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Home My WebLink AboutReg 2026-06-15 Item 6C - Resolution - South King Housing & Homelessness Partners (SKHHP) / 2027 Work Plan & Operating BudgetCity of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 6.C. Agenda Item Sponsor Legislative History Recommended Motion South King Housing and Homelessness Partners 2027 Work Plan and Budget Laurel Humphrey, Legislative Analyst June 8, 2026 Planning & Community Development Committee June 15, 2026 Regular Meeting Consent ❑ Discussion Only ❑x Action Requested MOVE TO approve the resolution adopting the SKHHP 2027 Work Plan and Operating Budget EXECUTIVE SUMMARY 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. Councilmember Martinez serves as Tukwila's representative on the Executive Board. Consistent with the SKHHP Interlocal Agreement, the SKHHP 2027 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. Pursuant to the SKHHP Interlocal Agreement, each participating jurisdiction must approve SKHHP's annual budget and work plan. The 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 with the Executive Board in March. The 2027 work plan and budget was adopted on May 15, 2026 at the Executive Board's regularly scheduled meeting. The 2027 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 the previous two years' 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 2027 SKHHP operating budget totals $525,008, 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. To support the fiscal stability of member jurisdictions, the Executive Board has approved an operating budget that maintains member contributions at 2026 levels for the upcoming cycle. Recognizing the evolving demands within South King County, SKHHP staff will develop growth projections as part of the 24 2027 work plan. These projections will provide a data -driven framework for evaluating future contribution levels to ensure the organization remains positioned to meet the region's long-term needs. Member contributions are based on population size accordingly, and no members are moving into a new population tier in 2027: Population tier 2026 Contribution 2027 Contribution <10,000 $8,045 $8,045 10,001 - 35,000 $15,086 $15,086 35,001 - 65,000 $30,171 $30,171 65,000 - 100,000 $52,295 $52,295 100,000+ $68,386 $68,386 Salaries and benefits are proposed to increase by 6% in 2027. 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 10%. Professional Services is proposed to decrease by 22% ($17,975) due to an every other year data update to the SKHHP Affordable Housing Inventory Dashboard ($18,000). Professional Services include Advisory Board compensation ($14,400), contract attorney expenses ($30,000), third -party construction reports ($6,000), travel ($6,000), professional development ($6,800), Housing Development Consortium member dues ($750), 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 2027 Executive Board recommended operating budget includes $501,975 that was set -aside as reserve in 2025 and an additional $525,008 to be set -aside as part of the 2027 budget that is 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 outlined in Resolution 25-02 adopted by the SKHHP Executive Board on May 16, 2025. Interest earned in 2025 on all SKHHP funds totaled $544,744. Interest earned in 2025 by jurisdiction to be set -aside in reserve with the remaining supporting the 2026 Housing Capital Fund funding round are as follows: TABLE 1: 2025 INTEREST EARNED BY JURISDICTION AND BOARD RECOMMENDED ALLOCATIONS JURISDICTION Reserve AUBURN BURIEN COVINGTON DES MOINES FEDERAL WAY KENT MAPLE VALLEY NORMANDY PARK RENTON SEATAC TUKWILA KING COUNTY TOTAL $23,575 $11,254 $38,672 $5,381 $20,942 $276,093 $87,736 �974 $39,212 $21,169 Housing Capital $886 $423 $1,453 $202 $788 $10,379 $3,298 $37 1,474 $796 Fund TOTAL 2025 Interest $24,461 $11,677 $40,125 $5,583 $21,730 $286,472 $91,034 ,011 $40,686 $21,965 25 Spending interest earnings requires the approval of each SKHHP member with allocated earned interest based on their contributions. With the adoption of the 2027 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 2026 funding round of the Housing Capital Fund and Council will provide approval to use those funds during the annual concurrence process in early 2027. FINANCIAL IMPACT Complete for all items with fiscal implications work subject to review by he City Attorney Disclaimer: Final terms and scope of ❑x Expenditure - Budgeted ❑ Expenditure - Unbudgeted Expenditures: Fund Source: $15,086 Revenues(if applicable): General Fund • Expenditure - Grant -Funded • Revenue — One -Time (e.g. s0 asset sale, surplus equipment) ❑ Revenue - Ongoing ATTACHMENTS (06/08 PCD Committee) A. Presentation B. Draft Resolution ATTACHMENTS (06/15 Regular Council) A. Final Resolution B. Minutes from 06/08/26 Planning & Community Development (PCD) Committee Meeting 26 Washington esolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING TRANSPORTATION IMPACT FEES IN ALIGNMENT WITH RECENT CHANGES TO THE TUKWILA MUNICIPAL CODE; AMENDING RESOLUTION NO. 2105. WHEREAS, on February 21, 2019, the City of Tukwila entered into an Interlocal Agreement (ILA) with eight other south King County cities and King County to form the South King Housing and Homelessness Partners (SKHHP); and WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must approve an annual work plan each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must approve SKHHP's annual budget that includes an itemization of all categories of budgeted expenses and itemization of each Party's contribution, including in -kind services; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and to implement the overarching SKHHP goals 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 2027 work plan includes four goals with corresponding action items that further SKHHP's mission; and WHEREAS, on May 15, 2026, the SKHHP Executive Board adopted Resolution No. 2026-03, enacting the 2027 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: 2026 Legislation: SKHHP Work Plan & Operating Budget Version: 05/22/2026 Staff: Laurel Humphrey Page 1 of 2 27 Section 1. The City Council adopts the 2027 South King Housing and Homelessness Partners Work Plan and 2027 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 , 2026. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Armen Papyan, Council President APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A: South King Housing and Homelessness Partners Resolution No. 2026- 03, Adopting the 2027 SKHHP Work Plan and Operating Budget 2026 Legislation: SKHHP Work Plan & Operating Budget Version: 05/22/2026 Staff: Laurel Humphrey Page 2 of 2 28 Docusign Envelope ID: 464AFF47-F9D1-816F-827A-D4A1 D3FE1 DCB RESOLUTION NO. 2026-03 A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING COUNTY HOUSING AND HOMELESSNESS PARTNERS(SKHHP), ADOPTING THE 2027 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 Resolution No. 2026-03 May 15, 2026 Page 1 of 9 29 Docusign Envelope ID: 464AFF47-F9D1-816F-827A-D4A1 D3FE1 DCB WHEREAS, the 2027 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 2027 SKHHP Work Plan in Attachment A. Section 2. The Executive Board adopts the 2027 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. The Executive Manager shall conduct a comprehensive budget analysis and fiscal performance report prior to the development of the 2028 budget. This report will evaluate the financial efficiency of operations and establish cost -performance benchmarks to inform future funding requirements. Section 5. The Executive Manager is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 6. SKHHP staff is authorized to make necessary corrections to this Resolution including, but not limited to, the correction of scrivener's/clerical errors, references, Resolution numbering, section/subsection numbers, and any references thereto. Resolution No. 2026-03 May 15, 2026 Page 2of9 30 Docusign Envelope ID: 464AFF47-F9D1-816F-827A-D4A1 D3FE1 DCB Section 7. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed this 22nd day of May , 2026. SOUTH KING COUNTY HOUSING AND HOMELESSNESS PARTNERS Signed by: �FECa2ABD 7t047G... NANCY BACKUS, CHAIR ATTEST: ,—Signed by: V OV'Sbt P .\—b3:b3325T EU4B1... Dorsol Plants Acting Executive Manager Resolution No. 2026-03 May 15, 2026 Page 3 of 9 31 RESOLUTION 2026-03 — ATTACHMENT A SKHHP 2027 WORK PLAN PURPOSE Establish a 2027 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 2027 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 2027 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 9 3. Serve as an advocate for South King County. 10 through 15 4. Manage operations and administration. 16 through 22 Resolution No. 2026-03 May 15, 2026 Page 4 of 9 32 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 2023-25 Housing Capital Fund funding rounds. • • • 3. Facilitate approval from participating Councils of recommended projects from 2026 Housing Capital Fund funding round and prepare contract documents and covenants for any projects ready to move forward. ••• 4. Manage 2027 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. 2026-03 May 15, 2026 Page 5 of 9 Rev. 2018 33 ono Goal 2 Develop policies to expand and preserve affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 6. Facilitate a review of inclusionary zoning models and feasibility requirements to identify potential shared policy goals among member jurisdictions. •• 7. Convene land use planners (SoKiHo) to increase coordination and collaboration on housing policy and planning. • 8. Build relationships with developers to learn from their perspective the ways to encourage housing development, especially affordable housing. • 9. Develop SKHHP Executive Board briefings on key housing and homelessness topics, especially as they relate to the goals of the work plan. • Indicators o Subregional inclusionary zoning potential shared policy goals and feasibility report prepared and presented o Number of relationships fostered with developers o Number of Executive Board briefings on key housing and homelessness topics Resolution No. 2026-03 May 15, 2026 Page 6 of 9 Rev. 2018 34 Goal 3 Serve as an advocate for South King County. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 10. 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. • • 11. 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. • 12. 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. • 13. Connect affordable housing developers with property owners who intend to sell naturally occurring affordable housing in coordination with member cities. • 14. 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). • 15. Host a South King County legislative forum to amplify awareness of SKHHP's work and subregional housing needs. • 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 successfully executed Resolution No. 2026-03 May 15, 2026 Page 7 of 9 Rev. 2018 35 I Goal 4 Manage operations and administration. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 16. Develop annual work plan and budget. ••• 17. Generate and distribute quarterly progress reports to SKHHP Executive Board and member jurisdictions. ••• 18. Work with administering agency to maintain records and produce regular financial reports for the SKHHP Housing Capital Fund and SKHHP Operating Account. ••• 19. Organize and host monthly Executive and Advisory Board public meetings. ••• 20. Implement and refine monitoring and compliance process to ensure Housing Capital Fund projects maintain affordability for tenants. ••• 21. Facilitate membership outreach to interested South King County cities to engage potential partners and scale regional housing impact. •• 22. Evaluate current staff capacity and establish comparative growth models to inform SKHHP's Tong -term expansion. •• 23. 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 Number of outreach meetings, informational briefings, or regional workshops conducted with non-member South King County cities. o Staffing capacity report and growth models prepared and presented to Executive Board o Website maintained Resolution No. 2026-03 May 15, 2026 Page 8 of 9 Rev. 2018 36 RESOLUTION 2026-03 — ATTACHMENT B 2027 SKHHP Operating Budget Estimated beginning fund balance - January 1, 2027 $ 398,094 Estimated ending fund balance - December 31, 2027 $ 331,185 REVENUES Auburn $ 52,295 Burien $ 30,171 Covington $ 15,086 Des Moines $ 15,086 Federal Way $ 68,386 Kent $ 68,386 Maple Valley $ 15,086 Normandy Park $ 8,045 Renton $ 68,386 SeaTac $ 15,086 Tukwila $ 15,086 King County* $ 68,386 Additional King County* $ 6,614 Office space (in -kind donation) $ 12,000 TOTAL REVENUES $ 458,099 Spend down balance $ 66,909 TOTAL $ 525,008 EXPENSES Salaries & Wages $ 269,648 Benefits $ 85,662 Professional Services $ 63,970 Interfund Allocations $ 44,000 Office Space (in -kind donation) $ 12,000 Supplies $ 2,000 Subtotal $ 477,280 Administering agency - 10% admin fee** $ 47,728 TOTAL $ 525,008 RESERVE TOTAL 1,026,983 "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. 2026-03 May 15, 2026 Page 9 of 9 Rev. 2018 37 City of Tukwila City Council Planning & Community Development Committee Meeting Minutes June 8, 2026, 5:30 p.m. - Hybrid Meeting; City Council Conference Room & MS Teams Councilmembers Present: Kate Kruller, Chair; Jo Camacho, Jane Ho Staff Present: Laurel Humphrey, Pete Mayer, Nora Gierloff, Neil Tabor, Nick Wagood Guest: Dorsol Plants, SKHHP Chair Kruller called the meeting to order at 5:30 p.m. BUSINESS AGENDA A. Resolution: South King Housing & Homelessness Partners Workplan and Budget Staff is seeking approval of a resolution to adopt SKHHP's 2027 work plan and operating *budget. Committee Recommendation Unanimous approval. Forward to June 15, 2026 Regular Consent Agenda. B. Ordinance: Rental Housing Regulations Staff is seekingapproval of an ordinance amending TMC 5.06 to include an inspection incentive program allowing well -managed properties to reduce the number of units to be inspected at the four-year inspection cycle. Committee Recommendation Unanimous approval. Forward to July 13, 2026 Committee of the Whole. C. Miscellaneous Code Amendments Staff is seeking approval of five ordinances and one resolution to correct inconsistencies and provide clarity to better align certain regulations with desired outcomes. Committee Recommendation Unanimous approval. Forward to July 13, 2026 Committee of the Whole. MISCELLANEOUS The meeting adjourned at 6:52 p.m. Committee Chair Approval 38