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HomeMy WebLinkAbout05/12/2026 04. Distributed at the MeetingActivating Yakima's 1406 Affordable Housing Funds Purpose: Brief overview for City Council consideration Key Issue • Over $900,000 in 1406 affordable housing funds remain unused. • Current eligibility requires projects of 10 housing units or more. • This requirement excludes local nonprofit and small-scale housing providers, including Yakima Habitat for Humanity. Why This Matters • Available funds are not sufficient to attract large multifamily developers. • Smaller, community -based projects are ready but ineligible. • Families continue to face rising repair costs, taxes, and insurance premiums. • Existing affordable homes are at risk due to deferred maintenance. Proposed Solutions City Council consideration of the following adjustments could activate these funds: • Allow flexibility or reduction of the 10-unit minimum requirement • Permit use of 1406 funds for critical home repairs and housing stabilization • Partner with experienced local nonprofits for prompt, accountable deployment Why Home Repair & Stabilization • Preserves existing affordable housing at a lower cost than new construction • Helps low- to moderate -income homeowners remain safely housed • Prevents displacement and future public costs • Aligns with recent Yakima Critical Home Repair Roundtable outcomes Opportunity With modest program adjustments, the City can: • Put currently unused housing funds to immediate use • Support local capacity already serving Yakima residents • Stabilize neighborhoods while long-term development solutions evolve Together, we build homes, community, and hope. Washington State CU'daD[e0Dthe Use Uf1<L06 FU0JS This document provides up|uin'|unguagesummary ofWashington State law governing the use n[KCW 36.22.179 funds, cornmonly referred to as '1406 funds.' It is intended to support local policy discussion and decision -making " 1. VYhai&rC 14(}6 Funds? 1406hunJ originate from a clocurnent-recording surcharge authorized under RCW 36.22.179. These revenues are collected by coonbcs and locally distributed to support homeless housing and affordable housing activities. 11. |(c4oi1'c(',l11ur)ns,i/ujo[Sta(o|.ow State \u* requires that local 1406 funds be used toaccomplish the purposes of the |ozu\ hmo c|csy housing plan adopted pursuant |oChapter 4D4.Laws u[2005 The statute iapurpmao'drivcn.focusing onhousing stability and homelessness prevention oumomex, rather than prescribing specific pr 'cct types or development scales. M. Lo(-8l Uses Washington |mv allows significant local discretion *o long aeexpenditures directly advance housing stability goals. Examples o[allowable uses include: * New housing development and construction • Housing preservation and rehabilitation w Critical home repair and housing stabilization w Rental assistance and housing -related services tied tohousing outcomes * Shelter, transitional housing, and operating support ~ Administrative costs within statutory limits IV. VV|\aiStaic |.Jm'Doos Not RC4uirC RCVVJ6.22.|7odoes not impose the following limitations: w Wominimum number ofhousing units • Norestriction tomulti-family development • Noexclusion ofnonprofit orsingle-family homeownership models • No prohibition on repair -based or preservation programs V. Kc|uVoVcclU Local Pu!/cyUccixlono Local eligibility criteria —such as minimum unit thresholds oreligible activity |imitxionx--urc policy choices made u1the local level. The City Council has authority under state law to revise these criteria, provided expenditures continue to advance affordable housing and homelessness prevention goals. VI. [i(y[uuuCH R:QUe,StedA/h0Qs Council Ask: We respectfully request that the City Council consider directing staff (oreview and recommend adjustments to the 1406 program that would: 1. Allow flexibility or reduction of the current ten -unit minimum project requirement Z. Expand eligible uses to include critical home repair and housing stabilization for low- to moderate -income homeowners l Consider a pilot or phased approach to deploy currently unused funds through experienced local nonprofit partners P,«pmnd6vYakima (tyCouncil consideration Together, we build homes, community, and hope.