SKHHP was established in 2019 through an interlocal agreement (Establishing ILA) to address the affordable housing challenges facing the subregion as a coordinated, unified, and collaborative coalition. SKHHP currently has 11 member jurisdictions including the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, and Tukwila, plus King County.
In 2019, RCW 82.14.540 (SHB 1406) became law allowing jurisdictions to enact a local sales and use tax for the purpose of supporting affordable housing. In 2021, eight of the nine SKHHP member cities entered into a second interlocal agreement for purposes of pooling sales tax receipts authorized by RCW 82.14.540 with SKHHP to create the Housing Capital Fund (Pooling ILA – SHB 1406). In 2022, SKHHP awarded two projects in South King County almost $1.4 million during the first annual funding round.
In 2023, two of the four SKHHP member cities who are able to collect RCW 82.14.530 (HB 1590) revenues desired to pool a portion of those funds with SKHHP for the 2023 funding round of the Housing Capital Fund to add to existing SHB 1406 pooled revenue and entered into an additional interlocal agreement (Pooling ILA – HB 1590).
The Establishing ILA and Pooling ILAs established the SKHHP Housing Capital Fund, set parameters for the process for the selection of awards involving pooled funds, and determined the approval process. Pursuant to the ILAs, the SKHHP Executive Board recommends allocations for funding affordable housing projects to the participating City Councils. Even though the Council has already contributed funds to the 2023 Housing Capital Fund funding round, Council approval is needed to authorize the allocation of funds to specific projects.
The SKHHP Executive Board adopts annual funding guidelines and priorities for each funding round. The SKHHP Advisory Board subsequently reviewed applications and provided a funding recommendation based on adopted priorities to the SKHHP Executive Board. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board’s recommendation and recommends funding four projects totaling $5,747,306 as described in the 2023 SKHHP Housing Capital Fund Recommendation memo dated January 17, 2024 (attached).
The SKHHP Executive Board requests approval to use $137,595 of the total $152,865 contributed funds from 2023 from the City of Auburn for the following recommended projects:
|
Project Sponsor and Project Name
|
Location
|
# of Units
|
Total Development Cost
|
Total SKHHP Contribution
|
Total City Contribution
|
|
Mercy Housing NW – Kent Multicultural Village
|
Kent
|
199
|
$134,323,456
|
$1,000,000
|
$0
|
|
LIHI – Skway Affordable Housing and Early Learning Center
|
Skyway
|
55
|
$36,295,892
|
$2,800,000
|
$0
|
|
TWG – Pandion at Star Lake
|
Kent
|
168
|
$87,149,708
|
$1,170,000
|
$0
|
|
Multi-Service Center – Victorian Place II
|
Des Moines
|
20
|
$785,125
|
$777,306
|
$137,595
|
As outlined in the attached memo, sales and use tax receipts from your jurisdiction have already been contributed to SKHHP’s 2023 Housing Capital Fund, and with this Council approval of $137,595 those funds may be allocated to the projects recommended by the SKHHP Executive Board. Detailed descriptions of the projects, funding requests, rationale, and recommended conditions of funding for projects by the SKHHP Executive Board are included in the attached memo.
Resolution 5753 was presented to City Council during the February 26, 2024 Study Session. |