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HomeMy WebLinkAboutReg 2022-07-18 Item 4 - Presentation - South King Housing and Homelessness Partners Progress Report and Preliminary 2023 Work PlanDEVELOPMENT OF 2023 SKHHP WORK PLAN Tukwila City Council Angela San Filippo, SKHHP Executive Manager | asanfilippo@skhhp.org July 18, 2022 1 SKHHP MISSION South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. 2 OBJECTIVES Housing Policy and Planning:Share technical information and resources to promote sound housing policy Affordable Housing Investment:Coordinate public resources to attract greater private and public investment for affordable housing in South King County Outreach, Education, and Advocacy:Provide a unified voice to advocate for South King County needs at a local, regional, and state levels 3 2021 SKHHP ANNUAL PROGRESS UPDATE •Appointment of inaugural SKHHP Advisory Board •SKHHP Foundation received WA nonprofit status •SKHHP Housing Capital Fund •9 member Cities adopt Interlocal Agreement to provide mechanism to pool sales tax credit funds authorized by SHB 1406 •Draft funding guidelines •Adopted administrative procedures •Support to 6 partner jurisdictions through Housing Action plan development and adoption •Adoption of State legislative priorities •Awarded Department of Commerce funds for collaborative effort to inventory and monitor regulated and unregulated affordable housing in South King County 4 2022 AREAS OF ONGOING FOCUS •Execute first funding round of SKHHP Housing Capital Fund •Build funding support •Establish SKHHP 501(c)(3) •Continue relationship building with philanthropic organizations •Coordinate with developers to better understand barriers to increasing construction and preservation of affordable housing •Inventory and assessment of existing housing policies •Inventory and monitoring of affordable housing vulnerable to market pressures •Establish 3–5-year goals and objectives 5 WORK PLAN PROCESS Staff workgroup and Advisory Board work plan development APRIL –MAY Executive Board work plan and budget development MAY –JUNE Review and input sought from partner Councils JUNE –AUGUST Executive Board adoption of work plan and budget AUGUST Partner jurisdiction adoption of 2023 work plan and budget FALL –WINTER 6 WORK PLAN ORGANIZATION 5 goal statements to advance SKHHP’s mission and objectives •Action items •Critical –necessary to carry out ILA or fully execute work that began in previous years •Important –priority but not necessary •Desirable –not as high priority, would be nice to get to 7 Critical •Develop a long-term funding strategy for the SKHHP Housing Capital Fund and facilitate conversations with member jurisdictions to identify and explore dedicated sources of revenue for affordable housing at the local and regional level •Develop annual work plan and budget •Generate and distribute quarterly progress reports to SKHHP Executive Board and member jurisdictions Define strategy, direction, and long-term goals to implement the SKHHP Interlocal Agreement. Important •Develop a plan to build capacity of SKHHP 2023 SKHHP WORK PLAN PROPOSAL 8 Critical •Facilitate final 2022 funding allocations through member Councils •Prepare contract documents and distribute funds for awarded projects •Monitor funded projects including evaluating performance and tracking loan payments •Work with administering agency to maintain records and produce regular financial reports for the SKHHP Housing Capital Fund Build long-term sustainability for SKHHP Housing Capital Fund. Important •Work collaboratively with public funders at the state and local levels to promote shared affordable housing goals and equitable geographic distribution of resources •Work with private investors and lenders to maximize leverage of public investment into affordable housing •Work with member cities and project sponsors to start developing a pipeline of project to be funded over the next five years •Actively vet potential projects and lead funding policy and prioritization discussions with SKHHP Executive Board 2023 SKHHP WORK PLAN PROPOSAL 9 2023 SKHHP WORK PLAN PROPOSAL Critical •Continue to improve and refine and conduct regular updates to housing policy matrix and affordable housing database (being developed in 2022) •Convene city and county land use planners to share best practices and increase coordination and collaboration on housing policy and planning •Support efforts to advance 5-year action plan identified by the Regional Affordable Housing Task Force •Develop subregional housing preservation strategies Work with partner jurisdictions to enhance and develop new local policies and programs that protect existing affordable housing stock, provide housing security, and accelerate access to affordable housing. Important •Develop a program to assist member cities with administering local housing incentive programs, including density bonus, multifamily tax exemption (MFTE), impact fee waivers, and other programs 1 0 Critical •Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP’s mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County Represent South King County and its unique affordable housing needs at all relevant decision tables and foster collaboration between partners. 2023 SKHHP WORK PLAN PROPOSAL Important •Build relationships with state and federal legislators through organizing work sessions, and providing progress updates 1 1 Critical •Coordinate with housing organizations and stakeholder groups to provide education and engagement opportunities for elected officials, stakeholders, and community members •Monthly SKHHP Executive Board educational topics on emerging housing and homelessness topics Further strengthen regional stakeholders’ understanding of the spectrum of affordable housing options, the range of related needs and opportunities, and the housing system. Important •Annual updates to non- SKHHP South King County cities and relevant stakeholder groups 2023 SKHHP WORK PLAN PROPOSAL Desirable •Work with HDC, affordable housing developers, and city and county planners to reimagine the South King County Joint Planners and Developers work group 1 2 DRAFT 2023 SKHHP BUDGET Increased jurisdiction contributions that work towards a balanced budget that includes: •Two full time positions •Executive Manager •Program Coordinator •Compensation for Advisory Board members •Professional services for executing housing capital fund contracts 1 3 1 4 P a g e | 1 Memorandum South King Housing and Homelessness Partners TO: Tukwila City Council FROM: Angela San Filippo, SKHHP Executive Manager DATE: July 12, 2022 RE: Overview 2023 work Plan and budget priorities for review and feedback BACKGROUND The following is an outline of the 2023 SKHHP work plan and budget process, status update on actions from the 2022 work plan, and overview of 2023 work plan priorities. The intention is to provide a progress update and solicit feedback from SKHHP partner Councils prior to SKHHP Executive Board consideration for adoption at the August 19 meeting. The May and June SKHHP Executive Board meetings focused on 2023 budget and work plan development and priority setting through discussion of SKHHP’s mission and goals, status update on the 2022 work plan, and input from the SKHHP staff work group and Advisory Board. A draft 2023 work plan and budget will be brought forward for SKHHP Executive Board consideration at the August 19 meeting, upon approval the work plan and budget will proceed to SKHHP partner jurisdictions for adoption , as depicted in the work flow diagram below. SKHHP PARTNER INPUT SKHHP is in the development stages of the 2023 annual work plan and budget and it is important to hear from each of SKHHP’s partners during this process. As you read through the following work plan update and draft 2023 work plan goals and action items consider the following questions: 1. Does the SKHHP mission convey the purpose and values that are important to your jurisdiction? April -May: Staff workgroup and Advisory Board work plan development May -June: Executive Board work plan and budget development June -August: Review and input sought from partner Councils August 19: Executive Board consideration of adoption of 2023 work plan and budget Fall -Winter: SKHHP partner jurisdiction adoption of work plan and budget 15 P a g e | 2 2. Do the SKHHP objectives convey intention and direction that will help SKHHP achieve this mission? 3. Do you have suggestions that you would like to see incorporated into SKHHP’s 2023 work plan or budget that reflect your jurisdiction’s needs and are aligned with SKHHP’s mission and goals? 4. Do you have any other questions or concerns regarding SKHHP’s annual work plan and budget process? SKHHP MISSION AND OBJECTIVES SKHHP’s mission statement is meant to be a concise statement that articulates SKHHP’s overarching purpose and conveys SKHHP’s values. The objectives provide broad vision and direction that guide the development of goals and action items in SKHHP’s work plan. Mission South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. Objectives Housing Policy and Planning. Share technical information and resources to promote sound housing policy Affordable Housing Investment. Coordinate public resources to attract greater private and public investment into production and preservation for affordable housing in South King County Outreach, Education, and Advocacy. Provide a unified voice to advocate for South King County housing needs and priorities at a local, regional, and state level 2021 PROGRESS UPDATE The following is a bulleted progress update of SKHHP work conducted in 2021. • Appointment of inaugural SKHHP Advisory Board • SKHHP Foundation received WA nonprofit status • SKHHP Housing Capital Fund o 9 member Cities adopt Interlocal Agreement to provide mechanism to pool sales tax credit funds authorized by SHB 1406 o Draft funding guidelines o Adopted administrative procedures 16 P a g e | 3 • Support to 6 partner jurisdictions through Housing Action plan development and adoption • Adoption of State legislative priorities • Awarded Department of Commerce funds for collaborative effort to inventory and monitor regulated and unregulated affordable housing in South King County 2022 WORK PLAN UPDATE – AREAS OF ONGOING FOCUS This following is a brief list of areas of ongoing focus that staff are actively engaged in: • Execute first funding round of SKHHP Housing Capital Fund • Build funding support o Establish SKHHP 501(c)(3) o Continue relationship building with philanthropic organizations • Coordinate with developers to better understand barriers to increasing construction and preservation of affordable housing • Inventory and assessment of existing housing policies • Inventory and monitoring of affordable housing vulnerable to market pressures • Establish 3–5-year goals and objectives 2023 DRAFT WORK PLAN AND BUDGET Budget During the first couple years of operations, the SKHHP operating budget had cost savings attributable to delays in hiring staff. Beginning in 2022, the cost savings allowed SKHHP to institute annual incremental increases in City member contributions with the intention that SKHHP will reach a balanced budget within the next three years. The proposed 2023 SKHHP operating budget includes: • Two full time positions o Executive Manager o Program Coordinator • Compensation for Advisory Board members • Professional services associated with executing housing capital fund contracts 17 P a g e | 4 DRAFT 2023 SKHHP Operating Budget Projected beginning fund balance - January 1, 2023 $194,188 Projected ending fund balance - December 31, 2023 $116,771.76 REVENUES Auburn $34,385 Burien $19,838 Covington $9,919 Des Moines $9,919 Federal Way $44,965 Kent $44,965 Maple Valley $9,919 Normandy Park $5,290 Renton $44,965 Tukwila $9,919 Unincorporated King County** $44,965 King County** $30,035 Interest earnings Office space (in-kind donation) $12,000 TOTAL REVENUES $321,084.00 Spend down balance $77,416.24 TOTAL $398,500.24 EXPENSES Salaries and benefits $290,803.85 Misc – professional services, travel, phone $12,000.00 Advisory Board compensation $14,400.00 Office space (in-kind donation) $12,000.00 Supplies $1,000.00 Professional development $5,000.00 Interfund IT $28,160.00 Subtotal $363,363.85 Administering agency – 10% Administrative Fee* $35,136.39 TOTAL $398,500.24 *10% administrative fee is calculated as a percentage of operating costs which does not include in-kind donations, or carry forwards. **King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year. 18 P a g e | 5 Work Plan The following five goals and corresponding action items implement the SKHHP Interlocal Agreement and build upon previous year work plans. In recognition that SKHHP currently has only one full time staff person and full execution of SKHHP’s work plan requires SKHHP to be operating at full staff capacity, each action item is identified as critical, important, or desirable, which are defined as follows: • Critical – necessary to carry out the SKHHP Interlocal Agreement or fully implement work that began in previous years • Important – priority but not necessary • Desirable – not as high priority, would be nice to get to This prioritization of action items allows for some flexibility based on staff capacity as well as some level of adaptability based on emerging issues. Goal 1. Define strategy, direction, and long-term goals to implement SKHHP Interlocal Agreement Critical Important • Develop a long-term funding strategy for the SKHHP Housing Capital Fun and facilitate conversations with member jurisdictions to identify and explore dedicated sources of revenue for affordable housing at the local and regional level. • Develop a plan to build capacity of SKHHP. • Develop annual work plan and budget. • Generate and distribute quarterly progress reports to SKHHP Executive Board and member jurisdictions. 19 P a g e | 6 Goal 2. Build long-term sustainability for SKHHP Housing Capital Fund. Critical Important • Facilitate final 2022 funding allocations through member Councils. • Work collaboratively with public funders at the state and local levels to promote shared affordable housing goals and equitable geographic distribution of resources. • Prepare contract documents and distribute funds for awarded projects. • Work with private investors and lenders to maximize leverage of public investment into affordable housing. • Monitor funded projects including evaluating performance and tracking loan payments. • Work with member cities and project sponsor to start developing a pipeline of projects to be funded over the next five years. • Work with administering agency to maintain records and produce regular financial reports for the SKHHP Housing Capital Fund. • Actively vet potential projects and lead funding policy and prioritization discussions with SKHHP Executive Board. 20 P a g e | 7 Goal 3. Work with partner jurisdictions to enhance and develop new local policies and programs that protect existing affordable housing stock, provide housing security, and accelerate access to affordable housing. Critical Important • Develop subregional housing preservation strategies. • Continue to improve and refine and conduct regular updates to housing policy matrix and affordable housing database (being developed in 2022). • Develop a program to assist member cities with administering local housing incentive programs, including density bonus, multifamily tax exemption (MFTE), impact fee waivers, and other programs. • Convene city and county land use planners to share best practices and increase coordination and collaboration on housing policy and planning. • Support efforts to advance 5-year action plan identified by the Regional Affordable Housing Task Force. Goal 4. Represent South King County and its unique affordable housing needs at all relevant decision tables and foster collaboration between partners. Critical Important • Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP’s mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County. • Build relationships with state and federal legislators through organizing work sessions, and providing progress updates. 21 P a g e | 8 Goal 5. Further strengthen regional stakeholders’ understanding of the spectrum of affordable housing options, the range of related needs and opportunities, and the housing system. Critical Important Desirable • Coordinate with housing organizations and stakeholder groups to provide education and engagement opportunities for elected officials, stakeholders, and community members. • Annual updates to non- SKHHP South King County cities and relevant stakeholder groups. • Work with HDC, affordable housing developers, and city and county planners to reimagine the South King County Joint Planners and Developers work group. • Monthly SKHHP Executive Board educational topics on emerging housing and homelessness topics. NEXT STEPS Input from SKHHP member jurisdictions will be brought forward along with the draft 2023 SKHHP Work Plan and budget for consideration of adoption at the August 19 Executive Board meeting. Following Executive Board adoption the final 2023 work plan and budget will be brought to each member jurisdiction for adoption. 22