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Record No: CB 119774    Version: 1 Council Bill No: CB 119774
Type: Council Bill (CB) Status: In Committee
Current Controlling Legislative Body Select Budget Committee
On agenda: 6/10/2020
Ordinance No:
Title: AN ORDINANCE establishing a spending plan for the proceeds generated from the payroll expense tax authorized by the ordinance introduced as Council Bill 119772 to fund immediate cash assistance for low-income households impacted by the COVID-19 crisis in 2020 and the development of social housing that is permanently affordable, high-quality, and energy-efficient, to fund housing-related components of Seattle's Green New Deal as articulated in Resolution 31895, and to fund other investments; establishing a Social Housing Board and amending the duties of the Green New Deal Oversight Board to make funding recommendations; establishing a requirement for an Implementation Plan; adding a new Section 3.14.750 to, and amending Section 3.14.979 of, the Seattle Municipal Code; amending Ordinance 126000, which adopted the 2020 Budget; changing appropriations to various departments and budget control levels, and from various funds in the 2020 Budget; declaring an emergency; and establishing an imm...
Sponsors: Kshama Sawant, Tammy J. Morales
Attachments: 1. Att 1 - Proposed Five-Year Spending Plan
Supporting documents: 1. Summary and Fiscal Note, 2. Presentation - Issue Identification for CBs 119772, 119773, and 119774 (6/10/20), 3. Central Staff Issue Identification Memo (6/10/20), 4. Central Staff Memo (4/22/20), 5. Presentation on CBs 119772, 119773, & 119774, 6. Central Staff Memo (4/29/20), 7. Central Staff Memo - Subpoena Notification Memo (12/8/20) (added; 12/9/20)
Related files: CB 119772, CB 119773

 

                                                                                                                                                   

CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

title

AN ORDINANCE establishing a spending plan for the proceeds generated from the payroll expense tax authorized by the ordinance introduced as Council Bill 119772 to fund immediate cash assistance for low-income households impacted by the COVID-19 crisis in 2020 and the development of social housing that is permanently affordable, high-quality, and energy-efficient, to fund housing-related components of Seattle’s Green New Deal as articulated in Resolution 31895, and to fund other investments; establishing a Social Housing Board and amending the duties of the Green New Deal Oversight Board to make funding recommendations; establishing a requirement for an Implementation Plan; adding a new Section 3.14.750 to, and amending Section 3.14.979 of, the Seattle Municipal Code; amending Ordinance 126000, which adopted the 2020 Budget; changing appropriations to various departments and budget control levels, and from various funds in the 2020 Budget; declaring an emergency; and establishing an immediate effective date; all by a 3/4 vote of the City Council.

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WHEREAS, the City Council (“Council”) adopted the ordinance introduced as Council Bill 119772, authorizing the collection of a new payroll expense tax (“tax on corporate payroll”) to be imposed beginning June 2020; and

WHEREAS, the new tax on corporate payroll is anticipated to generate an average of $500 million in proceeds on an annual basis, as shown in the spending plan included as Attachment 1 to this ordinance; and

WHEREAS, on November 2, 2015, the Mayor issued a Proclamation of Civil Emergency to address the homelessness crisis in the City of Seattle; and

WHEREAS, on November 3, 2015, the City Council adopted Resolution 31630, ratifying and confirming the Mayoral Proclamation of Civil Emergency; and

WHEREAS, the Civil Emergency to address the homelessness crisis is still in effect today; and

WHEREAS, Seattle has been in the throes of a stunning and unprecedented affordable housing and homelessness crisis, which is now being greatly exacerbated and complicated by the COVID-19 pandemic and related economic and unemployment crisis described more below. Sky-high rents and soaring home prices have been and are driving working-class households, seniors, students, and especially working families of color out of Seattle, and sometimes into homelessness; and

WHEREAS, the affordable housing crisis, and now the COVID-19 pandemic and related economic and unemployment emergencies, in Seattle are deeply impacting the lives of people throughout Seattle and the region and disproportionately harms people of color, immigrants, the LGBTQ community, indigenous peoples’ communities, disabled community members, and women, who already struggle against entrenched inequality; and

WHEREAS, even as Seattle experienced a record-breaking construction boom, being recognized as the nation’s construction crane capital three years running, the housing crisis worsened, showing that the for-profit market has failed working people; and

WHEREAS, average rents in Seattle rose 69 percent between 2010 and 2018, far beyond the rate of inflation and more than double the national average; and

WHEREAS, numerous studies have shown that rising rent increases homelessness. One such study showed that each $100 increase in the average rent caused a 15 percent increase in homelessness in urban areas; and

WHEREAS, the affordable housing crisis is no better for homebuyers, with the median price of recently sold homes reaching a staggering $713,900, putting home ownership out of reach for the vast majority of working people; and 

WHEREAS, the affordable housing crisis puts housing out of reach for teachers, bus and truck drivers, healthcare workers, construction workers, city employees, restaurant and bar workers, and a slew of other workers who daily make Seattle run, and furthermore is driving out seniors and others who survive on fixed incomes; and

WHEREAS, more than 4,280 students in Seattle Public Schools are homeless or have unstable housing; and

WHEREAS, even before the COVID-19 emergency, thousands of Seattle renters faced eviction threats every year, and in September 2018, the Seattle Women’s Commission and the King County Bar Association jointly published Losing Home: The Human Cost of Eviction in Seattle, finding that more than half of Seattle renters receiving eviction notices in 2017 owed one month’s rent or less, and most tenants who are evicted become homeless; and

WHEREAS, the Losing Home report found that evictions in Seattle fall disproportionately on women and people of color, with people of color constituting about 35 percent of renters, and nearly 52 percent of evictions involved people of color; and 

WHEREAS, the soaring cost of housing is destroying the social fabric of communities through gentrification, driving people away from their friends and family, faith communities, small businesses, and neighborhoods, as exemplified by the fact that the number of Black residents in Seattle’s Central District has plunged from 70 percent in the 1970s to under 20 percent today; and

WHEREAS, the City is committed to eliminating racial inequities such as these through implementation of the Race and Social Justice Initiative; and

WHEREAS, housing is a human right and Seattle urgently needs bold public policy to solve the multiple and overlapping crises, including the affordable housing and homelessness crisis, the COVID-19 pandemic and related economic and unemployment crisis, and the climate change crisis; and

WHEREAS, the private housing market has failed, and will continue to fail, to meet basic human housing needs; and

WHEREAS, the people of Seattle therefore need a significant expansion of social housing (publicly-owned or publicly-controlled housing), where rents are permanently affordable, stable, predictable, and fair; and   

WHEREAS, in 2001, the Seattle City Council (“Council”) adopted, with the Mayor concurring, Resolution 30316, supporting efforts to curb global warming, adopting greenhouse gas (GHG) emission reduction goals for Seattle, and committing to ongoing efforts to achieve these goals; and

WHEREAS, the 2016 Greenhouse Gas Inventory, published in February 2019, found that total greenhouse gas emissions in Seattle rose by one percent between 2014 and 2016, and that in order to achieve the goals of the Climate Action Plan adopted via Resolution 31447, Seattle’s emissions reduction rate needs to increase by a factor of seven; and

WHEREAS, in August 2016, the Council adopted, with the Mayor concurring, Resolution 31681 to advance the efforts of the Equity & Environment Agenda, adopting goals for all environmental and sustainability work in Seattle that prioritize communities of color, immigrants, refugees, people with low-incomes, youth, and limited-English proficiency individuals; and

WHEREAS, in October 2016, the Council adopted, with the Mayor concurring, Resolution 31712, endorsing community principles for green jobs, defining a green job as one that preserves or enhances environmental health as well as the economic and social well-being of people and communities, centers on communities most negatively impacted by climate change, and pays a living wage while providing career pathways; and

WHEREAS, the City Council adopted Resolution 31895 establishing a Green New Deal for Seattle; and

WHEREAS, in August 2019, Resolution 31895 recognized that, while it has made some progress towards reducing its dependence on fossil fuels, the current pace of progress is insufficient to make the necessary changes to shift Seattle’s economy to be more equitable and ecologically sustainable; and

WHEREAS, Resolution 31895 established key goals and committed the City to implement comprehensive strategies as described in Section 1 of this ordinance; and

WHEREAS, Resolution 31895 envisioned the need to establish a dedicated revenue source in order to implement Green New Deal strategies; and

WHEREAS, climate activists in Seattle and worldwide, led by young people, have organized mass mobilizations and strikes demanding that government take immediate and dramatic action to address the climate crisis; and

WHEREAS, in Seattle, these demands for a Green New Deal for Seattle have been bravely led by many people and communities, including middle- and high-school students, workers in the tech industry, indigenous communities, and communities of color; and

WHEREAS, the new tax on corporate payroll will generate significant funds to address identified inequities and to respond to the multiple and overlapping crises, including the affordable housing and homelessness crisis, the COVID-19 pandemic and related economic and unemployment crisis, and the climate change crisis; and

WHEREAS, these additional funds will provide immediate financial relief and in the long-term will increase the construction and preservation of thousands of units of permanently affordable housing for low- and moderate-income households to address the housing affordability and homelessness crisis, will contribute to reducing Seattle’s climate pollution, and will in the process support thousands of unionized, living-wage jobs, and in doing so will help the City make the necessary changes to shift Seattle’s economy to be more equitable and ecologically sustainable; and

WHEREAS, the World Health Organization has announced novel coronavirus (COVID-19) is officially a global pandemic; and

WHEREAS, on February 29, 2020 the Washington Governor issued Proclamation 20-05, proclaiming a state of emergency for all counties throughout the state of Washington in response to new cases of COVID-19, and

WHEREAS, on March 13, 2020 the President of the United States declared a national state of emergency in response to the COVID-19 pandemic; and

WHEREAS, on March 25, 2020 the Washington Governor issued Proclamation 20-25, prohibiting all people in Washington State from leaving their homes and all non-essential businesses in Washington State from conducting business (“Stay Home - Stay Healthy Proclamation”); and

WHEREAS, these actions are appropriate for public health reasons but have severe economic impacts on families and individuals in Seattle; and

WHEREAS, these impacts are being felt most strongly by people with low incomes who have become unemployed or had their work hours severely reduced; and

WHEREAS, federal and state assistance to people with low incomes will not be sufficient to meet their basic needs during this public health and financial crisis; and

WHEREAS, without additional financial support, many people with low incomes will face severe financial hardship which will have significant negative impacts, including but not limited to public health impacts, greater housing insecurity, as well as impacts to small businesses and the local economy; and

WHEREAS, the City can provide immediate cash assistance to households impacted by this crisis to help meet their basic needs; and

WHEREAS, the City will use an interfund loan authorized by the ordinance introduced as Council Bill 119773 to provide funding to support the immediate cash assistance to eligible households in 2020, to be repaid with proceeds from the new tax on corporate payroll collected in 2021; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Findings. The City Council finds that:

A. Supporting the development and preservation of stable and permanently affordable housing for people experiencing homelessness and also for low- and middle-income households with incomes up to 100 percent of the area median income (AMI) is a fundamental governmental purpose and will result in numerous benefits to the City as described below.

B. Data from the 2012-2016 American Community Survey (ACS) shows that: over 65,000 households in Seattle with incomes at or below 100 percent of AMI are cost burdened, paying more than 30 percent of their income for rent and utilities; and 29,000 households with incomes at or below 50 percent of area AMI are severely cost burdened, paying over 50 percent of their income for rent and utilities, and, as a result, are at potential risk of homelessness.

C. The 2019 point-in-time count of people experiencing homelessness in King County found at least 5,228 individuals living unsheltered in addition to at least 5,971 more individuals who are experiencing homelessness but are sheltered, for a total of at least 11,119 individuals who are experiencing homelessness.

D. Increased investments in stable and permanently affordable housing will reduce the number of households that are cost burdened or severely cost burdened, which should help with the prevention of homelessness and the severe associated harms and costs.

E. Publicly-funded workers, such as teachers, firefighters, public servants, law enforcement, nurses, social workers, and transit operators, including those in professions historically underrepresented by persons and communities of color, often cannot afford to live in the communities in which they serve due to increasing housing costs. Employees of nonprofit organizations who help deliver essential public services on contract, as well as those who help provide essential services to the poor and infirm as part of their organizational mission, are similarly housing cost constrained.

F. It will benefit the City if public employees and other middle-income and low-income employees are able to find affordable housing in the communities where they work.

G. Stable and permanently affordable housing for low-income and middle-income residents is expected to result in stronger educational outcomes for children and better health outcomes for families.

H. In certain cases, mixed-income affordable housing projects may be desirable and may contribute to the long-term sustainability of the project.                     

I. Additional permanently affordable housing is also anticipated to result in benefits to the economy, such as generating additional tax revenue to the City and supporting construction jobs related to the development of new housing as described in the April 2015 National Association of Home Builders (NAHB) report that showed construction of a 100 unit multifamily building supported 90 construction jobs.  

J. Climate change is altering Washington’s seasonal temperature and rainfall patterns. This change can result in introducing new or exacerbating existing health risks, such as heat-related illnesses, increased risk of breathing and heart problems from smoke exposure, food and water contamination, traumatic injuries, mental health problems from flooding and other weather extremes, and increased exposure to infectious diseases. While the City has made some progress towards reducing its dependence on fossil fuels, the primary source of carbon dioxide emissions, as one strategy to address climate change, that progress is insufficient to make the necessary changes to shift Seattle’s economy to be more equitable and ecologically sustainable.

K. Energy for heating, cooling, and powering buildings accounted for more than one-third of Seattle’s greenhouse gas emissions in 2016.

L. Implementing housing-related strategies outlined in the City’s Green New Deal, Resolution 31895, will help achieve the goals outlined in that resolution to create a future where Seattle residents can live healthy, prosperous lives, free of toxic chemicals and fossil fuels, and where the social and ecological well-being of all people is a priority. These housing-related strategies include the following:

1. Creating more permanently affordable housing, located near transit hubs, green space, and neighborhood amenities to reduce dependence on private vehicles;

2. Using anti-displacement strategies and alternative housing models, such as: acquisition of existing affordable housing in areas at risk of displacement, community-owned cooperative housing, community land ownership, and community land conservation that will allow communities to grow and prosper within Seattle;

3. Increasing housing density as a means to meet both current unmet demand for affordable housing and projected future population growth;

4. Supporting the transition of housing from the use of natural gas and heating oil to electricity;

5. Strengthening green building standards for new construction to minimize emissions while maximizing energy efficiency; and

6. Expanding renewable energy jobs and investing in job training programs that equip all workers with the necessary skills to thrive in the green economy and ensure a just transition for workers whose jobs currently depend on the fossil fuel industry (e.g., retraining mechanics to service electric vehicles) and prepare new workers to support the transition to a renewable energy economy.

M. The failure to make adequate provision for housing affordable to households with incomes at or below 100 percent of AMI can push many households to seek housing further away from work, which leads to increased greenhouse gas emissions from transportation, as well as congestion on the transportation infrastructure. Providing for more housing affordable to households with incomes at or below 100 percent of AMI in the City could result in commute trip reductions, less traffic for City residents and City employees, less City spending on transportation infrastructure, and a reduction in greenhouse gas emissions.

N. On March 3, 2020, the Mayor proclaimed that a civil emergency exists in the City of Seattle related to the COVID-19 virus.

O. On March 11, 2020, the Governor of Washington State and the Local Health Officer for Public Health - Seattle & King County issued parallel orders prohibiting gatherings of 250 people or more for social, spiritual and recreational activities in King County.

P. On March 13, 2020, the Governor of Washington state issued an emergency order announcing all K-12 schools in Washington to be closed from March 17, 2020 through April 24, 2020 to combat the spread of the disease.

Q. On March 13, 2020, the President of the United States declared a national emergency to allow the government to marshal additional resources to combat the virus.

R. On March 23, 2020, the Governor of Washington State issued an emergency order (“the Stay Home, Stay Safe” order) announcing that “[a]ll people in Washington State shall immediately cease leaving their home or place of residence except: (1) to conduct or participate in essential activities, and/or (2) for employment in essential business services.”

S. As of April 1, 2020, the Washington State Department of Health confirmed 5,984 cases of COVID-19 and 247 deaths caused by the virus.

T. The COVID-19 crisis has had a significant impact on the local economy impacting the retail, restaurant, construction, gig economy, and other industries resulting in layoffs and reduced work hours for a significant percentage of this workforce and loss of income for small businesses. These impacts are being felt most strongly by people with low incomes who have become unemployed or had their work hours severely reduced and will have both immediate and long-term impacts.

U. There are at least 38,000 businesses in the City of Seattle employing a minimum of 655,000 individuals. Since the Governor of Washington closed or limited operations of many businesses in the state, over 133,000 individuals statewide and 37,000 individuals in King County, alone, have filed for unemployment insurance in just the first weeks. Unemployment insurance generally only covers a portion of lost wages. Those filing for unemployment insurance will, in all likelihood, only increase as the closure continues. This will put more and more Seattle households, particularly low-income households, in financial peril.

V. Federal and state assistance is inaccessible to many people with low-incomes, is being delayed for many others, and will not be sufficient to meet their basic needs during the COVID-19 public health and financial crisis.  Additional and immediate financial support to people with low-incomes is necessary to help meet their basic needs and to help minimize impacts to public health as well as the local economy.

W. The economic impacts from the COVID-19 emergency are drastic and immediate, but are also expected to last much longer than the civil shut-down emergency itself. 

X. The spending plan is being tailored to address both immediate and long-term, basic human health and housing needs created by the multiple and overlapping crises, which include the long-running affordable housing and homelessness crisis, which has now been greatly exacerbated and complicated by the COVID-19 pandemic and related economic and unemployment crises, as well as the longer-term climate change crisis which nevertheless requires prompt and bold action now.

Y. Investments in affordable housing and Seattle’s Green New Deal are necessary to help counteract the economic and health impacts caused by the COVID-19 crisis by creating jobs and increasing the supply of long-term affordable housing that will be needed by people who saw a significant reductions in income due to employment changes stemming from the crisis.

Section 2. Proceeds from the new tax on corporate payroll imposed by the ordinance introduced as Council Bill 119772 shall be used as described in subsections 2.A through 2.D of this ordinance. Immediate cash assistance to low-income households impacted by COVID-19 crisis will be provided in 2020 and funded by an interfund loan authorized by the ordinance introduced as Council Bill 119773. Proceeds from the tax on corporate payroll will be used to repay this loan. Attachment 1 to this ordinance establishes the proposed spending plan for the first five years of the tax on corporate payroll. The spending plan may be amended from time to time by the City Council by ordinance.

A. Implementation and administrative costs. No more than five percent of the proceeds in the first year shall be used to fund one-time expenditures to implement and administer the tax on corporate payroll authorized by the ordinance introduced as Council Bill 119772 and to implement the investments in Housing and Services, Green New Deal housing-related strategies, and cash assistance for low-income households impacted by the COVID-19 crisis, described in Section 2 of this ordinance. No more than three percent of the proceeds in subsequent years shall be used to fund the ongoing administrative functions to assess and collect the tax and administer the investments in Housing and Services and Green New Deal housing-related strategies described in Section 2 of this ordinance.

B. Cash assistance for low-income households impacted by COVID-19 crisis. In 2021, approximately $205,000,000 shall be allocated to pay back the interfund loan authorized by the ordinance introduced as Council Bill 119773, used in 2020 to provide cash assistance to low-income households in Seattle in response to the economic impacts of the COVID-19 crisis. The economic impacts caused be COVID-19 include but are not limited to loss or reduction in income because of: illness; loss of employment; reduction in compensated hours of work; business or office closure; a need to miss work to care for a family member or child, where that care is uncompensated; or other similar loss of income due to the COVID-19 crisis. These funds could serve up to 100,000 Seattle households with monthly payments of $500 for four months. 

1. Distribution

a. Up to $100,000,000 will be distributed first to low-income households enrolled in existing City assistance programs, or State assistance programs administered by the City, that provide a direct financial benefit, including, but not limited to: the Utility Discount Program, Early Childhood Education and Assistance Program, Child Care Assistance Program, households that qualify for free tuition in the Seattle Preschool Program and Pathway to Seattle Preschool Program, and Fresh Bucks.

b. Up to $100,000,000 will be distributed to low-income households economically impacted by the COVID-19 crisis but not enrolled in existing City assistance programs that provide a direct financial benefit (e.g. food vouchers, child care tuition assistance, utility discounts). The distribution should prioritize those who experience structural or institutional barriers to accessing support from the government (e.g. language barriers, fear of deportation, experiencing homelessness, lack of a permanent address, experiencing domestic violence, seniors), and those who require assistance immediately (i.e. people who are recently unemployed or had their work hours severely reduced). The Executive shall establish eligibility criteria for distributing cash assistance to low-income households who are not receiving cash assistance through the process established in subsection 2.B.1.a but have been economically impacted by the COVID-19 crisis.

c. After distributing the first of the four payments to households described in subsections 2.B.1.a and 2.B.1.b of this ordinance, any remaining, unallocated funds may be distributed to either households enrolled in existing City assistance programs or to households identified in subsection 2.B.1.b.

2.  For purposes of this ordinance, a low-income household means: (1) any household that is eligible for existing City assistance programs, or State assistance programs administered by the City; or (2) households not enrolled in such programs that have been impacted by the COVID-19 crisis and meet eligibility criteria established by the Executive.

3.  The Executive shall establish criteria and a process to distribute the cash assistance to households described in subsection 2.B.1.b of this ordinance and shall provide a written report or briefing to the City Council on the prior to distributing funds.

4. The Executive shall provide a monthly report to the City Council on the distribution of the cash assistance. The report shall include details on the spending to date, including information on the households receiving the cash assistance, and modifications made, if any, to the process or criteria used for distribution. The first report shall be due two weeks after the first payment is distributed.

C. Housing and services. Seventy-five percent of the proceeds remaining after funding implementation and administration costs in subsection 2.A of this ordinance, and after funding payment of the interfund loan described in subsection 2.B of this ordinance, shall be allocated to develop and preserve permanently affordable social housing for households experiencing homelessness and those with incomes between zero and 100 percent of AMI as will be further defined in the implementation plan described in Section 4 of this ordinance. Newly constructed housing will be built consistent with the Seattle’s Green New Deal strategies to equitably increase building energy efficiency and decrease use of fossil fuels in homes, as outlined in Resolution 31895. Such housing will be publicly owned or be publicly rent-controlled and regulated through appropriate legal agreements between the City and the housing providers. Such legal agreements shall specify the affordability requirements, including limiting annual rent increases for tenants to not more than the annual percentage increase in the housing component of the consumer price index for rent of primary residences for the Seattle area. The proceeds for housing and services may be used for:

1. Developing and preserving permanently affordable rental housing for households with incomes between zero and 100 percent of AMI. Such housing may be mixed-income and may also include, and funds may be used to provide, related and needed community services and spaces such as affordable childcare, community gathering spaces, and open space;

2. Funding to support the ongoing operations and services for permanent supportive housing units, including an array of comprehensive services such as counseling and treatment, disability support, skills training, job search assistance, and other services needed to maintain housing stability; and

3. Acquiring existing affordable housing, particularly in areas at high risk for displacement of existing low-income and moderate-income households.

D. Green New Deal housing related strategies. Twenty-five percent of the proceeds remaining after funding implementation and administration costs in subsection 2.A of this ordinance, and after funding payment of the interfund loan described in subsection 2.B of this ordinance,  shall be allocated to investments in the following programs to implement the housing-related strategies called for in the Green New Deal. Investments shall be prioritized in communities historically most harmed by economic, racial, and environmental injustice.

1. Transitioning housing units from the use of natural gas and heating oil to electricity;

2. Solar installations;

3. Weatherization of existing residences, with a focus on housing for renters; and

4. Investing in job training programs to equip workers with the necessary skills to thrive in a green economy and ensure a just transition for workers whose jobs currently depend on the fossil fuel industry or who have been impacted by the COVID-19 economic and unemployment crisis, and prepare new workers to support the transition to renewable energy jobs. Specific investment proposals shall be informed by recommendations from the Green New Deal Oversight Board. The Green New Deal Oversight Board shall invite workers who are directly employed by the fossil fuel industry, or who have been impacted by the COVID-19 economic and unemployment crisis, or who are in jobs that may be displaced as a result of implementation of this spending plan, along with their unions, to work with them on just transition recommendations that have the objective of eliminating economic harm to affected workers.

Section 3. A new Section 3.14.750 of the Seattle Municipal Code is added to Subchapter V of Chapter 3.14 as follows:

3.14.750 Social Housing Board established

A. Establishment. There is established a Social Housing Board that shall make recommendations to the City Council and Mayor on the housing programs and related services that will be funded with the proceeds from the new tax on corporate payroll, established by the ordinance introduced as Council Bill 119772. Duties of the Board shall include the following:

1. Providing ongoing program and policy review, oversight, and monitoring of expenditures in the housing and services category, and review the performance of programs and services funded by the tax on corporate payroll.

2. Providing recommendations on the development and any future modifications to the implementation plan and funding policies for housing programs funded with the proceeds from the tax on corporate payroll.

3. Reviewing and providing recommendations to the City Council annually on the formation of requests for proposals that the Office of Housing issues to solicit development proposals from public and nonprofit housing providers.

4. Providing recommendations annually to the City Council on City budget priorities for housing and priority City actions in a given year for use of funds generated from the tax on corporate payroll. The City Council shall act on the recommendations through the annual budget process following a public hearing.

5. Coordinating efforts with the Green New Deal Oversight Board in Section 3.14.979 as needed, meeting at least annually to coordinate activities and to invite public comment and input on their work.

B. Membership. The Social Housing Board shall be comprised of 23 members serving two-year terms, with three members from each Council district, plus two or more designated young adult members, whose terms and method of appointment are governed by the Get Engaged Program in Chapter 3.51. Members of the Social Housing Board should include renters and homeowners, individuals from historically underrepresented groups, as well as individuals with housing development and finance experience. 

C. Selection process

1. Members of the Social Housing Board other than the Get Engaged members shall be appointed by the City Council. Each of the seven City Councilmembers who represents a district shall nominate three people who live in the Councilmember’s district. Initial terms end on December 31, 2023; subsequent terms end every two years thereafter. Any vacancy in an unexpired term of an appointed position shall be filled in the same manner as the original appointment.

2. If the City Charter is amended to allow for an election of members to the Social Housing Board, beginning in the 2023 primary and general election, for terms starting on January 1, 2024 and every two years thereafter, all members of the Social Housing Board except the Get Engaged members shall be elected. Voters in each City Council district are eligible to vote for the three representatives from the corresponding City Council district. If the City Charter is amended, the City Council intends to consider legislation to establish a regulatory framework governing such election.  Vacancies between elections will be filled by the selection process in subsection 3.14.750.C.1.

D. A member whose term is ending may continue on an interim basis as a member with voting rights until such time as a successor for that position has been appointed or elected. This subsection 3.14.750.D does not apply to the Get Engaged members.

E. Any member may request an excused absence from any Social Housing Board meeting. The Social Housing Board may recommend, by a majority vote of all members of the Social Housing Board, that the City Council remove any Council-appointed member who is absent without excuse from three or more consecutive Board meetings. Any member may resign from the Social Housing Board at any time by notifying the City Council in writing. The City Council may remove any Council-appointed member for cause.

F. Meetings of the Social Housing Board

1. The Social Housing Board shall meet as a whole at least four times each year to conduct a quarterly review of social housing development in Seattle, to take public comment, and to make recommendations on program or policy changes to City Council and the Mayor. The Social Housing Board shall seek input from the public to inform their recommendations to the City Council and the Mayor. The Director of the Office of Housing shall make public in a timely manner a schedule and location of the Social Housing Board meetings.

2. Meeting notifications, agendas, minutes of proceedings, findings, and recommendations, civic engagement information, and any other materials shall be available to the public and posted on the Social Housing Board’s website.

3. All meetings of the Social Housing Board shall be held in the evening in a location that is accessible and conveniently located to the public. Social Housing Board meetings shall be open to the public.

G. The Office of Housing shall provide staff support for the Social Housing Board as needed to ensure their ability to function and to maintain the Social Housing Board’s website.

Section 4. Section 3.14.979 of the Seattle Municipal Code, enacted by Ordinance 125926, is amended as follows:

3.14.979 Green New Deal Oversight Board

A. There is established a Green New Deal Oversight Board (Board) that shall advise and make recommendations to the Mayor and City Council related to the Green New Deal for Seattle and monitor progress in meeting intended outcomes and goals. Duties of the Board shall include the following:

1. Providing proposals for the design of new policies, programs, and projects and for modifications to existing policies, programs, and projects to the Mayor, City Council, and City departments that advance the Green New Deal for Seattle;

2. Supporting the planning and implementation of individual City departmental actions, policies, programs, and practices, to make Seattle climate-pollution free by 2030;

3. Providing recommendations on City budget priorities and priority City actions;

4. Coordinating efforts with the Environmental Justice Committee, Equitable Development Initiative Advisory Board, Transportation Equity Workgroup, and other City Boards and Commissions, as needed((.)) , and meeting at least annually with the Social Housing Board to coordinate activities and to invite public comment and input on their work;

5. Submitting an initial workplan to the Council and the Mayor by July 1, 2020, and provide an updated workplan annually thereafter. The workplan should:

a. Define what constitutes a policy, program, or project that advances the Green New Deal for Seattle;

b. Identify the Board's annual scope of work, including priorities, goals, outcomes, and key stakeholders to consult; and

c. Provide an annual engagement plan for collaborating with existing committees, boards, and commissions whose scope align with those of the Board((.)) ;

6. Reviewing a semiannual, or at a frequency determined by the workplan, report of outcomes and indicators for the previous year related to policies, programs, and projects related to the Green New Deal for Seattle((.)) ; and

7. Making recommendations to the City Council and Mayor on Green New Deal housing related strategies that will be funded with the proceeds from the tax on corporate payroll, including recommendations on the development and any future modifications to the implementation plan.

* * *

Section 5. Implementation plan. On or before DATE, the Executive shall submit an Implementation Plan for the new tax on corporate payroll to the City Council.  The Plan may be amended by ordinance. The plan shall include:

A. A specific spending proposal for the Housing and Services and Green New Deal investments years one through five consistent with the program areas described in subsections 2.C and 2.D of this ordinance;

B. Proposed outcomes for each funded program or service;

C. How the programs or services will be implemented (such as responsible department and funding processes);

D. Proposed policies for implementing funded programs or services, prioritizing investments in communities historically most harmed by economic, racial, and environmental injustice, at high risk of displacement; and

E. Proposal for working with the Social Housing Board and the Green New Deal Oversight Board to provide ongoing program and policy review, oversight and monitoring of expenditures, and reviewing performance of programs and services as the plan is implemented.

The City Council intends to adopt modifications to the City’s Housing Funding Policies to have such policies apply to the revenues generated from the new tax on corporate payroll. This shall include changes to reflect annual reporting requirements for investments made using the proceeds from the tax on corporate payroll. The Council anticipates adopting such modifications when adopting the Implementation Plan in 2020.

The Executive shall work with the City Council, the Social Housing Board, and the Green New Deal Oversight Board in the development of this Implementation Plan to ensure it is consistent with the proposed Spending Plan. The City Council intends to add a proviso to funding in the 2021 budget to ensure funding is appropriated consistent with the proposed Spending Plan found in Attachment 1 to this ordinance, as may be amended by the City Council.

Section 6. It is the Council’s intent that new construction multi-family housing development projects described in Section 2 of this ordinance, regardless of whether the project is or is not considered a public works project, shall be consistent with the standards set forth in Chapter 20.37 of the Seattle Municipal Code, known as the Priority Hire Program, and the standards described below. Such standards shall include: hiring of workers who are from economically distressed ZIP codes and apprenticeship utilization; and other standards such as payment of commercial prevailing wages which shall be included in a Community Workforce Agreement. New construction housing development projects shall also demonstrate adherence to labor laws and a commitment to labor harmony.

Section 7. In order to pay for necessary costs and expenses incurred or to be incurred in 2020, but for which insufficient appropriations were made due to causes that could not reasonably have been foreseen at the time of making the 2020 Budget, contingent appropriations for the following items in the 2020 Budget are increased from the funds shown, as follows:

Item

Department

Fund

Budget Summary Level/BCL Code

Amount

#1

TBD

General Fund

TBD

$200,000,000

 

Section 8. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of its application to any person or circumstance, does not affect the validity of the remainder of this ordinance or the validity of its application to other persons or circumstances.

Section 9. Based on the findings of fact set forth in Section 1 of this ordinance, the Council finds and declares that this ordinance is a public emergency ordinance, which shall take effect immediately and is necessary for the protection of the public health, safety, and welfare.

 

Section 10. By reason of the findings set out in this ordinance, and the emergency that is declared to exist, this ordinance shall become effective immediately upon a passage by a 3/4 vote of the Council, and its approval by the Mayor, as provided in Article IV, subsection 1.I of the Charter of the City.

Passed by a 3/4 vote of all the members of the City Council the ________ day of _________________________, 2020, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2020.

____________________________________

President ____________ of the City Council

Approved by me this ________ day of _________________________, 2020.

____________________________________

Jenny A. Durkan, Mayor

Filed by me this ________ day of _________________________, 2020.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

 

Attachments:

Attachment 1 - Proposed Five-Year Spending Plan