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Home My WebLink AboutReg 2025-09-15 Item 5A - Grant Agreement - Tiny Home Village at Church By the Side of the Road with Low Income Housing Institute for $577,722 (Funded by King County)COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's revieav Council revieav 9/15/25 BJM 9/22/25 BJM ITEM INFORMATION ITEM No. 5.A. STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 9/15/25 AGENDA ITEM TITLE Briefing on Awarding a Grant Agreement with Low Income Housing Institute (LIHI) for the Construction of a Tiny Homes in the City of Tukwila. CATEGORY ® Discussion Mtg Date 9/15/25 ® Motion Mtg Date 9/22/25 ❑ Resolution Mtg Date ❑ 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 ❑ PIV SPONSOR'S SUMMARY Update on the City's partnership with the Church by the Side of the Road (CBSR) to establish a new tiny home village on church property along Tukwila International Boulevard. At the August 18, 2025 Work Session, City staff provided an overview of the planned tiny home village at CBSR in Tukwila. Since that briefing, staff has been working with the Low Income Housing Institute (LIHI) to structure a grant to support the next steps in establishing the village. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Approve. COMMII"IEE N/A COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $577,722 AMOUNT BUDGETED $N/A APPROPRIATION REQUIRED $577,722 Fund Source: KING COUNTY GRANT Comments: No general funds will be used. MTG. DATE RECORD OF COUNCIL ACTION 9/15/25 9/22/25 MTG. DATE ATTACHMENTS 9/15/25 Informational Memorandum, dated September 9, 2025. August 12, 2025 Memorandum to the City Council. Proposed conceptual site plan for tiny home village. Proposed grantee budget, dated September 8, 2025. 9/25/25 187 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Brandon Miles, Director, Strategic Initiatives and Government Relations CC: Thomas McLeod DATE: September 9, 2025 SUBJECT: Church by the Side of the Road Tiny Home Village Proposed Grant Award, Low Income Housing Institute ISSUE Update on the City's partnership with the Church by the Side of the Road (CBSR) to establish a new tiny home village on church property along Tukwila International Boulevard. BACKGROUND At the August 18, 2025 Work Session, City staff provided an overview of the planned tiny home village at CBSR in Tukwila. Since that briefing, staff has been working with the Low Income Housing Institute (LIHI) to structure a grant to support the next steps in establishing the village. The proposed village will serve unhoused individuals who are employed or actively seeking employment, as well as asylum seekers. The goal is to provide safe, temporary housing as a short stop on the pathway to long-term, stable housing. Funding for the village will come from a King County grant. As part of the City's initial grant application, the City identified the need to designate a subrecipient to manage the project and expenditures. DISCUSSION Staff recommends awarding a grant to LIHI to serve as the subrecipient of the City's King County grant funds. LIHI will use these funds to complete site preparation, deliver the tiny homes and hygiene facilities, and cover operational startup costs for the village. FINANCIAL IMPACT The total estimated cost to establish the tiny home village is $1,096,232. To date, $505,390 in prepayments and credits have been applied through existing contracts, leaving $577,722 in remaining costs, which will be funded by the King County grant. Operating funds have not yet been identified once construction is 188 INFORMATIONAL MEMO Page 2 complete. The City has reached out to King County, the State of Washington, and other potential funders seeking funds for operations. Cost Item Amount Funding Source Pre -purchase of homes, hygiene trailer, etc. (Contract ($387,353) State Commerce 25-202) Grant Delivery of homes (Contract 25-202) Survey, engineering, planning (Contract 25-238) Credit (Contract 25-202) Total Pre -Payments & Credits Remaining Costs RECOMMENDATION ($5,462) King County Grant ($59,575) King County Grant ($66,120) N/A ($505,390) — $577,722 King County Grant Staff will present a draft grant award agreement to the City Council at the September 22, 2025 Committee of the Whole meeting, with possible action at the Special Meeting scheduled the same evening. ATTACHMENTS • August 12, 2025 Memorandum to the City Council. • Proposed conceptual site plan for tiny home village. • Proposed grantee budget, dated September 8, 2025. https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's 0ffce/2025.09.15/LIHI/0.0 Informational Memorandum, LIHI, Tiny Homes, 2025.09.09.docx 189 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Brandon Miles, Mayor's Office CC: Thomas McLeod DATE: August 12, 2025 SUBJECT: Tiny Home Village at Church by the Side of the Road ISSUE Update on the City's partnership with the Church by the Side of the Road (CBSR) to establish a new tiny home village on church property at Tukwila International Blvd. BACKGROUND CBSR has expressed interest in developing a tiny home village on its property. Similar villages are used across the Puget Sound region and nationwide to provide transitional housing for unhoused individuals. Tukwila currently hosts two such villages —one on Interurban Ave South and one at Riverton Park United Methodist Church —both operated by the Low Income Housing Institute (LIHI). A tiny home village typically consists of small, individual shelters plus shared facilities such as restrooms, kitchens, and offices. Benefits include stability, community connection, financial flexibility, and reduced environmental impact compared to other temporary housing. Villages generally include on -site services, such as case management, and are intended as short-term housing that leads to more permanent placements. CBSR TINY HOME VILLAGE • Size: 30 tiny homes plus supporting structures (office space, hygiene trailer, etc.). • Population Served: Primarily unhoused individuals or couples who are employed or actively seeking employment, including asylum seekers. • Services: Tailored to working -age residents; focus on pathways to employment and housing stability. COST AND FUNDING Total Design & Construction Cost: $1,096,232 The City is working with LIHI, which has extensive experience in setting up and operating tiny home villages. CBSR is also interested in partnering with LIHI for implementation. Two grants have been secured to fund capital costs —no City general funds are proposed for construction. 190 INFORMATIONAL MEMO Page 2 Cost Item Pre -purchase of homes, hygiene trailer, etc. (Contract 25-202) Delivery of homes (Contract 25-202) Survey, engineering, planning (Contract 25-238) Credit (Contract 25-202) Total Pre -Payments & Credits Remaining Costs PERMITTING AND APPROVALS Amount Funding Source ($387,353) State Commerce Grant ($5,462) King County Grant ($46,575) King County Grant ($66,000) N/A ($505,390) — $590,842 King County Grant UnderTMC 18.50.270, the operator must execute a Memorandum of Agreement (MOA) with the City. As the primary funder of development, the City will also have influence over operations through the MOA and other agreements. OPERATIONAL FUNDING & ENTITY • Estimated annual operating cost: $600,000—$1 million. • No operator or operational funding source has been identified to date. • King County grant includes operational funds, but the village will likely not be completed in time to access them. • City staff are contacting potential funders. The City is not proposing to fund operations directly. • The operating entity will be selected through a competitive process jointly by the City and CBSR after construction. LONG-TERM PLANS CBSR may pursue permanent housing development on this site in the future. The tiny home village will allow CBSR to gain operational experience with housing on its property. DISCUSSION To use County funds, the village must be completed by year-end. Staff recommends proceeding with construction while funding and operator searches continue. • Tiny homes have already been purchased and are being stored on City property. • LIHI has Mayor -authorized contracts for design and preconstruction. https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's 0ffce/2025.09.15/LIHI/1.0 Info Memo - Tiny Home Village CBSR.docx 191 INFORMATIONAL MEMO Page 3 NEXT STEPS Date Q3 2025 Q4 2025 — Q 1 2026 Q1 2026 Task Present draft agreement to Council authorizing LIHI to construct the village. Select operator; execute MOA (Council approval required). Village opens. KEY CONSIDERATIONS 1. If operational funding is not secured —Village could remain vacant until funding is found. City is not offering to cover the operating costs. 2. Ownership after construction —Village ownership would transfer to CBSR or the selected operator, with City retaining rights for a set period to ensure continued use for community benefit. 3. City controls after transfer — MOA and transfer agreement will outline operational and use requirements. 4. Public outreach — LIHI will conduct outreach in fall 2025 during development. RECOMMENDATION Information only- no action requested at this time. ATTACHMENTS • Conceptual site plan (note: shows 40 units; final project will have 30 units). • Proposed Capital Budget (July 10, 2025) • Photos of Tiny Homes • Example MOU for Riverton Park United Methodist Church tiny home village. 192 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's 0ffce/2025.09.15/LIHI/1.0 Info Memo - Tiny Home Village CBSR.docx KITCHEN 6. ILLUMINATION: ILLUMINATION WILL BE PROVIDED AND MAINTAINED ALONG ROUTES OF EGRESS FROM EVERY SLEEPING UNIT TO THE PUBLIC RIGHT-OF-WAY AND AT ALL EXITS AT ALL TIMES. 7. COOKING EQUIPMENT: THE INSTALLATION AND USE OF COOKING EQUIPMENT MUST COMPLY WITH TUKWILA AND FIRE CODE REQUIREMENTS. 8. CHARGING PROHIBITION: SIGNS SHALL BE INSTALLED WITHIN EACH SLEEPING UNIT INDICATING THAT THE CHARGING OF ELECTRIC BICYCLES, SCOOTERS, AND SIMILAR MICRO -MOBILITY DEVICES IS PROHIBITED. \ac:40o\! NOTES 1. THIS FIRE SAFETY PLAN WILL BE POSTED IN THE CHECK -IN OFFICE. 2. SMOKING AREA: THIS IS A WOOD- AND STEEL -FRAMED PREMANUFACTURED PRODUCT. THE COVERED AREA IS UNDER 120 SF. 3. FIRE EXTINGUISHERS: PORTABLE FIRE EXTINGUISHERS RATED 2-A:10-B:C SHALL BE LOCATED IN CLEARLY VISIBLE AND IMMEDIATELY ACCESSIBLE LOCATIONS OUTSIDE BUILDINGS. TRAVEL DISTANCE TO EXTINGUISHERS SHALL NOT EXCEED 75'. 4. EGRESS: EGRESS GATES AT THE NORTH AND EASTERN ENDS OF THE SITE SHALL BE CLEARLY IDENTIFIED, UNOBSTRUCTED, AND READILY OPENABLE IN THE DIRECTION OF EGRESS TRAVEL AT ALL TIMES. 5. TINY HOMES: HOMES ARE WOOD -FRAMED CONSTRUCTION. MINIMUM 5'-0" SEPARATION DISTANCE, MEASURED FROM OUTSIDE FACE OF EXTERIOR WALL, IS REQUIRED FOR ALL PROPOSED BUILDINGS UNLESS OTHERWISE NOTED. EACH HOME SHALL INCLUDEA SINGLE -STATION SMOKE ALARM AND CO MONITOR. 6' HIGH CEDAR FENCE -0 a C FFIC 1' t 1' 1 a,...11h�_ S I 7 1 II --� I- I) 12 ' NhV�I l� 18J ■ - - = SIBLE T PAVING L — L b-- e24 ............ ............. �........... A.......... SMOKING AREA t......m....e z.10,0 ll�1�iili III . 12'-6/119 ENT(GA E PICNIC TABLE, TYP UNtiR HYGIEAILER EXIS'AIN LINK FENCE Fire Safety Plan EMERGENCY EXIT GATE EXISTING TREE) TYP EMERGENCY EXIT GATE TRASH AREA VEHICLE GATE GRAVEL DRIVEWAY 0' 15' 30' 60' Env,,rc' mental Works 402 15th Ave E I Seattle, WA 206.329.8300 I eworks.org 98112 Issuance Schematic Design Date August 26, 2025 CBSR Tiny House Village 14820 Military Road S Tukwila, WA 98168 Fire Safety Plan Original Sheet Size 11"x17" G0.04 Low Income Housing Institute - THV Budget R5 Site Name: Site Address: Jurisdiction: Date: Site SF: Tiny Houses: Church By the Side of the Road 14820 Military Rd S Tukwila 9/8/2025 23,000 30 Budget Item Projected Cost Notes 01-000 Pre -Construction $ i 35,000.00 01-100 Feasibility & Startup $ 8,000.00 Site survey 01-200 Design $ 11,000.00 Site planner and civil engineer 01-300 Permitting $ 15,000.00 Public works permit and over-the-counter MEP permits 01-400 Community Outreach $ 1,000.00 02-000 Construction $ 918,245.00 02-100 Mobilization, Site Services, & Rent $ 5,500.00 Garbage, sanitary services, and temporary fencing 02-200 Earthwork $ 150,000.00 Grading, gravel, utility trenching, and ADA asphalt 02-300 Demolition $ - 02-400 Utilities $ 190,000.00 Electrical, water, and side sewer 02-500 Tiny Houses and Offices $ 301,000.00 (30) tiny homes and (3) offices at $8,000/each plus delivery and finishing. 02-600 Common Buildings $ 145,000.00 Kitchen tent, 4-bay hygiene trailer, laundry room, and security office 02-700 Site Furnishing & Other $ 100,000.00 Decking, fencing, security system, and outdoor furnishings 02-800 Miscellaneous Construction Costs $ - 02-900 Construction Contingency [1] $ 26,745.00 3% 03-000 LIHI Project Management $ 142, 986.75 03-100 Project Management Fee [2] $ 142,986.75 15% TOTAL PROPOSED BUDGET: $ 1,096,231.75 Cost Per SF: $ 47.66 Cost Per Tiny House: $ 36,541.06 Low Income Housing Institute - THV Budget R5 Site Name: Church By the Side of the Road Site Address: 14820 Military Rd S Jurisdiction: Tukwila Date: 9/8/2025 Site SF: 23,000 Tiny Houses: 30 Deductions Description Cost Notes 1 Early purchase of (30) tiny houses, (3) staff offices, and (1) 4-bay hygiene trailer. $ (387,353.00) Amount equal to Invoice #2 provided to Tukwila on 6/25/25. 2 Delivery of (30) tiny houses, (3) staff offices, and (1) 4-bay hygiene trailer. $ (5,462.33) Amount equal to Invoice #3 provided to Tukwila on 7/16/25. 3 LIHI donation of 25% of tiny homes. $ (66,120.00) $2,000 credit per house (30) with 10.2% sales tax. 4 Village Design & Permitting Contract $ (59,575.00) Contract dated 7/16/25. Amendment A dated 8/27/25. FUNDS TO COMPLETE: $ 577,721.42 [1] 02-900 Construction Contingency covers all required unforeseen construction labor and materials. This may be triggered by unforeseen site conditions, design changes, etc. [2] 03-100 Project Management Fee covers all direct LIHI management and labor hours, reimbursable costs, and overhead.