1696-S2 AMH DUFA VASE 149

2SHB 1696 - H AMD 171

By Representative Dufault

NOT ADOPTED 03/06/2025

On page 7, after line 18, insert the following:

"NEW SECTION. Sec. 3. A new section is added to chapter 43.181 RCW to read as follows:

(1) This act may not be implemented unless:

(a) The commission requests a formal opinion by the attorney general on the following questions:

(i) Whether the restrictions on gifting of funds and lending of credit in article VIII, sections 5 and 7 of the state Constitution prohibit the commission from using funds from the assessment established in RCW 36.22.185 to create one or more special purpose credit programs to provide down payment and closing cost assistance to program participants who meet the eligibility criteria specified in this chapter, including the requirement in RCW 43.181.040(4) that a special purpose credit program applicant must have a household income at or below 120 percent of the area median income for the county where the home is located; and

(ii) Whether the restrictions on gifting of funds and lending of credit in article VIII, sections 5 and 7 of the state Constitution prohibit a special purpose credit program authorized under this chapter from fully forgiving a loan for down payment and closing cost assistance once the loan has been outstanding for at least five years for program participants who have a household income at or below 80 percent of the area median income for the county where the home is located at the time that the loan is made as specified under RCW 43.181.040(3)(b); and

(b) The attorney general opinion finds that the restrictions on gifting of funds and lending of credit in article VIII, sections 5 and 7 of the state Constitution do not prohibit the commission from engaging in the activity described in (a) of this subsection.

(2) The commission must provide the attorney general opinion to the appropriate committees of the legislature within 30 days of the issuance of the opinion."

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