21-076 - South King Housing and Homelessness Partners (SKHHP) - Interlocal Agreement

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21-076 Council Approval 5/3/21 Interlocal Agreement For the Purpose of Pooling Sales Tax Receipts with South King Housing and Homelessness Partners ("SKHHP") Cities to Administer Funds Under RCW 82.14.540 This Interlocal Agreement ("Agreement") is entered into by and between the Cities of Auburn, Burien, Des Moines, Federal Way, Kent, Normandy Park, and Tukwila each municipal corporations and political subdivisions of the State of Washington (individually, a "Party" and collectively, "the Parties"). WHEREAS, this Agreement is made pursuant to the Interlocal Cooperation Act, chapter 39.34 RCW, and has been authorized by the legislative body of each jurisdiction to address the use of pooled tax receipts for affordable and supportive housing sales and use tax in accordance with RCW 82.14.540(10). WHEREAS, SKHHP was formed on January 1, 2019 by Interlocal Agreement among the jurisdictions of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Normandy Park, Renton, Tukwila, and King County (the "SKHHP Interlocal Agreement"); and WHEREAS, after SKHHP was formed, the Washington State Legislature passed Substitute House Bill (SHB) 1406, which was signed into law by the Governor, and is now codified at RCW 82.14.540; and WHEREAS, RCW 82.14.540 authorizes the legislative authority of a county or city to impose a local sales and use tax for affordable and supportive housing to income -eligible persons; and WHEREAS, RCW 82.14.540 stipulates the moneys collected or bonds issued through this sales tax credit may only be provided to persons whose income is at or below 60 percent of the median income of the county or city imposing the tax and may only be used for the following purposes: (i) acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385; or (ii) funding the operations and maintenance costs of new units of affordable or supportive housing; and WHEREAS, funding to support the acquisition, rehabilitation, and new construction of affordable housing, and operation and maintenance costs of new affordable housing is critical to providing an array of housing opportunities for residents; and WHEREAS, RCW 82.14.540 allows cities with a population of one hundred thousand or less to use moneys collected for providing rental assistance to tenants in addition to the affordable housing purposes listed above. As of the date of this Agreement, although at least some of the Parties have a population of one hundred thousand or less, all such Parties intend that the funds they contribute pursuant to this Agreement shall not be used for providing rental assistance; and SKHHP SHB 1406 Interlocal Agreement — February 4, 2021 Page 1 of 6