AN ACT Relating to the disabilities land trust; amending RCW 43.185.110 and 43.185.070; adding a new section to chapter 43.185 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that Article XIII of the Constitution of the state of Washington requires the state to provide institutional services for persons who are mentally ill, developmentally disabled, or juvenile offenders. The state is now funding community-based services for these citizens.

The legislature also finds that there are hundreds of acres of land dedicated to providing care for these citizens, including three hundred seventy-four acres of the Fort Steilacoom Military Reservation granted to the state by the United States "for the use and purpose of an asylum for the insane and for no other purpose," which may have been lost to the mentally ill in negotiations with Pierce county. Over the years hundreds of acres of additional land have been donated and purchased at public expense for the sole purpose of providing the necessary resources for these citizens.

Therefore, the purposes of this act are:

(1) To implement the intent of the congress and the legislature that the land granted and other lands acquired by the state for mentally ill, developmentally disabled, and juvenile offenders populations be administered in a manner that makes funds available for the support of the programs and facilities designed for them;

(2) To the extent practicable, to eliminate the need for costly, time-consuming and divisive litigation over the state's management of such lands;

(3) To ensure that the attention of the public and the government is focused on mental health and other programs, as contemplated by the congress and not on issues relating to the management of the land;

(4) To validate each deed, contract for sale, lease, easement, right of way, permit, mineral lease disposal, and reservation of land for public use; and

(5) To establish a land trust through identification of these lands, the capital assets, and the fair market rental, lease, or sale value of these lands as the principal of the trust and to require management of the trust in a manner that shall not deplete the trust principal.

NEW SECTION. Sec. 2. A new section is added to chapter 43.185 RCW to read as follows:

(1) By December 15, 1989, the office of financial management shall coordinate the efforts of the department of natural resources, the department of social and health services, and the department of general administration to inventory and record all lands and other capital assets ever acquired or dedicated for the care of blind or deaf or otherwise disabled youth for juvenile offenders, and for persons who are mentally ill or developmentally disabled.

(2) The office of financial management shall contract with an independent consultant to identify strategies for the more aggressive management of these lands and facilities to maximize the funds acquired through the use of these lands.

(3) On July 1, 1990, there is created in the state treasury an account to be known as the disabilities trust principal account. The corpus of the disabilities trust principal account shall be the lands or property acquired by grant, purchase, or donation for the care of persons who are juvenile offenders, mentally ill, or developmentally disabled. Proceeds received from the sale of such lands shall be retained in the account. The corpus of this account shall not be depleted. Surplus cash available in this account is to be invested in the same manner as the common school permanent fund.

(4) The disabilities trust principal account shall be managed as aggressively as possible to preserve the asset base, to provide housing for the developmentally disabled and mentally ill populations, and to maximize income to purchase facilities or residential support.

(5) There is also created in the state treasury an account to be known as the disabilities trust income account. Revenues received from the investment, rental, or lease of trust assets of the disabilities trust principal account are to be transferred to the disabilities trust income account for the purpose of providing housing and residential support for juvenile offenders, the developmentally disabled, and mentally ill.

(6) The disabilities trust income account shall be administered according to chapter 43.185 RCW.

(7) No land or other capital assets described in this section may be sold, given, traded, or encumbered for any period of time beyond June 30, 1991, unless such sale, gift, trade, or encumbrance is specifically authorized by the legislature: PROVIDED, That trust lands acquired by grant at statehood for charitable, educational, penal, and reformatory institutions may be managed for the production of income and preservation or enhancement of asset value, including exchanges where at least equal value is secured to the trust.

Sec. 3. Section 3, chapter 513, Laws of 1987 and RCW 43.185.110 are each amended to read as follows:

(1) The director shall prepare an annual report and shall send copies to the chair of the house of representatives committee on housing, the chair of the senate committee on commerce and labor, and one copy to the staff of each committee that summarizes the housing trust fund's income, grants and operating expenses, implementation of its program, and any problems arising in the administration thereof. The director shall promptly appoint a low-income housing assistance advisory committee composed of a representative from each of the following groups: Apartment owners, realtors, mortgage lending or servicing institutions, private nonprofit housing assistance programs, tenant associations, and public housing assistance programs. The advisory group shall advise the director on housing needs in this state, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter.

(2) The director shall add to the low-income housing assistance advisory committee the following persons who shall serve only when the committee is considering matters regarding or related to the disabilities trust income account:

(a) The secretary of the department of social and health services or the secretary's designee;

(b) A representative from an advocacy or consumer group for the developmentally disabled;

(d) One representative from a class AA county; and

(e) One representative from a class A or smaller county.

Sec. 4. 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;

(i) Projects or services for the disabled shall be consistent with the recommendations of the developmental disabilities planning council; and

(j) Projects for the mentally ill shall be consistent with plans developed by counties or regional residential support networks pursuant to chapter 71.24 RCW as now or hereafter amended.