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HomeMy WebLinkAboutPCD 2025-06-09 Item 1A - Resolution - South King Housing & Homelessness Partners: 2026 Work Plan & Operating BudgetCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning & Community Development Committee FROM: Claire Goodwin , Executive Manager, SKHHP Laurel Humphrey, Legislative Analyst DATE: May 23, 2025 SUBJECT: Resolution adopting the 2026 SKHHP Work Plan and Budget BACKGROUND The South King Housing and Homelessness Partners (SKHHP) was established through an interlocal agreement between nine South King County cities and King County to work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. SKHHP currently has 12 member jurisdictions. Mayor Thomas McLeod and Councilmember Dennis Martinez (alternate) are currently representing Tukwila on the Executive Board. Consistent with the SKHHP Interlocal Agreement, the SKHHP 2026 work plan and budget must be adopted by the SKHHP Executive Board and approved by each member jurisdiction's legislative body. DISCUSSION Every year, an annual work plan and budget is developed in collaboration with the SKHHP Executive Board and staff work group to guide the work of SKHHP staff in the coming year. The 2026 Executive Board recommended work plan was developed through a survey to the Executive Board on their priorities in January and an interactive in -person discussion in March. The 2026 work plan and budget was adopted on May 16, 2025 at the Executive Board's regularly scheduled meeting. The 2026 work plan includes four goals with corresponding action items. Each action item is prioritized as higher, medium, or lower priority. Indicators are included to measure progress on the goals. The four goals, which are the same as 2025's goals, include the following: 1. Fund the expansion and preservation of affordable housing 2. Develop policies that expand and preserve affordable housing 3. Serve as an advocate for South King County 4. Manage operations and administration The 2026 SKHHP operating budget totals $501,975, supporting two full-time staff, and includes itemization of all categories of budgeted expenses and itemization of each jurisdiction's contribution, including in -kind services. Operating revenues originate from SKHHP member contributions. As discussed in 2024 with Council, contributions are proposed to increase 15% annually for each member jurisdiction through 2026 as approved by the Executive Board in July 2021 to work towards a balanced budget whereby SKH HP's revenues can fully support the budgeted expenditures. These projected member contributions assume no additional staff would be added. Member contributions are based on population size accordingly, and no members are moving into a new population tier in 2026: 1 INFORMATIONAL MEMO Page 2 Population tier 2023 Contribution 2024 Contribution 2025 Contribution 2026 Contribution <10,000 $5,290 $6,084 $6,996 $8,045 10,001- 35,000 $9,919 $11,407 $13,118 $15,085 35,001- 65,000 $19,838 $22,814 $26,236 $30,172 65,000 - 100,000 $34,385 $39,543 $45,474 $52,295 100,000+ $44,965 $51,710 $59,466 $68,386 Salaries and benefits are proposed to increase by 0.3% in 2026. This is to align with actual expenditures in this category. Interfund IT, which is the amount paid to SKHHP's administering agency (City of Auburn) for IT services, is proposed to increase by 14%. Professional Services is proposed to increase by 46% ($26,000) due to an every other year data update to the SKHHP Affordable Housing Inventory Dashboard ($18,000) and anticipated higher rates for contracted services. Professional Services include Advisory Board compensation (unchanged in 2026), contract attorney expenses ($30,000 in 2026 which is $5,000 more than 2025), data update to the SKHHP Affordable Housing Inventory Dashboard ($18,000), third -party construction reports ($6,000), travel ($6,000), professional development ($6,800), Housing Development Consortium member dues ($725), and an annual license fee ($20). The proposal includes aligning budgeted categories with SKHHP's administering agency. SKHHP continues to spend down the fund balance from previous cost -savings to mitigate any additional increases to member contributions. The 2026 Executive Board recommended operating budget includes $501,975 to be set -aside in reserve sourced from interest earned primarily on the Housing Capital Fund balance. This amount is the equivalent of 100% of SKHHP's annual budgeted expenses as discussed over three public meetings and adopted by the SKHHP Executive Board on May 16, 2025. Interest earned in 2024 on all SKHHP funds totaled $540,377. Interest earned in 2024 by jurisdiction to be set -aside in reserve with the remaining supporting the 2025 Housing Capital Fund funding round are as follows: TABLE 1: INTEREST EARNED BY JURISDICTION 2024AND BOARD RECOMMENDED ALLOCATIONS JURISDICTION AUBURN BURIEN COVINGTON DES MOINES FEDERAL WAY KENT 2 Reserve Housing Capital TOTAL 2024 Interest Fund EARNINGS $26,486 $2,026 $28,512 $12,530 $959 $13,489 $29,074 $2,224 $31,298 $5,358 $409 $5,767 $22,682 $1,735 $24,417 $327,110 $25,024 $352,134 INFORMATIONAL MEMO Page 3 MAPLE VALLEY NORMANDY PARK RENTON SEATAC TUKWILA KING COUNTY TOTAL $22,306 $1,707 $24,013 $682 $52 $734 $36,229 $2,772 $39,001 $13,384 $1,024 $14,408 $6,134 $470 $6,604 $501,975 $38,402 $540,377 To spend interest earnings requires the approval of each SKHHP member with allocated earned interest based on their contributions. With the adoption of the 2026 SKHHP operating budget which incorporates a portion of the interest earnings into an unrestricted fund balance in reserve, the City Council is providing authorization for SKHHP to use those funds towards the unrestricted fund balance in reserve. These funds will assist in future years should there be an economic recession and members choose to pause an increase in dues or other unexpected expense arises. The remaining amount will go towards the 2025 funding round of the Housing Capital Fund and Council will provide approval to use those funds during the annual concurrence process in early 2026. RECOMMENDATION Staff recommends Committee approval of the resolution to forward to the June 16, 2025 Regular Consent Agenda. 1. The 2026 SKHHP work plan and budget is consistent with the Interlocal Agreement and relevant subsequent Companion Agreements between Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, SeaTac, Tukwila, and King County. 2. The 2026 SKHHP work plan and budget incorporates the feedback and priorities of the SKHHP Executive Board made up of representatives of each participating jurisdiction. ATTACHMENTS 1.Presentation 2.Draft Resolution 3 South King Housing and Homelessness Partners (SKHHP) 2026 Work Plan and Budget Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org SK'I' itt About SKHHP ■ 2019: SKHHP was formed via an Interlocal Agreement • Twelve member jurisdictions include: • Auburn . Federal Way . Renton • Burien D Kent , SeaTac • Covington . Maple Valley . Tukwila Des Moines , Normandy Park , King County • Mission: • South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. • Interlocal agreement requires City Council adoption of annual work plan and budget SK:I: 01 At2026 Work Plan Development Process Executive Board Survey t Draft review by Staff Work Group Executive Board reviews draft and provides feedback Final draft reviewed by Staff Work Group o Final draft reviewed and adopted at May 16 Executive Board meeting r Council adoption You are here! SK:I: 2026 Work Plan Goals Dnp 1. Fund the expansion and preservation of affordable housing. 2. Develop policies to expand and preserve affordable housing. 3. Serve as an advocate for South King County. 4. Manage operations and administration. SK:I: CO itt 2026 Operating Budget ■ Total operating budget: $501,975 ■ 64% funds salary and benefits (2 FTEs) ■ Revenue: ■ Operating revenues come from member jurisdiction annual contributions and based on population tiers ■ Executive Board adopted policy in July 2021 ■ 15% increase in member contributions each year through 2026 ■ Expenses: ■ Professional Services increasing due to data update to Affordable Housing Inventory Dashboard and anticipated higher rates for contracted services (legal assistance for developing housing contracts and third -party constriction review of applications) ■ Professional Services incorporates Advisory Board compensation, contract attorney expenses, data update to dashboard, third -party construction reports, professional development, travel, non-profit dues, and annual license ■ Continuing to spend down cost savings from previous years to balance additional contribution increases ■ Interest earnings incorporated into unrestricted fund balance in reserve SK:I: itt Operating Contributions by Population Member Jurisdiction Population Tier 2023 Contribution 2024 Contribution 2025 Contribution 2026 Contribution <10,000 $5,290 $6,084 $6,996 $8,045 10,001 - 35,000 $9,919 $11,407 $13,118 $15,086 35,001 - 65,000 $19,838 $22,814 $26,236 $30,171 65,000 - 100,000 $34,385 $39,543 $45,474 $52,295 100,000+ $44,965 $51,710 $59,466 $68,386 SK:I: CO Att Population by City and Year SKHHP Member Jurisdictions Auburn Burien Covington Des Moines Federal Way Kent Maple Valley Normandy Park Renton SeaTac Tukwila King County (unincorporated) Population (OFM 2021 estimate) Total: 83,950 KC: 73,901 53,290 20,890 32,820 99,590 132,400 6,740 106,500 32,000 21,970 Population (OFM 2022 estimate) Total: 88,750 KC: 78,690 52,490 21,200 33,160 101,800 137,900 28,920 6,790 107,500 31,910 22,620 248,160 Population (OFM 2023 estimate) Total: 88,820 KC: 78,760 52,560 21,600 33,260 102,000 139,100 29,250 6,840 107,900 31,740 22,780 249,060 Population (OFM 2024 estimate) Total: 88,950 KC: 78,890 53,000 22,000 33,400 102,500 140,400 29,320 6,855 108,800 32,710 22,930 249,575 Population (OFM 2025 estimate) Data not published until June 30, 2025 SK:I: South King Housing and Homelessness Partners Thank you! Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org SK:I: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, • OPTING THE SOUTH KING HOUS AND HOMELESSNESS PARTNERS WORK PLAN AND 2026 OPERATING ► G WHEREAS, on February 21, 2019, the of T wila eni red into an Interlocal Agreement (ILA) with 8 other south King County ie- d King County to form the South King Housing and Homelessness Partners (SKH ` and WHEREAS, pursuant to the Interloca gr-. -:ch participating jurisdiction must approve an annual work plan each vear to - th- - ork of SKHHP staff; and WHEREAS, pursuant to approve SKHHP's annual budgeted expenses a services; and \ement, each participating jurisdiction must -;udes an itemization of all categories of ion of each Party's contribution, including in -kind WHEREAS, th- 'urpose f the annual work plan and budget is to provide management and bud• •ui• ce, and to implement the overarching SKHHP goals to work together and share .ources to increase the available options for south King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2026 work plan includes four goals with corresponding action items that further SKHHP's mission; and WHEREAS, on May 16, 2025, the SKHHP Executive Board adopted Resolution No. 2025-01, enacting the 2026 Work Plan and Operating Budget effective upon approval by the legislative body of each party; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: SKHHP Work Plan & Operating Budget Version: 05/23/2025 Staff: Laurel Humphrey Page 1 of 2 12 Section 1. The City Council adopts the 2026 South King Housing and Homelessness Partners Work Plan and 2026 Operating Budget hereby incorporated by reference as "Attachment A." Section 2. The City of Tukwila will transmit its annual contribution to SKHHP on an annual basis during the first quarter of the calendar year. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2025. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney harp, cil President File• 'th the City Clerk: y the City Council: tion Number: Attachment A: Sout • si . nd Homelessness Partners Resolution No. 2025- 01 :opting 20 • SKHHP Work Plan and Operating Budget SKHHP Work Plan & Operating Budget Version: 05/23/2025 Staff: Laurel Humphrey Page 2 of 2 13 RESOLUTION NO. 2025-01 A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2026 SKHHP WORK PLAN AND OPERATING BUDGET WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves an annual work plan and budget each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an itemization of all categories of budgeted expenses and itemization of each Party's contribution, including in -kind services; and WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will be transmitted to each participating jurisdiction for approval by their legislative body; and WHEREAS, the budget will not become effective until approved by the legislative body of each jurisdiction and adopted by the SKHHP Executive Board; and WHEREAS, if a party does not approve the work plan or budget in a timely manner, the Executive Board may adopt the budget and work plan with a two-thirds majority vote; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and implement the overarching SKHHP mission to work together and share resources to increase the available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2026 work plan includes four goals with corresponding action items that further SKHHP's mission. NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows: Section 1. The Executive Board adopts the 2026 SKHHP Work Plan in Attachment A. Section 2. The Executive Board adopts the 2026 SKHHP Operating Budget in Attachment B. Section 3. Each party's contribution to SKHHP's operating budget will be transmitted on an annual basis during the first quarter of the calendar year. Section 4. This Resolution will take effect and be in full force upon approval by the legislative body of each participating jurisdiction. Dated and signed this 11+11 day of M a , 2025. NANCY BAK7toot CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS Resolution No. 2025-01 May 16, 2025 Page 1 of 7 14 RESOLUTION 2025-01 — ATTACHMENT A SKHHP 2026 WORK PLAN PURPOSE Establish a 2026 SKHHP work plan and budget that is guided by Executive Board priorities, is consistent with the SKHHP Interlocal Agreement, and furthers SKHHP's mission. BACKGROUND Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. The 2026 SKHHP work plan builds on work done in previous years and was developed in collaboration with the Executive Board and staff work group. The work plan is organized into four goals with corresponding action items. Each action is identified by priority as follows: • Higher — Identified as higher priority by Executive Board or is necessary to carry out the Interlocal Agreements • Medium — Identified as mid -level priority • Lower — Identified as lower priority Quarterly budget and progress reports on the status of the work plan elements will be submitted to the SKHHP Executive Board and the legislative body of each member jurisdiction as follows: Quarter 1: May I Quarter 2: August I Quarter 3: November I Quarter 4: February In accordance with the Interlocal Agreement, the 2026 SKHHP work plan and budget will be approved by the SKHHP Executive Board and the legislative body of each member jurisdiction. SKHHP MISSION South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. GOALS & ACTIONS Goal Actions 1. Fund the expansion and preservation of affordable housing. 1 through 5 2. Develop policies to expand and preserve affordable housing. 6 through 10 3. Serve as an advocate for South King County. 11 through 16 4. Manage operations and administration. 17 through 22 Resolution No. 2025-01 May 16, 2025 Page 2 of 7 15 Goal 1 Fund the expansion and preservation of affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 1. Pool resources from member cities for the Housing Capital Fund, including SHB 1406 funds, HB 1590 funds, and general funds. ••• 2. Develop and execute contract documents and covenants for projects ready to move forward from 2023-24 Housing Capital Fund funding rounds. ••• 3. Facilitate approval from participating Councils of recommended projects from 2025 Housing Capital Fund funding round and prepare contract documents and covenants for any projects ready to move forward. ••• 4. Manage 2026 Housing Capital Fund funding round including adopting annual guidelines, updating application materials, soliciting proposals, and facilitating project selection. ••• 5. Encourage investment in South King County by private investors, lenders, and philanthropies. •• Indicators o Number of housing units and number of projects funded with financial support from SKHHP o Number of housing units preserved with financial support from SKHHP o Total dollar amount pooled by member jurisdictions for Housing Capital Fund o Total dollar amount from new sources of revenue added to the Housing Capital Fund o Geographic diversity of applications received for annual Housing Capital Fund funding round Resolution No. 2025-01 May 16, 2025 Page 3 of 7 16 ona 1 Goal 2 Develop policies to expand and preserve affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 6. Facilitate implementation of subregional affordable housing preservation strategies in coordination with South King County long- range planners. •• 7. Facilitate updates to the Affordable Housing Inventory Dashboard. •• 8. Convene land use planners (SoKiHo) to increase coordination and collaboration on housing policy and planning. • 9. Build relationships with developers to learn from their perspective the ways to encourage housing development, especially affordable housing. • 10. Develop SKHHP Executive Board briefings on key housing and homelessness topics, especially as they relate to the goals of the work plan. • Indicators o Number of subregional housing preservation strategies facilitated or supported o Successful progress on update to the Affordable Housing Inventory Dashboard o Number of relationships fostered with developers o Number of Executive Board briefings on key housing and homelessness topics Resolution No. 2025-01 May 16, 2025 Page 4 of 7 17 Goal 3 Serve as an advocate for South King County. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 11. Work collaboratively with public funders at the state and local levels to increase alignment and promote shared affordable housing goals and equitable geographic distribution of resources. • • 12. Coordinate with the Advisory Board in collaboration with housing organizations and stakeholder groups to provide education and engagement opportunities for elected officials and community members. • 13. Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP's mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County. • 14. Connect affordable housing developers with property owners who intend to sell naturally occurring affordable housing in coordination with member cities. • 15. Meet with legislators as opportunities arise to inform about SKHHP's mission, goals, and the Housing Capital Fund and host a legislative forum (odd numbered years). • 16. Organize a tour of affordable housing sites in South King County with priority given to visiting Housing Capital Fund supported projects (even numbered years). • Indicators o Number of collaborative work sessions held with public funders o Number of events or engagement opportunities Advisory Board members organize or support o Number of meetings, forums, or events attended that advance SKHHP's mission o Number of meetings with legislators that promote SKHHP and South King County o Number of affordable housing developers connected with property owners intending to sell naturally occurring affordable housing o South King County legislative forum or affordable housing tour successfully executed Resolution No. 2025-01 May 16, 2025 Page 5of7 18 Goal 4 Manage operations and administration. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 17. Develop annual work plan and budget. ••• 18. Generate and distribute quarterly progress reports to SKHHP Executive Board and member jurisdictions. ••• 19. Work with administering agency to maintain records and produce regular financial reports for the SKHHP Housing Capital Fund and SKHHP Operating Account. ••• 20. Organize and host monthly Executive and Advisory Board public meetings. ••• 21. Establish and implement monitoring and compliance process to ensure Housing Capital Fund projects maintain affordability for tenants. ••• 22. Maintain and update the SKHHP website. •• Indicators o Work plan and budget adopted o Quarterly progress reports prepared and presented to Executive Board o Financial reports and public records maintained o Monthly Executive and Advisory Board meetings held o Process established for monitoring and compliance of Housing Capital Fund projects o Website maintained Resolution No. 2025-01 May 16, 2025 Page 6 of 7 19 RESOLUTION 2025-01 — ATTACHMENT B 2026 SKHHP Operating Budget Estimated beginning fund balance - January 1, 2026 Estimated ending fund balance - December 31, 2026 REVENUES Auburn Burien Covington Des Moines Federal Way Kent Maple Valley Normandy Park Renton SeaTac Tukwila King County* Additional King County* Office space (in -kind donation) TOTAL REVENUES Spend down balance TOTAL $ 337,293 $ 293,417 $ 52,295 $ 30,171 $ 15,086 $ 15,086 $ 68,386 $ 68,386 $ 15,086 $ 8,045 $ 68,386 $ 15,086 $ 15,086 $ 68,386 $ 6,614 $ 12,000 $ 458,099 $ 43,876 $ 501,975 EXPENSES Salaries & Wages Benefits Professional Services Interfund Allocations Office Space (in -kind donation) Supplies Subtotal Administering agency - 10% admin fee** • TOTAL $ 253,191 $ 68,296 $ 81,945 $ 40,000 $ 12,000 $ 2,000 $ 457,432 $ 44,543 $ 501,975 RESERVE TOTAL $ 501,975 *King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year. "10% administrative fee is calculated as a percentage of operating costs which excludes in -kind donations and carry -forwards. Resolution No. 2025-01 May 16, 2025 Page 7 of 7 20