1401-S2 AMH DUNN DUPU 087
2SHB 1401 - H AMD 230
By Representative Dunn
FAILED 3/10/2007
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that first-time home buyers in Washington state have been priced out of the housing market in many counties. The legislature finds that many organizations, including local governments, have recognized the affordable housing crisis for first-time home buyers. The legislature finds that, for example, as reported in King county's benchmark growth report, "buying a first home remains extremely difficult for those under one hundred twenty percent of median income." The legislature further finds that growth management regulations contribute to the high cost of housing in many Washington counties, and that loosening land use regulations will reduce housing prices. The legislature finds that numerous studies have determined that growth management restrictions increase the cost of housing.
The legislature intends to make housing more affordable for first-time home buyers in counties where housing is currently not affordable for first-time home buyers. The legislature intends to do this by allowing single-family detached residential development to be placed outside of urban growth boundaries at density levels currently prohibited under the prevailing interpretation of the growth management act. These single-family detached homes could be placed outside of urban growth boundaries in counties where the first-time buyer housing affordability index demonstrates that housing is not affordable for first-time home buyers.
NEW SECTION. Sec. 2. A new section is added to chapter 36.70A RCW to read as follows:
(1) As used in this chapter, "first-time buyer housing affordability index" means the index determined by the Washington center for real estate research that measures the ability of a typical renter household to afford the purchase of a typical starter home by assuming: (a) The household will purchase a home priced at eighty-five percent of area median household income with a ten percent down payment; (b) the home mortgage loan is for a term of thirty years at the prevailing average fixed rate of interest; (c) the potential first- time home buyer earns seventy percent of the area median household income and twenty-five percent of household income can be used for principal and interest payments.
(2) For purposes of this chapter, a first-time buyer housing affordability index of: (a) One hundred indicates that a household of the defined income can afford a home of the defined price; (b) less than one hundred indicates that a household of the defined income cannot afford a home of the defined price without spending more than twenty-five percent of their income on mortgage payments; and (c) greater than one hundred indicates that a household of the defined income can afford a home of the defined price while spending less than twenty-five percent of their income on mortgage payments.
NEW SECTION. Sec. 3. A new section is added to chapter 36.70A RCW to read as follows:
(1)(a) In any county planning under RCW 36.70A.040 in which the first-time buyer housing affordability index, as defined by section 2 of this act, and as determined by the Washington center for real estate research at Washington State University, is less than one hundred for three quarters in any given year, for the following two years the county may permit single-family detached residential development of any density outside the urban growth area designated according to RCW 36.70A.110. For purposes of this chapter, single-family detached residential development authorized according to this section shall not be considered urban growth located outside of an urban growth area. Services provided to single-family detached residential development permitted under this section shall not be considered urban services located outside of an urban growth area.
(b) Any county planning under RCW 36.70A.040 implementing (a) of this subsection may:
(i) Change its comprehensive plan and development regulations after the determination in (a) of this subsection has been made by the Washington center for real estate research to provide new locations for or increased density of single-family detached residential development as provided for in (a) of this subsection; or
(ii) Incorporate sections in its comprehensive plan and enact development regulations that provide new locations for or increased density of single-family detached residential development which are contingent upon a determination under (a) of this subsection that the first-time buyer housing affordability index was less than one hundred for three quarters in any given year. In the event that the county chooses to enact sections of its comprehensive plan and development regulations, the county may provide that these sections and regulations take effect January 1st of any year following the determination by the Washington center for real estate research.
(2) The year-long period measured by the Washington center for real estate research under subsection (1) of this section shall begin and end in the third quarter of the calendar year. The time period for which the ability to permit single-family residential development under subsection (1) of this section shall begin January 1st of the year following the determination by the Washington center for real estate research."
Correct the title.
EFFECT: Strikes the underlying sections of the bill which create the affordable housing land acquisition revolving loan fund program for the purchase of land for affordable housing development.
Establishes that any county planning under the Growth Management Act may permit single-family detached residential development of any density outside its urban growth area for two years if it has a first-time buyer housing affordability index of less than 100 for three quarters in any given year. Such housing and services to such housing shall not be considered urban growth or urban services, respectively.
Counties meeting the affordability threshold established in this act may change their comprehensive plans or incorporate sections into their comprehensive plans to provide new locations for or increased density of single-family detached residential development.