Loading...
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