Form revised: December 14, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Office of Housing	Maureen Kostyack/5-0986	Amanda Allen/4-8894

Legislation Title:

AN ORDINANCE relating to housing for low-income households, adopting the 2012-2013 Administrative and Financial Plan for 2009 Housing Levy Programs; and adopting or modifying certain policies for use of funds for housing from the 1986 Housing Levy, the 1995 Housing Levy, the 2002 Housing Levy and other sources.

Summary of the Legislation:

This Council Bill adopts the 2012-2013 Administrative and Financial Plan (A & F Plan) for the 2009 Housing Levy, as required by Ordinance 123013.  

Background: (Include a brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable.)

In November 2009, the voters of the City of Seattle approved the levy of property taxes for the purpose of financing and supporting housing for low-income households,  pursuant to Ordinance 123013 (2009 Housing Levy).  The 2009 Housing Levy collects $145 million in property taxes over its seven-year life.  Ordinance 123013 requires the periodic adoption by the City Council of an A & F Plan establishing criteria, guidelines, and requirements for the funded levy programs.  Additionally, the 2012 – 2013 A & F Plan establishes policies for the use of funds derived from the 1986, 1995, and 2002 housing levies. The A & F Plan was developed by the Office of Housing with input from the Oversight Committee for the 2009 Housing Levy and other community members. 

The 2012-2013 A & F Plan replaces the 2010-2011 A & F Plan for the 2009 Housing Levy Programs.  Please refer to Fiscal Note Attachment A for a summary of substantive policy changes included in this new A & F Plan.

Please check one of the following:

__X_ This legislation does not have any financial implications.

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____    This legislation has financial implications. (Please complete all relevant sections that follow.)

Attachment A: Recommended Levy A&F Plan Policy Changes

Attachment A: Recommended 2012-2013 Levy A&F Plan Policy Changes

The following provides a summary of the substantive policy changes in the 2012-2013 A & F Plan:

I.  Rental Housing & Production Program

Rent Increases:  Clarifies the policy on rent increases for over-income tenants to better reflect current regulatory requirements, and moves policy from “Tenant income and rent requirements” section to “Rent increases” section.

Project Monitoring:  Adds language clarifying existing OH procedures.  OH provides annual performance letters summarizing project compliance and performance monitoring.  Failure to respond and resolve any outstanding issues may result in a determination that the borrower is not in good standing on an OH loan and affect future OH funding awards.

II.  Acquisition and Opportunity Loans

Bridge Loans:  Policies for bridge loans funded with previous Levy funds are moved to the Acquisition & Opportunity Loans chapter.  A & O Loan policies are applied to bridge loans, except that bridge loans continue to be limited to a two-year term and housing projects that serve households below 50% of median income. 

III.  Rental Assistance

New Chapter:  Funding for the Levy Rental Assistance program begins in 2012, therefore a new chapter is added containing program funding, goal, objective and policies.