Z-1317.1                   _______________________________________________

                                                     SENATE BILL 6213

                              _______________________________________________

State of Washington                              53rd Legislature                             1994 Regular Session

By Senators Pelz, Franklin, Prentice and Moyer; by request of Department of Community Development

Read first time 01/17/94.  Referred to Committee on Labor & Commerce.

Modifying limitations of housing-related capital bond proceeds.

          AN ACT Relating to the housing trust fund; and amending RCW 43.185.050, 43.185.060, 43.185A.030, and 43.185A.040.

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

        Sec. 1.  RCW 43.185.050 and 1991 c 356 s 4 are each amended to read as follows:

          (1) The department shall use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loans or grant projects that will provide housing for persons and families with special housing needs and with incomes at or below fifty percent of the median family income for the county or standard metropolitan statistical area where the project is located.  At least thirty percent of these moneys used in any given funding cycle shall be for the benefit of projects located in rural areas of the state as defined by the department ((of community development)).  If the department determines that it has not received an adequate number of suitable applications for rural projects during any given funding cycle, the department may allocate unused moneys for projects in nonrural areas of the state.

          (2) Activities eligible for assistance from the housing trust fund and other legislative appropriations include, but are not limited to:

          (a) New construction, rehabilitation, or acquisition of low and very low-income housing units;

          (b) Rent subsidies;

          (c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;

          (d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;

          (e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;

          (f) Shelters and related services for the homeless;

          (g) Mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;

          (h) Mortgage insurance guarantee or payments for eligible projects;

          (i) Down payment or closing cost assistance for eligible first-time home buyers;

          (j) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing; and

          (k) Projects making housing more accessible to families with members who have disabilities.

          (3) Legislative appropriations from capital bond proceeds ((and moneys from repayment of loans from appropriations from capital bond proceeds)) may be used only for the costs of projects authorized under subsection (2) (a), (i), and (j) of this section, and not for the administrative costs of the department.

(4) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the housing trust fund.

        Sec. 2.  RCW 43.185.060 and 1991 c 295 s 1 are each amended to read as follows:

          Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, regional support networks established under chapter 71.24 RCW, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or state-wide nonprofit housing assistance organizations.

        Sec. 3.  RCW 43.185A.030 and 1991 c 356 s 12 are each amended to read as follows:

          (1) Using moneys specifically appropriated for such purpose, the department shall finance in whole or in part projects that will provide housing for low-income households.

          (2) Activities eligible for assistance include, but are not limited to:

          (a) New construction, rehabilitation, or acquisition of housing for low-income households;

          (b) Rent subsidies in new construction or rehabilitated multifamily units;

          (c) Down payment or closing costs assistance for first-time home buyers;

          (d) Mortgage subsidies for new construction or rehabilitation of eligible multifamily units; and

          (e) Mortgage insurance guarantee or payments for eligible projects.

          (3) Legislative appropriations from capital bond proceeds ((and moneys from repayment of loans from appropriations from capital bond proceeds)) may be used only for the costs of projects authorized under subsection (2)(a), (c), (d), and (e) of this section, and not for the administrative costs of the department.

(4) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the housing trust fund.

        Sec. 4.  RCW 43.185A.040 and 1991 c 356 s 13 are each amended to read as follows:

          Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or state-wide nonprofit housing assistance organizations.

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