Gov. Chris Gregoire and top legislative leaders on Monday proposed a $50 million increase in the state's Housing Trust Fund, with an eye to helping flood victims and low-income people. The Democratic leaders also requested a $2 billion increase in a program for helping low- and moderate-income people buy their first home. The governor requested a major new expansion of the housing trust fund, with as much as $10 million earmarked for low-income housing in areas hit hardest by recent flooding.
‘‘Many of these flooding victims will have their immediate shelter needs met, but there will be a longer-term need in the coming months to rebuild or rehab the housing that was damaged,’’ said Kari Burrell, the governor’s housing adviser. Criteria are being developed and probably will include counties currently designated for federal disaster relief. Families will still have to meet the income eligibility of less than 80 percent of an area’s median income. Self-help sponsors, including Habitat for Humanity, and multifamily units are likely recipients for construction and repair dollars, Burrell said.
The governor’s plan also includes $3 million money for short-term loans to buy property for low-income housing. Gregoire also wants $6 million to replenish the Washington Families Fund, which works to expand affordable housing for homeless families. The governor rolled out her proposal in Seattle, where she was joined by House Speaker Frank Chopp of Seattle and Senate Majority Leader Lisa Brown of Spokane. All are Democrats. Chopp has made housing a major focus of his tenure in the Legislature. The plans are part of the governor’s construction budget being released on Tuesday and will go to the January session of the Legislature.
The trust fund, largely a revolving fund for loans for nonprofit and local government housing organizations, now stands at $130 million, including $10 million added earlier this year. The governor’s plan would boost that to $180 million, a record. Since its creation in 1989, the fund has invested more than $500 million in housing and leveraged more than $2 billion in private and public sector support, according to the Department of Community, Trade & Economic Development. The money has helped finance more than 32,000 housing units.
‘‘Washington families should be able to live close to good jobs and schools, in safe neighborhoods and safe structures,’’ the governor said in prepared remarks. ‘‘Our proposal will help people who are in need of affordable housing, fund successful programs to help homeless families transition to stable permanent housing, and provide assistance to those who own a home but are in danger of foreclosure.’’
Gregoire, Chopp and Brown also announced legislation to expand the program for helping low- to- moderate income people buy their first home. The state Housing Finance Commission, which helps with mortgage and down-payment assistance, as well as development of affordable multifamily housing, has a debt limit of $4.5 billion. That would rise to $6.5 billion. The Department of Financial Institutions also is drafting legislation to add protections for homeowners, including new standards and borrower protections for nontraditional mortgages. ‘‘These new policies will further protect homebuyers from unscrupulous lenders who may lead buyers into loans that are not in their best interests,’’ the governor’s office said.
Source: chronline.com