HomeMy WebLinkAboutres2023-043Whatcom County
Agenda Bill Report
File Number: AB2023-696
COUNTY COURTHOUSE
311 Grand Avenue, Ste #105
Bellingham, WA 98225-4038
(360) 778-5010
File ID: AB2023-696 Version: 1 Status: Substitute Approved
File Created: 10/17/2023 Entered by: CHalka@co.whatcom.wa.us
Department: Council Office File Type: Resolution
Assigned to: Council Committee of the Whole Final Action: 10/24/2023
Agenda Date: 10/24/2023 Enactment #: RES 2023-043
Related Files:
Primary Contact Email: chalka@co.whatcom.wa.us
TITLE FOR AGENDA ITEM:
Resolution supporting the use of Economic Development Investment (EDI) funds for affordable housing
SUMMARY STATEMENT OR LEGAL NOTICE LANGUAGE:
Resolution supporting the use of Economic Development Investment (EDI) funds for affordable housing
HISTORY OF LEGISLATIVE FILE
Date: Acting Body: Action: Sent To:
10/24/2023 Council Committee of the Whole RECOMMENDED FOR
APPROVAL
Aye: 7 Buchanan, Byrd, Donovan, Elenbaas, Frazey, Galloway, and Kershner
Nay: 0
10/24/2023 Council SUBSTITUTE APPROVED
Aye: 7 Buchanan, Byrd, Donovan, Elenbaas, Frazey, Galloway, and Kershner
Nay: 0
Attachments: Proposed Resolution, Substitute Resolution, Letter from Sustainable Connections
Whatcom County Page 1 Printed on 1012512023
1 PROPOSED BY: GALLOWAY, BUCHANAN
2 INTRODUCTION DATE: OCTOBER 24, 2023
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5 RESOLUTION NO. 2023 - 043
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8 SUPPORTING THE USE OF ECONOMIC DEVELOPMENT INVESTMENT (EDI) FUNDS FOR
9 AFFORDABLE HOUSING
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13 WHEREAS, housing is an important element of economic development, especially
14 workforce housing that supports business recruitment and retention; and
15
16 WHEREAS, a lack of available and affordable housing for all economic segments of our
17 community remains a significant challenge in Whatcom County; and
18
19 WHEREAS, the City of Bellingham estimates that less than 30% of Whatcom County
20 housing is affordable to a household earning the median family income, and a more balanced
21 proportion is around 50%; and
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23 WHEREAS, the Washington State Department of Commerce projects Whatcom County
24 will need to build 34,377 new homes by the year 2044, 18,053 of which need to be affordable to
25 households earning less than 50% of Area Median Income; and
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27 WHEREAS, Whatcom County needs to take a more holistic, system -wide approach to
28 our community's housing issues, addressing housing availability and affordability through both
29 a health and human services approach as well as a land use and planning approach; and
30
31 WHEREAS, on January 10, 2023, the Whatcom County Business and Commerce
32 Advisory Committee transmitted their proposal to increase access to housing for all income
33 levels, which included recommendations to:
34 - Reduce the complexity and the cost of compliance of code,
35 - Prioritize density in existing city boundaries and urban growth areas while supporting
36 limited annexations,
37 - Provide incentives for permanently affordable home ownership and rentals for occupants
38 whose incomes range from 50% to 150% of area median income; and
39
40 WHEREAS, on August 8, 2023, the Whatcom County Council approved Resolution 2023-020
41 affirming the housing affordability and homelessness are a public health crisis requiring
42 systemwide actions; and
43
44 WHEREAS, the Economic Development Investment (EDI) Board was created to make
45 recommendations to the Whatcom County Council to invest in economic development and public
46 facilities consistent with RCW 82.14.370; and
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49 WHEREAS, RCW 82.14.370 authorizes Whatcom County to retain a portion of sales and
50 use tax to finance public facilities, including affordable housing infrastructure or facilities, with
51 the goal of improving the economy by stimulating and creating ongoing private sector jobs; and
52
53 WHEREAS, RCW 82.14.370 defines "Affordable workforce housing infrastructure or
54 facilities" as housing infrastructure or facilities that a qualifying provider uses for housing for a
1 single person, family, or unrelated persons living together whose income is no more than 120
2 percent of the median income, adjusted for housing size, for the county where the housing is
3 located; and
4
5 WHEREAS, RCW 82.14.370 defines "Qualifying provider" as a nonprofit entity as defined
6 in RCW 84.36.560, a nonprofit entity or qualified cooperative association as defined in
7 RCW 84.36.049, a housing authority created under RCW 35.82.030 or 35.82.300, a public
8 corporation established under RCW 35.21.660 or 35.21.730, or a county or municipal
9 corporation; and
10
11 WHEREAS, the Whatcom County Executive manages the EDI Program, which makes
12 grants and low interest loans to assist in financing public facilities required by businesses to
13 create or retain jobs; and
14
15 WHEREAS, the Whatcom County Council makes the final loan and grant approval
16 decisions for all EDI projects; and
17
18 WHEREAS, the EDI Board makes recommendations aligned with the following goals to:
19 1. Increase the number of family wage jobs available to the citizens of the county,
20 2. Retain existing businesses within the county,
21 3. Facilitate the expansion of existing businesses,
22 4. Attract new businesses to Whatcom County, and
23 5. Sustain the EDI Program through repayment of EDI loans; and
24
25 WHEREAS, Whatcom County's 2022-2026 Comprehensive Economic Development
26 Strategy (CEDS) aims to strengthen and sustain the regional economy through the retention
27 and creation of living -wage jobs and to foster a stable and diversified regional economy; and
28
29 WHEREAS, the CEDS identifies housing availability and affordability as high priority
30 issues affecting Whatcom County's ability to grow economically; and
31
32 WHEREAS, the CEDS identifies an objective to work with local jurisdictions and service
33 providers to inform and assist with the development of affordable and available housing choices
34 for all income levels in Whatcom County; and
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WHEREAS, the CEDE identifies a strategy to promote and support immediate solutions
to the housing crisis, including
1. Support and promote the urgent need for affordable housing for workers, in areas
near services, throughout Whatcom County.
2. Support efforts to address houselessness issues throughout Whatcom County.
3. Support and advocate for local businesses impacted by the housing crises.
4. Support and promote a diverse array of housing solutions, housing choice, and
affordable housing types that address the housing crisis.
5. Support housing development and modular construction companies that develop
innovative and environmentally sustainable housing solutions.
6. Support increased mixed -use zoning in order to encourage different housing choices
and creating different yet sustainable and innovative live -work spaces.
7. Support nonprofits that work on innovative housing solutions.
8. Participate on boards and committees working to address the housing crisis.
9. Collaborate with the Whatcom Housing Alliance to conduct a workforce housing
feasibility study; and
WHEREAS, Substitute House Bill 1267 amended RCW 82.14.370 in May 2023, to extend
the authorization for the sales and use tax for public facilities in rural counties through
December 31, 2054; and
WHEREAS, Whatcom County Administrative Services projects an estimated EDI program
cash balance of $20,371,669 by December 31, 2023 with an additional $9,058,926 in
outstanding loan repayments; and; and
WHEREAS, the EDI fund is expected to generate $6,034,610 in revenue in 2024; and
WHEREAS, since the inception of Whatcom County's Homes Affordable for the Workforce
(HAFTW) EDI loan program in 2011, the EDI program has assisted in the construction of 139
new homes through $2.54million in low -interest loans; and
WHEREAS, Whatcom County needs to commit additional local funds in order to keep
pace with the increasing community need.
1 NOW, THEREFORE, BE IT RESOLVED that the Whatcom County Council supports
2 increasing the use of Economic Development Investment (EDI) funds for housing affordability
3 efforts as authorized in RCW 82.14.370; and
4
5 BE IT FURTHER RESOLVED that the Whatcom County Council supports making housing
6 affordability and homelessness a top legislative priority and working with State Legislators to
7 advocate for any technical fixes or clarification bills necessary to maximize the County's ability
8 to use EDI funding for housing affordability efforts; and
9
10 BE IT FINALLY RESOLVED that the Whatcom County Council recommends that the EDI
11 Board:
12 1. Consider a proactive and planned investment strategy for fund balance and revolving
13 loan repayments, inclusive of affordable and workforce housing,
14 2. Consider prioritizing affordable and workforce housing projects, up to 120 percent of area
15 median income, for economic development,
16 3. Consult community and issue a recommendation to Council for dedicating a percentage
17 of the EDI fund balance and a percentage of ongoing revenues to contribute toward
18 housing affordability projects as allowed by state law,
19 4. Updates guidelines and an application process to request the use of EDI funds for
20 affordable and workforce housing projects,
21 5. Propose updates to Board membership to promote more diverse representation amongst
22 economic development sectors, including affordable and workforce housing,
23 6. Reports to the County Council by December 31, 2024 on recent program changes,
24 proposed program considerations, and recommendations related to the EDI program's
25 role in ho4syn� affordability investments.
26 `\
27 gpl���faic,"day of October , 2023.
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29 A, WHATCOM COUNTY COUNCIL
30 TTE�s - � TCOM O TY, ASHINGTON
4
31 _ 4
32
33 Dana ,Brown-Daviq. Ief�CC�i..' he Council Ba cha an, Council Chair
34
35 APPROV�p AS�170 ®RM: ='
36
37 Karen Frak0 '(11bw;email'16/17/2023)
38
39 Civil Deputy Prosecutor