AN ACT Relating to prevention of homelessness; amending RCW 43.185.050 and 43.185.070; adding new sections to chapter 43.63A RCW; creating a new section; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that families with children have been rendered homeless or are in imminent danger of becoming homeless as a result of a sudden job loss or other economic adversity.

The legislature further finds that it is more economical and more socially desirable to enable people to retain possession of their houses or apartments and thereby avoid homelessness, than to house them in emergency shelters or in other facilities intended for short-term occupancy.

The legislature declares that a program designed to provide short-term financial assistance to assist with mortgage or rent payments and coordination of available support services is needed to keep people from becoming homeless.

NEW SECTION. Sec. 2. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall develop and administer a homelessness prevention pilot program for the purpose of providing grants and technical assistance to eligible organizations who operate homelessness prevention programs. For purposes of this act, "eligible organizations" are those organizations eligible to receive assistance through the Washington housing trust fund, chapter 43.185 RCW.

(2) The department shall select at least three eligible organizations for purposes of implementing homelessness prevention programs designed to provide interest-free loans of temporary mortgage or rental assistance on behalf of families with children in imminent danger of losing housing as a result of having insufficient income to pay mortgage or rental costs. Technical assistance to eligible organizations shall be provided to help recipient eligible organizations develop and implement local strategies to prevent homelessness. In selecting pilot programs under this act, the department shall consider:

(a) The eligible organization's ability, stability, and resources to implement the local homelessness prevention program;

(b) The eligible organization's efforts to coordinate other support programs for the family, such as job search or job retraining programs; and

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

(4) The recipient eligible organization shall establish priorities of eligibility for temporary mortgage or rental assistance to assist families with children in retaining housing. The recipient eligible organization shall make a determination of eligibility regarding the family's eligibility to participate in the local homelessness prevention program. A determination shall include, but is not limited to:

(a) A determination that the family is subject to immediate eviction for foreclosure of nonpayment of mortgage installments or nonpayment of rent, when nonpayment is attributable to illness, unemployment, underemployment, or any other failure of resources beyond the person's control;

(b) A verification of the loss of income; and

(c) A determination that the family does not have the financial resources to make the required mortgage installment or rental payment.

(5) No family shall continue to receive temporary mortgage or rental assistance under this act if alternative sources of mortgage or rental assistance under federal, state, or local sources becomes available.

NEW SECTION. Sec. 3. A new section is added to chapter 43.63A RCW to read as follows:

The department shall adopt rules to implement section 2 of this act, including but not limited to:

(1) The maximum length of assistance available through section 2 of this act;

(2) The eligibility of and application process for eligible organizations;

(3) The criteria by which grants and technical assistance shall be provided to eligible organizations; and

(4) The criteria eligible organizations shall use when entering into contracts with families to make mortgage or rental assistance payments on their behalf.

Sec. 4. Section 6, chapter 298, Laws of 1986 and RCW 43.185.050 are each amended to read as follows:

(1) The department shall use funds from the housing trust fund to finance in whole or in part any loans or grant projects that will provide housing for persons and families with special housing needs and with incomes at or below fifty percent of the median family income for the county or standard metropolitan statistical area where the project is located. Not less than thirty percent of such funds used in any given biennium shall be for the benefit of projects located in rural areas as defined in 63 Stat. 432, 42 U.S.C. Sec. 1471 et seq.

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

(a) New construction, rehabilitation, or acquisition of low and very low-income housing units;

(b) Rent subsidies in new construction or rehabilitated multifamily units;

(c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;

(d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;

(e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;

(f) Shelters and related services for the homeless;

(g) Mortgage subsidies for new construction or rehabilitation of eligible multifamily units;

(h) Mortgage insurance guarantee or payments for eligible projects; ((~~and~~))

(i) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing; and

(j) Grants and technical assistance to local governments under the homelessness prevention pilot program established under sections 2 and 3 of this act.

Sec. 5. Section 8, chapter 298, Laws of 1986 as amended by section 1, chapter 286, Laws of 1988 and RCW 43.185.070 are each amended to read as follows:

(1) During each calendar year in which funds are available for use by the department from the housing trust fund, as prescribed in RCW 43.185.030, the department shall announce to all known interested parties, and through major media throughout the state, a grant and loan application period of at least ninety days' duration. This announcement shall be made as often as the director deems appropriate for proper utilization of resources, but at least twice annually. The department shall then promptly grant as many applications as will utilize available funds less appropriate administrative costs of the department, not to exceed thirty-seven thousand five hundred dollars in the fiscal year ending June 30, 1988, and seventy-five thousand dollars in the fiscal year ending June 30, 1989, and not to exceed five percent of annual revenues to the fund thereafter.

(2) The department shall give first priority to applications for projects and activities which utilize existing privately owned housing stock including privately owned housing stock purchased by nonprofit public development authorities. Such projects and activities shall be evaluated under subsection (3) of this section. Second priority shall be given to activities and projects which utilize existing publicly owned housing stock. Such projects and activities shall be evaluated under subsection (3) of this section.

(3) The department shall give preference for applications based on the following criteria:

(a) The degree of leveraging of other funds that will occur;

(b) Recipient contributions to total project costs, including allied contributions from other sources such as professional, craft and trade services, and lender interest rate subsidies;

(d) Projects that encourage ownership, management, and other project-related responsibility opportunities;

(e) Projects that demonstrate a strong probability of serving the original target group or income level for a period of at least fifteen years;

(f) The applicant has the demonstrated ability, stability and resources to implement the project;

(g) Projects which demonstrate serving the greatest need; and

(h) Projects that provide housing for persons and families with the lowest incomes.

(4) Applicants that request assistance through the homelessness pilot prevention program established under sections 2 and 3 of this act shall not be required to meet the criteria under subsection (3) (a) and (e) of this section.

NEW SECTION. Sec. 6. The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of community development for the purposes of the homelessness prevention pilot program under sections 2 and 3 of this act.

NEW SECTION. Sec. 7. 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.