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ORDINANCE _________________

AN ORDINANCE relating to low-income housing; requesting that a special election be held concurrent with the November 2009 general election for submission to the qualified electors of the City of a proposition to lift the limit on regular property taxes under Chapter 84.55 RCW in order to authorize the City to levy additional taxes for low-income housing for up to seven (7) years; providing for interim financing pending tax receipts; creating a levy oversight committee; providing for implementation of programs with funds derived from the taxes authorized; and ratifying and confirming certain prior acts.

WHEREAS, the $86,000,000 housing levy authorized in Ordinance 120823 and approved by the voters in 2002 (the "2002 Levy") expires with the collection of 2009 property taxes; and

WHEREAS, the 2002 levy had a production goal of 1,718 rental units, and as of December 2008 the City has approved 2002 Levy funding for the production or preservation of 1,814 rental units, as well as assisted 211 first-time homebuyers and 4,146 renter households at risk of homelessness; and

WHEREAS, the $59,211,000 housing levy authorized in Ordinance 117711 and approved by the voters in 1995 had a production goal of 1,360 units, and over 2,632 units were actually produced or preserved by leveraging other funds; and

WHEREAS, the $49,975,000 housing levy authorized in Ordinance 112904 and approved by the voters in 1986 had a production goal of 1,000 units, and over 1,800 units were actually produced or preserved by leveraging other funds; and

WHEREAS, the $48,178,000 low-income elderly and handicapped housing bond issue authorized in Ordinance 110124 and approved by the voters in 1981 had a production goal of 1,000 units, and 1,198 units were actually produced or preserved; and

WHEREAS, substantial need remains for additional low-income housing and assistance to help low-income persons access housing they can afford, as documented in the Housing Appendix to the Comprehensive Plan and the City’s 2009-2012 Consolidated Plan; and

WHEREAS, Chapter 84.55 RCW generally limits the dollar amount of regular property taxes that a city may levy in any year, but RCW 84.55.050 allows a city to levy taxes exceeding such limit by majority approval of the voters, and allows a city to include in the ballot proposition a limit on the purpose for which the additional taxes levied will be used and to provide for the expiration of the additional taxing authority; and

WHEREAS, RCW 35.21.685 authorizes a city to assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants of general municipal funds to the owners or developers of the housing, including loans or grants to finance the acquisition, construction or rehabilitation of low-income housing;

NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Findings. The City Council makes the following findings and declares as follows:

A. The City of Seattle has insufficient safe, sanitary, and decent housing affordable to low-income households to meet the present and anticipated needs of such households, as documented in the Housing Appendix to the Comprehensive Plan and the City's 2009-2012 Consolidated Plan.

B. Affordable rental housing for low-income households, including the homeless, other persons with special needs, families and seniors, often requires a commitment of City funds for development or preservation, or other forms of assistance.

C. Promoting home ownership through loans to low-income first-time homebuyers, coupled with homeownership counseling, helps create financial stability for families and mixed income neighborhoods.

D. Providing funding for acquisition or preservation of buildings or property for low-income housing is critical to take advantage of current housing market conditions.

E. Providing funding to help develop, preserve and finance housing affordable to low-income renters and homebuyers helps create jobs and generate significant income received by construction workers and local business owners.

F. The additional taxes to be levied under this ordinance will enable the City to provide for the housing needs of low-income households and thereby to fulfill the purposes of federal, State, County and City laws and policies, including without limitation the federal HOME Investment Partnerships Act, the State Growth Management Act ("GMA"), the Countywide Policies adopted under GMA, and the City's Comprehensive Plan.

Section 2. Definitions. The following terms used in this ordinance shall have the definitions stated below unless the context otherwise clearly requires:

"Low-income housing" means housing that will serve "low-income households."

"Household" means a single person, family or unrelated persons living together.

"Low-income household" means a household with income less than or equal to eighty percent (80%) of median income.

“Median income” means annual median family income for the statistical area or division thereof including Seattle for which median family income is published from time to time by the U.S. Department of Housing and Urban Development, or successor agency, with adjustments according to household size in a manner determined by the Director of Housing, provided that if an Administrative and Financial Plan adopted under Section 6 of this ordinance shall adopt a substitute definition of “median income,” the substitute definition shall apply.

To the extent permitted by applicable State law, income determinations may take into account such exclusions, adjustments and rules of computation as may be prescribed or used under federal housing laws, regulations or policies for purposes of establishing income limits, or as may be established in City planning documents consistent with federal laws, regulations or policies.

Section 3. Proposition to Authorize Levy of Additional Regular Property Taxes.

The City submits to the qualified electors of the City a proposition as authorized by RCW 84.55.050(1), to exceed the levy limitation on regular property taxes contained in RCW Chapter 84.55 for property taxes levied in 2009 through 2015 for collection in 2010 through 2016, respectively, raising up to $145,000,000 in aggregate over a period of up to seven years. The proposition shall be limited so that the City shall not levy more than $20,714,286 in additional taxes each year. All the levy proceeds shall be used for the purposes specified in Section 5.A. of this ordinance. The taxes authorized by this proposition will be in addition to the maximum amount of regular property taxes the City would have been limited to by RCW 84.55.010 in the absence of voter approval under this ordinance, plus other authorized lid lifts. If the voters approve the proposition submitted by this ordinance, the maximum total dollar rate for City of Seattle regular property taxes for collection in 2010 shall be a total maximum of $ 3.60 per thousand dollars of assessed valuation. The dollar amount of the City’s levy of regular property taxes in 2009 for collection in 2010, including the increase authorized under this section, shall be used for the purpose of computing the limitations for subsequent levies provided for in RCW Chapter 84.55, through and including the levy of taxes in 2015 for collection in 2016. Pursuant to RCW 84.55.050(5), the maximum regular property taxes that may be levied in 2016 for collection in 2017 and in later years shall be computed as if the limit on regular property taxes had not been increased under this ordinance.

Section 4. Levy Revenues.

A. Unless otherwise directed by ordinance, all revenues collected from the additional taxes authorized pursuant to this ordinance shall be deposited in the Low-Income Housing Fund to be used to finance housing for low-income households and otherwise to provide for the housing needs of such households. The Director of Executive Administration is authorized to create other subfunds or accounts within the Low-Income Housing Fund as may be needed or appropriate to implement the purposes of this ordinance.

B. Pending expenditure for the purposes authorized in this ordinance, amounts deposited in the Low-Income Housing Fund pursuant to this ordinance may be invested in any investments permitted by applicable law. All investment earnings on the balances shall be deposited into the Low-Income Housing Fund. Amounts received by the City from payments with respect to loans, recovery of grants, insurance proceeds or proceeds of sale or disposition of property ("program income") shall be deposited into the Low-Income Housing Fund unless otherwise specified by ordinance. The Director of Housing shall use any investment earnings and program income derived from revenues collected from the additional taxes authorized pursuant to this ordinance consistent with the provisions of any Administrative and Financial Plan (“A & F Plan”) adopted by the City Council under Section 6 of this ordinance.

Section 5. Administration; Use of Proceeds.

A. The levy funds shall be used to finance affordable housing for low-income households, and otherwise to provide for the housing needs of low-income households.

B. The City Office of Housing, or such other department as may be designated by ordinance, shall administer programs funded with the additional taxes authorized pursuant to this ordinance. Programs adopted by the City Council for use of the funds derived under this ordinance shall be referred to as "Levy Programs." Levy Programs shall be implemented consistent with Administrative and Financial Plans, adopted by the City Council under Section 6 of this ordinance.

C. Anticipated Levy Programs are shown in Exhibit 1, attached hereto. The City Council, upon recommendation of the Oversight Committee described in Section 9 of this ordinance, or upon recommendation of the Mayor, or on its own motion, may review the timing of the allocations to particular Levy Programs and make changes to the programs, including additions and deletions of programs and/or in the amount of funds allocated to any program, consistent with the basic purposes of this ordinance and applicable law. Administration funding shown on Exhibit 1 is intended to be used for administration of the use of levy proceeds for all programs except the Operating and Maintenance Program. Administration funding for the Operating and Maintenance Program, for the monitoring of funded projects over their lives, and for any use of loan repayments, may come from investment earnings or program income.

Section 6. Administrative and Financial Plans.

A. Every two years, or at such other intervals as the City Council may specify, the Director of Housing, or other department head as may be designated by the Mayor, shall prepare an A & F Plan covering all of the Levy Programs. Such plans shall cover periods commencing in 2010 and continuing through 2016, and thereafter if so specified by the City Council.

B. Unless otherwise requested by the City Council, each A & F Plan shall include: amounts allocated to programs, which may vary from year to year in order to respond to changing housing market conditions, leveraging opportunities or other circumstances; criteria for evaluating and selecting projects; guidelines for loans or grants, including any fees to be collected to defray costs; requirements for project sponsors; progress and performance reports on ongoing projects and for each Levy Program; program reviews to ensure that levy funds are used for their stated purposes; and guidelines for use of program income and investment earnings. An A & F Plan may include such other information as the Mayor or Director of Housing may deem appropriate or the City Council may request.

C. The A & F Plan shall be submitted to the City Council for its approval, with such modifications as the City Council may require. For purposes of future updates of the A & F Plan, all criteria, guidelines, and requirements contained in a previously approved A & F Plan shall remain in effect pending approval by City Council of a new A & F Plan, unless otherwise provided by ordinance.

Section 7. Appropriations and Funding Approvals. The City Council shall appropriate from the Low-Income Housing Fund, as part of the City budget or supplementally, such monies derived from the levies authorized in this ordinance as it deems necessary to carry out the Levy Programs. The Director of Housing or other department head as may be designated by the Mayor or City Council, or the designee of such director (any such director or designee is hereinafter referred to as "Director"), is authorized, for and on behalf of the City, to select projects for funding and to approve, make and modify loans, grants or other expenditures to carry out the Levy Programs, provided that such authority is subject to the appropriation of sufficient funds. The Director and his or her designees are further authorized, for and on behalf of the City, to execute and deliver such documents and instruments as he or she may determine to be necessary or appropriate to implement the financing of specific projects or to otherwise carry out the Levy Programs.

Section 8. Bonds and Notes. To the extent permitted by applicable law the City may issue bonds, notes or other evidences of indebtedness payable wholly or in part from the proceeds of the additional taxes authorized under this ordinance, and apply such tax proceeds to the payment of principal of, interest on, and premium (if any) on such bonds, notes or other evidences of indebtedness and to the payment of costs associated with them.

Section 9. Oversight Committee.

A. Conditioned upon voter approval of the ballot proposition submitted by this ordinance, there is established an Oversight Committee for the purpose of monitoring the progress of Levy Programs and reporting to the Mayor and City Council on the progress of Levy Programs. The Committee shall inform the Mayor and the City Council of Levy Program accomplishments and problems and make recommendations on the A & F Plans and on actions to be taken, including additions to or deletions of programs or amounts of funds allocated to the several programs, so that Levy Programs may be conducted in a timely and efficient manner. The Committee may elect officers and establish rules of procedure, including rules establishing what shall constitute a quorum. The Director of Housing or such other department head as may be designated by the Mayor shall provide the Committee such information as is necessary for the Committee to determine the status of individual programs and projects. The Oversight Committee shall consist of thirteen (13) voting members, selected as follows: one (1) shall be a City employee appointed by the Mayor or his designee; one (1) shall be a City employee appointed by the City Council; the remainder shall be persons outside City government, of whom six (6) shall be appointed by the Mayor, and five (5) by the City Council. The appointing authority shall remove any member who is absent from two or more consecutive meetings without cause. The appointing authority may remove any member for other good cause shown or to ensure compliance with subsection B of this section.

B. At all times no more than three (3) Committee members appointed by the Mayor and no more than two (2) Committee members appointed by the City Council shall be an officer, director, board member, trustee, partner or employee of an entity that receives or competes for funding under this ordinance; or be a member of the immediate family of, or an individual residing with, an officer, director, board member, trustee, partner or employee of an entity that receives or competes for funding under this ordinance; or be a person seeking or having an arrangement concerning future employment with an entity that receives or competes for funding under this ordinance. For the purposes of this ordinance an individual’s “immediate family” means his or her spouse, domestic partner, child, child of a spouse or domestic partner, brother-in-law, sister-in-law, parent, parent of a spouse or domestic partner, a person for whom the individual acts as a guardian, or a person claimed as a dependent on the individual’s most recent federal income tax return. Subject to the preceding sentence and applicable law, an individual serving as an officer, director, board member, trustee, partner or employee of an entity that receives or competes for funding under this ordinance, or who has an interest in such an entity, shall not thereby be disqualified from serving on the Committee, but shall fully disclose any such relationships and shall not vote on any matter in which the interest of such entity is directly involved. For purposes of this section, “entity” does not include a City department or office.

C. Upon the resignation, retirement, death, incapacity or removal of a Committee member, the authority appointing such member may appoint a replacement for the balance of the term. Committee members shall serve without compensation.

D. The City Council shall prescribe by ordinance or resolution the terms of office of Committee members, which may be staggered to provide continuity, and the initial committee members shall be selected within six months after voter approval of the proposition submitted by this ordinance. The City Council may prescribe such other rules relating to the operation of the Committee as shall be necessary or appropriate.

E. The Oversight Committee shall continue in existence through 2016, and thereafter if so provided by ordinance.

Section 10. Election - Ballot Title. The City Council directs that the City Clerk file this ordinance with the Director of Elections of King County, Washington, as ex officio supervisor of elections, requesting that the Director of Elections call and conduct a special election in the City in conjunction with the state general election to be held on November 3, 2009, for the purpose of submitting to the qualified electors of the City the proposition set forth in this ordinance. The City Clerk is directed to certify to the King County Director of Elections the ballot title approved by the City Attorney in accordance with his responsibilities under RCW 29A.26.071. The following ballot title is submitted to the City Attorney for his consideration:

Seattle’s Proposition 1 concerns increased property taxes for 7 years for low-income housing assistance.

This proposition would fund affordable housing and provide for other housing needs of low-income households, as provided in Ordinance XXX. It would authorize collection of regular property taxes above RCW 84.55 limitations. This proposition allows $145,000,000 in additional taxes over seven years beginning in 2010, limited to $20,714,286 annually. The 2010 regular tax rate would be limited to $3.60 per $1,000 assessed value, including about $.17 in additional taxes.

Should this levy lid lift be approved?

Yes
No

Those in favor shall vote “Yes”; those opposed shall mark their ballots “No”.

Section 11. Severability. If any one or more provisions of this ordinance shall for any reason be held invalid, such invalidity shall not affect any other provision of this ordinance or the levy of additional taxes authorized, but this ordinance shall be construed and enforced as if such invalid provisions had not been contained herein, except that if any provision shall be held invalid by reason of its extent or the range of persons eligible to benefit therefrom, then such provision shall be deemed to be in effect to the extent permitted by law and to benefit only such class of persons as may lawfully be granted the benefit thereof.

Section 12. Ratification. The City Clerk’s certification to the King County Director of Elections of the proposition referred to in Section 10 and any other acts taken after the passage of this ordinance and consistent with its authority, are ratified and confirmed.

Section 13. Effectiveness. Those portions of this ordinance providing for the submission of a ballot proposition to the voters shall take effect and be in force immediately upon the approval by the Mayor; or if returned to the Council by the Mayor unsigned, then immediately upon its return; or if not approved and returned by the Mayor within 10 days after presentation, then on the 11th day after its presentation to the Mayor; or if vetoed by the Mayor, then immediately after its passage over his veto. All provisions of this ordinance that have not taken effect on an earlier date shall take effect and be in force thirty (30) days from and after the Mayor’s approval of this ordinance, but if this ordinance shall not be approved and returned by the Mayor within ten (10) days after presentation, such provisions shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2009, and signed by me in open session in authentication of its passage this _____ day of ___________________, 2009.

_________________________________
President __________of the City Council

Approved by me this ____ day of _____________________, 2009.

_________________________________
Gregory J. Nickels, Mayor

Filed by me this ____ day of __________________________, 2009.

____________________________________
City Clerk
(Seal)

Exhibit 1: 2009 Housing Levy Programs

 

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