Request for Proposals - Affordable Housing Sales Tax Credit Funds (HB 1406)

City of Puyallup
Request for Proposals
Affordable Housing Sales Tax
Credit Funds
(HB 1406)
September 28, 2026
1

Background
In 2019, the Washington State Legislature adopted House Bill 1406 (HB 1406)
establishing a revenue sharing program with local governments pertaining to affordable
or supportive housing. Under HB 1406, the City of Puyallup (the "City") receives a
credit of a portion of Washington State's sales and use tax collected within the City. On
February 11, 2020 the Puyallup City Council adopted an ordinance authorizing the tax
credit and the City began receiving such funds in June 2020.
The City receives approximately $194,000 per year in HB 1406 sales tax credit funds
and currently has approximately $1.3 million in the City's HB 1406 fund based on
annual collections and the interest from the collected amount. These funds can be used
for the following three categories:
1) Capital Investments - acquire, rehabilitate, or construct affordable or supportive
housing;
2) Operations and Maintenance - funding of operations and maintenance of
affordable or supportive housing; or
3) Rental Assistance - rental assistance for tenants
All housing units funded with the City's HB 1406 funds may only be provided to persons
whose income is at or below sixty percent (60%) of the area median income.
Purpose of Request for Proposal (RFP)
The City is seeking proposals from entities interested in using City's HB 1406 funds for
projects within one or more of the three categories outlined in the Background section of
this RFP.
Proposal Submission Deadline and Consideration of Proposals
Proposals must be submitted on or before October 30, 2026 by 4:30 p.m. Pacific Time.
Proposals must be submitted electronically via email. Proposals shall be emailed to
Info@PuyallupWA.gov.
All proposals that meet the requirements contained within this RFP, will be presented to
Puyallup City Council during a regularly scheduled City Council meeting. City Council
will make all decisions regarding proposal selection and allocation of City HB 1406
funds.
General inquiries regarding this RFP should be directed to Steve Kirkelie, City Manager,
at skirkelie@puyallupwa.gov or 253-435-3620.
2

Proposal Requirements
Proposals shall include a written narrative that includes, at a minimum, descriptions of
the following:
1) Background and Qualifications of entity submitting proposal
The legal name of the entity submitting the proposal and a general overview of
the entity's purpose and operational focus. More specifically, provide why the
entity would be a good recipient of HB 1406 funds from the City.
2) Description of proposal to include the amount of City HB 1406 funds requested
for the proposal
Provide a detailed description of the proposal to include the amount of HB 1406
funds the entity is requesting from the City. The description should also include
how the proposal, if funded and implemented, would benefit the City.
3) Prior experience in the type of project being proposed
Provide specific projects that the entity has previously implemented similar to the
proposal submitted in response to this RFP. In addition, this description should
provide references that the City can contact who worked with the entity on the
previous projects.
4) Budget for the project
Provide a proposed budget for the project to include revenues, expenses, debt,
and any other pertinent financial considerations regarding the proposed project.
5) Financing sources for the proposal in addition to City HB 1406 Funds, if
applicable
If the proposed project will not be entirely funded by the City's HB 1406 funds,
please provide a description of the other funding sources for the implementation
of the project.
6) Project implementation schedule
If the City were to allocate HB 1406 funds to the proposed project, provide a
general schedule outlining the key steps and timeframe for implementation of the
project.
7) Project personnel
Please provide the names and professional background for each of the persons
who will be working on the project if awarded City HB 1406 funds.
3

General RFP Terms and Conditions
1) The City reserves the right, at its' sole discretion, to reject any and/or all submittals
received without penalty and not award HB 1406 funds. The City reserves the right, at
its sole discretion, to waive minor administrative irregularities contained in any submittal.
2) The City reserves the right to request clarification of information submitted, and to
request additional information from any party submitting proposals.
3) The City is not responsible for any costs incurred by an entity in preparing,
submitting or presenting its proposal. Additionally, if an oral presentation is required to
supplement and/or clarify a proposal for the Puyallup City Council, such presentation
expenses shall be borne by the entity submitting a proposal.
4