"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, all local governments receiving over five hundred thousand dollars a year during the previous calendar year from: State housing-related funding sources, including the Washington housing trust fund; the ending homelessness program surcharges in RCW 36.22.179 and 36.22.1791 (as recodified by this act); and any surcharges in chapter 43.185C RCW and the surcharges in RCW 36.22.178 (as recodified by this act), 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 43 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 43 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 43 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   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. 13   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. 14   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. 15   The office of the insurance commissioner, in collaboration with the department of community, trade, and economic development and, when necessary, in consultation with the office of financial management and the office of the attorney general, must, by December 1, 2008, present specific recommendations for strategies to reduce construction liability and earthquake insurance costs for affordable housing projects funded by the Washington housing trust fund under chapters 43.185 and 43.185A RCW, with a specific emphasis on identifying strategies to reduce construction liability insurance costs, to the appropriate committees of the legislature. Recommendations must include any changes to existing statutory or regulatory language necessary for the state or for eligible organizations with affordable housing projects funded by the housing trust fund to pursue recommended strategies.

NEW SECTION.  Sec. 16   A new section is added to chapter 43.185 RCW to read as follows:
     Affordable housing developments receiving financing by the Washington housing trust fund under this chapter and chapter 43.185A RCW that were not acquired by eminent domain are exempt from the requirements of and rules adopted for chapter 8.26 RCW. All projects receiving financing from the housing trust fund must comply with any relocation standards and requirements and real property acquisition policies established by the department as a condition of housing trust fund assistance.

NEW SECTION.  Sec. 17   A new section is added to chapter 43.185 RCW to read as follows:
     (1) The housing communities program is created within the department to provide technical assistance and organizational capacity building programs to private, community-based nonprofit organizations that primarily serve communities of color or multilingual communities. The housing communities program must provide organizational training and technical assistance on housing development issues, including asset management, resource acquisition, and other general housing development topics, with the goal of assisting nonprofit organizations to add affordable housing development into their organizational missions and workplans, or expand their current affordable housing programs to further meet the needs of their communities.
     (2) The department shall contract with two or more experienced housing nonprofit organizations that have the capacity to implement the housing communities program throughout the state.

NEW SECTION.  Sec. 18   A new section is added to chapter 43.185 RCW to read as follows:
     (1) The housing infrastructure program is created in the department to provide loans for public infrastructure that supports affordable rental housing or affordable owner-occupied housing.
     (2) The department is authorized to make direct loans to eligible organizations for the cost of public works projects that support affordable rental housing or affordable owner-occupied housing, including the planning, construction, repair, reconstruction, replacement, rehabilitation, or improvement of sidewalks, streets and roads, bridges, power utilities, water systems, storm and sanitary sewage systems, and solid waste facilities. The department may also provide loans for the acquisition of real property when the acquisition is directly related to the development of public works projects for affordable rental or owner-occupied housing.
     (3) Loan interest rates shall not exceed one-half of one percent per annum. The department must provide reasonable terms and conditions for repayment of loans, including partial forgiveness of loan principal and interest payments.
     (4) The department shall conduct a statewide request for public works project applications and shall establish a competitive process for loan awards. The department shall review and prioritize proposals in consultation with the public works board, the community economic revitalization board, and the transportation improvement board. The following criteria must be used in the evaluation and ranking of public works project applications:
     (a) The public works projects must support affordable rental housing or affordable owner-occupied housing; and
     (b) The public works projects must demonstrate convincing evidence that (i) additional residential or mixed-use development will occur in an urban growth area designated under RCW 36.70A.110; (ii) the proposed mixed-use residential development is within one-half mile of a public transportation passenger terminal or major transit passenger stop; or (iii) that either moderate or high-density housing developments, or both, will be constructed.
     (5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Affordable owner-occupied housing" means housing affordable to and occupied by households with incomes not exceeding one hundred fifteen percent of the median income for housing located outside of high-cost areas or one hundred fifty percent of the median income for housing located within high-cost areas.
     (b) "Affordable rental housing" means rental housing units affordable to and occupied by households with incomes not exceeding eighty percent of the median income for housing located outside of high-cost areas, or equal to the median income for housing located within high-cost areas.
     (c)"High-cost area" means a county where the third quarter median house price for the previous year, as reported by the Washington center for real estate research at Washington State University, is equal to or greater than one hundred thirty percent of the statewide median house price published during the same time period.

NEW SECTION.  Sec. 19   A new section is added to chapter 43.185 RCW to read as follows:
     The affordable housing infrastructure account is created in the state treasury. All receipts from appropriations made to the account, repayments of loans made under section 18 of this act, and other sources identified by the legislature must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes identified in section 18 of this act.

Sec. 20   RCW 43.185C.005 and 2005 c 484 s 1 are each amended to read as follows:
     Despite laudable efforts by all levels of government, private individuals, nonprofit organizations, and charitable foundations to end homelessness, the number of homeless persons and persons at risk of homelessness in Washington is unacceptably high. The state's homeless population, furthermore, includes a large number of families with children, youth, and employed persons. The legislature finds that the fiscal and societal costs of homelessness are high for both the public and private sectors, and that ending homelessness ((should)) must be a goal for state and local government.
     The legislature finds that there are many causes of homelessness, including a shortage of affordable housing; a shortage of family-wage jobs which undermines housing affordability; a lack of an accessible and affordable health care system available to all who suffer from physical and mental illnesses and chemical and alcohol dependency; domestic violence; ((and)) a lack of education and job skills necessary to acquire adequate wage jobs in the economy of the twenty-first century; inadequate availability of services for citizens with mental disorders, chemical dependency disorders, or developmental disabilities living in the community; and the difficulties faced by formerly institutionalized persons in reintegrating to society and finding stable employment and housing.
     The support and commitment of all sectors of the statewide community is critical to the chances of success in ending homelessness in Washington. While the provision of housing and housing-related services to the homeless should be administered at the local level to best address specific community needs, the legislature also recognizes the need for the state to play a primary coordinating, supporting, ((and)) monitoring, and evaluating role. There must be a clear assignment of responsibilities and a clear statement of achievable and quantifiable goals. Systematic statewide data collection on ((homelessness)) homeless individuals in Washington must be a critical component of such a program enabling the state to work with local governments not only to count all homeless people in the state, but to record and manage information about homeless persons ((and)) in order to assist them in finding housing and other supportive services that can help them, when possible, achieve the highest degree of self-sufficiency and economic independence that is appropriate given their specific abilities and situations.
     The systematic collection and rigorous evaluation of homeless data, a nationwide search for and implementation through adequate resource allocation of best practices, and the systematic measurement of progress toward interim goals and the ultimate goal of ending homelessness are all necessary components of a statewide effort to end homelessness in Washington by ((July 1, 2015)) December 31, 2018.

Sec. 21   RCW 43.185C.010 and 2007 c 427 s 3 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Department" means the department of community, trade, and economic development.
     (2) "Director" means the director of the department of community, trade, and economic development.
     (3) "Homeless person" means an individual living outside or in a building not meant for human habitation or which they have no legal right to occupy, in an emergency shelter, or in a temporary housing program which may include a transitional and supportive housing program if habitation time limits exist. This definition includes substance abusers, people with mental illness, and sex offenders who are homeless.
     (4) "Washington homeless census" or "census" means ((an annual)) a statewide census conducted at least annually as a collaborative effort by towns, cities, counties, community-based organizations, and state agencies, with the technical support and coordination of the department, to count and collect ((data on)) information about all homeless individuals in Washington.
     (5) "Home security fund account" means the state treasury account receiving the state's portion of income from revenue from the sources established by RCW 36.22.179 (as recodified by this act), RCW 36.22.1791 (as recodified by this act), and all other sources directed to the homeless housing and assistance program.
     (6) "((Homeless housing)) Ending homelessness grant program" means the ((vehicle by)) program established in RCW 43.185C.070, 43.185C.080, and 43.185C.090 under which competitive grants are awarded by the department, utilizing moneys from the ((homeless housing)) home security fund account, to local governments for programs directly related to ((housing homeless individuals and families,)) addressing the root causes of homelessness, preventing homelessness, and collecting data and information on homeless individuals((, and other efforts directly related to housing homeless persons)).
     (7) "Local government" means a county government in the state of Washington or a city government, if the legislative authority of the city affirmatively elects to accept the responsibility for housing homeless persons within its ((borders)) jurisdiction.
     (8) "Housing continuum" means the progression of individuals along a housing-focused continuum with homelessness at one end and homeownership at the other.
     (9) "Local ((homeless housing)) ending homelessness task force" means a voluntary local committee created under RCW 43.185C.160 to ((advise a local government on the creation of)) develop a local ((homeless housing)) ending homelessness plan and participate in a local ((homeless housing)) ending homelessness program. ((It must include a representative of the county, a representative of the largest city located within the county, at least one homeless or formerly homeless person, such other members as may be required to maintain eligibility for federal funding related to housing programs and services and if feasible, a representative of a private nonprofit organization with experience in low-income housing.))
     (10) "Long-term private or public housing" means subsidized and unsubsidized rental or owner-occupied housing in which there is no established time limit for habitation of less than two years.
     (11) "Interagency council on homelessness" means a committee appointed by the governor and consisting of, at least, policy level representatives of the following entities: (a) The department of community, trade, and economic development; (b) the department of corrections; (c) the department of social and health services; (d) the department of veterans affairs; and (e) the department of health.
     (12) "Performance measurement" means the process of comparing specific measures of success against ultimate and interim goals.
     (13) "Performance evaluation" means the process of evaluating performance by established criteria according to the achievement of outlined goals, measures, targets, standards, or other outcomes, using a ranked scorecard from highest to lowest performance that employs a scale of one to one hundred, one hundred being the optimal score.
     (14) "Quality management program" means a nationally recognized program using criteria similar or equivalent to the Baldridge criteria. Beginning in 2010, all local governments receiving over five hundred thousand dollars a year during the previous calendar year from: State housing-related funding sources, including the Washington housing trust fund; the ending homelessness program surcharges in RCW 36.22.179 and 36.22.1791 (as recodified by this act); and any surcharges in this chapter and the surcharges in RCW 36.22.178 (as recodified by this act), 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.
     (15) "Community action agency" means a nonprofit private or public organization established under the economic opportunity act of 1964.
     (((14))) (16) "Housing authority" means any of the public corporations created by chapter 35.82 RCW.
     (((15) "Homeless housing)) (17) "Ending homelessness program" means the program authorized under this chapter as administered by the department at the state level and by the local government or its designated subcontractor at the local level.
     (((16) "Homeless housing)) (18) "Local ending homelessness plan" means the ((ten-year)) plan developed by the ((county or other)) local government to address ((housing for homeless persons)) ending homelessness.
     (((17) "Homeless housing)) (19) "State ending homelessness strategic plan" means the ((ten-year)) plan developed by the department, in consultation with the interagency council on homelessness, the state advisory council on homelessness, and the affordable housing advisory board, to end homelessness.
     (((18))) (20) "Washington homeless client management information system" means a database of information about homeless individuals in the state used to coordinate resources to assist homeless clients to obtain and retain housing and reach greater levels of self-sufficiency or economic independence when appropriate, depending upon their individual situations.
     (21) "Good family wage job" means a job that pays at or above one of the two self-sufficiency income standards established under section 36 of this act which for an individual means enough income to support one adult individual, and for a family means enough income to support two adult individuals, one preschool-aged child, and one school-aged child.
     (22) "Unsheltered homeless" means a homeless individual or homeless individuals living outside or in a building not intended for human habitation or in which the individual or individuals have no legal right to occupy.
     (23) "At risk of homelessness" means any low, very low, or extremely low-income individual or family residing in housing that is not affordable housing.
     (24) "Transitional housing operating and rent program" means the program created in section 43 of this act to assist homeless individuals and families and individuals and families at risk of homelessness to secure and retain safe, decent, and affordable housing.

Sec. 22   RCW 43.185C.020 and 2005 c 484 s 5 are each amended to read as follows:
     There is created within the department the ((homeless housing)) ending homelessness program to develop and ((coordinate)) implement a statewide ending homelessness strategic plan ((aimed at housing homeless persons)), coordinate and monitor local government ending homelessness plans and programs, and implement and manage an ending homelessness grant program. The ending homelessness program has an established short-term goal of reducing the homeless population statewide and in each county by seventy percent by July 1, 2015, and an ultimate goal of ending homelessness by December 31, 2018. The ending homelessness program ((shall be)) is developed and administered by the department with advice and input from the affordable housing advisory board established in RCW 43.185B.020 (as recodified by this act).

Sec. 23   RCW 43.185C.040 and 2005 c 484 s 7 are each amended to read as follows:
     (1) ((Six months after the first Washington homeless census,)) The department shall, in consultation with the interagency council on homelessness, the state advisory council on homelessness, and the affordable housing advisory board, prepare and ((publish a ten-year homeless housing)) annually update a state ending homelessness strategic plan which ((shall)) must outline statewide goals and performance measures ((and shall be coordinated with the plan for homeless families with children required under RCW 43.63A.650. To guide local governments in preparation of their first local homeless housing plans due December 31, 2005, the department shall issue by October 15, 2005, temporary guidelines consistent with this chapter and including the best available data on each community's homeless population)) to meet the needs of all homeless populations, including chronic homeless, unsheltered homeless, short-term homeless, families, individuals, and youth, as well as to meet the needs of individuals and families at risk of homelessness. Local governments' ((ten-year homeless housing)) local ending homelessness plans ((shall not)) must include all of the performance measures included in the state ending homelessness strategic plan and must be substantially ((inconsistent)) consistent with the goals and program recommendations of ((the temporary guidelines and, when amended after 2005,)) the state ending homelessness strategic plan.
     (2)(a) Program outcomes and performance measures and goals ((shall)) must be created by the department ((and reflected)) in consultation with the interagency council on homelessness and a task force established by the department consisting of the committee chairs of the appropriate committees of the legislature, representatives appointed by the director from a minimum of five local ending homelessness task forces representing both urban and rural areas and communities east and west of the Cascade mountains, and a representative from a statewide membership organization that advocates for ending homelessness. All performance measures must have targets and timelines. The task force must also produce guidelines for local governments regarding methods, techniques, and data suggested to measure each performance measure. Performance measures, yearly targets, and corresponding measurement guidelines must be established by December 31, 2008, and must be reviewed annually by the department and the interagency council on homelessness after soliciting feedback from all local ending homelessness task forces. Performance measures must be included in the department's ((homeless housing)) state ending homelessness strategic plan ((as well as)) and all local ending homelessness plans.
     (b) The department may determine a timeline for implementation and measurement of each performance measure for the state and local ending homelessness plans, except that the state and all local governments must implement and respond to all performance measures by December 31, 2010, unless the department finds that a performance measure is not applicable to a specific local area according to parameters and thresholds established by the department.
     (c) Performance measures must be created, at a minimum, to gauge the success of the state and each local government in the following areas:
     (i) The cost of ending homelessness in comparison with available and committed resources;
     (ii) The total capital and service dollars required statewide and by county to meet the two goals outlined in RCW 43.185C.020, the assessment of which must include a determination of the current shortfall of funds as well as recommendations to reduce the total amount of funds determined to be needed to meet the goals;
     (iii) The self-sufficiency of persons in Washington;
     (iv) The achievement of an appropriate level of self-sufficiency for homeless individuals;
     (v) The quality and completeness of the Washington homeless client management information system database;
     (vi) The quality of the performance management systems of state agencies, local governments, and local government subcontractors executing programs, as authorized by RCW 43.185C.080(1), that contribute to the overall goal of ending homelessness; and
     (vii) The quality of local ending homelessness plans.
     Performance measurements are reported upon by city and county geography, including demographics with yearly or more frequent targets.
     (3) Interim goals against which state and local governments' performance may be measured must also be described and reported upon in the state ending homelessness strategic plan, including:
     (a) ((By the end of year one, completion of the first census as described in RCW 43.185C.030;
     (b))) By the end of each subsequent year, goals common to all state and local programs which are measurable and the achievement of which would move that community toward housing its homeless population; ((and
     (c))) (b) By July 1, 2015, reduction of the homeless population statewide and in each county by ((fifty)) seventy percent; and
     (c) By December 31, 2018, the reduction of the homeless population statewide and in each county by one hundred percent, representing the end of homelessness in Washington.
     (((3))) (4) The department shall develop a consistent statewide data gathering instrument to monitor the performance of cities and counties receiving ending homelessness grants in order to determine compliance with the terms and conditions set forth in the ending homelessness grant application or required by the department.
     (5) The department shall, in consultation with the interagency council on homelessness, the state advisory council on homelessness, and the affordable housing advisory board, report annually to the governor and the appropriate committees of the legislature ((an assessment of)) information about:
     (a) All state programs addressing homeless housing and services;
     (b) The state's performance in furthering the goals of the state ((ten-year homeless housing)) ending homelessness strategic plan; and
     (c) The performance of each participating local government in creating and executing a local ((homeless housing)) ending homelessness plan ((which)) that meets the requirements of this chapter. ((The annual report may include performance measures such as:
     (a) The reduction in the number of homeless individuals and families from the initial count of homeless persons;
     (b) The number of new units available and affordable for homeless families by housing type;
     (c) The number of homeless individuals identified who are not offered suitable housing within thirty days of their request or identification as homeless;
     (d) The number of households at risk of losing housing who maintain it due to a preventive intervention;
     (e) The transition time from homelessness to permanent housing;
     (f) The cost per person housed at each level of the housing continuum;
     (g) The ability to successfully collect data and report performance;
     (h) The extent of collaboration and coordination among public bodies, as well as community stakeholders, and the level of community support and participation;
     (i) The quality and safety of housing provided; and
     (j) The effectiveness of outreach to homeless persons, and their satisfaction with the program.
     (4))) (6) The state plan must also include a response to each recommendation included in the local plans for policy changes to assist in ending homelessness and a summary of the recommendations to the legislature to streamline and simplify all homeless planning and reporting requirements.
     (7) Based on the performance of local ((homeless housing)) ending homelessness programs in meeting their interim goals, on general population changes and on changes in the homeless population recorded in the ((annual)) census, the department may revise the performance measures and goals of the state ((homeless housing strategic plan)) ending homelessness plans, set goals for years following the initial ten-year period, and recommend changes in local governments' ending homelessness plans.

Sec. 24   RCW 43.185C.050 and 2005 c 484 s 8 are each amended to read as follows:
     (1)(a)(i) Each local ((homeless housing)) ending homelessness task force shall prepare and recommend to its local government legislative authority a ((ten-year homeless housing)) local ending homelessness plan for its jurisdictional area ((which shall be not inconsistent)) that is consistent with the department's ((statewide temporary guidelines, for the December 31, 2005, plan, and thereafter the department's ten-year homeless housing)) state ending homelessness strategic plan and ((which shall be)) is aimed at eliminating homelessness, with a minimum goal of reducing homelessness by ((fifty)) seventy percent by July 1, 2015, and an ultimate goal of ending homelessness by December 31, 2018. ((The local government may amend the proposed local plan and shall adopt a plan by December 31, 2005. Performance in meeting the goals of this local plan shall be assessed annually in terms of the performance measures published by the department.)) Local governments must update their local ending homelessness plan annually on a schedule to be determined by the department.
     (ii) Local plans must include specific strategic objectives and performance measures, consistent with the state plan, and must include corresponding action plans. Local plans must address identified strategies to meet the needs of all homeless populations, including chronic homeless, unsheltered homeless, short-term homeless, families, individuals, and youth, as well as to meet the needs of individuals and families at risk of homelessness. Local plans must specifically identify efforts to meet the needs of homeless students. Each local plan must include the total estimated cost of accomplishing the goals of the plan to reduce homelessness by seventy percent by July 1, 2015, and an ultimate goal of ending homelessness by December 31, 2018, and must include an accounting of total committed funds for this purpose.
     (b)(i) The department must conduct an annual performance evaluation of each local plan by December 31st of each year beginning in 2008. The department must also conduct an annual performance evaluation of each local government's performance related to its local plan by December 31st of each year beginning in 2008. A local government's performance must be evaluated using, at a minimum, the performance measures outlined in RCW 43.185C.040(2).
     (ii) In addition to the performance measures mandated in RCW 43.185C.040(2), local plans may include specific local performance measures adopted by the local government legislative authority((,)) and ((may)) must include recommendations for ((any)) state legislation needed to meet the state or local plan goals. The recommendations must be specific and must, if funding is required, include an estimated amount of funding required and suggestions for an appropriate funding source.
     (2) Eligible activities under the local plans include:
     (a) Rental and furnishing of dwelling units for the use of homeless persons;
     (b) Costs of developing affordable housing for homeless persons, and services for formerly homeless individuals and families residing in transitional housing or permanent housing and still at risk of homelessness;
     (c) Operating subsidies for transitional housing or permanent housing serving formerly homeless families or individuals;
     (d) Services to prevent homelessness, such as emergency eviction prevention programs, including temporary rental subsidies to prevent homelessness;
     (e) Temporary services to assist persons leaving state institutions and other state programs to prevent them from becoming or remaining homeless;
     (f) Outreach services for homeless individuals and families;
     (g) Development and management of local ((homeless)) ending homelessness plans, including homeless census data collection((;)) and information, identification of goals, performance measures, strategies, and costs, and evaluation of progress towards established goals;
     (h) Rental vouchers payable to landlords for persons who are homeless or below thirty percent of the median income or in immediate danger of becoming homeless; ((and))
     (i) Implementing a quality management program and applying to the Washington state quality award program for an independent assessment of quality management, accountability, and performance systems or applying to the full examination Washington state quality award program; and
     (j) Other activities to reduce and prevent homelessness as identified for funding in the local plan.

Sec. 25   RCW 43.185C.070 and 2005 c 484 s 11 are each amended to read as follows:
     (1) During each calendar year in which moneys from the ((homeless housing)) home security fund account are available for use by the department for the ((homeless housing)) ending homelessness grant program, the department shall announce to all Washington counties, participating cities, and through major media throughout the state, a grant application period of at least ninety days' duration. Grants may be awarded for programs directly related to addressing the root causes of homelessness, preventing homelessness, and collecting data and information on homeless individuals. Only a local government participating in the ending homelessness program is eligible to receive an ending homelessness grant. This announcement will 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 as described in RCW 36.22.179 (as recodified by this act).
     (2) The department ((will)) shall develop, ((with advice and input from the affordable housing advisory board established in RCW 43.185B.020)) in consultation with the interagency council on homelessness, criteria to evaluate grant applications.
     (3) The department may approve only those applications ((only if they)) that are consistent with the local and state ((homeless housing program strategic)) ending homelessness plans. The department may give preference to applications based on some or all of the following criteria:
     (a) The total homeless population in the applicant local government service area, as reported by the most recent ((annual)) Washington homeless census;
     (b) Current local expenditures to provide housing for the homeless and to address the underlying causes of homelessness as described in RCW 43.185C.005;
     (c) Local government and private contributions pledged to the program in the form of matching funds, property, infrastructure improvements, and other contributions; and the degree of leveraging of other funds from local government or private sources for the program for which funds are being requested, to include 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) ((Construction projects or rehabilitation that will serve homeless individuals or families for a period of at least twenty-five years;
     (e) Projects which demonstrate serving homeless populations with the greatest needs, including projects that serve special needs populations;
     (f))) The degree to which the applicant project represents a collaboration between local governments, nonprofit community-based organizations, local and state agencies, and the private sector((, especially through its integration with the coordinated and comprehensive plan for homeless families with children required under RCW 43.63A.650));
     (((g))) (e) The cooperation of the local government in the ((annual)) Washington homeless census ((project));
     (((h))) (f) The number of homeless censuses or other homeless counts conducted by the local government beyond the annual census requirement;
     (g) The commitment of the local government and any subcontracting local governments, nonprofit organizations, and for-profit entities to employ a diverse work force and pay wages at or above the self-sufficiency standard;
     (h) The commitment of the local government to apply to the Washington state quality award program for an independent assessment of its quality management, accountability, and performance system or apply to the full examination Washington state quality award program;
     (i) The extent that a local government's subcontractors commit to apply to the Washington state quality award program for an independent assessment of their quality management, accountability, and performance systems or apply to the full examination Washington state quality award program;
     (j) The extent, if any, that the local homeless population is disproportionate to the revenues collected under this chapter and RCW 36.22.178 and 36.22.179 (as recodified by this act); and
     (((j))) (k) Other elements shown by the applicant to be directly related to the goal and the department's state ending homelessness strategic plan.

Sec. 26   RCW 43.185C.080 and 2005 c 484 s 12 are each amended to read as follows:
     (1) ((Only a local government is eligible to receive a homeless housing grant from the homeless housing account. Any city may assert responsibility for homeless housing within its borders if it so chooses, by forwarding a resolution to the legislative authority of the county stating its intention and its commitment to operate a separate homeless housing program. The city shall then receive a percentage of the surcharge assessed under RCW 36.22.179 equal to the percentage of the city's local portion of the real estate excise tax collected by the county. A participating city may also then apply separately for homeless housing program grants. A city choosing to operate a separate homeless housing program shall be responsible for complying with all of the same requirements as counties and shall adopt a local homeless housing plan meeting the requirements of this chapter for county local plans. However, the city may by resolution of its legislative authority accept the county's homeless housing task force as its own and based on that task force's recommendations adopt a homeless housing plan specific to the city.
     (2))) Local governments ((applying for homeless housing funds)) may subcontract with any other local government, housing authority, community action agency, or other nonprofit organization for the execution of programs contributing to the overall goal of ending homelessness within a defined service area. All subcontracts ((shall)) must be consistent with the local ((homeless housing)) ending homelessness plan adopted by the legislative authority of the local government, time limited, and filed with the department, and ((shall)) must have specific performance terms. Local governments must strongly encourage all subcontractors under the ending homelessness program to apply to the Washington state quality award program for an independent assessment of their quality management, accountability, and performance systems or apply to the full examination Washington state quality award program. While a local government has the authority to subcontract with other entities, the local government continues to maintain the ultimate responsibility for the ((homeless housing)) ending homelessness program within its ((borders)) jurisdiction.
     (((3))) (2) A county may decline to participate in the 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 ((shall)) must also be transmitted to the county auditor and treasurer. If ((such a)) the resolution is adopted, all of the funds otherwise due to the county under RCW ((43.185C.060 shall)) 36.22.179 and 36.22.1791 (as recodified by this act), minus funds due to any city that has chosen to participate through the process established in subsection (3) of this section, must be remitted monthly to the state treasurer for deposit in the ((homeless housing)) home security fund account, without any reduction by the county for collecting or administering the funds. Upon receipt of the resolution, the department shall promptly begin to identify and contract with one or more entities eligible under this section to create and execute a local ((homeless housing)) ending homelessness plan for the county meeting the requirements of this chapter. The department shall expend all of the funds received from the county under this subsection to carry out the purposes of this chapter ((484, Laws of 2005)) in the county, ((provided that)) but the department may retain six percent of these funds to offset the cost of managing the county's program.
     (3) Any city may assert responsibility for homeless housing within its borders, by forwarding a resolution to the legislative authority of the county stating its intention and its commitment to operate a separate ending homelessness program. A city choosing to operate a separate ending homelessness program receives a percentage of the surcharges assessed under RCW 36.22.179 and 36.22.1791 (as recodified by this act) equal to the percentage of the city's local portion of the real estate excise tax collected by the county. A participating city may also then apply separately for ending homelessness grants. A city choosing to operate a separate ending homelessness program must comply with all of the same requirements as counties and shall adopt a local ending homelessness plan meeting the requirements of this chapter for local ending homelessness plans.
     (4) A resolution by the county declining to participate in the program ((shall have)) has no effect on the ((ability)) authority of each city in the county to assert its right to manage its own program under this chapter, and the county shall monthly transmit to the city the funds due under ((this chapter)) RCW 36.22.179 and 36.22.1791 (as recodified by this act).

Sec. 27   RCW 43.185C.090 and 2005 c 484 s 13 are each amended to read as follows:
     The department shall allocate ending homelessness grant moneys from the ((homeless housing)) home security fund account to finance in whole or in part programs and projects in approved local ((homeless housing)) ending homelessness plans ((to assist homeless individuals and families gain access to adequate housing, prevent at-risk individuals from becoming homeless, address the root causes of homelessness, track and report on homeless-related data, and facilitate the movement of homeless or formerly homeless individuals along the housing continuum toward more stable and independent housing)) for programs directly related to addressing the root causes of homelessness, preventing homelessness, and collecting data and information on homeless individuals. The department may issue criteria or guidelines to guide local governments in the application process.

Sec. 28   RCW 43.185C.100 and 2005 c 484 s 14 are each amended to read as follows:
     The department shall provide technical assistance to any participating local government that requests such assistance. Technical assistance activities may include:
     (1) Assisting local governments to identify appropriate parties to participate on local ((homeless housing)) ending homelessness task forces;
     (2) Assisting local governments to identify appropriate service providers with which the local governments may subcontract for service provision and development activities, when necessary;
     (3) Assisting local governments to implement or expand homeless census programs to meet ((homeless housing)) ending homelessness program requirements;
     (4) Assisting local governments in the local implementation and updating of the homeless client management information system as required in RCW 43.185C.180;
     (5) Assisting local governments to apply to the Washington state quality award program for an independent assessment of their quality management, accountability, and performance systems or apply to the full examination Washington state quality award program;
     (6) Assisting local governments to strongly encourage all subcontractors to apply to the Washington state quality award program for an independent assessment of their quality management, accountability, and performance systems or apply to the full examination Washington state quality award program;
     (7) Assisting local governments to create quality ending homelessness plans;
     (8) Assisting in the identification of "best practices" from other areas;
     (((5))) (9) Assisting in identifying additional funding sources for specific projects; and
     (((6))) (10) Training local government and subcontractor staff, including quality management training.

Sec. 29   RCW 43.185C.130 and 2005 c 484 s 17 are each amended to read as follows:
     The department shall ensure that the state's interest is protected upon the development, use, sale, or change of use of projects constructed, acquired, or financed in whole or in part through the ((homeless housing)) ending homelessness grant program. These policies may include, but are not limited to: (1) Requiring a share of the appreciation in the project in proportion to the state's contribution to the project, or (2) requiring a lump sum repayment of the grant upon the sale or change of use of the project.

Sec. 30   RCW 43.185C.160 and 2005 c 485 s 1 are each amended to read as follows:
     (1) Each county shall create ((a homeless housing)) an ending homelessness task force to develop a ((ten-year homeless housing)) ending homelessness plan addressing short-term and long-term services and housing ((for homeless persons)) to prevent and reduce homelessness by seventy percent by July 1, 2015, and to achieve the ultimate goal of ending homelessness by December 31, 2018.
     Membership on the task force may include representatives of the counties, cities, towns, housing authorities, civic and faith organizations, schools, community networks, human services providers, law enforcement personnel, criminal justice personnel, including prosecutors, probation officers, and jail administrators, substance abuse treatment providers, mental health care providers, emergency health care providers, businesses, at-large representatives of the community, and a homeless or formerly homeless individual.
     In lieu of creating a new task force, a local government may designate an existing governmental or nonprofit body ((which)) that substantially conforms to this section and ((which)) includes at least one homeless or formerly homeless individual to serve as its homeless representative. As an alternative to a separate plan, two or more local governments may work in concert to develop and execute a joint ((homeless housing)) local ending homelessness plan, or to contract with another entity to do so according to the requirements of this chapter. While a local government has the authority to subcontract with other entities, the local government continues to maintain the ultimate responsibility for the ((homeless housing)) ending homelessness program within its borders.
     ((A county may decline to participate in the 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 shall also be transmitted to the county auditor and treasurer. If a county declines to participate, the department shall create and execute a local homeless housing plan for the county meeting the requirements of this chapter.))
     (2) In addition to developing a ((ten-year homeless housing)) local ending homelessness plan, each task force shall establish guidelines consistent with the statewide ((homeless housing)) ending homelessness strategic plan, as needed, for the following:
     (a) Emergency shelters;
     (b) Short-term housing needs;
     (c) Temporary encampments;
     (d) Rental voucher programs;
     (e) Timely housing opportunities for unsheltered homeless;
     (f) Supportive housing for chronically homeless persons; ((and
     (e))) (g) Long-term housing; and
     (h) Prevention services.
     Guidelines must include, when appropriate, standards for health and safety and notifying the public of proposed facilities to house the homeless.
     (3) Each county((, including counties exempted from creating a new task force under subsection (1) of this section,)) shall report to the department of community, trade, and economic development ((such)) any information ((as may be)) needed to ensure compliance with this chapter.

Sec. 31   RCW 43.185C.900 and 2005 c 484 s 2 are each amended to read as follows:
     This chapter may be known and cited as the ending homelessness ((housing and assistance)) act.

Sec. 32   RCW 36.22.179 and 2007 c 427 s 4 are each amended to read as follows:
     (1) In addition to the surcharge authorized in RCW 36.22.178 (as recodified by this act), and except as provided in subsection (2) of this section, an additional surcharge of ten dollars shall be charged by the county auditor for each document recorded, which will be in addition to any other charge allowed by law. The funds collected pursuant to this section are to be distributed and used as follows:
     (a) The auditor shall retain two percent for collection of the fee, and of the remainder shall remit sixty percent to the county to be deposited into a fund that must be used by the county and its cities and towns to accomplish the purposes of this chapter, six percent of which may be used by the county for administrative costs related to its ((homeless housing)) ending homelessness plan, and the remainder for programs which directly accomplish the goals of the county's local ((homeless housing)) ending homelessness plan, except that for each city in the county which elects as authorized in RCW 43.185C.080 to operate its own local ((homeless housing)) ending homelessness program, a percentage of the surcharge assessed under this section equal to the percentage of the city's local portion of the real estate excise tax collected by the county shall be transmitted at least quarterly to the city treasurer, without any deduction for county administrative costs, for use by the city for program costs which directly contribute to the goals of the city's local ((homeless housing)) ending homelessness plan; of the funds received by the city, it may use six percent for administrative costs for its ((homeless housing)) ending homelessness program.
     (b) The auditor shall remit the remaining funds to the state treasurer for deposit in the home security fund account. The department may use twelve and one-half percent of this amount for administration of the program established in RCW 43.185C.020, including the costs of creating the statewide ((homeless housing)) ending homelessness strategic plan, measuring performance, providing technical assistance to local governments, and managing the ((homeless housing)) ending homelessness grant program. The remaining eighty-seven and one-half percent is to be used by the department to:
     (i) Provide housing and shelter for homeless people including, but not limited to: Grants to operate, repair, and staff shelters; grants to operate transitional housing; partial payments for rental assistance; consolidated emergency assistance; overnight youth shelters; and emergency shelter assistance; and
     (ii) Fund the ((homeless housing)) ending homelessness grant program.
     (2) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.

Sec. 33   RCW 36.22.1791 and 2007 c 427 s 5 are each amended to read as follows:
     (1) In addition to the surcharges authorized in RCW 36.22.178 and 36.22.179 (as recodified by this act), and except as provided in subsection (2) of this section, the county auditor shall charge an additional surcharge of eight dollars for each document recorded, which is in addition to any other charge allowed by law. The funds collected under this section are to be distributed and used as follows:
     (a) The auditor shall remit ninety percent to the county to be deposited into a fund six percent of which may be used by the county for administrative costs related to its ((homeless housing)) ending homelessness plan, and the remainder for programs that directly accomplish the goals of the county's local ((homeless housing)) ending homelessness plan, except that for each city in the county that elects, as authorized in RCW 43.185C.080, to operate its own ((homeless housing)) ending homelessness program, a percentage of the surcharge assessed under this section equal to the percentage of the city's local portion of the real estate excise tax collected by the county must be transmitted at least quarterly to the city treasurer for use by the city for program costs that directly contribute to the goals of the city's ((homeless housing)) ending homelessness plan.
     (b) The auditor shall remit the remaining funds to the state treasurer for deposit in the home security fund account. The department may use the funds for administering the program established in RCW 43.185C.020, including the costs of creating and updating the statewide ((homeless housing)) ending homelessness strategic plan, measuring performance, providing technical assistance to local governments, and managing the ((homeless housing)) ending homelessness grant program. Remaining funds may also be used to:
     (i) Provide housing and shelter for homeless people including, but not limited to: Grants to operate, repair, and staff shelters; grants to operate transitional housing; partial payments for rental assistance; consolidated emergency assistance; overnight youth shelters; and emergency shelter assistance; and
     (ii) Fund the ((homeless housing)) ending homelessness grant program.
     (2) The surcharge imposed in this section does not apply to assignments or substitutions of previously recorded deeds of trust.

Sec. 34   RCW 43.185C.170 and 2006 c 349 s 7 are each amended to read as follows:
     (1) The interagency council on homelessness, as defined in RCW 43.185C.010, shall ((be convened not later than)) convene by August 31, 2006, and shall meet at least two times each year and report to the appropriate committees of the legislature annually by December 31st on its activities.
     (2) The interagency council on homelessness shall work to create greater levels of interagency coordination and to coordinate state agency efforts with the efforts of state and local entities addressing homelessness.
     (3) The interagency council on homelessness must respond to all state and local legislative and policy recommendations included in the state and local ending homelessness plans. The interagency council must annually present its strategy for addressing the issues raised to the appropriate committees of the legislature and must also include a report on the actions taken to date that address these issues.
     (4) The interagency council shall seek to:
     (a) Align homeless-related housing and supportive service policies among state agencies;
     (b) Identify ways in which providing housing with appropriate services can contribute to cost savings for state agencies;
     (c) Identify policies and actions that may contribute to homelessness or interfere with its reduction;
     (d) Review and improve strategies for discharge from state institutions that contribute to homelessness;
     (e) Recommend policies to either improve practices or align resources, or both, including those policies requested by the affordable housing advisory board or through state and local housing plans; and
     (f) Ensure that the housing status of people served by state programs is collected in consistent formats available for analysis.

Sec. 35   RCW 43.185C.180 and 2006 c 349 s 8 are each amended to read as follows:
     (1) In order to improve services for the homeless, the department, within amounts appropriated by the legislature for this specific purpose, shall implement the Washington homeless client management information system for the ongoing collection and updates of information about all homeless individuals in the state.
     (2) Information about homeless individuals for the Washington homeless client management information system shall come from the Washington homeless census ((and)), from state agencies, and from community organizations providing services to homeless individuals and families. Personally identifying information about homeless individuals for the Washington homeless client management system may only be collected after having obtained informed, reasonably time limited written consent from the homeless individual to whom the information relates. Data collection ((shall)) must be done in a manner consistent with federally informed consent guidelines regarding human research which, at a minimum, require that individuals be informed about the expected duration of their participation, an explanation of whom to contact for answers to pertinent questions about the data collection and their rights regarding their personal identifying information, an explanation regarding whom to contact in the event of injury to the individual related to the homeless client survey, a description of any reasonably foreseeable risks to the homeless individual, and a statement describing the extent to which confidentiality of records identifying the individual will be maintained.
     (3) The Washington homeless client management information system shall serve as an online information and referral system to enable local governments and providers to connect homeless persons in the database with available housing and other support services. Local governments shall develop a capacity for continuous case management, including independent living plans, when appropriate, to assist homeless persons.
     (4) The information in the Washington homeless client management information system will also provide the department with the information to consolidate and analyze data about the extent and nature of homelessness in Washington state, giving emphasis to information about the extent and nature of homelessness in Washington state among families with children.
     (5) The system may be merged with other data gathering and reporting systems and shall:
     (a) Protect the right of privacy of individuals;
     (b) Provide for consultation and collaboration with all relevant state agencies, including the department of social and health services, experts, and community organizations involved in the delivery of services to homeless persons; and
     (c) Include related information held or gathered by other state agencies.
     (6) Within amounts appropriated by the legislature, for this specific purpose, the department shall evaluate the information gathered and disseminate the analysis and the evaluation broadly, using appropriate computer networks as well as written reports.
     (7) The Washington homeless client management information system ((shall)) must be implemented by December 31, 2009, and updated with new homeless client information at least ((annually)) twice each year.

NEW SECTION.  Sec. 36   A new section is added to chapter 43.185C RCW to read as follows:
     The department shall contract with the employment security department to annually establish two self-sufficiency income standards based upon the cost of living, including housing costs, which include mortgage or rent payments and utilities other than telephone, for each county in the state. The self-sufficiency income standards must be based upon the costs needed to support: (1) One adult individual; and (2) two adult individuals and one preschool-aged child and one school-aged child. These income standards will be translated into an equivalent hourly wage rate assuming one full-year, full-time earner for the self-sufficiency income standards for each county. The self-sufficiency income standards must be presented to the legislature by December 31, 2009. The employment security department must spend no more than one hundred ten thousand dollars in creating the initial self-sufficiency income standards and no more than fifty-five thousand dollars annually to update the standards. The employment security department shall deliver a report to the department and the appropriate committees of the legislature that details the number and percentage of individuals statewide and in each county who do not have a good family wage job and, as a result, earn less than the self-sufficiency income standards, as well as the number and percentage of individuals statewide and in each county who have a good family wage job and, as a result, earn an amount equivalent to or more than the self-sufficiency income standards.

Sec. 37   RCW 43.185B.030 and 1993 c 478 s 6 are each amended to read as follows:
     The affordable housing advisory board shall:
     (1) Analyze those solutions and programs that could begin to address the state's need for housing that is affordable for all economic segments of the state, and special needs populations, including but not limited to programs or proposals which provide for:
     (a) Financing for the acquisition, rehabilitation, preservation, or construction of housing;
     (b) Use of publicly owned land and buildings as sites for affordable housing;
     (c) Coordination of state initiatives with federal initiatives and financing programs that are referenced in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended, and development of an approved housing strategy as required in the Cranston-Gonzalez national affordable housing act (42 U.S.C. Sec. 12701 et seq.), as amended;
     (d) Identification and removal, where appropriate and not detrimental to the public health and safety, or environment, of state and local regulatory barriers to the development and placement of affordable housing;
     (e) Stimulating public and private sector cooperation in the development of affordable housing; and
     (f) Development of solutions and programs affecting housing, including the equitable geographic distribution of housing for all economic segments, as the advisory board deems necessary;
     (2) Consider both homeownership and rental housing as viable options for the provision of housing. The advisory board shall give consideration to various types of residential construction and innovative housing options, including but not limited to manufactured housing;
     (3) Review, evaluate, and make recommendations regarding existing and proposed housing programs and initiatives including but not limited to tax policies, land use policies, and financing programs. The advisory board shall provide recommendations to the director, along with the department's response in the annual housing report to the legislature required in RCW 43.185B.040 (as recodified by this act); and
     (4) Prepare and submit to the director and to the legislature, by each December 1st, beginning December 1, 1993, a report ((detailing its)) that (a) details the board's findings and (b) discusses the measurable relationship between jobs paying less than the self-sufficiency standard, established under section 36 of this act, and housing affordability, and make specific program, legislative, and funding recommendations and any other recommendations it deems appropriate.

NEW SECTION.  Sec. 38   A new section is added to chapter 43.185C RCW to read as follows:
     The joint legislative audit and review committee shall conduct two performance audits of the ending homelessness program. The first audit must be conducted by December 31, 2010. The second audit must be conducted by December 31, 2014. Each audit must take no longer than six months or one hundred thousand dollars to complete.

Sec. 39   RCW 43.20A.790 and 1999 c 267 s 2 are each amended to read as follows:
     (1) The department of social and health services shall collaborate with the department ((of community, trade, and economic development)) in the development of ((the)) a coordinated and comprehensive plan for homeless families with children ((required under RCW 43.63A.650, which designates the department of community, trade, and economic development as the state agency with primary responsibility for providing shelter and housing services to homeless families with children. In fulfilling its responsibilities to collaborate with the department of community, trade, and economic development pursuant to RCW 43.63A.650,)) that must be integrated into the state ending homelessness strategic plan created in RCW 43.185C.040. The department of social and health services shall develop, administer, supervise, and monitor its portion of the plan((. The department's portion of the plan shall)), which must contain at least the following elements:
     (a) Coordination or linkage of services with shelter and housing;
     (b) Accommodation and addressing the needs of homeless families in the design and administration of department programs;
     (c) Participation of the department's local offices in the identification, assistance, and referral of homeless families; and
     (d) Ongoing monitoring of the efficiency and effectiveness of the plan's design and implementation.
     (2) The department shall include community organizations involved in the delivery of services to homeless families with children, and experts in the development and ongoing evaluation of the plan.
     (((3) The duties under this section shall be implemented within amounts appropriated for that specific purpose by the legislature in the operating and capital budgets.))

Sec. 40   RCW 36.18.010 and 2007 c 523 s 2 are each amended to read as follows:
     County auditors or recording officers shall collect the following fees for their official services:
     (1) For recording instruments, for the first page eight and one-half by fourteen inches or less, five dollars; for each additional page eight and one-half by fourteen inches or less, one dollar. The fee for recording multiple transactions contained in one instrument will be calculated for each transaction requiring separate indexing as required under RCW 65.04.050 as follows: The fee for each title or transaction is the same fee as the first page of any additional recorded document; the fee for additional pages is the same fee as for any additional pages for any recorded document; the fee for the additional pages may be collected only once and may not be collected for each title or transaction;
     (2) For preparing and certifying copies, for the first page eight and one-half by fourteen inches or less, three dollars; for each additional page eight and one-half by fourteen inches or less, one dollar;
     (3) For preparing noncertified copies, for each page eight and one-half by fourteen inches or less, one dollar;
     (4) For administering an oath or taking an affidavit, with or without seal, two dollars;
     (5) For issuing a marriage license, eight dollars, (this fee includes taking necessary affidavits, filing returns, indexing, and transmittal of a record of the marriage to the state registrar of vital statistics) plus an additional five-dollar fee for use and support of the prevention of child abuse and neglect activities to be transmitted monthly to the state treasurer and deposited in the state general fund plus an additional ten-dollar fee to be transmitted monthly to the state treasurer and deposited in the state general fund. The legislature intends to appropriate an amount at least equal to the revenue generated by this fee for the purposes of the displaced homemaker act, chapter 28B.04 RCW;
     (6) For searching records per hour, eight dollars;
     (7) For recording plats, fifty cents for each lot except cemetery plats for which the charge shall be twenty-five cents per lot; also one dollar for each acknowledgment, dedication, and description: PROVIDED, That there shall be a minimum fee of twenty-five dollars per plat;
     (8) For recording of miscellaneous records not listed above, for the first page eight and one-half by fourteen inches or less, five dollars; for each additional page eight and one-half by fourteen inches or less, one dollar;
     (9) For modernization and improvement of the recording and indexing system, a surcharge as provided in RCW 36.22.170;
     (10) For recording an emergency nonstandard document as provided in RCW 65.04.047, fifty dollars, in addition to all other applicable recording fees;
     (11) For recording instruments, a two-dollar surcharge to be deposited into the Washington state heritage center account created in RCW 43.07.129;
     (12) For recording instruments, a surcharge as provided in RCW 36.22.178 (as recodified by this act); ((and))
     (13) For recording instruments, except for documents recording a birth, marriage, divorce, or death or any documents otherwise exempted from a recording fee under state law, a surcharge as provided in RCW 36.22.179 (as recodified by this act); and
     (14) For recording instruments, except for documents recording a birth, marriage, divorce, or death or any documents otherwise exempted from a recording fee under state law, a surcharge as provided in RCW 36.22.1791 (as recodified by this act).

Sec. 41   RCW 43.185C.150 and 2005 c 484 s 21 are each amended to read as follows:
     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 chapter 484, Laws of 2005 and the revenues authorized in RCW 36.22.1791 (as recodified by this act). However, neither the department nor any local government may use any funds authorized in chapter 484, Laws of 2005 or the revenues authorized in RCW 36.22.1791 (as recodified by this act) to supplant or reduce any existing expenditures of public money for the reduction or prevention of homelessness or services for homeless persons.

NEW SECTION.  Sec. 42   The department of community, trade, and economic development shall contract with the Washington institute for public policy to conduct a study to determine the most effective, accurate, and comprehensive way for counties and the state of Washington to measure and evaluate the societal cost of homelessness. The department shall not spend more than one hundred thousand dollars on the study, and the results of the study must be presented to the appropriate committees of the legislature by June 30, 2009.

NEW SECTION.  Sec. 43   (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) Families with children who are homeless or who are at risk of becoming homeless and who are receiving services under chapter 13.34 RCW;
     (c) 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;
     (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 has a mental health or chemical dependency disorder; and
     (e) 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. For eligible organizations serving victims of domestic violence or sexual assault, compliance with this subsection must be accomplished in accordance with 42 U.S.C. Sec. 11383 (a)(8).
     (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. 44   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 43 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. 45   RCW 59.18.600 (Rental to offenders -- Limitation on liability) and 2007 c 483 s 602 are each repealed.

NEW SECTION.  Sec. 46   RCW 36.22.179, 36.22.1791, 43.20A.790, and 43.63A.650 are each recodified as sections in chapter 43.185C RCW.

NEW SECTION.  Sec. 47   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 48 of this act).

NEW SECTION.  Sec. 48   Sections 1 through 4, 6 through 10, 12, 43, and 44 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 49   The code reviser shall alphabetize and renumber the definitions in RCW 43.185C.010.

NEW SECTION.  Sec. 50   If specific funding for the purposes of sections 1 through 13, 43, and 44 of this act, referencing sections 1 through 13, 43, and 44 of this act by bill or chapter number and section number, is not provided by June 30, 2008, in the omnibus appropriations act, sections 1 through 13, 43, and 44 of this act are null and void."