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INFORMATIONAL MEMO <br />Page 2 <br />South King County residents to access affordable housing and to preserve the existing <br />affordable housing stock. <br />Tukwila Signed SKHHP Resolution No. 2019-06 (Attachment B) which supports the idea <br />of all participating SKHHP cities pooling the revenue received from HB 1406. Auburn, <br />Burien, and Des Moines have both passed resolutions to pool all funding received from <br />HB 1406 with SKHHP, assuming all other cities will also pool their resources. If other <br />cities decide not to pool their revenue, they will not pool either. <br />If all cities pool their revenue from HB 1406, the maximum revenue would be <br />approximately one million dollars per year. The maximum yearly revenue per City is <br />capped at .0073% of the sales tax revenue from 2019 and could be less based on actual <br />sales tax collected each year. This tax credit is in place for 20 years, totaling <br />approximately 20 million dollars overall if sales tax revenue stays consistent in the <br />region. This money would be used toward affordable housing projects within the <br />participating cities. <br />City <br />Estimated Annual Revenue <br />Auburn <br />$154,992 <br />Burien <br />$65,477 <br />Covington <br />$43,678 <br />Des Moines <br />$29,793 <br />Federal Way <br />$124,142 <br />Kent <br />$185,467 <br />Normandy Park <br />$4,866 <br />Renton <br />$236,380 <br />Tukwila <br />$165,998 <br />Total <br />$1,010,793 <br />cable 1. Estimates based on 2018 data <br />Of the participating SKHHP members, so far Auburn, Burien, and Des Moines have <br />passed resolutions to pool 100% of their revenue from HB 1406. Kent has deferred this <br />decision to the Mayor. The language used in the SKHHP Resolution No. 2019-06 <br />specifies urging member cities to pool their funds. At this time King County is undecided <br />as to how and where their revenue from this bill will be spent. <br />The SKHHP Executive Board will be the body that will decide on how the pooled <br />revenue from HB 1406 will be spent. Counties and cities that enact the provisions of HB <br />1406 may issue general obligation or revenue bonds, and may use money collected <br />under HB 1406 for the repayment of bonds. <br />2. Maintain all revenue to be used in Tukwila. <br />Tukwila could choose to keep all revenue collected from HB 1406 to be used toward: <br />acquiring, rehabilitating, or constructing housing; operations and maintenance of new <br />affordable housing; and/or providing rental assistance to low-income tenants, all within <br />the City of Tukwila. <br />Some examples of revenue spending within the City are: <br />