AN ACT Relating to drug prevention activities in assisted housing; amending RCW 43.180.070; adding a new section to chapter 43.180 RCW; adding a new section to chapter 43.185 RCW; and adding a new section to chapter 43.63A RCW.

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

Sec. 1. Section 7, chapter 161, Laws of 1983 and RCW 43.180.070 are each amended to read as follows:

The commission shall adopt a general plan of housing finance objectives to be implemented by the commission during the period of the plan. The commission shall adopt a plan no later than December 15, ((~~1983~~)) 1990. The commission may exercise the powers authorized under this chapter prior to the adoption of the initial plan. In developing the plan, the commission shall consider and set objectives for:

(1) The use of funds for single-family and multifamily housing;

(2) The use of funds for new construction, rehabilitation, including refinancing of existing debt, and home purchases;

(3) The housing needs of low-income and moderate-income persons and families, and of elderly or mentally or physically handicapped persons;

(4) The use of funds in coordination with federal, state, and local housing programs for low-income persons;

(5) The use of funds in urban, rural, suburban, and special areas of the state;

(6) The use of financing assistance to stabilize and upgrade declining urban neighborhoods;

(7) The use of financing assistance for economically depressed areas, areas of minority concentration, reservations, and in mortgage-deficient areas;

(8) The geographical distribution of bond proceeds so that the benefits of the housing programs provided under this chapter will be available to address demand on a fair basis throughout the state;

(9) The use of financing assistance for implementation of cost-effective energy efficiency measures in dwellings; and

(10) The existence of a drug prevention plan for each multifamily housing project financed in whole or in part through the commission.

The plan shall include an estimate of the amount of bonds the commission will issue during the term of the plan and how bond proceeds will be expended.

The plan shall be adopted by resolution of the commission following at least one public hearing thereon, notice of which shall be made by mailing to the clerk of the governing body of each county and by publication in the Washington State Register no more than forty and no less than twenty days prior to the hearing. A draft of the plan shall be made available not less than thirty days prior to any such public hearing. At least every two years, the commission shall report to the legislature regarding implementation of the plan.

Prior to December 31, ((~~1983~~)) 1990, the commission shall submit the plan to the chief clerk of the house and secretary of the senate for transmittal to and review by the appropriate standing committees. The commission may periodically update the plan. Proposed changes of the plan shall be submitted to the chief clerk of the house and secretary of the senate for transmittal to and review by the appropriate standing committees. This submittal of proposed changes shall occur at least fourteen days before final adoption of the changes by the commission.

The commission shall adopt rules designed to result in the use of bond proceeds in a manner consistent with the plan. These rules shall be adopted and in full force and effect by February 1, ((~~1984~~)) 1991. The commission may periodically update its rules.

The commission is not required to adopt a plan or rules for the use of the proceeds of bonds issued prior to February, 1984. This section is designed to deal only with the use of bond proceeds and nothing in this section shall be construed as a limitation on the commission's authority to issue bonds.

NEW SECTION. Sec. 2. A new section is added to chapter 43.180 RCW to read as follows:

(1) The commission shall include a provision in its regulatory agreement that requires owners of the multifamily housing project, financed in whole or in part through the commission, to develop a drug prevention plan.

(2) The commission shall develop a model drug prevention plan to be used by multifamily applicants requesting assistance through the commission.

(3) The drug prevention plan shall include activities to be undertaken by the owner to aid in the prevention and control of illegal drug activities at multifamily housing developments. The elements of the drug prevention plan shall include but not be limited to: Tenant screening for prior drug-related problems in accordance with federal and state laws; on-site property management; and distribution of anti-drug education materials.

(4) The commission shall notify the mortgage lender, the mortgage insurer, and such other parties as determined necessary by the commission when the owner of a multifamily housing project that received financing through the commission fails to make a good faith effort to maintain a drug-free environment as outlined in the drug prevention plan required in subsection (1) of this section.

(5) The commission and department of community development shall develop an agreement to approve a revised drug prevention plan for assisted housing developments that receive financial assistance through the commission and the housing trust fund created under chapter 43.185 RCW.

NEW SECTION. Sec. 3. A new section is added to chapter 43.185 RCW to read as follows:

(1) In addition to the priorities and criteria for evaluating applications for assistance prescribed in RCW 43.185.070, the department shall consider drug prevention plans of eligible organizations that request loan or grant assistance.

(2) The department shall include provisions in its contracts to eligible organizations that provide penalties against eligible organizations that fail to make a good faith effort to maintain a drug-free environment in projects financed in whole or in part through the Washington housing trust fund, as created in RCW 43.185.030.

NEW SECTION. Sec. 4. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall develop a model drug prevention plan to be used by applicants requesting assistance through the Washington housing trust fund under chapter 43.185 RCW.

(2) The drug prevention plan shall include activities to be undertaken by the applicant to aid in the prevention and control of illegal drug activities at housing developments. The elements of the drug prevention plan shall include but are not limited to: Tenant screening for prior drug-related problems in accordance with federal and state laws; on-site property management; and distribution of anti-drug educational materials. (3) The department and the Washington state housing finance commission shall develop an agreement to approve a revised drug prevention plan for assisted housing developments that receive financial assistance through the housing trust fund created under chapter 43.185 RCW and the Washington state housing finance commission created under chapter 43.180 RCW.