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HomeMy WebLinkAboutReg 2021-05-03 Item 7B - Interlocal Agreement - South King Housing and Homelessness Partners (SKHHP) for Cities to Administer FundsCOUNCIL AGENDA SYNOPSIS CI- �, 4 Initials ITEM No. O lot., Meeting Date Prepared by Mayor's review Council review to 0 5/3/21 LH aNI 7.B. \\......., 1908 ITEM INFORMATION STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 5/3/21 AGENDA ITEM TITLE Interlocal Agreement for Pooling Sales Tax Receipts with South King Housing & Homelessness Partners (SKHHP) CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Altg Date ❑ Public Hearing Mtg Date 11 Mtg Other Date 5/3/21 SPONSOR 11 Council ❑ Mayor ❑ Admin Svcs 11 DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ HF' SPONSOR'S The Interlocal Agreement allows SKHHP to collect the pooled HB 1406 funds from its SUMMARY member cities. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 4/19/21 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Unanimous Approval; Forward to Regular Consent. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 5/3/21 MTG. DATE ATTACHMENTS 5/3/21 Information Memo dated 4/9/21 Interlocal Agreement Minutes of 4/19/21 Planning & Community Development Committee 107 108 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development & Neighborhoods Committee FROM: Laurel Humphrey, Legislative Analyst DATE: April 9, 2021 SUBJECT: Interlocal Agreement with South King Housing & Homeless Partners ISSUE The Interlocal Agreement allows SKHHP to collect HB 1406 funds from partner cities. DISCUSSION The attached ILA was reviewed by the City Attorney, approved by the SKHHP Board, and is now moving through the legislative process at the individual SKHHP partner cities. The ILA allows SKHHP to collect the pooled HB1406 funds, which was not addressed in the formation ILA. It is important to note that this is separate from the individual decision by each city on how much to pool. In April 2020, the City Council adopted Resolution 1984 designating that 90% of the funds be retained for City of Tukwila rental assistance and 10% be transferred to SKHHP. This was in response to pandemic related emergent needs and the Council stated an interest in revisiting this ratio as conditions improve. Councilmember McLeod mentioned the ILA at the January 22, 2021 Committee of the Whole to notify the City Council it would be forthcoming for approval. RECOMMENDATION Staff is seeking a Committee recommendation on the Interlocal Agreement to forward to the Regular Consent Agenda on May 3, 2021. ATTACHMENTS Interlocal Agreement 109 110 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 6 111 WHEREAS, within six months of the effective date of RCW 82.14.540, each of the Parties adopted a resolution of intent to authorize the maximum capacity of the tax, and within 12 months, each of the Parties adopted legislation authorizing the maximum capacity of the tax; and WHEREAS, on November 22, 2019, the SKHHP Executive Board took unanimous action to adopt SKHHP Resolution 2019-06 urging each of the nine member jurisdictions to pool 100 percent of the tax receipts collected under the provisions of RCW 82.14.540 which expressly anticipates pooling of tax receipts received under RCW 82.14.540 if done pursuant to this Agreement; and WHEREAS, the Parties wish to act cooperatively to pool tax receipts received in individual cities to allow the use of funds to leverage other funds and make a more meaningful and significant impact on affordable housing challenges in south King County consistent with this Agreement and RCW 82.14.540; and WHEREAS, pooling RCW 82.14.540 sales tax receipts with SKHHP will establish a regional funding source that will help to establish regional -decision making and shared housing solutions and increased investment in affordable and supportive housing in south King County. NOW, THEREFORE, in consideration of the mutual promises, benefits, and covenants contained in this Agreement, the Parties incorporate by reference and agree to the above recitals and the following terms and conditions: 1. Purpose. The purpose of this Agreement is to allow each of the Parties to pool all or a portion of its tax receipts received under RCW 82.14.540 for use by SKHHP in funding affordable and supportive housing projects and/or programs as permissible under RCW 82.14.540. 2. Responsibilities and Authority. For the purposes of RCW 39.34.030(4)(a), the SKHHP Administering Agency is designated as the administrator responsible for overseeing and administering the joint or cooperative undertaking contemplated by this Agreement. No property shall be acquired by the Parties to this Agreement by reason of this joint or cooperative undertaking. 3. Pooled Funds. The legislative body of each Party shall consider whether it will pool with SKHHP all or a portion of its RCW 82.14.540 tax receipts. Each Party that determines that it will pool all or a portion of its RCW 82.14.540 tax receipts shall transfer the funds to be pooled into the SKHHP Housing Capital Fund. 4. Uses of Pooled Funds. Consistent with the permissible uses of funds set forth in RCW 82.14.540, SKHHP will distribute funds pooled under this Agreement only for the following purposes that serve persons whose income is at or below 60 percent of the median income: SKHHP SHB 1406 Interlocal Agreement — February 4, 2021 Page 2 of 6 112 a. 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; and/or b. Funding the operations and maintenance costs of new units of affordable or supportive housing. 5. Selection of Funding Awards involving Pooled Funds. SKHHP intends to periodically invite applications for funding for projects and/or programs eligible for funding under the SKHHP Interlocal Agreement. For each round of funding applications for which SKHHP intends to use funds pooled under this Agreement, the following shall apply: a. The SKHHP Executive Board will identify funding guidelines that will include, but not be limited to: the amount of available funding, household income targets, funding priorities, eligible activities and geographic areas, regulatory terms, other award terms/reporting requirements, application contents, review process, evaluation criteria, and the schedule for funding allocation. b. The SKHHP Advisory Board, to be established by the SKHHP Executive Board as outlined in the SKHHP Interlocal Agreement, will provide recommendations to the SKHHP Executive Board on the strategic funding priorities and the allocation of tax receipts collected through this Agreement. These recommendations will consider south King County housing needs, other funding sources that support affordable housing and supportive housing, local housing needs, and equitable geographic distribution of funds. c. The SKHHP Executive Board shall consider the recommendations of the SKHHP Advisory Board to decide both the recommended funding awards for selected projects and/or programs and the specific funding from each participating Party consistent with the SKHHP Executive Board Powers. d. Funding will be limited to projects or programs that are within the SKHHP sphere of influence as identified in the SKHHP Interlocal Agreement and meet the eligibility criteria of RCW 82.14.540. 6. Expenditure of Pooled Funds; Legislative Authority of Each Party. a. As provided in the SKHHP Interlocal Agreement, the SKHHP Executive Board will recommend to the individual legislative bodies various terms to accompany their authorizations. Terms shall be consistent with RCW 82.14.540 and may include but will not be limited to: the amount of funds allocated, project description, minimum affordability requirements, nature of funding commitment (loan, grant, or other), and general repayment terms for loans, if applicable. SKHHP SHB 1406 Interlocal Agreement — February 4, 2021 Page 3 of 6 113 b. Before any Party's pooled funds are awarded or distributed for funding of a project or program selected pursuant to Section 4 "Selection of Funding Awards involving Pooled Funds" of this Agreement, the legislative body of such Party shall authorize the application of a specified amount of its 82.14.540 tax receipts in its Individual Account, as provided in Section 14 of the SKHHP Interlocal Agreement. c. SKHHP may only award and distribute a Party's pooled funds after a Party's legislative body has approved participation in this Agreement. 7. Administration. Funds collected through this Agreement shall be administered through the SKHHP Housing Capital Fund as outlined in the SKHHP Interlocal Agreement and administered by the SKHHP Administering Agency. The SKHHP Administering Agency will maintain records sufficient to separately track the deposits and withdrawals within each Individual Account and each project account. 8. Reporting. In addition to reporting requirements under the SKHHP Interlocal Agreement, SKHHP will submit an annual report to the Parties of work plan progress that includes, but is not limited to, housing priorities, strategies, capital funding investments, use of pooled RCW 82.14.540 tax receipts, and other SKHHP accomplishments. 9. Audit. The Parties acknowledge that the expenditure of all funds will be subject to audit by the state auditor or other authorized entity. The SKHHP Administering Agency reserves the right to review, monitor, or audit the use of these funds as deemed necessary. Such activities may occur with or without notice. 10. Termination or Withdrawal. This Agreement may be terminated at any time by an affirmative vote of a majority of the legislative bodies of the Parties to this Agreement. If a Party wishes to withdraw from participation in this Agreement, it may do so with written notice to the SKHHP Executive Board of its intention to withdraw, due on or before July 1 of a year and become effective as of 11:59 p.m. on December 31 of that year. Upon termination of this Agreement or Party withdrawal from this Agreement, all uncommitted pooled RCW 82.14.540 tax receipt moneys in the SKHHP Housing Capital Fund will be distributed to the Parties in case of termination of the Agreement, or individually to any Party withdrawing from the Agreement, by remitting the total uncommitted amounts remaining in the Party's Individual Account to that Party, unless otherwise authorized by the legislative authority of that Party. 11. Additional municipalities. This Agreement may be expanded to include additional SKHHP municipalities through the execution of a companion agreement that is consistent with this Agreement and the SKHHP Interlocal Agreement, and upon an affirmative vote of a two- thirds majority of the membership of the SKHHP Executive Board. 12. Amendments. Any amendments to this Agreement must be in writing. This Agreement may be amended upon approval of at least two-thirds of the legislative bodies of all Parties to SKHHP SHB 1406 Interlocal Agreement — February 4, 2021 Page 4 of 6 114 this Agreement, evidenced by authorized signatures of those Parties as of the effective date of this Agreement, however, any amendment to this Agreement affecting the terms and conditions of membership, provisions regarding duration, termination or withdrawal, or the conditions of this Section will require consent of the legislative authorities of all Parties. This Section shall not be construed to require amendment of this Agreement for the addition of a new Party contemplated under Section 11. 13. Effective date. This Agreement will become effective March 1, 2021, subject to its approval by the legislative bodies of all participating jurisdictions, and pursuant to RCW 39.34.040. Although this Agreement may be approved and signed by a Party after the Agreement's effective date, all acts consistent with the authority of this Agreement that occur on or after March 1, 2021, are hereby ratified and affirmed, and the other terms of this Agreement will be deemed to have applied. 14. Agreement Duration. This agreement will be in full force and effect until it is terminated in accordance with the terms and conditions of this agreement. (Signature Page Follows) SKHHP SHB 1406 Interlocal Agreement — February 4, 2021 Page 5 of 6 115 [fill in jurisdiction] [fill in City Attorney information] Approved and executed this day of , 2021. Name of Party: [fill in appropriate signatory] Approved as to form: SKHHP SHB 1406 Interlocal Agreement — February 4, 2021 Page 6 of 6 116 City of Tukwila City Council Planning & Community Development Committee Meeting Minutes April 19, 2021 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Kathy Hougardy, Chair; Verna Seal, Thomas McLeod Rachel Bianchi, Derek Speck, Niesha Fort -Brooks, Brandon Miles, Laurel Humphrey Chair Hougardy called the meeting to order at 5:30 p.m. Staff Present: I. BUSINESS AGENDA A. Interlocal Agreement: South King Housing & Homelessness Partners Staff is seeking Council approval of an interlocal agreement with South King Housing & *Homelessness partners to allow parties to pool all or a portion of its tax receipts received under RCW 82.14.540. Committee Recommendation Unanimous approval. Forward to May 3, 2021 Regular Consent Agenda. B. Lodging Tax Application: 2021 Seawolves Partnership Staff is seeking Council approval of $20,000 for the City of Tukwila to support the 2021 Seattle Seawolves partnership Committee Recommendation Unanimous approval. Forward to May 3, 2021 Regular Consent Agenda. C. City of Tukwila Juneteenth Event Staff presented an update on efforts toward a 2021 Juneteenth virtual event, which received $5,000 funding from lodging tax. Item(s) for follow-up Provide briefing to the full City Council when the plan is finalized. Committee Recommendation Discussion only. ��. MISCELLANEOUS Councilmember Hougardy reported that she met with City and County staff on the Health through Housing program. As previously discussed, staff is working with the County to get responses to the community's questions and will return to Committee with more information. The meeting adjourned at 6:04 p.m. ) Committee Chair Approval Minutes by LH 117