Loading...
HomeMy WebLinkAboutCAG2023-545 - Original - City of Covington - Pool Sales Tax Receipts with South King Housing & Homeless Partners Cities - 09/18/2023 FOR CITY OF KENT OFFICIAL USE ONLY Sup/Mgr: l� Agreement Routing Form DirAsst:400 • For Approvals,Signatures and Records Management Dir/Dep: KEN T This form combines&replaces the Request for Mayor's Signature and Contract Cover (Optional) W A S H I N G T O N Sheet forms. (Print on pink or cherry colored paper) Originator: Department: KateLynn Jennings for Merina Hanson Parks, Recreation & Community Services Date Sent: Date Required: > 10/09/2023 Soonest possible please O Q Authorized to Sign: Date of Council Approval: Q Mayor or Designee 10/3/2023 Budget Account Number: Grant? Yes NoE] N/A Budget?W]Yes E]No Type: N/A Vendor Name: Category: South King Housing&Homelessness Partners (SKHHP) Interlocal Vendor Number: Sub-Category: = Original O 4.0 Project Name: Pool Sales Tax Receipts with SKHHP Cities 3- Project Details: Interlocal agreement for the purpose of pooling HB 1590 sales tax receipts with South 0- King Housing Homelessness Partners Cities to administer funds. C C EO Agreement Amount Basis for Selection of Contractor: *Memo to Mayor must be attached i 19/18/2023 Start Date: Termination Date: Q Local Business? Yes F—]No*If meets requirements per KCC 3.70.100,please complete'Vendor Purchose-Locol Exceptions"form on Cityspace. Business License Verification: ❑Yes In-ProcessD Exempt(KCC 5.01.045) W1 Authorized Signer Verified Notice required prior to disclosure? Contract Number: E]YesW1No CAG2023-545 Comments: H i 3 f0 a1 C C a1 Vf � 3 O Date Received:City Attorney: 10/19/23Date Routed:Mayor's Office 10/23/23' City Clerk's office[0/24/23 adccW22373_1_20 Visit Documents.KentWA.gov to obtain copies of all agreements rev.20221201 DocuSign Envelope ID: B4732696-C8F6-46FD-AA5C-AB50032DC28D Interlocal Agreement For the Purpose of Pooling Sales Tax Receipts with South King Housing and Homelessness Partners ("SKHHP") Cities to Administer Funds Under RCW 82.14.530 This Interlocal Agreement ("Agreement") is entered into by and between the Cities of Covington and Kent, 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 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 on February 1, 2022, the jurisdiction of Maple Valley became a party to the SKHHP Interlocal Agreement; and WHEREAS, in the 2020 Regular Session, the Washington State Legislature approved House Bill (HB) 1590, which was signed into law by the Governor, and is now codified at RCW 82.14.530; and WHEREAS, RCW 82.14.530 authorizes a one-tenth of one percent (0.1%) local sales and use tax to fund construction, maintenance, and operations costs related to affordable housing and behavioral health facilities, programs, and services; and WHEREAS, a city's legal ability to impose and collect this tax depends on whether and when the county has also enacted it. On October 13, 2020, the King County Council imposed this tax throughout King County. As a result, only those King County cities that had already imposed this tax before October 13, 2020 would be able to lawfully collect it after that date. The cities of Covington and Kent are among such King County cities, as are the cities of Maple Valley and Renton; and WHEREAS, RCW 82.14.530 requires that a minimum of sixty percent (60%) of the monies collected through this sales and use tax may only be used for: (i) constructing or acquiring affordable housing (which may include emergency, transitional, and supportive housing, new units of affordable housing within an existing structure, and facilities providing housing-related services, or acquiring land for these purposes); or (ii) constructing or acquiring behavioral health-related facilities (or acquiring land for these purposes); or (iii) funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers; and WHEREAS, RCW 82.14.530 further requires that the affordable housing and facilities funded by the sales and use tax may only be provided to persons earning up to sixty percent (60%) of King County's area median income and belonging to one of the following population SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 1 of DocuSign Envelope ID:B4732696-C8F6-46FD-AA5C-AB50032DC28D groups: (i) Persons with behavioral health disabilities; (ii) Veterans; (iii) Senior citizens; (iv) Persons who are homeless or at-risk of being homeless, including families with children; (v) Unaccompanied homeless youth or young adults; (vi) Persons with disabilities; or (vii) Domestic violence survivors; and WHEREAS, the SKHHP Housing Capital Fund was established in the SKHHP Interlocal Agreement and originally funded through the pooled sales tax receipts authorized under RCW 82.14.540 through an interlocal agreement between the cities of Auburn, Burien, Des Moines, Federal Way, Kent, Normandy Park, Renton, and Tukwila between February 2021 and July 2021; and WHEREAS, the SKHHP Executive Board adopted the 2023 SKHHP Housing Capital Fund Guidelines on July 21, 2023 which provide that the sales and use tax receipts authorized under RCW 82.14.530 from contributing member jurisdictions would support the (i) Construction or acquisition of affordable housing, which may include supportive housing and new units of affordable housing within an existing structure; or (ii) Acquisition of land for affordable housing; and WHEREAS, the Parties wish to act cooperatively by pooling their respective RCW 82.14.530 tax receipts with SKHHP tax funds received from its member jurisdictions to leverage the pooled funds toward a more meaningful and significant impact on affordable housing challenges in south King County consistent with this Agreement, RCW 82.14.530, and the annually adopted SKHHP Housing Capital Fund Guidelines; and WHEREAS, the Parties' pooling of RCW 82.14.530 sales tax receipts with SKHHP through the SKHHP Housing Capital Fund will continue to build the resources available to support a regional funding source that fosters regional-decision making, 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 the Parties to each pool all or a portion of their respective RCW 82.14.530 tax receipts for use by SKHHP in funding the affordable and supportive housing projects and/or programs authorized under RCW 82.14.530(2)(a)- (b). 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. SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 2 of 6 DocuSign Envelope ID:B4732696-C8F6-46FD-AA5C-AB50032DC28D 3. Pooled Funds. The legislative body of each Party shall consider whether it will pool with SKHHP all or a portion of its RCW 82.14.530 tax receipts. Each Party that determines that it will pool all or a portion of its RCW 82.14.530 tax receipts shall transfer to SKHHP the funds it intends to pool with the SKHHP Housing Capital Fund. Each Party's contribution will be transmitted to SKHHP on an annual basis. 4. Uses of Pooled Funds. Consistent with the permissible uses of funds set forth in RCW 82.14.530, SKHHP will distribute funds pooled under this Agreement only for the purposes authorized by RCW 82.14.530(2)(a) (as now enacted or hereafter amended) to serve persons within any of the following population groups whose income is at or below 60%the King County area median income: (i) Persons with behavioral health disabilities; (ii) Veterans; (iii) Senior citizens; (iv) Persons who are homeless or at-risk of being homeless, including families with children; (v) Unaccompanied homeless youth or young adults; (vi) Persons with disabilities; or (vii) Domestic violence survivors. 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 and/or its Housing Capital Funds Guidelines. 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, as established by the SKHHP Interlocal Agreement, provides 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 provided by the sales and use tax receipts authorized under RCW 82.14.530 will be limited to projects that: (i) are within the SKHHP sphere of influence as identified in the SKHHP Interlocal Agreement and the annually adopted SKHHP Housing Capital Fund Guidelines; (ii) meet the eligibility criteria of RCW 82.14.530; SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 3 of 6 DocuSign Envelope ID:B4732696-C8F6-46FD-AA5C-AB50032DC28D and (iii) are consistent with the annually adopted SKHHP Housing Capital Fund Guidelines. 6. Expenditure of Pooled Funds Authorized Under RCW 82.14.530; 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 82.14.530 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. b. Before any Party's pooled funds are awarded or distributed for funding of a project or program selected pursuant to Section 4 "Use of Pooled Funds" of this Agreement, the legislative body of such Party shall authorize the application of a specified amount of its RCW 82.14.530 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 and RCW 82.14.530 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 a majority affirmative vote from the legislative bodies of all 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 82.14.530 tax receipt monies in the SKHHP Housing Capital Fund will be distributed to the SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 4 of 6 DocuSign Envelope ID:B4732696-C8F6-46FD-AA5C-AB50032DC28D 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. 12. Amendments. 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 this Agreement (evidenced by authorized signatures of those Parties). 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 approval by 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 September 18, 2023, 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 September 18, 2023, 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. 15. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. (Signature Page Follows) SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 5 of 6 DocuSign Envelope ID:B4732696-C8F6-46FD-AA5C-AB50032DC28D Approved and executed this 18th day of September , 2023. Name of Party: CITY OF COVINGTON EuSi9neddby: Regan Bolli, City Manager Approved as to form: Lgneedd by: 1^. Mark Orthmann, City Attorney Name of Party: CITY OF KENT Dana Ralph, Mayor Approved as a form: Tammy White, City Attorney SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 6 of 6 Approved and executed this 18th day of September , 2023. Name of Party: CITY OF COVINGTON Regan Bolli, City Manager Approved as to form: Mark Orthmann, City Attorney Name of Party: CITY OF KENT Panalph, Mayor Approved as a form: �//-(— 1��— Adam Long, City Attorney SKHHP HB 1590 Interlocal Agreement—September 18, 2023 Page 6 of 6