HomeMy WebLinkAbout5476 RESOLUTION NO. 5476
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO
TRANSFER FUNDS COLLECTED UNDER THE
PROVISIONS OF WASHINGTON STATE HOUSE BILL 1406
AND CITY OF AUBURN ORDINANCE 6732 TO THE SOUTH
KING HOUSING AND HOMELESSNESS PARTNERS
WHEREAS, the 2019 State Legislature enacted SHB 1406 which allows cities and
counties to recapture a portion of Washington State sales tax when it is used to support
affordable housing initiatives; and
WHEREAS, on September 9, 2019 the Auburn City Council enacted Resolution
5454 and Ordinance 6732 which authorized a recapture of Washington State sales tax
that is estimated to generate approximately $150,000 per year for the next 20 years; and
WHEREAS, on February 19, 2019 the Auburn City Council enacted Resolution
5408 which authorized the Mayor to enter into an Interlocal Agreement (ILA) with 8 other
south King County cities and King County to form the South King Housing and
Homelessness Partners (SKHHP); and
WHEREAS, the enacted Resolution state that "the Parties have determined that
the most efficient and expeditious way for the Parties to address affordable housing needs
in South King County is through cooperative action and pooling public and private
resources"; and
WHEREAS, all 9 member cities of SKHHP and King County have taken action to
enact the sales tax recapture provisions established in SHB 1406; and
WHEREAS, on November 22, 2019 the SKHHP Executive Board took unanimous
action to adopt SKHHP Resolution 2019-06, attached as Exhibit A, which urges each of
Resolution No. 5476
December 16, 2019
Page 1 of 3 Rev.2019
the 9 member cities and county to pool 100% of the funds collected under the provisions
of SHB 1406; and
WHEREAS, if all 9 cities pool the maximum extent of collected SHB 1406 funds to
SKHHP the estimated revenue would total approximately $1,000,000 per year for a 20
year period; and
WHEREAS, HB 1406 funds may be used for the purpose of acquiring,
rehabilitating, or constructing affordable housing; funding the operations and
maintenance costs of new units of affordable or supportive housing; and
WHEREAS, cities that have a population of less than 100,000 may also use the
funds for providing rental assistance to tenants, however, using the funds in this manner
will require substantial administrative oversight with respect to preparing a program that
requires city staff to review personal income information of individuals who request
access to funds and the accounting and auditing the use of funds; and
WHEREAS, the City of Auburn is projected to exceed a population of 100,000
within the 20 year window set forth in SHB 1406 which will prohibit Auburn from using
funds for the purpose of providing rental assistance; and
WHEREAS, counties and cities that enact the provisions of SHB 1406 may issue
general obligation or revenue bonds, and may use moneys collected under SHB 1406 for
the repayment of bonds; and
WHEREAS, SHB 1406 requires counties and cities that enact its provisions to also
provide annual reports to the Department of Commerce; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, RESOLVES as follows:
Resolution No. 5476
December 16, 2019
Page 2 of 3 Rev.2019
Section 1. The administrative costs associated with managing a program that
provides rental assistance to tenants combined with the annual reporting requirements
established in SHB 1406 are likely to exceed Auburn's estimated annual revenue
collection.
Section 2. While $150,000 is a valuable revenue stream that can be used in
Auburn to support various affordable housing initiatives, a contribution to SKHHP will
allow the use of SHB 1406 funds to stretch much further and to make a far more profound
and meaningful impact to addressing the affordable housing challenges faced in South
King County.
Section 3. The Mayor is authorized to take administrative actions necessary to
direct funds collected under SHB 1406 and City of Auburn Ordinance 6732 to SKHHP.
Section 4. This authorization is contingent upon each of the other SKHHP cities
to take similar actions directing a proportionate amount of SHB 1406 funds to SKHHP.
Section 5. This Resolution will take effect and be in full force on passage and
signatures.
Dated and Signed: December 16, 2019
CITY OF AUBURN
ANCY , KUS, MA OR
ATTEST: APPOV -, AS TO FORM:
s s
`� 'Shawn Campbell, MMC, Ci y Clerk Steven L. Gross, City Attorney
Resolution No. 5476
December 16, 2019
Page 3 of 3 Rev.2019
RESOLUTION NO. 2019-06
A RESOLUTION OF THE EXECUTIVE BOARD OF THE
SOUTH KING COUNTY HOUSING AND HOMELESSNESS
PARTNERS URGING SKHHP MEMBER CITIES TO
SUPPORT POOLING OF HB 1406 FUNDS.
WHEREAS, in 2019 the cities of Auburn, Burien, Covington, Des Moines, Federal
Way, Kent, Normandy Park, Renton, and Tukwila and King County entered into an
Interlocal Agreement (ILA) that formed the South King Housing and Homelessness
Partners (SKHHP); and
WHEREAS, pursuant to the ILA, the member cities have a common goal to ensure
availability of housing that meets the needs of all income levels in South King County;
and
WHEREAS, also pursuant to the ILA, the member cities wish to act cooperatively
to formulate housing policies and strategies that address housing stability, to foster efforts
to preserve and provide affordable housing by combining public funding with private=
sector resources, to support implementation of the Washington State GMA, related
countywide planning policies, and other local policies and program relating to affordable
housing, and to do so efficiently and expeditiously; and
WHEREAS, also pursuant to the ILA, the member cities have determined that the
most efficient and expeditious way for the parties to address affordable housing needs in
South King County is through cooperative action and pooling of public and private
resources; and
Resolution No. 2019-06
November 22, 2019
Page 1 of 4 Rev.2019
WHEREAS, the ILA states that the parties intend that the ILA serves as a
framework for all participating municipalities within the broader SKHHP Sphere of
Influence to do the aforementioned work; and
WHEREAS, on July 26, 2019 the SKHHP Executive Board adopted Resolution
2019-05 which urges member cities to declare their intent to enact the provisions of HB
1406; and
WHEREAS, Resolution 2019-05 states that the Executive Board commits to
developing options and a recommendation, including for the proposed pooling of funding,
that details funding commitments for each member city's legislative authority to consider
for future subsequent action; and
WHEREAS, HB 1406 is a powerful and meaningful funding source to further
advance the efforts of the housing objectives established through the ILA that, if pooled,
will generate approximately $1,000,000 per year for the eligible 20 year period (See
Attachment A); and
WHEREAS, the Executive Board adopts the recommendations contained within
this resolution as a unified statement of support by SKHHP member cities.
NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows:
Section 1. The Executive Board of SKHHP urges all member cities to pool the
base sales tax credit revenues collected under HB 1406 and to allocate the full amount
of those revenues to SKHHP.
Section 2. In order to maximize HB 1406 funding within King County, the
Executive Board of SKHHP urges all member cities to take Ordinance action on HB 1406
after King County takes action.
Resolution No. 2019-06
November 22, 2019
Page 2 of 4 Rev.2019
Section 3. The Executive Board of SKHHP urges King County to award HB
1406 funds to housing development based in the Urban Growth Areas (UGA) of SKHHP
member cities in a manner that proportionately represents the cumulative population of
the UGA's of SKHHP member cities.
Section 4. The Executive Board of SKHHP commits to aligning the use of HB
1406 funds with the work plan required within the adopted ILA and the recommendation
and priorities of the Regional Affordable Housing Task Force Five Year Action Plan.
Section 5. Individual municipalities have unique housing needs and priorities
and not every project proposal will align with a city's goals, policies, or laws. The intent
and effect of this resolution is not to usurp a city's individual authority. Therefore, if funds
are pooled for the purpose of aiding in the creation or preservation of housing,the process
for project consideration must allow the city in which the project is proposed to first
approve or reject the proposal prior to the Executive Board's commitment of funds to the
project.
Section 6. This Resolution will take effect and be in full force on passage and
signature.
Dated and Signed this 2,15day of 0VCNl1, l" , 2019.
SOUTH KING COUNTY HOUSING AND HOMELESSNESS PARTNERS
.1._i_St jsç :Y :• "k US, CHAI- Shawn Campbell, Auburn ity Clerk
Resolution No. 2019-06
November 22, 2019
Page 3 of 4 Rev.2019
SKHHP Resolution 2019-06 Attachment A
Estimated HB 1406 Revenue by SKHHP Municipality (based on 2018 revenues)
c sz4' ,nz c.(ty c.}..,„o __i� t+rY.. *< " , t" W b' ", '• » a,
Auburn $154,992
Burien $65,477
Covington $43,678
Des Moines $29,793
Federal Way $124,142
Kent $185,467
Normandy Park $4,866
Renton $236,380
Tukwila $162,046
Total (not including King County) $1,006,841.00
Resolution No. 2019-06
November 22, 2019
Page 4 of 4 Rev.2019