H-3425              _______________________________________________

                                                   HOUSE BILL NO. 2536

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Phillips, Winsley, Todd, Rector, Nutley, Brekke, Anderson, Leonard, Jacobsen, Basich, Locke, Sprenkle and Prentice

Read first time 1/15/90 and referred to Committee on Housing.

AN ACT Relating to federally assisted housing; adding new sections to chapter 59.28 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1.     Any owner who has a controlling interest in any federally assisted housing development shall not sell or transfer title to the property when such transfer would result in the termination of financial assistance designed to make a rental unit affordable to low-income or moderate-income people, without first providing a notice of intent to sell or transfer title to the department of community development and clerk of the city, or county if in an unincorporated area, in which the property is located, by regular and certified mail.  The notice shall be sent when the owner enters into a contract for the sale or transfer of the property.  The notice shall include a copy of any contract for sale.

NEW SECTION. Sec. 2.     (1) The department of community development shall develop and maintain a register of public housing authorities, nonprofit organizations, and cities and counties that have expressed an interest in bidding on properties.

          (2) The department of community development shall, upon receipt of the notice of intent to sell or transfer title required by section 1 of this act, provide written notification to all parties that have expressed an interest in bidding on properties.

NEW SECTION. Sec. 3.     (1) Any public housing authority, nonprofit organization, or city or county that has expressed an interest in bidding on properties has the right of first refusal to purchase the property.  The interested public housing authority, nonprofit organization, or city or county shall hold the right of first refusal for not more than sixty days from the department of community development's receipt of the notice required in section 1 of this act.  Failure to respond to the notice of right of first refusal in sixty days constitutes a waiver of that right of first refusal by the interested public housing authority, nonprofit organization, or city or county.  By stating in writing its intention to pursue its right of first refusal during the sixty-day period, the interested public housing authority, nonprofit organization, or city or county shall have an additional sixty days, commencing upon the date of the termination of the first right of refusal period, to buy or to produce a buyer for the property.  This additional sixty-day period may be extended by mutual agreement between the interested public housing authority, nonprofit organization, or city or county and the owner of the property.

          (2) Nothing in this section may preclude an owner of a federally assisted housing development from withdrawing the property from the market and revoking the notice required by section 1 of this act at any time before the expiration of the one hundred twenty-day period.  The withdrawal or revocation shall extinguish any right of first refusal held by the interested public housing authority, nonprofit organization, or city or county.

          (3) An interested public housing authority, nonprofit organization, or city or county shall not possess any right of first refusal when a bona fide buyer, by contract with the seller, agrees to maintain the property as low-income housing.  The notice provisions of section 1 of this act shall apply to this subsection.

NEW SECTION. Sec. 4.     This chapter may be known and cited as the federally assisted housing preservation act.

NEW SECTION. Sec. 5.     Sections 1 through 4 of this act are each added to chapter 59.28 RCW.

NEW SECTION. Sec. 6.     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.