Washington HB 2236: Concerning the housing finance commission.

Bill Text

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; 2
adding a new section to chapter 43.180 RCW; and repealing RCW 3
43.180.220, 43.180.230, 43.180.240, and 43.180.070.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 43.180 6
RCW to read as follows:7
The legislature finds that the commission is not intended to 8
function as a retail mortgage lender. Nothing in this chapter 9
authorizes the commission to compete with private financial 10
institutions in the origination of residential mortgage loans to 11
individual homebuyers. The authority granted in RCW 43.180.050(1)(c) 12
is intended solely to streamline financing for multifamily and other 13
nonowner-occupied housing while preserving the role of licensed 14
mortgage lenders in the residential mortgage lending market.15
Sec. 2. RCW 43.180.010 and 1983 c 161 s 1 are each amended to 16
read as follows:17
It is declared to be the public policy of the state and a 18
recognized governmental function to assist in making affordable and 19
decent housing available throughout the state and by so doing to 20
H-3020.2
SUBSTITUTE HOUSE BILL 2236
State of Washington 69th Legislature 2026 Regular Session
By House Housing (originally sponsored by Representatives Zahn,
Peterson, Reed, Leavitt, Macri, and Hill)
READ FIRST TIME 01/27/26.
p. 1 SHB 2236

contribute to the general welfare. Decent housing for the people of 1
our state is a most important public concern. Interest rates and 2
construction costs have made it impossible for many Washington 3
citizens to purchase their own homes. Older people, ((disabled 4
persons)) individuals with disabilities, and low and moderate-income 5
families often cannot afford to rent decent housing. There exists 6
throughout the state a serious shortage of safe, sanitary and energy 7
efficient housing available at prices within the financial means of 8
our citizens. General economic development within the state is also 9
impeded by a lack of affordable housing. The state's economy, which 10
is dependent on the timber, wood products, and construction 11
industries, has been damaged by inadequate investment in housing 12
construction and rehabilitation. The result has been high 13
unemployment and economic hardship affecting the prosperity of all 14
the people of the state, particularly those in the wood products 15
industry.16
It is the purpose of this chapter to establish a state housing 17
finance commission to act as a constituted authority and financial 18
conduit which, without ((using public funds or)) lending the credit 19
of the state or local government, can issue nonrecourse revenue bonds 20
and participate in federal, state, and local housing programs and 21
thereby make additional funds available at affordable rates to help 22
provide housing throughout the state. It is also a primary purpose of 23
this chapter to encourage the use of Washington state forest products 24
in residential construction. This chapter is enacted to accomplish 25
these and related purposes and shall be liberally construed to carry 26
out its purposes and objectives.27
Sec. 3. RCW 43.180.050 and 2013 c 13 s 1 are each amended to 28
read as follows:29
(1) In addition to other powers and duties prescribed in this 30
chapter, and in furtherance of the purposes of this chapter to 31
provide decent, safe, sanitary, and affordable housing for eligible 32
persons, the commission is empowered to:33
(a) Issue bonds in accordance with this chapter;34
(b) Invest in, purchase, or make commitments to purchase or take 35
assignments from mortgage lenders of mortgages or mortgage loans;36
(c) Make loans ((to or deposits with mortgage lenders for the 37
purpose of making)) and mortgage loans, but not loans or mortgage 38
p. 2 SHB 2236

loans for owner-occupied residential home purchases or refinancing, 1
except as expressly authorized under (d) of this subsection;2
(d) Make loans for down payment assistance to homebuyers in 3
conjunction with other commission programs; and4
(e) Participate fully in federal and other governmental programs 5
and to take such actions as are necessary and consistent with this 6
chapter to secure to itself and the people of the state the benefits 7
of those programs and to meet their requirements, including such 8
actions as the commission considers appropriate in order to have the 9
interest payments on its bonds and other obligations treated as tax 10
exempt under the code.11
(2) Except as expressly authorized under subsection (1)(d) of 12
this section, the commission may not originate or make residential 13
mortgage loans directly to natural persons for the purchase or 14
refinancing of owner-occupied single-family housing.15
(3) The commission shall establish eligibility standards for 16
eligible persons, considering at least the following factors:17
(a) Income;18
(b) Family size;19
(c) C