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We are thrilled to announce that in February 2024, the City of SeaTac officially joined as SKHHP’s newest member, and we couldn’t be happier! SeaTac will join forces with South King County jurisdictions to expand and preserve affordable housing in the subregion. Along with bringing their unique knowledge and expertise, SeaTac authorized a $300,000 contribution towards the 2024 funding round of the SKHHP Housing Capital Fund. We know that as an organized, collaborative we are stronger together and can shape the future of housing in South King County when we’re united.
Please help us in welcoming the City of SeaTac to SKHHP!
In 2023, the City of Federal Way began “transforming a suburban, auto-centric area of Federal Way into a distinct, vibrant, and walkable downtown.”[1] The City requested proposals to prepare a Town Center Master Development Plan for City-owned property to revitalize the area. During the review of proposals, the City forecasted that private development could be catalyzed with public improvements estimated to cost between $72 million and $170 million.[2] Hoping to fund these improvements, the City chose to implement Tax Increment Financing (TIF).
So, what is TIF? A TIF is an economic development tool that allows increased property tax revenue from private development to be used "up front" to invest in infrastructure to support growth.
A TIF is created by an ordinance that designates a Tax Increment Area (TIA), sometimes known as a TIF district, and identifies all public improvements necessary to support the private development. A base value is established inside a TIA, which is the taxable value of properties inside the TIA at the time it is created. This will remain the base value for a maximum of 25 years. The increment is the district's valuation minus the established base value in that tax year and is always a non-negative number. When the property owner pays property taxes to the county, the county sends the increment value back to the sponsoring jurisdiction for investment within the TIA.
TIF funds can be spent in two ways: 1) as public improvements identified in the establishing ordinance that make private development possible – this may include funding community gathering areas, improvements to support public safety, enhancements for non-motorized connections, and gateway features to create a destination for the community; or 2) as expenses that do not have a direct impact on the private development including purchasing, rehabilitating, retrofitting for energy improvements, and constructing to create or preserve long-term affordable housing.
Implementing a TIF district involves a multi-step process that can take time. Due to the lag in tax collection, it can be up to a year and a half before a jurisdiction sees funding. The State Treasurer is also required to do a project analysis. The requirements for the project analysis were modified by the State Legislature in 2024 and an assessment of any impacts to local fire services, public hospital services and emergency medical services, and any other junior taxing districts in the TIA must be completed. This analysis also requires the identification of any mitigation necessary for the related taxing districts. If the jurisdictions cannot agree on mitigation plans on their own, the Treasurer will enter arbitration to determine an appropriate plan. The requirements for public noticing in advance of adopting a TIF were also updated to ensure community awareness.
The City of Federal Way’s TIA boundary includes 233.7 acres and is generally bordered by Interstate 5 to the East, South 312th Street to the North, Highway 99 to the West, and South 330th Street to the South. With 130 tax lots within the proposed TIA boundary, the combined appraised value is $216,417,300, and the assessed value is $195,802,900 for the tax year 2023. On April 16, 2024, the City adopted Ordinance 24-985 designating the TIA to take effect on June 1, 2024. Based on this timing, the first year the proposed TIA would be eligible for tax allocation revenues is 2025. Annual tax allocation revenues are expected to be $34,533 in 2025 and increase to over $7.1 million in its final year in 2049. Total TIF revenue over 25 years is expected to equal $68.9 million. While additional sources may be required, the TIF is expected to provide significant funding to support the planned revitalization if established.[3]
Visit their website to learn more about the City of Federal Way's TIF plans. To discover more about Tax Increment Financing, you can find a presentation by Morgan Shook, Partner/Senior Policy Advisory at ECOnorthwest, to the SKHHP Executive Board on our YouTube channel.
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South King County is getting a major boost for affordable housing. Thanks to final approval from our member cities, SKHHP is awarding $5,747,306 from the 2023 Housing Capital Fund. Last year's funding is our biggest yet, and it includes our first-ever project focused on preserving existing affordable housing.
We can't wait for you to learn more about these exciting projects and the amazing sponsors behind them. And stay tuned – we’re eager to see what innovative applications come in for the 2024 Housing Capital Fund!
TWG – Pandion at Star Lake
Pandion at Star Lake is a partnership between TWG Development and Vision House. Pandion at Star Lake is a multifamily rental, mixed-use project consisting of 168 affordable housing units for households earning between 30%-60% area median income (AMI) in Kent, located adjacent to the Kent/Star Lake Link light rail station. The project will include ground floor commercial space consisting of an early learning center for low-income children and other non-profit tenants. SKHHP awarded TWG $1,170,000 to support the construction of the project.
LIHI – Skyway Affordable Housing & Early Learning Center
Skyway Affordable Housing and Early Learning Center is a multifamily rental project in Unincorporated King County. The project will provide 55 affordable housing units for households earning between 30%-50% AMI, with 42 units set-aside for households transitioning out of homelessness. An early learning center will be located on the ground floor of the building, featuring four classrooms to accommodate up to 80 children, a parent resource room, and offices. SKHHP awarded LIHI $2,800,000 to support the construction of the project.
Mercy Housing NW - Kent Multicultural Village
Kent Multicultural Village is a 199-unit multifamily rental project in Kent adjacent to the future Kent Des Moines Link light rail station opening in 2026. The project will support households earning 30%-80% AMI with a 20% set-aside (39 units) for households with an intellectual and/or developmental disability (I/DD) with onsite supportive services. The project is a partnership between Mercy Housing NW and Open Doors for Multicultural Families, who will support the I/DD households and relocate their headquarters to the property. SKHHP awarded Mercy Housing NW $1,000,000 to support the construction of the project.
Multi-Service Center – Victorian Place II
Victorian Place II is a multifamily, preservation 20-unit rental project in Des Moines. Since 1996, the non-profit Multi-Service Center has owned the two adjacent buildings that comprise the project, which includes five units for households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI. The 20 three-bedroom/two-bath affordable rental units are in active use and prioritizes families with children. SKHHP awarded $777,306 to Multi-Service Center for the full rehabilitation of the project.
The SKHHP Executive Board meets the 3rd Friday of every month from 1:00 pm - 3:00 pm. Virtual and in-person attendance information and agenda packets can be found on the SKHHP website. Upcoming meeting dates are as follows:
- May 17
- June 14
- June 21 (Meeting Cancelled)
The SKHHP Advisory Board meets on the first Thursday of every month from 6:00 pm - 8:00 pm. Virtual and in-person attendance information and agenda packets can be found on the SKHHP website. Upcoming meeting dates are as follows:
- June 6
- July 4 (Meeting Cancelled)
Please email Dorsol Plants, Program Coordinator with questions or concerns.
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