SB 6018 — Concerning the housing finance commission.

S-4118.1S-3630.1 SUBSTITUTE SENATE BILL 6018 State of Washington 69th Legislature 2026 Regular Session By Senate Housing (originally sponsored by Senators Trudeau, Alvarado, Bateman, and Nobles)Nobles READPrefiled FIRST01/07/26. TIME 01/22/26.

Read first time 01/12/26.

Referred to Committee on Housing.

adding a new section to chapter 43.180 RCW;

NEW SECTION.

A new section is added to chapter 43.180 RCW to read as follows:

The legislature finds that the commission is not intended to function as a retail mortgage lender.

Nothing in this chapter authorizes the commission to compete with private financial institutions in the origination of residential mortgage loans to individual homebuyers.

The authority granted in RCW 43.180.050(1)(c) is intended solely to streamline financing for multifamily and other nonowner-occupied housing while preserving the role of licensed mortgage lenders in the residential mortgage lending market.

Sec.

2.

It is declared to be the public policy of the state and a recognized governmental function to assist in making affordable and decent housing available throughout the state and by so doing to p.contribute to the general welfare.

1 SSB 6018 contribute to the general welfare.

The state's economy, which is dependent on the timber, wood products, and construction industries, has been damaged by inadequate investment in housing constructionp. and rehabilitation.

1 SB 6018 construction and rehabilitation.

3.2.

(c) Make mortgage loans ((toto borrowers and make loans to or deposits with mortgage lenders for the purpose of making))making and mortgage loans,loans; but not loans or mortgage p.

2 SSB 6018 loans for owner-occupied residential home purchases or refinancing, except as expressly authorized under (d) of this subsection;

(2) ExceptThe as expressly authorized under subsection (1)(d) of this section, the commission mayshall notestablish originateeligibility orstandards makefor residentialeligible mortgagepersons, loansconsidering directlyat toleast natural persons for the purchasefollowing orfactors: refinancing of owner-occupied single-family housing.

(3) The commission shall establish eligibility standards for eligible persons, considering at least the following factors:

(b)p. Family size;

2 SB 6018 (b) Family size;

(4) The state auditor shall audit the books, records, and affairs of the commission annually to determine, among other things, if the use of bond proceeds complies with the general plan of housing finance objectives including compliance with the objective for the use of financing assistance for implementation of cost-effective energy efficiency measures in dwellings.

4.3.

(1) Establish in resolutions relating to any issuance of bonds, or in any financing documents relating to such issuance, such standards and requirements applicable to the purchase of mortgages and mortgage loans or the making of loans ((toto mortgage lenders))lenders consistentand withmortgage RCWloans 43.180.050to borrowers as the commission deems necessary or p.desirable, including but not limited to:

3 SSB 6018 desirable, including but not limited to:

(3)p. Make and execute contracts and all other instruments necessary or convenient for the exercise of its purposes or powers, including but not limited to contracts or agreements for the origination, servicing, and administration of mortgages or mortgage loans, and the borrowing of money;

3 SB 6018 (3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its purposes or powers, including but not limited to contracts or agreements for the origination, servicing, and administration of mortgages or mortgage loans, and the borrowing of money;

These expenditures may be made only from p.funds consisting of the commission's receipts from fees and charges, grants and contributions, the proceeds of bonds issued by the commission, and other revenues;

4 SSB 6018 funds consisting of the commission's receipts from fees and charges, grants and contributions, the proceeds of bonds issued by the commission, and other revenues;

(11)p. Take assignments of leases and rentals;

4 SB 6018 (11) Take assignments of leases and rentals;

(15) Employ, contract with, or engage engineers, architects, attorneys, financial advisors, bond underwriters, mortgage lenders, mortgage administrators, housing construction or financing experts, other technical or professional assistants, and such other personnel p.as are necessary.

5 SSB 6018 as are necessary.

This subsection shall apply to regulatory agreements andp. covenants previously entered into by the commission as well as regulatory agreements and covenants entered into by the commission on or after July 27, 1997;

5 SB 6018 and covenants previously entered into by the commission as well as regulatory agreements and covenants entered into by the commission on or after July 27, 1997;

5.4.

The policies shall provide for 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 p.in obtaining the lowest possible interest rates on the bonds issued by the commission.

6 SSB 6018 in obtaining the lowest possible interest rates on the bonds issued by the commission.

However, the commission may retain an attorney for longer than ((two)) four years when necessary top. complete work on a particular bond issue.