HOUSE BILL REPORT

                 ESHB 1519

                       As Passed House

                       March 10, 1993

Title:  An act relating to housing affordability and regulatory reform.

Brief Description:  Creating an office of housing affordability and regulatory reform.

Sponsors:  By House Committee on Trade, Economic Development & Housing (originally sponsored by Representative Ballard.)

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, February 22, 1993, DPS;

Appropriations, March 5, 1993, DPS(TEH-A APP);

  Passed House, March 10, 1993, 97-0.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Schoesler; Sheldon; Springer; Valle; and Wood.

Staff:  Kenny Pittman (786-7392).

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  The substitute bill by Committee on Trade, Economic Development & Housing be substituted therefor and the substitute bill as amended by Committee on Appropriations do pass.  Signed by 22 members:  Representatives Locke, Chair; Valle, Vice Chair; Silver, Ranking Minority Member; Carlson, Assistant Ranking Minority Member; Appelwick; Basich; Cooke; Dellwo; Dorn; Dunshee; Jacobsen; Leonard; Linville; Morton; Rust; Sehlin; Sheahan; Sommers; Talcott; Wang; Wineberry; and Wolfe.

Staff:  Nancy Stevenson (786-7137).

Background:  Housing affordability is a major problem for many residents in the state of Washington.  One area that has received increased attention is the impact of regulations on the cost of housing.  Proponents feel that excessive, exclusionary, and unnecessary regulations increase the housing costs and restrict the supply of housing affordable housing.

Congress, in response to the issue of housing costs and regulations, passed Title XII - Removal of Regulatory Barriers to Affordable Housing Act, as part of the Housing and Community Development Act of 1992.  The act provides grants to states and local governments to identify and remove regulatory barriers that increase housing costs and limit the supply of affordable housing.  The federal funds would be used to cover the costs of developing and implementing state and local strategies to remove regulatory barriers to affordable housing.

Summary of Bill:  The Department of Community Development (DCD) is directed to provide technical assistance to state agencies and local governments on identifying and removing regulatory barriers to the development, placement, and preservation of affordable housing. 

DCD's assistance to state agencies and local governments must consist of: (1) analyzing the affordability implications of state and local government actions; (2) assisting all levels of government in determining the impacts of existing and proposed regulations on housing affordability; (3) developing techniques and opportunities to reduce the cost of housing through regulatory reform; (4) developing model standards and ordinances designed to reduce regulatory barriers to affordable housing; (5) providing technical assistance to state agencies and local governments; (6) preparing state regulatory barrier removal strategies; and (7) other activities deemed necessary to assist state agencies, local governments, and the housing industry in meeting the state's affordable housing needs.

DCD's Affordable Housing Advisory Board must advise the department on its housing affordability and regulatory reform activities.  DCD may apply for public and private resources to fund its housing affordability and regulatory reform activities.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  (Trade, Economic Development & Housing) There are rules and regulations that impact all levels of housing.  Not all regulations are excessive or add to the cost of housing, but we need to identify those that do add to the cost of housing.  This legislation would let us examine the impact of existing and future state and local regulations on housing costs.

(Appropriations) None.

Testimony Against:  (Trade, Economic Development & Housing) None.

(Appropriations) None.

Witnesses:  (Trade, Economic Development & Housing) Representative Ballard, prime sponsor (Pro); Ron Clarke, Washington Manufactured Housing Association (Pro); Arnold Livingston, Senior Lobby (Pro); Judy Frolich, Washington State Association of Counties (Pro); Michael Piper, Washington State Department of Community Development (Pro); Ray Burhn, Washington Mobile Park Owners Association (Pro); Terri Hotvedt, Washington Association of Realtors (Pro); and Dave Williams, Association of Washington Cities (Pro).

(Appropriations) None.