H-3319              _______________________________________________

                                                   HOUSE BILL NO. 2436

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Nutley, Winsley, Leonard, Wood and May

Read first time 1/12/90 and referred to Committee on Housing.

AN ACT Relating to the Washington housing trust fund; and amending RCW 43.185.070.

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

        Sec. 1.  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 and public housing authorities as created in RCW 35.82.030.  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) Projects that request loan assistance through the Washington housing trust fund as created in RCW 43.185.030;

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

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

          (((c))) (d) Local government project contributions in the form of infrastructure improvements, and others;

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

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

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

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

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

(4) Applicants that request assistance through the rental security deposit guarantee program, under chapter 59.24 RCW or the low-income homeowner's stabilization act under chapter .... (House Bill No. ....), Laws of 1990, shall not be required to meet the criteria under subsection (3) (b) and (f) of this section.