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Senate committee hears bill to modernize Housing Finance Commission authority
Summary
SB 6,018 would update the Housing Finance Commission statute to allow additional financing tools, clarify bond counsel cycles and remove outdated restrictions; commission and banking representatives said they are refining language to avoid unintended first‑mortgage lending authority.
The Senate Housing Committee took testimony on SB 6,018 on Jan. 16, a bill that would modernize the statute governing the Washington State Housing Finance Commission.
Sponsor Senator M. Trudeau said the bill responds to the commission’s need for more flexible financing tools to support affordable‑housing development and clarified that the commission is not seeking authority for first‑mortgage homebuyer lending. "We heard feedback about confusion ... they have clarified they are not" attempting to enter first‑mortgage lending, the sponsor said.
Steve Walker, executive with the Housing Finance Commission, described the agency’s 40‑year role issuing conduit bonds and administering federal tax credits and said SB 6,018 would allow the commission to use additional financing techniques — including targeted mortgage or gap lending to support projects that cannot access large bond or tax‑credit financing — while preserving the commission’s core mission. Walker noted the bill tightens language after consultations with banking partners to avoid unintended consequences.
Representatives of community banks and the Washington Bankers Association urged continued refinement of the definitions around direct lending, borrowers and use of 'public funds' so the commission’s authority is clear and preserves appropriate oversight. The committee closed testimony with staff and stakeholders agreeing to circulate amendments and clarifying language.
Staff noted specific statutory changes including increasing the bond‑counsel reselection cycle from two to four years, removing a prior requirement for advanced notice to the State Finance Committee before issuing bonds, and repealing an older housing finance plan requirement; a fiscal note had been requested and was not yet available.
