SB 5375 — Concerning a study of the differences in low-income housing development in urban and rural locations.

S-0990.1S-0657.2 SUBSTITUTE SENATE BILL 5375 State of Washington 67th Legislature 2021 Regular Session By Senate Housing & Local Government (originally sponsored by Senators Warnick, Fortunato, Rolfes, Van De Wege, and Wilson, J.)J. READ FIRST TIME 02/11/21.

ANRead ACTfirst Relatingtime to01/28/21. the provision of technical assistance for low- income housing development in rural locations;

amendingReferred RCWto 43.185.080;Committee on Housing & Local Government.

andAN creatingACT Relating to a newstudy section.of the differences in low-income housing development in urban and rural locations;

and creating new sections.

The legislature finds that affordable housing is reaching crisis levels in urban areas and in rural areas.

RuralHowever, rural counties appear to be at a disadvantage to be competitive for public housing tax money.

The legislature finds that in order to appropriately address suchaffordable housing issues, it is important thatto ruralhave communitiesa becomplete providedunderstanding withof the appropriatedifferences levelsbetween ofrural technicaland assistanceurban inareas orderand to maximize the numberbarriers ofto andbuilding financing available for affordable housing projects in such rural areas.

The legislature finds that the joint legislative audit and review committee is the best entity to review how affordable housing is built in rural areas, what barriers are present, and how these barriers may be overcome.

NEW SECTION.

RCWThe 43.185.080joint legislative audit and 1991review ccommittee 356must sconduct 6a arestudy eachof amendedthe todifferences readin aslow-income follows:housing development in urban and rural locations.

(1) The departmentreview mayshall useinclude moneysidentifying from the housingamount trustof fundpublicly andsubsidized otherlow-income legislativehousing appropriations,developed butin noturban appropriationsand fromrural capitalcounties, bondas proceeds,defined toby provideRCW preconstructionp. technical assistance to eligible recipients seeking to construct, rehabilitate, or finance housing-related services for very low and low-income persons.

The1 departmentSB shall5375 emphasize82.14.370, providingbetween preconstruction2010 technicaland p.2020, and comparing it with the demographics and populations of these counties.

1To SSBthe 5375extent assistancepracticable, servicesthe tostudy ruralshall areasreview andcontributing smallfactors citiesthat may impact differences in the amount of development in urban and towns.rural counties.

The departmentstudy mayshall contractalso withdetermine nonprofitwhat organizationsfunding sources have been provided to providelow-income thishousing technicalprojects assistance.built in rural counties and in urban counties.

TheThis departmentstudy mayshall contractbe forcompleted anyby ofDecember the2022. following services:

(a) Financial planning and packaging for housing projects, including alternative ownership programs, such as limited equity partnerships and syndications;

(b) Project design, architectural planning, and siting;

(c) Compliance with planning requirements;

(d) Securing matching resources for project development;

(e) Maximizing local government contributions to project development in the form of land donations, infrastructure improvements, waivers of development fees, locally and state-managed funds, zoning variances, or creative local planning;

(f) Coordination with local planning, economic development, and environmental, social service, and recreational activities;

(g) Construction and materials management;

and (h) Project maintenance and management.

(2) The department shall publish requests for proposals which specify contract performance standards, award criteria, and contractor requirements.

In evaluating proposals, the department shall consider the ability of the contractor to provide technical assistance to low and very low-income persons and to persons with special housing needs.

(3) During the 2021-2023 fiscal biennium, and subject to the availability of amounts appropriated for this specific purpose, the department shall contract with one or more affordable housing development consultants to provide technical and preconstruction assistance to rural communities in eastern and western Washington.

The consultant contracts must include performance measures, such as increases in the number of low-income housing projects well positioned for competitive funding rounds under the housing trust fund program or other capital financing programs, the success of such project applications in obtaining capital financing awards, and the development of new affordable housing units in rural communities.

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