HomeMy WebLinkAbout08/18/2026 09.B. Proposal to expend the Affordable Housing (1406) funds 'V
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.B.
For Meeting of: August 18, 2026
ITEM TITLE: Proposal to expend the Affordable Housing (1406) funds
SUBMITTED BY: Gary Bellew, Assistant City Manager
SUMMARY EXPLANATION:
Council Direction from May 7, 2026:
• Prepare a proposal to expend the Affordable Housing funds
• Review the minimum number of affordable units criteria and the length of the affordability period
for monitoring
The attached presentation provides:
• Interest from Partners
• Review Council Priorities
• Request for Proposals for 1406 Funds
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Safe and Healthy Yakima
RECOMMENDATION: No formal action is required from Council to proceed with preparing a Request for
Proposals for 1406 Funds.
ATTACHMENTS:
1406 Funds Presentation.pdf
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1406 Funds
Affordable Housing Tax Credit
August 18, 2026
Presented by
Gary Ballew, Assistant City Manager
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Purpose of Tonight's Presentation
• Council Direction from May 7, 2026
• Prepare a proposal to expend the Affordable Housing funds
• Review the minimum number of affordable units criteria and the length of
the affordability period for monitoring
• Topics covered tonight:
• 1406 Funds
• Interest from Partners
• Review Council Priorities
• Request for Proposals for 1406 Funds
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1406 Funding
• Construct Affordable Housing
• Acquiring, rehabilitating, or constructing (can be within an existing
structure) affordable or supportive housing (facilities that meet the needs
of people with behavioral health disorders).
• Operations and maintenance costs of affordable or supportive housing.
• Rental assistance to tenants.
• 10% Administrative (allowed)
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1406 Funding History in Yakima
• 2019 — Council adopts Ordinance 2019-020
• Imposes the tax (2020)
• Restates the uses allowed by RCW
• Tax expires twenty years after being imposed (2040)
• Generates $1201000 - $140,000 per year
• Balance of — $1 ,000,000
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Partner Interest
• Habitat for Humanity
• Yakima Housing Authority
• Catholic Charities
• Trouves
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Council Priorities
• Activities that add affordable housing units (construction/rehab)
• Leverages other funding streams and resources (bang for buck)
• Affordable housing to move homeless to housed (reduce
homelessness)
• City's ongoing administrative responsibility (sustainable
budgeting)
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Request for Proposals
• Level of interest drives competitive process
• Only limit on proposals is RCW requirements
• Priorities provide weighting criteria
• Require covenant on property for intended use
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Questions
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