RELATING TO LOW-INCOME AND HOMELESS

HOUSING ASSISTANCE SURCHARGES

HB 2048

1

REPRESENTATIVE PHYLLIS GUTIERREZ KENNEY

HB 2048

Changes the Homeless Housing and Assistance Act document recording surcharge to:• $40 through June 30, 2015• $30 from July 1, 2015, to June 30, 2017, and• $10 beginning on July 1, 2017

Adds requirements to local governments and the Department of Commerce related to housing vouchers paid for with document recording fees.

2

Number of People Who are Homeless in Washington

• 91,100 – people who are homeless during the course of the year

• 75,300 – people provided temporary housing assistance

• 15,800 – people who cannot be served due to limited resources

3

Number of Kids in Washington Who are Homeless

OSPI reports 21,800 homeless students during the last school year –

up 56.5% since 2005.

On any given day, there are 3,388 homeless families with children

4

What Will Happen if We Do Nothing?

2001-03 2003-05 2005-07 2007-09 2009-2011 Current Law

2011-2013 House

Proposal

2013-15 Current law

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Total state funding level for homeless programs will drastically decline without HB 2048

GF-S

+ F

ees

Data from Dep. of Commerce 4/6/11

5

The Department of Commerce

projects a 25% increase in 11-13

and a 219% increase in 13-15 in the number of homeless people who cannot receive services due to funding.

…With the Following Result

6

It’s Only Getting More Difficult to Find Affordable Housing

20012002

20032004

20052006

20072008

20092010

$700.00

$750.00

$800.00

$850.00

$900.00

$950.00

Statewide Average Monthly Rent

Statewide Average Monthly Rent

7

What is the Solution?

2001

-03

2003

-05

2005

-07

2007

-09

2009

-11

Curre

nt L

aw

2011

-13

Hou

se P

ropo

sal

2013

-15

Curre

nt la

w $-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

HB 2048 Maintains Critical Funding for the State’s Homeless Programs

Funding Level without HB 2048Funding level with HB 2048

GF-S

+ F

ees

Data from Dep. of Commerce 4/6/11

8

What about the local level?

2005-07 2007-09 2009-11 Current Law

2011-2013 House

Proposal

2013-15 Current law

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

HB 2408 Provides increased local resources to make up for reduced state funding, and avoids a

47% reduction in 2013-15

Without HB 2408With HB 2408

Local

Fee R

evenue

Data from Dep. of Commerce 4/6/11

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Increase in Home Prices Compared to Recording Fees

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$70,500

$58

2001-2009 Increase in Median Home Prices2001-2011 Increase in Homeless Recording Fees (including HB 2048)

Source: WSU Center for Real Es-tate Research (2009 is the most recent full year information for average home prices)

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Why Do We Rely on Fees?

2001-03 2003-05 2005-07 2007-09 2009-11 Current Law

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Appropriations to programs currently supported by Recording Fees

Appropriations to homeless programs - Document recording fees Appropriations to homeless programs - General FundM

illi

ons

*Figures include O&M ProgramData from Dep. of Commerce 4/6/11

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Why Focus on Vouchers?

In the right circumstances, vouchers can provide an efficient and cost-effective option for providing housing assistance to very-low income and homeless households

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Document Recording Fees already Go Towards Vouchers

State Portion of Recording Fee Dollars39% of Commerce managed document

recording fees are dedicated to project-based leasing or tenant-based rent assistance.

Local Portion of Recording Fee Dollars41% of reported locally retained document

recording fees are dedicated to project-based leasing or tenant-based rent assistance.

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HB 2048

Gives landlords the opportunity to “opt-into” an interested landlord list that local governments and contractors distribute

Improves communication between local governments, agency providers, and interested landlords

Emphasizes data tracking and reporting to better measure the benefits of vouchers

Advances public-private partnerships in affordable housing

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