Loading...
HomeMy WebLinkAboutCommittee of the Whole - 28 Sep 2020 - Agenda - Pdf CITY OF RENTON AGENDA Committee of the Whole Meeting 5:30 PM - Monday, September 28, 2020 Video-conference 1. Renton Regional Fire Authority Budget Review 2. King County Affordable Housing Sales Tax Briefing a) 2-pager on HB 1590 put together by King County b) Presentation Currently, due to the spread of COVID-19, all regularly-scheduled council and committee meetings will be held as necessary via video-conference. City hall is closed to the public. Residents are encouraged to participate in a variety of ways. 1) Submit comments in advance to cityclerk@rentonwa.gov. 2) View the meeting live on Renton Channel 21. 3) View the proceedings streaming live at http://rentonwa.gov/streaming. 4) If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/85718442341 Zoom Meeting ID 857 1844 2341 5) You can call through Zoom at 253.215.8782 and use the Meeting ID Health through Housing Proposal Summary Updated: September 25, 2020 The King County Executive is proposing enactment of a Health through Housing 0.1% Countywide Sales Tax authorized under RCW 82.14.530 (aka the Legislature’s 2020 HB 1590). By October 2022, house 2,000 King County residents who are experiencing or at risk of chronic homelessness—while reducing racial-ethnic disproportionality—by: 1. acquiring single-room settings like hotels while economic conditions are favorable, 2. putting them into immediate service as emergency and affordable housing, 3. funding operating and supportive services within housing, including behavioral health services, to keep people healthy and housed; and 4. converting acquired single-room settings into permanent supportive housing over time while continuing to develop additional affordable housing. Why this concept, why this instrument, why now? • Housing is a Foundation for Health: Single Room Housing is Healthier; Congregate Shelters are Not a Long-Term Solution Our COVID-19 deintensification actions show that the basics that underpin health for most of us would do the same for people without a home: the ability to sleep in a bed, to use a bathroom, to feel safe, and to have the dignity of a place to be are foundations of health, preventing problems that we must otherwise treat at even greater personal and financial cost. • A Temporary Opportunity to Make an Immediate & Lasting Difference COVID-19 provides TEMPORARY economic conditions to purchase single-room properties like hotels that we can immediately convert to emergency housing—we must be nimble enough to leverage this window for change. We have a chance to immediately increase housing stock for less money than is normally possible. This window will close. • Reframing the Housing vs. Shelter False Policy/Funding Choice We can invest in immediate emergency housing for King County residents—people and resources that would otherwise go to congregate shelters or unsheltered homelessness—and then re-develop the purchased properties to build permanent supportive housing for even more people over time. The same resources can provide emergency housing now and support long-term affordable housing goals. • We Center the Most Affected. Nothing is More Regressive for a Person Than Experiencing Homelessness. Attempts at more progressive revenue sources have failed, leaving the sales tax as the only available tool. Meanwhile, the status quo is costing our society, community, and budgets. What is proposed? Upon a majority vote of the King County Council, proposed ordinance 2020-0311 (sponsored by Councilmember Joe McDermott) will implement a 0.1% sales tax across King County for affordable housing, housing-related services and behavioral health treatment. Current forecasts estimate the tax will generate $65-70 million/year. The ordinance authorizes funding for the following: • Affordable housing; • Behavioral health-related facilities; • Operations and maintenance costs of affordable housing, facilities for housing-related services, or newly constructed evaluation and treatment centers; • Operation, deliver, or evaluation of behavioral health treatment programs and services or housing-related services; The Executive’s proposed 2021-22 budget appropriates $96 million from revenue generated in the first two years of the tax. These funds are appropriated for debt service payments for up to $400 million in bonds to finance affordable housing, operating and service expenses for those affordable housing units, and behavioral health treatment. AGENDA ITEM #2. a) Health through Housing Proposal Summary Updated: September 25, 2020 How will funds be spent? Proceeds collected in 2021 are directed by the County’s 2021-2022 biennial budget. Proceeds collected in 2022-2028 will be governed by the Initial Health through Housing Implementation Plan (Initial Plan), upon adoption by ordinance. In 2028 and every eight years after that, the executive will propose an update to the Health through Housing Implementation Plan. Ongoing Implementation Plan The Implementation Plan will: • Describe goals, strategies, performance measures, reporting requirements and annual expenditures • Include goals and performance measures for the annual reduction of racial and ethnic demographic disproportionality among persons experiencing chronic homelessness • Establish composition and responsibilities of a Health through Housing Advisory Committee to provide advice to the executive and council and report annually on the accomplishments and effectiveness of programs funded with the revenues. The committee will include: o Persons who have experienced homelessness; o Persons representative of racial and ethnic communities demographically disproportionately represented among persons experiencing chronic homelessness; o Residents of unincorporated areas and of cities with populations greater than 60,000 persons; and o Representatives from other county, city, and sub-regional boards, commissions or committees. INITIAL Implementation Plan (by 6/30/2021) The Executive will consult with the Affordable Housing Committee and the CEO of the King County Regional Homelessness Authority to develop the Initial Plan. 1. The paramount goal of the Initial Plan is creation and ongoing operation of 2,000 permanently affordable homes with housing-related services for eligible households that are experiencing chronic homelessness or that are at risk of experiencing chronic homelessness. 2. The Initial Plan will also support the creation and operation of a mobile behavioral health intervention program as an alternative to the use of law enforcement. This program will connect clients to housing created or operated with Health through Housing revenues. A portion of expenditures for 2022-2028 will also support and build the capacity of community-based organizations serving communities that are disproportionately demographically represented among persons experiencing chronic homelessness. 3. Specify the process to site affordable housing and behavioral health facilities funded from 2022-2028. Who will be served? All households served with affordable housing, or facilities providing housing-related services, with these funds must earn at or below 30% of Area Median Income and meet the following qualifications (required by RCW 82.14.530): • Persons with behavioral health disabilities; • Senior citizens; • Persons with disabilities; • Domestic violence survivors; • Homeless, or at-risk of being homeless, families with children; or • Unaccompanied homeless youth or young adults. Households must also meet one of the following definitions: • A household experiencing chronic homelessness must include an adult with a disability and either be currently experiencing homelessness for at least 12 consecutive months or have experienced homelessness for a cumulative 12 months within the prior 3 years. • A household at-risk of chronic homelessness describes a household that includes an adult with a disability and meets two additional criteria: 1. currently experiencing homelessness for 10-12 months in the previous 3 years or previously experienced homelessness for 12+ months within the last 5 years; and 2. include one adult that has been incarcerated within the previous 5 years, or been detained or involuntarily committed, or identifies as a member of a population that is demographically overrepresented among persons experiencing homelessness. How will you make decisions about siting housing and facilities? • Use an equity and social justice impact review process and consult with cities in which capital projects will be located. • Prioritize 2021 proceeds for sites/services within a city that submits a written statement of support. • Plan to spend at least 30% of funds collected in cities with over 60,000 residents in the community that generated those funds (consistent with RCW 82.14.530). AGENDA ITEM #2. a) House Bill 1590 Renton Housing Authority Golden Pines Senior Housing Renton Council Committee of the Whole (COW) Presentation on 1/10th of 1 Cent “Councilmanic” Sales Tax Authorized Via House Bill 1590 Enacted During the 2020 Session AGENDA ITEM #2. b) What is House Bill 1590 about? •Statute passed during 2020 Legislative Session •Amends a 2015 law that allowed counties to impose a 1/10th of 1 cent sales tax for constructing affordable housing and housing-related services for those with income below 60 percent of Area Median Income (AMI). •If counties don’t act, cities then allowed to impose tax. •Revised the law to allow counties (and subsequently cities, if counties do not act) to impose the 1/10th of 1 cent sales tax “councilmanically” (without voter approval).AGENDA ITEM #2. b) What is House Bill 1590 about? (cont’d.) •Under the 2015 law and HB 1590, at least 60 percent of revenues collected must be used for: Affordable housing and housing units Facilities providing housing-related services or behavioral health-related services Funding O&M of newly constructed housing or facilities providing housing-related services •The remainder collected must be used for operation, delivery, or evaluation of : Mental and behavioral health treatment programs and services Housing-related services AGENDA ITEM #2. b) How this applies to King County and potentially Renton •King County has prosed imposing the 1/10th of 1 cent sales tax as part of Executive Constantine’s 2021 budget package. •Prime interest is to raise funds to provide permanent supportive housing for chronically homeless. •Would like to use the 1/10th of 1 cent sales tax to purchase certain hotel and nursing home/group home facilities for permanent supportive housing. •Statute does not explicitly allow for purchasing of units; King County would look to amend state law. •The 1/10th of 1 cent sales tax could raise up to $80 million a year in King County and could generate as much as $400 million with bonding. •City and King County have been discussing ways the county could generate specific revenue to relocate the 235+ Red Lion Inn shelter residents to permanent supportive housing, a more suitable and long-term solution. AGENDA ITEM #2. b) Important stipulations for counties, King County especially •To retain exclusive right to impose the 1/10th of 1 cent sales tax countywide and keep all proceeds, counties must impose the full tax rate authorized by Sept. 30, 2020. •Administrative Services Division estimates that 1/10th of 1 cent sales tax equates to about $2.8M/year in Renton. •Not acting by Sept. 30, 2020 does not mean counties forfeit their ability to councilmanically impose the tax. •Their exclusive right to the 1/10th of 1 cent and proceeds from the tax goes away if a city elects, beginning Oct. 1, 2020, to impose the whole or remainder of the sales and use tax rate.AGENDA ITEM #2. b) Important stipulations for counties, King County especially (cont’d) •In King County, under the terms of HB 1590 (Sec. 1(B)(iii)), the County may only impose the 1/10th of 1 cent sales tax if it plans to spend at least 30 percent of the moneys collected within any city with a population greater than 60,000 located in that county within that city's boundaries. •Cities such as Renton, Kent, Bellevue, Kirkland, Federal Way, Auburn, Sammamish, and Redmond, King County must spend at least 30 percent of monies attributable within that city’s boundaries. AGENDA ITEM #2. b) What this means for Renton and policy choices for City Council •King County will not achieve the Sept. 30 deadline to retain exclusive rights over this tax. •King County’s desire to impose the 1/10th of 1 cent, in combination with its inability to do so by Sept. 30, 2020, opens up a potential avenue of opportunity for Renton. •Renton could impose the 1/10th of 1 cent sales tax beginning Oct. 1 and retain 100 percent of the proceeds generated in Renton for affordable housing investments. •Proceeds of $2.8 million a year could be used for Renton projects approved by the City Council vs. $840,000 a year for Renton projects that ultimately would be approved by King County.AGENDA ITEM #2. b) What this means for Renton and policy choices for City Council (cont’d) •Differences in key policy objectives on imposed sales tax between King County and Renton and others in South King Housing and Homelessness Partnership. •King County very clear about using the imposed tax to secure up to 2,000 permanent supportive housing units for those experiencing chronic homelessness. •Renton’s key policy objectives and vision is broader and more varied. Workforce housing and affordable housing to serve those at up to 60 percent AMI Senior housing Housing for persons with disabilities Veterans housing Housing for domestic violence survivors Homeless, or at risk of being homeless, families with children Affordable homeownership for eligible target populations with incomes at or below 60 percent of AMI Permanent supportive housing for persons with behavioral health disabilities AGENDA ITEM #2. b) What this means for Renton and policy choices for City Council (cont’d) •King County’s delay allows City the opportunity to establish funding to support affordable housing projects in Renton as approved by the Council. •City could use up to 50 percent of the moneys collected for repayment of affordable housing bonds. Allows City to potentially fund larger projects Allows City to potentially fund projects faster, no waiting for annual proceeds. •City, rather than King County, would have control over use of funds.AGENDA ITEM #2. b) Options for Renton City Council to Consider King County Council imposes 1/10th of 1 cent sales tax •PLUS: County makes decision on a new tax, not Renton City works with county on utilizing sales tax funding for relocating Red Lion Shelter residents to permanent supportive housing City ensures $840,000 a year of the 1/10th of 1 cent sales tax is invested back into Renton •MINUS: Renton only receives a guaranteed benefit of 30% of the sales tax vs. 100% King County decides how to spend the money in Renton $840,000 more likely spent on King County’s priority (permanent supportive housing for the chronically homeless) than Renton’s priorities City Council imposes the 1/10th of 1 cent sales tax •PLUS : The City controls 100 percent of sales tax revenues generated within Renton $2.8 million/year used for eligible projects and uses considered priorities by City •MINUS: Renton makes decision on a new tax, not County Economy is in a sharp downturn Many people are struggling financially AGENDA ITEM #2. b) CED staff recommend that Council impose the 1/10th of 1 cent sales tax under SB 1590 to have an ongoing and substantial annual revenue source to support eligible affordable housing projects for Renton’s residents. Staff Recommendation AGENDA ITEM #2. b) Questions, Thoughts, or Direction? Renton Housing Authority Sunset Gardens –proposed/awaiting funding AGENDA ITEM #2. b)