AN ACT Relating to rental assistance for single-parent households receiving aid to families with dependent children; amending RCW 67.70.040, 67.70.190, and 67.70.240; adding a new chapter to Title 74 RCW; making an appropriation; providing an effective date; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. This chapter may be cited as the rental housing allowance act.

NEW SECTION. Sec. 2. The legislature finds that the rate of increase for rental costs for housing has increased faster than household income for most households; that this increase in rental housing cost is particularly hard on households on public assistance; that there are over fifty-five thousand households that receive aid to families with dependent children as their sole source of income; that many single-parent households on public assistance need assistance to cover basic shelter costs, but the assistance should maximize individual choice; that the cost of basic accommodation is so high as to cause undue hardship for many single-parent households on public assistance.

The legislature further finds that a program to provide housing assistance to single-parent households on public assistance, by providing a monthly fixed allowance for rent, would protect those households from the erosion of their income from increased housing costs.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Very low-income household" means a person or household whose adjusted income is below fifty percent of the median household income, adjusted annually by the federal department of housing and urban development, for the county or standard metropolitan statistical area in which the household is located.

(2) "Eligible household" means a household or family that at the time it initially receives assistance under the housing allowance program:

(a) Qualifies as a single-parent household, as determined by the department of social and health services;

(b) Qualifies as a very low-income family or household; and

(3) "Department" means the department of community development.

(4) "Director" means the director of community development.

(5) "Dependent child" means dependent child as defined in chapter 74.12 RCW.

(6) "Housing allowance payment" means the monthly payment by the eligible organization to an owner on behalf of a household participating in the housing allowance program.

(7) "Housing allowance contract" means a written contract between an eligible organization and an owner in which the eligible organization agrees to make housing allowance payments to the owner on behalf of an eligible household.

(8) "Lease" means a written agreement between an owner and a household for the leasing of a dwelling unit by the owner to the household with assistance payments under a housing allowance contract between the owner and the eligible organization.

(9) "Owner" means one or more persons, jointly or severally, in whom is vested:

(a) All or any part of the legal title to property; or

(b) All or part of the beneficial ownership, and a right to present use and enjoyment of the property.

(10) "Participant" means a household that is eligible for a housing allowance payment, and the eligible organization has executed a housing allowance contract with the owner for housing allowance payments on behalf of the household.

(11) "Eligible organization" means a public housing authority created under RCW 35.82.030, a not-for-profit corporation as defined in RCW 24.03.005, or an organization that administers rental assistance programs on behalf of a local governing body.

Sec. 4. Section 4, chapter 7, Laws of 1982 2nd ex. sess. as last amended by section 801, chapter 289, Laws of 1988 and RCW 67.70.040 are each amended to read as follows:

The commission shall have the power, and it shall be its duty:

(1) To promulgate such rules governing the establishment and operation of a state lottery as it deems necessary and desirable in order that such a lottery be initiated at the earliest feasible and practicable time, and in order that such lottery produce the maximum amount of net revenues for the state consonant with the dignity of the state and the general welfare of the people. Such rules shall include, but shall not be limited to, the following:

(a) The type of lottery to be conducted which may include the selling of tickets or shares, or the use of electronic or mechanical devices or video terminals which do not require a printed ticket: PROVIDED, That approval of the legislature shall be required before entering any agreement with other state lotteries to conduct shared games;

(b) The price, or prices, of tickets or shares in the lottery;

(d) The manner of selecting the winning tickets or shares;

(e) The manner and time of payment of prizes to the holder of winning tickets or shares which, at the director's option, may be paid in lump sum amounts or installments over a period of years;

(f) The frequency of the drawings or selections of winning tickets or shares, without limitation;

(g) Without limit as to number, the type or types of locations at which tickets or shares may be sold;

(h) The method to be used in selling tickets or shares, which may include the use of electronic or mechanical devices and video terminals;

(i) The licensing of agents to sell or distribute tickets or shares, except that a person under the age of eighteen shall not be licensed as an agent;

(j) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public;

(k) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources among: (i) The payment of prizes to the holders of winning tickets or shares, which shall not be less than forty-five percent of the gross annual revenue from such lottery, less amounts of unclaimed prizes deposited in the ((~~general~~)) Washington housing trust fund under RCW 67.70.190 ((~~during the fiscal year ending June 30, 1989~~)), (ii) transfers to the lottery administrative account created by RCW 67.70.260, and (iii) transfer to the state's general fund. Transfers to the state general fund shall be made in compliance with RCW 43.01.050;

(l) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.

(2) To ensure that in each place authorized to sell lottery tickets or shares, on the back of the ticket or share, and in any advertising or promotion there shall be conspicuously displayed an estimate of the probability of purchasing a winning ticket.

(3) To amend, repeal, or supplement any such rules from time to time as it deems necessary or desirable.

(4) To advise and make recommendations to the director for the operation and administration of the lottery.

Sec. 5. Section 19, chapter 7, Laws of 1982 2nd ex. sess as last amended by section 802, chapter 289, Laws of 1988 and RCW 67.70.190 are each amended to read as follows:

(1) Unclaimed prizes shall be retained in the state lottery account for the person entitled thereto for one hundred eighty days after the drawing in which the prize is won, or after the official end of the game for instant prizes. If no claim is made for the prize within this time, the prize shall be retained in the state lottery ((~~fund for further use as prizes, except~~)) account as provided in subsection (2) of this section, and all rights to the prize shall be extinguished.

(2) ((~~During the fiscal year ending June 30, 1989, moneys from unclaimed prizes shall be used as follows:~~

~~(a) Fifty percent of the moneys, not exceeding one million dollars, shall be deposited quarterly in the general fund.~~

~~(b) The remainder of the moneys shall be retained in the state lottery account for further use as prizes~~)) Moneys retained in the state lottery account under subsection (1) of this section shall be distributed as follows:

(a) Fifty percent of the moneys, not exceeding one million dollars in any fiscal year, shall be deposited quarterly in the Washington housing trust fund under RCW 43.185.030; and

(b) The remainder of the moneys shall be retained in the state lottery account for further use as prizes.

Sec. 6. Section 24, chapter 7, Laws of 1982 2nd ex. sess. as last amended by section 7, chapter 513, Laws of 1987 and RCW 67.70.240 are each amended to read as follows:

The moneys in the state lottery account shall be used only: (1) For the payment of prizes to the holders of winning lottery tickets or shares; (2) for purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260; (3) for purposes of making deposits into the state's general fund; (4) for purposes of making deposits into the housing trust fund under ((~~the provisions of section 7 of this 1987 act~~)) RCW 67.70.190; (5) for the purchase and promotion of lottery games and game-related services; and (6) for the payment of agent compensation.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

NEW SECTION. Sec. 7. Subject to appropriation, the department shall:

(1) Establish a rental housing allowance program. The department may make grants to local governing bodies for the purpose of making housing allowance payments to or on behalf of eligible households under the pilot program established by this chapter.

(2) Select up to eight local governing bodies for the purposes of implementing local pilot programs designed to provide a fixed monthly housing allowance payment to or on behalf of eligible households. In selecting projects under this section, the department shall consider:

(a) The number of eligible households within the jurisdiction of the local governing body;

(b) The availability of suitable housing stock in the jurisdiction of the local governing body for the eligible households the housing allowance program is intended to serve;

(d) Other factors the department deems appropriate.

(3) In selecting the pilot programs under this section, to the extent feasible, provide for a geographic distribution of programs throughout the state.

NEW SECTION. Sec. 8. (1) The department shall administer the pilot program in conjunction with local governing bodies through eligible organizations authorized to administer federal or state housing assistance programs.

(2) The department shall establish:

(a) The maximum total rent for an assisted housing unit, the size of the assisted housing unit, and the amount of the monthly rental allowance payments by household size, taking into account:

(i) Regional variances within the state;

(ii) Expected average annual participant income by household size;

(iii) Typical rental costs; and

(iv) Any other factors relative to income or rental costs.

(b) Minimum standards for eligible housing units.

NEW SECTION. Sec. 9. The department shall award funds to participating local governing bodies, as established under section 7 of this act, for the purpose of administering local housing allowance programs.

NEW SECTION. Sec. 10. (1) The local governing body, through the eligible organization, shall enter into a housing allowance contract with the owner of the housing unit for the purpose of making housing allowance payments on behalf of the program participants.

(2) Prior to the execution of a housing allowance contract, the eligible organization shall inspect the housing unit to ensure compliance with the terms and conditions of the program. The eligible organization shall also review and approve the lease agreement between the eligible household and the owner of the housing unit.

(3) Once the terms and conditions have been met, the eligible organization shall enter into a housing allowance contract with the owner of a housing unit for the purpose of making monthly housing allowance payments on behalf of the participant.

(4) The eligible organization shall make a fixed monthly housing allowance payment to the owner of the housing unit leased by the participant.

(5) The housing allowance contract shall be for the term of the lease, not to exceed twelve months.

(6) Nothing in this chapter shall be construed as creating an entitlement to assistance programs in the absence of appropriations sufficient to fund this program.

NEW SECTION. Sec. 11. The director shall report to the governor and the commerce and labor committee of the senate and the committee on housing of the house of representatives on the results of the housing allowance program by November 1, 1991. The report shall include, but not be limited to, the results of the individual demonstration sites, number of persons assisted, assistance per participant, and recommendations for improvement, continuation, or expansion of the housing allowance program.

NEW SECTION. Sec. 12. The department may adopt rules to implement this chapter.

NEW SECTION. Sec. 13. The department may receive such gifts, grants, and endowments from public and private sources as may be made from time to time, in trust or otherwise, for its programs, including the housing allowance program. Funds from the housing trust fund, chapter 43.185 RCW, not to exceed one million dollars, shall be used for the housing allowance program by the department of community development and eligible organizations, provided all requirements of this chapter and chapter 43.185 RCW are met.

NEW SECTION. Sec. 14. This chapter shall expire on June 30, 1991.

NEW SECTION. Sec. 15. Sections 1 through 3 and 7 through 14 of this act shall constitute a new chapter in Title 74 RCW.

NEW SECTION. Sec. 16. The sum of three million dollars, or as much thereof as may be necessary, is appropriated to the department of community development from the state general fund for the biennium ending June 30, 1991, to carry out the purposes of the housing allowance program.

NEW SECTION. Sec. 17. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 18. This act shall take effect July 1, 1989. The director of community development may take such steps as are necessary to ensure that this act is implemented on its effective date.