ORDINANCE NO. 728
AN ORDINANCE OF THE UNIVERSITY PLACE CITY COUNCIL AUTHORIZING THE MAXIMUM CAPACITY OF THE TAX AUTHORIZED UNDER THE PROVISIONS OF RCW 82.14.540; ADOPTING A NEW CHAPTER 4.90 OF THE UNIVERSITY PLACE MUNICIPAL CODE; CREATING A NEW SECTION 4.40.330 UPMC, AND ADOPTING IMPLEMENTING PROVISIONS; RELATING TO AFFORDABLE AND SUPPORTIVE HOUSING
WHEREAS, in 2019, Washington State enacted Substitute House Bill 1406 (SHB 1406 also referred to herein as Chapter 338, Laws of 2019), now codified as RCW 82.14.540, a revenue sharing program with local governments for affordable housing which is intended to encourage investments in affordable and/or supportive housing; and
WHEREAS, the University Place City Council, in accordance with RCW 82.14.540, has adopted a resolution of intent to adopt legislation to authorize the maximum capacity of a sales and use tax within six months of the effective date of Chapter 338, Laws of 2019; and
WHEREAS, to collect the tax, a city must adopt an ordinance authorizing the tax within one year of the effective date of the bill, or July 28, 2020; and
WHEREAS, the City Council has determined it is in the best interest of the City and its residents to begin implementation of the tax and then later determine the process for the distribution of the funds collected by subsequent legislation of the City Council to meet the requirements of RCW 82.14.540;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF UNIVERSITY PLACE, WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Creation of Chapter 4.90 UPMC. A new Chapter 4.90 of the University Place Municipal Code, "Sales and Use Tax for Affordable Housing," is hereby adopted as shown in Exhibit A, which is attached hereto and incorporated herein by reference.
Section 2. Creation of Section 4.40.330 UPMC. A new section 4.40.330 of the University Place Municipal Code entitled “Affordable Housing Sales Tax Fund,” is created to read as follows:
A. There is hereby established a special revenue fund, to be known as the "Affordable Housing Sales Tax Fund," into which shall be deposited all monies received from a portion of sales and use taxes otherwise required to be collected and paid to the department of revenue pursuant RCW 82.14.540.
B. This fund has been established to receive that portion of sales and use tax credited back to the city for use in the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of new units of affordable or supportive housing, and if eligible, for providing rental assistance to tenants.
C. Any unexpended funds remaining in the affordable housing sales tax fund at the end of a budget period shall not be transferred to the general fund or otherwise lapse, but funds shall be carried forward from year to year until expended for a purpose set forth in subsection B of this section.
Section 3. Authorization to Contract with Department of Revenue. The City Manager or designee is hereby requested to contract with the Washington State Department of Revenue to collect the local sales and use tax established by RCW 82.14.540 and this Ordinance.
Section 4. Implementation Authorized. City departments are requested to take all necessary steps to implement this Ordinance as soon as possible in accordance with RCW 82.14.055. The City Clerk shall forthwith transmit a copy of this adopted Ordinance to the Washington State Department of Revenue.
Section 5. Severability. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application of the provision to other persons or circumstances shall not be affected.
Section 6. Effective Date. This Ordinance shall be in full force and effect five (5) days after final passage.
PASSED BY THE CITY COUNCIL ON JUNE 1, 2020.
Caroline Belleci, Mayor
Emelita J. Genetia, City Clerk
APPROVED AS TO FORM:
Matthew S. Kaser, City Attorney
Effective Date: 06/08/20