037-15 - Kitsap County - ContractKC-057-15
Interlocal Agreement Between Kitsap County and the
City of Bainbridge Island, City of Bremerton, City of Port Orchard and City
of Poulsbo Concerning Allocation of SHB 2060 Surcharge Funds to Very
Low -Income Housing Projects in Kitsap County and its Incorporated Cities
This Agreement, made pursuant to Chapter 39.34 RCW, is between KITSAP COUNTY
(hereinafter, the County), a political subdivision of the State of Washington, and the CITY OF
BAINBRIDGE ISLAND, the CITY OF BREMERTON, the CITY OF PORT ORCHARD, and
the CITY OF POULSBO, (hereinafter, the Cities), municipal corporations of the State of
Washington.
WHEREAS, in 2002, the State enacted an Act relating to funding the operation and
maintenance of low-income housing projects through SHB 2060, 2002 Washington Laws Ch.
294;
WHEREAS, pursuant to SHB 2060, RCW 36.22.178, revenue generated through a
surcharge on recording documents (hereafter "SHB 2060 surcharge funds") may be used by the
County and its Cities and Towns for housing projects that are affordable to very low-income
persons;
WHEREAS, under the Act, the portion of the surcharge retained by a county shall be
allocated to very low-income housing projects or units within such housing projects in the county
and the cities within the county according to an Interlocal Agreement;
WHEREAS, in 2004, the County and the Cities agreed through an inter -local agreement
that the SHB 2060 surcharge funds would be distributed through a competitive grant program
(hereafter "grant program") that would be administered and governed through the Kitsap
Regional Coordinating Council (hereinafter KRCC);
WHEREAS, the grant program was implemented through the KRCC, using a set of
Guiding Principles developed jointly by the County and the Cities that served as a framework for
allocating the surcharge monies to the various projects;
WHEREAS, these Guiding Principles were incorporated into a Policy Plan in 2012 that
was adopted and subsequently updated by the County and the Cities through participation in the
KRCC;
WHEREAS, in January 2015, the KRCC voted to recommend to the Cities and County
that this grant program be administered and governed by Kitsap County instead of by the KRCC;
WHEREAS, the County and the Cities desire to formalize this agreement to designate
Kitsap County to carry out administration and governance of the SHB 2060 surcharge funds
through this Interlocal Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions
contained herein, the parties agree as follows:
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 1
SECTION 1 PURPOSE
The purpose of this Agreement is to establish the County as the administrator and governing -
body for the allocation of SHB 2060 (RCW 36.22.180) surcharge funds to eligible applicants.
SECTION 2 ADMINISTRATIVE STRUCTURE
2.1 The County is governed by the Board of County Commissioners, (BoCC) consisting of
elected commissioners from three voting districts. The BoCC shall set policy concerning the use
and distribution of SHB 2060 funds as per the Affordable Housing Program Policy Plan
previously adopted by the KRCC Board, and may amend the Policy Plan at its discretion from
time to time.
2.2 The Kitsap Continuum of Care Coalition (KCoCC), which is an unincorporated association
of low-income and homeless housing providers in Kitsap County, has agreed, through a separate
memorandum of agreement, to act as the technical advisory body to the BoCC for this program.
2.3 The KCoCC agreed to develop and recommend to the BoCC specific annual priorities for
the use of that year's SHB 2060 funds. Representatives of the Cities and the County shall have
the opportunity to participate in the process to develop funding priorities.
2.4 Each year an Advisory Board(s) of citizen volunteers shall be appointed as follows: each
Mayor shall appoint one citizen volunteer to each Board and each County Commissioner shall
appoint one citizen volunteer to each Board. The Advisory Board(s) will review funding
applications and prepare funding recommendations for the BoCC's consideration. The Advisory
Board(s) will review the annual priorities developed by the KCoCC and include in its
recommendations how the priorities are being addressed by the recommendations given. The
recommendations may include options or a single set of recommended projects. Representatives
of the Cities shall have the opportunity to attend a study session on the recommended grant
awards prior to the BoCC making final awards.
2.5 The Kitsap County Human Services Department and the Kitsap County Auditor shall partner
to administer awarded funds. The administrative costs are to be covered by the 5% of the
surcharge allowed to be retained by the County for collecting and dispersing the document
recording fees, as referenced in the Policy Plan.
2.6 The County may set aside a percentage or specific amount of funds to address emergent
housing needs consistent with the purposes of Chapter 36.22 RCW, so long as it meets the
requirements of RCW 36.22.178.
SECTION 3 FUND AVAILABILITY
3.1 On an annual basis, the County shall publish a Notice Of Funds Availability (NOFA). This
notice will set forth the annual program priorities; amount of funds available; the duration of
funds to be awarded or distributed; the deadline for submission of funding applications; and any
other pertinent information related to the process.
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 2
SECTION 4 ELIGIBLE RECIPIENTS
4.1 Eligible recipients. Eligible recipients of the SHB 2060 surcharge funds shall include
public housing authorities, IRS -certified non-profit agencies/providers of affordable housing, the
Cities, the County, the Tribes, and for -profit developers, provided the funds are used only for
projects as defined in Section 5, herein and as provided under RCW 36.22.178.
4.2 Geographic Equity. The County shall be responsible for ensuring that funds are distributed
in a manner that balances existing needs throughout the County with program users' access to
services. It is the overall intent of this Agreement that, over time, all areas of Kitsap County
shall equitably receive appropriate levels of funding pursuant to this Interlocal Agreement
consistent with countywide and local housing needs and policies.
SECTION 5 PERMISSIBLE USES OF SHB 2060 SURCHARGE FUNDS
5.1 Permissible Uses of the SHB 2060 surcharge funds are limited to those uses set out under
RCW 36.22.178 as follows:
(a) Acquisition, construction, or rehabilitation of housing projects or units within housing
projects that are affordable to very low-income households with incomes at or below fifty
percent (50%) of the area median income, including units for homeownership, rental
units, seasonal and permanent farm worker housing units, units reserved for victims of
human trafficking and their families, and single room occupancy units;
(b) Supporting building operation and maintenance costs of housing projects or units
within housing projects eligible to receive housing trust funds, that are affordable to very
low-income households with incomes at or below fifty percent (50%) of the area median
income, and that require a supplement to rent income to cover ongoing operating
expenses;
(c) Rental assistance vouchers for housing units that are affordable to very low-income
households with incomes at or below fifty percent (50%) of the area median income,
including rental housing vouchers for victims of human trafficking and their families, to
be administered by a local public housing authority or other local organization that has an
existing rental assistance voucher program, consistent with or similar to the United States
Department of Housing and Urban Development's Section 8 rental assistance voucher
program standards; and
(d) Operating costs for emergency shelters and licensed overnight youth shelters.
5.2 SHB 2060 funds shall not be used for construction of new housing if at any time the
vacancy rate for available low-income housing within the County rises above ten percent (10%).
5.3 A priority must be given to eligible housing activities that serve extremely low-income
households with incomes at or below thirty percent (30%) of the area median income.
5.4 In the event RCW 36.22.178 is amended to include additional permissible uses of the SHB
2060 surcharge funds, those permissible uses shall also be permitted under this Agreement
without formal amendment to this Agreement.
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 3
5.5 In the event RCW 36.22.178 is amended to disallow any current permissible uses of the
SHB 2060 surcharge funds, set forth in Section 5.1 above, those permissible uses shall no longer
be permitted under this Agreement without formal amendment to this Agreement.
SECTION 6 FUND DISTRIBUTION
6.1 As a condition to receiving any SHB 2060 surcharge funds, each successful applicant shall
enter into a contract with Kitsap County, relating to the applicant's use of the funds and
applicable standards for the project ("the Contract").
6.2 The process for grantees receiving funds is specified in the Policy Plan.
SECTION 7 SHB 2060 PROGRAM REVIEW
At least each five years the County, with input from the cities, KCoCC, the public and other
interested parties, shall review the program operation, including geographic equity, and shall
implement any appropriate changes.
SECTION 8 PROJECT MONITORING
8.1 The County shall monitor all projects for compliance with the funding terms and conditions
in the Contract(s).
8.2 The County shall require all funding recipients to provide quarterly program reports to the
County.
SECTION 9 MISCELLANEOUS
9.1 Duration. This Agreement will have an indefinite duration unless the funding source is
eliminated by the -State Legislature.
9.2 Termination. Any party may terminate its participation in this Agreement upon 90 days'
written notice to the other parties.
9.3 Filing. When fully executed, this Agreement shall be filed with the Kitsap County Auditor.
9.4 Notices. Any notices required by this Agreement shall be delivered, or mailed postage
prepaid, and addressed to:
Kitsap County
Clerk to the Board
Office of the Kitsap County
Board of Commissioners
614 Division Street
Mailstop 4
Port Orchard, WA 98366
City of Bainbridge Island
City Clerk
City of Bainbridge Island
280 Madison Avenue N.
Bainbridge Island, WA 98110
City of Bremerton
City Clerk
City of Bremerton
345 6th Street, Suite 600
Bremerton, WA 98337
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 4
City of Port Orchard
City Clerk
City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
City of Poulsbo
Mayor
City of Poulsbo
200 NE Moe St.
P.O. Box 98
Poulsbo, WA 98370
9.5 Administration. As this Agreement contemplates no joint or cooperative undertaking, each
party shall administer the Agreement as to its own responsibilities under the Agreement. The
County shall oversee the revenue sharing process provided for in this Agreement.
9.6 Reporting. At the start of each calendar year, the County shall report to the Cities all awards
made with SHB 2060 surcharge funds pursuant to this Agreement during the preceding calendar
year.
9.7 Waiver. The failure by the County or any City to enforce any term or condition of this
Agreement shall not be construed to constitute a waiver of any other term or condition, or of any
subsequent breach of any provision, of this Agreement.
9.8 Entire Agreement. This Agreement includes the entire Agreement of the parties with respect
to any matter addressed in this Agreement
9.9 Amendment. This Agreement may be amended only upon the written agreement of the
parties made with the same formalities as those required for its original execution.
9.10 Review. The County and the Cities shall review this Agreement every five years;
provided, that nothing herein shall be construed as limiting the parties' rights to amend this
Agreement at any time in accordance with Section 9.9 above.
9.11 Effective Date. This Agreement shall take effect immediately upon recording a fully
executed original of this Agreement in the office of the Kitsap County Auditor.
9.12 Authorization. By resolution or ordinance, the governing bodies of the County and the
Cities have authorized their respective designated officials to execute this Agreement on their
behalf.
9.13. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but all of which, taken together, shall constitute one and the same
agreement.
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 5
Interlocal Agreement Between Kitsap County and the
City of Bainbridge Island, City of Bremerton, City of Port Orchard and City
of Poulsbo Concerning Allocation of SHB 2060 Surcharge Funds to Very
Low -Income Housing Projects in Kitsap County and its Incorporated Cities
APPROV5D BY THE KITSAP COUNTY BOARD OF COMMISSIONERS
this ZZ ` day of ��% c , 2015
p4e4
Robert Gel er, Ch it
Edward E. Wolfe, Cbinmissioner
NOT PRESENT
Charlotte Garrido, Commissioner
ATTEST:
Dana Daniels, Clerk of the Bdard
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 6
Interlocal Agreement Between Kitsap County and the
City of Bainbridge Island, City of Bremerton, City of Port Orchard and City
of Poulsbo Concerning Allocation of SHB 2060 Surcharge Funds to Very
Low -Income Housing Projects in Kitsap County and its Incorporated Cities
PASSED,TY THE CITY OF BAINBRIDGE ISLAND CITY COUNCIL
this 5_ day of , 2015.
/ f
Anne S. Blair, Mayor`/
ATTEST:
Rosalind �off,iCity Clerk
.... jt, .
s
1, City Attorney
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 7
Interlocal Agreement Between Kitsap County and the
City of Bainbridge Island, City of Bremerton, City of Port Orchard and City
of Poulsbo Concerning Allocation of SHB 2060 Surcharge Funds to Very
Low -Income Housing Projects in Kitsap County and its Incorporated Cities
PASS BY THE CM OF BJ�EMERTON CITY COUNCIL
this day of Ift Vtl, /L , 2015.
APPR9U,�D BY THE CITY OF BREMERTON MAYOR
this if zT�day of � 2015.
Patty Lent, or
ATTEST:
Shannon L. Corin, City Clerk
APPROVED AS TO FORM:
ger A. Lubovich, City Attorney
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 8
Interlocal Agreement Between Kitsap County and the
City of Bainbridge Island, City of Bremerton, City of Port Orchard and City
of Poulsbo Concerning Allocation of SHB 2060 Surcharge Funds to Very
Low -Income Housing Projects in Kitsap County and its Incorporated Cities
PASSED BY THE CITY OF PORT ORCHARD CITY COUNCIL
this 1 C> day of flD a f Ly) , 2015.
APPROVED BY THE CITY OF PORT ORCHARD MAYOR
this ) C) day of O)rt ][]C n , 2015.
���
Tim Matthes, Mayor
` .st;ttltlllil/
C �°•eORATF
ATTEST:
Brandy Riearson, City Clerk
TF0
F�l�NP.•`'•
APPROVED AS TO FORM:
l
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 9
Interlocal Agreement Between Kitsap County and the
City of Bainbridge Island, City of Bremerton, City of Port Orchard and City
of Poulsbo Concerning _Allocation of SIIB 2060 Surcharge Funds to Very
Low -Income housing Projects in Kitsap County and its Incorporated Cities
PASS I)_BY THE CI Y OF POULSBO CITY COUNCIL
this day of , 2015.
APPR )X�D BY TH C TY OF POULSBO MAYOR
this '`--[[ day of k1 , 2015.
Becky'Eric s n, Mayor
ATTEST:
Nicole Stephens, CMC, City Cle
APPROVED AS TO FORM:
James Haney, City Attorney
KC-057-15 ILA regarding SHB 2060 Surcharge Funds updated 2-20-15 Page 10