SENATE BILL REPORT

SHB 2446

BYHouse Committee on Housing (originally sponsored by Representatives Winsley, Padden, Nutley and Wolfe)

Changing provisions relating to public housing authorities.

House Committe on Housing

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 16, 1990; February 21, 1990

Majority Report:  Do pass.

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

Senate Staff:Jack Brummel (786-7428)

                  February 21, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 21, 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 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 federal, state, or local housing programs.

Housing authorities are authorized to lease, rent, own, or manage buildings containing a housing project as well as provide financial assistance to profit motivated developers or property owners to develop 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 is 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:

The requirement that the rents on the units cannot exceed 15 percent of the area median income is not applicable when tenants receive federal, state, or local rent subsidies which make the unit affordable to persons of low income.

The state's housing cooperation law is amended to include the state as a public body which may cooperate with housing authorities.  Public bodies are permitted to grant property in addition to dedicating, selling, conveying, or leasing it to a public housing authority for the purpose of developing housing for persons of low income.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Mike Sivia, Association of Washington Housing Authorities