HOUSE BILL REPORT

HB 2446

BYRepresentatives Winsley, Padden, Nutley and Wolfe

Changing provisions relating to public housing authorities.

House Committe on Housing

Majority Report:  The substitute be substituted therefor and the substitute bill do pass.  (8)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Winsley, Ranking Republican Member; Anderson, Inslee, Padden, Rector and Todd.

House Staff:Kenny Pittman (786-7392)

AS REPORTED BY COMMITTEE ON HOUSING JANUARY 19, 1990

BACKGROUND:

The state's Housing Authority 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 is defined as a person or family who lacks the resources to enable them to live in decent, safe and sanitary dwellings.  The housing for persons of low-income is provided through the administration of federal, state, or local housing programs.

Housing authorities can provide financial assistance to profit motivated developers or property owners in the development of housing for persons of low-income.  One condition of providing financial assistance to profit motivated developers or property owners is that the rents on the units cannot exceed 15 percent of the area median income, based on household size. The purpose of this requirement was to keep the "rents" affordable to persons of low-income.

The cap on the maximum rent for the unit does not take into consideration tenants that received rental subsidies.  These subsidies make the unit affordable by paying the difference between the tenant's contribution and the actual rent.

SUMMARY:

SUBSTITUTE BILL:  The requirement that the rents on the units cannot exceed 15 percent of the area median income does not apply to tenants that receive federal, state, or local rent subsidies that make the unit affordable to persons of low-income.

The state's Housing Cooperation Law is amended to allow the state of Washington to dedicate, sell, grant, convey, or lease its property to a public housing authority for the purpose of developing housing for persons of low-income.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The state of Washington is added to cities, counties, towns, municipal corporations, commissions, districts, authorities, and other subdivisions or public bodies of the state that can dedicate, sell, grant, convey, or lease its property to a public housing authority for the purpose of developing housing for persons of low-income.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Mike Sivia, Seattle Housing Authority and the Association of Washington Housing Authorities.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The new language would clarify the intent of last years changes to the law.  The rent limits would still apply to tenants that do not have a rent subsidy to make the unit affordable.  The rent paid by tenants that receive a rent subsidy would be based on the program guidelines that provided the rent subsidy.

House Committee - Testimony Against:      None.