(1) The department shall use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loans or grant projects that will provide housing for persons and families with special housing needs and with incomes at or below fifty percent of the median family income for the county or standard metropolitan statistical area where the project is located. At least thirty percent of these moneys used in any given funding cycle shall be for the benefit of projects located in rural areas of the state as defined by the department. If the department determines that it has not received an adequate number of suitable applications for rural projects during any given funding cycle, the department may allocate unused moneys for projects in nonrural areas of the state.

     (2) Activities eligible for assistance from the housing trust fund and other legislative appropriations include, but are not limited to:

     (a) New construction, rehabilitation, or acquisition of low and very low-income housing units;

     (b) Rent subsidies;

     (c) Matching funds for social services directly related to providing housing for special-need tenants in assisted projects;

     (d) Technical assistance, design and finance services and consultation, and administrative costs for eligible nonprofit community or neighborhood-based organizations;

     (e) Administrative costs for housing assistance groups or organizations when such grant or loan will substantially increase the recipient's access to housing funds other than those available under this chapter;

     (f) Shelters and related services for the homeless, including emergency shelters and overnight youth shelters;

     (g) Mortgage subsidies, including temporary rental and mortgage payment subsidies to prevent homelessness;

     (h) Mortgage insurance guarantee or payments for eligible projects;

     (i) Down payment or closing cost assistance for eligible first-time home buyers;

     (j) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing;

     (k) Projects making housing more accessible to families with members who have disabilities; and

     (l) During the 2005-2007 fiscal biennium, a manufactured/mobile home landlord-tenant ombudsman conflict resolution and park registration program.

     (3) During the 2005-2007 fiscal biennium, revenues generated under RCW 36.22.178 may be used for the development of affordable housing projects and other activities funded in section 108, chapter 371, Laws of 2006.

     (4) Legislative appropriations from capital bond proceeds may be used only for the costs of projects authorized under subsection (2)(a), (i), and (j) of this section, and not for the administrative costs of the department.

     (5) Moneys from repayment of loans from appropriations from capital bond proceeds may be used for all activities necessary for the proper functioning of the housing assistance program except for activities authorized under subsection (2)(b) and (c) of this section.

     (6) Administrative costs of the department shall not exceed five percent of the annual funds available for the housing assistance program.

[2006 c 371 § 236. Prior: 2005 c 518 § 1801; 2005 c 219 § 1; 2002 c 294 § 6; 1994 c 160 § 1; 1991 c 356 § 4; 1986 c 298 § 6.]

NOTES:

     Part headings not law -- Severability -- Effective date -- 2006 c 371: See notes following RCW 43.325.040.

     Severability -- Effective date--2005 c 518: See notes following RCW 28A.500.030.

     Findings -- 2002 c 294: See note following RCW 36.22.178.