"NEW SECTION.  Sec. 1   A new section is added to chapter 43.320 RCW to read as follows:
     (1) The smart homeownership choices program is created in the department to assist low-income and moderate-income households, as defined in RCW 84.14.010, facing foreclosure.
     (2) The department shall enter into an interagency agreement with the Washington state housing finance commission to implement and administer this program with moneys from the account created in section 2 of this act. The Washington state housing finance commission will request funds from the department as needed to implement and operate the program.
     (3) The commission shall, under terms and conditions to be determined by the commission, assist homeowners who are delinquent on their mortgage payments to bring their mortgage payments current in order to refinance into a different loan product. Financial assistance received by homeowners under this chapter shall be repaid at the time of refinancing into a different loan product. Homeowners receiving financial assistance shall also agree to partake in a residential mortgage counseling program. Moneys may also be used for outreach activities to raise awareness of this program. Not more than four percent of the total appropriation for this program may be used for administrative expenses of the department and the commission.
     (4) The commission must provide an annual report to the legislature at the end of each fiscal year of program operation. The report must include information including the total number of households seeking help to resolve mortgage delinquency, the number of program participants that successfully avoided foreclosure, and the number of program participants who refinanced a home, including information on the terms of both the new loan product and the product out of which the homeowner refinanced. The commission shall establish and report upon performance measures, including measures to gauge program efficiency and effectiveness and customer satisfaction.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.320 RCW to read as follows:
     The smart homeownership choices program account is created in the custody of the state treasurer. All receipts from the appropriation in section 4 of this act as well as receipts from private contributions and all other sources that are specifically designated for the smart homeownership choices program must be deposited into the account. Expenditures from the account may be used solely for the purpose of preventing foreclosures through the smart homeownership choices program as described in section 1 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. 3   A new section is added to chapter 43.320 RCW to read as follows:
     The Washington state housing finance commission shall only serve low-income households, as defined in RCW 84.14.010, through the smart homeownership choices program described in section 1 of this act using state appropriated general funds in the smart homeownership choices program account created in section 2 of this act. Contributions from private and other sources to the account may be used to serve both low-income and moderate-income households, as defined in RCW 84.14.010, through the smart homeownership choices program.

NEW SECTION.  Sec. 4   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2008, in the omnibus appropriations act, this act is null and void."