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HomeMy WebLinkAboutSpecial 2023-02-13 Item 2D - Resolution - Authorize South King Housing and Homelessness Partners to Execute All Documents for Funding of Affordable Housing ProjectsCOUNCIL AGENDA SYNOPSIS CI- :, 4 Initials ITEM No. O,7 `� Meeting Date Prepared by Mayor's review Council review —1 *4103 1 2/13/23 LH Spec 2.D. \\......., 290a ITEM INFORMATION STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 2/13/23 AGENDA ITEM TITLE Resolution authorizing allocation from SKHHP Housing Capital Fund CATEGORY 11 Mtg Discussion Date 2/13/23 ❑ Motion Mtg Date 11 Resolution Mtg Date 3/6/23 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other MIX Date SPONSOR 11 Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S The proposed resolution authorizes the allocation of $29,804.43 from the city's existing SUMMARY contributions to the South King Housing & Homelessness Partners (SKHHP) Housing Capital Fund. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 2/6/23 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Unanimous Approval; Forward to Special Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $n/a $29,804.43 $ Fund Source: Comments: Tukwila contributes 10% of its HH 1406 funds to the SKHHP Capital Fund MTG. DATE RECORD OF COUNCIL ACTION 2/13/23 MTG. DATE ATTACHMENTS 2/13/23 Information memo dated 1/23/23 Draft resolution PowerPoint Minutes from the 2/6/23 Planning and Community Development Commmittee meeting 97 98 W i City of Tukwila 190a Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning & Community Development Committee FROM: Laurel Humphrey, Legislative Analyst Claire Goodwin, Executive Manager, SKHHP DATE: January 23, 2023 SUBJECT: Resolution authorizing allocation from SKHHP Housing Capital Fund ISSUE Staff is seeking Council approval of a resolution that authorizes the allocation of $29,804.43 from the City's existing contributions to the South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund to finance affordable housing projects. This is the first of what will be an annual process. SUMMARY SKHHP was created in 2019 through an interlocal agreement of several cities and King County to address housing needs in South King County. There are currently 11 member jurisdictions: Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, Tukwila, and King County. Council President Cynthia Delostrinos Johnson serves as Tukwila's representative on the SKHHP Executive Board. The Tukwila City Council approved the SKHHP 2023 Work Plan and Budget on October 18, 2022 via Resolution 2055. Housing Capital Fund Substitute House Bill 1406 (2019) authorized cities and counties to recapture a portion of Washington State sales tax for use to support affordable housing initiatives. SKHHP member cities contribute these funds to the SKHHP Housing Capital Fund. This approach allows funds from multiple cities to be pooled and made available to projects across South King County with the goals of leveraging other funds and maximizing the creation of affordable housing overall. In 2020, the Tukwila City Council authorized 10% of its SHB 1406 funds to go toward the Housing Capital Fund, retaining 90% to be used for rental assistance for Tukwila residents due to the impacts of COVID-19. Staff intends to bring options to revisit this ratio to the PCD Committee for consideration in 1st Quarter. Tukwila has contributed $30,976 to the Housing Capital Fund to date. Per the SKHHP Interlocal Agreement, member City Councils must take separate action on an annual basis to authorize the allocation of Housing Capital Funds already collected. Recommendation The SKHHP Executive Board's funding recommendation outlined below reflects the funding guidelines, policies and priorities previously adopted. After careful deliberation, the SKHHP Executive Board concurred with the recommendation of the SKHHP Advisory Board and recommends funding $1,393,308 for two projects as described in the December 16, 2022 memo (Exhibit A of the resolution). 99 INFORMATIONAL MEMO Page 2 The SKHHP Executive Board is requesting Tukwila funding of $29,804.43 (already contributed to the Housing Capital Fund) for the following projects: 1. $6,417.34 for Habitat for Humanity of Seattle -King and Kittitas Counties - Burien a. City of Tukwila funds represent 2.1% ($6,417.34/$300,000) of SKHHP funds proposed for this project. b. City of Tukwila funds represent 0.07% ($6,417.34/$8,401,776) of the total development costs. 2. $23,387.09 for Mercy Housing Northwest - Burien Family Housing a. City of Tukwila funds represent 2.1% ($23,387.09/$1,093,308) of SKHHP funds proposed for this project. b. City of Tukwila funds represent 0.05% ($23,387.09/$47,426,519) of the total development costs. Tukwila has already contributed sales tax credit receipts in the amount of $30,976 to SKHHP's Housing Capital Fund and with this Council approval those funds may be allocated to the projects recommended by the SKHHP Executive Board. Detailed descriptions of the projects, funding requests, rationale, and recommended conditions of funding for projects by the SKHHP Executive Board are included in the Executive Board memo. If not approved, SKHHP will not have Tukwila funds to contribute to the regional efforts to advance affordable housing projects that meet urgent local needs and priorities. RECOMMENDATION Staff is seeking a Committee recommendation on the resolution to forward to either the February 13, 2023 Special Consent Agenda or Committee of the Whole. ATTACHMENTS 1. Draft Resolution 100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE DULY -APPOINTED ADMINISTERING AGENCY FOR SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP) TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO AGREEMENTS FOR THE FUNDING OF AFFORDABLE HOUSING PROJECTS, AS RECOMMENDED BY THE SKHHP EXECUTIVE BOARD, UTILIZING FUNDS CONTRIBUTED BY THE CITY OF TUKWILA TO THE SKHHP HOUSING CAPITAL FUND. WHEREAS, on February 21, 2019, the City of Tukwila entered into an Interlocal Agreement to form South King Housing and Homelessness Partners (SKHHP) to help coordinate the efforts of South King County cities to provide affordable housing; and WHEREAS, on May 17, 2021, the City of Tukwila entered into an Interlocal Agreement for the purposes of pooling sales tax receipts with SKHHP to administer funds through the SKHHP Housing Capital Fund; and WHEREAS, the SKHHP Executive Board has recommended that the City of Tukwila participate in the funding of certain affordable housing projects and programs hereinafter described; and WHEREAS, the SKHHP Executive Board has developed a number of recommended conditions to ensure the City's affordable housing funds are used for their intended purpose and that projects maintain their affordability over time; and WHEREAS, pursuant to the SKHHP formation Interlocal Agreement, each legislative body participating in funding a project or program through SKHHP's Housing Capital Fund must authorize the application of a specific amount of the City's funds contributed to the SKHHP Housing Capital Fund to a specific project or program; and CC:\Legislative Development\SKHHP Allocation 1-12-23 LH:AY Review and analysis by Andy Youn Page 1 of 2 101 WHEREAS, the City Council desires to use $29,804.43 from funds contributed to the SKHHP Housing Capital Fund as designated below to finance the projects recommended by the SKHHP Executive Board; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Pursuant to the Interlocal Agreement, the City Council authorizes the duly -appointed administering agency of SKHHP to execute all documents and take all necessary actions to enter into agreements on behalf of the City to fund projects through Habitat for Humanity of Seattle -King and Kittitas Counties in Burien and Mercy Housing Northwest — Burien Family Housing, in a combined total of $29,804.43. Section 2. The agreements entered into, pursuant to Section 1 of this resolution, shall include terms and conditions to ensure that the City's funds are used for their intended purpose and that the projects maintain affordability over time. In determining what conditions should be included in the agreements, the duly -appointed administering agency of SKHHP shall be guided by the recommendations set forth in the SKHHP Executive Board's memorandum dated December 16, 2022, a copy of which is attached hereto as Exhibit A. Section 3. This resolution will take effect and be in full force immediately upon passage and signatures. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC Cynthia Delostrinos Johnson City Clerk Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment: Exhibit A— SKHHP Executive Board memorandum dated December 16, 2022 CC:\Legislative Development\SKHHP Allocation 1-12-23 LH:AY Review and analysis by Andy Youn 102 Page 2of2 SK:I: South King Housing and Homelessness Partners TO: City of Auburn Council Members City of Burien Council Members City of Des Moines Council Members City of Federal Way Council Members Memorandum City of Kent Council Members City of Normandy Park Council Members City of Renton Council Members City of Tukwila Council Members FROM: SKHHP Executive Board DATE: December 16, 2022 RE: 2022 SKHHP Housing Capital Fund Recommendation OVERVIEW The 2022 SKHHP Housing Capital Fund was the first funding round made possible by the pooling of resources from SKHHP member jurisdictions. SKHHP received three applications representing requests for just under $2.4 million in local funds to develop 135 units of affordable housing. After careful deliberation, the SKHHP Executive Board concurred with the recommendations of the SKHHP Advisory Board, and is recommending funding $1,393,308 for two projects. These recommendations advance projects that meet urgent local priorities, including mixed income workforce housing, permanent supportive housing, and affordable homeownership. As rents and home sale prices continue to rise in our region, so does the need for affordable housing. Your investment in the SKHHP Housing Capital, leveraged with millions of dollars from other sources, will provide this much needed housing to hundreds of underserved members of our community. The following 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 Page 1 of 11 103 1. HABITAT FOR HUMANITY SEATTLE -KING AND KITTITAS COUNTIES Funding request: Advisory Board recommendation: PROJECT SUMMARY $300,000 (secured grant) $300,000 (secured grant) See attached proposed funding sources for distribution of City funds Habitat for Humanity is requesting grant funds in the amount of $300,000 for a homeownership project located in Burien. The proposed project is phase I of II of a new development that will result in 40 affordable condominiums. Phase I consists of the construction of 20 three bedroom townhomes, 1.5 bath houses for households earning up to 50% of area median income (AMI). The project proposal is to provide permanent affordability through a land trust administered by Habitat and sold with an individual ground lease that allows Habitat the right of first option to purchase the home upon resale with a set 1.5% appreciation calculation in the lease agreement. As part of Habitat's homeownership model, homebuyers are required to put in 250 hours of sweat equity. The project also requires a Condominium Owners Association (COA) comprised of residents. The COA will address property issues and guidelines established in the land lease. Through the COA, reserves are established for the repair and maintenance of the buildings and to address ongoing landscape and maintenance. The reserve fund will be managed by the COA and funded through a monthly fee that is part of the overall housing costs and included in the 33% housing to household income ratio provided to homebuyers. FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project was approved for participation in the City of Burien affordable housing demonstration program. • The project strongly aligns with SKHHP Housing Capital Fund priorities including: providing homeownership opportunities, collaboration with local community- based organizations, direct experience and connection to populations they are proposing to serve, and advancing racial equity. • The project schedule indicates construction to begin in 2022 and certificate of occupancies issued in 2024. • The site has convenient access to transit, shopping, and services. • The project provides significant financial leverage of other sources. Page 2 of 11 104 PROPOSED CONDITIONS Standard conditions (apply to all projects) 1. The Agency shall provide revised development and operating budgets based upon actual funding commitments, which must be approved by SKHHP staff. If the Agency is unable to adhere to the budgets, SKHHP staff must be immediately notified and new budget(s) shall be submitted by the Agency for SKHHP staff approval. SKHHP staff shall not unreasonably withhold its approval to revised budget(s), so long as such new budget(s) do 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 SKHHP's commitment of funds. 2. The Agency shall submit evidence of funding commitments from all proposed public and private funding 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 SKHHP staff, and describe the actions it will undertake to secure alternative funding and the timing of those actions subject to SKHHP staff review and approval. 3. Funds shall be used by Agency toward specific project costs as included in funding agreement and consistent with RCW 82.14.540. Funds may not be used for any other purpose unless SKHHP staff has given written authorization for the alternate use. If after the completion of the project there are budget line items with unexpended balances, SKHHP and other public funders shall approve adjustments to the project capital sources, including potential reductions in public fund loan balances. 4. 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. 5. 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 federal laws and regulations. 6. The Agency shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. 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 SKHHP. 8. Agency shall maintain the project in good and habitable condition for the duration of period of affordability. Page 3 of 11 105 Special conditions 1. Funds will be in the form of a secured grant with no repayment, so long as affordability and target population are maintained. 2. 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 SKHHP staff. Affordability 3 bedroom Total 60% 20 20 Total 20 20 106 Page 4 of 11 2. MERCY HOUSING NORTHWEST — BURIEN FAMILY HOUSING Funding request: Executive Board recommendation: PROJECT SUMMARY $1,093,308 $1,093,308 (forgivable loan) See attached proposed funding sources for distribution of City funds Mercy Housing Northwest is requesting funds in the amount of $1,093,308 for an 89 unit multifamily mixed income affordable rental housing development in Burien. The project proposal is to provide a mix of 1- 2- and 3 -bedroom apartments, for households with mixed incomes from 0-30%, 30-50%, and up to 60% of area median income, and set asides for households with a disability and homeless households. The proposed project is a partnership with Mary's Place. Mary's Place and Mercy Housing Northwest entered into a memorandum of understanding indicating Mary's Place's intent to subdivide the property and donate an approximate 2 acre portion to Mercy Housing Northwest for the proposed multifamily development. FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project aligns with Burien's Comprehensive Plan land use designation and has two routes for zoning approval — an applicant pursued site specific rezone or a City initiated area wide rezone as part of the Ambaum Corridor plan, both are currently underway. • The project strongly aligns with SKHHP Housing Capital Fund priorities including: collaboration with local community-based organizations, direct experience and connection to populations they are proposing to serve, meeting the needs of those and available to those most disproportionately impacted by housing costs, advancing racial equity. • The project has the opportunity to deliver mixed income housing on a significant scale in a location with access to transit and other amenities. • The project is part of a partnership with Mary's Place which will create significant shelter and services. • The project includes over half (54%) of the houses to be family -sized 2 and 3 bedroom units. • The project serves special needs population through a set aside for households with a disability and formerly homeless households. • The site has convenient access to transit, shopping, and services. Page 5 of 11 107 • The project is expected to provide significant financial leverage of other sources. PROPOSED CONDITIONS Standard conditions (apply to all projects) 1. The Agency shall provide revised development and operating budgets based upon actual funding commitments, which must be approved by SKHHP staff. If the Agency is unable to adhere to the budgets, SKHHP staff must be immediately notified and new budget(s) shall be submitted by the Agency for SKHHP staff approval. SKHHP staff shall not unreasonably withhold its approval to revised budget(s), so long as such new budget(s) do 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 SKHHP's commitment of funds. 2. The Agency shall submit evidence of funding commitments from all proposed public and private funding 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 SKHHP, and describe the actions it will undertake to secure alternative funding and the timing of those actions subject to SKHHP staff review and approval. 3. Funds shall be used by Agency toward specific project costs as included in funding agreement and consistent with RCW 82.14.540. Funds may not be used for any other purpose unless SKHHP staff has given written authorization for the alternate use. If after the completion of the project there are budget line items with unexpended balances, SKHHP and other public funders shall approve adjustments to the project capital sources, including potential reductions in public fund loan balances. 4. 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. 5. 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 federal laws and regulations. 6. The Agency shall maintain documentation of any necessary land use approvals and permits required by the jurisdiction in which the project is located. 7. 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 SKHHP. Page 6 of 11 108 8. Agency shall maintain the project in good and habitable condition for the duration of period of affordability. SPECIAL CONDITIONS 1. Funds will be in the form of a deferred, contingent, forgivable 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 SKHHP Staff. 2. 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 SKHHP staff. If the project is unsuccessful in securing Housing Choice Vouchers, the project may shift an allocation of units set aside at 30% AMI to either 50% or 60% AMI. Affordability Total 30% 35 30-50% 28 60% 26 Total 89 3. The net developer fee shall be established at the time of finalizing the Contract Budget. 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. 4. SKHHP staff shall review and approve the services budget and services plan for consistency with application. 5. Timeframe for funding commitment. The funding commitment continues 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 SKHHP 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. The SKHHP Executive Board 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. 6. The project will contain a 20% set aside for households with a disability, and 40% set aside for homeless households, unless otherwise approved by SKHHP staff. Page 7 of 11 109 3. ECOTHRIVE — BURIEN Funding request: $700,000 - $1,000,000 Executive Board recommendation: $0 PROJECT SUMMARY OVERVIEW EcoThrive is requesting grant funds in the amount of $700,000 - $1,000,000 for a homeownership project located in Burien. The project proposal is to provide permanent affordability through a limited -equity cooperative formed by homeowners as well as a community land trust that holds the land in trust. The proposed project is the new construction of 26 houses ranging in size from 350 square feet to 650 square feet for households earning between 30 and 50% of area median income (AMI). The property currently consists of a single family residential house that is uninhabitable. The property is currently zoned single family residential that allows for 6 dwelling units per acre. EcoThrive has submitted an application for the City of Burien's affordable housing demonstration program that would allow for a greater density of housing than is currently allowed on the property. Estimated approval for the affordable housing demonstration program is March of 2023. FUNDING RATIONALE The Executive Board supports the concept of the EcoThrive housing proposal but does not recommend funding at this time. The Executive Board would welcome an application in the next funding round. This would provide an opportunity for EcoThrive to address the issues identified below: • Further develop the plan for operational support of the limited equity cooperative and other supportive services. • Further develop and identify the plan for qualifying households for home loans. • Sweat equity at 10 hours per month in perpetuity may be a significant challenge for some households. • Obtain approval for City of Burien Affordable Housing Demonstration Program or pursuit of other land use changes that support the development proposal. • Include development cost estimate that helps establish soundness of development budget. • Further development of building design, parking, and conformance with zoning requirements. • Further develop plan for engaging, connecting, and working with households proposing to serve. Page 8 of 11 110 ATTACHMENT 1: Proposed Funding Sources Total contributed to Jurisdiction SKHHP Housing Capital Fund Habitat for Humanity - Burien Mercy Housing Northwest - Burien Family Housing Unallocated Auburn $305,338 $63,257.27 $230,532.27 $11,548.46 Burien $146,350 $30,319.52 $110,495.25 $5,535.23 Des Moines $51,777 $10,726.71 $39,091.99 $1,958.30 Federal Way $243,141 $50,371.84 $183,573.11 $9,196.05 Kent $330,312 $68,431.17 $249,387.81 $12,493.02 Normandy Park $2,863 $593.13 $2,161.58 $108.28 Renton $337,320 $69,883.02 $254,678.90 $12,758.08 Tukwila $30,976 $6,417.34 $23,387.09 $1,171.57 Total $1,448,077 $300,000 $1,093,308 $54,769 Page 9 of 11 111 ATTACHMENT 2: Project Economic Summaries Applicant: Habitat for Humanity Seattle -King and Kittitas Counties Project Name: Burien Location: 515 & 511 S. 136th Street, Burien, WA 98168 Project Description: New development of 20 homeownership condominium units Financing Sources: Funding source Proposed Amount Status SKHHP $300,000 Applied Housing Trust Fund $1,125,000 Committed King County HOME $1,547,282 Committed Fund for Humanity (developer) $4,860,994 $11,675 CHIP $568,500 Committed TOTAL $8,401,776 Development Budget: Proposed use Amount Per Unit Land acquisition $1,020,000 $51,000 Soft costs $414,250 $20,713 Development costs $6,734,026 $336,701 Other development costs $233,500 $11,675 TOTAL $8,401,776 $420,089 Page 10 of 11 112 Applicant: Mercy Housing Northwest Project Name: Burien Family Housing Location: 12845 Ambaum Blvd SW, Burien, WA 98146 Project Description: New development of 89 unit mixed -income rental housing Financing Sources: Funding source Proposed Amount Status SKHHP $1,093,308 Applied Land donation $1,750,000 Committed Bank loan $10,390,926 $410,563 4% LIHTC equity $16,523,298 To apply in 2024 Deferred developer fee $2,018,987 $532,882 State Housing Trust Fund $5,000,000 To apply 2023 Amazon grant $5,000,000 Applied King County $4,900,000 Applied Mercy loan fund (developer) $750,000 TOTAL $47,426,519 Development Budget Proposed use Amount Per Unit Land acquisition (donation) $1,750,000 $19,663 Soft costs $5,974,879 $67,134 Construction costs $36,540,135 $410,563 Other development costs $3,161,000 $35,517 TOTAL $47,426,519 $532,882 Page 11 of 11 113 114 South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations CLAIRE GOODWIN SKHHP EXECUTIVE MANAGER (5) Establishing SKHHP and the Housing Capital Fund ■ 2019: SKHHP was formed via an Interlocal Agreement. ■ Eleven member jurisdictions include: ▪ Auburn ° Federal Way ° Renton • Burien ° Kent ° Tukwila ▪ Covington ° Maple Valley ° King County • Des Moines ° Normandy Park ■ 2019: SHB 1406 (RCW 82.14.540) became law allowing jurisdictions to enact a local sales tax for the purpose of affordable housing; sales tax is a recapture of a portion of existing sales tax and does not raise the sales tax ■ 2021: City Council authorized the Interlocal Agreement for the Purpose of Pooling Sales Tax Receipts with SKHHP ▪ Allows for pooling of collected sales tax with SKHHP • Use of City funding requires approval of City Council South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations February 6, 2023 2 2022 SKHHP Housing Capital Fund ■ The first SKHHP Capital Fund application opened in 2022. ■ Three applications were received, all for projects in Burien. ■ The SKHHP Advisory Board reviewed and made recommendations to the SKHHP Executive Board to fund two of the three projects. ■ The SKHHP Executive Board agreed with the recommendations and is seeking each jurisdiction's approval. South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations February 6, 2023 3 CO Projects and Recommended Funding 1. Habitat for Humanity Seattle -King and Kittitas Counties: Burien • Homeownership project, Phase 1 construction of 20 three-bedroom townhouses • <50% of Area Median Income (AMI) • $300,000 2. Mercy Housing Northwest: Burien Family Housing • 89 -unit multifamily affordable rental housing development • Mixed income: 0-30%, 30-50%, and up to 60% of AMI • Includes 20% set aside for households with a disability and 40% set aside for households experiencing homelessness • $1,093,308 3. ecoTHRIVE: Burien • Homeownership project with 26 houses • 30-50% of AMI • $0 South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations February 6, 2023 4 Unallocated Proposed Funding Sources CO Jurisdiction Total contributed to SKHHP Housing Capital Fund Habitat for Humanity - Burien Mercy Housing Northwest - Burien Family Housing Burien Des Moines $305,338 $63,257.27 $146,350 $30,319.52 $51,777 $10,726.71 NM Normandy Park Renton Tukwila Total $243,141 $50,371.84 $330,312 $68,431.17 $2,863 $593.13 $337,320 $69,883.02 $30,976 $6,417.34 $1,448,077 $300,000 $230,532.27 $110,495.25 $39,091.99 $183,573.11 $249,387.81 $2,161.58 $11,548.46 $5,535.23 $1,958.30 $9,196.05 $12,493.02 $108.28 $254,678.90 $12,758.08 $23,387.09 $1,093,308 South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations $1,171.57 $54,769 February 6, 2023 5 Thank you CLAIRE GOODWIN SKHHP EXECUTIVE MANAGER C V G O O D W I N@ S K H H P. O R G 6 City of Tukwila City Council Planning & Community Development Committee Meeting Minutes February 6, 2023 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Kathy Hougardy, Chair; De'Sean Quinn, Thomas McLeod Staff Present: Derek Speck, Nora Gierloff, Brandon Miles, Nancy Eklund, Rachel Bianchi, Laurel Humphrey Guest: Claire Goodwin, SKHHP Chair Hougardy called the meeting to order at 5:30 p.m. BUSINESS AGENDA A. Resolution: South King Housing and Homelessness Partners Capital Fund Allocation Staff is seeking Council approval of a resolution that approves the allocation of $29,804.43 from the City's existing contributions to the South King Housing and Homelessness Partners Housing Capital Fund to finance two affordable housing pro'ects. Item(s) for follow-up: Ensure City Attorney review of project conditions. Committee Recommendation Unanimous approval. Forward to February 13, 2023 Special Consent Agenda. B. Grant Agreement: Comprehensive Plan Staff is seeking Council approval of $62,500 in grant funding from the Washington Department of Commerce to support the Comprehensive Plan update in 2023. Committee Recommendation Unanimous approval. Forward to February 13, 2023 Special Consent Agenda. 11. MISCELLANEOUS Chair Hougardy asked the Committee if they would support a 1St Quarter discussion on the status of multifamily tax exemption efforts. Committee members and staff discussed the factors involved in such a discussion. The Committee requested this be placed on an agenda in March. Staff noted that there is an updated version of the Seawolves lodging tax agreement on the Regular Meeting agenda. Councilmember McLeod will pull the item from the Consent Agenda so that the Council can be directed to the changes. The meeting adjourned at 6:22 p.m. Committee Chair Approval 121