Affordable housing financing

AN ACT Relating to expanding housing supply by supporting the 1
ability of public housing authorities to finance affordable housing 2
developments; and amending RCW 35.82.070. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 35.82.070 and 2023 c 133 s 1 are each amended to 5
read as follows: 6
An authority shall constitute a public body corporate and 7
politic, exercising public and essential governmental functions, and 8
having all the powers necessary or convenient to carry out and 9
effectuate the purposes and provisions of this chapter, including the 10
following powers in addition to others herein granted:11
(1) To sue and be sued; to have a seal and to alter the same at 12
pleasure; to have perpetual succession; to make and execute contracts 13
and other instruments, including but not limited to partnership 14
agreements and joint venture agreements, necessary or convenient to 15
the exercise of the powers of the authority; to participate in the 16
organization or the operation of a nonprofit corporation which has as 17
one of its purposes to provide or assist in the provision of housing 18
for persons of low income; and to make and from time to time amend 19
and repeal bylaws, rules and regulations, not inconsistent with this 20
H-0091.1
HOUSE BILL 1075
State of Washington 69th Legislature 2025 Regular Session
By Representatives Walen, Leavitt, Ramel, Duerr, Shavers, Doglio,
Tharinger, Peterson, Wylie, Nance, Berg, Ormsby, Lekanoff, Scott,
Salahuddin, Reeves, and Hill
Prefiled 12/16/24. Read first time 01/13/25. Referred to Committee
on Housing.
p. 1 HB 1075
chapter, to carry into effect the powers and purposes of the 1
authority. 2
(2) Within its area of operation: To prepare, carry out, acquire, 3
lease and operate housing projects; to provide for the construction, 4
reconstruction, improvement, alteration or repair of any housing 5
project or any part thereof; to agree to rent or sell dwellings 6
forming part of the projects to or for persons of low income. Where 7
an agreement or option is made to sell a dwelling to a person of low 8
income, the authority may convey the dwelling to the person upon 9
fulfillment of the agreement irrespective of whether the person is at 10
the time of the conveyance a person of low income. Leases, options, 11
agreements, or conveyances may include such covenants as the 12
authority deems appropriate to assure the achievement of the 13
objectives of this chapter. 14
(3) To acquire, lease, rent, sell, or otherwise dispose of any 15
commercial space located in buildings or structures containing a 16
housing project or projects. 17
(4) To arrange or contract for the furnishing by any person or 18
agency, public or private, of services, privileges, works, or 19
facilities for, or in connection with, a housing project or the 20
occupants thereof; and (notwithstanding anything to the contrary 21
contained in this chapter or in any other provision of law) to 22
include in any contract let in connection with a project, 23
stipulations requiring that the contractor and any subcontractors 24
comply with requirements as to minimum wages and maximum hours of 25
labor, and comply with any conditions which the federal government 26
may have attached to its financial aid of the project.27
(5) To lease or rent any dwellings, houses, accommodations, 28
lands, buildings, structures or facilities embraced in any housing 29
project and (subject to the limitations contained in this chapter) to 30
establish and revise the rents or charges therefor; to own or manage 31
buildings containing a housing project or projects as well as 32
commercial space or other dwelling units that do not constitute a 33
housing project as that term is defined in this chapter. However, 34
notwithstanding the provisions under subsection (1) of this section, 35
dwelling units made available or sold to persons of low income, 36
together with functionally related and subordinate facilities, shall 37
occupy at least 50 percent of the interior space in the total 38
development owned by the authority or at least 50 percent of the 39
total number of units in the development owned by the authority, 40
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whichever produces the greater number of units for persons of low 1
income, and for mobile home parks, the mobile home lots made 2
available to persons of low income shall be at least 50 percent of 3
the total number of mobile home lots in the park owned by the 4
authority; to own, hold, and improve real or personal property; to 5
purchase, lease, obtain options upon, acquire by gift, grant, 6
bequest, devise, or otherwise including financial assistance and 7
other aid from the state or any public body, person or corporation, 8
any real or personal property or any interest therein; to acquire by 9
the exercise of the power of eminent domain any real property; to 10
sell, lease, exchange, transfer, assign, pledge, or dispose of any 11
real or personal property or any interest therein; to sell, lease, 12
exchange, transfer, or dispose of any real or personal property or 13
interest therein at less than fair market value to a governmental 14
entity for any purpose when such action assists the housing authority 15
in carrying out its powers and purposes under this chapter, to a low-16
income person or family for the purpose of providing housing for that 17
person or family, or to a nonprofit corporation provided the 18
nonprofit corporation agrees to sell the property to a low-income 19
person or family or to use the property for the provision of housing 20
for persons of low income for at least 20 years; to insure or provide 21
for the insurance of any real or personal property or operations of 22
the authority against any risks or hazards; to procure or agree to 23
the procurement of insurance or guarantees from the federal 24
government of the payment of any bonds or parts thereof issued by an 25
authority, including the power to pay premiums on any such insurance.26
(6) To contract with a property management services company for 27
purposes of operating a housing project. Rental and other project 28
revenues collected by a property management services company from the 29
housing project's tenants and used to pay administrative operating 30
and ordinary maintenance costs incurred by the company under the 31
terms of the contract with the authority shall be treated as private 32
funds, and any resulting services as executed at the cost of the 33
property management services company and the housing project's 34
tenants, until the net operating revenues are distributed to the 35
authority for its exclusive use and control. For the purposes of this 36
subsection, "ordinary maintenance" only includes: Routine repairs 37
related to unit turnover work; grounds and parking lot upkeep; and 38
repairs and cleaning work needed to keep a property in a clean, safe, 39
sanitary, and rentable condition that are customarily undertaken or 40
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administered by residential property management services companies. 1
"Ordinary maintenance" does not include repairs that would be 2
considered replacement capital repairs or scheduled regular 3
maintenance work on plumbing, electrical, or HVAC/R systems or their 4
components. 5
(7) To invest any funds held in reserves or sinking funds, or any 6
funds not required for immediate disbursement, in property or 7
securities in which savings banks may legally invest funds subject to 8
their control; to purchase its bonds at a price not more than the 9
principal amount thereof and accrued interest, all bonds so purchased 10
to be canceled. 11
(8) Within its area of operation: To investigate into living, 12
dwelling and housing conditions and into the means and methods of 13
improving such conditions; to determine where slum areas exist or 14
where there is a shortage of decent, safe and sanitary dwelling 15
accommodations for persons of low income; to make studies and 16
recommendations relating to the problem of clearing, replanning and 17
reconstructing of slum areas, and the problem of providing dwelling 18
accommodations for persons of low income, and to cooperate with the 19
city, the county, the state or any political subdivision thereof in 20
action taken in connection with such problems; and to engage in 21
research, studies and experimentation on the subject of housing.22
(9) Acting through one or more commissioners or other person or 23
persons designated by the authority: To conduct examinations and 24
investigations and to hear testimony and take proof under oath at 25
public or private hearings on any matter material for its 26
information; to administer oaths, issue subpoenas requiring the 27
attendance of witnesses or the production of books and papers and to 28
issue commissions for the examination of witnesses who are outside of 29
the state or unable to attend before the authority, or excused from 30
attendance; to make available to appropriate agencies (including 31
those charged with the duty of abating or requiring the correction of 32
nuisances or like conditions, or of demolishing unsafe or insanitary 33
structures within its area of operation) its findings and 34
recommendations with regard to any building or property where 35
conditions exist which are dangerous to the public health, morals, 36
safety or welfare. 37
(10) To initiate eviction proceedings against any tenant as 38
provided by law. Activity occurring in any housing authority unit 39
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that constitutes a violation of chapter 69.41, 69.50, or 69.52 RCW 1
shall constitute a nuisance for the purpose of RCW 59.12.030(5).2
(11) To exercise all or any part or combination of powers herein 3
granted. 4
No provisions of law with respect to the acquisition, operation 5
or disposition of property by other public bodies shall be applicable 6
to an authority unless the legislature shall specifically so state.7
(12) To agree (notwithstanding the limitation contained in RCW 8
35.82.210) to make such payments in lieu of taxes as the authority 9
finds consistent with the achievement of the purposes of this 10
chapter. 11
(13) Upon the request of a county or city, to exercise any powers 12
of a community renewal agency under chapter 35.81 RCW or a public 13
corporation, commission, or authority under chapter 35.21 RCW.14
(14) To exercise the powers granted in this chapter within the 15
boundaries of any city, town, or county not included in the area in 16
which such housing authority is originally authorized to function: 17
PROVIDED, HOWEVER, The governing or legislative body of such city, 18
town, or county, as the case may be, adopts a resolution declaring 19
that there is a need for the authority to function in such territory.20
(15) To administer contracts for assistance payments to persons 21
of low income in accordance with section 8 of the United States 22
Housing Act of 1937, as amended by Title II, section 201 of the 23
Housing and Community Development Act of 1974, P.L. 93-383.24
(16) To sell at public or private sale, with or without public 25
bidding, for fair market value, any mortgage or other obligation held 26
by the authority. 27
(17) To the extent permitted under its contract with the holders 28
of bonds, notes, and other obligations of the authority, to consent 29
to any modification with respect to rate of interest, time, and 30
payment of any installment of principal or interest security, or any 31
other term of any contract, mortgage, mortgage loan, mortgage loan 32
commitment, contract, or agreement of any kind to which the authority 33
is a party. 34
(18) To make, purchase, participate in, invest in, take 35
assignments of, or otherwise acquire loans to persons of low income 36
to enable them to acquire, construct, reconstruct, rehabilitate, 37
improve, lease, or refinance their dwellings, and to take such 38
security therefor as is deemed necessary and prudent by the 39
authority. 40
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(19) To make, purchase, participate in, invest in, take 1
assignments of, or otherwise acquire loans for the acquisition, 2
construction, reconstruction, rehabilitation, improvement, leasing, 3
or refinancing of land, buildings, or developments for housing for 4
persons of low income. For purposes of this subsection, development 5
shall include either land or buildings or both. 6
(a) Any development financed under this subsection shall be 7
subject to an agreement that for at least 20 years the dwelling units 8
made available to persons of low income together with functionally 9
related and subordinate facilities shall occupy at least 50 percent 10
of the interior space in the total development or at least 50 percent 11
of the total number of units in the development, whichever produces 12
the greater number of units for persons of low income. For mobile 13
home parks, the mobile home lots made available to persons of low 14
income shall be at least 50 percent of the total number of mobile 15
home lots in the park. During the term of the agreement, the owner 16
shall use its best efforts in good faith to maintain the dwelling 17
units or mobile home lots required to be made available to persons of 18
low income at rents affordable to persons of low income. The 20-year 19
requirement under this subsection (19)(a) shall not apply when an 20
authority finances the development by nonprofit corporations or 21
governmental units of dwellings or mobile home lots intended for sale 22
to persons of low and moderate income, and shall not apply to 23
construction or other short-term financing provided to nonprofit 24
corporations or governmental units when the financing has a repayment 25
term of one year or less. 26
(b) In addition, if the development is owned by a for-profit 27
entity, the dwelling units or mobile home lots required to be made 28
available to persons of low income shall be rented , and have rents 29
affordable, to persons whose incomes do not exceed 80 percent of the 30
area median income, adjusted for household size ((, and shall have 31
unit or lot rents that do not exceed 15 percent of area median 32
income, adjusted for household size, unless rent subsidies are 33
provided to make them affordable to persons of low income)).34
For purposes of this subsection (19)(b), if the development is 35
owned directly or through a partnership by a governmental entity or a 36
nonprofit organization, which nonprofit organization is itself not 37
controlled by a for-profit entity or affiliated with any for-profit 38
entity that a nonprofit organization itself does not control, it 39
shall not be treated as being owned by a for-profit entity when the 40
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governmental entity or nonprofit organization exercises legal control 1
of the ownership entity and in addition, (i) the dwelling units or 2
mobile home lots required to be made available to persons of low 3
income are rented to persons whose incomes do not exceed 80 percent 4
of the area median income, adjusted for household size, and (ii) the 5
development is subject to an agreement that transfers ownership to 6
the governmental entity or nonprofit organization or extends an 7
irrevocable right of first refusal to purchase the development under 8
a formula for setting the acquisition price that is specified in the 9
agreement. 10
(c) Commercial space in any building financed under this 11
subsection that exceeds four stories in height shall not constitute 12
more than 20 percent of the interior area of the building. Before 13
financing any development under this subsection the authority shall 14
make a written finding that financing is important for project 15
feasibility or necessary to enable the authority to carry out its 16
powers and purposes under this chapter. 17
(20) To contract with a public authority or corporation, created 18
by a county, city, or town under RCW 35.21.730 through 35.21.755, to 19
act as the developer for new housing projects or improvement of 20
existing housing projects. 21
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