HOUSE BILL REPORT

                  HB 1519

             As Reported By House Committee On:

            Trade, Economic Development & Housing

                       Appropriations

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

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

Sponsors:  Representative Ballard.

Brief History:

  Reported by House Committee on:

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

Appropriations, March 5, 1993, DPS(TEDH-A APP).

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).

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 Substitute Bill:  The Office of Housing Affordability and Regulatory Reform is created within the Department of Community Development (DCD), to provide a focus within state government on matters pertaining to the development, placement, and preservation of affordable housing.

The duties of the office include: (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 costs 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; and (6) preparing state regulatory barrier removal strategies.

The Affordable Housing Advisory Board within DCD serves as the advisory body to the Office of Housing Affordability and Regulatory Reform.  DCD would apply for public and private resources to fund the activities of the office and provide necessary staffing.

Substitute Bill Compared to Original: Bill:  The substitute bill provides that staff support to the Affordable Housing Advisory Board is provided by the office.  The Affordable Housing Advisory Board is the advisory board to the office.

Fiscal Note:  Available.

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

Testimony For:  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.

Testimony Against:  None.

Witnesses:  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).

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).

Summary of Recommendation of Committee on Appropriations Compared to Recommendation of Committee on Trade, Economic Development & Housing:  The amended bill directs DCD to perform the duties instead of creating the Office of Housing Affordability and Regulatory Reform within DCD to perform the duties.

Fiscal Note:  Available.

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

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.