Washington Administrative Code Title 262 - Housing Finance Commission
Washington Administrative Code Title 262 — Housing Finance Commission (HFC)
Overview and Purpose
WAC Title 262 contains the administrative rules and regulations governing the operation, powers, and duties of the Washington State Housing Finance Commission (HFC). The HFC is a state agency created to increase the availability of affordable housing and to promote economic development through financing programs.
The HFC’s authority is derived from RCW Chapter 43.180, which provides the statutory framework for the commission’s formation and powers.
Mission of the Housing Finance Commission
To increase the availability of affordable housing for low- and moderate-income residents.
To promote economic development by providing financing for housing, public facilities, and infrastructure.
To administer housing and economic development programs funded by the state, federal government, and private sources.
Structure of WAC Title 262
The Code outlines the following key areas:
Commission Organization and Governance
Composition of the Commission: Typically consists of appointed members representing diverse interests such as finance, housing, and government.
Terms, meetings, and voting procedures.
Programs Administered by the Commission
Bond Financing Programs: Issuance of tax-exempt and taxable bonds to finance affordable housing projects.
Homebuyer Assistance Programs: Including down payment assistance and mortgage credit certificates.
Multifamily Housing Programs: Financing for affordable apartment developments.
Public Facilities Financing: Funding for infrastructure and community facilities that support economic growth.
Application and Allocation Procedures
Rules regarding the application process for programs, including eligibility criteria.
Allocation priorities and criteria for distributing funds or issuing bonds.
Compliance and Reporting Requirements
Monitoring of funded projects to ensure compliance with program requirements.
Reporting by recipients and the Commission itself on financial and programmatic outcomes.
Administrative Procedures
Rulemaking authority.
Hearing and appeal processes for applicants or recipients.
Fee schedules and administrative costs.
Legal Framework and Context
1. Statutory Authority
The Commission’s activities are grounded in RCW 43.180, which grants the power to issue bonds, enter into contracts, acquire property, and undertake other necessary actions to achieve its mission.
WAC Title 262 operationalizes these statutory powers through detailed regulations.
2. Bond Issuance and Tax Law Compliance
One of the Commission’s key roles is issuing bonds to finance affordable housing.
These bonds are often tax-exempt under federal and state law, so WAC 262 includes rules ensuring compliance with IRS regulations and Washington state tax laws.
Proper issuance, reporting, and oversight prevent jeopardizing the tax-exempt status of these bonds.
3. Affordable Housing and Civil Rights Compliance
Projects funded by the Commission must comply with fair housing laws and nondiscrimination policies.
WAC 262 may include requirements for equal opportunity and accessibility consistent with federal laws like the Fair Housing Act and the Americans with Disabilities Act.
Relevant Case Law and Legal Principles
1. Contractual and Administrative Law
Courts uphold the Commission’s authority to set rules and conditions on financing under its statutory mandate.
Challenges to Commission decisions (e.g., denial of funding) are generally reviewed under Washington’s Administrative Procedure Act, requiring that decisions are not arbitrary or capricious.
2. Tax-Exempt Bond Litigation
While specific Washington cases involving the HFC may be limited, nationally courts have ruled on the use of tax-exempt bonds for affordable housing.
The courts have emphasized strict adherence to IRS requirements, as failure can cause bondholders to lose tax benefits.
3. Fair Housing and Equal Opportunity
Housing finance commissions, including Washington’s, have been subject to legal scrutiny ensuring that their funding decisions comply with fair housing obligations.
Lawsuits or administrative complaints have enforced nondiscrimination in program administration.
Summary
WAC Title 262 governs the operation of the Washington State Housing Finance Commission.
It sets the rules for program administration, bond issuance, compliance, and governance.
The Commission plays a critical role in facilitating affordable housing and economic development.
Its actions are governed by state statutes, administrative law principles, and compliance with tax and civil rights laws.
Courts generally defer to the Commission’s expertise but require fair, transparent, and lawful administration.
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