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HomeMy WebLinkAboutFinalAgendaPacket_SKHHP_ExecutiveBoard_2025_2_21SKHHP Executive Board February 21, 2025, 1:00 – 3:00 PM Virtual Meeting Video conference: https://us06web.zoom.us/j/99857398028?pwd=eXFiMmJpQm1abDZmMmRQbHNOYS8 ydz09 OR by phone: 253-205-0468 Meeting ID: 998 5739 8028 Password: 085570 I. CALL TO ORDER a. b. AND ADVISORY BOARD REPRESENTATIVE II. PUBLIC COMMENT III. APPROVAL OF JANUARY 17, 2025 MINUTES Motion is to approve the January 17, 2025 SKHHP Executive Board meeting minutes. 1:12 1:13 Presenter: Claire V. Goodwin, SKHHP Executive Manager Purpose: To elect a Chair and Vice-Chair to the SKHHP Executive Board. Background: Chair and Vice-Chair elections are held annually to serve a 1-year term and are elected from the appointed members of the Board. The Chair of the Executive Board presides over meetings of the Executive Board. The Vice- Chair, in the absence of the Chair, performs all duties incumbent upon the Chair. Prior to the meeting, nominations were received as follows: • Nancy Backus for Chair • Dana Ralph for Vice-Chair Other nominations for Chair and Vice-Chair positions may be brought forward at the meeting. Motion is to approve the nomination for Chair. Motion is to approve the nomination for Vice-Chair. VI. BOARD BRIEFING 1:20 a. Washington State Housing Finance Commission (WSHFC) Overview Presenter: Lisa Vatske, Director, Multifamily Housing and Community Facilities Purpose: Provide an opportunity to learn about the work of WSHFC, including the Low-Income Housing Tax Credit (LIHTC) program and how it fits into SKHHP funded projects. Background: The LIHTC program was created in 1986 as part of the Tax Reform Act. It was designed to incentivize private investment in affordable housing by offering tax credits to developers. The LIHTC program has become the primary source of funding for affordable housing development in the United States. WSHFC oversees the LIHTC program in Washington state. For review, discussion, no action proposed. VII. BOARD BUSINESS CONTINUED a. 2024 ANNUAL AND QUARTER 4 REPORT Presenter: Claire V. Goodwin, SKHHP Executive Manager Purpose: Presentation of the 2024 annual and quarter 4 budget and progress report for Executive Board review. Background: Staff provides quarterly budget and progress reports consistent with the SKHHP Interlocal Agreement. The quarter 4 progress report serves as the annual report. The report serves as an accountability and progress update as well as a tool for Board members to update their member Councils and other interested parties. Staff presentation followed by Board discussion provides the opportunity for feedback prior to finalization and distribution to member jurisdictions. For review, discussion, and Board feedback only, no action is proposed. Presenter: Dorsol Plants, SKHHP Program Coordinator Purpose: A brief update of legislation introduced for the 2025 State Legislative Session with a focus on housing and land use. Background: The Washington State Legislature convened for a regular session beginning January 13, 2025. SKHHP staff will monitor and provide updates on legislation connected with housing at the monthly Executive Board meetings. Special focus will be provided on any bills which further SKHHP’s adopted legislative priority, “to fund all aspects of affordable housing.” 2:20 d. GENERAL UPDATES Presenter: Claire Goodwin, SKHHP Executive Manager Purpose: General updates. Background: An opportunity to receive any updates since the last Executive Board meeting. For review and discussion, no action is proposed. 2:30 2:35 2:40 SKHHP Executive Meeting January 17, 2025 MINUTES I. CALL TO ORDER Nancy Backus called the meeting to order at 1:00 PM. ROLL CALL/ESTABLISHMENT OF QUORUM Executive Board members present: Nancy Backus, City of Auburn; Merina Hanson, City of Kent; Liz Stead, City of Burien; Kristina Soltys, City of Covington; Traci Buxton, City of Des Moines; Brian Davis, City of Federal Way; Victoria Schroff, City of Maple Valley; Carmen Rivera, City of Renton; Dennis Martinez, City of Tukwila; Sunaree Marshall, King County. Others present: Claire Goodwin, SKHHP Executive Manager; Jason Krum, City of Auburn; Sharon Lee, LIHI; Victoria Chow, LIHI. II. PUBLIC COMMENT No public comment was provided. III. APPROVAL OF NOVEMBER 15, 2024 MINUTES Motion to approve the November 15, 2024 minutes as presented. Motion passed (10-0) IV. AGENDA MODIFICATIONS No modifications to the agenda were made. V. BOARD BRIEFING a. MEET THE DEVELOPER: LOW INCOME HOUSING INSTITUTE (LIHI) Sharon Lee provided an overview of the current projects LIHI operates in South King County. LIHI is working with the City of Tukwila on setting up a new tiny house village, and there are some rehabilitation needs at White River Gardens. LIHI is actively researching new projects to develop or rehabilitate in South King County. Some of the challenges LIHI has faced in South King County are the high parking requirements some jurisdictions have. Especially for infill housing projects, it can be highly difficult to meet the parking requirements, and the household car ownership ratio is different. Sometimes, it can also be challenging to understand the timing around permits; while some jurisdictions have worked to establish a clear understanding of the timing, other areas, like unincorporated King County, have uncertain timeframes. The amount of design review for projects can be another challenge. King County AMI is very high, and when working in South King County, it can be difficult to match households with appropriate income requirements. Lastly, even though land costs in South King County are low compared to the rest of the region, the construction costs are still the same, and they are very high right now. Victoria Chow reviewed the history of the Skyway Mixed Use project, which began when Childhaven invited LIHI in 2023 to view their property in unincorporated King County. Unfortunately, an incline on the initial property prevented further development, but Sharon Lee noticed the adjacent property, which became the project's future site. Skyway Mixed Use will provide 54 units of affordable housing, serving households with 30-50% AMI, including households exiting from homelessness. The site will include four early learning center classrooms serving eighty local students. The project is intended to have many larger units to serve larger family sizes, and 50% of the units will be 2- or 3-bed units. Parking requirements were a particular challenge for this project, and to accommodate the required amount of parking, an additional parcel had to be purchased. Victoria Chow noted that King County has made some changes in its recent Comprehensive Plan updates to make the parking requirements easier for affordable housing. Sharon Lee reviewed the design plans for the Skyway Mixed Use project. Sharon Lee reviewed the project's development budget, totaling $41 million for the residential development and $5.5 million for the early learning center. The project included several public funders, including SKHHP. King County had awarded additional funding the day before the presentation. Rep. Adam Smith helped secure federal funding for the project as well. Victoria Chow explained that LIHI is in the process of coming up with a name for the project and will work with the community to include its deep history. The project is in the process of being permitted and is waiting to receive an update on the LIHTC credits, which should fully fund it. LIHI is creating an RFP for general contractors for the project. Dennis Martinez asked where the five hotels LIHI had purchased were located. Sharon Lee said two were in Tacoma, alongside hotels in Lacey, Lakewood, and Whidby Island. Dennis Martinez asked if the house located in Tukwila was for single-family use. Sharon Lee confirmed it was. Dennis Martinez asked how the siting of the new tiny house village in Tukwila was going. Sharon Lee said LIHI recently met with the Mayor and the Human Services Planner and is still in early discussions. The pastor of the church was very interested in hosting the village. Sharon Lee said that they are waiting for the mayor to approve the operations budget. Dennis Martinez asked if there was a community work agreement for the general contractor at the Skyway Mixed Use site. Sharon Lee said LIHI follows the county and state requirements for wage rates and apprenticeship participation. Victoria Schroff asked if the green roof component of the Skyway Mixed Use project helps reduce cooling costs or provides other benefits beyond beautification. Sharon Lee said the project has been following the Evergreen Sustainable Development Standards, which helps reduce utility costs. LIHI uses solar panels to help reduce costs on other projects. VI. BOARD BUSINESS a. 2022 STATE LEGISLATIVE UPDATE Claire Goodwin informed the Executive Board that the 2025 state legislative session had begun on January 13, 2025 and reminded the Board that SKHHP staff had been directed not to lobby on behalf of SKHHP for any bill or our legislative priority. In previous years, SKHHP staff have served as a resource for state lawmakers to ensure awareness around SKHHP's work, primarily related to the Housing Capital Fund. The Board has provided feedback that SKHHP staff updating the Board on some of the bills during sessions pertaining to housing and land use is helpful so that information can be taken back to the Board members’ jurisdiction. SKHHP staff will provide legislative updates at the monthly Executive Board meeting throughout the session. Claire Goodwin reviewed SKHHP’s adopted legislative priority and the legislative timeline, noting that Sine Die is scheduled for April 27. Washington State is facing a budget shortfall of around $13 billion over the four-year forecast. Governor Ferguson has indicated his interest in budget reductions, so it will be a tough year for budget writers and decision-makers. Nancy Backus shared that HB 1380 had been introduced the day before and was related to unhoused encampments and litigation. The bill could be of significant interest to cities as it puts liability on the jurisdiction to prove the presence of open shelter beds before moving encampments. The first hearing is on January 21, 2025, at 4:00 PM. Nancy Backus, Eric Zimmerman, and others have signed up to testify about the bill. Claire Goodwin confirmed that SKHHP staff would add HB 1380 to the legislative tracker. b. 2025 EXECUTIVE BOARD MEETING DATES Nancy Backus informed the Board that the dates of the 2025 SKHHP Executive Board meetings were provided in the Agenda Packet. The SKHHP Executive Board meeting is held on the third Friday of every month from 1:00 to 3:00 PM. Four meetings will be held in person on March 21, June 20, September 19, and December 19. In-person meetings are typically held at Auburn City Council Chambers. Claire Goodwin highlighted a potential conflict since the June 20 date falls the day after Juneteenth but is a scheduled workday. Nancy Backus added that the US Conference of Mayors also occurs that week. Claire Goodwin stated she would send around a survey to see if June 13 would work to reschedule the June Executive Board meeting. c. 2026 WORK PLAN AND FIVE-YEAR PLAN SURVEY Claire Goodwin introduced the 2026 work plan survey, a key method for SKHHP staff to receive feedback and inform her of the Executive Board's thoughts as staff begin to develop the draft 2026 work plan. Claire Goodwin hopes to work with the Board on developing a five-year plan with strategic objectives. The plan is to work on this at the three in-person Executive Board meetings. SKHHP staff developed the survey to prepare for the in-person workshop at the March Executive Board meeting and to start the five-year visioning process. Claire Goodwin noted that some Board members had already begun working on the survey. She would provide fifteen minutes during the meeting for the remaining Board members to complete the survey. The Executive Board was provided fifteen minutes to complete the survey. For Board members needing more time, the survey will remain available until Friday, January 24. d. GENERAL UPDATES Claire Goodwin acknowledged Traci Buxton and Sean Kelly for their longtime service on the SKHHP Executive Board; both will be stepping away from their roles with SKHHP. Katherine Caffrey, Des Moines City Manager, will be serving in an interim role on the Board until the permanent member is selected. Victoria Schroff, formerly Maple Valley's alternate, will become Maple Valley's official representative, and Syd Dawson will serve as the alternate for Maple Valley. Anyah Zupancic will serve as Burien's alternate, taking over for Colleen Bradt-Schluter who recently went not into retirement, but refirement. Claire Goodwin reminded the Board that the SKHHP Chair and Vice-Chair elections will be held next month. So far, only Nancy Backus and Dana Ralph have submitted their names for nomination. Additional nominations are still being accepted, and SKHHP staff can receive them by email before the end of next week. Claire Goodwin is still working to schedule 1-on-1 meetings with Executive Board members and will reach out by email after the meeting. Claire Goodwin used the discussion at the November meeting to develop a written policy related to communicating changes to SKHHP-funded Housing Capital Fund projects. SKHHP staff will also present the 2024 Housing Capital Fund recommendation adopted in November to SKHHP member city councils for concurrence. Claire Goodwin reviewed changes to the Pandion at Star Lake that TWG is developing in the City of Kent. The Executive Board had recommended funding for the project in the 2023 and 2024 funding rounds. Pandion at Star Lake did not secure the needed public and private funds this funding round to begin construction. The construction timeline has been moved until funds can be secured to fill the $30 million gap. SKHHP's awards will assist the project in future applications to funders. The SKHHP award is valid until March 2027, which provides time to secure additional funding. TWG is working on a plan with their financial counsel on how to proceed. The City of Kent is supportive of proceeding with awarding the Pandion of Star Lake, providing the project continues to provide 30% AMI units for larger households near light rail. TWG has been a good partner with the city. At the next Executive Board meeting, SKHHP will host a representative from the Washington State Housing Finance Commission to introduce the Low-Income Housing Tax Credit program (LIHTC). Claire Goodwin informed the Executive Board that the Department of Commerce released a rental registry study mandated by the 2023-25 state legislature this week. Claire Goodwin informed the Executive Board that the King County Affordable Housing Committee is recruiting to fill vacancies and would provide additional information for Board members interested in joining the committee. VII.UPDATES/ANNOUNCEMENTS Sunaree Marshall informed the Executive Board about the third annual Affordable Housing Symposium hosted by the HDC on Wednesday, January 29, at Bellevue College. Nancy Backus added that housing is perhaps the number one topic at the US Conference of Mayors. Data was shared that the need for housing throughout the generations is declining nationwide. Over the next couple of decades, the demand for housing may be reduced as the generations following the "Baby Boomers" are declining in size. Nancy Backus said she would share the information learned at the conference before the next board meeting. VIII.ADJOURN Nancy Backus adjourned the meeting at 2:24 PM. WSHFC Overview Lisa Vatske Director, Multifamily Housing & Community Facilities Presentation to the South King Housing and Homelessness Partners Executive Board February 21, 2025 wshfc.org •Created by state law in 1983 •A self-sustaining state agency •Nimble, innovative, market-driven 40 Years of Impact Housing Finance Commission We work to provide equitable access to capital through strong partnerships and innovative financing to create and sustain affordable rental housing, homeownership, and community spaces across Washington State. Our Mission •Key tools: Federal tax credits and bonds, working with state and local funds •Partnering with for-profit developers, nonprofit organizations, housing authorities, Tribes, community-based orgs and more •Housing everyone from homeless to seniors to families, in all kinds of communities •Rent- and income-limited •Housing is monitored for 30-40 years to ensure it remains safe, decent and affordable Multifamily Rental Housing Over 100,000 Affordable Apartments Created or Preserved 4 Low Income Housing Tax Credit (LIHTC) •Federal revenue program governed by IRS •Depends on private market equity—investors purchase credits •Leverages Housing Trust Fund, local levies, HUD rental subsidies, and other public resources •Highly competitive – coordinated with other public funders Key Financing Tools Tax-Exempt Bond Financing •Debt—not equity like tax credits •Works in tandem with lower-subsidy LIHTC credits •WSHFC can recycle bonds and reissue them Housing Tax Credit Financing 5 The developer sells the credits to investors, who use them to offset federal taxes. Investor equity then goes into the project. Housing Finance Agency allocates tax credits to a developer Developers include for- profits, nonprofits, housing authorities, tribes, etc. Monitors properties for affordability & safety for 30-40 years builds/renovates property Reports violations to IRS Other funding also goes into the project—state, local, etc. housing developer Tax-Credit Market Pricing LIHTC allocation $900,000 $8.73 million $7.65 million 97¢85¢ Investor offers price per credit EQUITY ($900K x price x 10) Price per credit determines how much is invested in housing Coordination with Housing Trust Fund 40% of properties jointly financed WSHFC/LIHTC Commerce – Housing Trust Fund •$1 of state Housing Trust Fund leverages $5.35 of tax-exempt bonds and federal tax credits •Close collaboration and alignment (pipelining) Low-Income Housing Tax Credit How Does the Credit Work with Other Funding Sources? (A typical stack from recent data) Local Funds include city and county Federal Funds Local Funds 3% Sponsor Funds 14% LIHTC Private Equity 36% Private Debt 45% State Funds 2% MHCF Low-Income Housing Tax Credit Land/Acquisition Costs 25% Construction Costs (including material and labor) 51% Professional Fees 13% Financing Costs 5% Capitalized Reserves 2% Other Development Costs 4% How is LIHTC Equity Spent in Housing Projects? (A typical project from recent data) MHCF •New Framework for Bond Cap Allocation Grounded in Values and Outcomes - reset in 2021 for 2022-2023 ✓Sets targets and prioritizes projects with point system in comparable buckets ✓Big pivot to consider By and For Community ✓Focused on workforce housing and a mix of households at 50-60% of Area Median income •9% Annual Competition based on Points ✓Targets lowest income/highest needs and Permanent Supportive Housing for the homeless ✓Geographic pools- with specific policies for diverse needs throughout the state Scarce Resources and Competitive Environment LIHTC Policy Considerations •Started in 2024 •Fully-funded and permit-ready •Three-Tiered Invitation to apply list Developer applies to WSHFC when project financing is in place •Bond cap is committed to the project King County Tiered Process Stretching resources with private capital •Microsoft line of credit and land banking •$250 million no-cost line of credit enables us to recycle/reissue bonds •Plus investment to support land banking for housing in east King County •Evergreen Impact Housing Fund •Seattle Foundation/WSHFC with investment from local credit unions, JPMorgan Chase and Microsoft •Provides low-interest subordinate loans to supplement recycled bonds •Amazon Housing Equity Fund •Provides low-interest loans supplement recycled bonds Federal Legislative Updates Budget and Tax Package Discussions •Continuing Resolution, Budget Reconciliation, Tax package sunsetting Affordable Housing Credit Improvement Act •Champions: Senator Cantwell and Representative DelBene •Key provisions related to the tax credit program ✓Specific increase to the 9% program- critical due to sunsetting of last increase ✓Lowering of the 50% test to 25% test ✓Many other important policy improvements Inflation Reduction Act •Funding, tax credits and rebates for energy efficiency and greenhouse gas reduction Housing developers buy land now to develop later •WSHFC revolving loan fund since 2008 •Created with $1 million each from state and WSHFC •Land preserved for about 5,711 units (rental and homeownership) •Used by nonprofits, local governments, housing authorities, and Tribes •Low-interest loan for a maximum term of 8 years •Loan repayments revolve back into program •Program has evolved with additional partners to address emerging needs Land Acquisition Program LAP Over Time $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 Cumulative LAP Totals Total LAP Investment Total Awards Total Payoffs YOY Available Balance State and Commission start LAP with $1M each State investment of $40M •Homebuyers in every county across the state •Loans are made through private lenders to qualified borrowers •Downpayment assistance available to all (zero-interest loan with deferred payments) •Free, mandatory homebuyer education classes •Income limits vary – up to $180K/household Homeownership 110,000+ homebuyers since 1983 Covenant Homeownership Program •A downpayment assistance loan program created in 2023 by the bipartisan Covenant Homeownership Act •Helps first-time homebuyers with deep roots in Washington state whose families have been affected by racial discrimination •Administered by the Housing Finance Commission – works through our home loan programs •Provided by lenders across the state •200+ homebuyers since program launch in July 2024 wshfc.org/covenant 877-894-4663 Help for Homeowners Foreclosure Counseling •Free housing counseling through statewide network of nonprofits overseen by Commission •Safe, free support to resolve problems with home loans, property taxes etc. •Low-to-no cost legal aid Homeownership Hotline offers free, confidential help: 1-877-894-4663 Federal financial assistance: •$173 million for Washington homeowners facing foreclosure due to Covid impacts •5,576 families assisted •Sunsets in June 2025 Counseling network facing critical funding gaps in 2025 WashingtonHAF.org Other Programs & Tools Manufactured Home Preservation Helps residents of mobile-home parks become owners of their communities Habitat for Humanity Partnership Jump-starts development of Habitat communities statewide Other Gap Financing and Small Projects Revolving loan funds to meet critical community needs Sustainable Energy Trust Accessible financing for renewable and energy efficiency projects. FarmPAI and Beginning Farmer/Rancher Helps preserve farmland and provide accessible financing for farmers and ranchers What Can We Do For You? •Affordable housing data, examples and connections •Policy context – State and Federal •Financing expertise Steve Walker Executive Director steve.walker@wshfc.org (206) 287-4427 wshfc.org Lisa Vatske Director, Multifamily Housing & Community Facilities lisa.vatske@wshfc.org (206) 287-4467 Thank you! South King Housing andHomelessness Partners (SKHHP) 1 Who We Are Formed in 2019 by an Interlocal Agreement, we are a collaboration between 11 South King County cities and King County united under the common goal to ensure the availability of housing for all income levels of residents in South King County. We achieve this through a focus on the production and preservation of affordable housing, partnership with public and private organizations, pooling and sharing resources, and advancing housing policies. Purpose Create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. Contact Claire Vanessa Goodwin Executive Manager Phone: 253.931.3042 cvgoodwin@skhhp.org For more info Scan QR Code or visit skhhp.org Goal 1: Fund the expansion and preservation of affordable housing. New Member to SKHHP – The City of SeaTac formally joined SKHHP in February bringing the total member jurisdictions to 12. New Revenue Sources – Two new sources of revenue were committed towards the 2024 Housing Capital Fund by the cities of SeaTac and Maple Valley resulting in 2024 being the first year that every SKHHP member city financial contributed to the SKHHP Housing Capital Fund. 2024 Housing Capital Fund – SKHHP member cities pooled $4.1 million in 2024 for eligible applicants to construct, acquire, or preserve affordable housing in South King County. Four projects were recommended for funding by the Advisory and Executive Boards: the construction of two multifamily rental projects, one homeownership project, and the rehabilitation and preservation of one project. Since 2022, over $11.2 million has been pooled among South King County cities. Goal 3: Serve as an advocate for South King County. South King County Advocacy – Met with State Representative and informed statewide leaders throughout the year about South King County cities work to pool funds to support building and preserving affordable housing to bring awareness of subregional actions addressing the housing crisis. Participation in Local Meetings and Forums – Represented SKHHP at 163 regional meetings representing 43 unique groups. Advisory Board – Appointed six new members to the SKHHP Advisory Board. Refined ideas regarding Advisory Board-led engagement opportunities for elected officials and community members. Goal 4: Manage operations and administration. ILA Requirements – Developed 2025 work plan and budget and 2024 Housing Capital Fund Guidelines for adoption by Executive Board on April 19, 2024. Parental Leave – Developed coverage plan for Executive Manager parental leave and SKHHP’s Program Coordinator, in collaboration with the Interim SKHHP Executive Support, ensured the smooth operation of administrative functions and maintained the high standards of SKHHP. 2024 Annual Progress Report (January-December) 2024 was a fantastic year for SKHHP! The City of SeaTac joined the coalition and every member city financially contributed to the Housing Capital Fund. $11.2 million has been pooled by SKHHP cities for the construction and preservation of affordable housing in South King County since 2022. Subregional Affordable Housing Preservation Strategies – In collaboration with South King County long- range planners, developed the South King County Affordable Housing Preservation Strategies available here. Administered a survey to establish alignment on any policies and/or implementing actions adopted by member Councils through the periodic comprehensive planning process. South King County Joint Planners and Developers – Facilitated three meetings between planners and developers on identifying vacant, developable land; working with faith-based organizations on affordable housing; and upcoming opportunities to develop housing around Sound Transit property. Executive Board Briefings – Coordinated six presentations to the Executive Board including from two developers and an introduction to affordable housing finance and tax increment financing. Goal 2: Develop policies to expand and preserve affordable housing. SKHHP | 2024 Annual Progress Report (January-December)2 South King Housing and Homelessness Partners Fund Status as of December 31, 2024 REVENUES OPERATING ACTUAL HOUSING CAPITAL FUND CONTRIBUTIONS 2024 Auburn $39,543 $ 135,475 Burien $22,814 $64,623 Covington $11,407 $213,657 Des Moines $11,407 $34,012 Federal Way $51,710 $131,715 Kent $51,710 $2,256,716 Maple Valley $11,407 $500,000 Normandy Park $6,084 $5,426 Renton $51,710 $228,107 SeaTac $10,456 $300,000 Tukwila $11,407 $89,289 King County $51,710 - King County additional contribution $23,290 - INTEREST EARNINGS $493,096 - TOTAL $847,751 $3,959,020 SKHHP COST REIMBURSEMENT DETAIL EXPENDITURES Wages $167,383 Benefits $47,421 Supplies $28 Professional Services $33,561 Interfund Allocations $26,250 Administrative fee $27,434 TOTAL $302,076 EXPENDITURES OPERATING ACTUAL HOUSING CAPITAL FUND ACTUAL SKHHP Cost Reimbursement $274,643 - Administration Fee $27,434 - TOTAL $302,076 - Beginning Fund Balance – January 1, 2024 $377,489 $7,292,705 Estimated Net Change In Fund Balance – December 31, 2024 $545,674 $3,959,020 Estimated Ending Fund Balance – December 31, 2024 $923,163 $11,251,725 SKHHP | 2024 Annual Progress Report (January-December)3 Indicators Goal 1: Fund the expansion and preservation of affordable housing. • Number of housing units or number of projects funded with financial support from SKHHP: 4 projects, 406 units (2024); 7 projects, 679 units (2022-24) • Number of housing units preserved with financial support from SKHHP: 24 (2024); 44 (2022-24) • Total dollar amount pooled by member jurisdictions for Housing Capital Fund: $3,959,020 (2024); $11,251,725 (2022-24) • Total dollar amount from new sources of revenue added to the Housing Capital Fund: $800,000 (2024) • Geographic diversity of applications received for annual Housing Capital Fund funding round: Auburn, Burien, Kent, Renton (2024) Goal 2: Develop policies to expand and preserve affordable housing. • Number of preservation policies explored with members of the Executive Board: 16 • Successful update of data and deployment of the Affordable Housing Inventory Dashboard: Yes • Number of relationships built with developers: 14 (2024); 34 (2022-24) • Number of Executive Board briefings on key housing and homelessness topics: 6 (2024) Goal 3: Serve as advocate for South King County. • Number of events or engagement opportunities Advisory Board members organized or supported: 2 (2024) • Number of communications published: 4 (2024) • Number of meetings, forums, or events attended that advance SKHHP’s mission: 160+ (2024) Goal 4: Manage operations and administration. • Work plan and budget adopted: Yes • Quarterly progress reports prepared and presented to Executive Board: Yes • Financial reports and public records maintained: Yes • Commitments of the Affordable Housing Inventory Dashboard contract fulfilled: Yes • Website maintained: Yes • Application submitted for SKHHP Foundation 501c3 status: No 2025 State Legislative Update Dorsol Plants, SKHHP Program Coordinator SKHHP Executive Board Updated as of February 21, 2025 1 SKHHP 2025 Legislative Priority South King County is facing a growing affordable housing crisis. In order to address this crisis, we need to fund all aspects of affordable housing, including: •Homeownership for moderate income households and below •Preservation of naturally occurring affordable housing (NOAH) •Land acquisition to secure permanent affordability •Permanent supportive housing (PSH) •Infrastructure around affordable housing developments •Workforce housing; especially smaller sized units below 60% AMI and family sized units at all income levels 2 2025 Legislative Session Timeline First Day of 2025 Legislative Session 13 Jan. Policy Committee Cutoff 21 Feb. Fiscal Committee Cutoff 28 Feb. AWC’s City Action Days 2025 19-20 Feb. Chamber of Origin Cutoff 12 March Opposite Chamber Policy Committee Cutoff 2 April Opposite Chamber Fiscal Committee Cutoff 8 April Opposite Chamber Cutoff 16 April Sine Die 27 April 3 Funding Affordable Housing Bill Number Description Status HB 1075 Expanding housing supply by supporting the ability of public housing authorities to finance affordable housing developments.2/12 - Public Hearing HB 1206 Expanding eligibility to utilize the multifamily tax exemption program to all counties required or choosing to plan under RCW 36.70A.040.1/21 - Public Hearing HB 1210 Concerning targeted urban area tax preferences. 2/11 - Referred to Rules HB 1334 Modifying the annual regular property tax revenue growth limit.2/11 - Public Hearing HB 1480 Allowing all counties to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.1/21 - First Reading HB 1494 Concerning the property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers.2/20 - Public Hearing HB 1694 Concerning revenues from the excise tax on real estate transactions imposed by cities and counties under RCW 82.46.035.2/13 - Public Hearing HB 1696 Modifying the covenant homeownership program. 2/18 - Executive Action HB 1717 Creating a sales and use tax remittance program for affordable housing.2/21 - Public Hearing SB 5591 Creating a sales and use tax remittance program for affordable housing.2/7 - Public Hearing 4 Funding Affordable Housing Continued Bill Number Description Status HB 1763 Providing state funding for essential affordable housing programs.2/18 - Public Hearing SB 5576 Providing state funding for essential affordable housing programs.1/29 - First Reading HB 1791 Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax.2/13 - Public Hearing HB 1808 Creating an affordable homeownership revolving loan fund program. 2/18 - Executive Action HB 1867 Allowing counties or cities to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.2/13 - Public Hearing HB 1907 Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.2/25 - Public Hearing SB 5711 Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.2/10 - First Reading SB 5553 Providing a sales and use tax incentive for multifamily affordable housing.1/28 - First Reading SB 5647 Providing a real estate excise tax exemption for the sale of qualified affordable housing.2/13 - Public Hearing 5 Housing and Land Use Bill Number Description Status HB 1195 Concerning compliance with siting, development permit processes and standards, and requirements for permanent supportive housing, transitional housing, indoor emergency housing, or indoor emergency shelters.2/20 - Executive Action Concerning compliance with siting, development permit processes and standards, and requirements for permanent supportive housing, transitional housing, indoor emergency housing, or indoor emergency shelters.2/5 - Public Hearing Concerning the siting of childcare centers.2/22 - Public Hearing Ensuring compliance with the housing element requirements of the growth management act.1/21 - Public Hearing Ensuring compliance with the housing element requirements of the growth management act.2/18 - Public Hearing Concerning minimum parking requirements.2/4 - Public Hearing Concerning minimum parking requirements.2/19 - Third Reading, passed Allowing objectively reasonable regulation of the utilization of public property.2/12 - Public Hearing Simplifying condominium construction statutes.2/18 - Referred to Rules Promoting transit-oriented housing development. 2/19 – Referred to Capital Budget 6 Housing and Land Use Continued Bill Number Description Status HB 1732 Preserving homeownership options by limiting excessive home buying by certain entities.2/10 - Public Hearing Preserving homeownership options by limiting excessive home buying by certain entities.2/13 - Referred to Ways & Means Establishing land banking authorities.2/18 - Public Hearing Ensuring that local government planning complies with the growth management act.2/14 - Passed to Rules Concerning mobile dwellings.2/3 - Referred to Ways & Means Streamlining the subdivision process inside urban growth areas. 2/19 - Placed on Second Reading Concerning affordable housing development in counties not closing the gap between estimated existing housing units within the county and existing housing needs.2/17 - Referred to Ways & Means Concerning impact fees.2/21 - Executive Session Expanding and funding the foreclosure mediation program.2/20 - Referred to Ways & Means Expanding affordable housing opportunities on community and technical college lands.2/21 - Executive Session 7 Thank you 8 Dorsol Plants, SKHHP Program Coordinator SKHHP Executive Board February 21, 2025