SB 5746 — Providing for adequate provisions for low-income homeownership opportunities.

S-1586.1SUBSTITUTES-1080.1SENATE SENATE BILL 5746State of Washington66th Legislature2019 Regular SessionBySenateSessionBySenators HousingSaldaña, StabilityNguyen, &and AffordabilityZeigerRead (originallyfirst sponsoredtime by01/30/19.Referred Senatorsto Saldaña,Committee Nguyen,on andHousing Zeiger)READStability FIRST& TIMEAffordability.AN 02/19/19.AN ACT Relating to adequate provisions for low-income homeownership opportunities;

adding a new section to chapter 43.185A RCW;

and providing an effective date.BEdate; IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec.

and declaring an emergency.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec.

(e) Homeownership is a critical component to an effective continuum of housing that impacts the success of neighborhoods as places of opportunity for positive life outcomes for residents, especially neighborhoods with families with children but that state funding for low-income homeownership projects has not been adequately funded over the last several years and has received only 3.84 percent of available state housing trust fund dollars since 2006.(f)2006.Sec. Appropriations for low-income homeownership projects have not been adequately provided between 2013 and 2018, with only 4.26 percent of housing trust fund dollars being invested in such projects.Sec.

RCW 43.185.050 and 2018 c 223 s 4 are each amended to read as follows:(1) The department must use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loans or grant projects ((thatthat will provide housing for persons and families with))towith meet the special housing needs ((andand with incomes at or below fifty((fifty))eighty percent of the median family income for the county or standard metropolitan statistical area where the project is located))oflocated.(a)(i) low-income households as defined in RCW 43.185A.010.(a)(i) At least thirty percent of these moneys used in any given funding cycle must be for the benefit of projects located in rural areas of the state as defined by the department.(ii) At least thirteenfifteen percent of the moneys used in any given funding cycle must be used for the benefit of homeownership projects for low-income households at or below eighty percent of the median family income as definedprovided in RCWchapter 43.185A.010.43.185A RCW.

If the department imposes a funding limit on homeownership projects, that limit must be noat lessleast than thirty percent ofhigher than the limit placed on multifamilyrental projects.(b) If the department determines that it has not received an adequate number of suitable applications for rural or homeownership projects during any given funding cycle, the department may allocate unused moneys for other projects ((in nonrural areas of the state)).(2) Activities eligible for assistance from the housing trust fund and other legislative appropriations include, but are not limited to:(a) New construction, rehabilitation, or acquisition of low and very low-income housing units;(b) Rent subsidies;(c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;(d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;(e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;(f) Shelters and related services for the homeless, including emergency shelters and overnight youth shelters;(g) Mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;(h) Mortgage insurance guarantee or payments for eligible projects;(i) Down payment or closing cost assistance for eligible first-time home buyersbuyers;(j) as defined in RCW 43.185A.010;(j) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing;(k) Projects making housing more accessible to families with members who have disabilities;

The department must adopt policies for residential homeownership housing, occupied by low-income households, which specify the percentage of family income that may be spent on monthly housing costs, including utilities other than telephone, to qualify as affordable housing.(2) "Contracted amount" has the same meaning as provided in RCW 43.185.020.(3) "Department" means the department of commerce.(4) "Director" means the director of the department of commerce.(5) "First-time home buyer" means an individual who meets any of the following criteria:(a) An individual or ((his or her))the individual's spouse ((or domestic partner)) who ((have not owned a home))has had no ownership in a principal residence during the three-year period ((prior to purchase of a home))ending on the date of purchase of the property;(b) A single parent who has only owned a home with a former spouse while married;(c) An individual who is a displaced homemaker asand definedhas only owned a home with a spouse;(d) An individual who has only owned a principal residence not permanently affixed to a permanent foundation in 24accordance C.F.Rwith Sec.applicable regulations;(e) An individual who has only owned a property that was not in compliance with state, local, or model building codes and that cannot be brought into compliance for less than the cost of constructing a permanent structure.(6) "Low-income household" means a single person, family or unrelated persons living together whose adjusted income is less than eighty percent of the median family income, adjusted for household size, for the county where the project is located.Sec.

93.2 as it exists on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section, and has only owned a home with a spouse;(d) An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.(6) "Low-income household" means a single person, family or unrelated persons living together whose adjusted income is less than eighty percent of the median family income, adjusted for household size, for the county where the project is located.Sec.

A target of thirteenfifteen percent of the moneys used in any given funding cycle is established for the purpose of promoting homeownership projects.

AThis newact section is addednecessary tofor chapterthe 43.185Aimmediate RCWpreservation toof readthe aspublic follows:Beginningpeace, Decemberhealth, 1,or 2021,safety, andor everysupport yearof thereafter, the departmentstate mustgovernment reportand toits theexisting appropriatepublic committeesinstitutions, ofand thetakes legislatureeffect onJuly the1, following2019.--- forEND every--- previous funding cycle:

The number of homeownership and multifamily projects funded by housing trust fund moneys;

the percentage of housing trust fund investments made to homeownership and multifamily projects;

and the total number of households being served at up to eighty percent of the area median income, up to fifty percent of the area median income, and up to thirty percent of the area median income, for both homeownership and multifamily projects.NEW SECTION.  Sec.

7.

This act takes effect January 1, 2020.--- END ---