SENATE BILL REPORT

HB 1618

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

Senate Hearing Date(s):March 30, 1989; March 31, 1989

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Matson, Murray, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Jack Brummel (786-7428)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 31, 1989

BACKGROUND:

The housing authorities law of 1939 created public housing authorities in each city and county of the state.  The state law also established the purposes and powers of public housing authorities.  The main duty of a public housing authority is to provide safe and sanitary housing for persons of low-income. This is accomplished through the administration of various federal, state, or local housing programs.

Under present statutes, public housing authorities are authorized to lease, rent, own or manage buildings containing a housing project.  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.

The selling of real or personal property owned by public housing authorities is guided by state law.  The property owned by public housing authorities must be sold at fair market value.

State law allows public housing authorities to make loans to construct or improve housing to property owners.  In exchange for the financial assistance the property owners must agree to rent the property to persons of low-income.  The use of public housing authority funds for this purpose is not authorized unless: (a) additional financial assistance is provided through the federal, state, or local government; or (b) at least 25 percent interest in the completed building or development or at least 25 percent of the housing units are owned by the public housing authority.  The dwelling units must be made available to persons of low-income for at least 10 years.

Under present statutes, public housing authorities are not expressly authorized to use the small works roster process to award public works contracts for construction, repair, or alteration projects.

SUMMARY:

Mobile home parks are included in the definition of "housing project" as housing that can be developed by a public housing authority.

Housing projects that contain single family or duplex residential buildings are exempt from the requirement that at least 30 percent of the interior space of any individual building be used for persons of low-income.  The requirement that at least 50 percent of the interior space in the total project be used for persons of low-income is retained.

Public housing authorities are authorized to sell property at less than fair market value:  (a) to a governmental body to assist the public housing authority in carrying out its powers and purposes; (b) to persons of low-income to provide housing for that person; or (c) to a nonprofit corporation that agrees to use the property to provide housing for persons of low-income for at least 20 years.

Property owners who receive assistance from the public housing authority to provide housing for persons of low-income must use the property for 20 years rather than 10 years under current law.

For projects not owned by a nonprofit corporation, the dwelling units: (a) cannot be rented to persons with incomes greater than 50 percent of median income; (b) rents cannot exceed 15 percent of the area median income; (c) 30 percent of the interior space of any individual building, other than a detached single family or duplex residential building, or 50 percent of the interior space of the total project must be rented to persons of low-income; and (d) a written finding is required that the financing is necessary for the project to proceed.

Procedures are authorized and established for public housing authorities to award construction repair or alteration projects, estimated to cost less than $40,000, through the small works roster process.

Guidelines are adopted to be used in the qualification of contractors for inclusion on the public housing authority's small works roster.  The use of minority or women contractors or contractors that employ or commit to employ residents of housing owned or managed by the public housing authority is encouraged.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Representative Busse Nutley