AN ACT Relating to farmworker housing; amending RCW 43.185.060; adding a new chapter to Title 70 RCW; adding a new section to chapter 36.34 RCW; adding new sections to chapter 70.54 RCW; repealing RCW 70.54.110; making an appropriation; and declaring an emergency.

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

NEW SECTION. Sec. 1. This chapter may be known and cited as the farmworker housing act.

NEW SECTION. Sec. 2. The legislature finds that housing for migrant and seasonal farmworkers is inadequate in terms of number of available units; that migrant and seasonal farmworker income is inadequate to afford participation in the private rental market or improve their housing; that affordable housing for migrant and seasonal farmworkers is a scarce and diminishing resource; that increasing numbers of these housing units are in deteriorated condition because they cannot be economically maintained and repaired; that the provision of an adequate supply of safe and sanitary housing for migrant and seasonal farmworkers is the joint responsibility of all levels of government and the agricultural community; and that the absence of sufficient state support for migrant and seasonal farmworker housing has resulted in lost opportunities to secure federal funds for farmworker housing in this state.

The legislature further finds that the supply of safe and sanitary housing for migrant and seasonal farmworkers would increase if the state took a leadership role in the development and rehabilitation of farmworker housing; that the state should work in partnership with the other levels of government and the agricultural community to develop innovative funding sources for the development and rehabilitation of farmworker housing; that it is an essential public and government purpose to increase the availability and preservation of housing for migrant and seasonal farmworkers; and that it is the intent of the legislature to aid, through grants, loans, and technical assistance to any eligible organization or individual in the state, in providing shelter and related facilities to migrant and seasonal farmworkers.

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

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

(2) "Director" means the director of the department of community development.

(3) "Eligible grower" means a farm owner, family farm partnership, family farm corporation, or an association of farmers.

(4) "Farmworker housing center" means a facility that, in addition to housing, may provide facilities for day care, infant care, and access to a variety of other social, employment, cultural, and recreational programs for migrant or seasonal farmworkers that occupy the housing.

(5) "Grower-provided housing" means housing provided or rented by an eligible grower to low-income farmworkers.

(6) "Local governing body" means a city, town, county, or any combination as coapplicants.

(7) "Low-income farmworker" means a farmworker household whose annual income is below fifty percent of median income, adjusted annually by the United States department of housing and urban development, for the county or standard metropolitan statistical area where the farmworker housing is located.

(8) "Migrant farmworker" means a seasonal farmworker employed within a specific locality other than place of residence and who does not reside within normal commuting distance of place of employment.

(9) "Nonprofit organization" means a public housing authority created under RCW 35.82.030, a public nonprofit corporation created by a local governing body, or a nonprofit corporation as defined in RCW 24.03.005 and as further defined by the department by rule.

(10) "Rehabilitation" means repairs or improvements to a dwelling unit necessary to make it a decent, safe, and sanitary dwelling which meets applicable state and local building and housing standards.

(11) "Seasonal farmworker" means a worker hired for work on any one farm for less than a continuous one hundred fifty-day period in the course of a year.

NEW SECTION. Sec. 4. The department may make grants to local governing bodies, public nonprofit organizations, and private nonprofit organizations to assist in the development of housing that is affordable for low-income farmworkers and their families. Grants may be made for the following:

(1) Technical assistance, design and finance services and consultation, and administrative costs related to a specific project.

(2) Administrative costs, when such grant will substantially increase the recipient's access to housing funds other than those available under this chapter.

NEW SECTION. Sec. 5. (1) The department may make loans or grants or both to local governing bodies or public nonprofit organizations.

(2) Loans or grants to local governing bodies or public nonprofit organizations provided under this section shall be used to finance projects that will provide housing that is affordable for low-income farmworkers and their families.

(3) The local governing body or public nonprofit organization requesting assistance under this section is required to demonstrate to the department that:

(a) The applicant's existing resources are inadequate to finance, in whole or in part, the construction, rehabilitation, or acquisition of the project;

(b) Without funding through the department, the project would not be feasible; and

(4) Activities eligible for assistance include, but are not limited to:

(a) New construction, rehabilitation, or acquisition and rehabilitation of housing occupied solely by low-income farmworkers and their families.

(b) Construction of farmworker housing centers.

(c) Construction of alternative housing options for low-income farmworkers, such as campsites and recreational vehicle parks.

(5) The department shall set the terms and conditions for loans or grants made under this section.

(6) Grants made by the department under this section shall:

(a) Not exceed fifty percent of the amount necessary for project cost.

(b) Not be used for project organization or planning.

(c) Require the grantee to enter into an agreement with the department that requires the housing constructed, rehabilitated, or acquired with the grant be occupied, utilized, maintained, and operated for purposes consistent with this chapter for as long as the housing is needed by migrant or seasonal farmworkers.

(d) Require the grantee to make all units constructed, rehabilitated, or acquired under this section to be available to all eligible farmworkers.

(7) Loans made by the department under this section shall:

(a) Not exceed eighty percent of the amount necessary for project cost.

(b) Not be used for project organization or planning.

(c) Not exceed the equivalent bond yield of the effective ninety-day treasury bill discount rate of the preceding Monday of said month or the first day of said month in the event it falls on a Monday.

(d) Require the recipient to enter into an agreement with the department that requires all units constructed, rehabilitated, or acquired with the loan be occupied, utilized, maintained, and operated for as long as the housing is needed by migrant or seasonal farmworkers.

(e) Require the recipient to make all units constructed, rehabilitated, or acquired under this section to be available to all eligible farmworkers.

NEW SECTION. Sec. 6. (1) The department may make loans or grants or both to private nonprofit organizations.

(2) Loans or grants to private nonprofit organizations provided under this section shall be used to finance projects that will provide housing that is affordable for low-income farmworkers and their families.

(3) The private nonprofit organization requesting assistance under this section is required to demonstrate to the department that:

(a) The applicant's existing resources are inadequate to finance, in whole or in part, the construction, rehabilitation, or acquisition of the project;

(b) Without funding through the department, the project would not be feasible; and

(4) Activities eligible for assistance include, but are not limited to:

(a) New construction, rehabilitation, or acquisition and rehabilitation of housing occupied solely by low-income farmworkers and their families.

(b) Construction of farmworker housing centers.

(c) Construction of alternative housing options for low-income farmworkers, such as campsites and recreational vehicle parks.

(5) The department shall set the terms and conditions for loans or grants made under this section.

(6) Grants made by the department under this section shall:

(a) Not exceed fifty percent of the amount necessary for project cost.

(b) Not be used for project organization or planning.

(d) Require the grantee to make all units constructed, rehabilitated, or acquired under this section to be available to all eligible farmworkers.

(7) Loans made by the department under this section shall:

(a) Not exceed eighty percent of the amount necessary for project cost.

(b) Not be used for project organization or planning.

(d) Require the recipient to enter into an agreement with the department that requires the housing constructed, rehabilitated, or acquired with the loan be occupied, utilized, maintained, and operated for as long as the housing is needed by migrant and seasonal farmworkers.

(e) Require the recipient to make all units constructed, rehabilitated, or acquired under this section to be available to all eligible farmworkers.

NEW SECTION. Sec. 7. (1) The department may make loans to eligible growers.

(2) Loans made to eligible growers provided under this section shall be used solely for the rehabilitation of grower-provided housing that is affordable for low-income farmworkers and their families.

(3) The eligible growers requesting assistance under this section are required to demonstrate to the department that a need exists for the rehabilitation of the project.

(4) The department shall set flexible terms and conditions for loans made under this section.

(5) Loans made by the department under this section shall:

(a) Require the department to consult with the local governing body where the housing to be rehabilitated is located.

(b) Not exceed eighty percent of the amount necessary to rehabilitate the housing.

(d) Require the department to include provisions in the loan documents that could provide either an extension of the terms or a deferral of interest or principal payments, or both.

(e) Require the recipient of the loan to enter into an agreement with the department that requires the housing rehabilitated with the loan be occupied, utilized, maintained, and operated as housing that is affordable for low-income farmworkers for at least the term of the loan.

NEW SECTION. Sec. 8. All housing constructed, rehabilitated, or acquired and rehabilitated under sections 5 through 7 of this act shall be inspected and licensed and comply with applicable federal, state, and local health and safety rules for temporary labor housing.

NEW SECTION. Sec. 9. The department may make grants to local governing bodies, public nonprofit organizations, or private nonprofit organizations to provide operating cost subsidies for farmworker housing centers and farmworker housing. Grants made by the department under this section shall:

(1) Be the minimum amount necessary to ensure that the rents charged are affordable to low-income farmworkers and their families;

(2) Not be used for operating expenses not associated with the farmworker housing center or housing occupied by low-income farmworkers; and

(3) Require the recipient of the operating subsidy to enter into an agreement with the department that requires the housing be occupied, utilized, maintained, and operated solely for low-income farmworkers during the term of the subsidy.

NEW SECTION. Sec. 10. (1) The department shall accept applications for assistance, to the extent that money is available, and may make awards on a quarterly basis.

(2) The department shall give first priority to applicants that request funding for projects that increase the supply of housing that is available to all migrant or seasonal farmworkers. Such projects and activities shall be evaluated under subsection (3) of this section.

(3) The department, in awarding funds under this chapter, shall give preference to applications based on, but not limited to, the following factors:

(a) The degree of leveraging of other funds that will occur, including land donations, in-kind contributions, or infrastructure improvements;

(b) Projects that provide housing opportunities and related facilities for, but not limited to child care, health care, and access to a variety of other social, educational, employment, cultural, and recreational programs for migrant and seasonal farmworkers that occupy the housing; and

NEW SECTION. Sec. 11. The department shall develop, and make available to the public, model or prototype construction plans and manuals for several types of farmworker housing, including, but not limited to seasonal housing for individuals and families, campgrounds, and recreational vehicle parks. Any person or organization intending to construct farmworker housing may adopt one or more of these models as the plans for the proposed housing.

NEW SECTION. Sec. 12. The department may:

(1) Adopt, and amend from time to time, in accordance with the administrative procedure act, rules governing all aspects of the operation of the program, including, but not limited to, criteria to determine need of the applicant requesting assistance under this chapter: PROVIDED, That loans made to eligible growers under section 7 of this act shall not be based on the financial need of the applicant.

(2) Contract for services related to any aspect of the operation of the program in accordance with the procedures required under chapter 39.29 RCW.

(3) Require and obtain appraisals, credit information, and other information related to making loans.

(4) Develop guidelines that will allow the housing constructed, rehabilitated, or acquired under this chapter to be used for emergency, short-term occupancy.

NEW SECTION. Sec. 13. The director shall monitor the activities of recipients of grants and loans under this chapter to determine compliance with the terms and conditions set forth in its application or stated by the department in connection with the grant or loan.

NEW SECTION. Sec. 14. The department may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of this chapter and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments. Funds from the housing trust fund, chapter 43.185 RCW, may be used for the construction, rehabilitation, or acquisition and rehabilitation of housing for farmworkers by local governments, nonprofit organizations, and eligible growers provided all the requirements of chapter 43.185 RCW are met.

NEW SECTION. Sec. 15. All principal and interest payments received on loans made under sections 5 through 7 of this act shall be deposited in the Washington housing trust fund as created by RCW 43.185.030. The moneys deposited into the Washington housing trust fund from loan repayments may be spent only for the purposes of this act.

NEW SECTION. Sec. 16. The department shall work with the departments of natural resources, transportation, and general administration to identify and catalog under-utilized state-owned land and property for possible lease. The departments shall provide an inventory of real property that is owned or administered by each agency, respectively, and that is available for lease. The inventories shall be provided to the department by November 1, 1989, with inventory revisions provided each November 1 thereafter. The department shall assist local governments, public housing authorities, public nonprofit organizations, and private nonprofit organizations in obtaining long-term leases of suitable and available sites. The leases shall be for the purposes of this chapter.

NEW SECTION. Sec. 17. The director shall report to the senate committee on economic development and labor and the house of representatives committee on housing on the progress and status of the programs authorized in this chapter. Such report shall include, but need not be limited to, the results of the individual projects funded, number of persons served, and recommendations for improvement of the programs authorized in this chapter.

NEW SECTION. Sec. 18. A new section is added to chapter 36.34 RCW to read as follows:

The legislative authority of any county owning property, in or outside the limits of any city or town, or anywhere within the county, which is suitable for seasonal or migrant farmworker housing, may by negotiation lease the property for seasonal or migrant farmworker housing for a term not to exceed seventy-five years to any public housing authority or nonprofit organization that has demonstrated its ability to construct or operate housing for seasonal or migrant farmworkers. Leases for housing for migrant and seasonal farmworkers shall not be subject to any requirement of periodic rental adjustments, as provided in RCW 36.34.180, but shall provide for fixed annual rents as shall appear reasonable, considering the public, social, and health benefits to be derived by providing an adequate supply of safe and sanitary housing for migrant and seasonal farmworkers.

Sec. 19. Section 7, chapter 298, Laws of 1986 and RCW 43.185.060 are each amended to read as follows:

(1) Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, nonprofit community or neighborhood-based organizations, and regional or state-wide nonprofit housing assistance organizations.

(2) Eligible growers may receive assistance from the department under section 7 of this act. For purposes of this subsection, "eligible growers" means a farm owner, family farm partnership, family farm corporation, or an association of farmers.

NEW SECTION. Sec. 20. A new section is added to chapter 70.54 RCW to read as follows:

(1) The farmworker housing inspection fund is established in the custody of the state treasury. The department of social and health services shall deposit all funds received under subsection (2) of this section and from the legislature to administer a labor camp inspection program conducted by the state board of health. Disbursement from the fund shall be on authorization of the secretary of social and health services or the secretary's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

(2) There is imposed a fee on each operating license issued by the department of social and health services to every operator of a labor camp that is regulated by the state board of health. The fee paid under this subsection shall include all necessary inspection of the units to ensure compliance with applicable state board of health rules on labor camps.

(a) Fifty dollars shall be charged for each labor camp containing six or less units.

(b) Seventy-five dollars shall be charged for each labor camp containing more than six units.

(3) The term of the operating license, and the application procedures shall be established, by rule, by the department of social and health services.

NEW SECTION. Sec. 21. A new section is added to chapter 70.54 RCW to read as follows:

New housing and new construction, together with the appurtenant land, which is to be provided by employers, growers, management, or any other persons for occupancy by farmworkers and their dependents, shall comply with state board of health labor camp rules. Housing and construction in existence prior to May 3, 1969, is exempt from the requirements of this section.

NEW SECTION. Sec. 22. The sum of seventy-five thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund for the biennium ending June 30, 1991, for the purposes of section 11 of this act.

NEW SECTION. Sec. 23. Section 1, chapter 231, Laws of 1969 ex. sess. and RCW 70.54.110 are each repealed.

NEW SECTION. Sec. 24. If any part of this act is found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and such finding or determination shall not affect the operation of the remainder of this act in its application to the agencies concerned. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds.

NEW SECTION. Sec. 25. 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. 26. Sections 1 through 17 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 27. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.