"NEW SECTION.  Sec. 1   (1) The legislature finds that there is a large, unmet need for affordable housing and affordable housing assistance in the state of Washington, causing many low-income individuals and families to be at risk of homelessness. The legislature declares that a decent, appropriate, and affordable home in a healthy, safe environment for every household should be a state goal. Furthermore, this goal includes increasing the percentage of low-income households who are ultimately able to obtain and retain housing without government subsidies or other public support.
     (2) The legislature finds that the state should provide financial resources as well as case management to help individuals and families at risk of homelessness obtain and retain housing and work towards a goal of self-sufficiency where possible.
     (3) The legislature finds that there are many root causes of the affordable housing shortage and declares that it is critical that such causes be analyzed, effective solutions be developed, implemented, monitored, and evaluated, and that these causal factors be eliminated. The legislature also finds that there is a taxpayer and societal cost associated with a lack of jobs that pay self-sufficiency standard wages and a shortage of affordable housing, and that the state must identify and quantify that cost.
     (4) The legislature finds that the support and commitment of all sectors of the statewide community is critical to accomplishing the state's affordable housing for all goal. The legislature finds that the provision of housing and housing-related services should be administered both at the state level and at the local level. However, the state should play a primary role in: Providing financial resources to achieve the goal at all levels of government; researching, evaluating, benchmarking, and implementing best practices; continually updating and evaluating statewide housing data; developing a state plan that integrates the strategies, goals, objectives, and performance measures of all other state housing plans and programs; coordinating and supporting county government plans and activities; and directing quality management practices by monitoring both state and county government performance towards achieving interim and ultimate goals.
     (5) The legislature declares that the systematic and comprehensive performance measurement and evaluation of progress toward interim goals and the immediate state affordable housing goal of a decent, appropriate, and affordable home in a healthy, safe environment for every household in the state by 2020 is a necessary component of the statewide effort to end the affordable housing crisis.

NEW SECTION.  Sec. 2   This chapter may be known and cited as the Washington affordable housing for all act.

NEW SECTION.  Sec. 3   There is created within the department the state affordable housing for all program. The goal of the program is a decent, appropriate, and affordable home in a healthy, safe environment for every household in the state by 2020. A priority must be placed upon achieving this goal for extremely low-income households as well as all households who are at risk of homelessness. This goal includes: (1) Increasing the percentage of households who access housing that is affordable for their income or wage level without government assistance by increasing the number of previously very low-income households who achieve self-sufficiency and economic independence; (2) providing financial assistance, either from the state or local resources to individuals and families at risk of homelessness, coupled with supportive services to assist families to ultimately achieve self-sufficiency whenever possible; and (3) implementing strategies to keep the rising price of housing for all economic segments to a rate less than that of the overall growth in wages for each economic segment. The department shall develop and administer the affordable housing for all program. Each county shall participate in the affordable housing for all program except as provided in section 8 of this act; however, in the development and implementation of the program scope and requirements at the county level, the department shall consider: The funding level to counties, number of county staff available to implement the program, and competency of each county to meet the goals of the program; and establish program guidelines, performance measures, and reporting requirements appropriate to the existing capacity of the participating counties.

NEW SECTION.  Sec. 4   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Affordable housing" means housing that has a sales price or rental amount that is within the means of a household that may occupy low, very low, and extremely low-income housing. The department shall adopt policies for residential rental and homeownership housing, occupied by extremely low, very low, and low-income households, that specify the percentage of household income that may be spent on monthly housing costs, including utilities other than telephone, to qualify as affordable housing.
     (2) "Affordable housing for all program" means the program authorized under this chapter, as administered by the department at the state level and by each county at the local level.
     (3) "At risk of homelessness" means any low, very low, or extremely low-income individual or family residing in housing that is not affordable housing.
     (4) "Authority" or "housing authority" means any of the public corporations created in RCW 35.82.030.
     (5) "County" means a county government in the state of Washington or, except under RCW 36.22.178 (as recodified by this act), a city government or collaborative of city governments within that county if (a) the county government declines to participate in the affordable housing program and (b) as described under section 8 of this act, a city or collaborative of city governments elects to participate in the program.
     (6) "County affordable housing for all plan" or "county plan" means the plan developed by each county with the goal of ensuring that every household in the county has a decent, appropriate, and affordable home in a healthy, safe environment by 2020.
     (7) "County affordable housing task force" means a county committee, as described in section 6 of this act, created to prepare and recommend to its county legislative authority a county affordable housing for all plan, and also to recommend expenditures of the funds from the affordable housing for all program surcharge in RCW 36.22.178 (as recodified by this act) and all other sources directed to the county's affordable housing for all program.
     (8) "Department" means the department of community, trade, and economic development.
     (9) "Director" means the director of the department of community, trade, and economic development.
     (10) "Eligible organizations" means eligible organizations as described in RCW 43.185.060.
     (11) "Extremely low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than thirty percent of the median family income, adjusted for household size for the county where the project is located.
     (12) "First-time home buyer" means an individual or his or her spouse who have not owned a home during the three-year period prior to purchase of a home.
     (13) "Local government" means a county or city government in the state of Washington or, except under RCW 36.22.178 (as recodified by this act), a city government or collaborative of city governments within that county if (a) the county government declines to participate in the affordable housing program and (b) as described under section 8 of this act, a city or collaborative of city governments elects to participate in the program.
     (14) "Low-income household," for the purposes of the affordable housing for all program, means a single person, family, or unrelated persons living together whose adjusted income is less than eighty percent of the median household income, adjusted for household size for the county where the project is located.
     (15) "Nonprofit organization" means any public or private nonprofit organization that: (a) Is organized under federal, state, or local laws; (b) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (c) has among its purposes, significant activities related to the provision of decent housing that is affordable to extremely low-income, very low-income, low-income, or moderate-income households and special needs populations.
     (16) "Performance evaluation" means the process of evaluating the performance by established objective, measurable criteria according to the achievement of outlined goals, measures, targets, standards, or other outcomes using a ranked scorecard from highest to lowest performance which employs a scale of one to one hundred, one hundred being the optimal score.
     (17) "Performance measurement" means the process of comparing specific measures of success with ultimate and interim goals.
     (18) "Quality management program" means a nationally recognized program using criteria similar or equivalent to the Baldridge criteria. Beginning in 2010, each city, town, and county receiving over five hundred thousand dollars a year during the previous calendar year from (a) state housing-related funding sources, including the housing trust fund and the transitional housing operating and rent program created in section 12 of this act, (b) the affordable housing for all program surcharge in RCW 36.22.178 (as recodified by this act), (c) the home security fund surcharges in RCW 36.22.179 and 36.22.1791 (as recodified by this act), and (d) any other surcharge charged under chapter 36.22 or 43.185C RCW to fund homelessness or other housing programs shall apply to the Washington state quality award program for an independent assessment of its quality management, accountability, and performance system, once every three years beginning by January 1, 2011.
     (19) "Regulatory barriers to affordable housing" and "regulatory barriers" mean any public policies, including those embodied in statutes, ordinances, regulations, or administrative procedures or processes, required to be identified by the state, cities, towns, or counties in connection with strategies under section 105(b)(4) of the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.).
     (20) "State affordable housing for all plan" or "state plan" means the plan developed by the department in collaboration with the affordable housing advisory board with the goal of ensuring that every household in Washington has a decent, appropriate, and affordable home in a healthy, safe environment by 2020.
     (21) "Very low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than fifty percent of the median family income, adjusted for household size for the county where the project is located.

Sec. 5   RCW 43.185B.040 and 1993 c 478 s 12 are each amended to read as follows:
     (1) The department shall, in consultation with the affordable housing advisory board created in RCW 43.185B.020 (as recodified by this act), prepare and ((from time to time amend a five-year)) annually update a state affordable housing ((advisory)) for all plan with an ultimate goal of achieving a decent, appropriate, and affordable home in a healthy, safe environment for every household in the state by 2020. The state plan must also incorporate the strategies, objectives, goals, and performance measures of all other housing-related state plans, including the state homeless housing strategic plan required under RCW 43.185C.040 and all state housing programs. The state affordable housing for all plan may be combined with the state homeless housing strategic plan required under RCW 43.185C.040 or any other existing state housing plan as long as the requirements of all of the plans to be merged are met.
     (2) The purpose of the state affordable housing for all plan is to:
     (a) Document the need for affordable housing in the state, including the need amongst households at risk of homelessness, and the extent to which that need is being met through public and private sector programs((, to));
     (b) Outline the development of sound strategies and programs to provide affordable housing to all households;
     (c) Establish, evaluate, and report upon performance measures, goals, and timelines that are determined by the department for the affordable housing for all program and the state and local affordable housing for all plans, as well as for all federal, state, and local housing programs and plans operated or coordinated by the department, including: (i) Federal block grant programs; (ii) the Washington housing trust fund; and (iii) all local surcharge funds collected with the purpose of addressing homelessness and affordable housing; and
     (d) Facilitate state and county government planning to meet the state affordable housing ((needs of the state, and to enable the development of sound strategies and programs for affordable housing)) for all goal.
     ((The information in the five-year housing advisory plan must include:
     (a) An assessment of the state's housing market trends;
     (b) An assessment of the housing needs for all economic segments of the state and special needs populations;
     (c) An inventory of the supply and geographic distribution of affordable housing units made available through public and private sector programs;
     (d) A status report on the degree of progress made by the public and private sector toward meeting the housing needs of the state;
     (e) An identification of state and local regulatory barriers to affordable housing and proposed regulatory and administrative techniques designed to remove barriers to the development and placement of affordable housing; and
     (f) Specific recommendations, policies, or proposals for meeting the affordable housing needs of the state.
     (2))) (3)(a) The department, in consultation with the affordable housing advisory board, shall develop recommendations for affordable housing for all program performance measures, short-term and long-term goals, and timelines, as well as information to be collected, analyzed, and reported upon in the state and local affordable housing for all plans. One performance measure must address the program's effectiveness in achieving the ultimate goal of a decent, appropriate, and affordable home in a healthy, safe environment for every household in the state by 2020. Another specific performance measure must be to ensure that the rate of growth in the overall price of housing for each economic segment is less than that of the overall growth in wages for each economic segment. The department shall present its recommendations for additional performance measures to the appropriate committees of the legislature by December 31, 2008.
     (b) Performance measures and other required plan components must be reviewed annually by the department after soliciting feedback from the affordable housing advisory board, appropriate committees of the legislature, and all county affordable housing for all task forces.
     (c) The department may determine a timeline to implement and measure each performance measure for the state and county affordable housing for all programs, except that the state and all counties participating in the affordable housing for all program must implement and respond to all performance measures by January 1, 2011, unless the department determines that a performance measure is not applicable to a specific county based on parameters and thresholds established by the department.
     (4) The ((five-year)) state affordable housing ((advisory)) for all plan required under ((subsection (1) of)) this section must be submitted to the appropriate committees of the legislature on or before ((February 1, 1994)) January 15, 2010, and subsequent updated plans must be submitted ((every five years)) by January 15th each year thereafter.
     (((b) Each February 1st, beginning February 1, 1995, the department shall submit an annual progress report, to the legislature, detailing the extent to which the state's affordable housing needs were met during the preceding year and recommendations for meeting those needs))
     (5) To guide counties in preparation of county affordable housing for all plans required under section 7 of this act, the department shall issue, by December 31, 2009, guidelines for preparing county plans consistent with this chapter. County plans must include, at a minimum, the same information reporting and analysis on a local level and the same performance measures as the state plan.
     (6) Each year, beginning in 2010, the department shall:
     (a) Summarize key information from county plans, including a summary of local city and county housing program activities and a summary of legislative recommendations;
     (b) Conduct annual performance evaluations of county plans; and
     (c) Conduct annual performance evaluations of all counties according to their performance in achieving affordable housing goals stated in their plans.
     (7) The department shall include a summary of county affordable housing for all plans and the results of performance evaluations in the state affordable housing for all plan beginning in 2010.
     (8) Based on changes to the general population and in the housing market, the department may revise the performance measures and goals of the state affordable housing for all plan and set goals for years following December 31, 2020.

NEW SECTION.  Sec. 6   Each county shall convene a county affordable housing task force. The task force must be a committee, made up of volunteers, created to prepare and recommend to the county legislative authority a county affordable housing for all plan and also to recommend appropriate expenditures of the affordable housing for all program funds provided for in RCW 36.22.178 (as recodified by this act) and any other sources directed to the county program. The county affordable housing task force must include a representative of the county, a representative from the city with the highest population in the county, a representative from all other cities in the county with a population greater than fifty thousand, a member representing beneficiaries of affordable housing programs, other members as may be required to maintain eligibility for federal funding related to housing programs and services, and a representative from both a private nonprofit organization and a private for-profit organization with experience in very low-income housing. The task force may be the same as the homeless housing task force created in RCW 43.185C.160 or the same as another existing task force or other formal committee that meets the requirements of this section.

NEW SECTION.  Sec. 7   (1) Each county shall direct its affordable housing task force to prepare and recommend to its county legislative authority a county affordable housing for all plan for its jurisdictional area. Each county shall adopt a county plan by June 30, 2010, and update the plan annually by June 30th thereafter. All plans must be forwarded to the department by the date of adoption. County affordable housing for all plans may be combined with the local homeless housing plans required under RCW 43.185C.040, county comprehensive plans required under RCW 36.70A.040, or any other existing plan addressing housing within a county as long as the requirements of all of the plans to be merged are met. For counties required or choosing to plan under RCW 36.70A.040, county affordable housing for all plans must be consistent with the housing elements of comprehensive plans described in RCW 36.70A.070(2). County plans must also be consistent with any existing local homeless housing plan required in RCW 43.185C.050.
     (2) County affordable housing for all plans must be primarily focused on (a) ensuring that every household, including those households at risk of homelessness, in the county jurisdictional area has a decent, appropriate, and affordable home in a healthy, safe environment by 2020 with a priority placed on achieving this goal for low-income households and (b) increasing the percentage of households, who receive assistance from the transitional housing operating and rent program created in section 12 of this act, who ultimately are able to access affordable housing without government assistance. County affordable housing for all plans must include:
     (i) At a minimum, the same information, analysis, and performance measures as the state affordable housing for all plan, including information and performance measurement data, where available, on state supported housing programs and all city and county housing programs, including local housing-related levy initiatives, housing-related tax exemption programs, and federally funded programs operated or coordinated by local governments;
     (ii) Information on the uses of the affordable housing for all surcharge as required in RCW 36.22.178(4) (as recodified by this act);
     (iii) Information on the activities and accomplishments of the transitional housing operating and rent program, as required in section 12 of this act;
     (iv) Timelines for the accomplishment of interim goals and targets, and for the acquisition of projected financing that is appropriate for outlined goals and targets;
     (v) An identification of challenges to reaching the affordable housing for all goal;
     (vi) A total estimated amount of funds needed to reach the local affordable housing for all goal and an identification of potential funding sources; and
     (vii) State legislative recommendations to enable the county to achieve its affordable housing for all goals. Legislative recommendations must be specific and, if necessary, include an estimated amount of funding required and suggestions of an appropriate funding source.

NEW SECTION.  Sec. 8   (1) Any county may decline to participate in the affordable housing for all program authorized in this chapter by forwarding to the department a resolution adopted by the county legislative authority stating the intention not to participate. A copy of the resolution must also be transmitted to the county auditor and treasurer. Counties that decline to participate shall not be required to establish an affordable housing task force or to create a county affordable housing for all plan. Counties declining to participate in the affordable housing for all program shall continue to be eligible to receive funding through the transitional housing operating and rent program created in section 12 of this act. Counties declining to participate in the affordable housing for all program shall also continue to collect and utilize the affordable housing for all surcharge for the purposes described in RCW 36.22.178 (as recodified by this act); however, such counties shall not be allocated any additional affordable housing for all program funding that is specifically provided for program planning and administrative purposes. Counties may opt back into the affordable housing for all program authorized by this chapter at a later date through a process and timeline to be determined by the department.
     (2) If a county declines to participate in the affordable housing for all program authorized in this chapter, a city or formally organized collaborative of cities within that county may forward a resolution to the department stating its intention and willingness to operate an affordable housing for all program within its jurisdictional limits. The department must establish procedures to choose amongst cities or collaboratives of cities in the event that more than one city or collaborative of cities express an interest in participating in the program. Participating cities or collaboratives of cities must fulfill the same requirements as counties participating in the affordable housing for all program.

NEW SECTION.  Sec. 9   A county may subcontract with any other county, city, town, housing authority, community action agency, or other nonprofit organization for the execution of programs contributing to the affordable housing for all goal. All subcontracts must be: Consistent with the county affordable housing for all plan adopted by the legislative authority of the county; time limited; and filed with the department, and must have specific performance terms as specified by the county. County governments must strongly encourage each subcontractor under the affordable housing for all program to apply to the Washington state quality award program for an independent assessment of its quality management, accountability, and performance system. This authority to subcontract with other entities does not affect participating counties' ultimate responsibility for meeting the requirements of the affordable housing for all program.

NEW SECTION.  Sec. 10   The department shall contract with two statewide organizations addressing affordable housing issues or homeless issues, or both, to create comprehensive independent statewide affordable housing for all plans consistent with the goals and performance measures of the state and local affordable housing for all plans as described in this chapter. Recipient organizations must present their affordable housing for all plans to the department and the appropriate committees of the legislature within one year following the receipt of contract funds.

Sec. 11   RCW 36.22.178 and 2007 c 427 s 1 are each amended to read as follows:
     The surcharge provided for in this section shall be named the affordable housing for all surcharge.
     (1) Except as provided in subsection (3) of this section, a surcharge of ten dollars per instrument shall be charged by the county auditor for each document recorded, which will be in addition to any other charge authorized by law. The county may retain up to five percent of these funds collected solely for the collection, administration, and local distribution of these funds. Of the remaining funds, forty percent of the revenue generated through this surcharge will be transmitted monthly to the state treasurer who will deposit the funds into the affordable housing for all account created in RCW 43.185C.190. The department of community, trade, and economic development must use these funds to provide housing and shelter for extremely low-income households, including but not limited to grants for building operation and maintenance costs of housing projects or units within housing projects that are affordable to extremely low-income households with incomes at or below thirty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses.
     (2) All of the remaining funds generated by this surcharge will be retained by the county and be deposited into a fund that must be used by the county and its cities and towns for eligible housing activities as described in this subsection that serve very low-income households with incomes at or below fifty percent of the area median income. The portion of the surcharge retained by a county shall be allocated to eligible housing activities that serve extremely low and very low- income households in the county and the cities within a county according to an interlocal agreement between the county and the cities within the county consistent with countywide and local housing needs and policies. A priority must be given to eligible housing activities that serve extremely low-income households with incomes at or below thirty percent of the area median income. Eligible housing activities to be funded by these county funds are limited to:
     (a) Acquisition, construction, or rehabilitation of housing projects or units within housing projects that are affordable to very low-income households with incomes at or below fifty percent of the area median income, including units for homeownership, rental units, seasonal and permanent farm worker housing units, and single room occupancy units;
     (b) Supporting building operation and maintenance costs of housing projects or units within housing projects eligible to receive housing trust funds, that are affordable to very low-income households with incomes at or below fifty percent of the area median income, and that require a supplement to rent income to cover ongoing operating expenses;
     (c) Rental assistance vouchers for housing units that are affordable to very low-income households with incomes at or below fifty percent of the area median income, to be administered by a local public housing authority or other local organization that has an existing rental assistance voucher program, consistent with or similar to the United States department of housing and urban development's section 8 rental assistance voucher program standards; and
     (d) Operating costs for emergency shelters and licensed overnight youth shelters.
     (3) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.
     (4) All counties shall report at least annually by May 1st upon receipts and expenditures of the affordable housing for all surcharge funds created in this section to the department. The department may require more frequent reports. The report must include the amount of funding generated by the surcharge, the total amount of funding distributed to date, the amount of funding allocated to each eligible housing activity, a description of each eligible housing activity funded, including information on the income or wage level and numbers of extremely low, very low, and low-income households the eligible housing activity is intended to serve, and the outcome or anticipated outcome of each eligible housing activity.

NEW SECTION.  Sec. 12   (1) The transitional housing operating and rent program is created in the department to assist individuals and families who are homeless or who are at risk of becoming homeless to secure and retain safe, decent, and affordable housing. The department shall provide grants to eligible organizations, as described in RCW 43.185.060, to provide assistance to program participants. The eligible organizations must use grant moneys for:
     (a) Rental assistance, which includes security or utility deposits, first and last month's rent assistance, and eligible moving expenses to be determined by the department;
     (b) Case management services designed to assist program participants to secure and retain immediate housing and to transition into permanent housing and greater levels of self-sufficiency;
     (c) Operating expenses of transitional housing facilities that serve homeless families with children; and
     (d) Administrative costs of the eligible organization, which must not exceed limits prescribed by the department.
     (2) Eligible to receive assistance through the transitional housing operating and rent program are:
     (a) Families with children who are homeless or who are at risk of becoming homeless and who have household incomes at or below fifty percent of the median household income for their county;
     (b) Individuals or families without children who are homeless or at risk of becoming homeless and who have household incomes at or below thirty percent of the median household income for their county;
     (c) Individuals or families who are homeless or who are at risk of becoming homeless and who have a household with an adult member who has a mental health or chemical dependency disorder; and
     (d) Individuals or families who are homeless or who are at risk of becoming homeless and who have a household with an adult member who is an offender released from confinement within the past eighteen months.
     (3) All program participants must be willing to create and actively participate in a housing stability plan for achieving permanent housing and greater levels of self-sufficiency.
     (4) Data on all program participants must be entered into and tracked through the Washington homeless client management information system as described in RCW 43.185C.180.
     (5) Beginning in 2011, each eligible organization receiving over five hundred thousand dollars during the previous calendar year from the transitional housing operating and rent program and from sources including: (a) State housing-related funding sources; (b) the affordable housing for all surcharge in RCW 36.22.178 (as recodified by this act); (c) the home security fund surcharges in RCW 36.22.179 and 36.22.1791 (as recodified by this act); and (d) any other surcharge imposed under chapter 36.22 or 43.185C RCW to fund homelessness programs or other housing programs, shall apply to the Washington state quality award program for an independent assessment of its quality management, accountability, and performance system, once every three years.
     (6) The department may develop rules, requirements, procedures, and guidelines as necessary to implement and operate the transitional housing operating and rent program.
     (7) The department shall produce an annual transitional housing operating and rent program report that must be included in the department's affordable housing for all plan as described in RCW 43.185B.040 (as recodified by this act). The report must include performance measures to be determined by the department that address, at a minimum, the following issue areas:
     (a) The success of the program in helping program participants transition into permanent affordable housing and increase their levels of self-sufficiency;
     (b) The financial performance of the program related to efficient program administration by the department and program operation by selected eligible organizations, including an analysis of the costs per program participant served;
     (c) The quality, completeness, and timeliness of the information on program participants provided to the Washington homeless client management information system database; and
     (d) The satisfaction of program participants in the assistance provided through the program.

NEW SECTION.  Sec. 13   The transitional housing operating and rent account is created in the custody of the state treasurer. All receipts from sources directed to the transitional housing operating and rent program must be deposited into the account. Expenditures from the account may be used solely for the purpose of the transitional housing operating and rent program as described in section 12 of this act. Only the director of the department or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 14   This chapter does not require either the department or any local government to expend any funds to accomplish the goals of this chapter other than the revenues authorized in this act and other revenue that may be appropriated by the legislature for these purposes. However, neither the department nor any local government may use any funds authorized in this act to supplant or reduce any existing expenditures of public money to address the affordable housing shortage.

Sec. 15   RCW 43.185A.100 and 2006 c 349 s 11 are each amended to read as follows:
     The department((,)) shall collaborate with the housing finance commission, the affordable housing advisory board, and all local governments, housing authorities, and other ((nonprofits)) eligible organizations receiving state housing funds, affordable housing for all funds, home security funds, or financing through the housing finance commission ((shall, by December 31, 2006, and annually thereafter, review current housing reporting requirements related to housing programs and services and give)) to include in the state affordable housing for all plan, by December 31, 2009, recommendations, where possible:
     (1) To streamline and simplify all housing planning, application, and reporting requirements ((to the department of community, trade, and economic development, which will compile and present the recommendations annually to the legislature. The entities listed in this section shall also give recommendations for additional)); and
     (2) For legislative actions that could promote the affordable housing for all goal and the state goal to end homelessness.

Sec. 16   RCW 43.185.070 and 2005 c 518 s 1802 and 2005 c 219 s 2 are each reenacted and amended to read as follows:
     (1) During each calendar year in which funds from the housing trust fund or other legislative appropriations are available for use by the department for the housing assistance program, 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. The department shall then promptly grant as many applications as will utilize available funds less appropriate administrative costs of the department. Administrative costs paid out of the housing trust fund may not exceed five percent of annual revenues available for distribution to housing trust fund projects. In awarding funds under this chapter, the department shall provide for a geographic distribution on a statewide basis.
     (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 and public housing authorities as created in chapter 35.82 RCW. As used in this subsection, privately owned housing stock includes housing that is acquired by a federal agency through a default on the mortgage by the private owner. 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. All projects and activities shall be evaluated by some or all of the criteria under subsection (3) of this section, and similar projects and activities shall be evaluated under the same criteria.
     (3) The department shall give preference for applications based on some or all of the criteria under this subsection, and similar projects and activities shall be evaluated under the same criteria:
     (a) The degree of leveraging of other funds that will occur;
     (b) The degree of commitment from programs to provide necessary habilitation and support services for projects focusing on special needs populations;
     (c) 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) Local government project contributions in the form of infrastructure improvements, and others;
     (e) Projects that encourage ownership, management, and other project-related responsibility opportunities;
     (f) Projects that demonstrate a strong probability of serving the original target group or income level for a period of at least twenty-five years;
     (g) The applicant has the demonstrated ability, stability and resources to implement the project;
     (h) The applicant has committed to quality improvement and submitted an application to the Washington state quality award program for an independent assessment of its quality management, accountability, and performance system within the previous three years;
     (i) Projects which demonstrate serving the greatest need;
     (((i))) (j) Projects that provide housing for persons and families with the lowest incomes;
     (((j))) (k) Projects that provide housing for persons at risk of homelessness;
     (l) Projects serving special needs populations which are under statutory mandate to develop community housing;
     (((k))) (m) Project location and access to employment centers in the region or area;
     (((l))) (n) Projects that provide employment and training opportunities for disadvantaged youth under a youthbuild or youthbuild-type program as defined in RCW 50.72.020; and
     (((m))) (o) Project location and access to available public transportation services.
     (4) The department shall only approve applications for projects for ((mentally ill)) persons with mental illness that are consistent with a regional support network six-year capital and operating plan.

NEW SECTION.  Sec. 17   RCW 59.18.600 (Rental to offenders -- Limitation on liability) and 2007 c 483 s 602 are each repealed.

NEW SECTION.  Sec. 18   RCW 36.22.179, 36.22.1791, and 43.20A.790 are each recodified as sections in chapter 43.185C RCW.

NEW SECTION.  Sec. 19   RCW 36.22.178, 43.185A.100, 43.185B.020, and 43.185B.040 are each recodified as sections in chapter 43.--- RCW (created in section 20 of this act).

NEW SECTION.  Sec. 20   Sections 1 through 4, 6 through 10, and 12 through 14 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 21   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2008, in the omnibus appropriations act, this act is null and void."