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Home My WebLink About4774 Resolution - The City of Pasco Affordable Housing Policies and Procedures Manual for Administration of HB 1406Resolution – THE CITY OF PASCO AFFORDABLE HOUSING POLICIES AND PROCEDURES MANAUAL FOR ADMINISTRATION OF HOUSE BILL 1406 AFFORDABLE HOUSING FUNDS-1 RESOLUTION NO. 4774 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, APPROVES ADOPTING THE CITY OF PASCO AFFORDABLE HOUSING POLICIES AND PROCEDURES MANUAL FOR ADMINISTRATION OF HOUSE BILL 1406 AFFORDABLE HOUSING FUNDS. WHEREAS, the Washington State Legislature adopted House Bill 1406, authorizing local governments to retain a portion of state sales and use tax revenues for affordable housing purposes; and WHEREAS, the City of Pasco elected to participate in the HB 1406 program through adoption of Resolution No. 3937; and WHEREAS, HB 1406 revenues may be utilized to support affordable housing activities benefiting households earning at or below sixty percent (60%) of Area Median Income, including acquisition, rehabilitation, construction of affordable housing, rental assistance, supportive housing, and related housing stability activities; and WHEREAS, the City has determined that a formal Affordable Housing Policies and Procedures Manual is necessary to establish consistent administrative procedures for the allocation, monitoring, reporting, and expenditure of HB 1406 funds; and WHEREAS, the proposed Affordable Housing Policies and Procedures Manual establishes eligibility requirements, affordability standards, application and review procedures, compliance monitoring requirements, record retention standards, and reporting procedures consistent with Washington State Department of Commerce requirements; and WHEREAS, the City Council finds that adoption of the Affordable Housing Policies and Procedures Manual promotes transparency, accountability, consistency, and responsible stewardship of public funds while supporting the City's affordable housing objectives. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City of Pasco Affordable Housing Policies and Procedures Manual, attached hereto and incorporated herein by this reference as Exhibit A, is hereby adopted as the governing document for administration of House Bill 1406 affordable housing funds. Be It Further Resolved, The City Manager, or designee, is authorized to implement and administer the Affordable Housing Policies and Procedures Manual and to take all actions Resolution – THE CITY OF PASCO AFFORDABLE HOUSING POLICIES AND PROCEDURES MANAUAL FOR ADMINISTRATION OF HOUSE BILL 1406 AFFORDABLE HOUSING FUNDS-1 necessary to ensure compliance with applicable state laws, Department of Commerce requirements, and reporting obligations associated with HB 1406 revenues. Be It Further Resolved, that this resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this 17th day of August, 2026. Charles Grimm Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Gabriela Sanchez Ogden Murphy Wallace, PLLC City Clerk City Attorney City of Pasco Affordable Housing Policies and Procedures Manual – HB 1406 Program Executive Summary The City of Pasco Affordable Housing Policies and Procedures Manual outlines the implementation and administration of funds received under House Bill 1406 and authorized by Resolution No. 3937. This manual establishes policies, procedures, and administrative requirements for eligible activities that support the development, preservation, and operation of affordable housing within the City of Pasco. Only the allowable uses specified in Resolution No. 3937 are included herein. I. Introduction The City of Pasco recognizes the importance of ensuring housing affordability and stability for all residents. House Bill 1406 provides local governments with authority to retain a portion of the state’s sales tax revenue for the purpose of supporting affordable housing. Resolution No. 3937 authorizes participation in this program. This manual serves as a guide for the administration and oversight of HB 1406 funds. II. Program Overview The HB 1406 Program provides local governments with flexible funding to address affordable housing needs. Funds must be used in accordance with Washington State Department of Commerce guidelines and Resolution No. 3937. Key objectives include: • Support the creation, acquisition, rehabilitation, or preservation of affordable housing units. • Provide rental assistance and support services to qualifying low-income households. • Prevent homelessness and promote housing stability. Program Administration: The [Responsible Department] will oversee program implementation, coordinate eligible projects, and ensure compliance with state and local requirements. III. Allowable Uses of Funds As specified in Resolution No. 3937, HB 1406 funds may be used for the following eligible activities: 1. Acquisition, rehabilitation, or construction of affordable housing projects. 2. Operations and maintenance costs of new or existing affordable housing projects. 3. Rental assistance programs that serve households at or below 60% of Area Median Income (AMI). 4. Supportive housing and related services for low-income or homeless populations. 5. Other uses explicitly authorized by Resolution No. 3937 or subsequent Council action. IV. Program Policies A. Eligibility Criteria HB 1406 funds shall benefit households with incomes at or below sixty percent (60%) of the City of Pasco median income thresholds established by HUD and adopted by the City. B. Non-Discrimination and Fair Housing All projects and programs funded through this policy must comply with federal and state fair housing laws, ensuring equal access regardless of race, color, religion, sex, national origin, familial status, disability, or any other protected class. C. Term of Affordability Projects funded with HB 1406 revenues shall maintain affordability for a minimum term of 30 years, unless otherwise authorized by the City Council. V. Program Procedures A. Application Process Applicants seeking HB 1406 funding shall submit a written proposal to the [Responsible Department]. The proposal must include project description, budget, timeline, and demonstration of compliance with eligible use categories. B. Review and Approval Applications will be reviewed by the [Review Committee or Department] to verify eligibility, alignment with program goals, and available funding. Recommendations shall be forwarded to City Council for approval. C. Funding Agreements and Disbursement Approved projects will enter into a funding agreement specifying project scope, affordability requirements, reporting obligations, and reimbursement procedures. All disbursements must comply with City financial controls. D. Monitoring and Compliance The [Responsible Department] shall conduct periodic monitoring of funded projects to verify compliance with affordability requirements, eligible use, and reporting standards established by the Department of Commerce. E. Record Retention and Audit All records related to HB 1406 expenditures shall be maintained for a minimum of six (6) years following the close of the fiscal year in which the funds were expended. VI. Compliance and Reporting Requirements The City shall comply with all reporting requirements established by the Washington State Department of Commerce. Annual reports shall include a summary of expenditures, project accomplishments, and number of households served. Reports shall be submitted by the [Responsible Department] to Commerce and presented to the City Council. VII. Attachments and References Attachment A – Resolution No. 3937 (Authorizing Participation in HB 1406 Program) Attachment B – 1406 Program Guidelines Summary (WA Dept. of Commerce) Attachment C – Sample Application Form and Checklist Attachment D – Reporting Template for Fund Expenditures