HOUSE BILL REPORT

HB 2659

BYRepresentatives Nutley, Doty, Anderson, Locke, Ebersole, Leonard, Rector and Wineberry

Changing the definition of housing under the Washington state housing finance commission.

House Committe on Housing

Majority Report:  Do pass.  (7)

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

Minority Report:  Do not pass.  (2)

      Signed by Representatives Ballard and Padden.

House Staff:Kenny Pittman (786-7392)

Rereferred House Committee on Capital Facilities & Financing

Majority Report:  Do pass.  (12)

      Signed by Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Schoon, Ranking Republican Member; Beck, Betrozoff, Bowman, Heavey, Jacobsen, Peery, Rector, Wang and Winsley.

House Staff:      Susan Nakagawa (786-7145)

AS REPORTED BY COMMITTEE ON CAPITAL FACILITIES & FINANCING

FEBRUARY 6, 1990

BACKGROUND:

The Washington State Housing Finance Commission was created by the Legislature in 1983.  The two broad public purposes for the creation of the commission were:  (1) to act as a financial conduit that can issue non-recourse revenue bonds thereby making additional funds available at affordable rates to provide housing throughout the state; and (2) to encourage the use of Washington state forest products in residential construction.

The Legislature authorized the commission to provide financing to assist in the development of single family and multifamily residential housing within the state.  However, the present definition of housing does not include nursing homes.

SUMMARY:

Licensed nursing homes are defined as housing and are eligible for financing through the Washington State Housing Finance Commission.

CHANGES PROPOSED BY COMMITTEE ON CAPITAL FACILITIES & FINANCING:  None.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    (Housing)  Kim Herman and Skip Chilberg, Washington State Housing Finance Commission; Karen Tynes, Washington Association of Homes for the Aging; Derril Meyer, Crista Senior Ministries; and Rick Milsou, The Hearthstone.

(Capital Facilities & Financing)  Kim Hermann, Housing Finance Commission.

House Committee - Testified Against:      (Housing)  No one.

(Capital Facilities & Financing)  No one.

House Committee - Testimony For:    (Housing)  The statewide housing needs study identified the frail elderly as a growing population.  The vast majority of this population living in nursing homes are low income.  The tax exempt financing would make lower cost financing to nonprofit organizations providing nursing home care.  Existing nursing homes are older facilities and in need of repair.  The initial use of the financing would be to rehabilitate existing nursing home facilities.

(Capital Facilities & Financing)  This bill is necessary to permit the Housing Finance Commission to finance nursing homes.  The commission is already financing congregate care and senior facilities; nursing homes are a natural extension.  Currently, there is a large amount of unmet need that the Housing Finance Commission can address.

House Committee - Testimony Against:      (Housing)  None.

(Capital Facilities & Financing)  None.