Loading...
HomeMy WebLinkAboutCOW 2024-03-25 Item 4A - Resolution - South King Housing and Homelessness Partners Housing Projects Use Funds Contributed to Housing Capital FundCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 3/25/24 LH ITEM INFORMATION ITEM No. 4.A. STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 3/25/24 AGENDA ITEM TITLE Resolution authorizing allocation from SKHHP Housing Capital Fund. CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date ® Resolution Mtg Date 3/25/24 ❑ Ordinance Alt; Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Meg Date SPONSOR ® Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY The proposed resolution authorizes the allocation of $15,402.00 from the city's existing contributions to the South King Housing & Homelessness Partners (SKHHP) Housing Capital Fund. REVIEWED BY 0 Trans&Infrastructure Svcs 0 Community Svcs/Safety 0 Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. DATE: COMMII"I'EE CHAIR: ❑ Planning Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMIT ILE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $15,402 Fund Source: HB 1406 REVENUE Comments: AMOUNT BUDGETED $15,402 APPROPRIATION REQUIRED $ MTG. DATE RECORD OF COUNCIL ACTION 3/25/24 4/1/24 MTG. DATE ATTACHMENTS 3/25/24 Information Memo Presentation Draft resolution 4/1/24 1 2 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Claire Goodwin, Executive Manager, SKHHP Laurel Humphrey, Legislative Analyst DATE: March 19, 2024 SUBJECT: Resolution authorizing allocation from SKHHP Housing Capital Fund ISSUE The proposed resolution authorizes the allocation of $15,402.00 from the City's existing contributions to the South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund to finance affordable housing projects. 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. Mayor McLeod serves as Tukwila's representative on the SKHHP Executive Board, with Councilmember Martinez serving as alternate. Housing Capital Fund In 2019, RCW 82.14.540 (SHB 1406) became law allowing jurisdictions to enact a local sales and use tax for the purpose of supporting affordable housing. In 2021, eight of the nine SKHHP member cities entered into a second interlocal agreement for purposes of pooling sales tax receipts authorized by RCW 82.14.540 with SKHHP to create the Housing Capital Fund (Pooling ILA - SHB 1406). In 2022, SKHHP awarded two projects in South King County almost $1.4 million during the first annual funding round. In 2023, two of the four SKHHP member cities who are able to collect RCW 82.14.530 (HB 1590) revenues desired to pool a portion of those funds with SKHHP for the 2023 funding round of the Housing Capital Fund to add to existing SHB 1406 pooled revenue and entered into an additional interlocal agreement (Pooling ILA - HB 1590). The Establishing ILA and Pooling ILAs established the SKHHP Housing Capital Fund, set parameters for the process for the selection of awards involving pooled funds, and determined the approval process. Pursuant to the ILAs, the SKHHP Executive Board recommends allocations for funding affordable housing projects to the participating City Councils. Even though the Council has already contributed funds to the 2023 Housing Capital Fund funding round, Council approval is needed to authorize the allocation of funds to specific projects. Funding Recommendations The SKHHP Executive Board adopts annual funding guidelines and priorities for each funding round. The SKHHP Advisory Board subsequently reviewed applications and provided a 3 INFORMATIONAL MEMO Page 2 funding recommendation based on adopted priorities to the SKHHP Executive Board. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board's recommendation and recommends funding four projects totaling $5,747,306 as described in the 2023 SKHHP Housing Capital Fund Recommendation memo dated January 17, 2024 (attached). The SKHHP Executive Board requests approval to use $15,402 of the total $17,233 contributed funds from 2023 from the City of Tukwila for the following recommended projects: Project Sponsor and Project Name Location # of Units Total Development Cost Total SKHHP Contribution Total City Contribution Mercy Housing NW - Kent Multicultural Village Kent 199 $134,323,456 $1,000,000 $0 LIHI - Skway Affordable Housing and Early Learning Center Skyway 55 $36,295,892 $2,800,000 $0 TWG - Pandion at Star Lake Kent 168 $87,149,708 $1,170,000 $0 Multi -Service Center- Victorian Place II Des Moines 20 $785,125 $777,306 $15,402 Sales and use tax receipts from Tukwila have already been contributed to SKHHP's 2023 Housing Capital Fund, and with this Council approval of $15,402 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 attached memo. RECOMMENDATION Staff is seeking Council approval of the proposed resolution with possible final action on April 1, 2024. ATTACHMENTS 1. Draft Resolution 4 South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations Claire V. Goodwin, SKHHP Executive Manager City of Tukwila Committee of the Whole March 25, 2024 SK:15P South King Housing and Homelessness Partners w� 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 • 2020: HB 1590 (RCW 82.14.530) became law allowing jurisdictions to impose a 0.1 % local sales and use tax to support affordable housing; limited window to act before County collected revenue • 2021 and 2023: Interlocal Agreements for the Purpose of Pooling Sales Tax Receipts with SKHHP • 2022: Launched first funding round of the Housing Capital Fund 2 SK:I: P South King Housing and Homelessness Partners itt 2023 Housing Capital Fund • The second annual SKHHP Housing Capital Fund application opened in 2023. • Six applications were received with broad geographic diversity throughout South King County. • The SKHHP Advisory Board reviewed and made recommendations to the SKHHP Executive Board to fund four of the six projects. • The SKHHP Executive Board agreed with most of the recommendation and is seeking concurrence from each jurisdiction. • The recommendation totals $5,747,306 • $777,306 from SHB 1406 • $4,970,000 from HB 1590 SK:IP 3 South King Housing and Homelessness Partners Ast Recommended Projects 1. Mercy Housing NW — Kent Multicultural Village: Kent • 199-unit multifamily rental development adjacent to the future Kent Des Moines Link light rail station • 30%-80% of area median income (AMI); 20% set -aside for households with an I/DD and 30% set -aside for families • $1,000,000 2. LIHI — Skyway Affordable Housing and Early Learning Center: Unincorporated South King County • 55-unit multifamily rental development with on -site support services • 30%-50% AMI; 75% set -aside for households transitioning out of homelessness • $2,800,000 3. TWG — Pandion at Star Lake: Kent • 168-unit multifacility rental development adjacent to the future Kent/Star Lake Link light rail station • 30%-60% AMI; set -asides for families and families transitioning out of homelessness or are at -risk of homelessness • $1,170,000 4. Multi -Service Center— Victorian Place II: Des Moines • 20-unit rehabilitation and preservation project • 5 units up to 35% AMI; 10 units up to 40%AMI; 5 units up to 50%AMI • $777,306 SKr1:.? 4 South King Housing and Homelessness Partners AtiProposed Funding Sources for Recommended Projects o - HB 1590 Jurisdiction 1. Mercy Housing-KMV 2. LIHI-Skyway 3. TWG- Pandion Total Contributed in 2023 Unallocated Covington Kent $ 88,126 $ 246,752 $ 103,107 $ 438,028 $ 43 $ 911,874 $ 2,553,248 $ 1,066,893 $ 4,532,457 $ 442 $ 1,000,000 $ 2,800,000 $ 1,170,000 $ 4,970,485 $ 485 SK:I: P 5 South King Housing and Homelessness Partners (AtProposed Funding Sources for Recommended Projects - SHB 1406 Jurisdiction 4. MSC -Victorian Place II Total Contributed in 2023 Carry -Over from 2022 Unallocated Federal Way Kent Normandy Park Renton Tukwila $ 137,595 $ 152,865 $ 11,548 $ 26,819 $ 63,128 $ 69,897 $ 5,535 $ 12,304 $ 30,261 $ 34,301 $ 1,858 $ 5,898 $ 119,468 $ 133,558 $ 9,196 $ 23,286 $ 188,422 $ 212,655 $ 12,493 $ 36,726 $ 5,942 $ 6,992 $ 108 $ 1,158 $ 217,088 $ 246,643 $ 12,758 $ 42,313 $ 15,402 $ 17,233 $ 1,171 $ 3,002 777,306 $ 874,145 $ 54,667 $ 151,506 SIP South King Housing antl Homr. Partners Thank you Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org SK:15P South King Housing and Homelessness Partners 12 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 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 2024 Legislation: SKHHP Allocation Version: 02/15/2024 Staff: L. Humphrey Page 1 of 2 13 WHEREAS, the City Council desires to use $15,402.00 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 the rehabilitation of the Multi -Service Center's Victorian Place II, and to use $15,402.00 from the City's SHB 1406 contribution. 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 January 17, 2024, 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 , 2024. ATTEST/AUTHENTICATED: Andy Youn, CMC, City Clerk Mohamed Abdi, 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 January 17, 2024 14 2024 Legislation: SKHHP Allocation Version: 02/15/2024 Staff: L. Humphrey Page 2 of 2 SKIIP South King Housing and Homelessness Partners TO: FROM: DATE: RE: City of Auburn City Council City of Burien City Council City of Covington City Council City of Des Moines City Council City of Federal Way City Council Memorandum City of Kent City Council City of Normandy Park City Council City of Renton City Council City of Tukwila City Council SKHHP Executive Board January 17, 2024 2023 SKHHP Housing Capital Fund Recommendation OVERVIEW The 2023 SKHHP Housing Capital Fund was the second funding round made possible by pooling resources among SKHHP member jurisdictions. 2023 was the first year members pooled funds sourced from HB 1590, which led to quadrupling the amount of funding available over the previous year totaling $5,899,297. SKHHP received six applications for funding representing over $8.6 million in requests to develop or preserve 493 units of housing. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board's recommendation and recommends funding four projects totaling $5,747,306 (see Table 1). Of this total, the Executive Board recommends using $777,306 of the total $928,812 sourced from SHB 1406 revenue contributions for one preservation project; and $4,970,000 sourced from HB 1590 revenue contributions for three new construction projects. This recommendation leaves a balance of $151,506 in SHB 1406 funds and $485 in HB 1590 funds in the Housing Capital Fund that will rollover into the next funding round in 2024 (see Tables 2 and 3). A summary of the recommended projects, funding rationale, and the conditions for funding are described in this memo. Included as an attachment are the economic summaries of the recommended projects. Table 1: Recommended Projects and Recommended Funding Level Project Sponsor Location # of Project type Amount Units requested Recommended Recommended Funding — HB 1590 Funding — SHB 1406 Mercy Kent 199 New Construction $1,000,000 Housing NW Rental $1,000,000 LIHI Skyway 55 New Construction $2,800,000 Rental $2,800,000 TWG Kent 168 New Construction $2,856,000 Rental $1,170,000 Multi -Service Des Center Moines 20 Preservation Rental $500,000 -- $777,306 TOTAL 442 $4,970,000 $777,306 Page 1 of 22 15 Table 2: Proposed HB 1590 Allocations by Jurisdiction for Recommended Projects Jurisdiction 1. Mercy Housing-KMV 2. LIHI-Skyway 3. TWG- Pandion Total Contributed in 2023 Unallocated Covington $ 88,126 $ 246,752 $ 103,107 $ 438,028 $ 43 Kent $ 911,874 $ 2,553,248 $ 1,066,893 $ 4,532,457 $ 442 Total $ 1,000,000 $ 2,800,000 $ 1,170,000 $ 4,970,485 $ 485 Table 3: Proposed SHB 1406 Allocations by Jurisdiction for Recommended Projects Jurisdiction 4. MSC- Victorian Place II Total Contributed in 2023 Carry -Over from 2022 Unallocated Auburn $ 137,595 $ 152,865 $ 11,548 $ 26,819 Burien $ 63,128 $ 69,897 $ 5,535 $ 12,304 Des Moines $ 30,261 $ 34,301 $ 1,858 $ 5,898 Federal Way $ 119,468 $ 133,558 $ 9,196 $ 23,286 Kent $ 188,422 $ 212,655 $ 12,493 $ 36,726 Normandy Park $ 5,942 $ 6,992 $ 108 $ 1,158 Renton $ 217,088 $ 246,643 $ 12,758 $ 42,313 Tukwila $ 15,402 $ 17,233 $ 1,171 $ 3,002 Total $ 777,306 $ 874,145 $ 54,667 $ 151,506 BACKGROUND The SKHHP Advisory Board met on October 5, 2023 and November 2, 2023 to review project applications and develop a funding recommendation for the SKHHP Executive Board's consideration. The SKHHP Executive Board met on October 20, 2023 and November 17, 2023 to review each project and consider the recommendations of the Advisory Board. The Advisory Board adopted its recommendation on November 2, 2023 and the Executive Board took final action on November 17, 2023. PROCESS Advisory Board recommendation (November 2, 2023) • ATTACHMENTS Executive Board finalized recommendation (November 17, 2023 1. Economic summaires for recommended projects Member Councils to approve funding recommendation (February -April 2024) 16 Page 2 of 22 1. Mercy Housing NW - Kent Multicultural Village Funding request: $1,000,000 Executive Board recommendation: $1,000,000 (forgivable loan) Address: 23446 Pacific Highway South, Kent, WA 98032 PROJECT SUMMARY Kent Multicultural Village is a 199-unit multifamily rental project in Kent adjacent to the future Kent Des Moines Link light rail station. The light rail station is scheduled to open in 2026. The project will support households earning 30% area median income (AMI) to 80% AMI with a 20% set -aside (39 units) for households with an intellectual and/or developmental disability (I/DD). The I/DD units will benefit from on -site supportive services. A 30% set -aside (61 units) will be for families with children. The project includes studios, 1-bedrooms, 2-bedrooms, and three -bedroom units. The site is comprised of eight stories and will include a community center, a family resource center, and a licensed early learning facility with six classrooms to accommodate 96 infants and children with a focus on serving children with I/DD. The project was awarded the RFP by Sound Transit to be located on surplus land, but the terms of development are forthcoming, and the final project may be slightly different than described. 39 units are eligible for SKHHP funds sourced from HB 1590 revenue. The project is a partnership between Mercy Housing NW and Open Doors for Multicultural Families, who will provide support to the I/DD households and will relocate their headquarters to the property. Open Doors for Multicultural Families will also operate the Community Center which will include space for recreational activities and community -focused programming. Open Doors for Multicultural Families is a non-profit organization dedicated to meeting the needs of persons of color living with I/DD, especially immigrants and refugees. PROJECT SCHEDULE Activity Date Site Control 2024—to be coordinated in Sound Transit negotiations Building Permits Issued 4/2025 Begin Construction 6/2025 Begin Lease Up 2/2027 Certificate of Occupancy Issued 6/2027 First LIHTC Year Start 6/2027 100% Lease Up 2/2028 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has a 20% set -aside for households with an I/DD. • The project serves a diverse range of incomes from 30% AMI to 80% AMI. • The project proposal is thorough, well planned, and has funding commitments already established. Page 3 of 22 17 • The project is located adjacent to the future Kent Des Moines Link light rail station and has convenient access to transit, schools, medical clinics, grocery stores, and services. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit -oriented development (TOD) project, collaboration with local community -based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, advancing geographic equity of the Housing Capital Fund, and the leverage of private and public investment. • Mercy Housing NW is a well -established nonprofit developer in the region. • A third -party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. Page 4 of 22 18 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's construction. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor 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. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. 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 Page 5 of 22 19 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. At least 39 of the housing units shall be set -aside for households with an I/DD who earn no more than 60% AMI. Use of funds and population eligibility must be in -alignment with RCW 82.14.530. 4. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 5. Receipt of the documentation of remediation results and Department of Ecology approval of remediation efforts shall be submitted to SKHHP prior to proceeding with construction. Page 6 of 22 20 2. Low Income Housing Institute (LIHI) - Skyway Affordable Housing and Early Learning Center Funding request: $2,800,000 Executive Board recommendation: $2,800,000 (forgivable loan) Address: 12712-12724 & 12742 Renton Ave. South, Seattle, WA 98178 PROJECT SUMMARY Skyway Affordable Housing and Early Learning Center is a multifamily rental project in Unincorporated King County. The project will provide 55 housing units for individuals and families, including 12 studios, 19 one -bedroom, 13 two -bedroom, and 11 three -bedroom units for households earning between 30% and 50% AMI with a 75% set -aside (42 units) for households transitioning out of homelessness. An early learning center will be located on the ground floor of the building, featuring four classrooms to accommodate up to 80 children, a parent resource room, and offices. The surrounding community will be prioritized in the early learning center activities. Additional amenities include a community room, case manager offices, and a roof deck for resident use. LIHI will provide on -site case management. This project has been previously awarded predevelopment and acquisition funds from King County. The project will serve individuals (25 units) and families (17 units) exiting homelessness earning 30% AMI (42 total units) and will support general population households earning up to 50% AMI (12 units). A common room will support all residents (1 unit). 42 units are eligible for SKHHP funds sourced from HB 1590 revenue. Childhaven, a nonprofit dedicated to strengthening families and preventing childhood trauma, plans to lease the early learning center and relocate their program to the site and will assist in applying for local funding for this portion of the project. The early learning center will be financed separately from the residential space, without using tax credits on the commercial space. PROJECT SCHEDULE Activity Date Site Control 1/30/2023 Building Permits Issued 1/23/2025 Begin Construction 6/1/2025 Begin Lease Up 9/15/2026 Certificate of Occupancy Issued 10/15/2026 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has a 75% set -aside for households transitioning out of homelessness. • The project brings quality, affordable housing to a historically underserved neighborhood. • The project will house Childhaven on -site to run an early learning center. • The project is located near schools, a library, and a future community center. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: collaboration with local community -based organizations, addressing the needs of populations Page 7 of 22 21 most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, leverage of private and public investment, and promoting racial equity by prioritizing residents with a connection to the neighborhood. • The project will prioritize residents with a connection to the neighborhood. • LIHI is an established developer in the region. • A third -party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's Page 8 of 22 22 development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's construction. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor 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. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. Page 9 of 22 23 3. At least 75% of the housing units shall be set -aside for households transitioning out of homelessness and be for an eligible population defined in RCW 82.14.530 and who earn no more than 60% AMI. 4. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 5. LIHI shall reexamine the guest policy allowing only one guest at a time to determine if it is necessary. Page 10 of 22 24 3. TWG — Pandion at Star Lake Funding request: $2,856,000 Executive Board recommendation: $1,170,000 (loan) Address: 2526 S 272nd Street, Kent, WA 98059 PROJECT SUMMARY The South Building (building one of two) of Pandion at Star Lake is a multifamily rental, mixed use project consisting of 168 affordable housing units for households earning between 30% and 60% AMI in Kent. The project is located adjacent to the Kent/Star Lake Link light rail station. This transit -oriented development (TOD) project will provide a mix of studio, one, two and three -bedroom units. The project will include ground floor commercial space consisting of an early learning center for low-income children and other non-profit tenants. The property was purchased by the developer in December 2022. The project is a seven -story building with six stories of affordable housing over one story of commercial space, plus basement level parking. The 168 units includes 109 units for the general population, 30 units for families with children, 25 units for families with children that require permanent supportive services and who are transitioning out of homelessness or are at -risk of homelessness, and 4 units supporting households with an intellectual and/or developmental disability (I/DD) requiring supportive services. Pandion at Star Lake is a partnership between TWG Development and Vision House, with Vision House providing on -site supportive serves for 140 units or those receiving 4% LIHTC support. In collaboration with the City of Kent, an additional service provider will be selected to serve residents of the remaining 28 units or those receiving 9% LIHTC support. 29 units of the project are eligible for HB 1590 funds which includes 25 units for families with children transitioning out of homelessness or are at -risk of homelessness and require permanent supportive services and the four units set -aside for I/DD households. PROJECT SCHEDULE Activity Date Site Control 12/6/2022 Building Permits Issued 10/1/2025 Begin Construction 12/31/2025 Certificate of Occupancy Issued 12/31/2027 Placed in service 1/1/2028 First LIHTC Year 2028 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project is located adjacent to the future Kent/Star Lake Link light rail station and has convenient access to transit, schools, grocery stores, and services. Page 11 of 22 25 • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit -oriented development (TOD) project, collaboration with local community -based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, advancing geographic equity of the Housing Capital Fund, and the leverage of private and public investment. • The project construction start date is anticipated by early 2026, six months later than other recommended projects. The sponsor may have more time to secure the additional funds than other projects prior to beginning construction. • The project has a strong partnership with Vision House who will provide on -site supportive services for 140 households. • A second building supporting 173 units for seniors earning 80% to 100% AMI is part of the overall project, but is not part of the application to public funders. The overall project supports mixed -income housing from 30% AMI-100% AMI. • The project sponsor has been in close communication with the City of Kent on project feasibility and zoning requirements since the property was purchased in December 2022. • The project sponsor has agreed to voluntarily meet the design standards for properties zoned as 'Midway Transit Community,' which is a higher degree of development than what is required under general mixed -use commercial standards for the City of Kent. • A third -party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the Page 12 of 22 26 project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's construction. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, 1% interest, non -forgivable loan to the LIHTC partnership. The form of the funds are subject to change, but shall be agreed upon prior to contract execution. Loan terms will Page 13 of 22 27 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. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. 2. 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. At least 29 housing units of the total shall be for an eligible population defined in RCW 82.14.530 including households transitioning out of homelessness or are at -risk of homelessness or households with an I/DD and who also earn no more than 60% AMI. 4. SKHHP funds shall be used solely for new construction of the South Building, unless otherwise approved by SKHHP staff. Page 14 of 22 28 4. Multi -Service Center - Victorian Place II Funding request: $500,000 Executive Board recommendation: $777,306 (grant) Address: 24517 26th Place South, Des Moines, WA 98198 PROJECT SUMMARY Victorian Place Ills a multifamily, preservation 20-unit rental project in Des Moines. Since 1996, the nonprofit Multi -Service Center has owned the two adjacent buildings that comprise the project which includes five units for households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI. The 20 three bedroom/two bath affordable rental units are in active use and the target population is families with children. The original request was for $500,000 in the form of a grant. Initial estimates were based on a 2018 construction estimate. An updated cost estimate of the project received on October 25, 2023 totaled $675,918. The Advisory Board recommended fully funding the project at the revised amount, however, after the recommendation was made, it was discovered that the revised estimate did not include contingency funding. The Executive Board recommend funding the project with a 15% contingency which totals $777,306. SKHHP funds are requested to support the rehabilitation of the two buildings including: landscape improvements, staircase repairs, installation of new railings, seal coating the parking lot, upgrading external lighting, recoating tenant decks, installation of new siding, replacing gutters and downspouts, replacing windows, replacing sliding glass doors, replacing unit entry doors, and replacing baseboard heating with energy -efficient heating systems. PROJECT SCHEDULE Activity Date Site Control 1/1/2000 Building Permit Issued Mid-2024 Begin Rehabilitation and Renovation Mid -late 2024 End Rehabilitation and Renovation Mid -late 2025 FUNDING RATIONALE The Advisory Board supports the intent of this application for the following reasons: • There are limited funding sources available for preservation and rehabilitation. The focus for larger public funders has historically been on creating new units of affordable housing. Smaller preservation projects like this one are not as competitive against larger preservation projects competing for the same funds. • The property is in need of rehabilitation to support the health and safety of residents which are families with children. • Preservation of affordable housing is a high -priority for SKHHP. • 75% of the households earn no more than 40% AMI. Page 15 of 22 29 • The project's proximity to the future Kent Des Moines Link light rail station an asset (1.3 miles). • Multi -Service Center is a well -established South King County -based nonprofit that owns and operates over 650 units of affordable housing. • Multi -Service Center's housing programs have a history of serving BIPOC community members with 72% of clients self -identifying as BIPOC. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: the project sponsor's community connection and engagement with the populations they intend to serve, advancing racial equity, addressing the needs of populations most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, and preservation. • Of the two applications submitted by the project sponsor, this project is the higher of the two priorities as the larger housing units are more difficult for families in need to access, and the current safety concerns at the project site are more immediate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project rehabilitation and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.540. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. Page 16 of 22 30 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project's rehabilitation. 9. Ongoing Monitoring. After occupancy, Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate - income and that meet other eligibility criteria established in the Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a secured grant with no repayment. Final Contract terms shall be determined prior to release of funds and must be approved by SKHHP staff. The grant will be secured by a deed of trust recorded against the property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the grant so long as it maintains these project requirements. 2. 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 Page 17 of 22 31 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. SKHHP funds shall be used solely for the rehabilitation of the property to include, but not be limited to, the following, unless otherwise approved by SKHHP staff: a. landscape improvements b. staircase repairs c. installation of new railings d. seal coating the parking lot e. upgrading external lighting f. recoating tenant decks g. installation of new siding h. applying exterior paint i. replacing gutters and downspouts j. replacing windows k. replacing sliding glass doors I. replacing unit entry doors m. replacing baseboard heating with energy -efficient heating systems 4. SKHHP and Contractor shall agree to the specifics on what will be funded prior to executing a contract to ensure eligibility of expenses in alignment with RCW 82.14.540 and to mitigate cost -overruns. 5. Five housing units shall serve households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI for the duration of the term of affordability. 6. Should cost overruns occur that require funds above SKHHP's contribution, sponsor will work towards filling the funding need through their capital budget process or seeking funds through other sources. Page 18 of 22 32 ATTACHMENT 1: Economic Summaries of Recommended Projects Project: Mercy Housing NW — Kent Multicultural Village Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $1,000,000 Applied 4% LIHTC Equity $48,849,278 Applied King County (2022) $5,000,000 Committed GP Equity $1,000 Self -funded Permanent Loan $23,500,000 Applied State HTF $8,000,000 Awarded Deferred Fee $4,850,000 Self -funded Amazon Grant $2,000,000 Applied Amazon Loan $11,369,574 Applied Private: Non -Residential $7,841,869 Will Apply State: Non -Residential $10,735,000 Will Apply Federal: Non -Residential $2,552,000 Will Apply County: Non -Residential $3,150,000 Will Apply Debt: Non -Residential $5,474,735 Will Apply TOTAL $134,323,456 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Land acquisition $384,504 -- Construction costs $98,698,553 -- Soft costs $12,761,870 -- Development costs $8,372,636 -- Other development costs $4,002,261 -- Community facility $9,402,356 -- 4% bond issuance $701,276 -- TOTAL $134,323,456 -- TOTAL NON-RESIDENTIAL $29,753,604 -- TOTAL RESIDENTIAL (Includes common areas) $104,569,852 $525,476 Residential Cost Per Square Foot Item Amount Residential square footage 246,019 Residential development cost $104,569,852 Cost per square foot $425.05 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio 54 392 $166,619 Average 1-bedroom 40 484 $205,724 Average 2-bedroom 65 710 $301,785 Average 3-bedroom 40 982 $417,399 Common area and other residential spaces, including parking -- 85,700 $36,426,785 Page 19 of 22 33 Project: LIHI — Skyway Affordable Housing and Early Learning Center Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $2,800,000 Applied State HTF $7,465,748 Will apply in fall 2024 King County 2023 $2,500,000 Awarded $2.1M 9% LIHTC I $13,080,144 Will apply in fall 2024 King County 2022 (pre -development funds) $2,500,000 Received Direct Appropriations -Federal I $700,000 Received Direct Appropriations -State $3,000,000 Received Wyncote Foundation $1,000,000 Received PSTAA $300,000 Received TOTAL $36,295,892 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Cost per Unit Land acquisition $2,041,000 -- Construction costs $26,761,254 -- Soft costs $4,624,073 -- Development costs $1,737,565 -- Other development costs $1,132,000 -- TOTAL $36,295,892 -- TOTAL NON-RESIDENTIAL $3,250,000 -- TOTAL RESIDENTIAL (Includes common areas) $33,045,892 $600,834 Residential Cost Per Square Foot Item Amount Residential square footage 50,608 Residential development cost $33,045,892 Cost per square foot $652.97 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average studio square footage 12 400 $261,188 Average 1-bedroom square footage 19 516 $336,932 Average 2-bedroom square footage 13 816 $532,823 Average 3-bedroom square footage 11 900 1 587,673 Common area and other residential spaces, including parking -- 12,121 $7,914,649 Page 20 of 22 34 Project: TWG — Pandion at Star Lake Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status • SKHHP $2,856,000 Applied LIHTC & Energy Credits $31,023,163 Applied Amazon $22,000,000 Applied Permanent Loan $15,340,000 Applied State HTF $4,218,915 Applied -Not awarded in 2023 King County $4,500,000 Applied -Not awarded in 2023 Deferred Development Fee $2,355,370 Self -funded Non -Residential Commercial $4,856,260 -- TOTAL $87,149,708 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Land acquisition $3,435,523 -- Construction costs $63,626,629 -- Soft costs $9,689,519 -- Development costs $6,902,268 -- Other Development costs $3,154,594 -- 4% Bond Issuance $341,175 -- TOTAL $87,149,708 -- TOTAL NON-RESIDENTIAL $4,856,260 -- TOTAL RESIDENTIAL (Includes common areas) $82,293,448 $489,841 Residential Cost Per Square Foot Item Amount Residential square footage 180,197 Residential development cost $82,293,448 Cost per square foot $456.68 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio 30 381 $173,995 Average 1-bedroom 78 615 $280,858 Average 2-bedroom 24 950 $433,846 Average 3-bedroom 36 1,095 $500,064 Common area and other residential spaces, including parking -- 59,772 $27,296,676 Page 21 of 22 35 Project: Multi -Service Center - Victorian Place II Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $777,306 Applied Multi -Service Center $7,819 Self -Funded TOTAL $785,125 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Title document recording fees $5,000 $250 Rehabilitation costs $780,125 $39,006 TOTAL $785,125 $39,256 Page 22 of 22 36