CB 121110 — Version 1 https://webapi.legistar.com/v1/seattle/Matters/16612/Texts/17941 CITY OF SEATTLE ORDINANCE __________________ COUNCIL BILL __________________ ..title AN ORDINANCE relating to short-term rental tax revenue; amending Ordinance 125872 to specify use of revenue proceeds; and ratifying and confirming certain prior acts. ..body WHEREAS, in 2018 the state legislature passed House Bill 2015, which requires that short-term rental tax revenues must be used to support community-initiated equitable development and affordable housing programs; and WHEREAS, in 2019, Ordinance 125872 established the Short-Term Rental Tax Fund and allocates proceeds from the Short-Term Rental Tax Fund to the Office of Planning and Community Development for Equitable Development Initiative grants and administration, debt service payments for bonds issued for affordable housing projects, and the Human Services Department for investments in permanent supportive housing; and WHEREAS, Ordinance 125872 identified specific investment amounts and established a priority order for the categories of spending allowable from Short-Term Rental Tax Fund proceeds; and WHEREAS, in 2021, Ordinance 126393 established the JumpStart Payroll Expense Tax Fund and allocates ongoing revenues in that fund for the Equitable Development Initiative; and WHEREAS, the Short-Term Rental Tax funds items with costs that change over time, including affordable housing contracts in the Human Services Department and debt service payments for affordable housing projects; and WHEREAS, Ordinance 126719 temporarily modified the allocations of Short-Term Rental Tax proceeds for the 2023 and 2024 budgets; and WHEREAS, allocation of Short-Term Rental Tax proceeds must be adjusted to reflect the changed circumstances in the years since the fund was first established; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS: Section 1. Ordinance 125872, last amended by Ordinance 126719, is amended as follows: * * * Section 2. The new Short-Term Rental Tax Fund shall receive revenues from the payments made to the City from the District from revenue collected from short-term rentals in Seattle. In accordance with HB 2015, the services funded by the proceeds of the short-term rental tax shall support investments in affordable housing programs and community-initiated equitable development projects, including but not limited to projects described in Resolution 31711. ((The)) Beginning in 2025, the proceeds shall be used as follows: ((A. The first $5,000,000 of proceeds shall be directed to the Office of Planning and Community Development for grants made to organizations for investments in community-initiated equitable development projects. Grants made to organizations for community-initiated equitable development projects can be used for community capacity building and project development; B. The next $2,200,000 of proceeds shall be directed to debt service payments on bonds issued for affordable housing projects until that debt is retired; C. The next $3,300,000 of the proceeds shall be directed to the Human Services Department to support investments in permanent supportive housing; D. The next $1,069,000 of proceeds shall be directed to the Office of Planning and Community Development for consultant services, administration, and project management to support the program that provides grants to organizations for investments in community-initiated equitable development projects; and E. Any remaining funds shall be directed to grants made to organizations for investments in community-initiated equitable development projects.)) A. The first proceeds shall be directed to annual debt service payments on bonds issued in 2018 and 2019 for affordable housing projects until that debt is retired; and B. The remaining estimated proceeds shall be directed to (1) the Office of Planning and Community Development for grants made to organizations for investments in community-initiated equitable development projects and the administration of those grants. Grants made to organizations for community-initiated equitable development projects can be used for community capacity building and project development; and (2) to the Human Services Department to support permanent supportive housing contracts. Amounts allocated to each category will be reflected in the annual budget. * * * ((Section 5. Notwithstanding contrary provisions in this ordinance, in the 2023 and 2024 budget for The City of Seattle, proceeds from the short-term rental tax may be used as follows: A. The first $4,400,000 of proceeds shall be directed to the Office of Planning and Community Development for grants made to organizations for investments in community-initiated equitable development projects. Grants made to organizations for community-initiated equitable development projects can be used for community capacity building and project development; B. The next $2,009,000 of proceeds shall be directed to debt service payments on bonds issued for affordable housing projects until that debt is retired; C. The next $3,535,000 of the proceeds shall be directed to the Human Services Department to support investments in permanent supportive housing; D. Any remaining funds shall be directed to grants made to organizations for investments in community-initiated equitable development projects.)) Section 2. Any act consistent with the authority of this ordinance taken prior to its effective date is ratified and confirmed. Section 3. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070. Passed by the City Council the ________ day of _________________________, 2025, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2025. ____________________________________ President ____________ of the City Council Approved / returned unsigned / vetoed this ____day of _______________, 2025. ____________________________________ Bruce A. Harrell, Mayor Filed by me this ________ day of _________________________, 2025. ____________________________________ Scheereen Dedman, City Clerk (Seal) Jennifer Breeze CBO 2025 Short-Term Rental Tax ORD D1b 2 Template last revised February 19, 2025 2 Version No. 1