Washington State Housing Finance Commission.
The Washington State Housing Finance Commission (Commission) is a public body created to act as a financial conduit which, without using public funds or lending the credit of the state or local government, can issue nonrecourse revenue bonds and participate in federal, state, and local housing programs. The Commission issues both tax-exempt and taxable bonds to provide below market rate financing to nonprofit and for-profit housing developers who set aside a certain percentage of their units for low-income individuals and families. In addition, the Commission issues bonds to provide below market rate financing for sustainable energy projects, nonprofit facilities, and beginning farmers and ranchers. The Commission also uses bond financing to offer home loans and down payment and closing cost assistance programs to low-income and first-time homebuyers.
The Commission's operating costs are funded through fees earned on its programs. Most of the Commission's programs are public-private partnerships that rely on private equity investment. Taxpayer dollars are not used for Commission operations except when the Commission is directed to administer a state program or contract with another state agency.
Housing Finance Program.
The Housing Finance Program (Program) was created in 1994 to provide subsidized or unsubsidized mortgage financing for single-family homeownership. The Commission is authorized to develop and implement the Program in cooperation with the Department of Commerce using resources of the State Investment Board to purchase mortgage-backed securities collateralized by loans made within the state. Participation in the Program is limited to first-time homebuyers with incomes that do not exceed 115 percent of state or county median family income, whichever is higher, adjusted for family size. The Program is not currently in operation.
Housing Finance Plan.
The Commission must adopt and periodically update a general plan of housing finance objectives, known as the Housing Finance Plan. The plan must include an estimate of the amount of bonds the Commission will issue during the term of the plan and how the bond proceeds will be expended. The plan must be adopted by resolution of the Commission following a public hearing, and a draft of the plan must be made available not less than 30 days prior to the public hearing. The Commission must report to the Legislature at least every two years regarding implementation of the Plan. The Commission must adopt rules designed to result in the use of bond proceeds in a manner consistent with the plan and may periodically update its rules.
In developing the plan, the Commission must consider and set objectives for the following: use of funds for single-family and multifamily housing; use of funds for new construction, rehabilitation, and home purchases; the housing needs of low-income and moderate-income persons, the elderly, or persons with disabilities; use of funds in coordination with federal, state, and local housing programs for low-income persons; use of funds in urban, rural, suburban, and special areas of the state; use of financing assistance to stabilize and upgrade declining urban neighborhoods; use of financing assistance for economically depressed areas, areas of minority concentration, reservations, and mortgage-deficient areas; the geographical distribution of bond proceeds; and use of financing assistance for implementation of energy efficiency measures in dwellings.
State Finance Committee.
The State Finance Committee (SFC), composed of the Governor, the Lieutenant Governor, and the State Treasurer, is responsible for supervising and controlling the issuance of state bonds, including the general obligation bonds used to finance capital projects in the state's capital and transportation budgets. The SFC does not have any role in issuing the private activity bonds that the Commission uses to fund its housing programs; however, the SFC must be notified before the issuance of any bonds by the Commission in order to promote the orderly offering of obligations in the financial markets.
The Commission is empowered to make mortgage loans directly to borrowers. The length of time that the Commission attorney may serve is increased from two years to four years. The requirement that the SFC be notified in advance of the issuance of bonds by the Commission is removed. The Housing Finance Program and Housing Finance Plan are repealed.
The Commission's declaration of purpose is updated by: