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INFORMATIONAL MEMO <br />Page 4 <br />and mechanical system The lower end was for minimal exterior envelope upgrades <br />such as new siding trim and roof repairs to a two story apartment complex with 32 units <br />in 2019 The majority of KCHA housing was built in the 1960s and 1970s. As these <br />properties age they become more expensive to operate and maintain. With each <br />Passing year, features such as utility systems building envelopes, and elevators come <br />closer to the end of their useful life span. To finance improvements, KCHA has used low- <br />income housing tax credits tax-exempt bonds and federal money to extend the life of its <br />public housing If City Council elects to use some of the HB 1406 money for renovating <br />existing housing it is likely that the split amount would not be sufficient to make a <br />significant impact and the cost to upgrade apartments would outstrip the annual revenue <br />available. <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 />Department of Revenue as a percentage of Tukwila's sales tax that, prior to this bill, went to the <br />State. <br />Tukwila's maximum yearly revenue from HB 1406 is $165,998.21. Tukwila will keep .0073% of <br />the sales tax up to the maximum amount. Once the maximum award is reached, distribution of <br />the tax will stop for the remainder of the fiscal year. <br />RECOMMENDATION <br />Administration and staff recommend keeping 30% of the yearly revenue from HB 1406 to be <br />used toward rental assistance while pooling the rest of the funds with participating SKHHP <br />cities. If there are funds that have not been expended for rental assistance by the end of each <br />year, staff recommends pooling this revenue with SKHHP. This will allow the City to assist with <br />affordable housing projects in the region as well as assist Tukwila residents in need. <br />ATTACHMENTS <br />A. House Bill 1406 <br />B. SKHHP Resolution No. 2019-06 <br />C. Notice from Department of Revenue <br />D. Resolution <br />130 <br />