HomeMy WebLinkAboutResolution No. 394CITY OF MEDINA, WASHINGTON
RESOLUTION NO. 394
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MEDINA, WASHINGTON, AUTHORIZING THE DULY -APPOINTED
ADMINISTERING AGENCY FOR ARCH TO EXECUTE ALL DOCUMENTS
NECESSARY TO ENTER INTO AGREEMENTS FOR THE FUNDING OF
AFFORDABLE HOUSING PROJECTS, AS RECOMMENDED BY THE
ARCH EXECUTIVE BOARD, UTILIZING FUNDS FROM THE CITY'S
HOUSING TRUST FUND.
WHEREAS, A Regional Coalition for Housing (ARCH) was created by interlocal
agreement to help coordinate the efforts of Eastside cities to provide affordable housing;
and
WHEREAS, the ARCH Executive Board has recommended that the City of
Medina participate in the funding of certain affordable housing projects and programs
hereinafter described; and
WHEREAS, the ARCH Executive Board has developed a number of
recommended conditions to ensure that the City's affordable housing funds are used
for their intended purpose and that projects maintain their affordability over time; and
WHEREAS, the City Council has approved the Amended and Restated Interlocal
Agreement for ARCH; and
WHEREAS, the City Council desires to use $35,701 from City funds as
designated below to finance the projects recommended by the ARCH Executive Board;
now, therefore,
THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON. DOES
RESOLVE AS FOLLOWS:
Section 1. The City Council authorizes the duly -appointed administering
agency of ARCH pursuant to the Amended and Restated Interlocal Agreement for
ARCH to execute all documents and take all necessary actions to enter into
Agreements on behalf of the City to fund Catholic Community Services/The Sophia
Way's Kirkland Shelter, Congregations For the Homeless Men's Home, Imagine
Housing's Esterra Block 68 Apartments and KCHA's Trailhead Apartments in a
[combined) total amount not to exceed $35,701.
Section 2. The Agreements entered into pursuant to Section 1 of this resolution
shall include terms and conditions to ensure that the City's funds are used for their
intended purpose and that the projects maintain affordability over time. In determining
what conditions should be included in the Agreements, the duly -appointed administering
agency of ARCH shall be guided by the recommendations set forth in the ARCH
Executive Board's memorandum of January 11, 2018, a copy of which is attached
hereto as Exhibit A.
Resolution No. 394 Page 1 of 2
PASSED BY THE CITY COUNCIL OF THE CITY OF MEDINA ON THE 12T"
DAY OF MARCH 2O18 AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THE
12T" DAY OF MARCH 2O18.
Approved as to form:
Scott Missall, Interim City Attorney
Short Cressman & Burgess, LLC
Cynthia F. Adkins, Mayor
Attest:
�m�z. � a 4Q4rmv�;Y1
Aimee Kellerman, CIVIC, City Clerk
Resolution No. 394 Page 2 of 2
A Regional Coalition for Housing
Together Center Campus
16225 NE 87t' Street, Suite A-3 ♦ Redmond, Washington 98052
(425) 861-3677 ♦ Fax: (425) 861-4553 ♦ WEBSITE: www.archhousing.org
MEMORANDUM DRAFT
TO: City of Bellevue Council Members
City of Bothell Council Members
City of Clyde Hill Council Members
Town of Hunts Point Council Members
City of Issaquah Council Members
City of Kenmore Council Members
City of Kirkland Council Members
City of Medina Council Members
City of Mercer Island Council Members
City of Newcastle Council Members
City of Redmond Council Members
City of Sammamish Council Members
City of Woodinville Council Members
Town of Yarrow Point Council Members
FROM: Emily Moon, Chair, and ARCH Executive Board
DATE: January 11, 2018
RE: Fall 2017 Housing Trust Fund (HTF) Recommendation
The ARCH Executive Board and Citizen Advisory Board (CAB) have completed their review of the five
applications for the Fall 2017 Housing Trust Fund round. The Executive Board and CAB recommends
funding for five projects. Recommendations total $4,608,000 with an additional contingency award of up
to $850,000 with forward commitment of 2018 round funds as summarized in the attached table, Proposed
Funding Sources. The actual amount will depend on final action by the City Councils.
Following is a summary of the applications, the recommendation and rationale, and proposed contract
conditions for the five proposals recommended for funding at this time. Also enclosed is an evaluation
matrix for each proposal, an economic summary for the five projects recommended for funding, funding
leveraging chart, project summary table, and a summary of funded projects to date.
1. Catholic Community Services with Sophia Way, Kirkland Shelter
Funding Request: $1,124,000 (Secured Grant)
98 Beds (50 Family; 48 Unaccompanied Women)
Note: Project proposal also includes approximately $1.3
million of other Kirkland Resources (e.g. REET, In -Lieu
fees, fee waivers)
BEAUX ARTS VILLAGE ♦ BELLEVUE ♦ BOTHELL ♦ CLYDE HILL ♦ HUNTS POINT ♦ ISSAQUAH ♦ KENMORE ♦ KIRKLAND
MEDINA♦ MERCER ISLAND ♦ NEWCASTLE ♦ REDMOND ♦ SAMMAMISH ♦ WOODINVILLE ♦ YARROW POINT KING COUNTY
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 12
Exec Board Recommendation: $1,224,000 (Secured Grant) as follows:
$719,594 CDGB Funds
$504,406 City General Funds:
(includes contingency award of up to $100,000)
See attached Funding Chart for distribution of City Funds
Project Summary
Catholic Community Services of Western Washington (CCS) with the Sophia Way is proposing
development of a permanent winter shelter for unaccompanied women and families. This facility will
replace the temporarily located winter shelters and day centers that have served women and families and
operated by Sophia Way and CCS.
The shelter is proposed as a low barrier shelter which means few requirements on the shelter guests other
than they don't pose a danger to other guests. East King County shelter has evolved from severe weather,
to winter shelter at temporary locations identified yearly. This application takes the project a next step to a
permanent location better located for shelter guests (transit access, near services) and providing features
unavailable in temporary locations (e.g. laundry, storage, etc.). As presented in the application the
operating budget assumes 24/7/365 operations with full services, however, the operators are also providing
budgets that incrementally increase operations from current levels of service to full time service for both
day services and shelter. This could allow for increased level of operation from current level depending
upon the level of funding support from public and private sources.
The proposal is a new 19,075 square foot building housing two separate shelters and day centers located
on separate floors. The women's shelter is sized to house 48 women; the family shelter will house
families comprising a total of up to 50 persons. The day center spaces will accommodate private case
management, food preparation and service, computer lab and storage of belongings and pets,
The property is located on a portion of the Salt House Church, located in the Rose Hill area of Kirkland
several blocks south of 85th Street, a central transportation and retail corridor. Surrounding uses include
residential uses on two sides, Lake Washington High School, and a cemetery. The City proposes to
acquire the site and to make it available for the project per a long-term lease.
Funding Rationale:
The CAB and Executive Board supported the intent of this application for the following reasons:
• Provides shelter in a permanent location, and could move to full time operation with additional
operating and services funding
• Helps implement a vision regarding a more comprehensive approach to shelter and related services
to assist homeless that has been part of ARCH member cities work program for several years and
endorsed by All -Home.
• Operators are respected, and have been successful for eight years of operation in serving this
population in a winter shelter
• Site is available for use. Outreach has already occurred for the existing day center operating at the
site. Shelter has also been touched on in this outreach effort
• City Council has been supportive and already committed significant funds to the project
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 13
• Operators are committed to raising $1.2 million through capital campaign and a coalition of local
faith organizations (New Bethlehem project) have committed to assisting the project and already
successfully assisted the existing day center on -site
• City land ownership structure provides more long-term stability to the long-term use of the facility
for proposed or similar use.
Proposed Conditions:
Standard Conditions: Refer to list of standard conditions found at end of this memo
Special Conditions:
1. The funding commitment shall continue for twelve (12) months from the date of Council approval and
shall expire thereafter if all conditions are not satisfied. An extension may be requested to ARCH staff
no later than sixty (60) days prior to the expiration date. At that time, the applicant will provide a
status report on progress to date, and expected schedule for start of construction and project
completion. ARCH staff will consider a twelve-month extension only on the basis of documented,
meaningful progress in bringing the project to readiness or completion. At a minimum, the applicant
will demonstrate that all capital funding net of the capital campaign has been secured or is likely to be
secured within a reasonable period of time, and that there is a means to cover the gap in capital
campaign contributions not yet collected.
2. Funds shall be used by City and applicant toward land acquisition (lease), off -site utilities, construction
and construction contingency, permits and fees, professional costs and other soft costs. Funds may not
be used for any other purpose unless City or Administering Agency has given written authorization for
the alternate use. Prior to spending of City resources set aside for construction contingency Agency
must obtain approval in advance by City staff or ARCH staff. If after the completion of the project
there are budget line items with unexpended balances, the public fenders shall approve adjustments to
the project capital sources, including, potentially, reductions in public fund grant amounts. Any
portion of funding that is CDBG funding will be limited to acquisition and professional costs.
3. As part of the funding award, $100,000 is a contingency award subject to final approval of the ARCH
Executive Board. Prior to consideration by the Executive Board of a contingency award, the applicant
will provide updated project design, including updated site related costs, updated development and
operating budgets, project schedule for review by the ARCH CAB and final approval by the ARCH
Executive Board for the final amount and uses of contingency award. If awarded, all or some portion
of the contingency award will be used for construction contingency.
4. The Applicant shall provide revised development and operating budgets based upon actual funding
commitments, which must be approved by City staff or ARCH staff. If the Applicant is unable to
adhere to the budgets, City or ARCH must be immediately notified and (a) new budget(s) shall be
submitted by the Applicant for City staff or ARCH staff s approval. Unless approved by the Executive
Board, the development budget will include a minimum of $1.2 million from private sources raised by
the applicants. The City shall not unreasonably withhold its approval to (a) revised budget(s), so long
as such new budget(s) does not materially adversely change the Project. This shall be a continuing
obligation of the Applicant. Failure to adhere to the budgets, either original or as amended may result
in withdrawal of the City's commitment of funds.
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 14
5. The Applicant shall submit evidence of funding commitments from all proposed public sources. The
agencies will demonstrate fundraising commitments or committed organization resources sufficient for
the private fundraising component of the budget. In the event commitment of funds identified in the
application cannot be secured in the time frame identified in the application, the Applicant shall
immediately notify City staff or ARCH staff, and describe the actions it will undertake to secure
alternative funding and the timing of those actions subject to City staff or ARCH staff review and
approval. Upon approval of the ARCH Executive Board, prior to evidence of other funding
commitments, up to $700,000 of CDBG funding commitments may be spent on eligible land
acquisition or predevelopment expenses.
6. Funds will be in the form of a secured grant.
7. A covenant is recorded ensuring affordability for at least 50 years, with 50% AMI affordability. So
long as the property operates as a low -barrier shelter, no income testing will be required and the
property will be assumed to meet the affordability requirements. In the event that the property is ever
used for long term residential, residents will need to be screened for income eligibility.
8. Unless approved by the ARCH Executive Board, the award is made contingent on a reduction of
$700,000 in public sources (from the project application budget). This may be achieved through a
combination of value engineering and redesign, additional private capital support or other means.
9. The project will be designed to be operational full time, however it will be allowed to operate part
time, so long as a minimum level of service is comparable to existing shelter/day center programs
(November through March for shelter services, and year-round day services for a minimum of 32
hours per week). Prior to release of funds, agencies shall submit a plan for City staff or ARCH staff
review and approval, outlining a financing plan for initial level of services and plans to expand
services to full time, including efforts to seek support from the broader community, and how services
will be incrementally increased as operating funding assistance is increased.
10. Prior to release of funds, Agency shall provide a plan to City Human Services Staff and ARCH staff
for review and approval for retaining operations at Sophia's Place.
11. Submit for review and approval by ARCH and City Human Services' staff a management and services
provision plan that includes how management and services for this property and types of services and
programs that will be available for the shelter guests. Recognizing that there is limited parking on the
site and it is shared with the church, the plan shall also address how parking will be managed on an
ongoing basis, and alternative transportation options for shelter guests. The plan shall also include
management procedures to address management and operation of the premises; community and
neighbor relations procedures as well as annual monitoring procedure requirements.
12. In the event that any operating support funding levels will be reduced, the Agency shall inform City
Human Services and ARCH Staff about the impacts the proposed reduction will have on the budget
and plan for services to the homeless clients, and what steps shall be taken to address the impacts. A
new budget or services plan must be approved by City staff or ARCH staff.
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 15
2. Congregations For the Homeless, Men's Homes
Funding Request: $450,000 (Secured Grant)
18 Beds in 3 homes
Exec Board Recommendation: $150,000 (Secured Grant)
1 home (5 or 6 beds)
See attached Funding Chart for distribution of City Funds
Project Summary
Congregations for the Homeless (CFH) plans to acquire and remodel three homes each to contain six
bedrooms when completed. Each home would serve as group living for six homeless men referred
through Coordinated Entry and/or graduating out of CFH's other programs. Since 2006 CFH has operated
ten such homes on the Eastside in leased homes. Being able to buy the homes would reduce the risk of
losing houses and would ensure housing would be available to help those exiting homelessness for
decades to come.
Similar to applications for group homes or adult family homes serving the developmentally disabled, no
properties have yet been identified, but with funding made available, the agency will look for suitable
homes to acquire and remodel as necessary to accommodate the persons to be housed. The homes
acquired will probably be dated, requiring some modernization in kitchens and baths and with electrical
and mechanical systems. They may also not have 6 bedrooms to begin with, but would have the space to
create them.
This project helps "widen the opening of the back door", freeing up space within the shelters for homeless
coming off the streets, while further preparing the men for success in their long-term ability to live
independently. The agency reports a 90% success rate of men graduating through the rotating shelter and
then through such group living situations into independent living.
Funding Rationale:
The CAB and Executive Board supported this application for one home for the following reasons:
• Agency with proven track record of graduating men out of homelessness through a stepped
approach
• Agency already has 11-year history of operating these types of homes
• Uses loan, in kind and capital campaign to leverage public funds both on the capital and operating
side.
• Ownership offers more certainty of tenure
• Homes could return to residential market if no longer able to operate/no longer needed
Proposed Conditions:
Standard Conditions: Refer to list of standard conditions found at end of this memo
Special Conditions:
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page16
For the first home, the funding commitment shall continue for twelve (12) months from the date of
Council approval and shall expire thereafter if all conditions are not satisfied. An extension may be
requested to ARCH staff no later than sixty (60) days prior to the expiration date. At that time, the
applicant will provide a status report on progress to date, and expected schedule for start of
construction and project completion. ARCH staff will consider a six-month extension only on the
basis of documented, meaningful progress in bringing the project to readiness or completion.
2. Prior to searching for a home, the Applicant shall submit evidence of funding commitments from all
proposed public and private sources for each home. The Agency will demonstrate fundraising
commitments or committed organization resources sufficient for the private fundraising component of
the budget.
3. Funds shall be used by the Agency toward acquisition costs. Funds may not be used for any other
purpose unless city staff has given written authorization for the alternate use. If circumstances make 6
bedrooms infeasible, the homes' bedrooms may be reduced to no less than five bedrooms, with a
proportionate reduction in funding through the ARCH Trust Fund.
4. Prior to searching for a home, CFH shall provide an updated budget that accounts for updated Voucher
income, and shall submit to City staff or ARCH staff for approval siting criteria for homes (e.g.
specific requirements for transit access, amount of off-street parking, etc.) Unless otherwise
approved by City staff or ARCH staff the Agency shall only purchase unoccupied homes or owner -
occupied homes in order to not trigger local and federal relocation regulations. Homes shall conform
to jurisdictional requirements regarding number of unrelated individuals living together.
5. Prior to closing, the Agency shall submit an appraisal by a qualified appraiser. The appraisal shall be
equal to or greater than the purchase price.
6. Funds will be in the form of a secured grant with no repayment, so long as affordability and target
population is maintained.
7. A covenant is recorded ensuring affordability for at least 50 years, with five or six beds for homeless
individuals 30% of area median income or in the event a Voucher is available for the home, those who
qualify for Section 8 assistance at move in.
8. Unless otherwise approved by City staff or ARCH staff the development budget shall include:
• The maximum price for acquisition and construction cost combined shall not exceed $940,000. In
the event that total acquisition and rehab costs, including contingency, exceeds this amount,
additional costs shall be covered by private sources from the applicant.
• Developer fee shall not exceed $37,000.
9. Reserves will be funded out of operations at $2,500 for the first year with an annual increase of 3.5%
per year for replacement reserves.
10. All cash flow after payment of operating expenses shall be placed into a project reserve account that
can be used by the applicant for project related operating, maintenance or services expenses. Any
other use of these reserves funds must be approved by City staff or ARCH staff.
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 17
11. In the event that any operating support funding levels will be reduced, the Agency shall inform City
and ARCH Staff about the impacts the proposed reduction will have on the budget and plan for
services to the homeless clients, and what steps shall be taken to address the impacts. A new budget or
services plan must be approved by City staff or ARCH staff
12. The Agency will notify City staff or ARCH staff when they enter into an option or purchase and sale
agreement for any home, providing information on the location of the home and terms for acquiring
the home. The Agency will document that the home complies with City occupancy requirements, and
is consistent with the Agency siting criteria. No home considered for acquisition will be within two
blocks of another home owned by Agency unless otherwise approved by City staff or ARCH staff.
13. Prior to closing on a home, an individualized outreach plan will be submitted to City staff or ARCH
staff for review and approval. The outreach plan will include provisions such as:
• Provide written notification to neighbors upon mutual acceptance of the Purchase and Sales
Agreement to include CFH's intention to purchase the house, description of the project, and contact
number;
• Provide an opportunity for neighbors to individually and/or as a group to meet with CFH and the
service provider regarding the project; such as having an Open House after the tenants move -in and
include invitations to the neighbors.
14. Once a home is selected the Agency shall include City staff or ARCH staff in the inspection of the
property and development of the final scope of work for the rehab. The final scope of work for the
basic construction budget shall include, at a minimum, all work necessary for any correction of
substandard health and safety conditions. Any remodel work proposed will be assessed for impact on
long term value of the home in the event the home is resold on the private market. Prior to start of
construction, the Agency shall submit the final scope of work for City staff or ARCH Staff approval,
along with evidence that construction costs have been confirmed by a qualified contractor and are
within the basic construction budget. All uses of construction contingency funds must be approved by
City staff or ARCH staff prior to authorization to proceed with such work.
15. Prior to release of funds, the Agency shall submit to City or ARCH staff for review and approval drafts
of all documents related to the provision of services to residents and management of the property,
including form of lease agreement with residents. These documents shall at a minimum address:
tenant selection procedures through coordinated entry; management procedures to address tenant
needs; services provided for or required of tenants, including helping residents to increase their income
and be able to move to other housing ; rules for maintaining residency, management and operation of
the premises; how parking will be managed; community and neighbor relations procedures; a summary
of City's affordability requirements as well as annual monitoring procedure requirements.
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 18
3. Imagine Housing Esterra Park Block 6B
Funding Request: $984,000 (Deferred, Contingent Loan)
Note: In addition to the $500,000 awarded in 2016 round
124 affordable rental units/6 unrestricted rental units
Note: Project proposal also includes $4 million of other
Redmond resources (e.g. In -lieu funds)
Exec Board Recommendation: $1,234,000 (Deferred, Contingent Loan): 2017 Funds
(In addition to the $500,000 awarded in 2016 round)
$850,000 Contingency award from 2018 General Funds
Minimum 126 affordable rental units/up to 4 unrestricted rental units
See attached Funding Chart for distribution of City Funds
Project Summar:
Imagine Housing (IH), is proposing a 130-unit family rental project funded as two components linked by
amenity space to a for -profit developed component on the same parcel. The Imagine Housing project is
comprised of an approximately 50 unit (48 affordable units) 9% Tax Credit portion serving 30%, 40% and
60% AMI households and an 80 unit (78 affordable units) 4% Tax Credit portion serving 50% and 60%
AMI households. The proposal includes a request to King County to allocate 8 and potentially up to 16
Section 8 vouchers. The proposal responds to availability of King County TOD funding. There will be
set asides for homeless and disabled including 2 units to serve developmentally disabled.
The site is in the Redmond area of Bel -Red adjacent to the Overlake Transit Center and less than a half
mile away from the Overlake light rail station.
The proposed affordable building is five levels of wood construction over two levels of concrete
construction, amenity space, a roof garden, and an 11,500 square foot YMCA operated childcare facility
for up to 125 children. Imagine is co -developing the property with Pryde + Johnson, a private developer,
who will be building a 9 story, 126-unit residential structure on the same concrete podium. The market
rate development will share structured parking and share residential amenity space with the affordable
development.
This project received a $500,000 predevelopment funding commitment from ARCH member cities in the
2016 funding round. The project has subsequently been revised substantially to reduce the amount
requested from King County, and to create a partnership with a for -profit developer to develop half the site
separately. In addition to the predevelopment commitment, Redmond enacted Multi -Family Tax
Exemptions (MFTE) for Affordable Housing and created a mechanism for alternative compliance under
MFTE which is helping provide additional funding resources to support the project and reduce the funding
request to King County.
Funding Rationale:
The CAB and Executive Board supported this application and recommends funding with conditions listed
below for the following reasons:
• Over the past year, project achieved conditions associated with the Cities' predevelopment funding
commitment (e.g. Approaches to significantly reduce the request to public funders, including a
childcare center, updated budgets, progress on incorporating social investment strategy).
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page19
• Experienced applicant
• Development targets range of lower income family households including set asides for homeless
and disabled.
• Would increase range of affordability and number of affordable units within the master planned
development
• Site has access to transit, shopping and is within a major employment area
• Incorporates a child development center and shared outdoor courtyard
• Project leverages a substantial amount of Tax Credit equity
• City provided additional resources from in -lieu payments from another private project as tools to
help realize the project while reducing the need for other public funding support
• Utilizes County TOD funds
• Imagine was successful in finding a for -profit development partner to utilize half the lot
Proposed Conditions:
Note: These conditions replace the funding conditions associated with the predevelopment funding award
made during the 2016 Trust Fund application round.
Standard Conditions: Refer to list of standard conditions found at end of this memo
Special Conditions:
1. The funding commitment shall continue for eighteen (18) months from the date of Council approval
and shall expire thereafter if all conditions are not satisfied. An extension may be requested to ARCH
staff no later than sixty (60) days prior to the expiration date. At that time, the applicant will provide a
status report on progress to date, and expected schedule for start of construction and project
completion. ARCH staff will consider up to a 12-month extension only on the basis of documented,
meaningful progress in bringing the project to readiness or completion. At a minimum, the applicant
will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable
period of time.
2. Funds shall be used by the Agency for acquisition, bridge and permanent loan fees, professional
services costs, construction and construction contingency. Funds may not be used for any other
purpose unless city staff has given written authorization for the alternate use. Prior to spending of City
resources designated aside for construction contingency Agency must obtain approval in advance by
City staff or ARCH staff. If after the completion of the project there are budget line items with
unexpended balances, the public funders shall approve adjustments to the project capital sources,
including potentially reductions in public fund loan amounts. Upon Executive Board approval, up to
$250,000 of the funding award may be used for land option payments prior to meeting all the funding
conditions required for the balance of funds.
3. As part of the $1,234.000 funding award, $250,000 is a contingency award, subject to final approval of
the ARCH Executive Board. Prior to consideration by the Executive Board of a contingency award,
the applicant will provide updated project design, including updated site related costs, updated
development and operating budgets, project schedule for review by the ARCH CAB and final approval
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 110
by the ARCH Executive Board for the final amount and uses of contingency award. If awarded, all or
some portion of the contingency award will be used for construction contingency.
4. In addition to the $1,234,000 funding award, up to an additional $850,000 as a contingency award
subject to final approval of the ARCH Executive Board. Prior to consideration by the Executive Board
of a contingency award, the applicant will provide updated project design, including updated site
related costs, updated development and operating budgets, project schedule for review by the ARCH
CAB and final approval by the ARCH Executive Board for the final amount and uses of contingency
award. If awarded, all or some portion of the contingency award will be used for construction
contingency.
5. Funds will be in the form of a deferred, contingent loan. Loan terms will account for various factors,
including loan terms from other fund sources and available cash flow. Final loan terms shall be
determined prior to release of funds and must be approved by City staff or ARCH Staff. Based on the
preliminary development budget, it is anticipated that loan payments will be based on a set repayment
schedule, and begin after repayment of deferred developer fee and impact investment loan
(approximately year 10), with 1 % interest. The terms will also include a provision for the Agency to a
deferment of a payment if certain conditions are met (e.g. low cash flow due to unexpected costs).
Any requested deferment of loan payment is subject to approval by City staff or ARCH Staff, and any
deferred payment would be repaid from future cash flow or at the end of the amortization period.
6. The net developer fee shall be established at the time of finalizing the Contract Budget based on the
ARCH Net Developer Fee formula for each Tax Credit component. Net developer fee is defined as
that portion of the developer fee paid out of capital funding sources and does not include the deferred
portion which is paid out of cash flow from operations after being placed in service.
7. Until such time as any deferred developer fee structured into the sources is fully repaid, all cash flow
after payment of operating expenses and debt service, shall be used to repay the deferred developer fee
or project reserves as approved by City staff or ARCH Staff.
8. A covenant is recorded ensuring affordability for at least 50 years, with affordability as shown in the
following table. Affordability levels will be defined using the requirements for tax credits, and utility
costs will be based on King County Housing Authority allowances, unless otherwise approved by City
staff or ARCH staff. (The matrix is subject to change dependent on final design and funding, but shall
generally reflect the following)
Median Income Level Studio 1 Bedrm 2 Bedrm 3 Bedrm Total
Extremely Low Income
7
8
6 (5)**
3 (3)**
24
30% AMI
Very Low Income
3
4
4
1
12
31-40% AMI
Low Income
3
17
1
0
21
41— 50%
Moderate Income
5
51
14
1
71
50-60% AMI
ARCH Trust Fund Exec Board Memo
January 11, 2018
PageIM
Total 18 82 25 5 128
* 2 of the 2 or 3 bedroom units will serve households including developmentally disabled
individuals.
* There will be a total of up to 130 units and up to 4 of units can have unrestricted rents. The final
contract will update the affordability chart to account for the non -restricted units which will be
approved by City staff or ARCH staff.
** 8 units will be supported with project -based Section 8 vouchers to serve homeless households.
9. Based on the availability of adequate support services, up to 50% of the units in the 9% Tax Credit
portion of the project (approximately up to 50 units) may be set aside for occupancy by households for
households transitioning out of homelessness unless otherwise approved by City or Administering
Agency. Should rental subsidy or services funding no longer be available for homeless, and project
operations are jeopardized, developer shall notify funders and may be relieved from the requirement to
set aside units until such time as funding again is available.
10. Submit documentation of the City's approval of the parking provisions.
11. Submit for review the agreements between owners and leased childcare space including information
on capital funding, lease terms and management.
12. Submit for City staff or ARCH staff approval a management and services plan which includes sharing
of physical space and services among the various components including the 4 percent and 9 percent tax
credit portions of the affordable housing, the market -rate development and the childcare space, parking
management which will address issues such as: coordination of parking between different components
of the project, including any shared parking and managing overall amount of cars relative to available
parking. It shall also include how the Agency will do local targeted marketing outreach such as local,
media business and community organizations.
4. King County Housing Authority Trailhead
Funding Request: $2,000,000 (Deferred, Contingent Loan)
155 affordable rental units
Note: Project proposal also includes approximately $2.7
million of other Issaquah resources (fee waivers)
Exec Board Recommendation: $2,000,000 (Deferred, Contingent Loan)
See attached Funding Chart for distribution of City Funds
Project Summar:
King County Housing Authority (KCHA) was selected through City of Issaquah RFP process for
developing a city identified site in Central Issaquah. KCHA is proposing to build The Trailhead, 155 units
of affordable TOD (transit Oriented Development) housing in Central Issaquah. The Trailhead is a part of
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 112
the larger Central Issaquah TOD Project, which KCHA is undertaking in partnership with Spectrum
Development Solutions. It is located on a site adjacent to the Issaquah Transit Center located in Central
Issaquah. In addition to The Trailhead, the Central Issaquah TOD Project will also include 200 units of
market rate and affordable units to be developed by Spectrum, a new child care center, an adult family
home for persons with special needs, community space and commercial space for supportive services.
The Trailhead will offer studio, I -bedroom, 2-bedroom and 3-bedroom apartments affordable to families
earning less than 60% of the area median income immediately adjacent to a hub for frequent, all -day
transit service. Twenty-four of the units will be supported by Section 8.
The completed development will serve as a mixed -use, mixed -income catalyst project for the whole
neighborhood, an area targeted by the City for redevelopment. The property is within walking distance of
shopping, public transportation, employment and services.
The Trailhead will be located in the north tower of the Central Issaquah TOD Development. The tower
will be five stories of wood -frame construction over ground floor commercial and underground parking.
Residential amenities, including an exercise space, a community room, business center, bike facilities and
a children's playground, will be shared between The Trailhead and the Spectrum residential development.
The site will feature a mid -block pedestrian connector to the Issaquah Transit Center, a new public plaza
in the southwest corner of the site, a new street with pedestrian and bike lanes along the east side of the
site, and an enhanced wetland along the west side.
Funding Rationale:
The CAB and Executive Board supported this application and recommends funding with conditions listed
below for the following reasons:
• Creates 155 units affordable to households at or below 50% and 60% of area median income, with
24 at 40% of median income that will be supported with vouchers
• Meets City of Issaquah goals for area
• Experienced applicant
• Site has convenient access to transit, shopping, services and is are located downtown
• Takes advantage of King County TOD funds being made available in the current round
Proposed Conditions:
Standard Conditions: Refer to list of standard conditions found at end of this memo
Special Conditions:
The funding commitment shall continue for twenty-four (24) months from the date of Council
approval and shall expire thereafter if all conditions are not satisfied. An extension may be requested
to ARCH staff no later than sixty (60) days prior to the expiration date. At that time, the applicant will
provide a status report on progress to date, and expected schedule for start of construction and project
completion. ARCH staff will consider up to a 12-month extension only on the basis of documented,
meaningful progress in bringing the project to readiness or completion. At a minimum, the applicant
will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable
period of time.
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 113
2. Funds shall be used by the Agency for construction costs, including construction contingency. Funds
may not be used for any other purpose unless City staff or ARCH staff has given written authorization
for the alternate use. $500,000 of the award is a contingency award subject to final approval of the
ARCH Executive Board. By October 2018, KCHA will provide updated project design, including
updated site and parking related costs, updated development and operating budgets including terms for
the city' s loan and the Agency's subordinate loan, project schedule; and status of other uses on the
property for review by the ARCH CAB and final approval by the ARCH Executive Board for the final
amount and uses of contingency award.
3. In the event any of the funding award is reserved for construction contingency, that portion must be
approved in advance by City staff or ARCH staff. If after the completion of the project there are
unexpended contingency balances, the public fenders shall approve adjustments to the project capital
sources, including potentially reductions in public fund loan balances.
4. Funds will be in the form of a deferred, contingent loan. Loan terms will account for various factors,
including loan terms from other fund sources, including the sponsor subordinate loan and available
cash flow. It is anticipated the loan terms will include 1% interest, and ability to defer initial payment
until certain conditions are met such as repayment of deferred developer fee. Final loan terms shall be
determined when the updated budget is provided and reviewed by the Executive Board and prior to
release of funds and must be approved by City staff or ARCH staff. The terms may also include a
provision for the Agency to a deferment of a payment if certain conditions are met (e.g. low cash flow
due to unexpected costs). Any requested deferment of loan payment is subject to approval by City
staff or ARCH staff, and any deferred payment would be repaid from future cash flow or at the end of
the amortization period.
5. KCHA will provide a sponsor subordinate loan in the approximate amount of $3,840,000. The final
amount and terms of repayment will be finalized at the time of review and approval of the contingency
portion of the funding commitment. Terms are anticipated to account for available cash flow and
repayment of the ARCH loan.
6. Until such time as the any deferred developer fee structured into the sources is fully repaid, all cash
flow after payment of operating expenses and debt service, shall be used to repay the deferred
developer fee or project reserves as approved by City Staff.
7 A covenant is recorded ensuring affordability for at least 50 years, with affordability as shown in the
following table. Affordability levels will be defined using the requirements for tax credits, and utility
costs will be based on King County Housing Authority allowances, unless otherwise approved by City
staff or ARCH Staff. (The matrix is subject to change dependent on final design, but shall generally
reflect the following:)
Median Income Level Studio 1 Bedrm 2 Bedrm 3 Bedrm Total
Section 8 (40% AMI)
0
0
0
24
24
Moderate Income
60% AMI
5
80
40
1
131
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 114
Total 4 1 80 1 40 1 30 1 155
8. Submit documentation of the City's approval of the provision of parking for project.
9. Submit for City staff or ARCH staff approval a management and marketing plan which includes
sharing of physical space and services among the various components including tax credit structure,
market -rate development, special needs unit and community space and parking management which
will address issues such as: coordination of parking between different components of the project,
including any shared parking and managing overall amount of cars relative to available parking both
through site features (e.g. bike storage) and management practices. It shall also include how the
Agency will do local targeted marketing outreach such as local, media business and community
organizations.
5. King County Housing Authority Houghton Apartments
Funding Request: $2,827,250 (Secured Grant)
15 Units as Public housing
Exec Board Recommendation: $2,827,250 (Secured Grant) — Using City of Kirkland sources such
as In -lieu, REET
Project Summary
Houghton Apartments is a two -building multi -family property comprising 15 units located in Kirkland
which the City of Kirkland acquired in 2015 with short-term financing which must be repaid in 2018. The
buildings were constructed in 1967 and 1978, and in need of a fair amount of rehabilitation.
King County Housing Authority is in discussions with the City of Kirkland to purchase the site from the
City in order to help the City preserve the fifteen apartment units at this site. KCHA is willing to acquire
the site at the City's Loan balance of $4.7 million, which is based on the property's appraised value. The
purchase would in part be funded by a swap out of a KCHA-owned commercial property that the City
wishes to acquire for a Public Works facility. With the KCHA acquisition, the property will be positioned
as public housing, which translates into rents that are 30% of the household's actual income; the rest is
subsidized by the federal government.
The property is currently managed by the City of Kirkland and most units are occupied. Rents are
reported to be below market -rate. It is expected that some portion of existing tenants will income qualify
and be eligible to receive public assistance through the Housing Authority. Any resident not income
eligible for public assistance, will be allowed to remain at the property and continue to pay current rents.
Upon turnover, those units will be made available for residents eligible for KCHA's public assistance.
Each building at Houghton Court is wood frame construction and some units have wood frame balconies
at upper level units. KCHA will do some limited high priority rehabilitation upon acquisition ($150,000),
and will be making other significant capital upgrades in the next few years of ownership. KCHA has
committed to addressing the issues called out in the Capital Needs Assessment, including roof, window
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 115
and siding work, replacement of aluminum wiring and interior apartment repairs. In addition, KCHA will
make other improvements and upgrades, including enhancement to the building exteriors and landscaping.
Funding Rationale:
The CAB and Executive Board supported this application and recommends funding with conditions listed
below for the following reasons:
• Meets Houghton Community Council Objectives
• Preserves 15 existing affordable units at risk of being redeveloped
• Experienced applicant
• Site has convenient access to transit, shopping, services and is are located downtown
• Rents to be limited to 30% of actual household income
• Will result in city in -lieu fees being used in the City and in an area with limited affordable housing,
and will result in more affordable units than would have been provided by the projects paying the
in -lieu fees.
• Allows city to secure another property for Public Works facility needed by the City of Kirkland.
Proposed Conditions:
Special Conditions (none of the standard conditions applicableh
1. The funding commitment shall continue for six (6) months from the date of Council approval and shall
expire thereafter if all conditions are not satisfied. An extension may be requested to City staff no later
than sixty (60) days prior to the expiration date. City staff will grant up to a 12-month extension.
2. Funds shall be used by the Agency towards acquisition. Funds may not be used for any other purpose
unless city staff has given written authorization for the alternate use.
3. Funds will be in the form of a grant with no repayment, so long as affordability and target population
is maintained. The funding shall be secured with a promissory note with the Agency.
4. Existing residents will not be required to relocate. Any residents that are not eligible to receive federal
assistance will have future rent increases limited to the lesser of market value, or an annual increase
that does not exceed the standard increase as customarily applied on annual basis to rents in KCHA's
workforce housing portfolio.
5. Construction work called out in the Capital Needs Assessment shall be carried out within 5 years of
acquisition using only federal, HUD funds.
6. A covenant, subordinate to HUD's Declaration of Trust and any other subsequent covenant or
regulatory agreement related to federal operating assistance, is recorded ensuring affordability for at
least 50 years, with affordability as shown in the following table. Units shall be made available as
public housing. In the event the property no longer is public housing or funded through a successor
HUD Program, affordability levels will be set at rents not to exceed 60% AMI adjusted for household
size with utility costs based on King County Housing Authority allowances, unless otherwise approved
by City Staff. Affordability levels may be increased up to 80% of AMI in the event long-term
ARCH Trust Fund Exec Board Memo
January 11, 2018
Page 116
economic viability of the project is in jeopardy, as reasonably determined by KCHA, and upon City
staff approval which shall not be reasonably withheld.
7. Submit monitoring reports quarterly through completion of project as requested, and annually
thereafter. So long as the property continues to receive federal operating assistance, a certification by
KCHA that federal funds continue to support the operation of the property shall satisfy this annual
reporting requirement.
Standard Conditions applicable to all proiects (unless superseded by specific conditions for
individual proiect):
The Applicant shall provide revised development and operating budgets based upon actual funding
commitments, which must be approved by city staff. If the Applicant is unable to adhere to the
budgets, City or Administering Agency must be immediately notified and (a) new budget(s) shall be
submitted by the Applicant for the City's approval. The City shall not unreasonably withhold its
approval to (a) revised budget(s), so long as such new budget(s) does not materially adversely change
the Project. This shall be a continuing obligation of the Applicant. Failure to adhere to the budgets,
either original or as amended may result in withdrawal of the City's commitment of funds.
2. The Applicant shall submit evidence of funding commitments from all proposed public sources. In the
event commitment of funds identified in the application cannot be secured in the time frame identified
in the application, the Applicant shall immediately notify City or Administering Agency, and describe
the actions it will undertake to secure alternative funding and the timing of those actions subject to
City or Administering Agency's review and approval.
3. In the event federal funds are used, and to the extent applicable, federal guidelines must be met,
including but not limited to: contractor solicitation, bidding and selection; wage rates; and Endangered
Species Act (ESA) requirements. CDBG funds may not be used to repay (bridge) acquisition finance
costs.
4. The Applicant shall maintain documentation of any necessary land use approvals and permits required
by the city where the projects are located.
5. Submit monitoring reports quarterly through completion of the project, and annually thereafter. Submit
a final budget upon project completion. If applicable, submit initial tenant information as required by
City or Administering Agency.
ARCH HOUSING TRUST FUND (HTF) APPLICATIONS
2017
Housing Type/
Project
Duration
Total cost
HTF
Project
Applicant
Recommendation
Income
Location
of benefit
per unit
p
cost per
P
completion
p
(Grant/Loan)
# of units/
Served
affordable unit
bdrms
Catholic Community
$1,224,000
Homeless Shelter
30% AMI
11920 NE 80th
50 years
$84,061/bed
$12,490/bed
March 2019
Services of Western
Secured Grant
(Individual Women,
St
WA with The Sophia
Families)
Kirkland
Way
Women and Family
98 beds
Shelter
Congregations For
$150,000
Homeless men
30% AMI
To be
50 years
$174,556/bed
$25,000/bed
December
the Homeless
Secured Grant
determined
2018
Men's Housing
One 5- or 6-
bedroom group
home
Imagine Housing
$1,234,000
Family Rental
24@ 30%
156' Ave NE @
50 years
$331,838/unit
$9,641/unit
August 2020
Esterra
Contingent Loan
Housing
12@40%
NE 27 h St
(In addition to
21 @ 50%
Redmond
$500,000 awarded in
130 units
71 @60%
2016 round)
(23 homeless units
2@Mkt
2 DD units)
King County
$2,000,000
Family Rental
24 @ 40%
1550 NW
50 years
$429,775/unit
$12,903/unit
March 2021
Housing Authority
Loan
Housing
131 @ 60%
Newport Way
Trailhead
Issaquah
155 units
ARCH HOUSING TRUST FUND, 2017
CFH
Men's Housing
Imagine Housing
Esterra - Combined
CCS
Shelter
KCHA
Trailhead
KCHA
Houghton
TOTAL
2016 ARCH Commitment
2017 ARCH Recommendation
2017 General Funds
CDSG
Sub -total
2018 General Funds
Other City Resources (Estimate)
Sut-Total
* Combination of fee waivers, land
$150,000
$150,000
$4,000
sale proceeds, BEET, in -lieu
fees.
$500,000
$1,234,000
$1,234,000
$850,000
$4,000,000
$505,000
$719,000
$1,224,000
$1,290,000
$2,000,000
$2,000,000
$2,710,500
$0
$2,827,250
$500,000
$3,889,000
$719,000
$10,831,750
CITY TOTAL
$
154,000
15%
$
6,584,000
15%
$
2,514,000
31%
$ 4,710,500
7%
$
2,827,250
60%
$
16,789,750
King County
HOF/HOME/2060
TOD
Other Vets/HS
$
$
-
133,333
$407,085
$5,592,915
$0
$2,000,000
$10,000,000
$500,000
$15,500,000
$2,133,333
KC TOTAL
$
133,333
13%
$
6,000,000
14%
$
2,000,000
24%
$ 10,000,000
15%
$
-
0%
$
18,133,333
WA HTF
Legislative Earmark
$133,333
$1,700,000
$
$2,000,000
350,000
$3,833,333
$350,000
WA TOTAL
$
133,333
13%
$
1,700,000
4%
$
2,350,000
29%
$ -
0%
$
-
0%
$
4,183,333
Tax Credits
$0
0%
$17,610,000
41%
0%
$19,910,000
30%
0%
$37,651,206
Bonds
0%
$6,615,000
15%
0%
$25,155,000
38%
0%
$31,855,000
Bank Loans
$485,000
46%
$3,523,000
8%
0%
0%
0%
$3,799,951
Deferred Developer Fee
0%
$1,207,000
3%
0%
$3,000,000
5%
0%
$4,229,000
Capital Campaign
$141,667
14%
$0
0%
$1,200,000
15%
0%
0%
$1,341,667
Other
0%
$750,000
2%
$174,000
2%
$3,839,700
6%
$1,915,000
40%
$6,428,700
OTHER TOTAL
$
626,667
60%
$
29,705,000
69%
$
1,374,000
17%
$ 51,904,700
78%
$
1,915,000
40%
$
85,305,524
TOTAL RESOURCES
$
1,047,333 1
100%
$
43,139,000
100%
$
8,238,000 7
1000/.
$ 66,615,200 1
100%1
$
4,742,250
100%
$
123,577,940
ECONOMIC SUMMARY:
CATHOLIC COMMUNITY SERVICES / KIRKLAND SHELTER
1. Applicant/Description:
2. Project Location:
3. Financin Information:
New construction of 98 bed shelter and day center for individual
homeless women and homeless households
11920 NE 80th St, Kirkland
Funding Source
Funding Amount
Commitment
ARCH / Cities
$1,224,000
Secured Grant
Plus—$1,290,000
Kirkland (e.g. REET,
in -kind, fee waivers)
King County
$2,000,000
To be applied for in 2018
Commerce Trust Fund
$2,350,000
$350,000 Legislative earmark
committed; remainder- apply in 2018
Private Debt
$0
Capital Campaign
$1,200,000
To be raised in 2018
Savings/Other Capital
$174,000
TOTAL
$8,238,000
4. Development Budget:
ITEM
TOTAL
PER BED
@ 98 units
Acquisition
$605,000
$6,173
Construction
$6,219,500
$63,464
Design
$374,000
$3,816
Consultants
$50,800
$518
Developer fee
$400,000
$4,082
Finance costs
$31,500
$321
Reserves
$0
$0
Permits/Fees/Other
$557,200
$5,685
TOTAL
$8,238,000
$84,061
5. Debt Service Coverage: Secured Grant,
6. Security for City Funds:
• A recorded covenant to ensure affordability and use for targeted population for 50 years.
• A promissory note secured by a deed of trust. The promissory note will require repayment of the loan
amount upon non-compliance with any of the loan conditions.
ECONOMIC SUMMARY:
Congregations For the Homeless / Men's Homes
1. Applicant/Description:
2. Project Location:
3. Financing Information:
Acquisition of 1 single family home to serve 5 - 6 homeless men each
ARCH Sphere of Influence
Funding Source
Funding Amount
Commitment
ARCH
$150,000
King County
$133,333
To be applied for in 2018
Commerce Trust Fund
$133,333
To be applied for in 2018
Tax Credits
$0
Private Debt
$485,000
To be applied for in 2018
Capital Campaign
$141,667
Committed
Other (city permit fees)
$4,0000
Applied for when home identified
TOTAL
$1,047,333
4. Development Bud et:
ITEM
TOTAL
PER BED
@ 6 beds
Acquisition
$756,000
$126,000
Construction
$183,000
$30,500
Design
$11,000
$1,833
Consultants
$10,833
$1,806
Developer fee
$37,333
$6,222
Finance costs
$11,500
$1,917
Reserves
$16,000
$2,667
Permits/Fees/Other
$21,667
$3,611
TOTAL
$1,047,333
$174,556
5. Debt Service Coverage: Secured Grant.
6. Security for City Funds:
• A recorded covenant to ensure affordability and use for targeted population for 50 years.
• A promissory note secured by deed of trust. The promissory note will require repayment of the loan
amount upon non-compliance with any of the loan conditions.
7. Rental Subsidy: 1 Section 8 Voucher per home
ECONOMIC SUMMARY:
IMAGINE HOUSING / ESTERRA BLOCK 613
1. Applicant/Description:
2. Project Location:
3. Financing Information:
New construction of 128 affordable plus 2 unrestricted rental units for
households including 23 units for the homeless, 2 for developmentally
disabled
156th Ave NE and NE 27th St, Redmond
Funding Source
Funding
Amount
Commitment
ARCH / Cities
$1,234,000
$500,000
Plus $4,000,000
2017 ARCH Funding Round
2016 ARCH Funding Round
City Funds (In -lieu funds)
King County
$6,000,000
Awarded in 2017
Commerce Trust Fund
$1,700,000
To be applied for in 2018
Tax Credits
$17,610,000
To be applied for in 2018
Private Debt
$10,138,000
To be applied for in 2018
Impact Investment
$750,000
To be raised in 2018
Deferred Developer Fee/Other
$1,207,000
Committed
TOTAL
$43,139,000
4. Development Budget:
ITEM
TOTAL
PER UNIT
Acquisition
$5,617,500
$43,212
Construction
$28,562,300
$219,710
Design / Consultants
$1,001,500
$7,704
Developer fee
$3,057,000
$23,515
Finance costs
$2,417,200
$18,594
Permits/Fees/Reserves/Other
$2,483,500
$19,104
TOTAL
$43,139,000
$331,838
5. Debt Service Coverage: Debt service payments will be finalized upon commitment. Basic terms will
include a 50-year amortization, deferral of payments until deferred developer fee is repaid, 1 % interest,
and ability to request a deferral of annual payment to preserve economic integrity of property.
6. Security for City Funds:
• A recorded covenant to ensure affordability and use for targeted population for 50 years.
• A promissory note secured by a deed of trust. The promissory note will require repayment of the loan
amount upon non-compliance with any of the loan conditions.
7. Rental Subsidy: 8 Section 8 Vouchers
ECONOMIC SUMMARY:
1. Applicant/Description:
2. Protect Location:
3. Financing Information:
KING COUNTY HOUSING AUTHORITY / TRAILHEAD
New construction of 155 affordable rental units for households
1550 NW Newport Way, Issaquah
Funding Source
Funding Amount
Commitment
ARCH / City
$2,000,000
Plus $2,710,500
ARCH Trust Fund 2017:
City Fee Waivers
King County
$10,000,000
Awarded in 2017
Tax Credits
$19,910,000
To be applied for in 2018
Private Debt
$25,155,000
To be applied for in 2018
KCHA soft debt
$3,839,700
Committed
Deferred Developer Fee/GP
Equity/Other
$3,000,000
Committed
TOTAL
$66,615,200
4. Development Budget:
ITEM
TOTAL
PER UNIT @
155 units
Acquisition
$3,422,184
$43,884
Construction
$45,588,170
$294,762
Design
$2,925,852
$18,876
Consultants
$2,260,181
$14,582
Developer fee
$6,839,744
$44,127
Finance costs
$2,407,422
$15,532
Permits/Fees/Other
$3,071,616
$19,817
TOTAL
$66,615,169
$429,775
5. Debt Service Coverage: Debt service payments will be finalized upon final funding commitments.
Basic terms will include a 50-year amortization, 1 % interest, and ability to request a deferral of annual
payment to preserve economic integrity of property.
6. Security for City Funds:
• A recorded covenant to ensure affordability and use for targeted population for 50 years.
• A promissory note secured by a deed of trust. The promissory note will require repayment of the loan
amount upon non-compliance with any of the loan conditions.
7. Rental Subsidy: 24 Section 8 Vouchers assigned by KCHA
FIGURE 1
ARCH: EAST KING COUNTY TRUST FUND SUMMARY
LIST OF CONTRACTED PROJECTS FUNDED (1993 - 2016)
Units/Bed Pct of Total Distribution
Project Location Owner s Funding Allocation Target
1. Family Housin
Andrews Heights Apartments
Bellevue
Imagine Housing
24
$400,000
Garden Grove Apartments
Bellevue
DASH
18
$180,000
Overtake Townhomes
Bellevue
Habitat of EKC
10
$120,000
Glendale Apartments
Bellevue
DASH
82
$300,000
Wildwood Court Apartments
Bellevue
DASH
36
$270,000
Somerset Gardents (Kona)
Bellevue
KC Housing Authority
198
$700,000
Pacific Inn
Bellevue *
Pacific Inn Assoc. *
118
$600,000
Eastwood Square
Bellevue
Park Villa LLC
48
$600,000
Chalet Apts
Bellevue
Imagine Housing
14
$163,333
Andrew's Glen
Bellevue **
Imagine Housing
10 /11
$424,687
August Wilson Place
Bellevue "'
LIHI ***
45
$800,000
YWCA Family Apartments
Bellevue
YWCA
12
$100,000
30 Bellevue
Bellevue
Imagine Housing
29
$672,865
Parkway Apartments
Redmond
KC Housing Authority
41
$100,000
Habitat - Patterson
Redmond **
Habitat of EKC **
24
$446,629
Avon Villa Mobile Home Park
Redmond **
MHCP **
93
$525,000
Terrace Hills
Redmond
Imagine Housing
18
$442,000
Village at Overtake Station
Redmond **
KC Housing Authority **
308
$1,645,375
Summerwood
Redmond
DASH
166
$1,187,265
Esterra Park
Redmond
Imagine Housing
125 /240
$500,000
Coal Creek Terrace
Newcastle **
Habitat of EKC **
12
$240,837
Rose Crest (Talus)
Issaquah **
Imagine Housing **
40
$918,846
Mine Hill
Issaquah **
Imagine Housing
28
$482,380
Clark Street
Issaquah
Imagine Housing
30
$355,000
Lauren Heights (Iss Highlands)
Issaquah **
Imagine Housing/SRI **
45
$657,343
Habitat Issaquah Highlands
Issaquah **
Habitat of EKC **
10
$318,914
Issaquah Family Village I
Issaquah **
YWCA **
87
$4,382,584
Issaquah Family Village II
Issaquah **
YWCA **
47
$2,760,000
Greenbrier Family Apts
Woodinville **
DASH **
50
$286,892
Crestline Apartments
Kirkland
Shelter Resources
22
$195,000
Plum Court
Kirkland
DASH
61 /66
$1,000,000
Francis Village
Kirkland
Imagine Housing
15
$375,000
Velocity
Kirkland **
Imagine Housing **
46
$901,395
Copper Lantern
Kenmore **
LIHI **
33
$452,321
Highland Gardens (Klahanie)
Sammamish
Imagine Housing
54
$291,281
Habitat Sammamish
SammamisF **
Habitat of KC ***
10
$972,376
REDI TOD Land Loan
Various
Various
100 est
$500,000
Homeowner Downpayment Loan
Various
KC/WSHFC/ARCH
87 est
$615,000
SUB -TOTAL
2,196
$25,882,324 54.0% (56%)
2. Senior Housing
Cambridge Court
Bellevue
Resurrection Housing
20
$160,000
Ashwood Court
Bellevue
DASH/Shelter Resources *
50
$1,070,000
Evergreen Court (Assisted Living)
Bellevue
DASH/Shelter Resources
64 /84
$2,480,000
Bellevue Manor / Harris Manor
Bellevue / Redmond
KC Housing Authority
105
$1,334,749
Vasa Creek
Bellevue
Shelter Resources
50
$190,000
Riverside Landing
Bothell **
Shelter Resources
50
$225,000
Kirkland Plaza
Kirkland
Imagine Housing
24
$610,000
Athene (Totem 2)
Kirkland **
Imagine Housing ***
73
$917,701
Heron Landing
Kenmore
DASH/Shelter Resources
50
$65,000
Ellsworth House Apts
Mercer Island
Imagine Housing
59
$900,000
Providence Senior Housing
Redmond **
Providence **
74
$2,330,000
Greenbrier Sr Apts
Woodinville **
DASH/Shelter Resources **
50
$196,192
SUB -TOTAL
669
$10,478,642 21.9% (19%)
FIGURE 1
ARCH: EAST KING COUNTY TRUST FUND SUMMARY
LIST OF CONTRACTED PROJECTS FUNDED (1993 - 2016)
Units/Bed Pct of Total Distribution
Project Location Owner s Funding Allocation Target
3. Homeless/Transitional Housin
Hopelink Place
Bellevue **
Hopelink **
20
$500,000
Chalet
Bellevue
Imagine Housing
4
$46,667
Kensington Square
Bellevue
Housing at Crossroads
6
$250,000
Andrew's Glen
Bellevue
Imagine Housing
30
$1,162,500
August Wilson Place
Bellevue ***
LIHI ***
12
$200,000
Sophia Place
Bellevue
Sophia Way
20
$250,000
30 Bellevue
Bellevue **
Imagine Housing
31
$720,084
Men's Shelter
TBD
Congregation for Homeless ((
50
$700,000
Dixie Price Transitional Housing
Redmond
Hopelink
4
$71,750
Avondale Park
Redmond
Hopelink (EHA)
18
$280,000
Avondale Park Redevelopment
Redmond **
Hopelink (EHA) **
60
$1,502,469
Petter Court
Kirkland
KITH
4
$100,000
Francis Village
Kirkland
Imagine Housing
45
$1,125,000
Velocity
Kirkland **
Imagine Housing ***
12
$225,349
Athene (Totem 2)
Kirkland **
Imagine Housing
18
$229,425
Rose Crest (Talus)
Issaquah **
Imagine Housing **
10
$229,712
Lauren Heights (Iss Highlands)
Issaquah **
SRI **
5
$73,038
Issaquah Family Village I
Issaquah **
YWCA **
10
$503,745
SUB -TOTAL 341 $8,169,739
4. Special Needs Housina
My Friends Place
K.C.
EDVP
6 Beds
$65,000
Stillwater
Redmond
Eastside Mental Health
19 Beds
$187,787
Foster Care Home
Kirkland
Friends of Youth
4 Beds
$35,000
FOY New Ground
Kirkland
Friends of Youth
6 Units
$250,000
DID Group Home 7
Kirkland
Community Living
5 Beds
$100,000
Youth Haven
Kirkland
Friends of Youth
10 Beds
$332,133
FOY Transitional Housing
Kirkland **
Friends of Youth **
10 Beds
$247,603
FOY Extended Foster Care
Kirkland **
Friends of Youth **
10 Beds
$112,624
DID Group Home 4
Redmond
Community Living
5 Beds
$111,261
DID Group Homes 5 & 6
Redmond/KC (Bothell)
Community Living
10 Beds
$250,000
United Cerebral Palsy
Bellevue/Redmond
UCP
9 Beds
$25,000
DID Group Home
Bellevue
Residence East
5 Beds
$40,000
AIDS Housing
Bellevue/Kirkland
AIDS Housing of WA
10 Units
$130,000
Harrington House
Bellevue
AHA/CCS
8 Beds
$290,209
DID Group Home 3
Bellevue
Community Living
5 Beds
$21,000
Parkview DID Condos III
Bellevue
Parkview
4
$200,000
30 Bellevue
Bellevue **
Imagine Housing
2
$47,219
IERR DID Home
Issaquah
IERR
6 Beds
$50,209
FFC DID Homes
NE KC
FFC
8 Beds
$300,000
Oxford House
Bothell
Oxford/Compass Ctr.
8 Beds
$80,000
Parkview DID Homes VI
Bothell/Bellevue
Parkview
6 Beds
$150,000
Parkview DID Homes XI
TBD
Parkview
3 Beds
$200,800
FFC DID Home II
Kirkland
FFC
4 Beds
$168,737
SUB -TOTAL
17.0% (13%)
163 Beds/Units $3,394,582 7.1% (12%)
TOTAL 3,369 $47,925,286 100.0%
* Funded through Bellevue Downtown Program 10%
** Also, includes in -kind contributions (e.g. land, fee waivers, infrastructure improvements)
*** Amount of Fee Waiver still to be finalized
2017 HOUSING TRUST FUND: PROPOSED CITY FUNDING RECOMMENDATIONS AND SOURCES
I 1PROJECT
Imagine Housing
CCS
CFH
KCHA
Family/Women
Men Group
Esterra Park
Shelter
Home
Trailhead (Iss)
TOTAL
Recommendation
2016 (Approved Commitment)
$
500,000
2017 (General funds & CDBG)
$
1,234,000
$
1,224,000
$
150,000
$
2,000,000
$
4,608,000
2018 General Funds
$
850,000
$
850,000
Other City Resources (Est.)***
$
4,000,000
$
1,290,000
$
4,000
$
2,710,000
$ 10,831,250
Combination of fee waivers, land sale proceeds, REET, in -lieu fees.
Individual City Funding
Sub -Regional CDBG (2017)
$
222,147
$
222,147
Bellevue
2017 General Funds
$
498,264
$
203,669
$
60,567
$
807,558
$
1,570,058
2018 General Funds
$
248,485
$
248,485
Bothell
2017 General Funds
$
15,860
$
6,483
$
1,928
$
25,705
$
49,976
2018 General Funds
$
30,156
$
30,156
Clyde Hill
2017 General Funds
$
14,334
$
5,859
$
1,742
$
23,231
$
45,166
2018 General Funds
$
15,078
$
15,078
Hunts Point
2017 General Funds
$
1,799
$
735
$
219
$
2,915
$
5,667
2018 General Funds
$
1,508
$
1,508
Issaquah
2017 General Funds
$
47,514
$
19,422
$
5,776
$
77,008
$
149,719
2018 General Funds
$
60,312
$
60,312
Kenmore
2017 General Funds
$
31,951
$
13,060
$
3,884
$
51,784
$
100,679
2018 General Funds
$
18,094
$
18,094
Kirkland
CDBG (2017)
$
276,279
$
276,279
2017 General Funds
$
311,243
$
127,223
$
37,833
$
504,446
$
980,746
2018 General Funds
$
250,294
$
250,294
Medina
2017 General Funds
$
8,968
$
3,666
$
1,090
$
14,535
$
28,259
2018 General Funds
$
7,442
$
7,442
Mercer Is.
2017 General Funds
$
29,799
$
12,181
$
3,622
$
48,297
$
93,900
2018 General Funds
$
57,899
$
57,899
Newcastle
2017 General Funds
$
25,461
$
10,408
$
3,095
$
41,266
$
80,230
2018 General Funds
$
-
$
-
Redmond
CDBG (2017)
$
221,168
$
221,168
2017 General Funds
$
195,560
$
79,936
$
23,771
$
316,953
$
616,220
2018 General Funds
$
90,468
$
90,468
Sammamish
2017 General Funds
$
37,180
$
15,198
$
4,519
$
60,259
$
117,157
2018 General Funds
$
60,312
$
60,312
Woodinville
2017 General Funds
$
10,820
$
4,423
$
1,315
$
17,537
$
34,095
2018 General Funds
$
7,539
$
7,539
Yarrow Point
2017 General Funds
$
5,247
$
2,145
$
638
$
8,504
$
16,534
2018 General Funds
$
2,412
$
2,412
Individual Cities Total
CDBG (2017)
$
-
$
719,594
$
-
$
-
$
719,594
2017 General Funds
$
1,234,000
$
504,406
$
150,000
$
2,000,000
$
3,888,406
$
1,234,000
$
1,224,000
$
150,000
$
2,000,000
$
4,608,000
2017 Sub -Total
2018 General Funds
$
850,000
$
-
$
-
$
-
$
850,000
Includes combination of 2017 General Funds, unallocated 2016 General Funds, and interest and loan repayments from 201
" Includes General Funds in 2018 budgets set aside for affordable housing. Does not involve additional allocation to housing