On Mar. 18, WAS LEG created workforce housing accelerator program.
WAS LEG passed bill SB 1892 to create Workforce Housing Accelerator Revolving Loan Fund Program (HLFP) to administer loans, develop housing for low income households.
Added new chapter in Title 43, (WAS LEG 43), state government - executive.
Bill Provisions
HLFP is created within department of commerce (DOC); loans may be issued to eligible organizations to assist with development of housing for low-income households.
Contracted Washington State housing finance commission (WHFC) to administer funds.
Low-income households are defined as households whose adjusted income is at/above 50%, but not exceeding 80%, of median family income adjusted for family size.
For the county where the affordable housing is located, as reported by HUD.
Eligible organizations are nonprofit developers, for profit developers, public housing authorities, public development authorities, or any others deemed eligible by WHFC.
WHFC must establish criteria that considers readiness to proceed with construction, including possession of necessary permits and completed land use entitlements.
Amount, commitment of private capital leveraged as part of financing for project.
Must consider proposed cost efficiency; development location, with goal of awarding funding to projects in as many areas of the state as financially feasible and viable.
Applicant qualifications, demonstrated capability to develop, manage proposed project.
Rates, Repayments
Housing financed under HLFP must serve low-income households for at least 99 years.
Unless WHFC finds cause, loans may not exceed lessor of $20 million or 20% of entire project costs; loans may be used in combination with other funding sources.
Loans must be issued at interest rate between 1 and 2.5 percent for the first 20 years.
May not require annual loan repayments in excess of 15 percent the annual cash flow.
Repayment plans may not exceed 30 years except as established by Commission rules.
Legislative History
On Jan. 8, 2024, bill was introduced in House; on Feb. 8, 2024, bill passed House.
On Feb. 12, 2024, bill was introduced in Senate; on Mar. 1, 2024, bill passed Senate.
On Mar. 6, 2024, bill delivered to Governor; on Mar. 18, 2024, bill signed by Governor.
Effectiveness
The bill takes effect 90 days after the adjournment of bill session, i.e., Jun. 6, 2024.
