Home ownership options for low, middle income families continue as Kauffman bill heads to governor’s desk

OLYMPIA – At a time when financial institutions are leaving many would-be home owners out in the cold, the Legislature passed a bill that helps open the door to housing options and home ownership for more low and middle income families.

Senate Bill 6332, sponsored by Sen. Claudia Kauffman, D-Kent, was passed out of the Senate yesterday 47-2 after coming back to the chamber with House amendments. It now goes to the desk of Gov. Chris Gregoire for her signature.

SB 6332 increases the Housing Finance Commission's debt limit by $500 million, from $4.5 billion to $5 billion. Increasing the Commission’s debt limit has no impact on state coffers because the commission’s debt is independent of the state budget.

The Commission finances affordable housing loans by issuing debt, but the total amount of debt the commission may have outstanding at any one time is limited by the law. As of January, the Commission’s outstanding debt had reached $4 billion, within striking distance of the $4.5 billion limit, much of the need for the increased limit stems from rapidly increasing construction and material costs.

Once the governor signs Kauffman’s legislation, the commission will be able to continue financing affordable housing for another year.

Established in 1983, the commission has financed more than 126,000 affordable housing units and elderly beds in Washington, and has provided over 38,000 loans for home ownership to Washingtonians. It also provides financial help to beginning farmers.

 “This bill has broad bipartisan support, that really says something,” said Kauffman, “I’m delighted that so many members recognize what a great tool this is for families in this housing crisis. This is smart policy. It’s a win-win; it doesn’t cost the state money and helps our citizens”

Kauffman is Vice Chair of the Senate Consumer Protection & Housing Committee.

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