Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
City of Tukwila <br />Allan Ekberg, Mayor <br />TO: Planning & Economic Development <br />FROM: Minnie Dhaliwal, Deputy Director of Department of Community <br />Development <br />BY: Meredith Sampson, Associate Planner <br />CC: Mayor Ekberg <br />DATE: March 2, 2020 <br />SUBJECT: HB 1406 Investments in Affordable Housing, Revenue Options <br />ISSUE <br />How does Tukwila want to allocate revenue received from HB 1406? <br />BACKGROUND <br />During the 2019 legislative session, the state approved HB 1406 which is a local revenue <br />sharing program for local governments. This allows local governments to collect a portion of <br />state sales tax for addressing affordable housing. The tax credit is in place for up to 20 years. <br />All projects funded by HB 1406 must serve those at or below 60% of the area median income <br />(AMI). Homelessness and affordable housing are key issues both in the region as a whole and <br />in the City of Tukwila itself. The revenue available to cities through this bill is a way to begin to <br />address this issue through acquiring, rehabilitating, or constructing affordable housing; <br />operations and maintenance of new affordable housing or supportive housing facilities; or for <br />rental assistance. House Bill 1406 can be found as Attachment A. <br />In September 2019 Tukwila passed Resolution No. 1966 and Ordinance No. 2316 with an <br />effective date of November 1, 2019 to impose the Affordable Supportive Housing State Shared <br />Tax authorized by HB 1406. The maximum award amount that Tukwila may receive each year <br />is $165,998.21. <br />The revenue from HB 1406 can be used for: <br />1. Acquiring, rehabilitating, or constructing affordable housing; and/or <br />2. Operations and maintenance of new affordable housing or supportive housing facilities; <br />and/or <br />3. Providing rental assistance to tenants (only an option for cities with a population less <br />than 100,000 people). Tukwila's current population is 20,294. <br />DISCUSSION <br />Tukwila must make a decision regarding how to spend the revenue received from HB 1406 for <br />the next 20 years. There are three options for spending the revenue: <br />1. Pool revenue with participating South King Housing and Homelessness Partners <br />(SKHHP) cities. <br />Tukwila currently participates in South King Housing and Homelessness Partners <br />(SKHHP), which is a coalition formed by an interlocal agreement between Auburn, <br />Burien, Covington, Des Moines, Federal Way, Kent, Normandy Park, Renton, King <br />County, and Tukwila. The purpose of SKHHP is to increase the available options for 39 <br />