Housing finance commission

AN ACT Relating to the housing finance commission; amending RCW 1
43.180.010, 43.180.050, 43.180.080, 43.180.090, and 43.180.150; and 2
repealing RCW 43.180.220, 43.180.230, 43.180.240, and 43.180.070.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 43.180.010 and 1983 c 161 s 1 are each amended to 5
read as follows: 6
It is declared to be the public policy of the state and a 7
recognized governmental function to assist in making affordable and 8
decent housing available throughout the state and by so doing to 9
contribute to the general welfare. Decent housing for the people of 10
our state is a most important public concern. Interest rates and 11
construction costs have made it impossible for many Washington 12
citizens to purchase their own homes. Older people, ((disabled 13
persons)) individuals with disabilities , and low and moderate-income 14
families often cannot afford to rent decent housing. There exists 15
throughout the state a serious shortage of safe, sanitary and energy 16
efficient housing available at prices within the financial means of 17
our citizens. General economic development within the state is also 18
impeded by a lack of affordable housing. The state's economy, which 19
is dependent on the timber, wood products, and construction 20
industries, has been damaged by inadequate investment in housing 21
H-2576.1
HOUSE BILL 2236
State of Washington 69th Legislature 2026 Regular Session
By Representatives Zahn, Peterson, Reed, Leavitt, Macri, and Hill
Prefiled 01/02/26. Read first time 01/12/26. Referred to Committee
on Housing.
p. 1 HB 2236
construction and rehabilitation. The result has been high 1
unemployment and economic hardship affecting the prosperity of all 2
the people of the state, particularly those in the wood products 3
industry. 4
It is the purpose of this chapter to establish a state housing 5
finance commission to act as a constituted authority and financial 6
conduit which, without ((using public funds or )) lending the credit 7
of the state or local government, can issue nonrecourse revenue bonds 8
and participate in federal, state, and local housing programs and 9
thereby make additional funds available at affordable rates to help 10
provide housing throughout the state. It is also a primary purpose of 11
this chapter to encourage the use of Washington state forest products 12
in residential construction. This chapter is enacted to accomplish 13
these and related purposes and shall be liberally construed to carry 14
out its purposes and objectives. 15
Sec. 2. RCW 43.180.050 and 2013 c 13 s 1 are each amended to 16
read as follows: 17
(1) In addition to other powers and duties prescribed in this 18
chapter, and in furtherance of the purposes of this chapter to 19
provide decent, safe, sanitary, and affordable housing for eligible 20
persons, the commission is empowered to: 21
(a) Issue bonds in accordance with this chapter;22
(b) Invest in, purchase, or make commitments to purchase or take 23
assignments from mortgage lenders of mortgages or mortgage loans;24
(c) Make mortgage loans to borrowers and make loans to or 25
deposits with mortgage lenders for the purpose of making mortgage 26
loans; 27
(d) Make loans for down payment assistance to homebuyers in 28
conjunction with other commission programs; and 29
(e) Participate fully in federal and other governmental programs 30
and to take such actions as are necessary and consistent with this 31
chapter to secure to itself and the people of the state the benefits 32
of those programs and to meet their requirements, including such 33
actions as the commission considers appropriate in order to have the 34
interest payments on its bonds and other obligations treated as tax 35
exempt under the code. 36
(2) The commission shall establish eligibility standards for 37
eligible persons, considering at least the following factors:38
(a) Income; 39
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(b) Family size; 1
(c) Cost, condition, and energy efficiency of available 2
residential housing; 3
(d) Availability of decent, safe, and sanitary housing;4
(e) Age or infirmity; and 5
(f) Applicable federal, state, and local requirements.6
The state auditor shall audit the books, records, and affairs of 7
the commission annually to determine, among other things, if the use 8
of bond proceeds complies with the general plan of housing finance 9
objectives including compliance with the objective for the use of 10
financing assistance for implementation of cost-effective energy 11
efficiency measures in dwellings. 12
Sec. 3. RCW 43.180.080 and 2010 c 2 s 5 are each amended to read 13
as follows: 14
In addition to other powers and duties specified in this chapter, 15
the commission may: 16
(1) Establish in resolutions relating to any issuance of bonds, 17
or in any financing documents relating to such issuance, such 18
standards and requirements applicable to the purchase of mortgages 19
and mortgage loans or the making of loans to mortgage lenders and 20
mortgage loans to borrowers as the commission deems necessary or 21
desirable, including but not limited to: (a) The time within which 22
mortgage lenders must make commitments and disbursements for 23
mortgages or mortgage loans; (b) the location and other 24
characteristics of single-family housing or multifamily housing to be 25
financed by mortgages and mortgage loans; (c) the terms and 26
conditions of mortgages and mortgage loans to be acquired or made ; 27
(d) the amounts and types of insurance coverage required on 28
mortgages, mortgage loans, and bonds; (e) the representations and 29
warranties of mortgage lenders and borrowers confirming compliance 30
with such standards and requirements; (f) restrictions as to interest 31
rate and other terms of mortgages or mortgage loans or the return 32
realized therefrom by mortgage lenders; (g) the type and amount of 33
collateral security to be provided to assure repayment of any loans 34
from the commission and to assure repayment of bonds; and (h) any 35
other matters related to the purchase of mortgages or mortgage loans 36
or the making of loans to borrowers and lending institutions as shall 37
be deemed relevant by the commission; 38
(2) Sue and be sued in its own name; 39
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(3) Make and execute contracts and all other instruments 1
necessary or convenient for the exercise of its purposes or powers, 2
including but not limited to contracts or agreements for the 3
origination, servicing, and administration of mortgages or mortgage 4
loans, and the borrowing of money; 5
(4) Procure such insurance, including but not limited to 6
insurance: (a) Against any loss in connection with its property and 7
other assets, including but not limited to mortgages or mortgage 8
loans, in such amounts and from such insurers as the commission deems 9
desirable, and (b) to indemnify members of the commission for acts 10
done in the course of their duties; 11
(5) Provide for the investment of any funds, including funds held 12
in reserve, not required for immediate disbursement, and provide for 13
the selection of investments; 14
(6) Fix, revise, and collect fees and charges in connection with 15
the investigation and financing of housing or in connection with 16
assignments, contracts, purchases of mortgages or mortgage loans, or 17
any other actions permitted under this chapter or by the commission; 18
and receive grants and contributions; 19
(7) Make such expenditures as are appropriate for paying the 20
administrative costs of the commission and for carrying out the 21
provisions of this chapter. These expenditures may be made only from 22
funds consisting of the commission's receipts from fees and charges, 23
grants and contributions, the proceeds of bonds issued by the 24
commission, and other revenues; these expenditures shall not be made 25
from funds of the state of Washington; 26
(8) Establish such special funds, and controls on deposits to and 27
disbursements from them, as it finds convenient for the 28
implementation of this chapter; 29
(9) Conduct such investigations and feasibility studies as it 30
deems appropriate; 31
(10) Proceed with foreclosure actions or accept deeds in lieu of 32
foreclosure together with the assignments of leases and rentals 33
incidental thereto. Any properties acquired by the commission through 34
such actions shall be sold as soon as practicable through persons 35
licensed under chapter 18.85 RCW or at public auction, or by transfer 36
to a public agency. In preparation for the disposition of the 37
properties, the commission may own, lease, clear, construct, 38
reconstruct, rehabilitate, repair, maintain, manage, operate, assign, 39
or encumber the properties; 40
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(11) Take assignments of leases and rentals; 1
(12) Subject to any provisions of the commission's contracts with 2
the holders of obligations of the commission, consent to any 3
modification with respect to rate of interest, time, and payment of 4
any installment of principal or interest or any other term of any 5
contract, mortgage, mortgage loan, mortgage loan commitment, 6
contract, or agreement of any kind; 7
(13) Subject to provisions of the commission's contracts with the 8
holders of bonds, permit the reduction of rental or carrying charges 9
to persons unable to pay the regular rent or schedule of charges if, 10
by reason of other income of the commission or by reason of payment 11
by any department, agency, or instrumentality of the United States or 12
of this state, the reduction can be made without jeopardizing the 13
economic stability of the housing being financed; 14
(14) Sell, at public or private sale, with or without public 15
bidding, any mortgage, mortgage loan, or other instrument or asset 16
held by the commission; 17
(15) Employ, contract with, or engage engineers, architects, 18
attorneys, financial advisors, bond underwriters, mortgage lenders, 19
mortgage administrators, housing construction or financing experts, 20
other technical or professional assistants, and such other personnel 21
as are necessary. The commission may delegate to the appropriate 22
persons the power to execute legal instruments on its behalf;23
(16) Receive contributions or grants from any source unless 24
otherwise prohibited; 25
(17) Impose covenants running with the land in order to satisfy 26
and enforce the requirements of applicable state and federal law and 27
commission policy with respect to housing or other facilities 28
financed by the commission or assisted by federal, state, or local 29
programs administered by the commission, by executing and recording 30
regulatory agreements or other covenants between the commission and 31
the person or entity to be bound. These regulatory agreements and 32
covenants shall run with the land and be enforceable by the 33
commission or its successors or assigns against the person or entity 34
making the regulatory agreement or covenants or its successors or 35
assigns, even though there may be no privity of estate or privity of 36
contract between the commission or its successors or assigns and the 37
person or entity against whom enforcement is sought. The term of any 38
such covenant shall be set forth in the recorded agreement containing 39
the covenant. This subsection shall apply to regulatory agreements 40
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and covenants previously entered into by the commission as well as 1
regulatory agreements and covenants entered into by the commission on 2
or after July 27, 1997; 3
(18) Delegate any of its powers and duties if consistent with the 4
purposes of this chapter; 5
(19) Exercise any other power reasonably required to implement 6
the purposes of this chapter. 7
From February 15, 2010, through June 30, 2011, neither the 8
commission nor its designees may grant any monetary performance-based 9
awards or incentives to any employee. This subsection does not 10
prohibit the payment of awards provided for in chapter 41.60 RCW.11
Sec. 4. RCW 43.180.090 and 1983 c 161 s 9 are each amended to 12
read as follows: 13
(1) The commission shall adopt written policies to provide for 14
the selection of bond counsel. The policies shall provide for the 15
creation and maintenance of a roster of attorneys whom the commission 16
believes possess the requisite special expertise and professional 17
standing to provide bond counsel opinions which would be accepted by 18
the underwriters, bondholders, and other members of the financial 19
community, and which would be in furtherance of the public interest 20
in obtaining the lowest possible interest rates on the bonds issued 21
by the commission. Any attorney may apply to have his or her name 22
placed on the roster, but may not be placed on the roster unless the 23
attorney demonstrates to the commission's satisfaction that the 24
attorney would issue the kind of opinions required by this section.25
(2) Prior to selecting an attorney or attorneys to provide bond 26
counsel services, the commission shall provide all attorneys on the 27
roster with a notice of its intentions to select bond counsel and 28
shall invite each of them to submit to the commission his or her fee 29
schedule for providing bond counsel services. The commission shall 30
have wide discretion in selecting the attorney or attorneys it 31
considers to be most appropriate to provide the services, but in the 32
exercise of this discretion the commission shall consider all 33
submitted fee schedules and the public interest in achieving both 34
savings in bond counsel fees and issuance of bonds on terms most 35
favorable to the commission. At least once every ((two)) four 36
calendar years, the commission shall select anew an attorney or 37
attorneys to serve as bond counsel. However, the commission may 38
retain an attorney for longer than ((two)) four years when necessary 39
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to complete work on a particular bond issue. An attorney previously 1
retained may be selected again but only after the commission has 2
provided other attorneys on the roster with an opportunity to be 3
selected and has made the fee schedule review required under this 4
subsection. In addition to or as an alternative to retaining counsel 5
for a period of time, the commission may appoint an attorney to serve 6
as counsel in respect to only a particular bond issue.7
Sec. 5. RCW 43.180.150 and 1983 c 161 s 15 are each amended to 8
read as follows: 9
(1) The commission's bonds shall bear such date or dates, mature 10
at such time or times, be in such denominations, be in such form, be 11
registered or registrable in such manner, be made transferable, 12
exchangeable, and interchangeable, be payable in such medium of 13
payment, at such place or places, be subject to such terms of 14
redemption, bear such fixed or variable rate or rates of interest, be 15
payable at such time or times, and be sold in such manner and at such 16
price or prices, as the commission determines. The bonds shall be 17
executed by the chair, by either its duly elected secretary or its 18
treasurer, and by the trustee or paying agent if the commission 19
determines to use a trustee or paying agent for the bonds. Execution 20
of the bonds may be by manual or facsimile signature.21
(2) The bonds of the commission shall be subject to such terms, 22
conditions, covenants, and protective provisions as are found 23
necessary or desirable by the commission, including, but not limited 24
to, pledges of the commission's assets, setting aside of reserves, 25
limitations on additional forms of indebtedness, and the mortgaging 26
of all or any part of the commission's real or personal property, 27
then owned or thereafter acquired, and other provisions the 28
commission finds are necessary or desirable for the security of 29
bondholders. 30
(3) Any security interest created in the unexpended bond proceeds 31
and in the special funds created by the commission shall be 32
immediately valid and binding against such moneys and any securities 33
in which such moneys may be invested without commission or trustee 34
possession thereof, and the security interest shall be prior to any 35
party having any competing claim in such moneys or securities, 36
without filing or recording pursuant to chapter 62A.9 RCW and 37
regardless of whether the party has notice of the security interest.38
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(4) When issuing bonds, the commission may provide for the future 1
issuance of additional bonds or parity debt on a parity with 2
outstanding bonds, and the terms and conditions of their issuance. 3
The commission may refund or advance refund any bond of the 4
commission in accordance with chapter 39.53 RCW or issue bonds with a 5
subordinate lien against the fund or funds securing outstanding 6
bonds. 7
(5) ((The chair of the state finance committee or the chair's 8
designee shall be notified in advance of the issuance of bonds by the 9
commission in order to promote the orderly offering of obligations in 10
the financial markets.11
(6))) The members of the commission and any person executing the 12
bonds are not liable personally on the indebtedness or subject to any 13
personal liability or accountability by reason of the issuance 14
thereof. 15
(((7))) (6) The commission may, out of any fund available 16
therefor, purchase its bonds in the open market. 17
NEW SECTION. Sec. 6. The following acts or parts of acts are 18
each repealed:19
(1) RCW 43.180.220 (Housing finance program — Mortgage financing — 20
Investments— Flexible loan underwriting guidelines) and 1994 c 235 s 21
1; 22
(2) RCW 43.180.230 (Housing finance program— Program elements) and 23
1994 c 235 s 2; 24
(3) RCW 43.180.240 (Housing finance program— Report to legislature 25
annually— Implementation) and 1994 c 235 s 3; and 26
(4) RCW 43.180.070 (Housing finance plan) and 2020 c 274 s 25.27
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