Bill Summary – FastDemocracy

H-3171.1
                       SECOND SUBSTITUTE HOUSE BILL 2270
     State of Washington         68th Legislature     2024 Regular Session
     By House Appropriations (originally sponsored by Representatives
     Morgan, Macri, Peterson, Gregerson, Ryu, Reeves, Callan, Bateman,
     Ormsby, Street, Cortes, Ramel, Kloba, Wylie, Fey, Leavitt, Donaghy,
     Thai, Goodman, Mena, Taylor, Duerr, Riccelli, Berry, Reed, Santos,
     Entenman, Ortiz-Self, Simmons, Bergquist, Stonier, Fosse, Timmons,
     Chapman, Stearns, Nance, Chopp, Shavers, Slatter, Doglio, Pollet,
     Tharinger, Walen, Bronoske, Orwall, Fitzgibbon, Davis, Alvarado, and
     Paul)
     READ FIRST TIME 02/05/24.
      AN ACT Relating to creating a Washington state department of
  housing; creating new sections; and providing an expiration date.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     NEW SECTION.    Sec. 1.    The legislature finds that affordable
 housing and homelessness have reached an unprecedented crisis level
 in Washington state. These issues are not isolated to any one part of
 our state, rather they are challenges being faced by every community
 across the state.
     The legislature finds that in response to these challenges, the
 state has expanded the scope and authority of the department of
 commerce, which has diligently worked to introduce and grow programs
 to increase housing supply, incentivize and manage development,
 provide rental assistance, support housing providers, and shelter
 residents. The state recognizes and thanks the department for their
 efforts and commitment to Washington's residents.
     As the crisis continues, the legislature finds a need for a more
 holistic approach to housing and homelessness issues and better
 alignment of state policies across agencies and in partnership with
 local jurisdictions and community-based programs.
     Therefore, the legislature intends to establish a new state
 department of housing that will focus solely on housing and
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  homelessness issues and bring together state programs that currently
  span multiple agencies and partners. The legislature also intends to
  engage a professional consultant to help facilitate the transition of
  programs and identify gaps that may be filled by the new department.
     NEW SECTION.   Sec. 2.    (1) The office of financial management
 must contract with an external consultant to study the transition of
 state housing programs to a new state agency and identify gaps in
 current state housing programs. The study must include a review and
 recommendations on the following issues:
     (a) A clear mission and vision for the new department;
     (b) The organizational structure for the new department,
 including which agencies, administrations, commissions, or other
 functions of state government should be included, and identification
 of the reasons why a specific housing function or program is not
 recommended for inclusion, if any;
     (c) Any gaps in existing rental, transitional housing, senior
 housing,   homelessness,   homeownership,  and  manufactured  housing
 programs provided by the state including, but not limited to:
     (i) The feasibility of the state developing its own housing
 portfolio and partnering with public housing authorities to operate
 state housing stock;
     (ii) The need for a state eviction prevention office;
     (iii) The need for emergency housing in response to natural
 disasters;
     (iv) The need for an educational program for renters and
 landlords;
     (v) How landlords can be held accountable for repairs to rental
 housing, including the efficacy of renters using escrow accounts as
 allowed under RCW 59.18.115;
     (vi) How the state may assist counties in providing mandatory
 mitigation sites if the number of homeless people increase within
 their jurisdiction based on the annual homeless census conducted
 under RCW 43.185C.030; and
     (vii) How the state may subsidize housing choice vouchers issued
 under 42 U.S.C. Sec. 1437(f) when fair market rents calculated by the
 United States department of housing and urban development do not keep
 pace with rent;
     (d) Estimated costs for the reorganization of state housing
 programs and creation of a new housing agency including, but not
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 limited to, indirect costs, change management, training, and
 community outreach;
     (e) An analysis of existing state and federal funding streams for
 state housing programs and any statutory revisions necessary to
 ensure the sufficient flow of funds to a new agency;
     (f) A clear process for managing the reorganization; and
     (g) Measurable benchmarks by which the effectiveness of the new
 department would be assessed.
     (2) As part of the review, the external consultant must engage
 with and seek recommendations from the following:
     (a) The office of the governor;
     (b) The department of commerce;
     (c) The department of social and health services;
     (d) The health care authority;
     (e) The office of equity;
     (f) The office of the state treasurer;
     (g) The office of the attorney general;
     (h) The housing finance commission;
     (i) The office of civil legal aid;
     (j) The administrative office of the courts;
     (k) The nonprofit rental housing development industry;
     (l) The nonprofit homeownership housing development industry;
     (m) A labor organization representing frontline staff within
 permanent supportive housing providers;
     (n) An organization that represents tenants;
     (o) Homeless shelter operators;
     (p) Representatives of low-income persons;
     (q) Representatives of special needs populations;
     (r) Public housing authorities as created under chapter 35.82
 RCW;
      (s) The for-profit housing development industry;
      (t) For-profit rental housing owners;
      (u) The Washington state association of counties; and
      (v) The association of Washington cities.
      (3) The contract must require the external consultant to submit a
 report with its findings and recommendations to the governor and the
 appropriate committees of the legislature by July 1, 2025.
     (4) The office of financial management may not award the contract
 in this section to an external consultant or entity that has lobbied
 or publicly testified on matters related to the scope of the study,
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  including affordable housing, homelessness, tenant protections, and
  social services for people at risk of homelessness. The office of
  financial management must require the successful applicant to certify
  that it has not lobbied or publicly testified on such matters before
  the contract being awarded.
      (5) The contract is exempt from the competitive procurement
  requirements in chapter 39.26 RCW.
      (6) This section expires September 30, 2025.
     NEW SECTION.   Sec. 3. If specific funding for the purposes of
 this act, referencing this act by bill or chapter number, is not
 provided by June 30, 2024, in the omnibus appropriations act, this
 act is null and void.
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