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INFORMATIONAL MEMO <br />Page 3 <br />• Rehabilitating Tukwila's existing affordable housing stock, which may include <br />partnering with King County Housing Authority. <br />• Partnering with existing affordable housing developers on projects that are <br />shovel -ready. <br />• Providing rental assistance to Tukwila's low-income tenants. <br />• Exploring the option to bond with the purposes of funding affordable housing <br />construction <br />3. Keep a portion of the revenue for rental assistance in Tukwila and pool the <br />remainder with SKHHP. <br />Tukwila could choose to split the revenue from HB 1406 between rental assistance and <br />pooling funds with SKHHP. Table 2 shows the maximum amount per year that Tukwila <br />would keep for rental assistance and the amount that would be pooled with SKHHP <br />when different percentages of the revenue from SHB 1406 are retained by the City. <br />Max. HB 1406 <br />Percent Used <br />Maximum <br />Maximum <br />Number of <br />Revenue/Year <br />for Tukwila <br />$/Year Used <br />$/Year <br />Tukwila <br />Rental <br />for Tukwila <br />pooled to <br />households <br />Assistance <br />Rental <br />SKHHP <br />to be <br />Assistance <br />served <br />$165,998 <br />10% <br />$16,599.80 <br />$149,398.20 <br />24 <br />$165,998 <br />15% <br />$24,899.70 <br />$141,098.30 <br />36 <br />$165,998 <br />20% <br />$33,199.60 <br />$132,798.40 <br />47 <br />$165,998 <br />25% <br />$41,499.50 <br />$124,498.50 <br />59 <br />$165,998 <br />30% <br />$49,799.40 <br />$116,198.60 <br />71 <br />Table 2. Split Revenue between Rental Assistance and SKHHP <br />Tukwila is in a unique position compared to other participating SKHHP cities. Only cities <br />with a population under 100,000 people qualify to use the revenue from this bill on rental <br />assistance, which Tukwila has. Tukwila also has an existing program in place that <br />provides direct services to residents, which many other SKHHP cities do not. <br />In 2019, Human Services provided rental assistance to 66 households with grants <br />averaging between $500-$700. However, an additional 181 residents were qualified and <br />counted as a 'turn -away'— meaning they qualified for assistance, but the City had no <br />funds available to assist. Between 2018 and 2019, the City experienced a 376% percent <br />increase in rental assistance need over the previous year. For context, in 2018, the City <br />turned away 35 qualified residents; the percent change is indicating the City is <br />experiencing a significant increase in need for rental assistance which it did not <br />meet. Approximately 70% of financial assistance calls to human services are requests <br />for rental assistance. Allocating a portion of the revenue collected through this bill could <br />allow the City to stabilize additional households and enable those households to remain <br />in Tukwila. <br />If there are funds that have not been expended for rental assistance in Tukwila at the <br />end of each year, these funds could then be pooled with SKHHP. <br />FINANCIAL IMPACT <br />Tukwila began collecting revenue from HB 1406 on November 1, 2019 per official notice from <br />the Department of Revenue (Attachment C). Revenue is distributed to the City monthly from the <br />Eff <br />