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HomeMy WebLinkAboutAgendaPacket_SKHHP_ExecutiveBoard_2024_2_16_ReportaddSKHHP Executive Board February 16, 2024, 1:00 – 3:00 PM Virtual Meeting Video conference: https://us06web.zoom.us/j/99857398028?pwd=eXFiMmJpQm1abDZmMmRQbHNOYS8ydz09 OR by phone: 253-205-0468 Meeting ID: 998 5739 8028 Password: 085570 I. CALL TO ORDER a. b. AND ADVISORY BOARD REPRESENTATIVE II. PUBLIC COMMENT III. APPROVAL OF JANUARY 19, 2024 MINUTES Motion is to approve the January 19, 2024 SKHHP Executive Board meeting minutes. 1:09 1:10 Presenter: Claire V. Goodwin, SKHHP Executive Manager Purpose: To elect a Chair and Vice-Chair to the SKHHP Executive Board. Background: Chair and Vice-Chair elections are held annually to serve a 1-year term and are elected from the appointed members of the Board. The Chair of the Executive Board presides over meetings of the Executive Board. The Vice- Chair, in the absence of the Chair, performs all duties incumbent upon the Chair. Prior to the meeting, nominations were received as follows: • Nancy Backus for Chair • Dana Ralph for Vice-Chair Other nominations for Chair and Vice-Chair positions may be brought forward at the meeting. Motion is to approve the nomination for Chair. Motion is to approve the nomination for Vice-Chair. SKHHP MEMBERSHIP Presenter: Claire V. Goodwin, SKHHP Executive Manager Purpose: To consider approval of the City of SeaTac Agreement adding the City of SeaTac as a party to the SKHHP Interlocal Agreement. Background: At the October 2023 and January 2024 SKHHP Executive Board meetings, the Executive Manager provided an update on SeaTac’s interest and consideration in becoming a party to the SKHHP Interlocal Agreement. At the January 23, 2024 SeaTac City Council meeting, Council approved execution of the agreement to become a SKHHP member jurisdiction, adopted the 2024 SKHHP work plan and budget, and approved allocation of $300,000 from the general fund to contribute towards the 2024 SKHHP Housing Capital Fund. Adding a party to the SKHHP Interlocal Agreement requires final approval by a two-thirds majority vote of the SKHHP Executive Board. A simple majority of the Board will determine operational funding obligations SeaTac shall commit to as a condition of becoming a Party to the Agreement. Motion is to approve the SeaTac Agreement and authorize the SKHHP Chair to execute Agreement. Motion is to approve the pro-rated 2024 operational member contribution by the City of SeaTac in the amount of $10,456. 1:35 Presenter: Amanda Santo, Chief Operations Officer, MSC; Kristen York, Chief Executive Officer, MSC Purpose: Provide an opportunity to hear and learn from developers working in South King County. Background: Formed in 1971, MSC provides housing, rental assistance, employment support, and essential resources to the South King County community. A longtime partner with SKHHP, MSC has been a member of the SKHHP Advisory Board since November 2021. SKHHP recommended funding for MSC in the 2023 Housing Capital Fund funding round to support the rehabilitation of the Victorian Place II Apartments located in Des Moines, WA. b. 2024 STATE LEGISLATIVE UPDATE Presenter: Dorsol Plants, SKHHP Program Coordinator Purpose: A brief update of housing and land use legislation under consideration during the 2024 State Legislative Session. Background: The Washington State Legislature convened for a short session beginning January 8, 2024. SKHHP staff will monitor and provide updates on legislation connected with focus will be provided on any bills which further SKHHP’s adopted legislative priority, “to fund all aspects of affordable housing.” VII. BOARD BUSINESS CONTINUED a. 2025 WORK PLAN DEVELOPMENT SURVEY Purpose: Solicit initial feedback from the Executive Board for the development of the 2025 work plan through a survey. Background: SKHHP’s Interlocal Agreement requires the Executive Board recommend an annual work plan and budget by June 1. To develop a draft work plan and budget for consideration, this survey will help inform that process. A recommended 2025 work plan and budget will be presented at the April 19 Executive Board Meeting for adoption, followed by Council action by each member jurisdiction by July 12. For review, discussion, and receipt of Board feedback, no action proposed. Presenter: Claire V. Goodwin, SKHHP Executive Manager Purpose: Presentation of the 2023 quarter four budget and progress report for Executive Board review. Background: Staff provides quarterly budget and progress reports consistent with the SKHHP Interlocal Agreement. The quarter 4 progress report serves as the annual report. The report serves as an accountability and progress update as well as a tool for Board members to update their member Councils and other interested parties. Staff presentation followed by Board discussion provides the opportunity for feedback prior to finalization and distribution to member jurisdictions. For review, discussion, and Board feedback only, no action is proposed. 2:35 • Preservation strategies update • In-person Executive Board meeting in March VIII. •ADJOURN SKHHP Executive Meeting January 19, 2024 MINUTES I. CALL TO ORDER Traci Buxton called the meeting to order at 1:02 PM. ROLL CALL/ESTABLISHMENT OF QUORUM Executive Board members present: Merina Hanson (alternate), City of Kent; Colleen Brandt- Schluter, City of Burien; Traci Buxton, City of Des Moines; Brian Davis, City of Federal Way; Victoria Schroff (alternate), City of Maple Valley; Eric Zimmerman, City of Normandy Park; Ryan McIrvin, City of Renton; Dennis Martinez (alternate), City of Tukwila; Sunaree Marshall, King County. Others present: Claire Goodwin, SKHHP Executive Manager; Dorsol Plants, SKHHP Program Coordinator; Tina Narron, SKHHP Advisory Board; Laural Humphrey, City of Tukwila; Dafne Hernandez, City of Covington; Matt Torpey, City of Maple Valley; Nicholas Matz, City of Normandy Park; Angie Mathias, City of Renton. II. PUBLIC COMMENT No public comment was provided. III. APPROVAL OF NOVEMBER 17, 2023 MINUTES Brian Davis moved to approve the November 17, 2023 minutes as presented, seconded by Victoria Schroff. Motion passed (8-0) IV. AGENDA MODIFICATIONS No modifications to the agenda were made. V. BOARD BUSINESS a. APPOINTING MEMBERS TO THE SKHHP ADVISORY BOARD AND INTRODUCTION Claire Goodwin provided an overview of the recruitment and selection process for the six SKHHP Advisory Board appointment candidates: In June, we presented a plan to recruit members to the SKHHP Advisory Board and solicited the names of individuals the Executive Board identified to target. Since June, Dorsol Plants, SKHHP Program Coordinator, has been actively engaged in a recruitment effort to identify potential candidates and communicated with over 40 individuals. We received 13 applications to fill six vacancies, and 11 interviews were conducted. The interview panel consisted of SKHHP's Executive Board Chair and Vice Chair, Nancy Backus and Dana Ralph; SKHHP Executive Board Member Brian Davis; Advisory Board Member Dr. Linda Smith, who participated in the first interview; and Advisory Board Member Maju Qureshi, who participated in the second and third interviews. By way of background, the SKHHP Interlocal Agreement (ILA) requires us to establish a 12-15 community member Advisory Board appointed by the Executive Board. The role of the Advisory Board is to provide advice and recommendations to the Executive Board on land and/or resource allocation for affordable housing projects, input on policy needs related to housing stability, program design, and development, recommendations for emergency shelter and other immediate affordable housing needs, and to provide public education and community outreach services. The ILA requires members appointed to the Advisory Board to know and understand affordable housing, be committed to furthering affordable housing in South King County, and represent diverse community perspectives. Appointments last four years, with service limited to two consecutive terms. The Advisory Board provides feedback and recommendations on two significant bodies of work during the work plan development process and the Housing Capital Fund recommendations. I am excited to present the six candidates for your consideration to appoint to the Advisory Board today. First is Hamdi Abdulle. Hamdi is a resident of Kent and would represent African Community Housing & Development. Hamdi brings her experience leading this non-profit housing developer and has deep experience working with the African diaspora immigrant and refugee community. Second is Marie Arns. Maria is a resident of Kent and would not be representing an organization. Maria brings her passion for addressing affordable housing challenges and her background as a person who has experienced homelessness, which is a crucial perspective for our Advisory Board. Third is Kent Hay. Kent is a resident of Auburn and would not be representing an organization. He brings deep experience working to address homelessness in South King County. Fourth is Kathleen Hosfeld. Kathleen is a resident of Seattle and would represent Homestead Community Land Trust. You may recall Katheleen’s presentation to the Executive Board earlier in the year on the community land trust model for maintaining affordability through homeownership. Kathleen brings her experience leading a successful non-profit community land trust and developing affordable housing with projects in South King County. Fifth is Olga Lindbom. Olga is a resident of Federal Way and would represent Open Doors for Multicultural Families. Olga brings her experience supporting families with an intellectual and/or developmental disability through a social services organization. And sixth is Rumi Takahashi. Rumi is a resident of Seattle and would represent SMR Architects. SMR architects designs, preserves, and advocates for affordable housing, and they have projects in South King County. Rumi brings her passion for affordable housing development and perspective as an architect of affordable housing. All candidates identified experience working with low-income households, BIPOC community members, immigrant and refugee populations, people experiencing homelessness or housing insecurity, veterans, aging adults/seniors, and youth. Most candidates identified experience working with LGBTQ+ communities, people living with disabilities and/or behavioral health needs, people with a criminal history, and multigenerational households. Brian Davis added that after having the opportunity to interview all the candidates, he was excited about who was being recommended. Deliberations took some time, and the panel had the excellent problem of picking from a group of strong candidates. He is looking forward to working with the six selected candidates. Brian Davis moved to adopt Resolution 2024-01, appointing the recommended candidates to the SKHHP Advisory Board for a term of four years, seconded by Colleen Brandt-Schluter. Motion passed (8-0) Eric Zimmerman joined the Executive Board meeting at 1:20 PM. Claire Goodwin asked each of the new Advisory Board members to introduce themselves and any current Board Members present. Hamdi Abdulle said she was excited to join the SKHHP Advisory Board and has worked to support her community in SeaTac for a long time. The road was very steep coming to the US and the State of Washington, but my experience has taught me a lot, and I am glad to share that with the Advisory Board. Kathleen Hosfeld is the CEO of Homestead Community Land Trust and the proud new owner of a rental housing project in Renton. While Homestead is new to rental work, the governance structure is unique and creates greater resident autonomy. She is excited to work in partnership with everyone moving forward and bringing more homeownership to South King County. Olga Lindbom said she is honored to be a part of the SKHHP Advisory Board and to add the voice of the communities she is a part of and represents. She has worked for the past ten years at Open Doors for Multicultural Families, providing programs and services for families at the intersection of cultural/linguistic diversity and disability in South King County. Rumi Takahashi said she is excited to join the organization and get to know her fellow board members. She has worked behind the scenes on the design and construction of affordable housing and is excited to jump into the policy side to help develop better housing. Tina Narron is the Chief Lending Officer at Verity Credit Union and joined the Advisory Board in February 2023. What drew her to SKHHP is that it matched Verity’s mission to help build generational wealth and support affordable housing. SKHHP is one way to ensure that someone is speaking about the need for equitable housing programs. Uche Okezie serves as a private citizen on the Advisory Board and is a resident of Burien. She joined to help create change and ensure affordable rental and homeownership opportunities. She has been a board member since November 2021 and has enjoyed the work, including funding projects through the Housing Capital Fund. Claire Goodwin thanked the Advisory Board members for introducing themselves and congratulated the new Advisory Board members. She confirmed with Dorsol Plants that the next Advisory Board meeting was on February 1, 2024. Traci Buxton stated she was grateful and impressed by the quality of the candidates and their work professionally and as volunteers to improve their community. VI. BRIEFING a. INTRODUCTION TO TAX INCREMENT FINANCING (TIF) Claire Goodwin began by reminding the Executive Board that at the June 2023 meeting on long- term funding strategies for the Housing Capital Fund, the Board identified tax increment financing (or TIF) as a topic of interest to learn more about. The Executive Board confirmed their continued interest at the November 2023 Board meeting, and subsequently, SKHHP staff identified one of the TIF subject matter experts. That subject matter expert is Morgan Shook, Partner/Senior Policy Advisory at ECOnorthwest, and Morgan has graciously offered to present to us today. Morgan has deep expertise in economic, market, and financial analytics that he brings to bear in business, enterprise, and policy settings. Morgan regularly works for various government, business, and non-profit clients, providing analyses highlighting opportunities, consequences, and trade-offs of land and infrastructure decisions. After Morgan’s presentation, Brian Davis from the City of Federal Way will discuss his perspective of TIF and Federal Way’s utilization of the tool to redevelop a vital area of the city. Morgan Shook explained that his expertise is twofold: on the housing and infrastructure sides. On housing, he has worked on land development for affordable housing developers and local government, particularly transit agencies in Washington, Oregon, and California. In Washington, the focus has been on helping to steer equitable development to create deeply affordable units and advance other community benefits. His early history of policy development was working with cities when Washington State offered a tax credit to encourage the annexation of large areas, which led to an understanding of the fiscal challenges many cities face. Washington has had a TIF program for roughly thirty years and was initially called Community Revitalization Financing (CRF). CRF was only used between the City and County of Spokane, and it was a tax-sharing arrangement between the two entities to allow neighborhood-level community planning for infrastructure. This process needed more support for economic development and led to the creation of two laws in the 2000s: the Local Infrastructure Financing Tool (LIFT) and Local Revitalization Financing (LRF). LIFT was very popular and allowed a sales tax credit of up to $25 million back to the jurisdiction, which several cities successfully used. The downside was that it required the state to provide funding for the program. LIFT would morph into the LRF, which was not competitive but was a first-in, first-out tool. Roughly 25 cities would receive funding over five rounds between the two programs. Over the years, the Association of Washington Cities and others would lobby for the state legislature to provide some specialized infrastructure funding tool. In 2021, the legislature would establish a robust TIF process in response to the economic challenges brought on by COVID-19. TIF is an economic development tool available to cities, counties, and ports that allows increased property tax revenue stemming from private development to be used "up front" to invest in infrastructure to support the development. TIF is designed to benefit a specific site or area with high certainty that development will occur. TIF is established by a "but/for" agreement, meaning the development would not occur without the infrastructure improvements. This can include the argument that the development would only occur on-time, at-scale, or match the community's desires with that investment. The Tax Increment Area (TIA) is sometimes known as a TIF district and is the area where the incremental values are calculated. Inside a TIA, the base value is the taxable value of properties in the TIA at the time it is created based on the tax year it is established. The increment value is any positive change above that base value in any given year the increment is being measured. Finally, public improvement is defined by the infrastructure funded by the TIF investment, and there is a legal requirement that a local government must own these. TIF funds can be spent in two general ways. The first side is what is in the "but/for" argument or the things which must be built to support the development. These can be things inside and outside of the TIA and can include road construction, water/sewer connections, parks, transit facilities, brownfield mitigation, and other items generally considered public infrastructure. An example of an improvement outside of the TIA might be a roadway intersection a 0.5 mile away, which requires improvement to allow for the increased traffic the new development will bring to the area. The second group of expenditures are things you can spend TIF funds on that do not fit into the "but/for" argument. This can include purchasing, rehabilitating, retrofitting for energy improvements, and constructing housing to create or preserve long-term affordable housing. Energy retrofits are not required to be tied to affordable housing but can be used separately or to rehabilitate affordable housing. Additionally, funds can be spent to improve security and maintenance for public improvements and relocate and construct government facilities. A TIF is created by an ordinance that designates the TIA and identifies the public improvements being financed. The ordinance must be adopted by June 1 to create it for the following tax year. If a jurisdiction wanted to meet this year's June 1 threshold, you would use the certified assessed tax values in the TIA from 2023, and next year, the increment will be calculated off the increased value in 2024. Because there is a lag between when taxes are assessed and collected, most jurisdictions would not receive actual money in hand until late 2025 or early 2026. Once the ordinance is adopted, a jurisdiction cannot change the boundary of the TIA or add additional public improvements. Outside the ordinance, some procedural steps exist to establish a TIF. The jurisdiction must hold at least two public meetings solely on the proposed TIF. A project analysis must also be submitted to the State Treasurer for review and comment. Based on their analysis, the Treasurer has 90 days to issue a letter and comments back to the jurisdiction. Responding to the letter or comments is not required, but the letter must be made available for public review. The Treasurer will look at several items during their analysis. This will include TIA boundaries, the duration of the increment area, and a description of the expected private development with scenarios describing the project with and without proposed public improvements. The real property in the TIA will be assessed for its value and any impacts necessary to address or mitigate, such as impacts on the local business community, affordable housing, and public schools. Additionally, if 20% of the assessed valuation of fire districts is included in the TIA or there is an increased level of service, a mitigation plan must be implemented. The fire districts are the only ones named for mitigation because many areas see the fire district as having the highest property levy. As a provider, fire districts have a different level of control related to these issues than a city. In the first two years, Morgan Shook has supported the analysis of 18 proposed TIFs in Washington. Four jurisdictions have created TIF districts, and another three are likely to begin this year. During the analysis, the Treasurer is keenly looking at the financial risks and creditworthiness. They want to ensure that the jurisdictions have done their math but also considered downside risks, such as how much a developer is sharing the risk or what reserves may be available during a downfall. Ultimately, the jurisdiction is on the hook, unlike LIFT or LRF, and the Treasurer’s desire is to see mitigation plans in place. Boundary considerations for TIF include that the sponsoring jurisdiction cannot have more than two TIAs at a time, and the boundaries cannot overlap. Increment areas at the time of creation can total up to $200 million in assessed valuation or be at most 20% of the total assessed valuation for the sponsoring jurisdiction. It is important to note that the $200 million, or 20% limit, is the summation of both TIAs in a single jurisdiction. The 20% limit is most likely to impact decision-making for smaller jurisdictions, but the $200 million limitation is more likely to be the limiting factor for larger jurisdictions. An ideal TIA is an area with a low base valuation near significant near or long-term development. Most of the TIF value will occur later in the life of the area, and to keep the risk low, one should limit the list of infrastructure investments to small, essential projects. A TIA is not a "set it and forget it" arrangement; there is uncertainty, such as a project delay or the assessment failing to capture everything that could occur in a year. Calculating the base value of a TIA is the added taxable value inside the boundary area. This will remain the base value over the potential 25 years of TIF. The increment is a non-negative number and is the district's valuation in that year minus the established base value. When the developer pays property taxes to the State, the State sends the increment value back to the sponsoring jurisdiction for investment. It is important to note that TIF affects regular property tax levies. A regular levy is subject to constitutional provisions such as the 1% limit factor. This means almost all property tax levies are included except state school levies, excess levies, and local school levies. Using an example from Shoreline, the 2023 tax rate was $9.68, and the property tax levies eligible for TIF sum $3.46, giving a 36% levy capture rate. By looking at the tax rate and the levies impacted, you can better understand what is available for TIF allocation. TIF dollars can only be spent on public improvements outlined in the ordinance and can only run for 25 years. Bonds issued will count against the jurisdiction's debt capacity, and no state backup exists. Any additional revenue after covering the cost of public improvements or repaying the bonds must be returned to the tax district in proportion to the regular tax levy rates. Local governments may be responsible for reimbursing the County Assessor, but this has yet to occur in King County. The state legislature is considering a bill allowing junior tax districts to opt out of a TIF. This would lessen the revenue available and is likely based on a misunderstanding of the state tax structure. Compared to other states, Washington has a unique tax structure, which causes things to look and work differently. Many jurisdictions interpret TIF as a way they lose revenue and on the face that seems easy to understand. The state law has a provision known as "Do no harm," which changed how district levies are computed to stay within the 1% limit factor but also provided new levy capacity to pay for the money going out of TIF. You can only increase your levy by 1% a year plus some amount of add-ons such as the value of new construction times last year's levy. The TIF law created an "increment add-on," which allows you to multiply the increment with last year's levy to compensate for funds lost to a TIF. You do lose money at the TIF level, but new money at the district level offsets that amount. The Alexan, located in Shoreline, is used as an example to determine how much money would be available. The Alexan is a 300-unit multifamily project assumed to begin construction in 2025. The preconstruction assessed value of the site is around $5.2 million. If the city were to create a TIF around the immediate area of the development, there would be a nominal cash flow of $11.2 million over twenty-five years. This would support a bond of up to $7 million for the development of affordable housing, childcare, or other infrastructure. This example looks at a single development, but most of the analysis work done so far includes multiple sites in a single area. One example includes planning around the Kirkland, WA, Link light rail station area that can potentially bond $50-$80 million against the present value. The bigger you get means more revenue, but the greater number of projects reduces the certainty. TIF cash flow can take time to ramp up, and most of the revenue will come in the later years. Sponsors must have a financial plan to cover early 'deficit' years. Even for an entirely sure TIF project, there will be shortfall years. The Treasurer’s review will examine how carefully jurisdictions have looked at these problems and how they will mitigate small to larger shortfalls. Project analysis must look at a project's potential impacts on affordable housing. It has been understood that it is not about broad impacts, such as affordability going up or down in the area, but specific impacts, such as demolishing an existing affordable housing unit. Thus far, most of the TIA's have been in urban, commercial areas and have not impacted existing affordable housing. The conversation around affordable housing has tied more directly into planning and policy discussions, such as using TIF dollars to help fund land acquisition, pre-development activities, or gap funding. No one has done that, but many cities have been thinking about that. The first phase of TIF has been building new areas for jurisdictions. The second phase appears to focus more on using TIF to meet the need for affordable housing. Some top issues impacting the TIF conversation include opportunity costs and tying low-value areas with a desire to develop or being limited to only two TIFs simultaneously. Development scaling and timing are also a challenge, as more development creates a greater sense of uncertainty. A TIF will have to be managed year after year and cannot be set in place and left alone. Additionally, managing and preparing for the deficit years that will occur over the 25 years of the TIF is more challenging for some jurisdictions than others. Finally, infrastructure demands are significant, and there is a constant need to balance those against the impact on the taxpayers. Brian Davis provided a brief update on the City of Federal Way's use of TIF. Federal Way is currently working on a mitigation plan with the fire district as part of its efforts to utilize TIF. TIF is a long-game strategy, and fire districts tend to focus more on the moment due to the nature of their services. If it is possible to consider the long game, TIF can be a truly effective strategy. While working in Oregon, TIF enabled revitalization and started several developments only possible with the investment TIF allowed. Federal Way has had some great discussions and hopes to redevelop a portion of the city's downtown area around the 320th Street corridor to include mixed-use development. This area is adjacent to one of the incoming Link light rail stations, a prime location for future development. The City is monitoring the changes at the state legislature, which would allow junior districts to opt-out and potentially have a negative impact on future TIF development. There is a real challenge when choosing to forgo current tax revenue for future development, which may be years from completion. Traci Buxton wanted to confirm that TIF fundamentally works by taking out a bond to support development in the area, and the jurisdiction receives taxes based on the increased value to pay back the bond. Morgan Shook confirmed that was the basic concept when utilizing TIF. Victoria Schroff asked if the slides would be made available after the presentation. Claire Goodwin confirmed that it would be available and could be found in the agenda packet. Traci Buxton asked if it was possible to bond against the projected value, not just the current one. Morgan Shook confirmed yes, and nothing prevents a jurisdiction from paying as they go as an alternative. Due to issues each jurisdiction faces, some have considered doing multiple debt issuances, but it does get more complicated. Traci Buxton asked how a tax-exempt status, such as an MFTE, may interact with a TIF and if you would want to avoid having an MFTE project inside the TIA. Morgan Shook confirmed that you would not want an MFTE inside a TIA, though you could account for the loss in tax revenue as part of the financial planning. Brian Davis added that Federal Way is currently looking at this interaction and considering the impacts of an MFTE inside their projected TIA. It is essential to avoid cannibalizing your tax revenue too much. You can consider and mitigate the impact of a tax-exempt project inside a TIA. b. 2024 STATE LEGISLATIVE UPDATE Dorsol Plants provided an update on the 2024 Washington State Legislative Session. The intent is to provide a high-level overview of a few housing and land use bills that tie into SKHHP's legislative priority or have seen a lot of attention in the last two weeks. The SKHHP 2024 legislative priority focuses on funding all aspects of affordable housing. This includes homeownership for moderate-income households and below, preservation of naturally occurring affordable housing (NOAH), land acquisition to secure permanent affordability, permanent supportive housing (PSH), infrastructure around affordable housing developments, and workforce housing. Reviewing the legislative session timeline, the next key date is January 31, which is the policy committee cutoff or when policy bills need to be voted and approved out of committee to continue in the session. The final day of the legislative session will be March 7. Some highlights from the Governor’s proposed 2024 budget for housing and homelessness include $100 million for rapid capital acquisition and $4.5 million to support housing for those with intellectual and/developmental disabilities. Additionally, $10 million to backfill document recording fee lost revenue, $7.5 million for landlord mitigation and tenant preservation, and $2.5 million for an emergency housing fund for cities, counties, and non-profits to support people needing emergency housing assistance. Not shown on the slides but included in the budget is an additional $10 million proposed for the Right of Way Initiative and $10 million for an encampment resolution program. Several bills related to funding housing this year are in the legislative session. One bill to highlight is SB 6173. SB 6173 was in its first public hearing today and is now scheduled for Executive Session on January 24; the bill would add language that would enable SHB 1406 funds to be used to support the development of affordable homeownership opportunities up to 80% AMI. HB 1892 would create the Workforce Housing Accelerator Revolving Loan Fund Program (WHLP) within the Department of Commerce (DOC) and direct DOC to contract with the Washington State Housing Finance Commission (WSHFC) to administer the revolving loan program. The funding would be drawn from the General Fund, and as of the time of this presentation, the funding amount has yet to be decided. A current limit of $20 million per county per year strives for geographic equity. Like last year, we have a transit-oriented development bill (TOD). HB 2160 and SB 6024 have had some changes when introduced and since the session began. The bill defines "station areas" as within a 0.5 mile walking radius of light rail, commuter rail, and streetcars and within a 0.25 mile walking radius of bus rapid transit. Within station areas, cities are prohibited from imposing a maximum density in terms of homes per acre and from imposing parking requirements, except those dedicated exclusively to individuals with disabilities. While there is a lot in these bills, one item to call out is the requirement for the Department of Transportation to designate a liaison as a point of contact for local governments and project proponents regarding land use decisions and processing development permit applications. SB 5961 and HB 2114 have seen a lot of attention in the legislature and the media. Both bills are commonly referred to as “Rent Stabilization." They both seek to limit rent increases for most tenants to 5% per year. However, it exempts tenancies in homes built within the past ten years or those operated by a public development authority, housing authority, or non-profit organization where maximum rents are already restricted. It will also require six months’ notice for a rent increase of 3% or more. Additionally, it will ensure that fees count as rent to calculate a rental increase and limit move-in fees to the equivalent of one month's rent or less. It will also limit late fees to $10. While only some legislative bills were reviewed, the housing and land use bills that SKHHP staff will track through the legislative session are listed in the PowerPoint presentation. Each bill is hyperlinked so you can easily see current status information or read the bill at your convenience. Dorsol Plants thanked the Executive Board for the opportunity to present and informed them he would provide a legislative update each month through the end of the session. Claire Goodwin added that she wanted to highlight SB 6173, which she mentioned has been discussed by the Executive Board on several occasions and had sent information to the Executive Board earlier that week. Several board members signed in and spoke on the bill, which would enable SHB 1406 funds to serve households up to 80% AMI for homeownership. She will continue to send alerts she believes are of interest to the Board. UPDATES/ANNOUNCEMENTS Claire Goodwin provided an update on the SKHHP Chair and Vice-Chair elections. Nominations for Nancy Backus for Chair and Dana Ralph for Vice-Chair have been received. Elections will be held at the February Executive Board meeting due to several board members needing to attend the Conference of Mayors. Claire Goodwin informed the Executive Board that the City of SeaTac will take final action on January 23, 2024, to join SKHHP. If the City Council does approve the Interlocal Agreement, the Board will take action at the February meeting to incorporate the City of SeaTac as a member of SKHHP. Claire Goodwin provided an update on planning for the Executive Board meeting over the next few months. Based on feedback from the Executive Board, developers will come to present their current work in South King County. This will start at the February meeting, where we will hear from the 2023 Housing Capital Fund recipient, Multi-Service Center. Additionally, SKHHP staff will begin visiting each member city council to receive concurrence on the 2023 Housing Capital Fund recommendation over the next few months. Finally, the work on the 2025 Work Plan and 2024 Housing Capital Fund guidelines will begin in February and move quickly in preparation for Claire Goodwin’s maternity leave from May to September. Claire Goodwin will be on vacation from January 22 to 26. Executive Board members needing support can contact the SKHHP Program Coordinator, Dorsol Plants. Sunaree Marshall provided an update that she will also be on maternity leave around the same time as Claire Goodwin and will provide an update on who will serve on the Executive Board in her absence soon. Traci Buxton congratulated both Claire Goodwin and Sunaree Marshall. VII. ADJOURN Traci Buxton adjourned the meeting at 2:47 PM. Interlocal Agreement Between South King Housing and Homelessness Partners (“SKHHP”) and the City of SeaTac This Companion Agreement (“SeaTac Companion Agreement”) expands the Parties of the South King Housing and Homelessness Partners (“SKHHP”) Interlocal Agreement to include the City of SeaTac, a municipal corporation of the State of Washington. WHEREAS, the SeaTac Companion Agreement is made pursuant to the Interlocal Cooperation Act, chapter 39.34 RCW, for the purpose of adding a municipal government to the original SKHHP Interlocal Agreement; and WHEREAS, the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Normandy Park, Renton, Tukwila, and King County executed the SKHHP Interlocal Agreement with an effective date of January 1, 2019 and the city of Maple Valley executed a companion agreement with SKHHP on February 4, 2022 (hereinafter referred to as the “Parties”); and WHEREAS, the Parties have a common goal to ensure the availability of housing that meets the needs of all income levels in South King County; and WHEREAS, the Parties wish to provide a sound base of housing policies and programs in South King County and complement the efforts of existing public and private organizations to address housing needs in South King County; and WHEREAS, the Parties wish to act cooperatively to formulate affordable 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 goals of the Washington State Growth Management Act, related countywide planning policies, and other local policies and programs relating to affordable housing, and to do so efficiently and expeditiously; and WHEREAS, the Parties have determined that the most efficient and expeditious way for the Parties to address affordable housing needs in South King County is thro ugh cooperative action and pooling public and private resources; and WHEREAS, the intent of this cooperative undertaking is not to duplicate efforts of non - profit organizations and other entities already providing affordable-housing-related services; and WHEREAS, a cooperative work plan with a primary focus on the production and preservation of affordable housing, is needed because the lack of access to affordable housing in one of the key contributors to homelessness; and WHEREAS, the city of SeaTac would like to become a Party to the SKHHP Interlocal Agreement and share in the above recited efforts cooperatively with the current Parties to the Interlocal Agreement; and WHEREAS, as a Party to the SKHHP Interlocal Agreement, SeaTac shall agree to all the obligations and responsibilities required of the Parties and adopt the SKHHP Interlocal Agreement, the Work Plan, and Operating Budget and contribute monetarily to SKHHP’s operating budget with an annual contribution; and WHEREAS, the Parties would like SeaTac to become a Party to the SKHHP Interlocal Agreement; and WHEREAS, Section 20 of the SKHHP Interlocal Agreement authorizes the SKHHP Executive Board to add the City of SeaTac as a Party to the SKHHP Interlocal Agreement upon two-thirds majority vote of the membership of the Board. NOW, THEREFORE, in consideration of the mutual promises, benefits, and covenants contained in this Companion Agreement: SKHHP agrees to the following terms and conditions: Section 1. The SKHHP Interlocal Agreement between the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, Tukwila, and King County is hereby expanded to include the City of SeaTac as a Party. Section 2. As a Party to the SKHHP Interlocal Agreement, SeaTac shall be afforded all rights and responsibilities of Parties to the SKHHP Interlocal Agreement. The City of SeaTac agrees to the following terms and conditions: Section 1. The City of SeaTac agrees to become a Party to the SKHHP Interlocal Agreement and adopts the recitals, mutual promises, benefits, terms, covenants, and conditions of the SKHHP Interlocal Agreement signed by the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Tukwila, and King County, attached hereto as Exhibit A. Section 2. As a Party to the SKHHP Interlocal Agreement, the City of SeaTac agrees to and adopts the 2024 SKHHP Work Plan and Operating Budget, attached hereto as Exhibit B. Section 3. As a Party to the SKHHP Interlocal Agreement, the City of SeaTac agrees to pay its share of SKHHP’s operating budget beginning in 2024, assuming this agreement is executed by December 2023. If this agreement is signed in 2024, the City of SeaTac agrees to pay a pro-rated amount of its share of SKHHP's 2024 operating budget, beginning on the first day of the month this agreement is signed. SeaTac’s 2024 operating contribution shall be $11,407. All future annual contributions will be established in the SKHHP annual operating budget. Section 4. This Agreement will be in full force and effect only after the City Council of the City of SeaTac has authorized the City Manager to execute this Agreement and after the SKHHP Executive Board affirmation by a two-thirds majority vote. CITY OF SEATAC ___________________________________ Carl Cole, City Manager __________ Department Head Initial Attest: ___________________________________ Kristina Gregg, City Clerk Approved as to form: ___________________________________ Mary Mirante Bartolo, City Attorney Executed this _______ day of ________________, 2024. SOUTH KING HOUSING AND HOMELESSNESS PARTNERS ___________________________________ Nancy Backus, SKHHP Executive Board Chair Executed this _______ day of ________________, 2024. ATTACHED EXHIBIT A EXHIBIT B ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 1 of 7 RESOLUTION NO. 2023-01 A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2024 SKHHP WORK PLAN AND OPERATING BUDGET WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves an annual work plan and budget each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an itemization of all categories of budgeted expenses and itemization of each Party’s contribution, including in-kind services; and WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will be transmitted to each participating jurisdiction for approval by their legislative body; and WHEREAS, the budget will not become effective until approved by the legislative body of each jurisdiction and adopted by the SKHHP Executive Board; and WHEREAS, if a party does not approve the work plan or budget in a timely manner, the Executive Board may adopt the budget and work plan with a two-thirds majority vote; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and implement the overarching SKHHP mission to work together and share resources to increase the available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2024 work plan includes four goals with corresponding action items that further SKHHP’s mission. NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows: Section 1. The Executive Board adopts the 2024 SKHHP Work Plan in Attachment A. Section 2. The Executive Board adopts the 2024 SKHHP Operating Budget in Attachment B. Section 3. Each party’s contribution to SKHHP’s operating budget will be transmitted on an annual basis during the first quarter of the calendar year. Section 4. This Resolution will take effect and be in full force upon approval by the legislative body of each participating jurisdiction. Dated and Signed this __22nd_day of _____May, 2023 _________________________ NANCY BACKUS, CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 2 of 7 RESOLUTION 2023-01 – ATTACHMENT A SKHHP 2024 WORK PLAN PURPOSE Establish a 2024 SKHHP work plan and budget that is guided by Executive Board priorities, is consistent with the SKHHP Interlocal Agreement, and furthers SKHHP’s mission. BACKGROUND Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. The 2024 SKHHP work plan builds on work done in previous years and was developed in collaboration with the Executive Board, Advisory Board, and staff work group. The work plan is organized into four goals with corresponding objectives and action items. Each action is identified by priority as follows: • Higher – Identified as higher priority by Executive Board or is necessary to carry out the Interlocal Agreements • Medium – Identified as mid-level priority • Lower – Identified as lower priority Quarterly budget and progress reports on the status of the work plan elements will be submitted to the SKHHP Executive Board and the legislative body of each member jurisdiction as follows: Quarter 1: May | Quarter 2: August | Quarter 3: November | Quarter 4: February In accordance with the Interlocal Agreement, the 2024 SKHHP work plan and budget will be approved by the SKHHP Executive Board and the legislative body of each member jurisdiction. SKHHP MISSION South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. GOALS & OBJECTIVES Number Goal Objective 1 Fund the expansion and preservation of affordable housing. Coordinate public resources to attract greater private and public investment for affordable housing in South King County. preserve affordable housing. to promote sound housing policy. County. South King County needs at a local, administration. Interlocal Agreement requirements. ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 3 of 7 Goal 1 Fund the expansion and preservation of affordable housing. Actions Priority of Actions ••• = Higher •• = Medium facilitate conversations with member jurisdictions to identify and explore dedicated sources of revenue for affordable housing at the approval from participating Councils and preparing contract annual guidelines, updating application materials, soliciting proposals, Indicators o o o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 4 of 7 Goal 2 Develop policies to expand and preserve affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower homelessness topics, especially as they relate to the goals of the work Indicators o o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 5 of 7 Goal 3 Serve as advocate for South King County. Actions Priority of Actions ••• = Higher •• = Medium • = Lower organizations and stakeholder groups to provide education and engagement opportunities for elected officials and community promote shared affordable housing goals and equitable geographic that help advance SKHHP’s mission and provide a voice for increasing Indicators o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 6 of 7 Goal 4 Manage operations and administration. Actions Priority of Actions ••• = Higher •• = Medium • = Lower regular financial reports for the SKHHP Housing Capital Fund and SKHHP Indicators o o o o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 7 of 7 RESOLUTION 2023-01 – ATTACHMENT B 2024 SKHHP Operating Budget Estimated beginning fund balance - January 1, 2024 $ 205,736 Estimated ending fund balance -December 31, 2024 $ 144,877 REVENUES Auburn $ 39,543 Burien $ 22,814 Covington $ 11,407 Des Moines $ 11,407 Federal Way $ 51,710 Kent $ 51,710 Maple Valley $ 11,407 Normandy Park $ 6,084 Renton $ 51,710 Tukwila $ 11,407 King County* $ 51,710 Additional King County* $ 23,290 Interest earnings $ 2,100 Office space (in-kind donation) $ 12,000 TOTAL REVENUES $ 358,299 Spend down balance $ 60,859 TOTAL $ 419,158 EXPENSES Salaries and benefits $ 305,344 Interfund IT $ 31,500 Advisory Board compensation $ 14,400 Office space (in-kind donation) $ 12,000 Other professional services/Misc. $ 6,400 Travel $ 5,250 Professional development $ 5,250 Supplies $ 2,000 Subtotal $ 382,144 Administering agency - 10% admin fee** $ 37,014 TOTAL $ 419,158 *King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year. **10% administrative fee is calculated as a percentage of operating costs which excludes in-kind donations and carry-forwards. Building a future without poverty by creating pathways to help, hope, and dignity for our neighbors.Kirsten York, CEO Kirsten.york@mschelps.org Amanda Santo, COO Amandas@mschelps.org Building a future without poverty by creating pathways to help, hope, and dignity for our neighbors. Since 1971, MSC has been providing help, hope, and change for our neighbors in South King County. We employ around 100 people, and rely on the generosity of over 600 volunteers to provide services. MSC is a community action agency and believes that everyone deserves a chance and that connected neighbors create healthy communities. We seek and use community input to provide solutions. And, we believe in the power of partnership to help people change their lives. MSC is a 501(c)3 non-profit that is funded through private support from individuals and businesses, as well as local, regional, and federal funding sources. Utility assistance is available to help low -income individuals and families pay all or part of their home energy, water, and sewer bills, as well as purchase an AC unit. If you qualify, payment is sent directly to your provider. If your service is still connected, but you can't pay your bill, or if your service has been disconnected call our appointment line at 253 -517- 2263 (24 hrs) or visit www.mschelps.org/gethelp/energy for eligibility and to schedule an appointment. MSC's Federal Way Food Bank is open to all who live within the Federal Way School District, and those who live in zip code 98422 (NE Tacoma.) FOOD BANK HOURS: Monday, Wednesday, Friday from 10am-2pm (closed Federal holidays) LOCATION: 1200 S 336th St., Federal Way WHAT TO BRING: Please bring a photo ID Boxes or bags for food. February 2022 MSC supports customers to increase their employability skills and obtain individualized support with pursuing their next career or job opportunity. MSC staff help identify and reduce barriers that may be keeping customers from successfully reaching their goals. Participants must be 18 years of age or older, live in South King County, and be willing to work with MSC staff to achieve self -identified goals. February 2022 Long-Term Care Ombudsmen advocate for elderly and disabled adults by providing information about their resident rights, by working to resolve problems on behalf of residents, and by advocating for improvements in the long-term care system. This program serves Washington State. Call 800-562-6028 or email ltcop@mschelps.org. With one-on-one support and proven resources, our youth and young adult programs help young people ages 16 -21 turn their lives around and take the critical steps toward a self -sufficient future. Our staff can provide mentorship as well as help with education or training goals, employment, and other resource needs. Call 253 -838-6810. We provide culturally and linguistically appropriate support to connect participants to community services and resources with the goal of helping families and individuals navigate their new communities. Call 253-740-1963 for more information. Our culturally diverse staff provide: •Resource navigation •Information and referrals •Cultural orientation and educational workshops We provide a limited amount of rent assistance to Auburn, Burien,Federal Way, Kent, Renton, and SeaTac residents only. A limited amount of utility assistance is available to Des Moines, Kent, Renton, and SeaTac residents only. Funds are limited to one-time help only. Call 253 -893-0024 on the first Tuesday of the month between 9am to 12pm or complete an application online. February 2022 MSC is a Regional Access Point (RAP) for King County Coordinated Entry for All which provides housing resources for individuals throughout King County, including MSC’s family shelter. Appointments are available to those that are homeless, fleeing domestic violence, or leaving an institution after 90 days. Make an appointment by calling 253-874-6718 or emailing rap@mschelps.org with your name and a safe number or email to reach you. Single adults, actively participating in increasing their overall well -being, who are unhoused, and cannot afford market rate rent, can live in a supportive, communal environment while working on securing permanent housing. For more info on Titusville (housing for single women) call 253 -854-4406, ext. 146 and for more info on Burien Veterans House call 206-477-7022 (referral by KCVP only). Kenyon Place - Buckley Maple Lane - Kent Victorian Place - Des Moines Mansard Estates - Auburn White River Apts - Auburn Villa Capri - Federal Way Fawcett - Tacoma Fern Hill - Tacoma Hawthorne Lane - Graham February 2022 SENIORS ONLY: Colvos Terrace (62+, Gig Harbor) Mitchell Place (62+, Federal Way) Radcliffe Place (62+, Kent) Rainier View (55+, Fife) VETERANS: William J. Wood Veterans House – Federal Way Auburn Units Target Populations Mansard Estates 9 General affordable White River 24 General affordable Des Moines Victorian Place II 20 General affordable Federal Way Mitchell Place 47 Seniors Villa Capri 86 General + 9 HAP units William J Wood Veterans House 44 VASH – Veterans PSH Kent Maple Lane Court/Estates 24 General affordable Radcliffe Place 135 Seniors Titusville Station 29 Single women PSH Above – Radcliffe Top Right – William J Wood Veterans House Bottom Right – Mitchell Place Preservation & Operations Challenges •Lack of funding available for existing affordable housing portfolio •Inability to take on additional debt service as option for continued rehab work for aging properties •Aging housing stock marketability •Rising costs for insurance coverage – affordable housing providers being dropped •High operations costs such as security and unit turns when serving high need populations •Need for more housing vouchers and operation subsidies •High outstanding rent balances Development Challenges •High land and construction costs •Financing structures and timelines •Land use policies that allow for density •Supportive permitting processes – changes in staffing, long timelines Preservation Efforts •Victorian Place – SKHHP funding •White River and Maple Lane – applied for HPP Commerce funds •Villa Capri – pending CDBG funds from City of Federal Way Current Developments in Pipeline •334 units at Redondo Heights to be completed by end of 2024 •Additional Food Bank location Online: www.mschelps.org Email: info@mschelps.org Social: @mschelps Phone: 253-838-6810 2024 State Legislative Update Dorsol Plants, SKHHP Program Coordinator February 16, 2024 SKHHP Executive Board 1 SKHHP 2024 Legislative Priority South King County is facing a growing affordable housing crisis. In order to address this crisis, we need to fund all aspects of affordable housing, including: • Homeownership for moderate income households and below • Preservation of naturally occurring affordable housing (NOAH) • Land acquisition to secure permanent affordability • Permanent supportive housing (PSH) • Infrastructure around affordable housing developments • Workforce housing 2 2024 Legislative Session Timeline First Day of 2024 Legislative Session 8 Jan. Policy Committee Cutoff 31 Jan. Fiscal Committee Cutoff 5 Feb. AWC’s City Action Days 2024 7 Feb. Chamber of Origin Cutoff 13 Feb. Opposite Chamber Policy Committee Cutoff 21 Feb. Opposite Chamber Fiscal Committee Cutoff 26 Feb. Opposite Chamber Cutoff 1 Mar. Sine Die 7 Mar. 3 HB 2354:Creating an option for impacted taxing districts to provide a portion of their new revenue to support any tax increment area proposed within their jurisdiction and clarifying that a tax increment area must be dissolved when all bond obligations are paid. •Requires the project analysis conducted by a local government prior to establishing a tax increment area to assess impacts on local emergency medical services and public hospital services. •Provides that a tax increment area expires prior to the sunset date if tax allocations are no longer necessary or obligated to pay any bonded indebtedness to fund public improvement costs. •Requires mitigation agreements between local governments and affected public hospital districts. •Requires arbitration if mitigation agreements cannot be agreed upon. •Requires the Office of the State Treasurer to conduct a study and report to the Legislature on various metrics related to tax increment areas. 4 SB 6173: Encouraging investments in affordable homeownership unit development Allows SHB 1406 (RCW 82.14.540) funds to support housing intended for owner occupancy, as defined in RCW 84.14.010 at or below 80% of the median income. 5 HB 1892: Concerning the workforce housing accelerator program Creates the Workforce Housing Accelerator Revolving Loan Fund Program (HALP) within Department of Commerce, but administered by the WA State Finance Commission, to issue loans for the development of housing for households earning 50 -80% AMI. The loan recipient must… •Begin construction within 180 days of award •Adhere to the Evergreen Sustainable Development Standard adopted by the Department of Commerce •File an annual compliance report •Restrict use of awarded loan funding to eligible costs of housing as defined under RCW 43.180.020 6 HB 2160/SB 6024: Transit Oriented Development •Prohibits cities planning under the Growth Management Act (GMA) from enacting or enforcing any development regulation within a station area that prohibits the siting of multifamily residential housing where any other residential use is permissible, with some exceptions. •Prohibits cities planning under the GMA from enacting or enforcing any new development regulation within a station area that imposes a maximum floor area ratio of less than the transit-oriented density for any new residential or mixed-use development or imposes a maximum residential density. •Limits the ability of cities planning under the GMA from requiring off-street parking as a condition of permitting residential or mixed-use development within a station area. •Creates a categorical exemption from the State Environmental Policy Act for residential or mixed-use development within a station area. 7 HB 2160: Interactive Map Puget Sound Regional Council (PSRC) has created an interactive map showing development areas adjacent to transit that would be created by HB 2160 and SB 5961. The current map reflects Second Substitute House Bill 2160 as passed out of the House Capital Budget Committee. 8 SB 5961/HB 2114: Rent Stabilization •Prohibits a landlord under the Residential Landlord-Tenant Act or the Manufactured/Mobile Home Landlord-Tenant Act from increasing a tenant's rent during the first 12 months after the tenancy begins and limits the amount by which a landlord may increase a tenant's rent during any 12- month period to 5 percent, with certain exemptions. •Provides certain other protections for tenants, such as rent and fee increase notice requirements, tenant lease termination provisions, limits on move- in fees, security deposits, and late fees, and requirements for parity between month-to-month and longer-term rental agreements. •Requires the Department of Commerce to create an online landlord resource center and requires the Attorney General's Office to publish model lease provisions regarding rent and rent increases. 9 Funding Affordable Housing Bill Number Description Status SB 6173 Encouraging investments in affordable homeownership unit development. 2/6 Second reading by Rules Committee SB 5949 Concerning the capital budget.Committee on Ways & Means HB 2089 Concerning the capital budget.1/11 Public hearing in the House Committee on Capital Budget HB 1628 Increasing the supply of affordable housing by modifying the state and local real estate excise tax. 1/8 By resolution, reintroduced and retained in present status. House Rules "X" file SB 6065 Concerning the property tax exemption for cities or counties providing affordable housing to qualifying households. 1/9 First reading, referred to Housing SB 5118 Concerning modifying the multifamily property tax exemption to promote development of long-term affordable housing. but no action was taken in the Senate Committee on Ways & Means 10 Funding Affordable Housing Continued Bill Number Description Status HB 1892 Concerning the workforce housing accelerator program. 2/8 Third reading in House, 0; excused, 1 SB 6136 Reestablishing a business and occupation tax on the privilege of providing property for rent and supporting access to affordable rental property by exempting from tax landlords participating in a rent stabilization program. 1/25 Referred to Ways & Means HB 1343 relief and preserve affordable housing in their communities. 1/8 By resolution, reintroduced and retained in present status SB 5493 Limiting a business and occupation tax deduction for financial institutions to fund affordable housing 1/8 By resolution, reintroduced and retained in present status HB 2219 Providing tax relief for nonprofit development of affordable housing. 1/25 Public hearing in the House Committee on Finance 11 Housing and Land Use Bill Number Description Status SB 6024 Promoting community and transit-oriented housing development. 1/11 Public hearing in the Senate Land Use & Tribal Affairs HB 2160 Promoting community and transit-oriented housing development.2/5 Referred to Rules 2 Review SB 6015 Concerning residential parking configurations.Government HB 2071 Concerning residential housing regulations.2/5 Referred to Rules 2 Review 12 Housing and Land Use Continued Bill Number Description Status HB 1998 Concerning co-living housing. 2/7 Third reading in House, 0; excused, 2 SB 5901 Concerning co-living housing.1/26 Passed to Rules Committee for second reading HB 2084 Establishing an oversight committee to improve construction-related training and pathways to state registered apprenticeships in state correctional facilities. 2/5 Referred to Rules 2 Review HB 1944 Establishing a running start for the trades grant program. 1/8 First reading, referred to Education HB 2123 Establishing a running start for the trades grant program. 1/8 First reading, referred to Education 13 Housing and Land Use Continued Bill Number Description Status HB 1507 Concerning fair housing training for officers or board members in common interest communities.further consideration. Placed on third reading. HB 2276 Increasing the supply of affordable and workforce housing. 1/18 Public hearing in the House Committee on Finance SB 6191 Increasing the supply of affordable and workforce housing.Committee on Ways & Means HB 2113 Concerning compliance with the housing element requirements of the growth management act.2/5 Referred to Rules 2 Review HB 1245 Increasing housing options through lot splitting. 1/10 First reading, referred to Local Government, Land Use & Tribal Affairs 14 Housing and Land Use Continued Bill Number Description Status SB 5961 Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement. 1/26 Executive action taken in the Senate Committee on Housing HB 2114 Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement. 2/7 Placed on second reading by Rules Committee 15 Questions? 16 Auburn | Burien | Covington | Des Moines | Federal Way | Kent | Maple Valley | Normandy Park | Renton | Tukwila | King County SOUTH KING HOUSING AND HOMELESSNESS PARTNERS 2023 Annual Progress Report. 2023 was a time of foundation building, bringing awareness about SKHHP to a wider audience, and expanding the South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund to fund the creation and preservation of affordable housing in South King County. SKHHP welcomed its new Executive Manager to the coalition in January and two member cities pooled a new funding source for the Housing Capital Fund resulting in quadrupling funding available for affordable housing projects and doubling the number of applications received over 2022. GOAL 1. Implement SKHHP Interlocal Agreement. New Executive Manager – Hired and successfully onboarded new Executive Manager. 2024 Work Plan – Facilitated development and adoption of the 2024 work plan and budget. Advisory Board – Recruited, interviewed, and appointed nine new Advisory Board members. New Member – Presented at three City of SeaTac public meetings on becoming a member of SKHHP. SeaTac City Council took action in January 2024 to join as SKHHP’s newest member. GOAL 2. Build long-term sustainability for SKHHP Housing Capital Fund. 2023 Housing Capital Fund – Two member cities pooled revenues collected under HB 1590 to fund affordable housing through the SKHHP Housing Capital Fund quadrupling funding amount available in 2023 over 2022 (from $1.4 million to $5.9 million). Received six applications for funding and the Advisory and Executive Boards recommended fundin g four projects throughout South King County. 2022 Housing Capital Fund – Presented to eight City Councils and received concurrence on the Executive Board’s recommendation to support two affordable housing projects in Burien. GOAL 3. Work with partner jurisdictions to enhance and develop policies that protect existing affordable housing and accelerate access. Preservation Strategies – Worked closely with South King County planners (SoKiHo) on the development of subregional affordable housing preservation strategies. South King County Joint Planners and Developers – Hosted an open discussion with 11 developers on reducing barriers to affordable housing development in South King County. A summary of the discussion is available here. Affordable Housing Inventory Dashboard – Finalized the internal tool and completed the requirements of the Housing Action Plan and Implementation grant on behalf of five cities. GOAL 4. Represent South King County and its affordable housing needs at all relevant decision tables and foster collaboration between partners. Stakeholder Collaboration – Collaborated with King County and ARCH on a joint application for HUD’s Pathways to Removing Obstacles to Housing grant. Updated Congressman Smith on SKHHP’s work. Participation in Local Meetings and Forums – Represented SKHHP at 200+ regional meetings representing 25 unique groups. Attended four statewide forums and one national conference. GOAL 5. Further strengthen regional stakeholders’ understanding of the spectrum of affordable housing options and the range of related needs. Executive Board Briefings – Coordinated six presentations to the Executive Board including on permit accelerator programs, King County's Community Preference Program, King County Housing Authority's preservation program, and Homestead Community Land Trust's homeownership model. WHO WE ARE Formed in 2019 by an Interlocal Agreement, we are a collaboration between 10 South King County cities and King County united under the common goal to ensure the availability of housing for all income levels of residents in South King County. We achieve this through a focus on the production and preservation of affordable housing, partnership with public and private organizations, pooling and sharing resources, and advancing housing policies. PURPOSE Create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. CONTACT Claire Vanessa Goodwin Executive Manager Website: http://skhhp.org Phone: (253) 931-3042 Email: info@skhhp.org 2 South King Housing and Homelessness Partners Fund Status as of December 31, 2023 REVENUES OPERATING ACTUAL HOUSING CAPITAL FUND CONTRIBUTIONS 2023 DEPARTMENT OF COMMERCE GRANT ACTUAL Auburn $ 34,385 $ 152,865 $ 6,556 Burien 19,838 69,897 6,556 Covington 9,919 438,028 - Des Moines 9,919 34,301 - Federal Way 44,965 133,558 - Kent 44,965 4,745,112 6,556 Maple Valley 9,919 - - Normandy Park 5,290 6,992 - Renton 44,965 246,643 6,556 Tukwila 9,919 17,233 6,556 Unincorporated KC 44,965 - - King County additional contribution 30,035 - - Contributions/Donations (5,000) - - INTEREST EARNINGS 132,093 - - Total $ 436,177 $ 5,844,630 $ 32,779 EXPENDITURES OPERATING ACTUAL HOUSING CAPITAL FUND ACTUAL SKHHP Cost Reimbursement 337,937 - Administration Fee 33,400 - Total 371,337 - Beginning Fund Balance – January 1, 2023 296,916 1,448,075 Estimated net change in fund balance – December 31, 2023 97,618 5,844,630 Estimated Ending Fund Balance – December 31, 2023 394,534 7,292,705 SKHHP Cost Reimbursement Detail EXPENDITURES Wages 204,036 Benefits 56,156 Supplies 502 Professional Services 46,547 Interfund Allocations 30,696 Administrative fee 33,400 Total 371,337