Finally, property of the public housing authority may be sold at below fair market value to governmental bodies, or non-profit corporations, or persons of low-income, provided that the property is used for housing for persons of low-income for at least 20 years.

Changes are also made to assist in the development of housing that is available to persons of low-income.  Public housing authorities are authorized to provide financial assistance to profit motivated developers or property owners on the condition that: (a) the dwelling units cannot be rented to persons with income greater than 50 percent of median income; (b) the rents on the units cannot exceed 15 percent of the area median income, based on household size; (c) at least 30 percent of the interior space of any individual building, other than a detached single family or duplex residential building, or at least 50 percent of the interior space of the total project must be rented to persons of low- income; (d) the use of the property for persons of low-income is for at least 20 years; and (e) the written findings of the public housing authority support the need for financial assistance in order for the project to proceed.

The Housing Authorities Law is revised to allow the award of construction, repair, or alteration projects, estimated to cost less than $40,000, through the small works roster process.  To use the small workers roster process, a housing authority must solicit quotations from at least five contractors on the roster.  When possible, the authority must solicit at least one quotation from a minority or woman contractor, or a contractor that employs or commits to employ residents of housing owned or managed by the housing authority.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    45     0

EFFECTIVE:July 23, 1989