The Washington State Housing Finance Commission (Commission) is a public body created in 1983 to act as a financial conduit that, 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 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.  The Commission issues tax-exempt bonds to provide below market-rate financing for sustainable energy projects, nonprofit facilities, and beginning farmers and ranchers.

Authority Relating to Mortgage Loans. The Commission has a number of other powers, several of which include the authority to:

• invest in, purchase, or make commitments to purchase or take assignments from mortgage lenders of mortgages or mortgage loans; and
• make loans to or deposits with mortgage lenders for the purpose of making mortgage loans.

Selection of Bond Counsel. The Commission is required to select bond counsel according to written policies it adopts.  This includes the creation and maintenance of a roster of attorneys whom the Commission believes possess the requisite special expertise and professional standing to provide bond counsel opinions which would be accepted by the underwriters, bondholders, and other members of the financial community, and which would be in furtherance of the public interest in obtaining the lowest possible interest rates on the bonds issued by the Commission.

At least once every two calendar years, the Commission must re-select bond counsel. The Commission may retain an attorney for longer than two years when necessary to complete work on a particular bond issue. An attorney previously retained may be selected again but only after the Commission has provided other attorneys on the roster with an opportunity to be selected and has made a required fee schedule review.

Notice Requirement for Bond Issuances. Before the Commission issues bonds, it must notify the chair or the chair's designee of the State Finance Committee of the Office of the Washington State Treasurer of the issuance.

Housing Finance Program. In 1994, the Legislature created a housing finance program within the Commission to provide subsidized or unsubsidized mortgage financing for single-family home ownership to first-time homebuyers meeting certain income limits. According to the Commission, the program authority has not been used.

Housing Finance Plan. The 1983 law establishing the Commission, required the Commission to adopt a general plan of housing finance objectives to be implemented by the Commission during the period of the plan. It authorized the Commission to periodically update the plan.

Purpose. The legislative intent as to the Commission's purpose is revised to:

• specify that it is a constituted authority;
• remove a restriction against using public funds; and
• change the term disabled persons to individuals with disabilities.

Authority to Make Mortgage Loans to Borrowers. In addition to its authority to acquire mortgage loans from lenders, the Commission is empowered to make mortgage loans to borrowers. It may establish standards and requirements, including:

• the location and other characteristics of single-family housing or multifamily housing to be financed by mortgage loans;
• the terms and conditions of mortgage loans made;
• the amounts and types of insurance coverage required on mortgage loans;
• the representations and warranties of borrowers confirming compliance with such standards and requirements; and
• any other matters related to the making of loans to borrowers as deemed relevant by the Commission.

Selection of Bond Counsel. The two-year cycle of re-selecting bond counsel is increased to every four years.

Notice Requirements for Bond Issuances. The requirement for advance notice to the chair of the State Finance Committee of bond issuances by the Commission is repealed.

Housing Finance Program. The 1994 program is repealed.

Housing Finance Plan. The section requiring the plan is repealed.