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Home My WebLink AboutCommittee of the Whole - 22 Feb 2021 - Agenda - Pdf CITY OF RENTON AGENDA Committee of the Whole Meeting 6:00 PM - Monday, February 22, 2021 Videoconference 1. HB 1590 UPDATE a) Presentation Currently, due to the spread of COVID-19, all regularly-scheduled committee meetings will be held as necessary via video-conference. City hall is closed to the public. If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/88441893052?pwd=VGlFUm8wVFhEaXIwb2U1L1UvelU2dz09 Zoom Meeting ID: 884 4189 3052 Passcode: 323936 You can call through Zoom at 253.215.8782 and use the Meeting ID 884 4189 3052 HB 1590 1/10th of 1 Cent Sales Tax for Investment in Affordable Housing, Mental Health, Homelessness Presented to Renton City Council, February 22, 2021 AGENDA ITEM #1. a) ▪Enacted by 2020 State Legislature, Chapter 222, Laws of 2020, RCW 82.14.530; effective June 11, 2020. ▪2015 law required that a 1/10th of 1 cent sales tax for affordable housing be voter approved. ▪HB 1590 allowed the sales tax to be councilmanically approved. ▪Revised statute gave counties until September 30, 2020 to impose the 1/10th of 1 cent sales tax through council action. ▪If counties had not acted by the September date, cities were then able to access the statutory authority. REVIEW OF HB 1590 AGENDA ITEM #1. a) ▪Renton City Council unanimously voted on October 5, 2020 to enact the 1/10th of 1 cent sales tax (Ordinance No. 5983). ▪Decision based on several considerations: ➢Wanted 1/10th of 1 cent sales tax proceeds collected in Renton to be most effectively used in the Renton community. ➢Wanted to keep funds in Renton; significant affordable housing, homelessness, mental health needs in our own backyard. ➢Can still effectively partner with King County, SKHHP, and others on sub-regional and regional investments. ▪The 1/10th of 1 cent sales tax became effective January 1, 2021. ▪King County and seven other cities adopted the 1590 tax as well. CITY OF RENTON ACTIONS AGENDA ITEM #1. a) ▪Approved an update of the City’s housing needs study–and added a human needs study–to help quantify the types and scopes of needs for long-term investments. ▪Formed an interdepartmental staff team–Mayor’s Office, CED, Community Services, ASD, PD, Legal–to develop a first year, early-action plan for use of 1590 funding. ▪Understood that first-year funds would only be 10 months’ worth of 1/10th of 1 cent sales tax proceeds due to time lag in receiving sales tax remittances from state. ▪Established first-year action plan on conservative projections of funding: ➢$2.5 million for Year 1 based on lagging economy ➢Pro-rated at 10 months ➢$2.08 million in funds INITIAL STEPS AGENDA ITEM #1. a) ▪At least 60% of funds must be used for: ➢Construction of affordable housing, mental and behavioral health-related facilities ➢Funding of O&M costs for new units of affordable housing and facilities where housing-related programs are provided ➢Persons with behavioral health disabilities ➢Persons with disabilities ➢Domestic violence survivors ➢Veterans ➢Senior citizens ➢Families with children who are homeless or at risk of being homeless ➢Unaccompanied homeless youth/young adults USE OF 1590 FUNDS AGENDA ITEM #1. a) USE OF 1590 FUNDS Continued ▪Year 1 minimum investment for “at least 60%” category: $1.248M ▪Up to 40% (remainder of funds) may be used for the operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services. ▪Year 1 maximum investment for “up to 40%” category: $832,000 AGENDA ITEM #1. a) ▪RHA Sunset Gardens project serving veterans, homeless, chronically homeless –76 units ➢Excellent fit with 1590 expenditure requirements ➢Time-sensitive –2021 matching funds must be secured or pledged to go with $1.541 million grant from King County ➢Year 1 Early-Action Investment Recommendation: $1M (with $500,000 additional for Year 2) RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: “AT LEAST 60%” CATEGORY AGENDA ITEM #1. a) ➢Early cost estimates, ONE-TIME -$500,000: o Modular home unit ($130,000) o Modular hygiene unit ($70,000) o Groundwork and utility hook-ups ($200,000) o Site design and architectural work ($60,000) o Security fencing ($40,000) ▪Facilities with housing-related programs provided; homeless feeding, cold-weather shelter, hygiene facilities, wrap-around services RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: “AT LEAST 60%” CATEGORY Continued AGENDA ITEM #1. a) ➢Early cost estimates, ONGOING -$650,000/year o Contract with agency for personnel/management of services and facility ($350,000) o Security personnel ($60,000) o Meals program ($100,000) o Operating, utilities, maintenance, janitorial ($140,000) ➢State Capital Budget allocation of $206,000 to spend toward this project ➢Year 1 Early-Action Investment Recommendation: $400,000 ▪Total Year 1 Early-Action “At Least 60%”: $1.4 million ▪Facilities with housing-related programs provided; homeless feeding, cold-weather shelter, hygiene facilities, wrap-around services Continued RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: “AT LEAST 60%” CATEGORY Continued AGENDA ITEM #1. a) ▪Mental Health Treatment and Services: ➢Currently, Renton PD part of multi-city coalition in South County receiving $250,000 mental health field response grant: o Mental health professional (MHP) and navigator responds to service calls where behavioral health service and treatment options are the preferred choice over arrest. o Grant only six months in duration and MHP, navigator, etc. will be housed in Des Moines. RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: “UP TO 40%” CATEGORY AGENDA ITEM #1. a) ▪Mental Health Treatment and Services Continued: ➢Collaborate with Kent (another 1590 city); both cities commit $300,000 of 1590 funds to supplement multi-city coalition with: o At least one additional mental health professional and two additional navigators o Services more convenient for Renton community o Mental health services and treatment work broader than just PD ➢Year 1 Early-Action Investment Recommendation: $300,000 RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: “UP TO 40%” CATEGORY Continued AGENDA ITEM #1. a) ▪Mental/behavioral health treatment programs and services related to pending relocation of homeless feeding program, cold-weather shelter, possible wrap- around services: ➢Funds will be geared toward operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services. ➢Year 1 Early-Action Investment Recommendation: $100,000 ▪Total Year 1 Early-Action “Up to 40%”: $400,000 RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: “UP TO 40%” CATEGORY Continued AGENDA ITEM #1. a) ▪Leave some funds in reserve: ➢Flexibility to respond to other emerging circumstances related to 1590 funding. ➢Completion of the housing and human needs assessment and update will assist in feedback, input, and direction from City Council to guide further actions. ▪Total Year 1 Early Action Reserve Funds: $200,000+ RECOMMENDED EARLY ACTION INVESTMENT LIST YEAR 1: RESERVE FUNDS AGENDA ITEM #1. a) ▪Partnership opportunities: ➢RHA ➢King County ➢Other 1590 cities ➢South King Housing & Homeless Partnership ▪Renton-specific funding: ➢Housing Opportunity Fund used by CED ➢Emergency Rental Assistance (if needed in future) LOOKING FORWARD AGENDA ITEM #1. a) ▪Funding will come to us every year, will want to formulate longer-term plans, especially as we learn more about how initial investments work. ▪Annual revenue had been projected at closer to $2.8M to $3M per year pre-pandemic; as the economy grows, the annual 1590 proceeds will increase. ▪There will be a learning curve, since we have never managed these types of affordable housing, homelessness, and mental health service funds before. ▪In the future, we’ll be considering how best to administer these funds; an issue that will become magnified in Year 2 and beyond. CLOSING THOUGHTS AGENDA ITEM #1. a) QUESTIONS?AGENDA ITEM #1. a)