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Home My WebLink AboutReg 2025-03-17 Item 5C - Resolution - South King Housing & Homelessness Partners (SKHHP) to Execute Necessary Documents Related to Affordable Housing FundingCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 3/17/25 LH ITEM INFORMATION ITEM NO. 5.C. STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 3/17/25 AGENDA ITEM TITLE Resolution authorizing allocation from SKHHP Housing Capital Fund. CATEGORY ® Discussion Mtg Date 3/17/25 ❑ Motion 3ltg Date ® Resolution Mtg Date 3/17/25 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ® Council ® Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&'R ❑ Police ❑ PIF SPONSOR'S SUMMARY The proposed resolution authorizes the allocation of $91,832.00 from the city's existing contributions to the South King Housing & Homelessness Partners (SKHHP) Housing Capital Fund. This is an annual process for the participating jurisdictions in accordance with the Interlocal Agreement and the City Attorney has approved. These funds have already been contributed to SKHHP and this resolution is a formality. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 3/10/25 COMMITTEE CHAIR: HEDRICK RECOMMENDATIONS: SPONSOR/ADMIN. City Council/Mayor's Office COMMITTEE Unanimous Approval; Forward to 03/17/2025 Regular Consent Agenda. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $91,832.00 AMOUNT BUDGETED $ APPROPRIATION REQUIRED $ Fund Source: HB 1406 SALES TAX PROCEEDS ALREADY CONTRIBUTED TO SKHHP Comments: MTG. DATE RECORD OF COUNCIL ACTION 3/17/25 MTG. DATE ATTACHMENTS 3/17/25 Informational Memo dated 2/18/25 Presentation Draft resolution 03/10/25 Planning & Community Development Committee Meeting Minutes - to be distributed separately. 7 8 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Claire Goodwin, Executive Manager, SKHHP Laurel Humphrey, Legislative Analyst DATE: February 18, 2025 SUBJECT: Resolution authorizing allocation from SKHHP Housing Capital Fund ISSUE The proposed resolution authorizes the allocation of $91,832.00 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 12 member jurisdictions: Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, SeaTac, and Tukwila, and King County. SKHHP provides a meaningful opportunity to pool funds together with neighboring cities to collaboratively make an impact on the subregion's affordable housing shortage. To date, SKHHP has pooled over $11.2 million to house our low-income neighbors or rehabilitate deteriorating multifamily buildings. 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 2024, an additional member city entered into the Pooling ILA - HB 1590 and a new member city made a contribution from municipal general funds. 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 2024 Housing Capital Fund funding round, Council approval is needed to authorize the allocation of funds to specific projects. INFORMATIONAL MEMO Page 2 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 funding recommendation based on adopted priorities to the SKHHP Executive Board. The SKHHP Executive Board concurred with the SKHHP Advisory Board's recommendation and recommends funding four projects $4,100,000 as described in the 2024 SKHHP Housing Capital Fund Recommendation memo dated January 23, 2025 (attached). The SKHHP Executive Board requests approval to use $91,832 of the total $89,289 contributed funds from 2024 and $3,002 of the carry-over from 2023 from the City of Tukwila for the following recommended projects: Project Sponsor and Project Name Location # of Units Total Development Cost 2024 SKHHP Contribution 2024 City Contribution Mercy Housing NW - Burien Family Housing Burien 91 $58,048,463 $2,000,000 $0 TWG - Pandion at Star Lake Kent 251 $126,720,200 $770,000 $0 Multi -Service Center - White River Apartments Auburn 24 $975,939 $775,000 $69,097 Habitat for Humanity - Burien Miller Creek Burien 40 $26,193,686 $555,000 $22,735 As outlined in the attached memo, sales and use tax receipts from Tukwila have already been contributed to SKHHP's 2024 Housing Capital Fund, and with this Council approval, $91,832 of 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 March 17, 2025. ATTACHMENTS 1. Draft Resolution 9 South King Housing and Homelessness Partners (SKHHP) Housing Capital Fund Recommendations Claire V. Goodwin, SKHHP Executive Manager SK:I: SKHHP's Housing Capital Fund ■ Meaningful opportunity to pool funds together with neighboring cities to collaboratively make an impact on the subregion's affordable housing shortage. ■ Funds pooled from eleven member jurisdictions: • Auburn ° Federal Way ° Renton ▪ Burien ° Kent ° SeaTac ▪ Covington ° Maple Valley ° Tukwila ▪ 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 2 SK:I: Sou. King Housing and Homelessness Partners ilil 2024 Housing Capital Fund ■ The SKHHP Advisory Board reviewed and made recommendations to the SKHHP Executive Board to fund four of the six projects. ■ City of Renton to directly support two projects with HB 1590 funds. ■ The SKHHP Executive Board agreed with recommendation and is seeking concurrence from each jurisdiction. ■ The recommendation totals $4,100,000 ■ $1,030,000 from SHB 1406 ■ $2,770,000 from HB 1590 ■ $300,000 from GF SK:I: Recommended Projects 1. Mercy Housing NW — Burien Family Housing: Burien • 91-unit multifamily rental development adjacent to Mary's Place emergency shelter • 30%-60% of area median income (AMI); 34 units set -aside for families exiting homelessness and 18 units set -aside for households with physical disability. Previously awarded project. • $2,000,000 2. TWG — Pandion at Star Lake: Kent • 251-unit multifamily rental development adjacent to the future Kent/Star Lake Link light rail station • 30%-80% AMI; set -asides for families and families at -risk of homelessness. Previously awarded project. • $770,000 3. Multi -Service Center — White River Apartments: Auburn • 24-unit rehabilitation and preservation project • 3 units up to 30%AMI; 16 units up to 45%AMI; 5 units up to 60% AMI • $775,000 4. Habitat for Humanity — Burien Miller Creek: Burien • 40 units for affordable homeownership • 20 units at an average 50% AMI and 20 units up to 80% AMI. Previously awarded project. • $555,000 4 SK:I: Sou. King Housing and Homelessness Partners AttProposed Funding Sources for Recommended Projects - HB 1590 Jurisdiction Covington Kent Maple Valley 1. Mercy Housing-Burien Family 2. TWG-Pandion Total Contributed in 2024 Carry -Over from 2023 Unallocated $ 153,964 $ 59,276 $ 213,657 $ 43 $ 460 ■ 1,485,801 $ 572,034 $ 2,061,827 $ 442 $ 4,434 $ 360,235 $ 138,690 $ 500,000 $ - $ 1,075 Total $ 2,000,000 $ 770,000 $ 2,775,484 $ 485 $ 5,969 SK:I: South King Housing and Homelessness Partners Proposed Funding Sources for Recommended Projects - SHB 1406 Jurisdiction 3. MSC -White River 4. Habitat -Miller Creek Total Contributed in 2024 Carry -Over from 2023 Unallocated Auburn Burien Des Moines Federal Way Normandy Park Renton Tukwila Total $ 121,507 39,980 $ 135,475 $ 26,819 $ 807 $ 57,595 18,950 $ 64,623 $ 12,304 $ 382 $ 29,955 $ 9,856 $ 34,012 $ 5,998 $ 199 $ 116,047 38,184 $ 131,715 $ 23,286 $ 770 $ 173,408 57,057 $ 194,889 $ 36,726 $ 1,150 $ 4,930 $ 1,622 $ 5,426 32 $ 202,461 66,616 $ 228,107 $ 42,313 $ 1,343 $ 69,097 22,735 $ 89,289 $ 3,002 459 $ 775,000 $ 255,000 $ 883,536 $ 151,606 $ 5,142 SK:I: Sou. King Housing and Homelessness Partners (AtProposed Funding Sources for Recommended Projects -General Funds Jurisdiction 4. Habitat - Miller Creek Total Contributed in 2024 Unallocated NEI! Total $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 7 S South King Housing and Homelessness Partners Thank you Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org SK:I: Sou. King Housing and Homelessness Partners 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 H SING PROJECTS, AS RECOMMENDED B HE SKHHP EXECUTIVE BOARD, UTILIZING F DS CONTRIBUTED BY THE CITY OF TUKWILA 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 jties to provide affordable housing; and N WHEREAS, n May 17, 2021, the City of Tukwila entered into an Interlocal ii Agreemen thnoses of pooling sales tax receipts with SKHHP to administer funds through h KHHP using Capital Fund; and vir HEREAS, the SKHHP Executive Board has recommended that the City of Tukwila participg'!e 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 SKHHP Capital Fund Allocation Version: 02/28/2025 Staff: L. Humphrey Page 1 of 3 18 WHEREAS, the City Council desires to use $91,832 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 doc 'ents and take all necessary actions to enter into agreements on behalf of the City o utilize the City's SHB 1406 contribution of $91,832 (the sum of the City's 2024 ibution in the amount of $89,289 plus $2,543 of carry-over funds from 2023) to f ehabilitation of the Multi -Service Center's White River Apartments in the am. of $. • and to support the development of Habitat for Humanity's Burien Mille ek in the . t of $22,735, leaving $459 of the City's contributions unallocated, escribed below. Jurisdiction 3. MSC -White River 4. Habitat -Miller Creek Total Contributed in 2024 Carry -Over from 2023 Unallocated Auburn $ 121,507 $ 39,980 $ 135,475 $ 26,819 $ 807 Burien $ 57,595 $ t ‘11152_ $ IMILI $ 12,304 $ 382 Des Moines $ 29,955 $ 9,856 $ 34,012 $ 5,998 $ 199 Federal Way $ 116,047 $ k8,18 15 $ 23,286 $ 770 Kent $ 173,408 $ 57,057 $ 194,889 $ 36,726 $ 1,150 Normandy Park $ iligqiikW2 $ 5,426 $ 1,158 $ 32 Renton $ 202,461 $ 66,616 $ 228,107 $ 42,313 $ 1,343 Tukwila $ 69,097il 22S $ 89,289 $ 3,002 $ 459 Total $ 775,000 $ 255,000 $ 883,536 $ 151,606 $ 5,142 Sec shall i inten what c agency o Executive B hereto as Exhi e terms a urpose and t '•ns should b HP sh ' m entered into; pursuant to Section 1 of this resolution, ondito ensure that the City's funds are used for their the projects maintain affordability over time. In determining ncluded in the agreements, the duly -appointed administering e guided by the recommendations set forth in the SKHHP randum dated January 23, 2025, a copy of which is attached Section 3. This resolution shall 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 , 2025. SKHHP Capital Fund Allocation Version: 02/28/2025 Staff: L. Humphrey Page 2 of 3 19 ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Attachment: Exhibit A — SKHHP Executive Board Tosh Sharp, Council President Filed with the Cit Passed by the Resolution randum •d January 23, 2025 <'' SKHHP Capital Fund Allocation Version: 02/28/2025 Staff: L. Humphrey Page3of3 20 Exhibit A SK:I: South King Housing and Homelessness Partners TO: FROM: DATE: RE: OVERVIEW 2024 was the third annual funding round of the SKHHP Ho resources among SKHHP member jurisdictions. 2024 was the funds towards the Housing Capital Fund and contributions totale funds from the 2023 funding round, SKHHP m received six applications for funding represents units of housing. The SKHHP Executive Board rec 1). Of this total, the Executive Board recommends 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 City of Kent City Council Memorandum City of Maple Valley City Council City of Normandy Park City Council City of Renton City Council City of SeaTac City Council City of Tukwila City Couri SKHHP Executive Board January 23, 2025 2024 SKHHP Housing Capital Fund Recommendation 1406 revenue contributions for $2,775,969 sourced from HB the total $300,000 source recommendation leaves Capital Fund that will rollov recommended pr•'-- undin as attachme awarded . is that reap ended Projec d made possible by pooling very member city contributed pooled 59,020. With the remaining unused he 2024 funding round. SKHHP s to develop or preserve 431 rojects totaling $4,100,000 (see Table he total $1,035,141 sourced from SHB wnershione preservation project; $2,770,000 of the total ontributi for two new construction projects; and $300,000 of ds to be a. -d to the homeownership project. This unds and $5,969 in HB 1590 funds in the Housing nd in 2025 (see Tables 2 and 3). A summary of the nale, and the conditions for funding are described in this memo. Included ries of the recommended projects, summary changes of previously ommended for funding, and standard conditions for funding. nd Recommended Funding Level Project sponsor and name Mercy Housing NW —''rien Burien Family Housing Location # of units Project type Amount Requested Recommended Funding — HB 1590 Recommended Funding — SHB 1406 & GF 91 New Construction Rental $2,000,000 $2,000,000 -- TWG — Pandion at Star Lake Kent 251 New Construction Rental $2,000,000 $770,000 -- Multi -Service Center— White River Apts. Auburn 24 Preservation Rental $975,939 -- $775,000 Habitat for Humanity — Burien Miller Creek Burien 40 New Construction Homeownership $1,300,000 -- $300,000-GF $255,000-SHB 1406 TOTAL -- 406 -- -- $2,770,000 $1,330,000 Page 1 of 23 21 Table 2: Proposed HB 1590 Allocations by Jurisdiction for Recommended Projects Jurisdiction 1. Mercy Housing-Burien Family 2. TWG-Pandion Total Contributed in 2024 Carry -Over from 2023 Unallocated Covington $ 153,964 $ 59,276 $ 213,657 $ 43 $ 460 Kent $ 1,485,801 $ 572,034 $ 2,061,827 $ 442 $ 4,434 Maple Valley $ 360,235 $ 138,690 $ 500,000 $ - $ 1,075 Total $ 2,000,000 $ 770,000 $ 2,775,484 $ 485 $ 5,969 Table 3: Proposed SHB 1406 Allocations by Jurisdiction for Recommended PP Jurisdiction 3. MSC -White River 4. Habitat -Miller Creek Total Contributed in 2024 Carry -Over from 2023 Unallocated Auburn $ 121,507 $ 39,980 $ 135,475 $ 26,819 $ 807 Burien $ 57,595 $ 18,950' 64,6246$ 12,304 7 382 Des Moines $ 29,955 $ 9,856 $ 34,012 $ 5,998 $ 199 Federal Way $ 116,047 $ 38,184 'V5 $ 23,286 $ 770 Kent $ 173,408 $ 57,057 $ 194,889 $ 36,726 $ 1,150 Normandy Park $ 4,930 $` $ Ilak $ 1,158 $ 32 Renton $ 202,461 $ 66,616 $ 228,107 $ 42,313 $ 1,343 Tukwila $ 69,097 $ 1,7354.11111111109 $ 3,002 $ 459 Total $ 775,000 $ 255,000 $ 883,536 $ 151,606 $ 5,142 Table 4: Proposed Unrestri�JGeneral d Allocatiy Jurisdiction for Recommended Projects Jurisdiction 3. Habitat -Miller Creek Total Contributed in 2024 Unallocated SeaTac 300 $ 300,000 $ - Total $ 300,000 $ 300,000 $ - BAC KG R The SKHHP Ad Board n October 3, 2024 and November 7, 2024 to review each project application and develop a fun. a endation for the SKHHP Executive Board's consideration. The SKHHP Executive Board met on Octobe 024 and November 15, 2024 to review each project and consider the recommendations of the Advisory Board. The Advisory Board adopted its recommendation on November 7, 2024 and the Executive Board took final action on November 15, 2024. Of the six applications received, two are located in Renton and both project applications are eligible to receive HB 1590 funds. The City of Renton collects HB 1590 funds but does not currently pool those funds with SKHHP. SKHHP pools HB 1590 funds from three of the four South King County cities that collect it. Because of this, the City of Renton plans to directly financially support these two projects. These projects include Homestead Community Land Trust's Willowcrest II and St. Stephen Housing Association & Way Back Inn's Steele House. Page 2 of 23 22 These two projects were removed from SKHHP's competitive list of projects under consideration prior to the Advisory Board and Executive Board making their funding recommendation. PROCESS Advisory Board recommendation (November 7, 2024) ATTACHMENTS Executive Board finalizes recommendation (November 15, 2024) 1. Economic summaires of recommended projects 2. Summary changes of previously awarded projects that reappjie 3. Standard conditions for funding Member Councils approve funding recommendation (January -March 2025) Page 3 of 23 23 1. Mercy Housing Northwest - Burien Family Housing Funding request: $2,000,000 Executive Board recommendation: $2,000,000 (forgivable loan) Address: 12845 Ambaum Blvd SW Burien, WA 98146 PROJECT SUMMARY Burien Family Housing is a new multifamily 91-unit rental project located near hig The project will support households earning between 30% area median incom focus on households with children, including 34 units set -aside for families and 18 units set -aside for households with a physical disability. quency transit in Burien. I) and 60% AMI with a ildren exiting homelessness The project includes the redevelopment of a 4.23 acre site current) ned by Mary emergency shelter on -site. Mary's Place will be donating 2-acre e project site to Northwest for the development of new affordable housing, retaining 1.31 acres of th development of a new shelter to replace the existing one •roject w development is comprised of a mix of one-, two-, three-, an• -b- ' .m units. 52% of the units are family - sized two-, three-, and four -bedroom units. This project received a financial award from S King County, the Washington State Departmen program, and the Amazon Housing Equity Fund a combination 4% and 9% LIHTC project. The proje County Housing Authority and a rvices a homelessness. PROJECT SCHEDULE ng the 2022 he 9% L e which operates an ousing for the four stories in size. The g round and secured funding from come Housing Tax Credit (LIHTC) course of 2023 and 2024. The project is red _ oject-based vouchers from the King rom King County to support the families exiting Activity Date Purchase and Ailliiioen'_ 8/29/2022 Zoning Approval 2/1/2024 Site PlagovaI 8/18/2022 Building Permits Issued 2/25/2025 Begin CFtion ■ 4/1/2025 Begin Lease -up 6/1/2026 Issued CertificIWOccu i 8/1/2026 FUNDING RATION The Executive Board supports the intent of this application for the following reasons: • The project has been awarded significant financial contributions from King County, State Department of Commerce (Housing Trust Fund), Amazon, and was awarded $1,093,308 from SKHHP in the 2022 funding round. Additionally, the project received a 9% bond allocation in the 2024 funding round through the Washington State Housing Finance Commission. • The project is ready to begin construction in the first half of 2025. Page 4 of 23 24 • The sponsor's partnership with Mary's Place demonstrates a commitment to serving households experiencing homelessness and will develop a pipeline of permanent housing for Mary's Place clients. • Project -based vouchers have been secured which increases the financial stability of the project. • 75% of the units will be constructed using advanced universal design principals. • The project includes set -asides for four -bedroom units which are greatly needed to serve larger families. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: collaboration with local community -based organizations, connections and direct experien e with populations the project is proposing to serve, addressing the needs of populations most • • portionately impacted by housing costs, advancing economic opportunity due to its proximi ransit and other amenities, providing rental housing for individuals and families earning 0-30% • incorporating supportive services, and the leverage of private and public investment. • The site has convenient access to transit, shopping, and ser PROPOSED CONDITIONS Standard conditions apply to all projects and are included Special Conditions 1. SKHHP will provide project fu forgivable loan. Loan terms wi fund sources and available cash funds and must be approved by S recorded against affordability as it maint 2. Timeframe m to opment lation. requirem tachme► :t the end of this memo. e Contractor • form of a deferred, contingent, rious fa ncluding loan terms from other be determined prior to release of he • . ill be secured by a deed of trust y to ensure that Contractor maintains the project's actor shall not be required to repay the loan so long mm - e funding commitment continues for thirty-six (36) e of Council approval of original award and shall expire thereafter if all ied. An extension may be requested to SKHHP staff no later than sixty the .tion date. At that time, the Contractor will provide a status report to and ; pected schedule for start of construction and project completion. ive Board will consider a twelve-month extension only on the basis of ningful progress in bringing the project to readiness or completion. At a ontractor will demonstrate that all capital funding has been secured or is likely within a reasonable period of time. 3. Project description of original award from 2022 funding round will be replaced by current description of the project. Previous funding award shall be combined with current recommended award but will retain eligibility of use under RCW. 82.14.540. 4. At least 34 of the housing units shall be set -aside for families with children exiting homelessness who earn no more than 60% AMI and 18 of the housing units shall be set -aside for households with a physical disability who earn no more that 60% AMI. Use of funds and population eligibility must be in -alignment with RCW 82.14.530 for 2024 award. Page 5 of 23 25 5. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 6. A covenant is recorded ensuring affordability for at least 50 years with size and affordability distribution per the following table. Changes may be considered based on reasonable justification as approved by SKHHP. AMI 1-bedroom 2-bedroom 3-bedroom 4-bedroom Total Units 30% 6 14 5 3 28 50% 30 11 7 - 48 60% 7 4 3 -- 14 Manager Units 1 -- -- -- 1 Total Units 44 29 3 91 Page 6 of 23 26 2. TWG Development - Pandion at Star Lake Funding request: $2,000,000 Executive Board recommendation: $770,000 (loan) Address: 2526 S 272nd St., Kent, WA 98032 PROJECT SUMMARY Pandion at Star Lake is a 251-unit multifamily, mixed -use rental project in Kent Kent/Star Lake Link light rail station. The project will support households ear 80% AMI. 47 units will support households up to 80% AMI. The project h Income Housing Tax Credit (LIHTC) development. The project secured Housing Capital Fund funding round totaling $1,170,000, although funding round. The project did not secure the needed public an towards beginning construction. The timeline for beginning can be secured to fill a $30 million gap. SKHHP's awards funders. This transit -oriented development (TOD) project will provide a bedroom units. The project will include grou '•r commercial center for low-income children operated by t `' - - ed STEM The property was purchased by the developer five stories of affordable housing over one story housing at the residential lobby - s basem parking. ar roject wa ate funds in 20 ruction has been move d adjacent to the etween 30% AMI and roposed as a 4% Low sist the p The 251 units includes 163 units for families with c homeless. 24 units wou bedrooms, and 52 3-bedro 29 units of t children Those 29-unit families. of home would be serve nits would be 2 FUNDING RATI ct in future app SKHHP in the 2023 ified for the 2024 ove forward until funds cations to studio, one-, two-, and three - consisting of a K-12 learning Innovation Network (SPIN). p -ject is a six -story building with hich also includes ten units of ion, 59 units for families with children, and 29 pportive services and are at -risk of being t includes 92 studios, 71 1-bedrooms, 36 2- HB 1590 funds which includes those units for families with ire permanent supportive services who earn up to 30% AMI. Vision . use which would provide on -site supportive services. Of the droom units and 9-units would be 3-bedroom units to accommodate The Executive Board ports the intent of this application for the following reasons: • The project secured a prior funding award from SKHHP and additional funds will assist the project to leverage other funding sources. • 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. • The construction start date is anticipated farther out than other projects and the sponsor may have more time to secure the additional funds than other recommended projects prior to beginning construction. Page 7 of 23 27 • The project has strong partnerships with Vision House who will provide on -site supportive services for 29 families with children and SPIN who will operate a K-12 learning center in the commercial space. • The project will support 29 families with children at -risk of homelessness. • The project is large and will provide a high number of affordable units near areas with high displacement risk potential. • 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 22. • The project sponsor has agreed to voluntarily meet the design standar' . r properties zoned as 'Midway Transit Community,' which is a higher degree of develop an what is required under general mixed -use commercial standards for the City of • The project strongly aligns with SKHHP Housing Capital Fund . •ted p -s including: being a transit -oriented development (TOD) project, collaborate ith local com y-based organizations, addressing the needs of populations m housing costs, advancing economic opportunity d station and other amenities, and providing rent 30% AMI and incorporating supportive services. PROPOSED CONDITIONS Standard conditions apply to all projects and . fQ __ �ttachm- .t the end of this memo. Special Conditions sproportionately i -d by is proxi ty to the future . light rail sing for ' duals and families earning 0- 1. SKHHP will pro t funds t Contractor in the form of a deferred, 1% interest, no givab . n to th TC partnership. The form of the funds are subject . nge, but I be agree on prior to contract execution. Loan terms will accoun arious • I.: n terms from other fund sources and available cash flow. . -rms s a . termined prior to release of funds and must be ed by " staff. The loan will be secured by a deed of trust recorded against erty to ensure that Contractor maintains the project's pulation. nding commitment. The funding commitment continues for thirty-six m the date of Council approval of original award and shall expire I conditions are not satisfied. An extension may be requested to SKHHP ster than sixty (60) days prior to the expiration date. At that time, the Cont . or 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 8 of 23 28 3. Project description of original award from 2023 funding round will be replaced by current description of the project. Previous funding award shall be combined with current recommended award. 4. At least 29 housing units of the total shall be set -aside for families with children at -risk of homelessness who earn no more than 30% AMI per the requirements of RCW 82.14.530 and the U.S. Department of Housing and Urban Development's definition of "at -risk of homelessness." 5. SKHHP funds shall be used solely for new construction, unlerwise approved by SKHHP staff. 6. A covenant is recorded ensuring affordability for ast 50 years affordability distribution per the following tabl anges may be con reasonable justification as approved by SK ize and d based on AMI Studio 1-bedroom ' room 3-bedroom Total Units 30% -- -- 9 29 50% 52 41 20 114 60% 23 13 61 80% 17 10 tillilliiii26 47 Total Units 92 52 251 Page 9 of 23 29 3. Multi -Service Center - White River Apartments Funding request: $975,939 Executive Board recommendation: $775,000 (grant) Address: 1301 31st St SE, Auburn, WA PROJECT SUMMARY The White River Apartments is a multifamily, preservation and rehabilitation Auburn. The building was constructed in 1978 and the nonprofit Multi-Servi ownership in 2000. The project consists of 24 two -bedroom, one-bathro includes three units serving households earning up to 30% AMI, sixte at 80% AMI. The 80% AMI units are currently occupied by househo those units would shift to income restricted up to 60% AMI one not displace current residents. SKHHP funds are requested to support the rehabilitatio site lighting, parking lot improvements including curbs and tanks in all units, re -grading areas adjacent to siding and repla project previously applied to SKHHP's 2023 f • round. The project is located within walking distance and Sounder Commuter Rail Station. South Aub Park are within 0.5 mile of the pro. g A grocery PROJECT SCHEDULE rning les ding is awarded. e 24 un 24 rental project in ter took over in active use which a AMI, and five units 60% AMI and roject would uding: siding replacement, , replacing domestic hot water of exterior entry doors. This o the Auburn Transit Center Game Farm Park, and Ballard mile from the project. Activity Date Site Control ` -- - 1/1/1996 Building Permit Issued End of 2025 Begin Rehabilita and Rn End of 2025 End Rehabilitation and Renovation End of 2025 FUND The Exec ATIONALE • The p • The proje • 79%oftheh oard support intent of this application for the following reasons: of rehabilitation to support the health and safety of the residents. up of 2-bedroom units to support larger household sizes. eholds at White River Apartments earn no more than 45% AMI. • The property is close to parks, an elementary school, and transit access to the Auburn Transit Center and the Auburn Sounder train station. • The project includes a fenced play area with an accessible ramp into the play yard with recently installed play equipment. • Limited SKHHP funds available this funding round required a partial award which will still allow most of the residential building rehabilitation to move forward. Page 10 of 23 30 • There are limited funding sources available for preservation and rehabilitation — SKHHP is the only funder on this project. 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 project applied for funding in early 2024 to the State Department of Commerce Housing Trust Fund and SKHHP provided a letter of support, but was not successful in securing funding at that time. • The rehabilitation will not displace current residents. • Preservation and rehabilitation of affordable housing is a high -priority for HHP. • The project strongly aligns with SKHHP Housing Capital Fund adopted • ies including: the project sponsor's community connection and engagement with th lations they intend to serve, advancing racial equity, addressing the needs of populati• • isproportionately impacted by housing costs, advancing geographic equity oft •using al Fund, providing rental housing for extremely -low income households, an. -nervation. • Multi -Service Center is a well -established South King y-based nonprofit ns and operates over 650 units of affordable housing. • Multi -Service Center's housing programs have a •ry of ser ' IPOC community members with 45% of residents of Multi -Service Center prop. i. ' ing as BIPOC. PROPOSED CONDITIONS Standard conditions apply to all projects and . fQ __ �ttachm- .t the end of this memo. Special Conditions 1. SKHHP will pro t funds t Contractor in the form of a secured grant with no repaym anal C. :ct term' :II be determined prior to release of funds and must be oved by S P staff. Th ant will be secured by a deed of trust recorded against 'ropert o ractor maintains the project's affordability and target pop. . ntractor . of be required to repay the grant so long as it ns the .ject requirements. Timefra (36) month conditions ar •xty (60) da s re funds mitment. The funding commitment continues for thirty-six the • .te of Council approval and shall expire thereafter if all t satisfied. An extension may be requested to SKHHP staff no later than rior to the expiration date. At that time, the Contractor will provide a n progress to date and expected schedule for start of construction and p pletion. The SKHHP Executive Board will consider a twelve-month extension only • 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 and may include the following, unless otherwise approved by SKHHP staff: a. Landscaping improvements b. Seal coating and restriping the parking lot Page 11 of 23 31 c. Site lighting improvements d. Recoating breezeways and replacing railings e. New siding f. Exterior paint g. Replacing gutters and downspouts h. Replacing unit entry doors and install metal screen doors i. Replace in -unit and laundry water heaters 4. SKHHP funds shall be prioritized to support building improvem- - parking lot improvements shall not be funded in favor of residential b . : rehabilitation. 5. SKHHP and Contractor shall agree to the specifics on executing a contract to ensure eligibility of expen and to mitigate cost -overruns. in alignment ded prior to CW 82.14.540 6. A covenant is recorded ensuring afford. , for at lea : years with size and affordability distribution per the followin: -. C s may be considered based on reasonable justification as approved by SKH AMI 30% 2-bedroom units 3 Units 45% 16 60% Total Units 7. Should work to funds throu sources. 5 24 t requi nds above SKHHP's contribution, sponsor will hrough their capital budget process or seeking Page 12 of 23 32 4. Habitat for Humanity Seattle -King & Kittitas Counties - Burien Miller Creek Funding request: $1,300,000 Executive Board recommendation: $555,000 (grant) Address: 511 S 136th St Burien, WA 98168 PROJECT SUMMARY Burien Miller Creek is a 40-unit homeownership project in Burien. The project i prised of three- and four -bedroom homes for purchase: 20 units for households earning an aver. ' • % AMI and 20 units for households earning up to 80% AMI. The project is currently under co► .n and SKHHP awarded the project $300,000 in the 2022 funding round which has been requ- ' o t the construction of five units for households earning an average of 50% AMI not to - .c- -d 60% A homebuyers must have lived in King County for a least one year and 25% of .mes are reserv- . households with a connection to the community — being defined as wit o miles from the proje The project will provide permanent affordability throug the home. Habitat will have the Right of First Option to bu year. When the home is resold, the price is set at the cost of a the home to be affordable to low- and moder home must be the buyer's primary residence buyer's housing costs will be kept at or below The project has secured awards tot funding gap is due to increase lower mortgage revenue d development. PROJECT SCHEDULE come buyers' ground lease upon sale of an appreciated rate of 1.5% per ion and any rehab needed, allowing etuity. Habitat requires that the for the life of the home. The in me. ports a ding gap of $3.3 million. The er interest rates on construction loans, and o serve families at lower AMIs in this Activity Date Site Contra . 3/26/2021 Building Permit Issued 3/24/2023 Begirktruction 1 11/08/2022 End Construction 2/1/2026 Full Occupa _ ' 6/30/2026 FUNDING RATIONA The Executive Board supports the intent of this application for the following reasons: • Homeownership is a high priority for SKHHP. • Over $7 million has been invested in the site and over $23 million has been committed. • Historically, out of the total number of households the sponsor has served, 65% identify as BIPOC families. • Habitat has implemented a community preference policy to help guide homeowner selection. All applicants must have been residents of King County in the past year and 25% of the homes Page 13 of 23 33 are reserved for those with a connection to the community (being defined as within a 2-mile radius of the project site). • The project began vertical construction in October 2024 and is fully permitted. • Every homebuyer will have a sale price and mortgage set at no more than 35% of their household income based on household size. • Limited funds available from SKHHP required a partial award to be made to balance the need of other priority projects with consideration of geographic equity. • SKHHP awarded this project $300,000 in the 2022 funding round. Habitat '- sorts a funding gap due to construction cost overruns and interest rates impacting the mo' .es at the AMI levels they wanted to serve. SKHHP funds will help the project close the : d enable them to serve the lower AMI households they have committed to serve. • The 32 3-bedrooms and 8 4-bedrooms spread across 10 buil• will p . - badly needed larger, family sized homes. • The project was approved for participation in the City rien affordable ho demonstration program. • The project strongly aligns with SKHHP Housing al Fun project sponsor's community connection and enga serve, advancing racial equity, addressing the needs o impacted by housing costs, leverage •' •lic and private PROPOSED CONDITIONS Standard conditions apply to a Special Conditions 1. SKHHP d . ed priorities including: the the populations they intend to ations most disproportionately , and homeownership. ed as Attachment 3 at the end of this memo. Contractor in the form of a secured grant with ontract ter shall be determined prior to release of funds and SKHHP staff. The grant will be secured by a deed of trust recorded ensure that Contractor maintains the project's affordability and tor shall not be required to repay the grant so long as it project requirements. unding commitment. The funding commitment continues for thirty-six rom the date of Council approval of original award and shall expire th- if all conditions are not satisfied. An extension may be requested to SKHHP staff n • later than sixty (60) days prior to the expiration date. At that time, the Contractor 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 14 of 23 34 3. Project description of original award from 2022 funding round will be replaced by current description of the project. Previous funding award shall be combined with current recommended award. 4. The recommended $300,000 (2024) from general fund contributions shall support the development of five (5) housing units at an average 50% AMI on initial sale (among the 20 units with an average 50% AMI restriction) and be permanently restricted at 70% AMI upon resale. 5. The recommended $255,000 (2024) and the previously aw. . $300,000 (2022) shall support the development of five (5) units at an average .n initial sale (among the 20 units with an average 50% AMI restriction) an •erm. y restricted not to exceed 60% AMI upon resale. 6. SKHHP funds shall be used solely for new c• ction, soft costs, or othe elopment costs, unless otherwise approved by SK .taff. <'' Page 15 of 23 35 ATTACHMENT 1: Economic Summaires of Recommended Projects Project: Mercy Housing Northwest - Burien Family Housing Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP (2024) $2,000,000 Recommended SKHHP (2022) $1,093,308 Committed 4% LIHTC Equity $9,405,093 Committed 9% LIHTC Equity $13,446,619 Committed State HTF $4,000,000 Con King County (2023) $6,000,000 Committed Permanent Amortizing Loan $5,892,060 Amazon HEF Loan $9,500,000 Committed Al Committed' Mercy Loan Fund $999,999 Land Contribution $1,800,000 $1,011,Ar $1,000,000 Committed Committed Committed Deferred Developer Fee National Housing Trust Fund King County 2024/CHIP Pass Thru $1,901416, $58,048,463 trommitted TOTAL Proposed Use of Funds and Total Residential Cost Proposed use Amount MI Per Unit Acquisition - '820,000 -- Construction $42,217,570 -- Soft Costs li III $8,634,716 -- Other Development Costs $5,376,177 -- TOTAL $58,048,463 $637,895 Residential Cost Per S uare Foo Item Amount Residegtii uare footage_ 86,543 Residential development cost $58,048,463 Cost pel sage foot ' $670.75 Residential Cost er Unit B n Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average 1-bedroom 44 526 $352,813 Average 2-bedroom 29 788 $528,549 Average 3-bedroom 15 1062 $712,333 Average 4-bedroom 3 1291 $865,934 Common area and other residential spaces, including parking -- 20,380 $13,669,825 Page 16 of 23 36 Project: TWG — Pandion at Star Lake Proposed Use of Funds and Total Residential Cost Per Unit _ Proposed use Amount Per Unit Acquisition $6,207,361 -- Construction $87,306,025 -- Soft Costs $15,032,371 -- Construction Financing $9,298,009 -- Other Development Costs $8,876,434 -- TOTAL $126, 720, 200 -- TOTAL NON-RESIDENTIAL $4,413,357 -- TOTAL RESIDENTIAL (includes common areas) $122,306,843 $487,278 Residential Cost Per Square Foot Item Amount Residential square footage ` 2655 Residential development cost $122,306,843 Cost per square foot 439.55 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio_ 92" 415 $182,413 Average 1-bedroom 71 650 $285,707 Average 2-bedroom , 1 it 36 926 $407,023 Average 3-bedroom 52 1,139 $500,647 Common area and other residential spaces, including parking -- 107,767 $47,368,930 Projec Olti-Service CentWhiteiliVer Apartments Proposedpg Sources by Ants and Status Fundi Proposed Amount Status _ SKHHP (2024) $975,939 Recommended TOTAL Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Rehabilitation $747,939 -- Rehabilitation Contingency $150,000 -- Soft Costs $50,000 -- Other Development Costs $28,000 -- TOTAL $975,939 $40,664 Page 17 of 23 37 Project: Habitat for Humanity Seattle -King & Kittitas Counties - Burien Miller Creek Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP (2022) $300,000 Committed SKHHP (2024) $550,000 Recommended King County $3,547,282 Committed HTF $3,125,000 Committed CHIP $1,934,500 Committed HUD $850,000 Committed HTF Unit Subsidy (2024) $1,000,000 Committed Construction Financing $12,562,607 Committed Habitat for Humanity $2,324,297 Committed TOTAL $26,193,686 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Acquisition $2,086,7 $52,169 Construction $20,931,597 $523,290 Soft Costs _L1,906,163 $47,654 Other Development Costs $1,269,168 $31,729 TOTAL $26,193,686 $654,842 Residential Cost Per Square Foot Item Amount Residential square footagi ' 54,662 Residential development cost $26,193,686 Cost per square foot $479.19 4C) Page 18 of 23 38 ATTACHMENT 2: Summary Changes of SKHHP Awarded Projects that Reapplied Project: Mercy Housing Northwest - Burien Family Housing Project changes between the awarded project from the 2022 SKHHP funding round and the 2024 application are as follows: 2024 2022 Changes Populations served 34 — families with children exiting homelessness 16 — families with children 18 — households with a physical disability 22—general population _ 35 — families with children exiting homelessness 54 — families with children • Fewer units for ilies with children dded units for households with a ' ability and general lation Total units 91 89 • On ' added for an on -sit ager • One addi al affordable unit AMI 0-60% 0-60% • No change AMI/unit count 0-30% - 28 30-50% 48 50-60% - 14 0-30% - 35 30 50% 28 ° 26 • More 50% units and fewer 30% and 60% units LIHTC 4%/9% % • Added 9% LIHTC Cost $59.7m 7.4 • Higher budget Page 19 of 23 39 Project: TWG — Pandion at Star Lake Project changes between the 2023 awarded project and the 2024 application are as follows: 2024 2023 Changes Number of buildings 1 2 • Modified from 2 buildings to 1 Populations served 163 units - general population 59 units - families with children 29 units - families with children that require permanent supportive services and are at -risk of being homeless Building 1: 109 units - general population 30 units - families with children 25 units - families with children that require permanent supportive services and who a transitioning out of homele sn. s or are at -risk of homeles 4 units - households ' DD Building 2: 173 units — seni rning 80 100% AMI • No seniors at 80-100% A 41 . amilies that are ansitioning out of •omelessness • ID units . L. umber of general pop units in lower income . ng • More units . r families with children Total units 251 341 (168 and 173) • 90 fewer units AMI 0-80% 0-100° • No 80-100% AMI units AMI/unit count 0-30% - 29 30-50% - 114 50-60% - 61 60-80% - 47 0-30°. 30-50°. ' 50-60% 80-100% • Number of 0-30% units unchanged • More 30-60% units • Added 80% units • Removed 80-100% units LIHTC 4% 9% • Not applying for 9% LIHTC Page 20 of 23 40 Project: Habitat for Humanity Seattle -King & Kittitas Counties - Burien Miller Creek Project changes between the awarded project from the 2022 SKHHP funding round and the 2024 application are as follows: 2024 2022 Changes Number of buildings 10 10 • No change Populations served Homebuyers with connection to the community Homebuyers with connection to the community • o change Total units 40 Phase 1— 20 units Phase 2 — 20 units emoved Phase 1 and d are considering oject a single pro AMI 20 units - average of 50% AMI 20 units - 80% AMI Phase 1 (20 un up to 50% AMI Phase 2 (2► s) — 80% AMI • Chang 20 units at 5 o AMI to an average 50% AMI Cost $26.2m $8.4m (First 20 ly) • Higher development cost SKHHP funding request Request: $1.3m for 20 units at average 50% AMI. Recommended: P- - award of $300 for 5 units erage AMI wi ale up to AMI & 000 for units at a - £ MI , • esaleu. •I%AMI `�. '-d to 20 un • t, I % A • , apple to nits - % AM ,.00 applied to 5 units erage 50% AMI • Request to fund fewer of the 20 total units. Total project units unchanged. Page 21 of 23 41 ATTACHMENT 3: Standard Conditions for Funding 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, and shall survive the transfer or assignment of the Contract. Contractor's failure to a• e to budgets (either original or new/amended) may result in SKHHP's withdrawal Contractor must prepare and submit final budgets to SKH construction and at the project's completion. funding commitment. he time it starts project 2. Contractor shall submit to SKHHP evidence of fun commitmen all proposed public and private funding sources. If Contrac . nnot secure an ide d commitment within an application's time f , Contractor shall immedi. notify SKHHP staff and describe its anticipated .ns and ti► ame for securing alternative funding. 3. Contractor shall use SKHHP provided funds to the Contract and consistent 82.14.540 a Contractor may not use SKHH authorizes such alternate use i exist after completion of the pro adjustments to t capita loan balanc 4. Contra (such as maximize th of at leas the project, pay RCW 39. nstructio s sustainability. ecific project costs as included in 82.14.530, as applicable. ther a - unless SKHHP staff items with unexpended balances and . -r public funders shall approve es (including potential reductions in public fund ximizing sustainability features for the Project and heat pumps) and shall propose a plan to d document an open and competitive bidding process (consisting bid onstruction and related consultant services associated with rdless .f the source of funds used to pay their costs. Contractor shall revailing wages in all projects funded by SKHHP that include ivities, unless federal funds awarded to the project mandate use of ing wage rates. 6. If C. tor 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. 7. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 8. Contractor shall submit to SKHHP project monitoring reports quarterly through its completion of the project, and annually thereafter. Contractor shall submit a final Page 22 of 23 42 budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 9. 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. 10. SKHHP may inspect the project site during the project's co tion. 11. After occupancy, the Contractor will submit annual re• to P summarizing the number of project beneficiaries, housing expenses or a target • ation, and the proportion of those beneficiaries that are low- . . r moderate-inc. - nd that meet other eligibility criteria established in the CoIn addition, the Ann -.ort shall include certifications to SKHHP that it is i include the most current occupancy info are in each income class), a calculation justi previous rent schedule, consistent with the Co rents being charged to each - P shall hav compliance and approve or di . r. every ye submits annual certifications t. isfy the • equirements of multiple funders, Contractor will designate and re ► a s at t - come class required by the most restrictive fund .s the cl. .tion for purposes of the Covenant and this Contract. T . ntract. all also de with such certification any changes in the manage policies f. e Propert d such other information covering the prior calend. - r as SK - b otice at least ninety (90) days in advance of the due date, . i acco . - g documentation as SKHHP may request. The Repo - II be submitted by June 30 of each year and will be required for the ordability Period. SKHHP will also periodically evaluate all projects y. pliance • the Covenant, ich shall n, re edule (showing which Units creases in rents from the and the Contract, and the actual ight to review rents for the event the Contractor ts, Contractor shall maintain the project in good and habitable duration of its affordability term. 13. P s -imburse the Contractor for satisfactory completion of the requirements sp. the Contract and upon Contractor's submission to SKHHP of invoices and supping documentation of eligible expenses. 14. SKHHP shall retain 5% of the funding award ("retention") and shall release the retention only after construction is complete and all other obligations outlined in the contract have been satisfied. 15. 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. Page 23 of 23 43