HB 2382 — Promoting the use of surplus public property for public benefit.

H-4627.1THIRDH-3487.1HOUSE SUBSTITUTE HOUSE BILL 2382State of Washington65th Legislature2018 Regular SessionBy House Transportation (originally sponsored by Representatives Ryu, Kagi, and Valdez)READValdezPrefiled FIRST01/04/18. TIME 02/06/18.AN ACT Relating to promoting the use of surplus public property for public benefit;

Read first time 01/08/18.

Referred to Committee on Community Development, Housing & Tribal Affairs.AN ACT Relating to promoting the use of surplus public property for public benefit;

and adding a new section to chapter 39.33 RCW.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:PART 1 - INVENTORY OF STATE PROPERTYSec. 1.  RCW 43.63A.510 and 1993 c 461 s 2 are each amended to read as follows:(1) The department ((shall))shall must work with the ((departments of natural resources, transportation, social and health services, corrections, and general administration)) designated agencies to identify ((and)), catalog, and recommend best use of under-utilized, state-owned land and property suitable for the development of affordable housing for very low-income, low-income or moderate-income households.

The ((departments of natural resources, transportation, social and health services, corrections, and general administrationadministration)) shall)) designated agencies mustshall provide an inventory of real property that is owned or administered by each agency and is vacant or available for lease or sale.

The departmentinventories must work with therevisions designatedshall agenciesbe provided to include in the inventoriesdepartment a consolidated list of any property transactions executed by theNovember agencies1((, under1993, thewith authorityinventory ofrevisions sectionprovided 3each ofNovember this1 act,thereafter))st including the property appraisal, the terms and conditions of sale,each lease,year.(2) orThe transfer,department themust valueconsolidate ofinventories theinto publictwo benefit,groups: and the impact of transaction to the agency.

The inventories ((shall)) with revisions must be provided to the department by November 1((, 1993, with inventory revisions provided each November 1 thereafter))st of each year.(2) The department must consolidate inventories into two groups:

The department shall provide a recommendation, based on this grouping, to the office of financial management and appropriate policy and fiscal committees of the legislature by DecemberNovember 1st of each year.(3)(a)year.(3) Through June 30, 2029, unless specifically prohibited by law, each designated agency that sells real property at fair market value must remit an amount equal to ten percent of the net proceeds to the state treasurer to be deposited in the Washington housing trust fund, pursuant to RCW 43.185.030.

The remittance requirement does not apply to land bank lands, as defined in RCW 79.02.010, real property donated to state institutions of higher education, or real property acquired with cash donations or nonappropriated funds by state institutions of higher education.(b) Permissible uses of the account shall be determined by the department and shall include, but is not limited to:

Brownfield remediation of sites for affordable housing developmentdevelopment; for low-income and very low-income households;

reduction of impact fees for affordable housing developmentdevelopment; for low-income and very low-income households;

preservation of existing affordable housing unitsunits; for low-income and very low-income households;

and the implementation of innovative housing options in bringing to market additional affordable housing forto low-incomemarket.(4) and very low-income households.(4) Upon written request, the department shall provide a copy of the inventory of state-owned and publicly owned lands and buildings to parties interested in developing the sites for affordable housing.(((3))) (5) As used in this section:(a) "Affordable housing" means residential housing that is rented or owned by a person who qualifies as a very low-income, low-income, or moderate-income household or who is from a special needs population, and whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income.(b) "Very low-income household" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the median income, adjusted for household size, for the county where the affordable housing is located.(c) "Low-income household" means a single person, family, or unrelated persons living together whose income is more than fifty percent but is at or below eighty percent of the median income where the affordable housing is located.(d) "Moderate-income household" means a single person, family, or unrelated persons living together whose income is more than eighty percent but is at or below one hundred fifteen percent of the median income where the affordable housing is located.(e) "Affordable housing development" means state-owned real property appropriate for sale, transfer, or lease to an affordable housing developer capable of:(i) Receiving the property within one hundred eighty days;

and(ii) Creating affordable housing units for occupancy within thirty-six months from the time of transfer.(f) "Designated agencies" means the Washington state patrol, the state parks and recreation commission, and the departments of natural resources, transportation, social and health services, corrections, and enterprise services.(g) "Innovative housing options" means those construction and building practices that create an alternative affordable housing product including, but not limited to, microhousing, modular housing, or other nontraditional housing models.(h)models.PART "Net2 proceeds"- meansRIGHT theOF saleFIRST priceREFUSAL less:(i)FOR TheGOVERNMENT originalAGENCIESSec. 2.  RCW purchase43.17.400 priceand or,2015 ifc 225 s 64 are each amended to read as follows:(1) ((The definitions in this subsection apply throughout this section unless the originalcontext purchaseclearly pricerequires isotherwise.(a) unknown,"Disposition" means sales, exchanges, or other actions resulting in a reasonabletransfer estimateof land ownership.(b) "State agencies" includes:(i) The department of thenatural valueresources established in chapter 43.30 RCW;(ii) The department of thefish propertyand atwildlife thatestablished time;(ii)in Realchapter estate43.300 brokerRCW;(iii) commissionThe department of transportation established in chapter 47.01 RCW;(iv) The parks and fees;(iii)recreation Transactioncommission costs;established in chapter 79A.05 RCW;

and(iv) Any debt or lien to the property.PART 2 - RIGHT OF FIRST REFUSAL FOR GOVERNMENT AGENCIESSec. 2.  RCW 43.17.400 and 2015 c 225 s 64 are each amended to read as follows:(1) ((The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) "Disposition" means sales, exchanges, or other actions resulting in a transfer of land ownership.(b) "State agencies" includes:(i) The department of natural resources established in chapter 43.30 RCW;(ii) The department of fish and wildlife established in chapter 43.300 RCW;(iii) The department of transportation established in chapter 47.01 RCW;(iv) The parks and recreation commission established in chapter 79A.05 RCW;

and(c) The governing authority of each county, city, town, special purpose district, and federally recognized Indian tribe in which the land is located.(2) The state agency must dispose of the property,property for continued public benefit as defined in section 3 of this act, to any governmental entity responding within the notification period, uponwith mutualpriority agreementgiven reachedto withinstate aagencies. reasonable time period after the response is received.

Priority must be given to state agencies.

Consideration must include appraisal costs, debt service, all closing costs, and any other liabilities to the agency, municipality, or political subdivision.

Any(4) transfer, lease, or other disposition of property authorized under this section must be consistent with existing locally adopted comprehensive plans as described in RCW 36.70A.070.(4) This section is deemed to provide a discretionary alternative method for the doing of the things authorized herein, and shall not be construed as imposing any additional condition upon the exercise of any other powers vested in any state agency, municipality, or political subdivision.(5) No transfer, lease, or other disposition of property for public benefit purposes made pursuant to any other provision of law prior to the effective date of this section may be construed to be invalid solely because the parties thereto did not comply with the procedures of this section.(6) TheFor transferpurposes at no cost, lease, or other disposal of surplusthis realsection, property"public forbenefit" publicmeans benefit purposes is deemed a lawful purpose of any state agency, municipality, or political subdivision, for which accounts are kept on an enterprise fund or equivalent basis, regardless of the primary purpose orincluding, functionbut of such agency.(7) This section does not applylimited toto, the sale or transfer of any state forestlands, any state lands or property granted to the state by the federal government for the purposes of common schools or education, or subject to a legal restriction that would be violated by compliance with this section.(8) For purposes of this section:(a) "Public benefit" means affordable housing for low-income and very low-income households as defined in RCW 43.63A.510, andthat relatedhas facilitiesa thatsubstantial supportand thelegitimate goalsnexus ofto affordablea housingpublic developmentservice inor providinga economicpublic andinterest.Sec. 4.  RCW social35.94.040 stabilityand for1973 low-income1st persons;ex.s.

and(b) "Surplus public property" means excess real property that is not required for the needs of or the discharge of the responsibilities of the state agency, municipality, or political subdivision.Sec. 4.  RCW 35.94.040 and 1973 1st ex.s.

PROVIDED, That if accounts or funds other than the state patrol highway account have contributed to the purchase or improvement of the real property, the office of financial management shall determine the proportional equity of each account or fund in the property and improvements, and shall direct the proceeds to be deposited proportionally therein.(2) Through June 30, 2029, unless specifically prohibited by law, any real property sold at fair market value must include a remittance of an amount equal to ten percent of the net proceeds to the state treasurer to be deposited in the Washington housing trust fund, pursuant to RCW 43.185.030.43.185.030.Sec. 7.  RCW 43.82.010 and 2015 c 99 s 1 are each amended to read as follows:(1) The director of enterprise services, on behalf of the agency involved and after consultation with the office of financial management, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate.

For purposes of this subsection, "net proceeds" means the sale price less the original purchase price, real estate broker commission and fees, transaction costs, and any debt or lien to the property.Sec. 7.  RCW 43.82.010 and 2015 c 99 s 1 are each amended to read as follows:(1) The director of enterprise services, on behalf of the agency involved and after consultation with the office of financial management, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate.

Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW and Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.(6) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.(7)(a)acknowledged.(7) Unless otherwise provided, all moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund.

Through June 30, 2029, unless specifically prohibited by law, any real property sold at fair market value must include a remittance of an amount equal to ten percent of the net proceeds to the state treasurer to be deposited in the Washington housing trust fund, pursuant to RCW 43.185.030.43.185.030.(8) The department may not enter into equal value exchanges or property acquisitions for building improvements without first consulting with the office of financial management and the joint transportation committee.--- END ---

For purposes of this subsection, "net proceeds" means the sale price less the original purchase price, real estate broker commission and fees, transaction costs, and any debt or lien to the property.(b) The remittance required by this subsection does not apply to the sale of any surplus real property acquired for use related to, included in any planned design of, or that is in the vicinity of, the following planned or implemented programs:

State route 520 bridge replacement and HOV program;

Alaskan Way viaduct replacement project;

southbound Tacoma Narrows bridge;

Interstate 405 corridor program;

Puget Sound gateway program;

and the U.S.

395 North Spokane corridor program.(8) The department may not enter into equal value exchanges or property acquisitions for building improvements without first consulting with the office of financial management and the joint transportation committee.--- END ---