RES 20-780 - Authorizing Transfer of Funds to SKHHP RESOLUTION NO. 20-780
A RESOLUTION of the City of Federal Way,Washington,authorizing
the Mayor to transfer funds collected under the provisions of RCW
82.14.540 and City of Federal Way Ordinance 19-879 to the South
King Housing and Homelessness Partners.
WHEREAS,the 2019 State Legislature approved, and the Governor signed,the Laws of
2019, Chapter 338 (Substitute House Bill 1406), which allows cities and counties to recapture a
portion of Washington State sales tax when it is used to support affordable housing initiatives;and
WHEREAS, on November 5,2019, the Federal Way City Council passed Ordinance 19-
879, which authorized a recapture of Washington State sales tax that is estimated to generate
approximately$125,000 per year for the next 20 years; and
WHEREAS,on February 19,2019,the Federal Way City Council authorized the Mayor to
enter into an Interlocal Agreement with eight other south King County cities and King County to
form the South King Housing and Homelessness Partners (SKHHP); and
WHEREAS, the executed Interlocal Agreement states that "the Parties have determined
that the most efficient and expeditious way for the Parties to address affordable housing needs in
South King county is through cooperative action and pooling public and private resources;" and
WHEREAS, all ten jurisdictions of SKHHP have taken action to enact the sales tax
recapture provisions established in RCW 82.14.540; and
WHEREAS,on November 22,2019 the SKHHP Executive Board took unanimous action
to adopt SKHHP Resolution 2019-06, attached as Exhibit A, which urges each of the member
cities and King County to pool 100% of the funds collected under the provisions of HB 1406
(RCW 82.14.540); and
Resolution No. 20-780 Page I of 8
WHEREAS, if all nine cities pool the maximum extent of collected funds under RCW
82.14.540 to SKHHP,the estimated revenue would total approximately$1,000,000 per year for a
20-year period; and
WHEREAS,funds may be used for the purpose of acquiring,rehabilitating,or constructing
affordable housing; funding the operations and maintenance costs of new units of affordable or
supportive housing; and
WHEREAS, cities that have a population of less than 100,000 may also use the funds for
providing rental assistance to tenants, however, using the funds in this manner will require
substantial administrative oversight with respect to preparing a program that requires city staff to
review personal income information of individuals who request access to funds and accounting and
auditing the use of the funds; and
WHEREAS,the City of Federal Way is projected to exceed a population of 100,000 within
the 20-year window set forth in RCW 82.14.540, which will prohibit Federal Way from using
funds for the purpose of providing rental assistance; and
WHEREAS, counties and cities that enact the provisions RCW 82.14.540 may issue
general obligation or revenue bonds, and may use moneys collected for the repayment of bonds;
and
WHEREAS, RCW 82.14.540 requires counties and cities that enact its provisions to
provide annual reports to the Department of Commerce.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. Findings. The administrative costs associated with managing a program that
Resolution No. 20-780 Page 2 of 8
provides rental assistance to tenants combined with the annual reporting requirements established
in Laws of 2019, Chapter 338 are likely to exceed Federal Way's estimated revenue collection.
While $125,000 is a valuable revenue stream that can be used in Federal Way to support
various affordable housing initiatives, a contribution to SKHHP will allow the use of funds to
stretch much further and to make a far more profound and meaningful impact to addressing the
affordable housing challenges faced in South King County.
Section 2.The Mayor is authorized to take administrative actions necessary to direct funds
collected under RCW 82.14.540 and City of Federal Way Ordinance 19-879 to SKHHP.
Section 3. This authorization is contingent upon each of the other SKHHP cities taking
similar actions directing funds collected under RCW 82.14.540 to SKHHP.
Section 4. Severability. If any section,sentence,clause or phrase of this resolution should
be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause, or phrase of this resolution.
Section 5. Corrections. The City Clerk and codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener/clerical errors, references, resolution numbering, section/subsection numbers and any
references thereto.
Section 6.Ratification.Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Section 7.Effective Date. This resolution shall be effective immediately upon passage by
the Federal Way City Council.
Resolution No. 20-780 Page 3 of 8
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 18th day of February, 2020.
CITY OF FEDERAL WAY:
JIM FE LL, MAYOR
ATTEST:
�mm U
EPHANIE COURTNE MC, CITY CLERK
APPROVED AS TO FORM:
r.
J. RYAN CALL, CITY ATTORNEY
FILED WITH THE CITY CLERK: 02/12/2020
PASSED BY THE CITY COUNCIL: 02/18/2020
RESOLUTION NO.: 20-780
Resolution No. 20-780 Page 4 of 8
EXHIBIT A
RESOLUTION NO.2019-06
A RESOLUTION OF THE EXECUTIVE BOARD OF THE
SOUTH KING COUNTY HOUSING AND HOMELESSNESS
PARTNERS URGING SKHHP MEMBER CITIES TO
SUPPORT POOLING OF HB 1406 FUNDS.
WHEREAS,in 2019 the cities of Auburn, Burien, Covington , Des Moines, Federal Way,
Kent, Normandy Park, Renton, and Tukwila and King County entered into an Interlocal
Agreement(ILA)that formed the South King Housing and Homelessness Partners (SKHHP);
and
WHEREAS, pursuant to the ILA, the member cities have a common goal to ensure
availability of housing that meets the needs of all income levels in South King County; and
WHEREAS, also pursuant to the ILA, the member cities wish to act cooperatively to
formulate housing policies and strategies that address housing stability,to foster efforts to
preserve and provide affordable housing by combining public funding with private- sector
resources, to support implementation of the Washington State GMA, related countywide
planning policies, and other local policies and program relating to affordable housing, and to
do so efficiently and expeditiously; and
WHEREAS, also pursuant to the ILA, the member cities have determined that the
most efficient and expeditious way for the parties to address affordable housing needs in
South King County is through cooperative action and pooling of public and private
resources; and
Resolution No. 20-780 Page 5 of 8
WHEREAS, the ILA states that the parties intend that the ILA serves as a framework
for all participating municipalities within the broader SKHHP Sphere of Influence to do the
aforementioned work; and
WHEREAS, on July 26, 2019 the SKHHP Executive Board adopted Resolution
2019-05 which urges member cities to declare their intent to enact the provisions of HS
1406; and
WHEREAS, Resolution 2019-05 states that the Executive Board commits to
developing options and a recommendation,including forthe proposed pooling of funding,that
details funding commitments for each member city's legislative authority to consider for
future subsequent action; and
WHEREAS, HB 1406 is a powerful and meaningful funding source to further advance
the efforts of the housing objectives established through the ILA that, if pooled, will generate
approximately $1,000,000 per year for the eligible 20 year period (See Attachment A);and
WHEREAS, the Executive Board adopts the recommendations contained within this
resolution as a unified statement of support by SKHHP member cities.
NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows:
Section 1. The Executive Board of SKHHP urges all member cities to pool the base
sales tax credit revenues collected under HB 1406 and to allocate the full amount of those
revenues to SKHHP.
Section 2. In order to maximize HB 1406 funding within King County,the Executive
Board of SKHHP urges all member cities to take Ordinance action on HB 1406 after King
County takes action.
Resolution No. 20-780 Page 6 of 8
Section 3. The Executive Board of SKHHP urges King County to award HB 1406
funds to housing development based in the Urban Growth Areas(UGA) ofSKHHP member
cities in a manner that proportionately represents the cumulative population of the UGA's of
SKHHP member cities.
Section 4. The Executive Board of SKHHP commits to aligning the use of HB 1406
funds with the work plan required within the adopted ILA and the recommendation and
priorities of the Regional Affordable Housing Task Force Five Year Action Plan.
Section 5. Individual municipalities have unit}ue housing needs andpriorities
and not every protect pr000sal will align with a city's goals, policies. or laws. Tile intent
and effect of this resolution is not to usurb a city's individual authority Therefore, if funds
are pooled for the Dtlrpose of aiding in the creation or preservation of housing.the process
for pro ect consideration must allow the city in which the project is proposed to first
approve or reject the proposal prior to the Executive Board's_commitment of funds to the
ion iect-
Section 6. This Resolution will take effect and be in full force on passage and
signature.
Dated and Signed this 2►° day of2019.
SOUTH KING COUNTY HOUSING AND HOMELESSNESS PARTNERS
A GY� ":ALJ•~�. CHAI Shawn Campbell, Auburn ity Clerk
Resolution No. 20-780 Page 7 of 8
SKHHP Resolution 2019-06 Attachment A
Estimated HB 1406 Revenue by SKHHP Municipality (based on 2018 revenues)
I: City - EMirnated AnnuaI Revenue
Auburn $154.992 r
Burien —1 $65,477
Covington 1 S43,678
Des Moines $29,793
Federal Way_____ $124,142
Kent $185.467
Normandy Park $4.866
Renton $236,380
Tukwila $162,046
Totalud not inci
� --- ------ ing King County} ' $19006,841.00
Resolution No. 20-780 Page 8 of 8