BILL REQ. #:  H-0060.4 

Read first time 01/17/2007.   Referred to Committee on Housing.

     AN ACT Relating to affordable housing development; amending RCW 43.63A.510, 35.21.687, 36.34.137, 43.20A.037, 47.12.063, 47.12.064, 72.09.055, 43.19.19201, 79A.05.170, 79A.05.175, 79.11.005, 79.22.060, and 28A.335.120; adding a new section to chapter 79A.05 RCW; adding a new section to chapter 43.30 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that:
     (a) The lack of affordable housing for very low-income and low-income households and special needs populations is intensified by the rising cost of land and construction;
     (b) There are publicly owned surplus land and buildings that may be suitable to be marketed, sold, leased, or exchanged for the development of affordable housing or housing for special needs populations; and
     (c) Requiring certain public agencies, commissions, and local governments to offer suitable surplus land and buildings at a discounted price for a minimum period of time to nonprofit housing organizations and eligible public entities for the purpose of affordable housing development confers a valuable benefit on the public that constitutes consideration for the sale of such property at a price below fair market value subject to restrictions that provide continued protection of the public interest.
     (2) The legislature declares that the purpose of this act is to:
     (a) Identify publicly owned land and buildings that may be suitable for the development of affordable housing for very low-income and low-income households and special needs populations;
     (b) Provide a central inventory of state and other publicly owned land and buildings that may be suitable to be marketed, sold, leased, or exchanged for the development of affordable housing or housing for special needs populations; and
     (c) Facilitate the effective use of publicly owned surplus and underutilized land and buildings suitable for the development of affordable housing for very low-income and low-income households and special needs populations by requiring that these types of surplus property to certain public agencies, commissions, and local governments be offered for an initial time period at a discount to nonprofit housing organizations and eligible public agencies for the development of affordable housing for very low-income and low-income households or housing for special needs populations.

Sec. 2   RCW 43.63A.510 and 1993 c 461 s 2 are each amended to read as follows:
     (1) The department shall work with the departments of natural resources, transportation, social and health services, corrections, and general administration, the state parks and recreation commission, and cities, towns, and counties to identify and catalog under-utilized, ((state-)) publicly owned land and property suitable for the development of affordable housing for very low-income((,)) or low-income ((or moderate-income)) households. The department, and the departments of natural resources, transportation, social and health services, corrections, and general administration, the state parks and recreation commission, and cities, towns, and counties, shall ((provide)) each produce an inventory of real property that is owned or administered by ((each)) the agency, commission, or local government, is suitable for the development of affordable housing, and is available for lease or sale. ((The)) Each inventory must contain descriptive information about each property that includes, at a minimum, the location, approximate size, current zoning classification, current fair market value price, and contact information of the property. Updated inventories ((shall)) must be provided to the department ((by November 1, 1993, with inventory revisions provided each November 1 thereafter)) as suitable surplus property becomes available for sale or lease, but at least annually, beginning in September 2007.
     (2) ((Upon written request,)) The department shall ((provide a copy of)) consolidate information from all updated inventories provided to the department as required in subsection (1) of this section and shall publicly advertise on its web site the consolidated inventory ((of state-owned and publicly owned lands and buildings to parties interested in developing the sites for affordable housing)). All known available federal surplus property must also be included in the consolidated inventory. The consolidated inventory must be updated at least twice a year, and printed copies of the consolidated inventory must be provided upon request.
     (3) As used in this section:
     (a) "Affordable housing" means residential housing that ((is rented or owned by a person who qualifies as a very low-income, low-income, or moderate-income household or who is from a special needs population, and whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income)) has a sales price or rental amount that is within the means of a very low-income or low-income household. The department must adopt rules for determining whether homeownership and rental housing is within the means of a very low-income or low-income household.
     (b) "Very low-income household" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the median family income, adjusted for household size, for the county where the affordable housing is located.
     (c) "Low-income household" means a single person, family, or unrelated persons living together whose income is more than fifty percent but is at or below eighty percent of the median family income where the affordable housing is located.
     (d) (("Moderate-income household" means a single person, family, or unrelated persons living together whose income is more than eighty percent but is at or below one hundred fifteen percent of the median income where the affordable housing is located.)) "Nonprofit housing organization" means any public or private nonprofit organization that: (i) Is organized under federal, state, or local laws; (ii) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (iii) has, among its purposes, significant activities related to the provision of decent housing that is affordable to very low-income or low-income households or special needs populations, or both.
     (e) "Eligible public agency" means any public agency that has, among its purposes, significant activities related to the provision of decent housing that is affordable to very low-income or low-income households or special needs populations, or both. "Eligible public agency" may include a public development authority, community renewal agency, or public housing authority.
     (f) "Housing authority" or "authority" means any of the public corporations created by RCW 35.82.030.
     (g) "Public development authority" means a public authority created under RCW 35.21.730.
     (h) "Community renewal agency" has the same meaning as in RCW 35.81.015.
     (i) "Department" means the department of community, trade, and economic development.
     (j) "Director" means the director of the department of community, trade, and economic development.
     (k) "Purchasing entity" means a nonprofit housing organization or eligible public entity that purchases surplus property under this section.
     (4)(a) Surplus property for sale by the department, the departments of natural resources, social and health services, corrections, and general administration, the state parks and recreation commission, and by cities, towns, and counties, which is suitable for the development of affordable housing, must be offered, for at least the first ninety days after its availability for sale, exclusively to nonprofit housing organizations and eligible public agencies, for the purpose of developing affordable housing. Nonprofit housing organizations and eligible public agencies have the right of first opportunity to purchase these surplus properties at a discounted price representing between ninety and one hundred percent of the fair market value, under reasonable option and purchase conditions, in return for a commitment to provide affordable housing or housing for special needs populations for at least thirty years. The department shall develop a formula to calculate discount increases in proportion to the percentage of housing in the entire development that will be used for affordable housing or housing for special needs populations.
     (b)(i) Any nonprofit housing organization or eligible public agency interested in purchasing surplus property described in this section must present to the agency, commission, or local government that is selling the property a proposed affordable housing project description, including:
     (A) The number of affordable housing units to be created and a description of the income-level populations that may occupy the units;
     (B) The number of special needs units to be created;
     (C) The number of nonaffordable housing units to be created;
     (D) The number, estimated square footage, and description of the purpose of other facilities to be created;
     (E) The number of years the purchasing entity intends to (I) retain the affordable housing units as affordable housing or (II) retain housing units for special needs populations, which must be at least thirty years; and
     (F) A proposed development schedule indicating that the development will either be placed into service or be substantially completed and available for occupation within five years of the date on which the purchasing entity formally purchases the property.
     (ii) The department, or individual local governments, state agencies, and commissions, may establish additional requirements for purchase offers by nonprofit housing organizations and eligible public agencies.
     (c) Each agency, commission, or local government subject to this section must establish criteria to use if more than one nonprofit housing organization or eligible public agency is interested in purchasing a single piece of surplus property and presents a proposed project description during the required initial offer period. The criteria may give preference to nonprofit housing organizations and eligible public agencies that propose to develop affordable housing or housing for special needs populations that:
     (i) Serve the lowest income populations or special needs populations;
     (ii) Create the greatest number of affordable housing units or units for special needs populations;
     (iii) Preserve the affordability of the affordable housing units or commit to retain the units for special needs populations for the longest periods of time;
     (iv) Integrate or cause the provision of appropriate supportive services in the proposed project description; and
     (v) Are most likely to place affordable housing or housing for special needs populations into service at the earliest date.
     (d) If a nonprofit housing organization or an eligible public entity does not present a proposed project description that meets the requirements of (c) of this subsection, during the required initial offer period, local governments, state agencies, and commissions may consider offers from the general public. However, these entities are encouraged to market surplus properties to other entities interested in developing affordable housing and housing for special needs populations.
     (5) If an eligible purchasing entity purchases surplus property at a discount under subsection (4)(a) of this section, and if the affordable housing or housing for special needs populations is not substantially completed according to the proposed project description required under subsection (4)(b) of this section within five years of the date the property is purchased, the purchaser must, within one year, repay the state agency, commission, or local government that sold the property to the purchaser the amount of the discount received, plus interest at a rate to be determined annually by the department.
     (6)(a) The department shall produce a statewide surplus property housing report to be provided to the appropriate committees of the legislature each year by December 31st, beginning in 2006. The report must consolidate all state agency, commission, and local government reports submitted under (b) of this subsection and include information on all surplus property that was sold in the most recently completed fiscal year. The report must include, at a minimum:
     (i) A list of all surplus property sold;
     (ii) The final sales price of each sale;
     (iii) The identity of all purchasers, indicating which properties were purchased by a nonprofit housing organization or eligible public agency for the purpose of developing affordable housing or housing for special needs populations;
     (iv) For surplus properties not purchased by a nonprofit housing organization or eligible public agency for the purpose of developing affordable housing or housing for special needs populations, the purpose for which the land was purchased, if known;
     (v) For surplus properties purchased by a nonprofit organization or eligible public agency for the purpose of developing affordable housing or housing for special needs populations, the following information must be included for each property:
     (A) The number of affordable housing units or units for special needs populations created, under development, and planned, including anticipated dates of completion;
     (B) The income level populations that may occupy the affordable housing units, the number of years the affordable housing units must remain affordable, and the number of years any units designated for special needs populations must remain available to special needs populations; and
     (C) A description and the number of other housing units and facilities created, under development, and planned, including anticipated dates of completion.
     (b) State agencies, commissions, and local governments subject to this section must submit an annual report to the department providing information about surplus properties that were sold in the most recently completed fiscal year, including the information required in (a) of this subsection necessary for the statewide surplus property report.
     (7) The following property is exempt from this chapter:
     (a) Real property designated or previously acquired as state lands as defined in RCW 79.02.010; and
     (b) Lands acquired under restrictive conveyances.
     (8) Nothing in this section is intended to limit the powers granted in chapters 35.81, 35.82, and 35.83 RCW, or to prevent a selling entity from using alternative processes for the sale or disposition of surplus land for affordable housing purposes as long as those alternative processes require that surplus land be used for affordable housing, meeting, at a minimum, the standards required under this section.

Sec. 3   RCW 35.21.687 and 1995 c 399 s 37 are each amended to read as follows:
     (1) Every city and town, including every code city operating under Title 35A RCW, shall identify and catalog real property owned by the city or town that is no longer required for its purposes, is available for lease or sale, and is suitable for the development of affordable housing for very low-income((,)) and low-income((, and moderate-income)) households as defined in RCW 43.63A.510. The inventory ((shall include the location, approximate size, and current zoning classification of the property. Every city and town shall provide a)) must include information required under RCW 43.63A.510(1), and the city or town must provide an updated copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, with inventory revisions each November 1 thereafter)) as required under RCW 43.63A.510(1).
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) Every city and town, including every code city operating under Title 35A RCW, shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The inventory revision ((shall)) must also contain a list of real property that has become available since the last update.
     (4) Every city and town must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 4   RCW 36.34.137 and 1993 c 461 s 5 are each amended to read as follows:
     (1) Every county shall identify and catalog real property owned by the county that is no longer required for its purposes and is suitable for the development of affordable housing for very low-income((,)) and low-income((, and moderate-income)) households as defined in RCW 43.63A.510. The inventory ((shall include the location, approximate size, and current zoning classification of the property. Every county shall provide a)) must include information required under RCW 43.63A.510(1), and each county must provide an updated copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, with inventory revisions each November 1 thereafter)) as required under RCW 43.63A.510(1).
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) Every county shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The inventory revision shall include an updated listing of real property that has become available since the last update.
     (4) Every county must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 5   RCW 43.20A.037 and 1995 c 399 s 65 are each amended to read as follows:
     (1) The department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income((,)) and ((moderate)) low-income households as defined in RCW 43.63A.510. The inventory ((shall include the location, approximate size, and current zoning classification of the property. The department shall provide a)) must include information required under RCW 43.63A.510(1), and the department must provide an updated copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)) as required under RCW 43.63A.510(1).
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update.
     (4) The department must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 6   RCW 47.12.063 and 2006 c 17 s 2 are each amended to read as follows:
     (1) It is the intent of the legislature to continue the department's policy giving priority consideration to abutting property owners in agricultural areas when disposing of property through its surplus property program under this section.
     (2) Whenever the department determines that any real property owned by the state of Washington and under the jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so, the department may sell the property or exchange it in full or part consideration for land or improvements or for construction of improvements at fair market value to any of the following governmental entities or persons:
     (a) In the case of property suitable for residential use, any nonprofit housing organization, as defined in RCW 43.63A.510, and any eligible public agency, as defined in RCW 43.63A.510;
     (b) Any other state agency;
     (((b))) (c) The city or county in which the property is situated;
     (((c))) (d) Any other municipal corporation;
     (((d))) (e) Regional transit authorities created under chapter 81.112 RCW;
     (((e))) (f) The former owner of the property from whom the state acquired title;
     (((f))) (g) In the case of residentially improved property, a tenant of the department who has resided thereon for not less than six months and who is not delinquent in paying rent to the state;
     (((g))) (h) Any abutting private owner, but only after each other abutting private owner ((()), if any(())), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in RCW 47.12.283;
     (((h))) (i) To any person through the solicitation of written bids through public advertising in the manner prescribed by RCW 47.28.050;
     (((i))) (j) To any other owner of real property required for transportation purposes;
     (((j) In the case of property suitable for residential use, any nonprofit organization dedicated to providing affordable housing to very low-income, low-income, and moderate-income households as defined in RCW 43.63A.510 and is eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW;)) or
     (k) A federally recognized Indian tribe within whose reservation boundary the property is located.
     (3) Sales to purchasers may at the department's option be for cash, by real estate contract, or exchange of land or improvements. Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW or Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.
     (4) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.
     (5) Unless otherwise provided, all moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund.

Sec. 7   RCW 47.12.064 and 1995 c 399 s 121 are each amended to read as follows:
     (1) The department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income((,)) and low-income((, and moderate-income)) households as defined in RCW 43.63A.510. The inventory ((shall include the location, approximate size, and current zoning classification of the property. The department shall provide a)) must include information required under RCW 43.63A.510(1), and the department must provide an updated copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)) as required under RCW 43.63A.510(1).
     (2) ((By November 1 of each year, beginning in 1994,)) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update. ((As used in this section, "real property" means buildings, land, or buildings and land.))
     (3) The department must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (4) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 8   RCW 72.09.055 and 1995 c 399 s 202 are each amended to read as follows:
     (1) The department shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income((,)) and low-income((, and moderate-income)) households as defined in RCW 43.63A.510. The inventory ((shall include the location, approximate size, and current zoning classification of the property. The department shall provide a)) must include information required under RCW 43.63A.510(1), and the department must provide an updated copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)) as required under RCW 43.63A.510(1).
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update.
     (4) The department must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 9   RCW 43.19.19201 and 1995 c 399 s 64 are each amended to read as follows:
     (1) The department of general administration shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income((,)) and low-income((, and moderate-income)) households as defined in RCW 43.63A.510. The inventory ((shall include the location, approximate size, and current zoning classification of the property. The department of general administration shall provide a)) must include information required under RCW 43.63A.510(1), and the department must provide an updated copy of the inventory to the department of community, trade, and economic development ((by November 1, 1993, and every November 1 thereafter)) as required under RCW 43.63A.510(1).
     (2) ((By November 1 of each year, beginning in 1994,)) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) The department of general administration shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update.
     (4) The department must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 10   RCW 79A.05.170 and 1991 sp.s. c 13 s 23 are each amended to read as follows:
     (1) Any lands owned by the state parks and recreation commission, which are determined to be surplus to the needs of the state for development for state park purposes and which the commission proposes to deed to a local government or other entity for outdoor recreation purposes, shall be accompanied by a clause requiring that if the land is not used for outdoor recreation purposes, ownership of the land shall revert to the state parks and recreation commission.
     (2) ((The state parks and recreation commission,)) In cases where land subject to ((such a reversionary clause is proposed for use or disposal for purposes other than recreation, shall require that, if the land)) reversion under subsection (1) of this section is surplus to the needs of the commission for park purposes at the time the commission becomes aware of its proposed use for nonrecreation purposes, the ((holder of the land or property shall reimburse the commission for the release of the reversionary interest in the land. The reimbursement shall be in the amount of the fair market value of the reversionary interest as determined by a qualified appraiser agreeable to the commission. Appraisal costs shall be borne by the local entity which holds title to the land)) commission shall:
     (a) Offer any surplus land for sale, which is suitable for affordable housing and is included in the inventory as required by section 12 of this act, exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510. If no acceptable purchase offers are made for the properties within the required initial offer period, the properties may be disposed of by the method provided in (b) of this subsection; and
     (b) Except as provided in (a) of this subsection, dispose of surplus properties subject to reversion under subsection (1) of this section by the method provided in RCW 79A.05.175, or allow the holder of the land or property to reimburse the commission for the release of the reversionary interest in the land. The reimbursement must equal the amount of the fair market value of the reversionary interest as determined by a qualified appraiser agreeable to the commission. Appraisal costs are borne by the local entity that holds title to the land.
     (3) Any funds generated under ((a reimbursement under)) this section shall be deposited in the parkland acquisition account which is hereby created in the state treasury. Moneys in this account are to be used solely for the purchase or acquisition of property for use as state park property by the commission, as directed by the legislature; all such funds shall be subject to legislative appropriation.

Sec. 11   RCW 79A.05.175 and 1999 c 249 s 601 are each amended to read as follows:
     Whenever the commission finds that any land under its control cannot advantageously be used for park purposes, it is authorized to dispose of such land by the method provided in this section or by the method provided in RCW 79A.05.170. If such lands are school or other grant lands, control thereof shall be relinquished by resolution of the commission to the proper state officials. If such lands were acquired under restrictive conveyances by which the state may hold them only so long as they are used for park purposes, they may be returned to the donor or grantors by the commission. All ((other such)) lands, which are suitable for affordable housing and are included in the inventory as required by section 12 of this act, must be offered for sale exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510. After the required initial offer period, if no purchase offers are made on behalf of a nonprofit housing organization or eligible public agency that meets the requirements of RCW 43.63A.510(4), the commission may consider offers from the general public, and these lands, along with all other lands, may be either sold by the commission to the highest bidder or exchanged for other lands of equal value by the commission, and all conveyance documents shall be executed by the governor. All such exchanges shall be accompanied by a transfer fee, to be set by the commission and paid by the other party to the transfer; such fee shall be paid into the parkland acquisition account established under RCW 79A.05.170. Sealed bids on all sales shall be solicited at least twenty days in advance of the sale date by an advertisement appearing at least once a week for two consecutive weeks in a newspaper of general circulation in the county in which the land to be sold is located. If the commission feels that no bid received adequately reflects the fair value of the land to be sold, it may reject all bids, and may call for new bids. All proceeds derived from the sale of such park property shall be paid into the park land acquisition account. All land considered for exchange shall be evaluated by the commission to determine its adaptability to park usage. The equal value of all lands exchanged shall first be determined by the appraisals to the satisfaction of the commission. No sale or exchange of state park lands shall be made without the unanimous consent of the commission.

NEW SECTION.  Sec. 12   A new section is added to chapter 79A.05 RCW to read as follows:
     (1) The commission shall identify and catalog real property that is no longer required for commission purposes, as described in RCW 79A.05.170 and 79A.05.175, and is suitable for the development of affordable housing for very low-income and low-income households as defined in RCW 43.63A.510. The inventory must include the information required under RCW 43.63A.510(1), and the commission must provide an updated copy of the inventory to the department of community, trade, and economic development as required under RCW 43.63A.510(1).
     (2) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) The commission shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The commission must include an updated listing of real property that has become available since the last update.
     (4) The commission must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 13   RCW 79.11.005 and 2003 c 334 s 201 are each amended to read as follows:
     (1) The department is authorized to sell ((any real property not designated or acquired as)) state forest lands((, but)) as defined in RCW 79.02.010 and other lands acquired by the state, either in the name of the forest board, the forestry board, or the division of forestry, for administrative sites, lien foreclosures, or other purposes whenever it ((shall)) determines that the lands are no longer or not necessary for public use.
     (2) Property for sale, which is suitable for affordable housing and is included in the inventory as required by section 15 of this act, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510. After the required initial offer period, if no acceptable purchase offers are made on behalf of a nonprofit housing organization or eligible public agency that meets the requirements of RCW 43.63A.510(4), the department may consider offers from the general public and sales to the general public may be conducted under subsection (3) of this section. For all properties for sale not included in the inventory as required by section 15 of this act, the department may immediately consider offers from the general public and sales to the general public may be conducted under subsection (3) of this section.
     (3) The sale of property to the general public may be made after public notice to the highest bidder for such a price as approved by the governor, but not less than the fair market value of the real property, plus the value of improvements thereon. Any instruments necessary to convey title must be executed by the governor in a form approved by the attorney general.
     (((3))) (4) All amounts received from ((the sale)) all sales must be credited to the fund of the department of government that is responsible for the acquisition and maintenance of the property sold.

Sec. 14   RCW 79.22.060 and 2003 c 334 s 221 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, with the approval of the board, the department may directly transfer or dispose of state forest lands without public auction, if such lands consist of ten contiguous acres or less, or have a value of twenty-five thousand dollars or less. Such disposal may only occur in the following circumstances:
     (a) Transfers in lieu of condemnation; and
     (b) Transfers to resolve trespass and property ownership disputes.
     (2) Property suitable for affordable housing, which is included in the inventory as required by section 15 of this act, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510. After the required initial offer period, if no purchase offers are made on behalf of a nonprofit housing organization or eligible public entity that meets the requirements of RCW 43.63A.510, the property may be transferred or sold as described in subsection (1) of this section.
     (3) Real property to be transferred or disposed of under this section shall be transferred or disposed of only after appraisal and for at least fair market value, and only if such transaction is in the best interest of the state or affected trust.
     (((3))) (4) The proceeds from real property transferred or disposed of under this section shall be deposited into the park land trust revolving fund and be solely used to buy replacement land within the same county as the property transferred or disposed.

NEW SECTION.  Sec. 15   A new section is added to chapter 43.30 RCW to read as follows:
     (1) The department of natural resources shall identify and catalog real property that is no longer required for department purposes and is suitable for the development of affordable housing for very low-income and low-income households as defined in RCW 43.63A.510. The inventory must include the information required under RCW 43.63A.510(1), and the department must provide an updated copy of the inventory to the department of community, trade, and economic development as required under RCW 43.63A.510(1).
     (2) Property for sale, which is suitable for affordable housing and is included in the inventory as required by subsection (1) of this section, must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510.
     (3) The department shall regularly purge the inventory of real property of sites that are no longer available for the development of affordable housing. The department shall include an updated listing of real property that has become available since the last update.
     (4) The department must submit an annual report to the department of community, trade, and economic development as required in RCW 43.63A.510(6).
     (5) As used in this section, "real property" means buildings, land, or buildings and land.

Sec. 16   RCW 28A.335.120 and 2006 c 263 s 913 are each amended to read as follows:
     (1) The board of directors of any school district of this state may:
     (a) Sell for cash, at public or private sale, and convey by deed all interest of the district in or to any of the real property of the district which is no longer required for school purposes as described under subsection (2) of this section; and
     (b) Purchase real property for the purpose of locating thereon and affixing thereto any house or houses and appurtenant buildings removed from school sites owned by the district and sell for cash, at public or private sale, and convey by deed all interest of the district in or to such acquired and improved real property.
     (2)(a) When the board of directors of any school district proposes a sale of school district real property pursuant to this section and the property for sale is suitable for the development of affordable housing, the property must be offered exclusively to nonprofit housing organizations, as defined in RCW 43.63A.510, and eligible public agencies, as defined in RCW 43.63A.510, as required in RCW 43.63A.510. If the property for sale is not suitable for the development of affordable housing, or if after the required initial offer period no acceptable purchase offers are made on behalf of a nonprofit housing organization or eligible public agency that meets the requirements of RCW 43.63A.510, the property may be sold as described in (b) of this subsection.
     (b) If the value of the property exceeds seventy thousand dollars, the board shall publish a notice of its intention to sell the property. The notice shall be published at least once each week during two consecutive weeks in a legal newspaper with a general circulation in the area in which the school district is located. The notice shall describe the property to be sold and designate the place where and the day and hour when a hearing will be held. The board shall hold a public hearing upon the proposal to dispose of the school district property at the place and the day and hour fixed in the notice and admit evidence offered for and against the propriety and advisability of the proposed sale.
     (3) The board of directors of any school district desiring to sell surplus real property shall publish a notice in a newspaper of general circulation in the school district. School districts shall not sell the property for at least forty-five days following the publication of the newspaper notice.
     (4) Private schools shall have the same rights as any other person or entity to submit bids for the purchase of surplus real property and to have such bids considered along with all other bids.
     (5) Any sale of school district real property authorized pursuant to this section shall be preceded by a market value appraisal by a professionally designated real estate appraiser as defined in RCW 74.46.020 or a general real estate appraiser certified under chapter 18.140 RCW selected by the board of directors and no sale shall take place if the sale price would be less than ninety percent of the appraisal made by the real estate appraiser: PROVIDED, That if the property has been on the market for one year or more the property may be reappraised and sold for not less than seventy-five percent of the reappraised value with the unanimous consent of the board.
     (6) If in the judgment of the board of directors of any district the sale of real property of the district not needed for school purposes would be facilitated and greater value realized through use of the services of licensed real estate brokers, a contract for such services may be negotiated and concluded: PROVIDED, That the use of a licensed real estate broker will not eliminate the obligation of the board of directors to provide the notice described in this section: PROVIDED FURTHER, That the fee or commissions charged for any broker services shall not exceed seven percent of the resulting sale value for a single parcel: PROVIDED FURTHER, That any professionally designated real estate appraiser as defined in RCW 74.46.020 or a general real estate appraiser certified under chapter 18.140 RCW selected by the board to appraise the market value of a parcel of property to be sold may not be a party to any contract with the school district to sell such parcel of property for a period of three years after the appraisal.
     (7) If in the judgment of the board of directors of any district the sale of real property of the district not needed for school purposes would be facilitated and greater value realized through sale on contract terms, a real estate sales contract may be executed between the district and buyer.
     (8) All school districts must submit an annual report to the county that includes information about all surplus properties that were sold in the most recently completed fiscal year. The report must include all information required in RCW 43.63A.510(6). The county must include this information in the annual report required in RCW 36.34.137.