The URL can be used to link to this page

Home My WebLink AboutResolution No. 371� � + + M' 1 «•�i f Mafia • + + r:' « WHEREAS, A Regional Coalition for Housing (ARCH) was created by interlocS agreement to help coordinate the efforts of East�side cities to provide affordable housing; � I WHEREAS, participate - funding of Waffordable housing projects and • !! and WHEREAS, the ARCH Executive Board has developed a number of recommend conditions to ensure that the City's affordable housing funds are used for their intended purpo and that projects maintain their aff• da over • WHEREAS, the City Council has approved the Amended and Restated Interlocal Agreement for ARCH; and WHEREAS, the City Council desires to use City funds as to finance the projects recommended - ARCH Executive•- • now, ` - ! Section 1. The City Council authorizes the duty -appointed administering agency of ARCH pursuant to the Amended and Restated Interlocal Agreement for ARCH to execute all documents and take . l 1. necessary actions ! enter o Agreements on behalf of i King County Housing Authority in an amount not to exceed $1,801. Section 2. The Agreements entered into pursuant to Section 1 of this resolution shall be funded in a combined amount not to exceed that set forth in Section 1. Such Agreements shall include terms and conditions to ensure that the City's funds are used for their intended purpose and that the project maintains its affordability overtime. In determining what conditions should be included in the Agreements, the duly -appointed administering agency of ARCH shall be guided by the recommendations set forththe ARCH - Board's memorandumof April 29, 2014, a copy of which is attached hereto as Exhibit A. PASSED AND ADOPTED by the City Council of the City of Medina this 14th day of July, 2014, and signed in authentication of its passage this 14ih day of July, 2014. Michael Luis, Mayor Approved as to fo Attest: s Bari Sand, City Attorney Aimee Kellerman, City Clerk Kenyon Disend, PLL Resolution No, 371 Page 1 of 1 A Regional Coalition for Housing Together Center Campus 16225 NE 87"' Street, Suite A-3 # Redmond, Washington 98052 (425) 861-3677 *Fax: (425) 861-4553 * WEBSITE: www.arelilioLising.org MEMORANDUM TO: City of Bellevue 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: Lyman Howard, Chair, and ARCH Executive Board DATE: April 29, 2014 RE: Out of Cycle 2014 Housina Trust Fund (HTF) Recommendation The ARCH Executive Board (EB) has completed its review of the King County Housing Authority (KCHA) application to the Trust Fund for funding renovations to two recently acquired federally assisted preservation properties. The EB recommends funding for these projects. Recommendations total $1,334,749 as surnmarized 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 application, the EB recommendation and rationale, and proposed contract conditions for the proposal. Also enclosed is an economic summary for the project recommended for funding, leveraging chart, project summary table, and a summary of funded projects to date. KCHA Bellevue Manor and Patricia Harris Manor Funding Request: $1,400,000 unspecified 105 Units, plus two unrestricted manager's units EB Recommendation: $1,334,749 $1,000,000 City general funds and Bellevue CDBG (deferred loan) $ 334,749 King County and Redmond consortium CDBG Funds See attached Funding Chart for distribution of City Funds BEAUX ARTS VILLAGE # BELLEVUE + BOT14ELL # CLYDE HILL + HUNTS POINT * ISSAQUAH + KENMORE * KIRKLAND MEDINA + MERCER ISLAND * NEWCASTLE 4 REDMOND * SAMMAMISH + WOODINVILLE *YARROW POINT *KING COUNTY MINIMM, Project Summary.:. KCHA is proposing renovations of two recently acquired three story proJects totaling 105 affordable senior units located in downtown Bellevue and downtown Redmond. Both properties are within walking distance of shopping, public transportation, employment and services. The properties were built by a private developer between 1977 and 1980 and are supported by Federal rental assistance. The previous owner's original contract for federal assistance has expired and the owner had the option to opt out of the contract and convert the property to market rate housing. Preserving privately owned, federally assisted housing has been an ongoing priority use of the ARCH Trust Fund, The residential projects are designed to serve seniors living independently, aged 55 or over and 10 percent of the units may be available to disabled persons without age restriction. Because of the federal assistance, residents pay 30% of their monthly gross income as rent. Federal rental assistance makes up the difference between what the residents can afford and a fair market rent. Funding will be used for rehabilitation costs such as site repairs, windows, flooring, water heaters, plumbing fixtures, cabinets, fire alarm systems, etc. Funding Rationale, The EB supported the intent of this application for the following reasons: 0 Preserves existing federally assisted affordable housing which assists households with very low incomes, • Preservation of privately owned, federally assisted housing has been an ongoing top priority of ARCH Trust Funds. Completion of this project will mean that of 641 privately owned, federally assisted, privately owned affordable housing units in East King County, 590 will have been preserved long term for federal assistance. • Experienced applicant • Applicant owns the site and is well located near transit, shopping and services. • City funds will be highly leveraged because the Agency is using a creative financing structure that results in KCHA internally financing $10 million of the acquisition cost. This results in a relatively small amount of ARCH funding per unit. In addition the financing structure results in repayment of $600,000 to Bellevue for two other projects funded in the past that can be reused for this project. 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 City staff no later than sixty (60) days prior to the expiration date. City staff will consider an extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. 2. Funds shall be used by KCHA toward design, construction management, construction and permitting/impact fees. Funds may not be used for any other purpose unless city staff has given written authorization for the alternate use. IQ 3. Terms for making funds available will account for various factors, including terms from other fund sources and available cash flow. Final terms shall be determined prior to release of funds and must be approved by City Staff. Based on the preliminary development budget, it is anticipated that loan payments on City general revenues and Bellevue CDBG will be based on a set repayment schedule, with repayment starting in year 21 with 0% interest in years I through 20, and I % interest thereafter with a 20 year amortization period. There will be separate loans for each property. The King County subregional CDBG and Redmond CDBG funds shall be administered by King County and with terms comparable to other funds made available by the County for the project, The City 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, and any deferred payment would be repaid from future cash flow or at the end of the amortization period. 4. Submit for review and approval a management plan for each property. The plan for Patricia Harris should include how the office building will be used and managed. Each plan shall address how parking will be managed on an ongoing basis including monitoring/controlling use by non-residents, Each plan shall also include management procedures to address tenant needs; services provided for or required of tenants; management and operation of the premises; community and neighbor relations procedures; a summary of ARCN's affordability requirements as well as annual monitoring procedure requirements. 5. A covenant is recorded ensuring affordability for at least 50 years, with affordability as shown in the following tables. During this time, the project shall maintain Section 8 federal funding so long as it is available and the contract rents, less normal operating costs, are sufficient to cover debt service, If Section;8 federal funding is no longer available, or no longer feasible for reasons stated above, then all of the units shall be at 60% of median income. 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, BELLEVUE MANOR -1 Number of Number Percent of Median Bedrooms of Units Section 8 or 60% 1 65 MSr Units I I TOTAL 66 PATRICIA HARRIS MANOR Percent of Median Number of Bedrooms Number of Units Section 8 or 60% 1 40 Mgr Units TOTAL 41 M aMUMM Standard Conditions I. 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. 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, 3. The Applicant shall maintain documentation of any necessary land use approvals and permits required by the city where the homes are located. 4. 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. .9 r r , r Girktal;L91110 Q Mayl 9 1 Di I MC249,.'• %ICI" A SOURCE Senior Preservation Sub -Regional CIDBG $ 259,749 Bellevue CDBG $ 157„902 General Fund $ 746,256 Issaquah General Fund $ 18,291 Kirkland General Fund $ 44,193 Mercer Is, General Fund 3,022 Redmond General Fund CDBG 75,000 Newcastle General Fund 4,058 Kenmore General Fund $ 17,069 Woodinville General Fund 1,904 Samrnash General Fund 2,272 Clyde Hill General Fund $ 2,265 Medina General Fund $ 1,801 Yarrow Point General Fund $ 588 Runts Point General Fund $ 378 TOTAL $ 1,334,749 CDBG $ 492,651 General Fund $ 842,098 ARCH HOUSING TRUST Out +r 1: ar LeveragingFunds ECONOMIC SUMMARY: KCHA PRESERVATION OF SENIOR APARTMENTS 1. Applicant/Description:_ KCHA proposes renovation of 105 units of affordable senior rental housing, plus 2 manager units, in two properties acquired • KCHA to preserve existing affordable units with expiring contracts 2. Project Location: 143 Bellevue Way SE, Bellevutt 16304 NE 81s'St., Redmond Funding Source Funding Amount Commitment ARCH $1,334,749 Applied for Jan 2014 King County $665,251 Committed Fall 2013 Commercial Loan $5,800,000 Committed Organization Operations $10,200,000 Committed TOTAL $18,000,000 Total 4. Develo meat bud et. ITEM TOTAL PER UNIT HTF Acquisition $16,000,000 $152,381 Construction $1,728,686 $16,464 $1,063,435 Design $233,372 $2,223 $233,372 Consultants $30,442 $290 $30,442 Developer fee $0 $0 Finance costs $0 $0 Reserves $0 $0 Permits/ ees/Other $7,500 $71 $7,500 TOTAL $18,000,000 $171,429 $1,334,749 5. Debt Service Coverage. Deferred loan, Repayment year 21 out of available cash flow. • Security for City Funds-, • A recorded covenant to ensure affordability and use • targeted population for 50 years. • A promissory note with KCHA but not secured by a deed of trust due to structure of KCHA corporate loan used to acquire the properties, 7. Rental ubsidy: Project -based Section 8 a ME if A F V, PROJECT NAME TOTAL SECTION 8 1POPULATION EXPIRATION I PRIVATE] LINITS �IJNITS �SERVIED YEAR (1) J�WNER �Preservatlon Hidden Village Bellevue 60 Fam/Individuals 16 Fam/Individualsaa..�X �Spiritwood Manor 1 119 Farn/Individuals X 6 65-Eiderly/Disable 4 48 Fam/Individuals X Wildwood Court 36 3r rd . itX Champion House - -- ----------------- Elbert House 50 ld&�Disa te, -Home Halcyon Group 14o-me 2007 1 UCP Eastside « sr16 Heritage Park 4T�S_� ividuals 2001 Alpine Ridge am/In ividuals Northwood 7:lderly/Disable 3 W&WAM Issaquah Gardens Residence East 81 DD Mine Hifl --Issaquah andduals 111: Hutchinson House Issaquah juniperwood Apts Issaquah __�Kirkla ju-anita View— d Kirkland Heights Kirkland Kirkland Plaza Kirkland Westwood Square Kirkland ITEI-1sworth House Na arris Manor � 0 -'-- moor Minor (1) Year that original HUD contract expires data/housingdata/kcha/section 8 expiring use FIGURE I ARCH: EAST KING COUNTY TRUST FUND SUMMARY LIST OF CONTRACTED PROJECTS FUNDED (1993 - FaII 2013) Units]Bed Pot OtTota[ Distribution Project Location Owner a Funding Allocation Target 1. Famliv Housin Andrews Heights Apartments Bellevue imagine Housing 24 $400,000 Garden Grove Apartments Bellevue DASH 18 $180.000 Overlake Townhomes Bellevue Habitat of EKC 10 $120,000 Glendale Apartments Bellevue DASH 62 $300=0 Wildwood Apartments Bellevue DASH 36 $270,000 Somerset Garderits (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 $387,600 Bellevue Apartments Bellevue LIHI **' 45 $800,000 YWCA Family Apartments K.C. (Bellevue Sphere) YWCA 12 $100,000 Highland Gardens (Kiahanie) K.C. (Issaquah Sphere) Imagine Housing 54 $291,281 Crestline Apartments K.C- (Kirkland Sphere) Shelter Resources 22 $195,000 Parkway Apartments Redmond KC Housing Authority 41 $100,000 Habitat - Patterson Redmond Habitat of EKG 24 $446,629 Avon Villa Mobile Home Park Redmond MHCP - 93 $525,000 Terrace Hills Redmond Imagine Housing is $442,000 Village at Overtake Station Redmond KC Housing Authority 308 $1,646,375 Summerwood Redmond DASH 166 $1,187,265 Coal Greek Terrace Newcastle Habitat of EKC 12 $240,837 RoseCrest (Talus) Issaquah Imagine Housing 40 $318.846 Mine Hill Issaquah Imagine Housing 28 $450,000 Clark Street Issaquah Imagine Housing 30 $355,000 Lauren Heights (Iss Highlands) Issaquah Imagine HousingISRI'* 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 11 Issaquah YWCA 47 $2,760,000 Greenbrier Family Apts Woodinville DASH 50 $286,892 Plum Court Kirkland DASH 61 166 $1,000,000 Francis Village Kirkland Imagine Housing 15 S375,000 South Kirkland Park n Ride Kirkland Imagine Housing 46 $901,395 Copper Lantern Kenmore LIHI - 33 $452,321 Habitat Samniamish Sammarni& Habitat of KC 10 $853,000 Homeowner Down payment Loan Various KCIWSHFCIARCH 87 eat $615,000 SUB -TOTAL 1,942 $24,020,516 56,3% (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 Vasa Creek K.C. (Bellevue Sphere) Sheller Resources 50 $190,000 Riverside Landing Bothell Shelter Resources so $225,000 Kirkland Plaza Kirkland Imagine Housing 24 $610;000 Totem Lake Phase 2 Kirkland Imagine Housing 80 $736,842 Heron Landing Kenmore DASH/Shelter Resources 50 $65,000 Ellsworth House Apts Mercer Island Imagine Housing 59 $900,000 Providence Senor Housing Redmond Providence ** 74 $4239,000 Greenbrier Sr Apts Woodinville DASH/Shelter Resources so $196,192 SUB -TOTAL 671 $8,872,034 20.8% (19%) 1 W14 ; t R-M A W FIGURE 1 ARCH. EAST KING COUNTY TRUST FUND SUMMARY LIST OF CONTRACTED PROJECTS FUNDED (1993-Fall 2013) Units/Bed Pet of Total Distribution Project Location Owner a Funding Allocation Target 3. HomelessfTransitional 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 $1,102,500 Bellevoe Apartments Bellevue ... LIHI '** 12 $200,000 Sophia Place Bellevue Sophia Way 20 $250,000 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 Patter Court Kirkland KITH 4 $100,000 Francis Village Kirkland Imagine Housing 45 $1,125,000 South Kirkland Park n Ride Kirkiand Imagine Housing 12 $225,349 Totem Lake Phase 2 Kirkland Imagine Housing 15 $138,158 Rose Crest (Talus) Issaquah - Imagine Housing 10 $229,712 Lauren Heights (Iss Highiands) Issaquah - SRI " 5 $73,1338 Issaquah Family Village l Issaquah YWCA 10 $503,745 SUB -TOTAL 257 $6,668,387 15,6% (13%) 4, Special Needs Housing 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 DO 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 $252,624 FOY Extended Foster Care Kirland Friends of Youth 10 Beds $112,624 DO Group Home 4 Redmond Community Living 5 Beds $111,261 DO Group Homes 5 & 6 Redmond/KC (Bothell) Community Living 10 Beds $250,000 United Cerebral Palsy BellevuelRedmond UCP 9 Beds $25,000 DD Group Home Bellevue Residence East 5 Beds $40,000 AIDS Housing Bellevue/Kirktand AIDS Housing of WA 10 Units $130,000 Harrington House Bellevue AHAICCS 8 Beds $290,209 DO Group Home 3 Bellevue Community Living 5 Beds $21,000 Parkview DO Condos III Bellevue Parkview 4 $200,000 IERR DD Home Issaquah IERR 6 Beds $50,209 FFC DO Homes NE KC FFC 8 Beds $300,000 Oxford House Bothell Oxford/Compass Cir, 8 Beds $80,000 Parkview 00 Homes VI Bothell/Bellevue Parkview 6 Beds $150,000 FFC DO Home II TBO FFC 4 Beds $168,737 SUB -TOTAL 158 Beds/Units $3,151,584 7.4% (12%) TOTAL 2,928 $42,702,521 100.0% . Funded through Bellevue Downtown Program 10% Also, includes in -kind contributions (e.g. land, fee waivers, infrastructure Improvements) - Amount of Fee Waiver stilt to be finalized