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Home My WebLink AboutFIN 2026-03-09 Item 1B - Agreement - Tiny House Village Asset Transfer Agreement with Low Income Housing Institute (LIHI)City of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 1.B. Agenda Item Sponsor Legislative History Asset Transfer Agreement with Low Income Housing Institute (LIHI) Brandon Miles, Director March 9, 2026 March 23, 2026 Finance & Governance Committee Special Meeting Consent Recommended Motion ❑ Discussion Only ❑x Action Requested MOVE TO Authorize the Mayor to execute a transfer agreement with Low Income Housing Institute (LIHI) to transfer tiny homes, small offices, and a hygiene trailer for the tiny house village at Church by the Side of the Road. EXECUTIVE SUMMARY Authorize the Mayor to execute a transfer agreement with Low Income Housing Institute (LIHI) to transfer tiny homes, small offices, and a hygiene trailer for the tiny house village at Church by the Side of the Road. Staff is requesting that this item be moved from the Committee to the March 23 Special Meeting Consent Agenda. DISCUSSION The City of Tukwila, Church by the Side of the Road (CBSR), and LIHI have partnered to stand up a tiny home village at CBSR on Tukwila International Blvd. The City utilized grant funds from the Washington State Department of Commerce and King County to purchase assets and compensate LIHI for the construction costs. In spring of 2025 the City Council authorized staff to prepurchase some of the assets for the tiny home village. This allowed the City to fully utilize a grant with the Washington State Department of Commerce that was set to expire in June of 2025. With this authorization the City purchased 30 tiny homes; three staff offices; and one hygiene trailer (hereinafter "Tiny Home Assets"). The total purchase cost of the assets was $387,353. The City was fully compensated for this purchase by the Department of Commerce. The City took immediate possession of the Tiny Home Assets. LIHI has completed the tiny home village and has taken physical control of the Tiny Home Assets. For documentation purposes, the City needs to transfer the assets to LIHI. Staff is requesting authorization to transfer legal ownership of the Tiny Home Assets to LIHI. LIHI must continue to use the Tiny Home Assets for at least five years and is prohibited from moving the assets outside of the City without the City's consent. 26 FINANCIAL IMPACT • Expenditure - Budgeted ❑ Expenditure - Unbudgeted ❑ Expenditure - Grant -Funded ❑ Revenue — One -Time (e.g. asset sale, surplus equipment) ❑ Revenue - Ongoing Expenditures: Fund Source: $0 Revenues(if applicable): South King County Homelessness Fund $0 Contractor Low Income Housing Institute (LIHI) Scope of Work Transfer of ownership of 30 tiny houses, three staff offices and one hygiene trailer to LIHI Amount N/A Duration N/A ATTACHMENTS • Asset Transfer Agreement https://tukwilawa.sharepoint.com/sites/CC2/CC Docs/2026 COUNCIL MTGS/2026 Agenda Packets/2026-03-09 FIN Packet/Committee Items/LIH, Asset Transfer/0.0 Agenda Bill.docx 27 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 TRANSFER AGREEMENT Agreement Number: Between the City of Tukwila and Low Income Housing Institute (LIHI) This Agreement is entered into by and between the City of Tukwila, Washington, a non - charter optional municipal code city ("City") and Low Income Housing Institute, a 501(c)3 organization ("LIHI"), whose principal office is located at 1253 S. Jackson St., Suite A, Seattle, WA 98144. WHEREAS, on November 2, 2015, King County Executive Dow Constantine issued a Local Proclamation of Emergency declaring an emergency regarding the growing homelessness numbers and overall need for housing within King County; and WHEREAS, in 2024, the City experienced a significant influx of unhoused asylum seekers, which strained local services, including area shelters for the unhoused; and WHEREAS, King County awarded the City $2 million in funding through the "South ling County Homelessness Fund" to expand shelter for the unhoused in south King.County; and WHEREAS, the Church by the Side of the Road ("CBSR"), located in the City of Tukwila, has expressed a desire to site a tiny home village on its property at 14820 Military Road South; and WHEREAS, on September 22, 2025, the City and LIHI executed an Award of Grant Funds Agreement, Contract No. 25-272 ("Grant Agreement"), under which the City awarded a portion of the grant funds to LIHI for the development of a tiny home village at the CBSR property; and WHEREAS, pursuant to Exhibit C of the Grant Agreement, the City is to provide LIHI with the following grant -funded facilities: thirty (30) tiny houses, three (3) staff offices, and one (1) hygiene trailer, ownership of which remains with the City until formally transferred to LIHI via a separate agreement; and WHEREAS, the City desires to transfer ownership of the tiny houses, staff offices,. and hygiene trailer, subject to the terms and conditions included in this Agreement. NOW, THEREFORE, the City and LIHI agree as follows: 1. Transfer of City Furnished Materials. The City transfers and conveys title and/or ownership of thirty (30) tiny houses, three (3) staff offices, and one (1) hygiene trailer ("City Furnished Materials") to LIHI, as set forth in Exhibit C of the Grant Agreement. The City Furnished Materials are described in Exhibit A to this Agreement. The City agrees to execute any necessary title documents to convey and transfer the City Furnished Materials to LIHI. 2. Consideration — Use of Materials. LIHI agrees to use all City Furnished Materials to establish the tiny home village on the CBSR property located at 14820 Military Road South, Tukwila, Washington 98168, as set forth in the Grant Agreement. The City Furnished Materialsshall be used for this purpose for at least five (5) years, provided that LIHI may move the City Furnished Materials during the five-year period upon. receipt of written permission from the City, which shall not be 28 dqf}4_7FA4.2F95�-6678;1/13175.00ODo1/] Page 1 of 4 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: unreasonably withheld. LIHI shall not remove, nor allow removal of, the City Furnished Materials from the City of Tukwila without the prior written consent of the City. 3. Acceptance of Materials "As Is." LIHI acknowledges and agrees that the City is transferring ownership of the City Furnished Materials on an "as is, where is" basis, without any representations, warranties, or guarantees, either express or implied, by the Cit ?. The City makes no warranty as to the fitness, condition, suitability, or usability of the City Furnished Materials, and LIHI agrees to assume all responsibility for any repairs, improvements, or modifications required following the transfer. The City shall not be liable for any claims, damages, or losses arising from the condition of the City Furnished Materials after the transfer of ownership. 4. Indemnification. LIHI shall indemnify, defend and hold the City, its officers, agents, 4cid employees, harmless from any and all claims, damages, losses, liabilities, costs, and expenses arising from LIHI's use of the City Furnished Materials as provided in this Agreement, and shall wtlter indemnify, defend and hold the City, its officers, agents, and employees harmless from and rcgainst any and all claims, damages, losses, liabilities, costs, and expenses arising from any breach or default in the performance of any obligation on LIHI's part to be performed under the provisions of this Agreement or arising from any act, error, or omission of LIHI or any cif its agents, contractors, employees or invitees in exercising the rights granted by this Agreement, and from any and all costs,, attorneys' fees, expenses and liabilities incurred by the City in the defense of any such claim or any action or proceeding brought thereon. The indemnity obligations of this subsection shall survive expiration or termination of this Agreement. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24. 115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the LIHI and the City, its officers, officials, employees, and volunteers, LIHI's liability hereunder shall be only to the extent of the LIHI's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the LIHI's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 5. No Third -Party Rights. No third -party beneficiaries or rights are intended or created by this Agreement. 6. Governing Law & Venue. This Agreement shall be governed by the laws of the State of Washington. Venue of any action regarding this Agreement shall be in King County Superior Court. 7. Entire Agreement. This Agreement represents the entire and integrated Agreement between the parties and supersedes all prior negotiations, representations, or agreements, either written or oral. Signatures on following page (NM M4904-2695-6678;1/13175.009001/} Aand_9Fac,_RF7$ l� 1 Page2of4 29 Dated this City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 CITY OF TUKWILA Agreement Number: day of , 2026. Thomas McLeod, Mayor LOW INCOME HOUSING ,I STlTUTE: ATTEST/AUTHENTICATED: Title: G %c- V rFic . Andy Youn-Barnett, City Clerk APPROVED AS TO FORM: Office of the City Attorney {NMM4904-2695-6678;1/13175.000001J) 30 4904-2695-6678, v. 1 Page 3 of 4 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 EXHIBIT A City Furnished Materials • (30) tiny houses • (3) staff offices • (1) hygiene trailer (VIN 4M9BBGH21SC102177) Agreement Number: INM M4944-2695-6678;'1/13175.000001/} 4904-2695-6678, v. 1 Page4of4' 31