HomeMy WebLinkAboutResolution No. 426CITY OF MEDINA, WASHINGTON
RESOLUTION NO.426
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 Resolution No. 425 approving the Amended
and Restated Interlocal Agreement for ARCH; and
WHEREAS, the City Council desires to use $13,300 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,
RESOLVES 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 Lifewire Hope Starts Here Project, Life Enrichment Options LEO at Trailhead,
Friends of Youth New Ground Kirkland, as well as to increase funding to Inland Housing
Group/Horizon Housing Totem Lake Project, in a combined total amount not to exceed
$13,300.
Section2. 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 December 9, 2021, a copy of which is attached
hereto as Exhibit A.
Resolution No. 426 Page 1 of 2
Section 3. Effective Date. This Resolution shall be effective upon its adoption by
the City Council.
PASSED BY THE CITY COUNCIL OF THE CITY OF MEDINA ON APRIL 11, 2022,
AND SIGNED IN AUTHENTICATION OF ITS PASSAGE ON APRIL 11, 2022.
�7 Jessica =R`o�ssman �Mayor�
Approved as to fora: Attest:
Ogden Murphy Wallace, PLLC
Scott M. Missall, City Attorney Aimee Kellerman, City Clerk
FILED WITH THE CITY CLERK: April 12, 2022
PASSED BY THE CITY COUNCIL: April 11, 2022
RESOLUTION NO. 426
Resolution No, 426
Page 2 of 2
TO� City of Bellevue Council Members
City of Clyde Hill Council Members
City of Issaquah Council Members
City of Kirkland Council Members
City of Mercer Island Council Members
City of Redmond Council Members
City of Woodinville Council Members
FROM: Kurt Triplett, Chair, ARCH Executive Board
DATE: December 9, 2021
City of Bothell Council Members
Town of Hunts Point Council Members
City of Kenmore Council Members
City of Medina Council Members
City of Newcastle Council Members
City of Sammarnish Council Members
Town of Yarrow Point Council Members
RE: Fall 2021 Housing Trust Fund (HTF) Recommendation
The 2021 ARCH Housing Trust Fund round confirmed the increasing demand for funding to support
affordable housing development in East King County. ARCH received five applications representing
requests for just over $3.8 million dollars in local funds to develop 344 units of affordable housing. After
careful deliberation, the ARCH Executive Board concurred with the recommendations of the ARCH
Citizen Advisory Board (CAB), and is recommending funding of $3,175,000 for four projects, including
supplemental funding of $1.5 million to cover cost increases to a project that received an award in 2020.
These recommendations advance projects that meet urgent local priorities, including mixed income
Workforce housing, transitional and emergency housing for victims of domestic violence, affordable
housing for youth seeking to further their career and education, and much needed affordable housing
for individuAls with developmental disabilities to be integrated into a transit -oriented development4
In the last three decades, the ARCH Trust Fund has supported nearly 4,500 units of affordable housing
and shelter beds, more than any other program in East King County, notably creating housing for those
with the greatest needs and the fewest opportunities to live in our community. As rents continue to rise
in our region, so does the need for affordable housing. Your investment in the ARCH Housing Trust
Fund, leveraged with millions of dollars from other sources, will provide this much needed housing to
hundreds of underserved members of our community.
ARCH MEMEIERS I
BEAUXARTS VILLAGE+ BELLEVUE* BOTHELL#CLYDE HILL#HUNT4�
POINT# ISSAQUAH+ KENMORE* KIRKLAND+ MEDINA* MERCER
ISLAND* NEWCASTLE# REDMOND# SAMMAMISH+WOODINVILLE# YARROW
POINT# KING COUNTY
ARCH Trust Fund Exec Bcord Memo
December 2021
� I a �g, ("-- � 2
Below is a description of the applications received, the Executive Board recommendation and rationale,
and proposed contract conditions for the proposals recommended for funding at this time. Also
enclosed is the proposed funding sources and an economic summary of the projects recommended for
funding.
Attachments:
1. Proposed Funding Sources
2. Project Economic Summaries
Not that bolded text in proposed condiOWIS ShOWS LifliqUe conditions in otherwise standatd text,
1. LifeWire — Hope Starts Here
Funding Request: $750,000 (Secured Grant)
25 Affordable Units
Executive Board Recommendation: $750,000 (Secured Grant)
See attached Proposed Funding Sources for distribution of City
Funds
Project Summar :
The proposed project is the rehabilitation of an existing three building site in Bellevue currently owned
by LifeWire into 25 one and two -bedrooms units of affordable housing plus the new construction of a
building for providing services to domestic violence (DV) survivors. The project is the culmination of
several years of planning by LifeWire to consolidate two existing programs located in less-than-ideat
facilities, plus add capacity with five additional units to serve the overwhelming need among DV
survivors.
The project will serve single women and women with children impacted by domestic violence who do
hot have other options for housing. The project will contain 15 emergency housing units and 10
transitional housing units. The ten transitional units will serve survivors who are also recovering from
substance abuse and are parenting. Nine apartments will be renovated to accommodate survivors with
mobility issues. The project will serve residents earning 0-50% AML
The scope of the rehabilitation includes system and finish upgrades, hew roofs, new secure entry door
systems, sewer lines, flooring, and where needed, new cabinets, countertops, appliances; and fixtures.
Due to the nature of the population the exact location of the project must be kepit confidential.
Fundinia Rationale:
The Executive Board supports the intent of this application for the following reasons-
• The project aligns with the local Affordable Housing Strategy and would further the City of
Bellevue's goals to achieve 2,500 affordable units over 10 years.
• The project serves a special needs population (domestic violence survivors).
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ARCH Trust Fund Exec Board Memo
December 2021
Page13
• The project will prioritize survivors with the greatest safety risks and highest barriers to housing
and services.
• The project will allow a dependable, long standing non-profit service provider the ability to
consolidate its resources and provide more efficient services to residents.
• The project provides significant financial leverage of other resources.
• Site has convenient access to transit, shopping, and services.
Proposed Conditions:
Standard Conditions: Refer to list of standard conditions found at end of this memo.
Special Conditions:
1. The funding commitment 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 Agency 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 Agency
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 Agency toward soft costs, design, permits and construction. Funds may not
be used for any other purpose unless ARCH staff has given written authorization for the alternate
use. If after the completion of the project there are budget line items with unexpended balances,
ARCH and other public funders shall approve adjustments to the project capital sources, including
potentially reductions in public fund loan balances.
3. Funds will be in the form of a secured grant with no repayment, so long as affordability and target
population is maintained, and the service funds necessary to provide services to this population are
available.
4. The net developer fee shall be established at the time of finalizing the Contract Budget and will
follow ARCH Net Developer Fee Schedule. 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.
5. A covenant is recorded ensuring affordability for at least 50 years, with size and affordability
distribution per the following table. Limited changes to the matrix may be considered based on
reasonable justification as approved by ARCH staff.
Affordability
1-bedroom
2-bedroom
Total
30%
14
6
20
50%
3
2
5
Total
17
8
25
3
EXHIBIT A
ARCH Trust Fund Exec Board Memo
December 2023
Page14
6. Based on the availability of adequate support services, the project will contain 15 emergency
housing units and 10 transitional housing units, unless otherwise approved by ARCH. LifeWire will
work with the DV Coordinated Entry system, known as the Domestic Violence Coordinated Housing
Access Point (DVCHAP) for referrals, or other referral system as approved by ARCH.
7. ARCH shall review and approve the services budget and services plan for consistency with
application.
2. life Enrichment Options — LEO at Trailhead
Funding Request: $250,000 (Secured Grant)
S affordable rental units;1 manager unit
Executive Board Recommendation: $250,000 (Secured Grant)
See attached Proposed Funding Sources for distribution of City
Funds
Project Summary:
The LEO at Trailhead project will provide 5 units of affordable housing for individuals with
developmental disabilities (DD units) with an additional studio unit for a 24/7 live-in care provider, fully
integrated into a mixed -income, mixed -use Transit Oriented Development (TOD) in Central Issaquah. All
of the DD units are single room occupancy (SRO), and all will serve residents at or below 30 - of area
median income (AMI). LEO is partnering with King County Housing Authority (KCHA), Spectrum
Development Solutions and the City of Issaquah to accomplish this project.
LEO will be situated on the first residential floor within the Trailhead building, above two levels of
commercial and parking, and will be integrated into the rest of the affordable housing units operated by
KCHA. KCHA is serving as LEO's development consultant and will sell the completed units to LEO upon
completion. In addition, the Central Issaquah TOD Project will have spaces for other supportive services
like a health center (Health Point), a behavioral health clinic (Valley City), and an Opportunity Center,
which will be owned and operated by the city.
The project will include shared amenities dedicated to LEO including a living room, laundry, lounge /
entertainment space, and kitchen. LEO tenants will have access to rest of the amenity spaces offered in
the Trailhead building.
LEO's model is based on contracting with licensed long-term care professionals who live on -site in
homes owned and managed by LEO. Care providers must adhere to minimum standards of care and
provide 24- hour care to our residents, under the supervision of Department of Social and Health
Services (DSHS) and the Developmental Disabilities Administration (DDA). LEO will serve as the landlord
for the project and will enter into an agreement signed by a care provider chosen by LEO.
Funding Rationale:
The Executive Board recommends funding with conditions listed below for the following reasons:
4
EXHIBIT A
ARCH Trust Fund Exec Board Memo
December 2021
Page15
• The project aligns with the City of Issaquah Housing Strategy and fulfills a key component of a
larger project that has been a longstanding City priority.
• The project is part of a larger partnership with King County Housing Authority, Spectrum
Development Solutions and the City of Issaquah which will create significant affordable housing.
• The TOD project is expected to act as a catalyst for the whole neighborhood economic
development in an area within the City's Regional Growth Center.
• The project is sited at an excellent location, across the street to Tibbetts Valley Park, a thirty -
acre active recreational community park, directly next to a light rail site is planned to open in
2041, and next to the Issaquah Transit Center which offers frequent, all -day transitservice.
• The project serves a special needs population (developmentally disabled individuals).
Proposed Conditions:
Standard Conditions: Refer to list of standard conditions found at end of this memo.
Special Conditions:
1. Funds shall be used by the Agency for the acquisition of the completed units.
2. ARCH's funding commitment shall continue for thirty-six (36) 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
Agency will provide a status report on progress to date. 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 Agency will demonstrate all capital funding is likely to be secured
within a reasonable period of time.
3. Funds will be in the form of a secured grant with no repayment, so long as affordability and target
population is maintained, and the service funds necessary to provide services to this population are
available.
4. A covenant is recorded ensuring affordability for at least 50 years, with affordability generally as
shown in the following table. Limited changes to the matrix may be considered based on reasonable
justification as approved by ARCH staff.
Affordability
Beds
Total
30% AMI
5
5
manager unit
1
1
TOTAL
6
6
S. The net developer fee shall be established at the time of finalizing the Contract Budget and will
follow the schedule established by ARCH. 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.
5
EXHIBIT A
ARCH Trust Fund Exec Boord Memo
December 2021
Page16
6. Based on the availability of adequate support services, the project will contain 5 units or beds for
residents with Developmental Disabilities, unless otherwise approved by ARCH. LEO will work with
Medicaid for referrals, or other referral method as approved by ARCH.
3. Inland Group/Horizon Housing Alliance — Horizon at Totem Lake
Initial Funding Request: $1,500,000 (Deferred, Contingent Loan) in addition to
$4,000,000 awarded from the 2020 funding round.
Executive Board Recommendation: $1,500,000 (Deferred, Contingent Loan) See attached Proposed
Funding Sources for distribution of City Funds
Proiect Summary:
Based on their successful proposal for the Together Center redevelopment, Inland/Horizon seek to
create a similarly configured affordable development comprising 300 income -restricted units
supplemented by an additional 168 workforce rental units in the redeveloping Totem Lake
neighborhood of Kirkland.
The proposed project is located at the site of a former new car dealership will consist of three residential
towers with level 1 of sub -grade parking and 2 levels of above grade parking. The first floor will consist
of common areas/commercial space and the majority of the residential units will be on the third floor
and above. The project proposes to utilize 9% tax credits in 40 units affordable at 30% and 50% AM I, of
which 30 would be set aside for those exiting homelessness. Another 260 units is proposed at 50% and
60% AMI, which will be funded through 4% tax credits and tax-exempt bond financing. The project
includes a partnership with Hopelink to provide services to the formerly homeless households.
In the most recent ARCH funding round, $4 million was approved for the project, which applied for but
was unsuccessful in its first effort to obtain Low Income Housing Tax Credits. To ensure the project is
able to move forward and compete again for tax credits, additional funding is needed to meet cost
increases that have occurred in the last year. Separately, the City of Kirkland has already provided an
early commitment to release $2.5 million for site acquisition, and Microsoft has provided $18 million in
initial funding through the ELAP program which is administered by the Washington State Finance
Commission for the acquisition of the property. The property acquisition will be completed in December
2021.
Funding Rationale:
The Executive Board recommends funding with conditions listed below for the following reasons:
• The project has the opportunity to deliver mixed income housing on a significant scale ina
location with access to transit and other amenities.
• The project leverages a significant amount of tax credit and other public and private financing.
• If successful in obtaining a 9% allocation, the project would provide housing for homeless
families as well as other low-income families and individuals.
• If unsuccessful in obtaining a 9% allocation, the project would still deliver a significant amount of
housing affordable to a range of incomes.
• The project will deliver a large amount of family -sized, 3-bedroom units.
0
EXHIBIT A
ARCH Trust Fund Exec Boord Memo
December 2021
Page17
• The developer is vertically integrated and able to bring cost efficiencies to the development.
The project will be co -located with workforce housing creating a project of around 470 units
built simultaneously, bringing an economy of scale.
• The project would allow timely investment of in lieu fees collected from a downtown Kirkland
development to invest in another redeveloping neighborhood.
• The project maximizes utilization of the site per zoning.
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. ARCH staff will grant up to a 12-
month extension.
2. Funds shall be used by the Agency towards acquisition, soft costs, and construction. Funds may not
be used for any other purpose unless ARCH staff has given written authorization for the alternate
use.
3. 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 ARCH Staff. It is anticipated that
loan payments will be based on a set repayment schedule and begin after repayment of deferred
developer fee with 1% interest. The terms will also include a provision for the Agency to a defer
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 ARCH Staff, and any deferred payment would
be repaid from future cash flow or at the end of the amortization period.
5. The net developer fee shall be established at the time of finalizing the Contract Budget and will
follow the ARCH Net Developer Fee Schedule. 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.
6. A covenant is recorded ensuring affordability for at least 50 years, with affordability generally as
shown in the following table. Limited changes to the unit mix may be considered based on
reasonable justification as approved by ARCH staff. If the project is unsuccessful in securing 9% tax
credits in the current round, the project may shift the allocation of units set aside at 30% AMI to
either 50% or 60% AMI. The total number of units affordable up to 60% AMI may not be
decreased by more than 10%. The total number of units affordable up to 50% AMI may also not be
decreased by more than 10%.
7
EXHIBIT A
ARCH Trust Fund Exec Board Memo
December 2021
Page18
Affordability
Studio
1 BR
21311
31311
Total
30%
8
8
4
20
50910
5
23
49
19
96
60%
12
38
97
47
184
Total
17
69
154
60
300
7. The combined final loan amount shall be up to $5.5 million, subject to approval by ARCH staff based
on a documented funding gap. ARCH reserves the right to reduce its total loan amount based on
changes to the project sources and uses, and unit mix.
8. The Agency shall submit evidence of private funding commitments for all components of the
project, including the workforce housing. In the event commitment of funds cannot be secured
consistent with the timeframe identified in the application, the Agency shall immediately notify
ARCH, and describe the actions it will undertake to secure alternative funding and the timing of
those actions subject to ARCH review and approval.
9. Agency must submit for ARCH staff approval a management and services plan which includes
coordination of services with outside providers and parking management.
10. Agency shall submit a marketing plan for approval by ARCH staff. The plan should include how the
Agency will do local targeted marketing outreach to local, media business and community
organizations.
11. The Agency shall work with the city to minimize required parking and to provide alternative
transportation options for the residents that reduce reliance on private automobiles, such as
provision of public transit passes, bike storage, car sharing programs and other incentives. The
Agency may charge for parking, subject to approval by ARCH staff, provided that the Agency has
minimized the overall cost burden on residents with the lowest incomes.
12. In the interest of discouraging segregation of residents by income within the project, the Agency
shall look for ways to integrate the population across the project with shared amenities, unifying
esthetics and other programmatic features to build community within the project.
13. The Agency will establish a services reserve account in the amount of no less than $1.61VI to be used
for services expenses to fill gaps in operating income, unless other ongoing resources for supportive
services is identified, as approved by ARCH. A services reserve budget must be approved by ARCH at
the close of permanent finance and will be monitored on an annual basis for consistency with the
services plan. Any deviation from the services budget must be pre -approved by ARCH.
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EXHIBIT A
ARCH Trust Fund Exec Board Memo
December 2021
Page19
4. Friends of Youth New Ground Kirkland Redevelopment
Funding Request: $675,000 additional to previously invested $250,000 awarded in
2005 (Secured Grant)
14 total affordable bedrooms/suites replacing existing 8 units
Executive Board Recommendation: $675,000 (Secured Grant)
Project Summary:
Friends of Youth (FOY) proposes to redevelop a site currently in their portfolio in the Houghton
neighborhood of Kirkland into 14 bedrooms/suites of affordable housing at 30% AN for youth between
the ages of 18 to 24. The existing building would be extensively rehabbed including an alteration to
accommodate four additional bedrooms. The target population would be clients who are ready for
independent living, likely pursuing education or entry level employment, including young adults who are
not current clients of the agency. The renovation supports FOY goals to diversify housing options across
its portfolio and create projects that are economically sustainable and not dependent on annual
fundraising.
Funding Rationale:
The Executive Board supports the intent of this application for the following reasons:
• This project represents an opportunity to rehab and extend the useful life of a vacant building
within an agency current portfolio.
• The project would increase the number of young adults that it can serve at this property by
adding two more bedrooms/suites.
• The project is well located in a neighborhood with transit, amenities and access to educational
and job opportunities for young adults.
• The project leverages a significant amount of other public funding.
• The project helps to advance the City of Kirkland's recently adopted affordable housing targets,
which aim to achieve over 12,000 affordable units by 2044.
• The project serves a special needs population (young adults).
Special Conditions:
1. The funding commitment 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 Agency 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 Agency
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 Agency toward soft costs, design, permits and construction. Funds may not
be used for any other purpose unless ARCH staff has given written authorization for the alternate
use. Spending of construction contingency must be approved in advance by ARCH. If afterthe
EXHIBIT A
ARCH Trust fund Exec Board Memo
December 2021
Page110
completion of the project there are budget line items with unexpended balances, ARCH and other
public funders shall approve adjustments to the project capital sources, including potentially
reductions in public fund loan balances.
3. Funds will be in the form of a secured grant with no repayment, so long as affordability and target
population is maintained, and the service funds necessary to provide services to this population are
available.
4. The net developer fee shall be established at the time of finalizing the Contract Budget and will
follow ARCH Net Developer Fee Schedule. 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.
5. A covenant is recorded ensuring affordability for at least 50 years, with size and affordability
distribution per the following table. Limited changes to the matrix may be considered based on
reasonable justification as approved by ARCH staff.
Affordability
1-bedroom/suite
Total
30%
14
14
Total
14
14
6. ARCH shall review and approve the services budget and services plan for consistency with
application.
7. Agency must provide a parking plan which will encourage minimal parking and include within the
project design bike facilities to inspire less vehicle use.
8. Agency must review the project design in an effort to maximize private space and security of private
space and minimize common space. Design must propose security measures to encourage privacy
such as locks in private areas.
9. If not included within the proposed design, Agency shall evaluate and consider permanent mini
fridge/mini kitchen in each room to improve privacy and independence.
10. Agency shall evaluate and consider the maximization of sustainability features such as in efficient
building envelope, heat pumps and propose a plan for the maximization of sustainability.
11. Agency shall present a plan to ARCH for managing the leasing and use of the common space that will
explain how Agency will match residents, delineate the responsibilities for the lease/sub-lease, and
handle management of each suite and common spaces.
12. Agency shall provide to ARCH for review a Capital Needs Assessment for all buildings in ARCH's
portfolio.
10
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ARCH Trust Fund Exec Board Memo
December 2021
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S. Attain Housina — Totem Six Plex
Funding Request: $650,000 (Secured Grant)
6 new housing units
Executive Board Recommendation: $0
Proiect Summary:
The proposed project is the new construction of a three-story structure with six two -bedroom units of
transitional housing for homeless families earning up to 30916 of area median income (AM I). The property
currently contains of an existing four plex building owned and managed by Attain Housing. Attain also
manages the four plex on the lot next to the proposed construction site. The proposed new building will
sit in what is currently a lawn between the two four plex buildings. The project represents an expansion
of existing programs operated by Attain, with overall capacity growing from 8 to 14 units across the
three buildings.
Fundina Rationale:
The Executive Board potentially supports the concept of the Attain Housing proposal but does not
recommend funding at this time. The Executive Board would welcome an application in the next round.
This would provide an opportunity for Attain Housing to address the issues identified below:
• Further development of building design, siting and parking and conformance with zoning
requirements.
• Identification of other public funding sources included in the development budget.
• Identification of adequate project management capacity, including recommended engagement
of a development consultant who will assist with the financing and project management of the
project through construction completion.
• Definition of agency priorities including a rehab which the agency has indicated is its other top
priority.
• Development of an updated development budget and operating budget which addresses in
increases in construction costs based on and updated cost estimate and funding to address the
additional cost increases.
• Development of a project schedule consistent with the proposed funding and local permitting
requirements.
• Further discussion of long-term strategy for funding supportive services for transitional housing.
Standard Conditions (Apply to all proiects):
1. The Agency shall provide revised development and operating budgets based upon actual funding
commitments, which must be approved by ARCH staff. If the Agency is unable to adhere to the
budgets, ARCH must be immediately notified and (a) new budget(s) shall be submitted by the
Agency for ARCH's approval. ARCH 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 Agency. Failure to adhere to the budgets, either original or as
amended may result in withdrawal of ARCH's commitment of funds.
EXHIBIT A
ARCH Trust Fund Exec Board Memo
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2. The Agency 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 Agency shall immediately notify ARCH, and describe the actions it
will undertake to secure alternative funding and the timing of those actions subject to ARCH 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 Agency shall maintain documentation of any necessary land use approvals and permits required
by the city in which the project is located.
S. The Agency shall submit monitoring quarterly reports through completion of the project, and
annually thereafter, and shall submit a final budget upon project completion. If applicable, Agency
shall submit initial tenant information as required by ARCH.
6. Agency shall maintain the project in good and habitable condition for the duration of period of
affordability.
12
Attachment: Proposed Funding r
Recommended Projects
Total 2021
Horizon at Totem
Hope Starts LEO at
New Ground
Recommended
Lake
Here Trailhead
Kirkland
Funding
Total Recommended
Award
$1,500,000
$750,000
$250,000
$675,000
$3,175,000
Bellevue
$192,900
$16,100
$32,200
$86,800
$328,000
Bothell
$54,900
$4,600
$9,200
$24,700
$93,400
Clyde Hill
$10,000
$800
$1,700
$4,500
$17,000
Hunts Point
$1,000
$100
$200
$400
$1,700
Issaquah
$66,200
$5,500
$11,000
$29,800
$112,500
Kenmore
$36,200
$3,000
$6,000
$16,300
$61,500
Kirkland
$635,200
$53,000
$105,900
$285,900
$1,080,000
Medina
$7,800
$700
$1,300
$3,500
$13,300
Mercer Island
$19,700
$1,600
$3,300
$8,900
$33,500
Newcastle
$17,200
$1,400
$2,900
$7,700
$29,200
Redmond
$337,000
$28,100
$56,000
$151,600
$572,700
Sammamsh
$71,200
$5,900
$11,900
$32,000
$121,000
Woodinville
$47,000
$3,900
$7,800
$21,200
$79,900
Yarrow Point
$3,700
300
$600
$1,700
$6,300
Total Local Funds
$1,00,000
$12,000
$250,000
$675,000
$,550,000
C08G Funds
$627,869
$627,869
Prior Award
- $4, 00,000
Total Award
$5,00,000
*Final COBG award to be finalized based on actual HIT grant numbers
EXHIBIT A
Attachment 2., Project Economic Summaries
Appric a nt, LifeWire
Protect Name: Hope Starts Here
Location: Bellevue (confidential)
Prot Descriotion: Acquisition rehab with 25 units for domestic violence survivors
Financing Sources:
Proposed Status
Source Name Amount
ARCH $750,000
KC Housing Finance Program $2 000 000 q4 300 000 committed
Estimated up to
WA State Commerce HT F
$3,500,000
$ 1,000,000 award
Up to $3,200,000
of Bellevue
$2,000,000
recommended
-City
Capital Campaign/LifeWire
Equity
$4,133,733
Total Sources
$12,383,733
Bridge Financing:
King County Bridge Loan
$4,000,000
Committed
REM Fund
$5,000,000
Committed
Development Budget:
Proposed Use
Estimated
Amount
Acquisition:
$8,848,194
Construction:
$2,293,396
Soft Costs:
$445,869
Permanent Financing
$135,048
Capitalized Reserves
$260,525
Other Development Costs
$400,701
Total Uses
$12,383,733
EXHIBIT A
Applicant:
Proiect Name:
Location:
Proiect Description:
Financing Sources
Life Enrichment Options (LEO)
LEO at Trailhead
1515 NW Maple St, Issaquah WA
Acquisition of 5 units/beds for persons with developmental disabilities plus 1
caregiver unit within the new construction Trailhead TOD development
Source Name
Proposed
Amount
Status
ARCH
$250,000
KC Housing Finance Program
$250,000
Proposed — anticipate
State funds may cover
WA State Commerce HTF
$2991694
Application anticipated
spring 2022
Total Sources
1 $799,694
Development Budget
Proposed Use
Estimated
Amount
Acquisition:
$799,694
Total Uses
$799,694
EXHIBIT A
Applicant:
Project Name:
Location:
Project Description:
Financing Sources
Inland Group/Horizon Housing Alliance
Horizon at Totem Lake
12335 120th Ave NE, Kirkland, WA
New construction of mixed use affordable and workforce housing project with
300 affordable units and 178 workforce units
Source Name
Proposed
Amount
Status
ARCH
$5,500,000
$4 million committed in 2020 funding
round; $2.5 million approved for
December 2021 acquisition
KC Housing Finance Program
$6,222,808
Committed
9% LIHTC Equity
$9,992,576
Application submitted
4% LIHTC Equity
$42,220,944
Application March 2022
Tax Exempt Bonds
$49,220,000
Application March 202
Deferred Developer Fee
$10,4760847
Committed
Total Sources
$123,633,175
Development Budget
Proposed Use
Estimated
Amount
Acquisition:
$14,436,693
Construction:
$75,915,129
Soft Costs:
$16,014,352
Permanent Financing
$8,237,423
Capitalized Reserves
$2,982,281
Other Development Costs
$6,047,297
Total Uses
$123,633,175
EXHIBIT A
Applicant:
Project Name:
Location:
Proiect Description:
Financing Sources
Friends of Youth
New Ground Kirkland Redevelopment
11005 NE 68th Street, Kirkland WA
Redevelopment of existing structure for 14 affordable beds for young adults
Source Name
Proposed
Amount
Status
ARCH
$675,000
KC Housing Finance Program
$1,171,800
Recommended
$1,806,800
WA State Commerce HTF
$635,000
Not anticipating any
HTF award
2021 State Leg. Appropriation
$258,000
Committed
Capital Campaign
$27,500
Friends of Youth
$15,000
Total Sources
$2,782,300
Development Budget
Proposed Use
Estimated
Amount
Acquisition:
$0
Construction:
$1,939,813
Soft Costs:
$632,500
Permanent Financing
$36,236
Capitalized Reserves
$42,000
Other Development Costs
$131,751
Total Uses
$2,782,300