BILL REQ. #: S-4448.2
| State of Washington | 60th Legislature | 2008 Regular Session |
Read first time 01/22/08. Referred to Committee on Consumer Protection & Housing.
AN ACT Relating to preventing foreclosures by creating the smart homeownership choices program; adding new sections to chapter 43.320 RCW; and making an appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
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 become eligible to refinance into a different loan product.
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 The sum of two hundred fifty thousand
dollars, or as much thereof as may be necessary, is appropriated for
the fiscal year ending June 30, 2008, from the general fund solely for
deposit in the smart homeownership choices program account created in
section 2 of this act for the purpose of this act.