HOUSE BILL REPORT
HB 1663
BYRepresentatives Nutley, Winsley, Leonard, Ballard, Anderson, Jacobsen, Locke, O'Brien, Prentice, Sayan, Wineberry, Ebersole, Brekke, Rust, Nelson and Rector
Enacting the farmworker housing act.
House Committe on Housing
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (9)
Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Winsley, Ranking Republican Member; Anderson, Ballard, Inslee, Padden, Rector and Todd.
House Staff:Kenny Pittman (786-7392)
Rereferred House Committee on Revenue
Majority Report: The substitute bill by Committee on Housing as amended by Committee on Revenue be substituted therefor and the substitute bill as amended do pass. (14)
Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Assistant Ranking Republican Member; Basich, Brumsickle, Fraser, Grant, Haugen, Morris, Phillips, Rust, Silver and H. Sommers.
Minority Report: Do not pass. (2)
Signed by Representatives Fuhrman and Van Luven.
House Staff: Rick Wickman and Bob Longman (786-7136)
Rereferred House Committee on Appropriations
Majority Report: The substitute bill by Committee on Housing as amended by Committee on Revenue be substituted therefor and the substitute bill as amended do pass. (22)
Signed by Representatives Locke, Chair; Grant, Vice Chair; Silver, Ranking Republican Member; Belcher, Bowman, Braddock, Brekke, Bristow, Brough, Dorn, Ebersole, Hine, McLean, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.
House Staff: Susan Nakagawa (786-7136)
AS REPORTED BY COMMITTEE ON APPROPRIATIONS MARCH 5, 1989
BACKGROUND:
Agriculture is a major industry in the state of Washington. The harvesting of labor intensive crops, such as apples, cherries, and asparagus, requires large numbers of farmworkers. The majority of this labor force consists of workers that come to the state of Washington from other states or counties and workers that live in areas beyond commuting distances.
Historically, housing for farmworkers hired to harvest the labor intensive crops was provided by the individual grower that employed the farmworker. However, the amount of housing available to farmworkers has not kept up with the demand for housing.
The Department of Social and Health Services (DSHS) is responsible for the inspection of housing for agricultural workers. DSHS imposes a fee on operators of housing provided by employers, growers, management, or any other persons that is used for occupancy by workers or workers and their dependents in agriculture. The fee must cover the cost of inspecting and certifying that the housing meets the state Board of Health's rules and regulations pertaining to labor camps.
SUMMARY:
SUBSTITUTE BILL: I. The Department of Community Development is required to develop the following grant and loan programs to assist in the development or preservation of housing affordable to farmworkers:
1. Grants for Technical Assistance
The Department of Community Development is authorized to make grants to local governing bodies and public and private non-profit organizations to increase their ability to develop housing for farmworkers.
The grants may be used to cover: (a) technical assistance (such as design, finance and consultation services) and related administrative costs related to a specific project and/or (b) administrative costs necessary to increase access to other funding sources.
2. Loans and Grants for Housing Affordable to Farmworkers
The Department of Community Development is authorized to make either loans or grants or both to local governing bodies, public or private non-profit organizations and loans only for rehabilitation to eligible growers. Loans or grants can be used for the construction, rehabilitation or acquisition and construction of housing that is affordable to farmworkers and their families.
In the case of local governing bodies and nonprofit organizations, the grant amounts cannot exceed 50 percent of the project costs or be used for project organization or planning costs. Loans to local governments or non-profit organizations cannot exceed 80 percent of the project costs or exceed interest rates tied to federal treasury bond yield.
Loan and grant provisions for local governments and non-profit organizations require that: (a) the housing be occupied, utilized, maintained, and operated for low-income farmworkers for as long as the housing is needed; (b) the housing be available for occupancy by all eligible farmworkers, (c) the applicant meet the department's need criteria in requesting assistance, and (d) the housing must be inspected, licensed, and comply with applicable governmental regulations.
In the case of eligible growers, the loan amount can not exceed 80 percent of the project costs or exceed interest rates tied to federal treasury bond yield.
Loan provisions for eligible growers are limited to rehabilitation of existing structures and require that: (a) the housing be occupied, utilized, maintained, and operated for at least the term of the loan, (b) the housing be in need of rehabilitation, and (c) the housing must be inspected, licensed, and comply with applicable governmental regulations.
3. Grants for Operating Subsidies
The Department of Community Development is authorized to make grants to local governing bodies, public or private non-profit organizations to assist in the operation of farmworker housing centers or farmworker housing.
Priorities for Awarding Loans and Grants
The Department of Community Development is directed to accept applications for assistance and may make awards on a quarterly basis. The award of funding is based on a priority to fund projects that increase the supply of housing that is available to all migrant and/or seasonal farmworkers.
II. General Provisions
The Department of Community Development is authorized to: (a) adopt and amend regulations concerning the operation of the program; (b) contract for services necessary to operate the farmworker housing programs; (c) require financial information necessary to make loan and/or grant decisions, and (d) develop guidelines to allow housing developed under this act to be used by non- farmworkers on an emergency basis for short periods of occupancy.
All repayments of principal and interest shall be deposited in the Washington Housing Trust Fund. The moneys deposited into the Washington Housing Trust Fund from repayments shall be only for loans and grants to support the development of farmworker housing.
III. Model Plans and Construction Manuals
The Department of Community Development is authorized to develop and make available model plans and construction manuals for farmworker housing, including, but not limited to seasonal housing for individuals and families, campgrounds, and recreational vehicle parks.
IV. Inventory of State-Owned Land
The Department of Community Development shall work with the Departments of Natural Resources, Transportation, and General Administration to identify and catalog under-utilized state-owned land and property for possible lease. The Department of Community Development shall work with local governments, public and private non-profit organizations in securing long term leases for the purpose of siting farmworker housing.
V. Lease of County-Owned Land
Counties are authorized to lease its property for the purpose of siting seasonal or migrant farmworker housing. Lease terms up to 75 years are provided.
VI. Sales Tax Exemptions
Tangible personal property used in the construction or rehabilitation of a farmworker housing project and labor and services in the construction or rehabilitation of a farmworker housing project would be exempt from sales and use taxation at the state and local level.
To qualify for the exemption, the new or rehabilitated housing must be: (a) occupied solely by migrant and seasonal farmworkers and (b) include one or more buildings providing housing for migrant or seasonal farmworkers that is occupied less than 12 months in a year.
VII. Farmworker Labor Camp Inspection Program
Establishes a farmworker housing inspection fund in the custody of the State Treasurer. Allows fees collected and appropriations from the Legislature to be used to administer a statewide Labor Camp Inspection program.
Imposes a fee on each operating license issued by the Department of Social and Health Services of $50 on each labor camp containing six or less housing units and a fee of $75 on each labor camp containing more than six housing units. The fee is paid by each operator of a labor camp and includes all necessary inspection of the units to ensure compliance with applicable state Board of Health rules on labor camps.
The Department of Community Development is required to report to the Senate Economic Development and Labor Committee and the House of Representatives Committee on Housing the results of the farmworker housing efforts.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The Department of Community Development is required to: (a) base the award of rehabilitation loans to eligible growers on the need for rehabilitation of the housing unit and not the financial need of the grower; (b) establish flexible terms and conditions for loans to eligible growers; and (c) include provisions that allow for an extension of terms or repayments to address unforeseen circumstances.
The development of separate thermal performance standards (energy code) for seasonally occupied farmworker housing is removed.
Seventy-five thousand dollars is provided to the Department of Community Development to assist in the development of model plans and construction manuals for farmworker housing.
The director of the Department of Community Development is required to report to the Senate Economic Development and Labor committee instead of the Agriculture committee.
CHANGES PROPOSED BY COMMITTEE ON REVENUE: The sales and use tax exemption for construction materials and labor on farmworker low income housing projects was eliminated.
CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS: None.
Appropriation: The sum of $75,000, or as much thereof as may be necessary, is appropriated from the general fund for the biennium ending June 30, 1991, for the purposes of section 11 of this act.
Revenue: This bill has a revenue impact.
Fiscal Note: Available.
Effective Date:The act contains an emergency clause and takes effect immediately.
House Committee ‑ Testified For: (Housing) John Fish, Washington State Board of Health; Mike Ryherd, Washington Low-Income Housing Congress; Kurt Creager, Washington Coalition for Rural Housing; Kay Haynes, Office of Rural and Farmworker Housing; Billie Heath, Rural Community Assistance Corporation; Hector Gonzalez, Washington State Commission on Hispanic Affairs (with concerns).
(Revenue) Mike Rycherd, Low Income Housing Congress.
(Appropriations) None Presented.
House Committee - Testified Against: (Housing) None Presented.
(Revenue) None Presented.
(Appropriations) None Presented.
House Committee - Testimony For: (Housing) The need for housing for farmworkers is great. The potential changes in the agriculture labor force due to the federal Immigration Reform and Control Act, will cause housing to become an important element needed to attract labor to this state to harvest the labor intensive crops. Farmworkers can't find an adequate supply of safe and sanitary housing in areas where the harvest activities take place. This bill will provide needed incentive to encourage the development of this housing. While you can't please all parties with a single bill, this bill is a step in the right direction. The only concern is that if housing is available that growers may use the federal guest workers (H2A) program instead of the available domestic farmworkers.
(Revenue) A sales and use tax exemption of this type creates a precedent for future exemptions.
(Appropriations) None Presented.
House Committee - Testimony Against: (Housing) None Presented.
(Revenue) None Presented.
(Appropriations) None Presented.