HomeMy WebLinkAboutILA - Franklin Co, Connell, Kahlotus, Mesa, Pasco for Affordable Housing for all Surcharge per SHB 2060 in 2011 346
INTERLOCAL AGREEMENT BETWEEN THE COUNTY OF FRANKLIN AND : THE
CITY OF CONNELL , THE CITY OF KAHLOTUS , THE CITY OF MESA , AND THE
CITY OF PASCO ADMINISTERING FUNDS GENERATED THROUGH THE
AFFORDABLE HOUSING FOR ALL SURCHARGE ,
RCW 36 . 21178
This Interlocal Agreement , hereafter referred to as "AGREEMENT" , is entered into
between Franklin County , a political subdivision of the State of Washington , hereinafter
referred to as " COUNTY" , with its principal offices located at 1016 North 4th Avenue ,
Pasco , Washington , 99301 ; the City of Connell , a municipal corporation with its principal
offices located at 104 E . Adams Street , Connell , Washington 99326 ; the City of
Kahlotus , a municipal corporation with its principal offices located at E . 130 Weston ,
Kahlotus , Washington , 99335 ; the City of Mesa , a municipal corporation with its
principal offices located at 103 Franklin Street , Mesa , Washington 99343 ; and the City
of Pasco , a municipal corporation with its principal offices located at 525 North Third ,
Pasco , Washington , 99301 ; hereinafter collectively referred to as " CITIES " .
WHEREAS , the Washington State Legislature passed Substitute House Bill 2060
( SBH 2060 ) during the 57th Legislative session which became effective on June
131 2002 and was codified as RCW 36022 . 178 ;
WHEREAS , RCW 36 . 22 . 178 directs a ten dollar surcharge , named the
"Affordable Housing for All Surcharge , " ( hereinafter "the Surcharge " ) on certain
documents recorded with the County Auditors office for the purpose of providing
funds for affordable low- income housing ;
WHEREAS , RCW 36 . 22 . 178 directs that of the funds collected under the
Surcharge , five percent ( 5 % ) may be retained by the COUNTY to compensate for
the collection , administration and local distribution of the funds , forty percent
(40 % ) of the remaining shall be remitted to the Washington State Department of
Commerce and the remaining 60 percent ( 60 % ) be retained by the COUNTY ;
WHEREAS , the portion of the Surcharge retained by the COUNTY shall be
allocated to eligible housing activities that serve extremely low and very low-
income households in the COUNTY and the CITIES according to an Interlocal
Agreement between the COUNTY and the CITIES consistent with county wide
and local housing needs and policies ;
WHEREAS , the parties are authorized to enter into such agreements by virtue of
Chapter 39 . 34 RCW , the Interlocal Cooperation Act ,
WHEREAS , this Agreement is entered into by the COUNTY under the authority
of RCW 36 . 32 . 120 , RCW 36 . 22 . 178 , and Chapter 43 . 185C RCW ; and
WHEREAS this Agreement is entered into by the CITIES under authority of RCW
36 . 22 . 178 and Chapter 43 . 185C RCW.
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NOW , THEREFORE , in consideration of the terms and conditions contained
herein , it is mutually agreed by and between the COUNTY and CITIES as
follows :
Sec . 1 . Purpose .
The purpose of this Agreement shall be to provide for the collection , administration , and
allocation of the COUNTY retained portions of the Affordable Housing for All Surcharge ,
RCW 3602241786
Sec . 2 . Parties .
The parties to this Agreement shall be Franklin County , the City of Connell , the City of
Kahlotus , the City of Mesa , and the City of Pasco .
Sec . 3 . Term :
This Agreement shall be for five ( 5 ) years from the date of execution unless any party
elects to terminate the Agreement pursuant to the termination clause of this Agreement .
Renewal of this Agreement shall be by separate written agreement of the parties .
Sec 4 . Administration .
Recommendations for the allocation of COUNTY retained portions of the Surcharge
shall be made by the Surcharge Oversight Committee ( hereinafter " Committee ") . All
Committee members shall be elected or appointed officials , directors or employees of
the respective government entity which they represent . Each member shall serve at the
pleasure of the legislative body appointing them to the position , and their terms shall not
be limited or restricted in any other fashion . The Committee shall discharge its duties
pursuant to the terms of the Operating Bylaws attached as Exhibit A and hereby
adopted by reference . The members of the Committee may change provisions of the
Operating Bylaws by majority vote so long as such changes are not contrary to law or to
this Interlocal Agreement . All recommendations of the Committee shall be presented by
the Administrator of the Benton and Franklin Counties Department of Human Services
( hereinafter " DHS ") to the Franklin County Board of Commissioners , who shall , by
majority vote , make final funding decisions . If the Franklin County Board of
Commissioners votes in a manner contrary to recommendations by the Committee , then
findings , on the record , shall be made to support such a contrary vote .
(a ) The Committee shall be composed of the nine ( 9 ) representatives to be
appointed by the Cities and Franklin County . More specifically :
1 . The County Administrator for Franklin County or designee ,
2 . The City of Pasco shall appoint a minimum of one ( 1 ) up to a
maximum of four (4 ) representatives ,
3 . The Cities of Connell , Kahlotus , and Mesa shall each appoint
one ( 1 ) representative each to the Committee for a total of three
(3) ,
4 . The Administrator of DSHS or designee , as a non -voting
member ex officio .
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The DHS shall be responsible for the administrative aspects of managing the COUNTY
retained portions of the Surcharge . These responsibilities shall include any and all
tasks associated with the funding source up to and including but not limited to :
managing the Interlocal Agreement , application , and Request for Proposals ( RFP )
processes , providing technical assistance to interested applicants , administrative
support to the Oversight Committee during the process of applicant screening and
selection , administration of contracts necessary for selected projects , and contract
compliance oversight and monitoring for selected projects . The initial 5 % of the
surcharge permitted to be retained by COUNTY for administrative purposes shall be
allocated to DHS to help defray its expenses , including salaries of employees ,
necessary in carrying out its responsibilities under this paragraph .
All awarded funds shall be disbursed pursuant to an appropriate contract between the
award recipient and COUNTY . Such a contract shall ensure that the awarded funds are
used solely for purposes permitted by RCW 36 . 22 . 178 and shall provide mechanisms
for COUNTY to recover the awarded funds if they are misused .
Sec . 5 . No Separate entity or Joint Property : This Agreement does not provide for
or authorize any of the following :
a , the acquisition , holding , or disposal of property other than the funds
collected hereunder ;
b , the financing of any joint or cooperative undertaking ;
C , the creation of any separate legal entity ;
do the creation of any right or privilege which may be claimed by any third
party not party this Agreement ;
Sec . 6 . Hold Harmless/ Indemnification : Each party agrees to be responsible for ,
and assume liability for , its own wrongful and negligent acts or omissions , or those of its
officers , agents or employees to the fullest extent allowed by law , and agrees to hold
harmless , indemnify , and defend the other parties from any such liability . In the case of
negligence of more than one party , any damages allowed shall be levied in proportion to
the percentage of negligence attributable to each party ; and each party shall have the
right to seek contribution from each of the other parties in proportion to the percentage
of negligence attributable to each of the other parties .
Sec 7 . Governing Law and Venue : This Agreement has been and shall be construed
as having been entered into and delivered within the State of Washington , and it is
mutually understood and agreed by each signatory party hereto that this Agreement
shall be governed by the laws of the State of Washington and any applicable Federal
laws and regulations both as to interpretation and performance . Any action hereunder
must be brought in the Superior Court of Washington in and for the County of Franklin
unless either party determines that a Federal forum is appropriate to the issues raised .
Sec . 8 . Termination : Notwithstanding any other provision of this Agreement , any party
may terminate this Agreement effective January 1st of any given year by giving written
notice of intent to terminate by July 1st of the preceding year , with the termination to
become effective no earlier than January 1st of the following year . Such notice of
termination shall be by appropriate action of the elected governing body of the
terminating party and shall be provided to all parties subject to this Agreement . A party
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may not terminate this Agreement if doing so will be contrary to State law at the time of
the intended termination , or if terminating will cause the signatories to this Agreement ,
or any one of them , to be in violation of State law .
Sec . 9 . Notice : Any formal notice or communication to be given under this Agreement
shall be deemed properly given , if personally delivered , of if mailed postage prepaid and
addressed :
To : Franklin County To : City of Mesa
Attn : County Administrator 103 Franklin Street
1016 North 4t" Avenue Post Office Box 146
Pasco , Washington 99301 Mesa , Washington 99343
To : City of Connell To : City of Pasco
104 E . Adams Street 525 North Third
Post Office Box 1200 Pasco , Washington 99301
Connell , Washington 99326
To : City of Kahlotus
E . 130 Weston
Post Office Box 100
Kahlotus , Washington 99335
Sec . 10 . No Agency . The parties and their employees or agents performing under this
Agreement are not deemed to be employees , officers , or agents of the other parties to
this Agreement .
Sec . 11 . Record Keeping : Records shall be kept by the Benton and Franklin Counties
Department of Human Services , sufficient to document all activities , actions and
decisions made by the parties pursuant to this Agreement . This Agreement does not
impose any obligation on individual parties to keep any records beyond what they are
required to keep by law .
Sec . 12 . Assignment : No parties to this Agreement shall have the right to transfer or
assign , in whole or in part , any or all of its obligations and rights hereunder.
Sec . 13 . Amendments or Modifications : This Agreement may be amended , altered ,
or changed in any manner by the mutual written consent of all parties . If any proposed
amendment cannot be agreed to by all of the parties , then the proposed amendment
shall not be made and the parties shall conduct their business pursuant to this
Agreement as if such proposed amendment was not proposed .
Sec . 14 . Waiver : No waiver by any party of any term or condition of this Agreement
shall be deemed or construed to constitute a waiver of any other term or condition or of
any subsequent breach , whether of the same or a different provision of this Agreement .
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Sec . 15 . Severability : If any of the provisions contained in this Agreement are held
illegal , invalid , or unenforceable , the remaining provisions shall continue in full force and
effect .
Sec . 16 , Filing : Copies of this Agreement shall be filed with the Franklin County
Auditor and the Secretary of State after execution of this Agreement by all parties .
Sec . 17 . Counterparts : This Agreement may be executed by facsimile and in any
number of current parts and signature pages hereof with the same affect as if all parties
to this Agreement had all signed the same document . All executed current parts shall be
construed together , and shall , together with the text of this Agreement , constitute one
and the same instrument .
Sec . 18 . Effective : This Agreement shall become effective upon approval by all of the
parties and recording with the Franklin County Auditor .
Dated this - day of a
j c: , 20111
BOARD OF COMMISSIONERS , FRANKLIN COUNTY , WASHINGTON
Chair
Member
Member
Attest : Approved as to Form :
Clerk of e Board De Pro ecuting Attorney
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CITY OF CONNELL
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ary Walton , Mayor
Attest :
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Approved as t Form :
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CM( OF KAHLOTUS
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Approved as to Fore :
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DOF MESA
David Ferguson , Mayor
Attest :
. � Title :
Approved as to Form :
Title :
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CITY OF PASCO
X - F
Matt Watkins, Mayor
Attest,
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Apprc to Form
EXHIBIT A to SHD 2060 - Interlocal Agreement.
Operating Bylaws for Interlocal Agreement
Franklin County
Oversight Committee
AFFORDABLE HOUSING FOR ALL FUND
Introduction
The provisions of Substitute House Bill 2060 became law in Washington State on June 13 , 2002
and was amended in 2007 by House Bill 1359 . This law , codified as RCW 36 . 22 . 178 , created
a document recording surcharge ( hereinafter " Surcharge" ) on certain documents to be utilized
for low- income housing for those individuals with incomes at or below fifty percent (50 % ) of the
average area median income . E2SHB 1359 added language to the legislation that a priority for
these funds be given to eligible housing activities that serve extremely low- income households
with income at or below thirty percent (30 % ) of the area median income . The SHB 2060 fund
enables housing to be affordable to a broader range of very low- income households than would
be possible without such subsidies . Administration of the fund is shared between local
governments and the State . The local portion of 2060 funds is to be administered pursuant to
an Interlocal Agreement between the County and the Cities within the County and is entitled the
"Affordable Housing for All Fund " ( hereinafter the " Housing Fund " ) .
A. Statutory Guidelines for Fund Dispersal
RCW 36 . 22 . 178 , as amended by House Bill 1359 (2007 ) , provides the following parameters on
the allocation of that portion of the Surcharge which is retained by the County :
" (2) The funds generated by this surcharge will be retained by the county and be
deposited into a fund that must be used by the county and its cities and towns for eligible
housing activities as described in this subsection that serve very low- income households
with incomes at or below fifty percent of the area median income . The portion of the
surcharge retained by a county shall be allocated to eligible housing activities that serve
extremely low and very low- income households in the county and the cities within the
county according to an interlocal agreement between the county and the cities within the
county consistent with countywide and local housing needs and policies . A priority must
be given to eligible housing activities that serve extremely low- income households with
incomes at or below thirty percent of the area median income . Eligible housing activities
to be funded by these county funds are limited to :
( a ) Acquisition , construction , or rehabilitation of housing projects or units within housing
projects that are affordable to very Cow- income households with incomes at or below fifty
percent of the area median income , including units for homeownership , rental units ,
seasonal and permanent farm worker housing units , 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 of the area median
rJtachmei t to SC l �B 2060
lnterlocal Agreement
i 1 , 11 lin Couny
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 of the area median income , 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 . "
Bs Fund Availability
On an annual basis the Benton and Franklin Counties Department of Human Services
( DHS ) shall on behalf of the Oversight Committee ( hereinafter " Committee) , publish a
Request for Proposals ( RFP ) through its established methods . This notice will set forth the
amount of funds available by category ; the duration of funds to be awarded or distributed ;
the deadline for submission of funding applications ; and any other pertinent information
related to the competitive process and or decisions .
+:• Applications will be distributed to all parties requesting them and be collected for
consideration of funding awards .
The application format for funding from the Housing Fund shall be the same as is used by
the State of Washington , Housing Trust Fund or subsequently modified version ( s )
containing the same detailed information .
C . Eligible Recipients
❖ Eligible recipients of the funding from the Housing Fund shall be certified non - profit agencies
or providers of affordable housing , Cities , Towns , the County , and for- profit developers .
D . Housing Fund Distribution
•o• The funds shall be included in the annual NOFA process addressing the categories of need
enumerated herein :
1 . The acquisition , rehabilitation and/or new construction of housing projects or
units within housing projects that serve clients who have incomes at or below
50 % of the Median income , based on current HUD income guidelines for the
Benton and Franklin Counties - Metropolitan Statistical Area ( {VISA) .
2 . Operating and maintenance costs for housing that is in compliance with RCW
36 . 22 . 178 . [Applicants shall be strongly encouraged to apply to the Washington
State Department of Commerce for these dedicated funds if the project is
submitting an application to the Housing Trust Fund as well as for local funds . ]
Exhibii A 2
At I : Chn-ilcI i ' to %`D Lov .,
Interloeal Agreemer ;
Frank. hn, CoL, n it•1
3 . Rental Assistance vouchers for housing projects or units within housing projects
that are at or below 50 % of median based on the current HUD income guidelines
for the Benton and Franklin Counties MSA and administered by a local housing
authority or other local organization that has an existing or newly created HUD
recognized rental assistance voucher program consistent with HUD Section 8
unless the project is serving homeless persons, or persons at risk for
homelessness, or households below thirty percent (30 %) of the area median
income ; and
4 . Operating costs for emergency shelters and licensed overnight
youth shelters that are in compliance with RCW 36 . 22 . 178 and WAC 388 - 160 ,
E . Availability of Applications . (Tentative Program Dates)
[REM
Mail
�VIEW
U
Applications Available : August
Applications Due : October
Ap lication Review October
Committee Review of Successful Applicants November
Decisions announced by : December
Funds Available** - January**
(After Contracts/Agreements have been approved and signed) .
F . Reporting Requirements .
Recipients of the funding from the Surcharge shall provide quarterly updates and annual reports
detailing their use of funds on a format acceptable to the Benton and Franklin Counties
Department of Human Services . The Department shall in turn provide a written report detailing
the uses to which the funds were put and disseminate the same to members of the Committee
on an annual basis , or as requested by Committee members .
G . Terms and Conditions of Funding :
Funding generally should not be awarded for predevelopment funding purposes except
where a majority of the committee finds special and compelling reasons why
predevelopment funding is of particular benefit in a particular case . In such cases , funding
shall not be made unless a majority of the committee enters or adopts specific factual
findings that demonstrate the benefits presented by the predevelopment funding . Such
factual findings shall be retained in the official records of Committee proceedings kept on
behalf of the Committee by DHS , and shall be available for public inspection or copying
pursuant to the Public Records Act , RCW 42 . 56 et seq , as then existing .
Funding commitments from the Housing Fund can be made but commitments from other
sources shall be obtained prior to disbursement of funds from the Housing Fund . Applicants
must obtain funding commitments within 2 years , unless the Steering Committee elects to
waive this requirement having been petitioned by the applicant due to a financially minor
project proposal .
ExibtA 3
M—Leriocal Agl Feement
F ra kl n Couniy
❖ Terms and conditions of funding , consistent with state and federal laws shall be
implemented into funding contracts which shall , at a minimum , state the allowable purposes
for the funding , provide for complete cooperation by the recipient with oversight and audits
by the Benton and Franklin Counties DHS , repayment terms , if any , and applicable time
lines and time frames for use of funds . Such contracts shall be by and between Franklin
County and the recipient and no funds may be disbursed prior to the execution of such
contracts . For purposes of this provision , the incurring of costs by a potential recipient , with
the expectation that such costs will be defrayed by funding , constitutes disbursement of
funds .
a:- All projects shall be evaluated for the ability to repay the investment of the Affordable
Housing funding . The evaluation shall be based on the information provided in the
application such as overall agency budget , amount of matching or leveraged funds , and
amount of funding requested versus total project development costs . Projects shall not rely
solely upon Affordable Housing funds for completion .
- Funding applicants shall be thoroughly reviewed and screened by the Committee with the
assistance of DHS , and factors , bearing on the applicant ' s suitability for funding of this
nature , shall be considered in addition to the amount of funding and the nature of the
project . Information necessary to consider such factors may be obtained directly from
funding applicants by way of application forms or similar documents , or by other such
background investigation as Committee members see fit . Such factors shall include , but
need not be limited to :
•:- Experience and capacity of applicant for affordable housing projects ;
•:- Whether or not applicant has defaulted on any provision of affordable housing related
loans or grants in the past , including paying " opt out" or " buy out'' penalties to avoid a
default in any project in order to avoid keeping such project " affordable" for a given
period of time . Such applicants generally should be disqualified, absent
compelling reasons why they are the only appropriate funding recipient for a
necessary project.
The fiscal strength of the applicant to include a review of recent fiscal audits , ability of
the agency to leverage additional funds , and creditworthiness ;
•3 Reputation , experience and fiscal strength of any major partners ;
- Terms and conditions of funding shall be reduced to a written contract , to be executed
between Benton and Franklin DHS on behalf of Franklin County and the funding recipient .
Such written contract shall , at a minimum , address the following :
�:- Minimum period of time which the funding recipient must maintain the anticipated project
in " affordable" status . This period of time shall be determined by the Committee on a
project by project basis with guidance and recommendations provided by the director of
Benton and Franklin DHS or designee ;
Time frame for construction/rehabilitation and subsequent occupancy ;
L_^ hilblt f; 4
A Lachnie . �i
o SNB 2060
! nf • 1iocal agreement
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•o-6 Number and type of units to be made available as " affordable " units ;
•o-• On a project-by-project basis , the Committee shall determine the best funding vehicle to
utilize so as to conserve the renewability of the funding , discourage misuse of funds ,
encourage geographic and jurisdictional equity , and abide by the intent of the authorizing
statute . These vehicles include , but are not limited to : 0 % interest loans , grants , and
providing matching funds to qualify an applicant for funding from another government or
private source ;
H . Measurement System for Allocating revenue :
The funding available in each round shall be determined by the amount collected in the fund on
the month ending prior to application availability less any prior funding commitments .
1 . Default by !'lousing Fund Recipient :
All funding contracts shall have a mechanism by which Franklin County may recover any
misappropriated or misused funds , along with an agreed upon amount of liquidated damages to
compensate for consequential damages which may include the opportunity cost and time value
of the money misappropriated or misused .
K . Geographic Equity :
The Committee shall be responsible for making certain that funds are distributed in a manner
that provides long -term geographic equity . The overall intent is to insure over time that all areas
of Franklin County receive appropriate levels of funding through this initiative where possible .
L . Subsidy Per [Unit :
The amount of funding per housing unit shall be set by the Benton and Franklin County
Department of Human Services at a rate consistent with rates employed by other similar fund
sources within the surrounding geographic area and best available information from local and
federal resources . A unit shall be defined as a single -family home or a single apartment of any
size in a multi -family complex . For example , a single-family duplex would be considered two (2 )
units .
M . Project Monitoring :
The Benton and Franklin Counties Department of Human Services shall monitor all projects and
associated funding contracts for compliance with the funding terms and conditions
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Atiachtmeni to SHE 2050
( nterlocal Agreement
Franklin Counly