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HomeMy WebLinkAbout03-142 - King County - Regional Affordable Housing (HOME)/96 (13-/42.(c0 WITNESSETH AMENDMENT NO 1 HOME INVESTMENT PARTNERSHIPS PROGRAM INTERLOCAL COOPERATION AGREEMENT THIS AMENDMENT to the HOME Investment Partnerships Program Interlocal Cooperation Agreement dated August 18, 1999 is entered into by and between King County and the City of said parties to the Agreement each being a unit of general local government in the State of Washington. WHEREAS, King County and the City entered into a HOME Investment Partnerships Program (HOME) mterlocal cooperation agreement (the "Agreement in 1999 for the purpose of forming a HOME consortium and undertaking HOME Program housing activities, and WHEREAS, there is mutual recognition of the need to amend this Agreement to increase participating cities' representation on the inter-junsdictional Joint Recommendations Committee NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS Paragraph 10 is deleted and replaced with the following new Paragraph 10 Joint Recommendations Committee Composition. The Committee shall be composed of three (3) County representatives and seven (7) cities representatives. The three County representatives will be King County Executive staff with broad policy responsibilities, and/or Department Directors, and/or elected representatives of Unincorporated Area Councils. County representatives shall be specified in wntmg and should, where possible, be the same person consistently from meeting to meeting. The seven cities representatives will be elected officials, chief administrative officers, or persons who report directly to the chief administrative officer and who have broad policy responsibilities, e g., planning directors, department directors, etc Three of the seven cities representatives will be from the CDBG "Pass through" cities and the CDBG "Small" cities, at least one from each group (the third may be from either) Two of the seven cities representatives shall be rotated among the CDBG "Joint Agreement" cities of Federal Way, Shoreline and Renton. Two of the seven cities representatives shall be rotated among the "HOME- only" Cities of Auburn, Bellevue and Kent, and these two representatives will vote only on issues related to the King County HOME Consortium and other regional housing- related funds (excluding CDBG) For all the rotating positions, each city will serve two years on and one year off, except that during the first year (2004) one city in each group will serve a one -year term. Cities not serving in a position in a certain year may serve as an alternate The rotation cycles of the two groups will be coordinated to achieve broad sub regional representation. (The chart below sets forth the rotation schedule for the four rotating city representatives.) If any city, in accordance with HUD instructions, notifies the County of its intent to change its status at the end of the three -year qualification period, and as a result the number of CDBG "Joint Agreement" or "HOME- only" cities changes, County staff shall initiate a timely process to revisit the cities representation on the JRC Joint 2004 2005 2006 2007 Agreement 2008 Federal Way X X X X Shoreline X X X Renton X X X HOME -only 2004 2005 2006 2007 2008 Kent X X X X Auburn X X X Bellevue X X X Paragraph 11 is deleted and replaced with the following new Paragraph 11 Appointments The King County Executive shall appoint the County representatives The CDBG "Pass- through" cities and the CDBG "Small" cities will provide for the appointment of their shared representatives in a manner to be determined by those cities through the Suburban Cities Association or other agreed mechanism for the execution of shared appointing authonty The Suburban Cities Association or other agreed mechanism will work in coordination with the "Joint Agreement" and "HOME- only" cities to achieve broad sub regional representation. The representatives of the revolving CDBG "Joint Agreement" cities and the representatives of the revolving "HOME- only" cities shall be appointed by their respective junsdictions. Members of the Committee shall serve at the pleasure of their respective appointing authorities. IN WITNESS THEREOF, the parties have executed this Amendment. King County, Washington, a political Subdivision of the State of Washington By 1- signatre AC,k, F m pnnted name Title 1> cAk F, a2 Date mi f 1 APPROVED AS TO FORM Norm Maleng King County Prosecutrng Attorney Goosa, act Margaret Ph.hl, King County Prosecuting Attorney City of rU KLr e icc_ a municipal corporation of the Stat of Washington By >ever\ IV) 1 signature /EV 71, l'YI MULLET_ pnnted name Title )W LCA, Date 7/ AS /i% V THIS AGREEMENT is entered into between King County, a municipal corporation and political subdivision of the State of Washington, hereinafter referred to as the "County", and the City of JiLlath hereinafter referred to as the "City said parties to the Agreement each being a unit of general local government of the State of Washington. and REGIONAL AFFORDABLE HOUSING PROGRAM INTERLOCAL COOPERATION AGREEMENT An Agreement for the use of SHB 2060 Local Low Income Housing Funds in King County RECITALS ENT'0 DEC 26 2003 AC a3- 4z WHEREAS, the King County Countywide Planning Policies, hereinafter referred to as the "CPPs developed pursuant to the Washington State Growth Management Act, have established standards for cities to plan for their share of regional growth and affordable housing; WHEREAS, to implement the CPPs, the King County Growth Management Planning Council appointed a public- pnvate Housing Finance Task Force in 1994, hereinafter referred to as the "HFTF to recommend potential fund sources for affordable housing for existing low income residents and for meeting the affordable housing targets for future growth, and ORIS 4 NAL�' }H A surcharge of ten dollars per instrument shall be charged by the county auditor for each real property document recorded, which will be in addition to any other charge authorized by law, After retention of up to five percent (5 for collection administration, forty percent (40 of the revenue will be transmitted monthly to the state treasurer, and sixty percent (60 of the revenue will be retained by the county and deposited into a fund that must be used by the county and its cities and towns for housing projects or units within housing projects that are affordable to very low income households at or below fifty percent (50 of the area median income. The local portion of the funds must be allocated pursuant to an mterlocal agreement between the county and the cities within the county that is consistent with countywide and local age 2 WHEREAS the HFTF recommended a document recording fee as a source of regional dollars for low income housing development and support, and recommended that representatives of the County, Cities and the housing community work together to make decisions about the use and administration of such a fund, and WHEREAS in March 2002, Substitute House Bill 2060, hereinafter referred to as SHB 2060, was passed by the Washington State Legislature and was signed into law by the Governor as Chapter 294, 2002 Washington Laws in April 2002, and was effective on June 13, 2002 SHB 2060 provides, in large part, that: housing needs and policies, and pursuant to the eligible activities listed in the SHB 2060 legislation, and WHEREAS, existing Interlocal Cooperation Agreements or Joint Agreements between King County and cities in the King County Community Development Block Grant Consortium, hereinafter referred to as the "CDBG Agreements and/or existing Interlocal Cooperation Agreements between King County and cities in the King County HOME Investment Partnerships Program Consortium, hereinafter referred to as the "HOME Agreements are not modified by this Regional Affordable Housing Program Agreement; and WHEREAS, the City and King County agree that affordable housing is a regional issue, that cooperation between the Cities and the County is beneficial to the region, and that a regional approach to utilizing the SHB 2060 funds will allow those funds to be used in the most productive manner; and WHEREAS, it is mutually beneficial and desirable to enter into a cooperative agreement in order to administer the SHB 2060 revenue as a regional fund, as authorized by the Intergovernmental Cooperation Act, RCW 39 34, and, as required by SHB 2060; NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING CIRCUMSTANCES AND IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS RAHP ICA Page 3 I. Definitions and Interpretation. Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise. "Joint Recommendations Committee" or "JRC" means the inter- lunsdictional body developed pursuant to the CDBG Agreements and the HOME Agreements. The JRC is currently composed of five (5) Cities' representatives and four (4) King County representatives. The King County Executive appoints the four County representative seats. The King County Consortium's HOME -only cities rotate one of the City representative seats, and the Suburban Cities Association selects the four remaining City representative seats. A small city representative is a pnority for one of the four remaining City seats. JRC members are appointed for a term two years, with the exception of the alternating HOME -only cities' seat, which revolves every year "HOME Working Group" means the staff work group consisting of staff representatives from participating Cities and from the County that work together to recommend annual capital fund allocations for housing projects and related policies to the inter junsdictional Joint Recommendations Committee. "2060 Planning Group" means the planning group consisting of staff representatives from the Cities, from the County, and from the housing community that worked together between August 2002 and October 2002 to develop guidelines for the local portion of the SHB 2060 funds, pursuant to the recommendations of the HFTF RAHP ICA Page 4 II. General Agreement RAHP ICA Page 5 The purpose of this agreement is to establish the "Regional Affordable Housing Program hereinafter "RAHP to be administered by King County in cooperation with Cities and Towns within the County that choose to participate in the program. The local portion of SHB 2060 revenue shall be administered as a regional fund by the King County Housing and Community Development Program in a manner that is consistent with countywide and local housing needs and policies. The City and the County agree to cooperate in undertaking RAHP activities. III. General Administration. Distribution and Use of the RAHP. A. Expansion and role of the JRC The JRC shall be the body that reviews and adopts annual RAHP fund allocations and related allocation polices, consistent with the King County Council adopted RAHP Guidelines, the Consolidated Housing and Community Development Plans of the King County Consortium and the City of Seattle, and other local housing plans, as applicable. The membership of the JRC, as authonzed by the CDBG and HOME Agreements, and as defined herein, shall be expanded to include an appointment from the City of Seattle. The Seattle JRC representative will attend meetings that concern the SHB 2060 fund and will be entitled to vote solely on SHB 2060 issues and not on other King County Consortium C. Expansion of the HOME Working Group The HOME Working Group, as defined herein, shall be expanded to include an appointment from the City of Seattle's Office of Housing, and shall be re -named the "RAHP/HOME Working Group" Seattle staff will be entitled to participate solely in making SHB 2060 program recommendations and not in other King County Consortium matters coming before the RAHP/HOME Working Group. Each city that participates in the RAHP is entitled to have a staff person on the RAHP/HOME Working Group B. Incorporation by reference of certain amendments to the King County Consortium's CDBG and HOME Agreements. CDBG and HOME Agreement Cities and the County agree to convene a special working group in 2003 to recommend changes and/or expansion of the representation of cities on the JRC in the CDBG and HOME Agreements. The special working group shall make recommendations on the constitution of the JRC in time for CDBG and HOME Agreement cities to reach agreement on amendments by December 31, 2003 Amendments made to the CDBG and HOME Agreements concerning the representation of cities on the JRC, shall be incorporated by reference into this RAHP Agreement and the RAHP Guidelines. Amendments to the CDBG and HOME Agreement cities' representation on the JRC shall not alter the City of Seattle's seat on the JRC for RAHP purposes. matters coming before the JRC The Seattle representative shall be an elected official, department director or comparable level staff RAHP ICA Page 6 D. Role of the RAHP /HOME Working Group The RAHP/HOME Working Group shall make annual RAHP fund allocation and related allocation policy recommendations to the JRC The RAHP/HOME Working Group recommendations shall be consistent with the King County Council adopted RAHP Guidelines, the Consolidated Housing and Community Development Plans of the King County Consortium and the City of Seattle, and other local housing plans, as applicable E. Administration of RAHP Programs. The King County Housing and Community Development "HCD Program staff shall distribute RAHP funds pursuant to the allocations adopted annually by the JRC, and shall administer the program pursuant to the RAHP Agreement and the King County Council adopted RAHP Guidelines, attached hereto as Exhibit #1 RAHP ICA Page 7 Pursuant to the RAHP Guidelines, the RAHP/HOME Working Group shall examine the percentages of RAHP funds distributed to the subregions of the County following the 2004 and 2005 funding rounds, and shall recommend actions to achieve geographic equity by the time the RAHP Agreement expires in 2006 City and County staff will work together to take actions to achieve geographic equity in the distribution of RAHP funds. King County HCD staff shall provide the RAHP/HOME Working Group, the JRC, and participating jurisdictions with an annual report that provides information about the capital housing projects that were awarded RAHP funds in that year; in addition to the status of capital housing projects that were awarded RAHP funds in a pnor year(s) King County HCD staff shall invite the staff of participating cities to be involved in a focus group to further develop the RAHP Operations and Maintenance "O &M Fund, and to be on the review panel that will recommend O &M funding awards to the JRC G. Interest on the RAHP Fund. Interest accrued on the sixty percent (60 of the SHB 2060 revenue retained by King County in a fund for the RAHP shall remain with the RAHP fund and will be distributed to projects according to the subregional allocation target formula found in the RAHP Guidelines, attached as Exhibit 1 F. Administrative Costs. King County agrees to pay the costs of admimstenng the Regional Affordable Housing Program. No portion of the sixty percent (60 of the SHB 2060 revenue retained by King County in a fund for the RAHP shall be utilized for RAHP administration. H. Sub Regional Geoeranhic Equity The parties intend that the RAHP funds shall be awarded to projects throughout King County in a fair and equitable manner over the duration of this agreement. Equity is to be achieved through sub regional allocation targets, as follows A fixed percentage of RAHP local funds will be allocated to sub- RAHP ICA Page 8 regions of the County by the end of this 4 -year Agreement, as specified by a formula contained in the RAHP Guidelines, attached hereto as Exhibit #1 I. General Use of Funds. The local portion of the SHB 2060 revenue shall be utilized to meet regional housing pnonties for households at or below 50% of area median income, as established in the RAHP Guidelines, attached hereto as Exhibit #1 J. Compliance with Fair Housm2 Laws. Parties to this agreement must take actions necessary to ensure compliance with the Federal Fair Housing Act, as amended, the Amencans with Disabilities Act of 1990, and other applicable state and local fair housing laws. IV Agreement Duration This Agreement shall remain in full force and effect through December 31, 2006, when this agreement will expire. The 2060 Planning Group will re- convene in the spnng of 2006 to evaluate the RAHP and to recommend whether the RAHP Guidelines and the RAHP Interlocal Agreement should be re- negotiated or renewed in their current formats. V General Matters and Recordine A. No separate legal or administrative entity is created by this Agreement. Neither RAHP ICA Page 9 the JRC, the RAHP/HOME Working Group, nor the 2060 Planning Group are Auditor Signature of Chief Executive Officer Approved as Form. Signature of Cjt At orne)K Date 1 U l RAHP ICA Page 10 anticipated to acquire or to hold any real or personal property pursuant to this Agreement. Any personal property utilized in the normal course of the work of such bodies shall remain the property of the person or city initially offenng such personal property for the use of any such body B Pursuant to RCW 39.34 040, this Agreement shall be filed with the King County CITY OF d1. 1.1lJ.tli KING COUNTY, WASHINGTON Sin P. /6,L /e lil a J Name and Title ranted) Date /543 Date Ron Sims, County Executive Signature of County Prosecuting Attorney Date EXHIBIT 1 Regional Affordable Housing Program Guidelines A. Introduction Regional Affordable Housing Program Guidelines Guidelines for the Administration and Allocation of SHB 2060 Local Low Income Housing Funds In King County The provisions of Substitute House Bill 2060 became effective in Washington State on June 13, 2002 SHB 2060 created a document recording fee on certain documents to be utilized for low income housing. Administration of the fund is shared between local governments and the State. The local portion of SHB 2060 funds is to be administered pursuant to a cooperative agreement between the County and the Cities and Towns within the County The work of the Housing Finance Task Force "HFTF appointed by the King County Growth Management Planning Council in 1994, led to the passage of SHB 2060 In recognition of the recommendations made by the HFTF, a SHB 2060 Planning Group was invited to come together to produce guidelines for the King County SHB 2060 funds. The King County SHB 2060 Planning Group is made up of City representatives, County I City representatives included staff from the cities of: Bunen, Tukwila, Kent, Federal Way, Redmond, Kirkland, Issaquah, Shoreline, Covington, Seatac, Auburn, Seattle, Bellevue and ARCH Housing organization representatives included staff from the following- Seattle -King County Housing Development Consortium, Impact Capital, South King County Multi- Service Center, Hopelink, Fremont Public Association, Seattle Habitat for Humanity, South King County Habitat for Humanity, Friends of Youth, The Salvation Army, Community Psychiatric Clinic, Lifelong Aids Alliance, St. Andrews Housing Group, Housing Resource Group representatives and representatives from a variety of pnvate housing organizations in King County B. Duration of the Guidelines The King County SHB 2060 Planning Group strongly favored a regional low income housing fund source administered by King County The planning group worked hard to achieve a regional fund, and the Regional Affordable Housing Program Guidelines are the result of that work. The Regional Affordable Housing Program "RAHP Guidelines shall take effect after adoption by the King County Council, and shall remain in effect through December 31, 2006 In the spnng of 2006 the King County 2060 planning group shall be reconvened to evaluate the RAHP, and to make recommendations as to whether the RAHP guidelines should be amended or should remain in the current format. C. Decision Making Structure and Regional Allocation Method 1 Approving Body EDVP, YWCA, Mental Health Housing Foundation, Rental Housing Association, Highline -West Mental Health, Valley Cities Counseling, Seattle Emergency Housing Service, Common Ground, Vietnam Veterans Leadership Program RAHP Guidelines/ Page 2 The interjunsdictional Joint Recommendations Committee (JRC), as defined in the RAHP Interlocal Cooperation Agreement, hereinafter "RAHP Agreement" shall be the body that reviews and adopts RAHP funding allocations and related allocation policies. The JRC will be expanded, pursuant to the RAHP Agreement, to include representation from the City of Seattle on RAHP matters. Allocations and related policies adopted by the JRC must be consistent with these RAHP Guidelines, the Consolidated Plans of the King County Consortium and the City of Seattle, and other local housing plans, as applicable. 2. Annual Fund Allocation Recommendations The existing HOME Working Group, as defined in the RAHP Agreement, shall be renamed the RAHP/HOME Working Group and shall be expanded to include a staff representative from the City of Seattle City of Seattle staff will participate solely in making RAHP recommendations. The RAHP /HOME Working Group will work together to make RAHP fund allocation recommendations and related allocation policy recommendations to the JRC King County HCD staff will review all RAHP applications and make preliminary RAHP Guidelines/ Page 3 funding recommendations on them. Cities staff will review applications for projects in their junsdiction and make preliminary recommendations on those applications. Cities staff will receive information on all RAHP applications to review pnor to the meeting of the RAHP/HOME Working Group at which final funding recommendations are formulated for transmittal to the JRC RAHP/HOME Working Group participants will meet together to make annual RAHP funding recommendations to the JRC, and at other times dunng the year, as necessary, to discuss RAHP issues and make recommendations to the JRC 3 Subregional Allocation Targets The RAHP Fund will be a flexible fund that can address regional and subregional housing needs. The fund will use subregional allocation targets as a means to achieve geographic equity in the distribution of SHB 2060 funds by December 31, 2006, the date that these guidelines and the RAHP Agreements expire. a. Subregional Areas 2 Percent of unincorporated King County attributed to the North/East and South Subregions is based on the 2000 census data for households in the unincorporated portions of the King County Community Planning Areas, as listed in the 2002 Annual Growth Report. RAHP Guidelines/ Page 4 1) City of Seattle Subregion 2) North/East Subregion north and east urban and rural areas, including 34% of unincorporated King Count? King County RAHP Guidelines/ Page 5 3) South Subregion south urban and rural areas, including 66% of unincorporated b. Formula for Subregional Allocation Targets Each subregion will have a targeted percentage of the RAHP funds, including the interest on the RAHP funds, allocated to projects within the subregion over the 4 -year period of the RAHP Guidelines and the RAHP Agreement. Each subregion will receive allocations to projects within the subregion that are equal to or greater than 95 of the subregions' allocation target by December 31, 2006 The formula for allocating RAHP funds to the subregions is as follows One half of the RAHP funds shall be targeted for allocation amongst the three subregions based on each subregion's relative share of total existing need for affordable housing. Existing need shall be determined by the percentage of low income households paying more than 30% of their income for housing in the subregion, according to the 2000 U S Census data One half of the RAHP funds shall be targeted for allocation amongst the three subregions based on the subregions' growth targets for future need, as established through the Growth Management Planning Council. Future need shall be County RAHP Guidelines/ Page 6 determined by the subregions' relative share of total future need for affordable housing in the County A subregion's relative shareof _future need is the percentage of the subregion's affordable housing target for low income households relative to the cumulative affordable housing target for low income households of all junsdictions in the County, including unincorporated King When the U.S Census data has been broken down in the form needed to determine the subregional target percentages, it will be applied to the formula specified above in order to calculate the actual targets. The actual target percentages will be presented to the JRC for their approval to insert them into the RAHP Guidelines. c. RAHP/HOME Working Group to Monitor Subregional Allocation Targets The RAHP/HOME Working Group will monitor the subregional distribution of RAHP funds every allocation cycle. Following the 2004 and 2005 RAHP allocation cycles the working group will determine if any subregion(s) has received allocations below 95% of the subregion's allocation target. 3 King County demographers are working to break down the 2000 U.S Census Data in the form that is needed to develop the subregional allocation target percentages. 4 The percentage of a subregion's target relative to the cumulative target is derived by averaging the target percentages of the jurisdictions within that subregion. For each jurisdiction, the target percentage is calculated in the following manner• the number of households that a jurisdiction must plan for, per the 2002 -2022 Countywide Planning Policy (CPP) Growth Target, is multiplied by .24 or .20 (depending on the ratio of low wage jobs to low cost housing for the jurisdiction in Appendix 3 of the CPPs); that number is then divided by the cummulative D Use of the RAHP Funds 1 RAHP Priorities RAHP Guidelines/ Page 7 If any subregions have received allocations under 95% of their target allocation after the first two funding cycles, the working group will adjust the allocation targets of such subregion(s) in the third and/or fourth funding cycles, as needed. In addition, the Working Group will propose strategies and actions, for review by the JRC, that are designed to increase the percentage of RAHP funds spent in those subregion(s) Staff of the jurisdictions that are parties to the RAHP Agreement will work to implement actions that will aid in achieving geographic equity in RAHP allocations by December 31, 2006 Ton Priority- Capital funds for the acquisition, rehabilitation and/or new construction of eligible housing projects or units within housing projects. New construction is not eligible if the low income housing vacancy rate for all of King County exceeds 10 Second Priority- Building operations and maintenance funds for transitional housing projects or transitional units within housing projects that were built with Housing affordable housing target for low- income households of all King County jurisdictions, including unincorporated King County 5 The low income housing vacancy rate for each county will be established by the State, pursuant to the SHB 2060 legislation. Trust Fund dollars, and that require a supplement to the rental income in order to cover ongoing operating expenses. Third Priority. Operating funds for emergency shelters and licensed overnight youth shelters. Last priority: Rental assistance vouchers to be administered by a local housing authority in conformity with the Section 8 program. 2. RAHP Eligibility Ehaible Housing Tvoes Capital Funds permanent rental or ownership housing projects or units within housing projects, transitional housing projects or transitional units within housing projects, emergency shelters and licensed overnight youth shelters or shelter space within a housing project. Operating and Maintenance Funds transitional housing projects, emergency shelters and licensed overnight youth shelters. Ehmible Populations Served All projects or units funded with RAHP funds must serve households at or below 50% of area median income Families RAHP Guidelines/ Page 8 RAHP Guidelines/ Page 9 Homeless families and individuals, including youth Special needs populations, including seniors Disabled households or households with a disabled member Eligible Annlicants Nonprofit organizations Housing Authorities Local governments For profit entities are only eligible for capital funds in the top priority This is due to the language of the SHB 2060 legislation, which restricts operations and maintenance funds to projects "built with Housing Trust Funds" For -profit entities are not eligible for WA State Housing Trust Funds. Eligible use of RAHP Funds eligible uses of funds are subject to the RAHP priorities listed above. Capital funds Acquisition of land for a housing project or units in a project that will serve eligible population(s) New construction of a housing project or units in a project that will serve eligible population(s) Acquisition of a housing project or units in a project that will serve eligible population(s) E. RAHP Administration Rehabilitation of a housing project or units in a project that will serve eligible population(s) Capitalization of a maintenance replacement reserve in connection with a capital investment applicants may be new housing projects that will serve eligible populations, as well as existing housing projects that serve eligible populations. Rental assistance voucher program for housing projects or units within housing projects administered by a housing authonty Operations and Maintenance (O &M) Funds Ongoing building operations and maintenance expenses that cannot be covered by the rental income of the housing project; building O &M expenses must be directly related to running the building(s) and cannot include services (see section E 1 below for more information about the O &M fund program) Rental assistance vouchers to be administered by a local housing authonty in conformity with the Section 8 program. The RAHP funds shall be administered as a regional fund by the King County Housing and Community Development (HCD) Program. 6 Existing projects are housing projects or units m projects that already served eligible population(s) and already existed as of the date of application for funds. RAHP Guidelines/ Page 10 1 RAHP Capital Funds RAHP capital funds will be administered by the King County HCD's Housing Finance Program (HFP), in conjunction with other fund sources administered by HFP The HFP will staff the RAHP/HOME Working Group and work with staff of the participating cities in King County to develop RAHP funding allocation recommendations and related policy recommendations for JRC review and adoption. The HFP will distribute RAHP funds through contracts pursuant to the allocations adopted by the JRC, and will generate an annual RAHP report that provides information about the projects that received funding in the current year, as well as the status of projects awarded RAHP funds in poor year(s) By request of the 2060 Planning Group, the HFP staff will apply the terms of the King County Housing Opportunity Fund "HOF to RAHP contracts, with the exception of the following: to the extent that there are differences between the HOF guidelines and RAHP guidelines, the RAHP guidelines will apply; a financial match by the local government where a housing project is to be located is not required, but is encouraged. RAHP Guidelines/ Page 11 RAHP funds will have no maximum subsidy per unit, but will be limited to 50% of the total development cost of a project. 2. RAHP Operations and Maintenance Fund The local RAHP O &M fund will be administered through the King County HCD Program's Homeless Housing Programs "HHP Section. The local portion of SHB 2060 funds to be used as O &M for transitional housing projects and emergency shelters will be 16% of the anticipated average amount of local SHB 2060 dollars ($2.2 million) In order to hold the RAHP O &M fund steady so that multi -year commitments can be awarded to eligible projects, the O &M portion of the fund will be held at $352,000 per year (16% of the total $2.2 million average) for the duration of the RAHP Guidelines. As the total local portion of SHB 2060 funds collected fluctuates from year to year, the O &M portion will remain at $352,000 and the remainder of the local portion will be available for the other pnonties. The pnonty for RAHP O &M funds will be existing projects that the Washington State O &M fund is unlikely to support. The pnonties for the State O &M fund are new housing The percentage of local SHB 2060 funds set aside for O &M was determined by the 2060 Planning Group, which worked together to balance O &M needs and other priority needs in the County Given the fact that 40% of the locally collected funds are sent to the State of Washington solely for O &M use, and the fact that King County projects can apply for the State O &M funds, the 2060 Planning Group felt that local O &M needs and other priority needs are adequately balanced at this percentage. RAHP Guidelines/ Page 12 RAHP Guidelines/ Page 13 projects that are simultaneously applying for WA State Housing Trust Fund capital funds and shelters receiving Emergency Shelter Assistance Program "ESAP funds. Therefore, the local RAHP O &M fund will pnontize existing transitional housing projects and shelters that do not receive ESAP funds. Following the adoption of the RAHP Guidelines and the RAHP Agreement by the jurisdictions in King County that elect to participate in the RAHP, the HHP will convene a focus group of city staff and stakeholders to further develop the parameters of the RAHP O &M fund and the RAHP O &M Request for Proposals. The RAHP O &M funds will be awarded in multi -year commitments and will have minimum and maximum grant amounts, however, the minimum and maximum amounts and other O &M fund details will be determined by the O &M focus group and will be reviewed by the JRC. The HHP will invite city staff and other stakeholders to participate on the panel to review applications for the RAHP O &M funds. The review panel will recommend O &M fund awards to the JRC for final adoption.