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Committee approves expansion of foreclosure-mediation program funded by an $80 transaction fee proposal
Summary
The Appropriations Committee reported Engrossed Second Substitute Senate Bill 5686 out of committee, 19-12. Sponsors said the bill extends foreclosure-mediation protections to condominium-assessment foreclosures and would add an $80 fee on real-estate transactions to fund the program; opponents called the fee a hidden tax.
The Washington House Appropriations Committee on Oct. 12 voted 19-12 to report Engrossed Second Substitute Senate Bill 5686 out of committee with a due-pass recommendation.
Supporters described the bill as an expansion of the state's successful foreclosure-mediation program, which currently funds services through a $250 lender fee charged when a foreclosure is filed. "This gives those homeowners an opportunity to get some counseling and some mediation services to maybe get back on track and not have their home foreclosed," Representative Peterson said, and noted the bill would add protections for condominium owners facing foreclosure over unpaid association assessments.
Representative Manjaris opposed the measure on the grounds that it would add an $80 charge on all real-estate transactions to fund the program and described that as a "hidden tax." "What this bill does is charge another $80 on the front end on all real estate transactions that would go into this account. I think that's a hidden tax," Manjaris said, and said she would vote no.
Committee staff conducted a roll call; the tally announced was 19 ayes, 12 nays and 0 excused. The committee reported the bill with a do-pass recommendation.
The record shows committee debate about funding mechanics and whether the proposed transaction fee is necessary given existing funding from lender fees. The transcript records that additional work on condo-association issues was expected on the floor but does not provide details of any final floor amendments or enactment timing.
