Title
Briefing on House Bill (HB) 1406 Funding Recommendations
Recommended Action
Committee Recommendation:
The Home Fund Advisory Board discussed Olympia's HB1406 revenue options at their August meeting and developed funding recommendations.
City Manager Recommendation:
Receive a briefing on the Home Fund Advisory Board's HB1406 funding recommendations and discussion of other HB1406 matters. Discussion only. No action requested.
Report
Issue:
Whether to receive a briefing on the Home Fund Advisory Board's HB1406 recommendations and an update on HB1406 implementation.
Staff Contact:
Cary Retlin, Home Fund Manager, Community Planning & Development, 360.570.3956
Presenter(s):
Cary Retlin, Home Fund Manager, Community Planning & Development
Background and Analysis:
Background on HB 1406 and Council Action
During the 2019 legislative session the state enacted House Bill 1406, a local option to retain existing sales tax revenue and retain it locally for specific affordable housing uses. The new authority is a credit against the state sales tax, so it does not increase taxes for the consumer. Because Olympia has passed a 'qualifying local tax' in the Home Fund, it can claim the higher increment of 0.0146% of local sales and use tax for up to 20 years. A city with similar revenue would only be able to withhold half the revenue from the state without a 'qualifying tax'. The revenue must be used for acquiring, rehabilitating, or constructing affordable housing; operations and maintenance of new affordable or supportive housing facilities; and rental assistance. The funding must be spent on projects that serve persons whose income is at or below 60 percent of area median income. Cities can also issue bonds to finance the authorized projects.
Council adopted an ordinance to impose the tax credit on August 20.
Home Fund Advisory Board Recommendations on HB1406
The Home Fund Advisory Board discussed Olympia's HB1406 revenue options at their August meeting includin...
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