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HomeMy WebLinkAboutUPDATEDAgendaPacket_SKHHP_ExecutiveBoard_2025_6_13SKHHP Executive Board June 13, 2025, 1:00 – 3:00 PM Special In-Person Meeting In-person attendance at: Auburn City Hall - City Council Chambers 25 W Main Street Auburn, WA 98001 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 1:00 a. ROLL CALL b. INTRODUCTIONS OF STAFF WORK GROUP MEMBERS AND ADVISORY BOARD REPRESENTATIVE II. PUBLIC COMMENT 1:05 III. APPROVAL OF MAY 16, 2025 MINUTES 1:07 Motion is to approve the May 16, 2025 SKHHP Executive Board meeting minutes. IV. AGENDA MODIFICATIONS 1:09 V. BOARD BUSINESS 1:10 a. 2025 HOUSING CAPITAL FUND GUIDELINES Presenter: Claire V. Goodwin, SKHHP Executive Manager Purpose: Review final draft, including revised priority language related to the environment, and adopt the 2025 Housing Capital Fund Guidelines. Background: Each year, the Executive Board adopts guidelines for the annual funding round of the SKHHP Housing Capital Fund. The guidelines serve as both the request for proposals (RFP) and the notice of funding available (NOFA) for the funding round. The Executive Board will review a final version and consider adoption. Motion is to adopt the 2025 Housing Capital Fund Guidelines. b. SKHHP FIVE-YEAR PLAN DEVELOPMENT Presenter: Claire V. Goodwin, SKHHP Executive Manager 1:25 Purpose: Continue to explore the long-term vision of SKHHP and review recommended ideas for expanding SKHHP’s scope over the next five years, followed by Board discussion. Background: The SKHHP Executive Board has been interested in discussing SKHHP’s role and options to optimize SKHHP’s impact across the subregion. Board Members completed a survey in January and were invited to share ideas on their vision for SKHHP over the next five years. The Board reviewed an inventory of ideas at the March 21, 2025 Executive Board meeting to potentially expand SKHHP’s scope of work. For review, discussion, and receipt of Board feedback, no action proposed. VI. UPDATES/ANNOUNCEMENTS • Burien Family Housing closed 6/5 • TWG update • SKHHP legislative forum proposed date: September 19, 2025 1pm-3pm (regular SKHHP monthly meeting) • Other 2:55 VII. ADJOURN 3:00 SKHHP Executive Meeting May 16, 2025 MINUTES I. CALL TO ORDER Nancy Backus called the meeting to order at 1:01 PM. ROLL CALL/ESTABLISHMENT OF QUORUM Executive Board members present: Nancy Backus, City of Auburn; Dana Ralph, City of Kent; Anyah Zupancic, City of Burien; Kristina Soltys, City of Covington; Gene Achziger, City of Des Moines; Brian Davis, City of Federal Way; Victoria Schroff, City of Maple Valley; Carmen Rivera, City of Renton; James Lovell, City of SeaTac; Thomas McLeod, City of Tukwila; Sunaree Marshall, King County. Others present: Claire Goodwin, SKHHP Executive Manager; Dorsol Plants, SKHHP Program Coordinator; James Alberson, City of Renton (Alternate); Dennis Martinez, City of Tukwila (Alternate); Merina Hanson, City of Kent; Maria Arns, SKHHP Advisory Board; Evan Maxim, City of SeaTac; Laurel Humphrey, City of Tukwila; Matt Torpey, City of Maple Valley; Angie Mathias, City of Renton. Carmen Rivera joined at 1:41 PM II. PUBLIC COMMENT No public comment was received. III. APPROVAL OF APRIL 18, 2025 MINUTES Dana Ralph moved to approve the April 18, 2025 minutes as presented, seconded by James Lovell. Motion was approved (11-0) IV. AGENDA MODIFICATIONS No modifications to the agenda were made. V. BOARD BUSINESS a. RESERVE POLICY Claire Goodwin presented the Board with options to establish a reserve policy for interest earnings in 2024 and beyond. The Board discussed reserve policy options, including maintaining 30% (Option 1), 60% (Option 2), or 100% (Option 3) of annual expenditures in reserve and applying the remaining funds to the SKHHP Housing Capital Fund. Dana Ralph moved to approve Option 3 for the use of interest earnings and the establishment of a 100% reserve fund, seconded by Eric Zimmerman. Motion was approved. (11-0) b. 2026 WORK PLAN AND BUDGET Claire Goodwin reviewed a final draft of the SKHHP 2026 work plan and budget with the Board, which incorporated changes from the March 21, 2025 and April 18, 2025 Executive Board meeting. James Lovell moved to adopt the 2026 SKHHP work plan and budget, incorporating any action taken adopting a reserve policy, seconded by Victoria Schroff. Motion was approved. (11-0) c. 2025 HOUSING CAPITAL FUND GUIDELINES AND PRIORITIES Claire Goodwin presented the draft 2025 Housing Capital Fund Guidelines to the Board. Board Members reviewed and discussed language related to adding 'climate adaptive' to the Housing Capital Fund priorities list, and directed SKHHP staff to draft alternative language for consideration at the June 13, 2025, Executive Board meeting. Board Members considered language in the guidelines to clarify that SKHHP funding supports permanent affordable housing and directed SKHHP staff to remove the language from the eligible activities and include language in the ineligible activities specific to not funding emergency shelter and transitional housing. Eric Zimmerman offered to support drafting alternate language related to the 'climate adaptive' priority. d. 2025 SKHHP LEGISLATIVE FORUM Claire Goodwin presented an outline for a 2025 SKHHP Legislative Forum to the Board. The forum's intent will be to highlight the work SKHHP has done in the last few years, including pooling over $14 million for affordable housing. Additionally, time will be set aside at the June 13, 2025, Executive Board meeting to begin developing SKHHP’s 2026 Legislative Priority. Board members discussed focusing the event on the State Legislature and holding additional events, which could include King County or Federal Legislators. Board members supported holding the event in mid to late September instead of August. e. 2025 QUARTER 1 REPORT Claire Goodwin reviewed the 2025 Quarter 1 report with the Board. SKHHP staff with the support of the Staff Work Group will distribute the report to the member jurisdictions after the meeting as required by the SKHHP ILA. f. 2025 LEGISLATIVE SESSION UPDATE Dorsol Plants presented an update on the 2025 State Legislative session to the Board. VI.UPDATES/ANNOUNCEMENTS Claire Goodwin reminded the Board that the June 13, 2025, Executive Board meeting would be in-person, beginning at 1:00 p.m. The agenda will include adopting the Housing Capital Fund guidelines, reviewing ideas for SKHHP’s 5-year vision, and discussing SKHHP’s role in homelessness. She asked if the Board would be willing to extend the June 13, 2025, Executive Board meeting by thirty minutes to accommodate the agenda. The Board expressed consensus in extending the meeting by thirty minutes. Claire Goodwin informed the Board that SKHHP had transitioned to using the “action minutes” format, which is consistent with best practices. Claire Goodwin informed the Board she would be meeting with the Governor’s Office to discuss the Washington State Housing Strategy for 2026-27 along with ARCH and SSHA3P. Claire Goodwin updated the Board that she was finalizing contracts with Burien Miller Creek and Burien Family Housing. Claire Goodwin informed the Board that she would be presenting on the 2026 work plan and budget to the SKHHP member city councils. VII. ADJOURN Nancy Backus adjourned the meeting at 3:04 PM. SKHHP 2024 2025 Housing Capital Fund Guidelines Page 1 of 15 SOUTH KING HOUSING AND HOMELESSNESS PARTNERS Housing Capital Fund – 20245 Funding Guidelines INTRODUCTION AND PURPOSE The Cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, SeaTac, and Tukwila, plus King County have entered into an interlocal agreement to cooperatively plan for and provide affordable housing in South King County through an organization called the South King Housing and Homelessness Partners (SKHHP). To accomplish this, SKHHP member cities provide funding to affordable housing projects through the SKHHP Housing Capital Fund. The general purpose of the Housing Capital Fund is to create and preserve affordable housing that meets the needs of low-income households earning up to 60% of area median income (AMI) for renters and up to 80% AMI for homeownership. SKHHP welcomes all groups or agencies considering preserving or adding to inventory of affordable housing available to low-income households. We encourage interested parties to contact SKHHP as early in the process as possible. SKHHP welcomes all inquiries, and our goal is to help project proponents connect to partners and leverage funding to move forward in as coordinated an approach as possible. AVAILABLE FUNDING Approximately $3.54 million in funding is anticipated to be available for the 20245 application round. This total is comprised of revenue collected from SKHHP member city sales and/or use taxes authorized by RCW 82.14.530 from House Bill (HB) 1590, RCW 82.14.540 from Substitute House Bill (SHB) 1406, corresponding local enacting legislation, and pooled as authorized by RCW 82.14.540(10) and the SKHHP pooling interlocal agreements. In 2024, this total is also comprised of limited funding sourced from municipal general funds. Table 1: Available Funding Amount by Source RCW 82.14.530 (HB 1590) $2,770,000552,000 RCW 82.14.540 (SHB 1406) $1,039220,000 Unrestricted General Funds $300,000 SKHHP 2024 2025 Housing Capital Fund Guidelines Page 2 of 15 FUNDING PRIORITIES SKHHP has established the following priorities for the Housing Capital Fund in 2024 2025 which are listed in alphabetical order: Collaboration. Project sponsors working in collaboration/partnership with local community-based organizations are a high priority. Community Connections and Engagement. Project sponsors that demonstrate connections and direct experience with populations they are proposing to serve, and proven success in community engagement and involvement in decision-making are a high priority. Disproportionate Impact. Projects that ensure housing proactively meets the needs of and is available to populations most disproportionately impacted by housing costs while complying with applicable tax revenue restrictions and with relevant federal, state, and local fair housing laws. Economic Opportunity. Projects that support the advancement of economic opportunity are a high priority. This includes proximity to transit, commercial cores, and connections to workforce development and other services that promote upward mobility, including, but not limited to childcare centers, higher education institutions, and libraries. Environmental Benefit. Projects that encourage positive health outcomes based on environmental factors are a high-priority and may include, but are not limited to, housing within 0.5 mile to open spaces, parks, neighborhood gardens, and tree-canopies and which avoid or mitigate exposure to environmental hazards and pollutants. Extremely Low Income and Supportive Housing. Proposals that provide rental housing for individuals and families earning 0-30% AMI and proposals that incorporate supportive services are a high priority. Geographic EquityDistribution. The SKHHP Housing Capital Fund has a long-term objective to produce housing across SKHHP member jurisdictions through the creation of a broad distribution in the location of all types of affordable housing over time to maximize choice for individuals and families seeking affordable homes within SKHHP’s geographic purview. Homeownership. Projects that are able to provide homeownership opportunities for individuals and families earning up to 60% AMI or 80% AMI. pending all funding jurisdictions have adopted any needed amendments to enabling legislation granting this as an allowable use per the passage of SB 6173 (2024). SKHHP 2024 2025 Housing Capital Fund Guidelines Page 3 of 15 Leverage of Private and Public Investment. SKHHP encourages project sponsors to pursue private and public investment that provides maximum leverage of local resources. Projects that already have funding secured and/or leverage private and public investment are a high priority. Preservation. Projects that preserve affordable housing through acquisition and/or rehabilitation are a high priority. This includes housing units with expiring affordability requirements, income-restricted properties, and residential rental properties that are affordable to households earning up to 60% AMI, but do not have affordability requirements (naturally occurring affordable housing). Racial Equity. SKHHP encourages proposals that advance racial equity through strategies that intentionally dismantle the racially disparate impacts of our the current housing system and that interrupt cyclical generational poverty. Strategies may include, butinclude but are not limited to: preserving communities at risk of displacement; creating project partnerships that give voice and ownership to communities of color; affirmatively marketing new housing opportunities to populations disproportionately experiencing cost burden and housing insecurity; and addressing historic inequities in access to homeownership. Transit-Oriented Development. Projects located within ½ mile of an existing or planned high capacityhigh-capacity transit station, defined as fixed rail (light rail or Sounder train), bus rapid transit, or other high frequency bus stop are a high priority. Transit-oriented development is designed to support dense, walkable communities that increase access to employment, services, and other opportunities. SCHEDULE The following schedule is anticipated for the 20254 Housing Capital Fund application round: June 16, 20254 Application package available Intent to apply form and pre-application meeting September 13, 20242025 Applications due by 5pm3pm November 1521, 20242025 SKHHP makes funding recommendations SKHHP recommendation reviewed by City Councils INTENT TO APPLY FORM AND PRE-APPLICATION MEETING Applicants are required to schedule a pre-application meeting held no later than August 164, 20245 and to submit an intent to apply form in advance of the required pre-application meeting to identify and discuss potential issues. An intent to apply form and pre-application meeting are required in order to be eligible to apply to the funding round. Pre-application meetings will include SKHHP staff as well as staff from the jurisdiction where the project is proposed to be located. First-time applicants will benefit from meeting early and often with SKHHP 2024 2025 Housing Capital Fund Guidelines Page 4 of 15 SKHHP. Applicants should be prepared to provide a project description identifying the population to be served, approximate number of units, income and affordability, type of construction (rehabilitation or new), neighborhood issues, whether relocation or displacement will be required, team members (developer, architect, property manager), likely funding sources, and demonstration of how the proposed project meets SKHHP’s goals and priorities. The intent to apply form will assist in providing this information in advance of the pre-application meeting. For projects located in cities, SKHHP staff shall notify the Mayor and City Manager (if applicable) of the applicant’s intent to apply. For projects located in unincorporated King County, SKHHP staff shall notify the County’s SKHHP Board Member. Within thirty days of being notified, a jurisdiction may submit a statement on the project proposal to SKHHP staff as part of the project’s Housing Capital Fund application. Should the jurisdiction not be supportive, the proposal shall not move forward for consideration in the current funding cycle. Pre-application meetings will be held between May 6 June 23 and August 164, 20245. To set up a pre-application meeting, please email Dorsol Plants, SKHHP Program Coordinator, at dplants@skhhp.org. ELIGIBLE APPLICANTS Housing Capital Funds may be applied for by applicants or a group of applicants that are: • Non-profit organizations • Private for-profit organizations • Public housing authorities • Public development authorities • Units of local government Partnerships involving combinations of the above groups are encouraged, especially in the case where a private for-profit organization and/or applicants with less experience looking to strengthen affordable housing development skills and abilities applies for funding. Partnerships are seen as opportunities to build organizational capacity, achieve community outcomes, and reduce investment risk for the Housing Capital Fund. ELIGIBLE BENEFICIARIES The general purpose of the Housing Capital Fund is to create and preserve affordable housing that meets the needs of low-income households earning up to 60% of AMI for renters and up to 80% AMI for homeownership. SKHHP uses the United States Department of Housing and Urban Development income limits and rent limits developed for the Seattle-Bellevue Metro Area. 2024 2025 Income and Rent Limits – King County AMI $147157,4100 SKHHP 2024 2025 Housing Capital Fund Guidelines Page 5 of 15 Table 2: Maximum 2024 2025 Household Income for Multifamily Rental Properties 1 $22,000 $21,080 $25,140 $24,100 $28,280 $27,120 $31,420 $30,140 $33,940 $32,560 $36,460 $34,980 $38,980 $37,360 $41,480 $39,780 $33,050 $31,650 $37,750 $36,200 $42,450 $40,700 $47,150 $45,200 $50,950 $48,850 $54,700 $52,450 $58,500 $56,050 $62,250 $59,700 $38,500 $36,890 $43,995 $42,175 $49,490 $47,460 $54,985 $52,745 $59,395 $56,980 $63,805 $61,215 $68,215 $65,380 $72,590 $69,615 $44,000 $42,160 $50,280 $48,200 $56,560 $54,240 $62,840 $60,280 $67,880 $65,120 $72,920 $69,960 $77,960 $74,720 $82,960 $79,560 $49,500 $47,430 $56,565 $54,225 $63,630 $61,020 $70,695 $67,815 $76,365 $73,260 $82,035 $78,705 $87,705 $84,060 $93,330 $89,505 $55,000 $52,700 $62,850 $60,250 $70,700 $67,800 $78,550 $75,350 $84,850 $81,400 $91,150 $87,450 $97,450 $93,400 $103,700 $99,450 $66,000 $63,240 $75,420 $72,300 $84,840 $81,360 $94,260 $90,420 $101,820 $97,680 $109,380 $104,940 $116,940 $112,080 $124,440 $119,340 $77,000 $73,780 $87,990 $84,350 $98,980 $94,920 $109,970 $105,490 $118,790 $113,960 $127,610 $122,430 $136,430 $130,760 $145,180 $139,230 $88,000 $77,700 $100,560 $88,800 $113,120 $99,900 $125,680 $110,950 $135,760 $119,850 $145,840 $128,750 $155,920 $137,600 $165,920 $146,500 Table 3: Maximum Rent and Utilities for Projects Based on Unit Size* $550 $527 $589 $564 $707 $678 $817 $783 $911 $874 $1,005 $964 $826 $791 $885 $848 $1,061 $1,017 $1,226 $1,175 $1,367 $1,311 $1,509 $1,446 $962 $922 $1,031 $988 $1,237 $1,186 $1,429 $1,371 $1,595 $1,530 $1,760 $1,687 $1,100 $1,054 $1,178 $1,129 $1,414 $1,356 $1,634 $1,567 $1,823 $1,749 $2,011 $1,928 $1,237 $1,185 $1,325 $1,270 $1,590 $1,525 $1,838 $1,763 $2,050 $1,967 $2,262 $2,169 $1,375 $1,317 $1,473 $1,411 $1,767 $1,695 $2,042 $1,959 $2,278 $2,186 $2,514 $2,410 $1,650 $1,581 $1,767 $1,694 $2,121 $2,034 $2,451 $2,351 $2,734 $2,623 $3,017 $2,892 1 https://www.huduser.gov/portal/datasets/mtsp.html; https://www.huduser.gov/portal/datasets/il/il25/Section8- IncomeLimits-FY25.pdf; ahttps://www.huduser.gov/portal/datasets/il/il24/Section8-IncomeLimits-FY24.pdf; and https://www.huduser.gov/portal/datasets/il.html https://www.huduser.gov/portal/datasets/il.html SKHHP 2024 2025 Housing Capital Fund Guidelines Page 6 of 15 70% 80% *Maximum rent and utilities for projects based on unit size includes the cost of basic utilities paid by resident. Unless the property pays ALL utilities, property must allow for the estimated amount the resident pays for utilities when calculating rent charges, so that both together do not exceed the rent limits. Most properties use public housing authority utility allowances. King County Housing Authority energy assistance supplements (formerly called utility allowances). Funds sourced from and authorized under RCW 82.14.530 (HB 1590) must support at least one of the following population groups whose income is at or below 60% AMI: • Persons with behavioral health disabilities • Veterans • Seniors • Persons who are homeless or at-risk of being homeless 2, including families with children • Unaccompanied homeless youth or young adults • Persons with disabilities • Survivors of domestic violence ELIGIBLE ACTIVITIES SKHHP funds provided from RCW 82.14.540 (SHB 1406) may be used for the following activities: • Acquisition, and related costs such as appraisals, financing costs, and transaction costs • Rehabilitation and new construction costs, including construction site development and off-site development if necessary to ensure utility service to the project site • Mixed-income projects so long as Housing Capital Fund dollars only assist units affordable at or below 60% AMI, or up to 80% AMI for homeownership projects pending all funding jurisdictions have adopted any needed amendments to enabling legislation granting this as an allowable use per the passage of SB 6173 (2024) • SKHHP funds provided from RCW 82.14.530 (HB 1590) may be used for the following activities: • Construction or acquisition of affordable housing, which may include supportive housing and new units of affordable housing within an existing structure • Acquisition of land for affordable housing 2 At-risk of being homeless defined by HUD as earning less than 30% AMI with other conditions: https://files.hudexchange.info/resources/documents/AtRiskofHomelessnessDefinition_Criteria.pdf SKHHP 2024 2025 Housing Capital Fund Guidelines Page 7 of 15 SKHHP funds provided from Unrestricted General Funds may be used for any cost associated with the development or preservation of affordable housing up to 80% AMI. Currently, SKHHP does not have funds to support early technical assistance or predevelopment costs. Applicants in very preliminary stages are encouraged to apply to Impact Capital for predevelopment funding. SKHHP member cities understand that certain County, State, and Federal housing programs require some level of matching by local resources. The SKHHP Housing Capital Fund is encouraged to be used as a local match for these programs. It is SKHHP’s preference not to be the sole public funder on a project. Applicants are encouraged to apply to other public funders in addition to SKHHP such as the Department of Commerce’s Housing Trust Fund, King County’s Housing Finance Program, and/or the Washington State Housing and Finance Commission’s various programs. INELIGIBLE ACTIVITIES Housing Capital Funds may NOT be used for: • The development of any non-residential use. Housing Ccapital ffunds may be used in a mixed- use development only for that portion of the development that is specific to the residential use. This restriction also applies to site development and off-site development costs for non- residential uses. • The cost of any program operating expenses • The cost of any political or lobbying activities or materials • Rehabilitation of single-family housing units in a manner that would duplicate participating jurisdictions’ housing repair assistance programs • Uses that are public capital facilities such as correctional facilities or impatient treatment facilities • Construction or acquisition of behavioral health-related facilities, or acquiring land for these purposes • Funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers • Operation, delivery, or evaluation of behavioral health treatment programs and services or housing-related services • Emergency shelter, transitional housing, or emergency housing PROJECT LOCATION All projects funded under this program must be located within the SKHHP sphere of influence (see ATTACHMENT A). SKHHP 2024 2025 Housing Capital Fund Guidelines Page 8 of 15 LOAN AND REGULATORY TERMS Housing Capital Fund dollars will be made available as either secured grants or loans. SKHHP has flexible terms designed to accommodate a range of projects and loan terms will vary based on the financial needs of the project. Applicants should indicate in the application whether they are applying for a grant or loan, and what loan terms are proposed for the project. Loan applicants will not receive priority over grant applicants. PERIOD OF AFFORDABILITY SKHHP expects that projects will commit to providing long-term affordability in the form of a 50-year covenant. A covenant will be recorded against the property that requires continued use of the property for low-income housing for the period of affordability. During this period the owner or property manager will be required to do annual reporting of tenant incomes and rents to ensure that affordability requirements are met, and SKHHP will monitor those reports to ensure compliance. If the project is converted to an alternative use or is otherwise not meeting the agreed upon terms in the covenant any time during the project’s agreed-to term of affordability, the SKHHP Housing Capital Fund contribution to the project will be subject to immediate repayment, and potentially a proportionate share of appreciation. REPORTING REQUIREMENTS Additional funding conditions will be spelled out in an award letter to successful applicants. At a minimum, the following reporting requirements shall apply during development and occupancy: Quarterly Status Reports Quarterly status reports are required from for all Housing Capital Fund funded projects during the development stage (from the time funds are awarded until the project’s completion and occupancy of the project). The quarterly reports must at a minimum will minimally include the status of funds expended and progress to date. A final budget must be prepared and submitted at the time of construction start and project completion. SKHHP will rely on these quarterly reports to determine if satisfactory progress is being made on the project. Additionally, SKHHP staff will be entitled to inspect the project site during the development/project’s construction stage. Ongoing Monitoring After occupancy, the project sponsor or manager will submit an annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate-income, and that meet other eligibility criteria established in the SKHHP contract and covenant. In addition, the annual report shall include certifications to SKHHP that it is in compliance with the covenant, which shall include the most current occupancy information, rent schedule (showing which units are in each income class), a calculation justifying any increases in rents from the previous rent schedule, consistent with the covenant and the contract, and the actual rents being charged to each unit. For projects supported by other public SKHHP 2024 2025 Housing Capital Fund Guidelines Page 9 of 15 funders such as King County, the Washington State Department of Commerce, and/or the Washington Housing Finance Commission, SKHHP shall accept the same annual report produced for those agencies so long as it contains the necessary detail required by SKHHP to ensure compliance with the contract and covenant. In addition, for projects with loan payments, financial information must be reported annually which will be used for assessing contingent loan payments and project health. The annual reports shall be submitted by June 30 of each year and will be required for the full duration of the affordability period. SKHHP will also periodically evaluate all projects for long term sustainability.All projects will also be evaluated periodically for long-term sustainability. The annual reports will be required for the full duration of affordability. OTHER AWARD TERMS The terms of the award will be detailed in the final contract and funding documents. For common questions SKHHP receives regarding award terms, the following are provided: Timeframe for Funding Commitment The funding commitment continues for thirty-six (36) months from the date of final Council approval and shall expire thereafter. if all conditions are not satisfied. An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time, the awardee project sponsor 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 project sponsor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period. Compensation and Method of Payment SKHHP only provides funding based on documented invoices on a reimbursement basis and only for activities agreed to in the contract. SKHHP retains 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. Procurement Requirements Awardees Project sponsors shall use and document an open and competitive bidding process (consisting of at least three bids) for construction and related consultant services associated with the project, regardless of the source of funds used to pay their costs, and shall keep records of its process in the event of an audit. Awardees shall pay RCW 39.12 prevailing wages in all projects funded by SKHHP that include construction activities, unless federal funds awarded to the project mandate use of federal prevailing wage rates. APPLICATION CONTENTS SKHHP 2024 2025 Housing Capital Fund Guidelines Page 10 of 15 SKHHP uses the Combined Funders Application, developed jointly with other public funders including the Washington State Department of Commerce and King County. The Combined Funders Application forms, SKHHP application addendums, and SKHHP notice of intent to apply are available on SKHHP’s website at: http://skhhp.org/home/housing-capital-fund/ Letter of consistency Projects that are selected for funding must demonstrate consistency with community priorities and plans. Applicants must include a letter of consistency from the jurisdiction where the project is located affirming the project is consistent with the Consolidated Plan, local comprehensive plan and its housing element, and any local housing action plans. The jurisdiction will be provided a template from SKHHP which can be used to provide the needed information to the applicant. Letter of community support Projects that are selected for funding must demonstrate community support. Applicants must include at least one letter of support from a community organization, faith-based institution, community center, or school that serves the community where the project is proposed to be located. The following materials are to be submitted for each application: 1. A letter of consistency from the jurisdiction where the project is proposed (PDF format) 2. A letter of community support (PDF format) 3. SKHHP Addendum with narrative responses (Word format) 3.4. Underwriting Standards Addendum (PDF format) 4.5. Combined Funders Application that meets the following: o Attachments under each Tab should be placed in a separate folder labeled with the Tab number. o The Project Workbook must be in Excel format with linked sheets unlocked and formulas visible. To submit an application please send an email with a link from OneDrive, Dropbox, Google Drive, or other file sharing services to Dorsol Plants, SKHHP Program Coordinator, at dplants@skhhp.org no later than 5pm 3pm Pacific Standard Time on FridayWednesday, September 13, 20245. Please note, if you have already received funding through SKHHP in a previous funding round, are re- applying to SKHHP for additional funds, and are seeking other public funds, (e.g. King County, Washington State Department of Commerce, Washington State Housing Finance Commission), you must provide SKHHP with electronic copies of applications submitted to other funders. SKHHP 2024 2025 Housing Capital Fund Guidelines Page 11 of 15 If you applied for funding in a previous funding round of the SKHHP Housing Capital Fund, were not selected for funding, and were provided feedback on your application, please include a letter in your application describing how any previously identified issues have been resolved. If you were awarded funding from SKHHP in a previous funding round and are returning for an additional award, please include a letter in your application describing why additional funds are needed. If you have any questions about application requirements, please contact Claire Vanessa Goodwin, SKHHP Executive Manager, at (253) 931-3042 or email cvgoodwin@skhhp.org or Dorsol Plants, SKHHP Program Coordinator, at (253) 804-5089 or email dplants@skhhp.org. REVIEW PROCESS Proposals will be reviewed using the following process: Step 1. An initial screening will be conducted by SKHHP staff to determine the completeness of each application. Staff reserves the right to deny applications that are incomplete. Step 2. SKHHP will evaluate the applications at the Advisory and Executive Board meetings in October and November and develop a recommendation to the respective City Councils. SKHHP’s initial recommendation will be made by its Advisory Board with the final recommendation provided by the SKHHP Executive Board. Step 3. SKHHP member City Councils that have contributed funding will review and approve the funding recommendation submitted by SKHHP, or will return the recommendation, with comments, for further investigation before a final decision is made. EVALUATION CRITERIA General Evaluation of applications will focus on an overall evaluation of all of the following key areas: • Advancing the goals of equity, including the extent that projects are community-driven and/or reduce or undo disproportionate harm to communities most impacted by historic injustice and displacement, including extremely low-income households with incomes at or below 30% AMI and Black, Indigenous, and People of Color (BIPOC) communities. • Feasibility, timeliness, and cost effectiveness, including total development cost per unit/square feet, reasonableness and feasibility of schedule, budgets, and proforma, adequacy of resources and ongoing sustainability, and site control to ensure timely completion. Project sponsor should be in good standing with other public funders. • Relevance of the project to local housing needs and funding priorities, including the extent to which the project is consistent with the local plans (e.g., Consolidated Plan, Housing Element, or area plans), and the extent to which housing need will be met and help to achieve SKHHP’s stated priorities. SKHHP 2024 2025 Housing Capital Fund Guidelines Page 12 of 15 • Suitability of the project sponsor and development team, including any track record and/or housing development for success, adequacy of management plans, duration of affordability, ongoing sustainability, adequacy of support services, and firmness of financial commitments or likelihood of receiving those commitments. • Consistency with underwriting standards, including proposed maximum rents being a minimum of 10% below market rent, a debt coverage credit ratio of at least 1.2, and construction escalation of at least 10% for new construction and 15% for rehabilitation. The underwriting standards are consistent across King County public funders and should be incorporated into applications. A detailed list is included as an addendum to the SKHHP application and should be completed as part of the application package. Specific The following specific information areas will be evaluated for data to support the key focus areas described above. A. Development and Operating Budgets Projects will be evaluated for cost effectiveness on a per unit and per square foot basis. Higher up- front development costs may be justified to create long-term operational efficiencies (e.g., through use of high-efficiency building systems), provided that those increased costs have a relatively short payback period. Higher land costs may be justified to account for strategic location such as proximity to transit or other local amenities. SKHHP may use third party reviewers to evaluate estimated construction costs and feasibility of the overall project. Development and operating budget forms should provide detailed explanation to support estimated expenses. If support services are identified as an integral part of the project, a detailed services budget must also be submitted as part of the Combined Funders Application. Proposed financing will be evaluated for feasibility based on expressed interest from lenders and investors, and applicant (or applicant team, including more-experienced consultants and partners) should have experience in obtaining financing, and other competitive criteria (e.g., estimated tax credit score if LIHTC equity is proposed). B. Project Readiness Projects will be evaluated for their readiness to proceed. Applications should be complete and thoroughly reviewed and vetted prior to submission to ensure accuracy of reported information. For projects not proposing land acquisition, Aapplicants should demonstrate full site control. Projects that propose significant fundraising should demonstrate steps taken to prepare for and implement a capital campaign, including a plan and timeline for the proposed capital fundraising and, preferably, a track record of past or current capital fundraising ability. Projects that will rely on public funding to cover the costs of ongoing operations or services should identify and describe the availability of such funding, and report on the project’s competitiveness for such funds based on discussions with likely funders. C. Development Team Track Record SKHHP 2024 2025 Housing Capital Fund Guidelines Page 13 of 15 Project review will take into consideration how well experienced development teams have performed on previously funded projects and, in the interest in increasing the diversity of housing and community developers, how less experienced developers (or partners/consultants on their team) demonstrate an understanding of the steps and structures needed for success. When there is an applicable track record (for the applicant or partner/consultants), the application should identify lessons learned from those projects and describe how performance/actions have been modified as a result. D. Property and Asset Management Capacity The proposed property and asset management entities will be evaluated on their experience, performance, or developing capacity in managing comparable developments. Successful asset managers will have a detailed understanding of the physical and financial condition of their properties, regularly updated capital needs assessments, and thoughtful policies for balancing the objective of maintaining affordable rents and planning for healthy reserves and operating income to cover current and future expenses. If a project is in its preliminary stages, a boiler plate management plan may be submitted with the application. A final management plan will be required prior to contracting. A successful management plan will include the following information: • Occupancy: Information in the occupancy management plan must include lease information (length, tenant eligibility and selection standards, standards for termination of lease, eviction, lease renewal) and marketing strategies including local outreach. • Facility: The facility management plan should include provisions for both routine and long-term building maintenance. • Supportive services: If applicable, the applicant must describe how any supportive services identified as an integral part of the project will be provided, either directly or through linkages with an existing network of service agencies and describe how those services will be in accordance with best practices for the intended population including number of staff providing the supportive services and hours dedicated solely to service provision at the project location. E. Displacement and Relocation Any activity which would result in the displacement of existing residents, especially low- and/or moderate-income residents and/or BIPOC residents is discouraged. If displacement may occur, the applicant must submit, as part of the application for capital funds, a plan for providing relocation assistance to the displaced residents. If relocation may occur, the applicant is strongly encouraged to contact the King County Housing Finance Program to discuss what relocation assistance may be available. Relocation costs should be included in the project budget. Projects funded with federal dollars (e.g., CDBG funds) must meet all applicable federal relocation requirements. F. Supporting Equity SKHHP 2024 2025 Housing Capital Fund Guidelines Page 14 of 15 The proposed project will be evaluated based on whether the development will advance SKHHP’s goals of equity, including preserving existing communities at risk of displacement (which includes manufactured housing communities); increasing opportunities for extremely low-income households (households with incomes at or below 30% AMI); creating meaningful project partnerships (including with BIPOC-lead organizations) that give voice and ownership to residents and communities of color; affirmatively marketing new housing opportunities to communities less likely to access opportunities in South King County; providing affordable housing as a public investment – and potential catalyst – in areas that have traditionally received less services and/or public investments; and addressing historic inequities in access to homeownership. G. Nature of Location As part of the decision process, reviewers will want to understand how the proposed development fits into the neighborhood and would help further any number of public policy goals. Examples of furthering public policy goals could include: • Locating in a “high opportunity” location, with proximity to or easy access to jobs, grocery stores, pharmacies, schools, /childcare, transportation, and community or cultural centers. • Providing affordable housing in areas at high-risk of displacement or experiencing a loss of naturally occurring affordable housing. • Investing public dollars in areas traditionally/historically underserved or as a catalyst for further investments and development. SKHHP 2024 2025 Housing Capital Fund Guidelines Page 15 of 15 ATTACHMENT A: SKHHP SPHERE OF INFLUENCE SKHHP 2025 Housing Capital Fund Guidelines Page 1 of 13 SOUTH KING HOUSING AND HOMELESSNESS PARTNERS Housing Capital Fund – 2025 Funding Guidelines INTRODUCTION AND PURPOSE The Cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, SeaTac, and Tukwila, plus King County have entered into an interlocal agreement to cooperatively plan for and provide affordable housing in South King County through an organization called the South King Housing and Homelessness Partners (SKHHP). To accomplish this, SKHHP member cities provide funding to affordable housing projects through the SKHHP Housing Capital Fund. The general purpose of the Housing Capital Fund is to create and preserve affordable housing that meets the needs of low-income households earning up to 60% of area median income (AMI) for renters and up to 80% AMI for homeownership. SKHHP welcomes all groups or agencies considering preserving or adding inventory of affordable housing available to low-income households. We encourage interested parties to contact SKHHP as early in the process as possible. SKHHP welcomes all inquiries, and our goal is to help project proponents connect to partners and leverage funding to move forward in as coordinated an approach as possible. AVAILABLE FUNDING Approximately $3.5 million in funding is anticipated to be available for the 2025 application round. This total is comprised of revenue collected from SKHHP member city sales and/or use taxes authorized by RCW 82.14.530 from House Bill (HB) 1590, RCW 82.14.540 from Substitute House Bill (SHB) 1406, corresponding local enacting legislation, and pooled as authorized by RCW 82.14.540(10) and the SKHHP pooling interlocal agreements. Table 1: Available Funding Amount by Source Revenue Source Amount RCW 82.14.530 (HB 1590) $2,552,000 RCW 82.14.540 (SHB 1406) $922,000 Total $3,474,000 SKHHP 2025 Housing Capital Fund Guidelines Page 2 of 13 FUNDING PRIORITIES SKHHP has established the following priorities for the Housing Capital Fund in 2025 which are listed in alphabetical order: Collaboration. Project sponsors working in collaboration/partnership with local community -based organizations are a high priority. Community Connections and Engagement. Project sponsors that demonstrate connections and direct experience with populations they are proposing to serve, and proven success in community engagement and involvement in decision-making are a high priority. Disproportionate Impact. Projects that ensure housing proactively meets the needs of and is available to populations most disproportionately impacted by housing costs while complying with applicable tax revenue restrictions and with relevant federal, state, and local fair housing laws. Economic Opportunity. Projects that support the advancement of economic opportunity are a high priority. This includes proximity to transit, commercial cores, and connections to workforce development and other services that promote upward mobility, including, but not limited to childcare centers, higher education institutions, and libraries. Environmental Benefit. Projects that encourage positive health outcomes based on environmental factors are a high-priority and may include, but are not limited to, housing within 0.5 mile to open spaces, parks, neighborhood gardens, and tree-canopies and which avoid or mitigate exposure to environmental hazards and pollutants. Extremely Low Income and Supportive Housing. Proposals that provide rental housing for individuals and families earning 0-30% AMI and proposals that incorporate supportive services are a high priority. Geographic Distribution. The SKHHP Housing Capital Fund has a long-term objective to produce housing across SKHHP member jurisdictions through the creation of a broad distribution in the location of all types of affordable housing over time to maximize choice for individuals and families seeking affordable homes within SKHHP’s geographic purview. Homeownership. Projects that are able to provide homeownership opportunities for individuals and families earning up to 80% AMI. Leverage of Private and Public Investment. SKHHP encourages project sponsors to pursue private and public investment that provides maximum leverage of local resources. Projects that already have funding secured and/or leverage private and public investment are a high priority. Preservation. Projects that preserve affordable housing through acquisition and/or rehabilitation are a high priority. This includes housing units with expiring affordability requirements , income-restricted properties, and residential rental properties that are affordable to households earning up to 60% AMI, but do not have affordability requirements (naturally occurring affordable housing). SKHHP 2025 Housing Capital Fund Guidelines Page 3 of 13 Racial Equity. SKHHP encourages proposals that advance racial equity through strategies that intentionally dismantle the racially disparate impacts of the current housing system and that interrupt cyclical generational poverty. Strategies may include but are not limited to: preserving communities at risk of displacement; creating project partnerships that give voice and ownership to communities of color; affirmatively marketing new housing opportunities to populations disproportionately experiencing cost burden and housing insecurity; and addressing historic inequities in access to homeownership. Transit-Oriented Development. Projects located within ½ mile of an existing or planned high-capacity transit station, defined as fixed rail (light rail or Sounder train), bus rapid transit, or other high frequency bus stop are a high priority. Transit-oriented development is designed to support dense, walkable communities that increase access to employment, services, and other opportunities. SCHEDULE The following schedule is anticipated for the 2025 Housing Capital Fund application round: June 16, 2025 Application package available No later than August 4, 2025 Intent to apply form and pre-application meeting September 3, 2025 Applications due by 3pm November 21, 2025 SKHHP makes funding recommendations February – March 2026 SKHHP recommendation reviewed by City Councils April 2026 Award letters sent INTENT TO APPLY FORM AND PRE-APPLICATION MEETING Applicants are required to schedule a pre-application meeting held no later than August 4, 2025 and to submit an intent to apply form in advance of the required pre-application meeting to identify and discuss potential issues. An intent to apply form and pre-application meeting are required to be eligible to apply to the funding round. Pre-application meetings will include SKHHP staff as well as staff from the jurisdiction where the project is proposed to be located. First-time applicants will benefit from meeting early and often with SKHHP. Applicants should be prepared to provide a project description identifying the population to be served, approximate number of units, income and affordability, type of construction (rehabilita tion or new), neighborhood issues, whether relocation or displacement will be required, team members (developer, architect, property manager), likely funding sources, and demonstration of how the proposed project meets SKHHP’s goals and priorities. The intent to apply form will assist in providing this information in advance of the pre-application meeting. For projects located in cities, SKHHP staff shall notify the Mayor and City Manager (if applicable) of the applicant’s intent to apply. For projects located in unincorporated King County, SKHHP staff shall notify the County’s SKHHP Board Member. Within thirty days of being notified, a jurisdiction may submit a statement on the project proposal to SKHHP staff as part of the project’s Housing Capital Fund SKHHP 2025 Housing Capital Fund Guidelines Page 4 of 13 application. Should the jurisdiction not be supportive, the proposal shall not move forward for consideration in the current funding cycle. Pre-application meetings will be held between June 23 and August 4, 2025. To set up a pre- application meeting, please email Dorsol Plants, SKHHP Program Coordinator, at dplants@skhhp.org. ELIGIBLE APPLICANTS Housing Capital Funds may be applied for by applicants or a group of applicants that are: • Non-profit organizations • Private for-profit organizations • Public housing authorities • Public development authorities • Units of local government Partnerships involving combinations of the above groups are encouraged, especially in the case where a private for-profit organization and/or applicants with less experience looking to strengthen affordable housing development skills and abilities applies for funding. Partnerships are seen as opportunities to build organizational capacity, achieve community outcomes, and reduce investment risk for the Housing Capital Fund. ELIGIBLE BENEFICIARIES The general purpose of the Housing Capital Fund is to create and preserve affordable housing that meets the needs of low-income households earning up to 60% AMI for renters and up to 80% AMI for homeownership. SKHHP uses the United States Department of Housing and Urban Development income limits and rent limits developed for the Seattle -Bellevue Metro Area. 2025 Income and Rent Limits – King County AMI $157,100 Table 2: Maximum 2025 Household Income for Multifamily Rental Properties1 % of AMI Household Size 1-person 2-person 3-person 4-person 5-person 6-person 7-person 8-person 20% $22,000 $25,140 $28,280 $31,420 $33,940 $36,460 $38,980 $41,480 30% $33,050 $37,750 $42,450 $47,150 $50,950 $54,700 $58,500 $62,250 35% $38,500 $43,995 $49,490 $54,985 $59,395 $63,805 $68,215 $72,590 40% $44,000 $50,280 $56,560 $62,840 $67,880 $72,920 $77,960 $82,960 45% $49,500 $56,565 $63,630 $70,695 $76,365 $82,035 $87,705 $93,330 50% $55,000 $62,850 $70,700 $78,550 $84,850 $91,150 $97,450 $103,700 60% $66,000 $75,420 $84,840 $94,260 $101,820 $109,380 $116,940 $124,440 70% $77,000 $87,990 $98,980 $109,970 $118,790 $127,610 $136,430 $145,180 80% $88,000 $100,560 $113,120 $125,680 $135,760 $145,840 $155,920 $165,920 1 https://www.huduser.gov/portal/datasets/mtsp.html; https://www.huduser.gov/portal/datasets/il/il25/Section8- IncomeLimits-FY25.pdf; and https://www.huduser.gov/portal/datasets/il.html SKHHP 2025 Housing Capital Fund Guidelines Page 5 of 13 Table 3: Maximum Rent and Utilities for Projects Based on Unit Size* % of AMI Number of Bedrooms Studio 1-bedroom 2-bedroom 3-bedroom 4-bedroom 5-bedroom 20% $550 $589 $707 $817 $911 $1,005 30% $826 $885 $1,061 $1,226 $1,367 $1,509 35% $962 $1,031 $1,237 $1,429 $1,595 $1,760 40% $1,100 $1,178 $1,414 $1,634 $1,823 $2,011 45% $1,237 $1,325 $1,590 $1,838 $2,050 $2,262 50% $1,375 $1,473 $1,767 $2,042 $2,278 $2,514 60% $1,650 $1,767 $2,121 $2,451 $2,734 $3,017 70% $1,925 $2,062 $2,474 $2,859 $3,190 $3,520 80% $2,200 $2,357 $2,828 $3,268 $3,646 $4,023 *Maximum rent and utilities for projects based on unit size includes the cost of basic utilities paid by resident. Unless the property pays ALL utilities, property must allow for the estimated amount the resident pays for utilities when calculating rent charges, so that both together do not exceed the rent limits. Most properties use public housing authority utility allowances. King County Housing Authority energy assistance supplements (formerly called utility allowances). Funds sourced from and authorized under RCW 82.14.530 (HB 1590) must support at least one of the following population groups whose income is at or below 60% AMI: • Persons with behavioral health disabilities • Veterans • Seniors • Persons who are homeless or at-risk of being homeless2, including families with children • Unaccompanied homeless youth or young adults • Persons with disabilities • Survivors of domestic violence ELIGIBLE ACTIVITIES SKHHP funds provided from RCW 82.14.540 (SHB 1406) may be used for the following activities: • Acquisition, and related costs such as appraisals, financing costs, and transaction costs • Rehabilitation and new construction costs, including construction site development and off-site development if necessary to ensure utility service to the project site • Mixed-income projects so long as Housing Capital Fund dollars only assist units affordable at or below 60% AMI or up to 80% AMI for homeownership projects SKHHP funds provided from RCW 82.14.530 (HB 1590) may be used for the following activities: 2 At-risk of being homeless defined by HUD as earning less than 30% AMI with other conditions: https://files.hudexchange.info/resources/documents/AtRiskofHomelessnessDefinition_Criteria.pdf SKHHP 2025 Housing Capital Fund Guidelines Page 6 of 13 • Construction or acquisition of affordable housing, which may include supportive housing and new units of affordable housing within an existing structure • Acquisition of land for affordable housing Currently, SKHHP does not have funds to support early technical assistance or predevelopment costs. Applicants in preliminary stages are encouraged to apply to Impact Capital for predevelopment funding. SKHHP member cities understand that certain County, State, and Federal housing programs require some level of matching by local resources. The SKHHP Housing Capital Fund is encouraged to be used as a local match for these programs. It is SKHHP’s preference not to be the sole public funder on a project. Applicants are encouraged to apply to other public funders in addition to SKHHP such as the Department of Commerce’s Housing Trust Fund, King County’s Housing Finance Program, and/or the Washington State Housing and Finance Commission’s various programs. INELIGIBLE ACTIVITIES Housing Capital Funds may NOT be used for: • The development of any non-residential use. Housing Capital funds may be used in a mixed-use development only for that portion of the development that is specific to residential use. This restriction also applies to site development and off-site development costs for non-residential uses. • The cost of any program operating expenses • The cost of any political or lobbying activities or materials • Rehabilitation of single-family housing units in a manner that would duplicate participating jurisdictions’ housing repair assistance programs • Uses that are public capital facilities such as correctional facilities or impatient treatment facilities • Construction or acquisition of behavioral health-related facilities, or acquiring land for these purposes • Funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers • Operation, delivery, or evaluation of behavioral health treatment programs and services or housing-related services • Emergency shelter, transitional housing, or emergency housing PROJECT LOCATION All projects funded under this program must be located within the SKHHP sphere of influence (see ATTACHMENT A). SKHHP 2025 Housing Capital Fund Guidelines Page 7 of 13 LOAN AND REGULATORY TERMS Housing Capital Fund dollars will be made available as either secured grants or loans. SKHHP has flexible terms designed to accommodate a range of projects and loan terms will vary based on the financial needs of the project. Applicants should indicate in the application whether they are a pplying for a grant or loan, and what loan terms are proposed for the project. Loan applicants will not receive priority over grant applicants. PERIOD OF AFFORDABILITY SKHHP expects that projects will commit to providing long-term affordability in the form of a 50-year covenant. A covenant will be recorded against the property that requires continued use of the property for low-income housing for the period of affordability. During this period the owner or property manager will be required to do annual reporting of tenant incomes and rents to ensure that affordability requirements are met, and SKHHP will monitor those reports to ensure compliance. If the project is converted to an alternative use or is otherwise not meeting the agreed upon terms in the covenant any time during the project’s agreed-to term of affordability, the SKHHP Housing Capital Fund contribution to the project will be subject to immediate repayment, and potentially a proportionate share of appreciation. REPORTING REQUIREMENTS Additional funding conditions will be spelled out in an award letter to successful applicants. At a minimum, the following reporting requirements shall apply during development and occupancy: Quarterly Status Reports Quarterly status reports are required for all Housing Capital Fund funded projects during the development stage (from the time funds are awarded until the project’s completion and occupancy). The quarterly reports must at a minimum include the status of funds expended and progress to date. A final budget must be prepared and submitted at the time of construction start and project completion. SKHHP will rely on these quarterly reports to determine if satisfactory progress is being made on the project. SKHHP staff will be entitled to inspect the project site during the project’s construction. Ongoing Monitoring After occupancy, the project sponsor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low- and/or moderate-income and that meet other eligibility criteria established in the SKHHP contract and covenant. In addition, the annual report shall include certifications to SKHHP that it is in compliance with the covenant, which shall include the most current occupancy information, rent schedule (showing which units are in each income class), a calculation justifying any increases in rents from the previous rent schedule, consistent with the covenant and the contract, and the actual rents being charged to each unit. For projects supported by other public funders such as King County, the Washington State Department of Commerce, and/or the Washington Housing Finance Commission, SKHHP 2025 Housing Capital Fund Guidelines Page 8 of 13 SKHHP shall accept the same annual report produced for those agencies so long as it contains the necessary detail required by SKHHP to ensure compliance with the contract and covenant. The annual reports shall be submitted by June 30 of each year and will be required for the full duration of the affordability period. SKHHP will also periodically evaluate all projects for long term sustainability. OTHER AWARD TERMS The terms of the award will be detailed in the final contract and funding documents. For common questions SKHHP receives regarding award terms, the following are provided: Timeframe for Funding Commitment The funding commitment continues for thirty-six (36) months from the date of final Council approval and shall expire thereafter. An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time, the project sponsor 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 project sponsor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period. Compensation and Method of Payment SKHHP only provides funding based on documented invoices and only for activities agreed to in the contract. SKHHP retains 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. Procurement Requirements Project sponsors shall use and document an open and competitive bidding process for construction and related consultant services associated with the project, regardless of the source of funds used to pay their costs, and shall keep records of its process in the event of an audit . Awardees shall pay RCW 39.12 prevailing wages in all projects funded by SKHHP that include construction activities, unless federal funds awarded to the project mandate use of federal prevailing wage rates. APPLICATION CONTENTS SKHHP uses the Combined Funders Application, developed jointly with other public funders including the Washington State Department of Commerce and King County. The Combined Funders Application forms, SKHHP application addendums, and SKHHP notice of intent to apply are available on SKHHP’s website at: http://skhhp.org/home/housing-capital-fund/ Letter of consistency Projects that are selected for funding must demonstrate consistency with community priorities and plans. Applicants must include a letter of consistency from the jurisdiction where the project is located affirming the project is consistent with the Consolidated Plan, local comprehensive plan and it s housing SKHHP 2025 Housing Capital Fund Guidelines Page 9 of 13 element, and any local housing action plans. The jurisdiction will be provided a template from SKHHP which can be used to provide the needed information to the applicant. Letter of community support Projects that are selected for funding must demonstrate community support. Applicants must include at least one letter of support from a community organization, faith-based institution, community center, or school that serves the community where the project is proposed to be located. The following materials are to be submitted for each application: 1. A letter of consistency from the jurisdiction where the project is proposed (PDF format) 2. A letter of community support (PDF format) 3. SKHHP Addendum with narrative responses (Word format) 4. Underwriting Standards Addendum (PDF format) 5. Combined Funders Application that meets the following: o Attachments under each Tab should be placed in a separate folder labeled with the Tab number. o The Project Workbook must be in Excel format with linked sheets unlocked and formulas visible. To submit an application please send an email with a link from OneDrive, Dropbox, Google Drive, or other file sharing services to Dorsol Plants, SKHHP Program Coordinator, at dplants@skhhp.org no later than 3pm Pacific Standard Time on Wednesday, September 3, 2025. If you applied for funding in a previous funding round of the SKHHP Housing Capital Fund, were not selected for funding, and were provided feedback on your application, please include a letter in your application describing how any previously identified issues have been resolved. If you were awarded funding from SKHHP in a previous funding round and are returning for an additional award, please include a letter in your application describing why additional funds are needed. If you have any questions about application requirements, please contact Claire Vanessa Goodwin, SKHHP Executive Manager, at (253) 931-3042 or email cvgoodwin@skhhp.org or Dorsol Plants, SKHHP Program Coordinator, at (253) 804-5089 or email dplants@skhhp.org. REVIEW PROCESS Proposals will be reviewed using the following process: Step 1. An initial screening will be conducted by SKHHP staff to determine the completeness of each application. Staff reserves the right to deny applications that are incomplete. SKHHP 2025 Housing Capital Fund Guidelines Page 10 of 13 Step 2. SKHHP will evaluate the applications at the Advisory and Executive Board meetings in October and November and develop a recommendation to the respective City Councils. SKHHP’s initial recommendation will be made by its Advisory Board with the final recommendation provided by the SKHHP Executive Board. Step 3. SKHHP member City Councils that have contributed funding will review and approve the funding recommendation submitted by SKHHP, or will return the recommendation, with comments, for further investigation before a final decision is made. EVALUATION CRITERIA General Evaluation of applications will focus on an overall evaluation of all of the following key areas: • Advancing the goals of equity, including the extent that projects are community-driven and/or reduce or undo disproportionate harm to communities most impacted by historic injustice and displacement, including extremely low-income households with incomes at or below 30% AMI and Black, Indigenous, and People of Color (BIPOC) communities. • Feasibility, timeliness, and cost effectiveness, including total development cost per unit/square feet, reasonableness and feasibility of schedule, budgets, and proforma, adequacy of resources and ongoing sustainability, and site control to ensure timely completion. Project sponsor should be in good standing with other public funders. • Relevance of the project to local housing needs and funding priorities, including the extent to which the project is consistent with the local plans (e.g., Consolidated Plan, Housing Element, or area plans), and the extent to which housing need will be met and help to achieve SKHHP’s stated priorities. • Suitability of the project sponsor and development team, including any track record and/or housing development for success, adequacy of management plans, duration of affordability, ongoing sustainability, adequacy of support services, and firmness of financial commitments or likelihood of receiving those commitments. • Consistency with underwriting standards, including proposed maximum rents being a minimum of 10% below market rent, a debt coverage credit ratio of at least 1.2, and construction escalation of at least 10% for new construction and 15% for rehabilitation. The underwriting standards are consistent across King County public funders and should be incorporated into applications. A detailed list is included as an addendum to the SKHHP application and should be completed as part of the application package. Specific The following specific information areas will be evaluated for data to support the key focus areas described above. SKHHP 2025 Housing Capital Fund Guidelines Page 11 of 13 A. Development and Operating Budgets SKHHP may use third party reviewers to evaluate estimated construction costs and feasibility of the overall project. Development and operating budget forms should provide detailed explanation to support estimated expenses. If support services are identified as an integral part of the project, a detailed services budget must also be submitted as part of the Combined Funders Application . Proposed financing will be evaluated for feasibility based on expressed interest from lenders and investors, and applicant (or applicant team, including more -experienced consultants and partners) should have experience in obtaining financing, and other c ompetitive criteria (e.g., estimated tax credit score if LIHTC equity is proposed). B. Project Readiness Projects will be evaluated for their readiness to proceed. Applications should be complete and thoroughly reviewed and vetted prior to submission to ensure accuracy of reported information. For projects not proposing land acquisition, applicants should demonstrate full site control. Projects that propose significant fundraising should demonstrate steps taken to prepare for and implement a capital campaign, including a plan and timeline for the proposed capital fundraising and, preferably, a track record of past or current capital fundraising ability. Projects that will rely on public funding to cover the costs of ongoing operations or services should identify and describe the availability of such funding, and report on the project’s competitiveness for such funds based on discussions with likely funders. C. Development Team Track Record Project review will take into consideration how experienced development teams have performed on previously funded projects and, in the interest in increasing the diversity of housing and community developers, how less experienced developers (or partners/consultants on their team) demonstrate an understanding of the steps and structures needed for success. When there is an applicable track record (for the applicant or partner/consultants), the application should identify lessons learned from those projects and describe how performance/actions have been modified as a result. D. Property and Asset Management Capacity The proposed property and asset management entities will be evaluated on their experience, performance, or developing capacity in managing comparable developments. Successful asset managers will have a detailed understanding of the physical and financial condition of their properties, regularly updated capital needs assessments, and thoughtful policies for balancing the objective of maintaining affordable rents and planning for healthy reserves and operating income to cover current and future expenses. If a project is in its preliminary stages, a boiler plate management plan may be submitted with the application. A final management plan will be required prior to contracting. A successful management plan will include the following information: SKHHP 2025 Housing Capital Fund Guidelines Page 12 of 13 • Occupancy: Information in the occupancy management plan must include lease information (length, tenant eligibility and selection standards, standards for termination of lease, eviction, lease renewal) and marketing strategies including local outreach. • Facility: The facility management plan should include provisions for both routine and long-term building maintenance. • Supportive services: If applicable, the applicant must describe how any supportive services identified as an integral part of the project will be provided, either directly or through linkages with an existing network of service agencies and describe how those services will be in accordance with best practices for the intended population including number of staff providing the supportive services and hours dedicated solely to service provision at the project location. E. Displacement and Relocation Any activity which would result in the displacement of existing residents, especially low- and/or moderate-income residents and/or BIPOC residents is discouraged. If displacement may occur, the applicant must submit, as part of the application for capital funds, a plan for providing relocation assistance to the displaced residents. Relocation costs should be included in the project budget. Projects funded with federal dollars (e.g., CDBG funds) must meet all applicable federal relocation requirements. F. Supporting Equity The proposed project will be evaluated based on whether the development will advance SKHHP’s goals of equity, including preserving existing communities at risk of displacement (which includes manufactured housing communities); increasing opportunities for extremely low-income households (households with incomes at or below 30% AMI); creating meaningful project partnerships (including with BIPOC-lead organizations) that give voice and ownership to residents and communities of color; affirmatively marketing new housing opportunities to communities less likely to access opportunities in South King County; providing affordable housing as a public investment – and potential catalyst – in areas that have traditionally received less services and/or public investments; and addressing historic inequities in access to homeownership. G. Nature of Location As part of the decision process, reviewers will want to understand how the proposed development fits into the neighborhood and would help further any number of public policy goals. Examples of furthering public policy goals could include: • Locating in a “high opportunity” location, with proximity to or easy access to jobs, grocery stores, pharmacies, schools, childcare, transportation, and community or cultural centers. • Providing affordable housing in areas at high-risk of displacement or experiencing a loss of naturally occurring affordable housing. • Investing public dollars in areas traditionally/historically underserved or as a catalyst for further investments and development. SKHHP 2025 Housing Capital Fund Guidelines Page 13 of 13 ATTACHMENT A: SKHHP SPHERE OF INFLUENCE SKHHP Five-Year Plan - Potential Actions with Analysis and Recommendation June 6, 2025 Goal No. Five-Year Plan Action Origin Effort Impact Cost?Staffing Required Suitability for contracting Note Recommendation to Explore Further 1 Continue to grow the Housing Capital Fund and bring in private funders. Board Member Medium- High High No .20 FTE Ongoing Low Items 1-3 interconnected.P 2 Establish and maintain 501c3 SKHHP Foundation for fundraising efforts. Previous work plan High Medium- High Yes .50 FTE Ongoing High Items 1-3 interconnected.P 3 Support public and private fundraising efforts of public and private entities (including non-profit corporations) to raise funds to carry out SKHHP’s mission. ILA High Medium- High Maybe .10 FTE Ongoing High Items 1-3 interconnected. P 4 Pursue partnerships with member jurisdictions and other organizations to preserve naturally occurring affordable housing (NOAH) including through acquisition. Preservation survey - 8 cities aligned Medium- Low High No .10 FTE Ongoing Low Item 4 and 11 similar. 5 Develop SKHHP Executive Board briefings on key housing and homelessness topics, especially as they relate to the goals of the work plan. 2026 work plan Low High No .02 FTE Ongoing (above existing) NA Opportunity to invest more in current work plan items P 6 Highlight what strategies the jurisdictions making significant progress on affordable housing production have undertaken. Board Member Low Low No .08 FTE One- Time Medium 7 Hold discussions with developers about barriers to development in the jurisdictions with few or no Housing Capital Fund projects. Board Member Low Low No .02 FTE One- Time Low Joint Planners & Developers 8 Partner with Workforce Development Council to advance workforce housing. Board Member Medium- Low Medium- Low No .02 FTE Ongoing Low Projects can apply to Housing Capital Fund 9 Maintain inventory of public and private sites available for affordable housing. ILA High Medium- Low Yes .05 Ongoing High Black Home Initiative developing inventory 10 Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP’s mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County. 2026 work plan Low High No .10 FTE Ongoing (above existing) NA Opportunity to invest more in current work plan items P 11 Connect affordable housing developers with property owners who intend to sell naturally occurring affordable housing in coordination with member cities. 2026 work plan Medium- Low High No .02 FTE Ongoing (above existing) NA Opportunity to invest more in current work plan items P 12 Work with the Advisory Board and SKC agencies working on housing affordability and regional housing stability to identify trends and promising practices and to mobilize those agencies to support SKC positions in regional decision making. ILA High Medium- High Maybe .10-.25 FTE Ongoing High 13 Meet with legislators as opportunities arise to inform about SKHHP’s mission, goals, and the Housing Capital Fund and host a legislative forum (odd numbered years). 2026 work plan Medium- Low High No .02 FTE Ongoing (above existing) NA Opportunity to invest more in current work plan items Goal 2: Develop policies to expand and preserve affordable housing Goal 1: Fund the expansion and preservation of affordable housing Goal 3: Serve as an advocate for South King County Page 1 of 2 SKHHP Five-Year Plan - Potential Actions with Analysis and Recommendation June 6, 2025 Goal No. Five-Year Plan Action Origin Effort Impact Cost?Staffing Required Suitability for contracting Note Recommendation to Explore Further 14 Transition to biennial work plan and budget Staff Work Group Medium- Low High No .02 FTE One- Time NA P 15 Develop webinars or self-studies to help new members get up to speed quicker. Board Member Low Low No .08 FTE One- Time Low 2025/2026 work plan P 16 Similar to ARCH, take a more active role in the management of member cities' affordable housing reporting and management duties. Board Member High High Yes .25 FTE Year 1 .5-.8 FTE Ongoing Low P 17 Assist members in developing strategies and programs to achieve State GMA housing goals, growth targets, local Comp Plan Housing Element goals, and local housing strategy plans. ILA High High Maybe .10-.25 FTE Ongoing Medium 18 Provide technical assistance to any member considering adopting land use incentives or affordable housing programs such as researching model programs, developing draft legislation, preparing briefing materials and making presentations to planning commissions and councils on request. ILA High High Maybe .25-.50 FTE Ongoing Medium 19 Administer direct service housing programs on behalf of any member including but not limited to relocation assistance programs, rent voucher and/or deposit loan programs. ILA High High Yes .50 FTE Year 1 .80-1.0 FTE Ongoing Low 20 Explore how to connect homelessness more to our housing work. Board Member High Medium- High Maybe .10-.20 FTE Ongoing Medium 21 Delve into non-housing root causes of homelessness. Board Member High Medium- High Maybe Depends High New: Advance a regional approach to addressing homelessness Goal 4: Manage operations and administration New: Support member cities advancement of affordable housing Page 2 of 2 SKHHP June Executive Board Meeting Claire V. Goodwin, SKHHP Executive Manager June 13, 2025 2025 Housing Capital Fund Guidelines Claire V. Goodwin, SKHHP Executive Manager June 13, 2025 Background •SKHHP members pool resources from SHB 1406, HB 1590, and the general fund for affordable housing construction and preservation/rehabilitation •ILA for pooling sales tax receipts to administer funds under RCW 82.14.530 and RCW 82.14.540 3 Board Request – New Priority 4 Environmental Benefit. Projects that encourage positive health outcomes based on environmental factors are a high-priority and may include, but are not limited to, housing within 0.5 mile to open spaces, parks, neighborhood gardens, and tree-canopies and projects which avoid or mitigate exposure to environmental hazards and pollutants. Ineligible Activities 5 •The development of any non-residential use. Housing Capital funds may be used in a mixed-use development only for that portion of the development that is specific to the residential use. This restriction also applies to site development and off-site development costs for non-residential uses. •The cost of any program operating expenses •The cost of any political or lobbying activities or materials •Rehabilitation of single-family housing units in a manner that would duplicate participating jurisdictions’ housing repair assistance programs •Uses that are public capital facilities such as correctional facilities or impatient treatment facilities •Construction or acquisition of behavioral health-related facilities, or acquiring land for these purposes •Funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers •Operation, delivery, or evaluation of behavioral health treatment programs and services or housing- related services •Emergency shelter, transitional housing, or emergency housing Added New Evaluation Criteria 6 New Revised Language 7 Projects will be evaluated for cost effectiveness based on both immediate impact and long-term benefit on a per unit and per square foot basis. Higher up-front development costs may be justified to create long-term operational efficiencies (e.g., through use of high-efficiency building systems), provided that those increased costs have a relatively short payback period. Higher land costs may be justified to account for strategic location such as proximity to transit or other local amenities. SKHHP Five-Year Plan Development Claire V. Goodwin, SKHHP Executive Manager June 13, 2025 Today’s Goals •Review recommendation on five-year plan items to explore further. •Get feedback on recommendation. •Through discussion, and using the recommendation as a starting place, get to consensus on five-year plan items to explore further and SKHHP’s role in addressing homelessness. 9 SKHHP Mission •South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. 10 Interlocal Agreement - Whereas •“common goal to ensure the availability of housing that meets the needs of all income levels in SKC” •“parties wish to provide a sound base of housing policies and programs in SKC and to complement the efforts of existing public and private organizations to address housing needs in SKC” •“parties wish to act cooperatively to formulate affordable housing policies and strategies that address housing stability, to foster efforts to preserve and provide affordable housing by combining public funding with private sector resources, to support the implementation of the goals of the GMA, related countywide planning policies and other local policies and programs relating to affordable housing” •“parties have determined that the most efficient and expeditious way for the parties to address affordable housing needs in SKC is through cooperative action and pooling public and private resources” •“not to duplicate efforts of non-profit corporations and other entities already providing affordable housing related services” •“a cooperative work plan with a primary focus on the production and preservation of affordable housing is needed because the lack of access to affordable housing is one of the key contributors to homelessness” •“workplan activities will be consistent with the purpose described in this agreement” 11 Interlocal Agreement - Purpose •“All parties to this agreement have a responsibility for local and regional planning for the provision of housing affordable to residents that work and/or live in SKC. The parties agree to act cooperatively to formulate affordable housing policies that address housing stability and to foster efforts to preserve and provide affordable housing by combining public funding with private-sector resources.” 12 Why a Five-Year Plan? 13 •Important to have longer term vision for the organization •Helps us stay accountable to each other •Provides opportunity to do big things that take time •Provides time to plan for resource needs Recommendations are…. 14 •Those items recommended that we do more exploratory work on to identify cost, potential funding sources, staffing, contracting potential, purpose, opportunities, challenges •Exploratory work will inform Board decision on items to pursue •Based on: •Building upon current Board priorities •Maximizing our limited staff capacity and growing it in creative ways •Assuming any future additional staff would likely be funded from self-sustaining sources •Survey responses from the Board and other individual conversations/communications •Staff Work Group input •Envisioning what SKHHP can become in 20 years Five-Year Plan – Potential Actions with Analysis and Recommendation (see handout) Goal No.Five-Year Plan Action Origin Effort Impact Cost?Staffing Required Suitability for contracting Note Recommendation to Explore Further 1 Continue to grow the Housing Capital Fund and bring in private funders.Board Member Medium- High High No .20 FTE Ongoing Low Items 1-3 interconnected. 2 Establish and maintain 501c3 SKHHP Foundation for fundraising efforts. Previous work plan High Medium- High Yes .50 FTE Ongoing High Items 1-3 interconnected. 3 Support public and private fundraising efforts of public and private entities (including non-profit corporations) to raise funds to carry out SKHHP’s mission. ILA High Medium- High Maybe .10 FTE Ongoing High Items 1-3 interconnected.  4 Pursue partnerships with member jurisdictions and other organizations to preserve naturally occurring affordable housing (NOAH) including through acquisition. Preservation survey - 8 cities aligned Medium- Low High No .10 FTE Ongoing Low Item 4 and 11 similar. 5 Develop SKHHP Executive Board briefings on key housing and homelessness topics, especially as they relate to the goals of the work plan.2026 work plan Low High No .02 FTE Ongoing (above existing)NA Opportunity to invest more in current work plan items  6 Highlight what strategies the jurisdictions making significant progress on affordable housing production have undertaken. Board Member Low Low No .08 FTE One- Time Medium 7 Hold discussions with developers about barriers to development in the jurisdictions with few or no Housing Capital Fund projects. Board Member Low Low No .02 FTE One- Time Low Joint Planners & Developers 8 Partner with Workforce Development Council to advance workforce housing.Board Member Medium- Low Medium- Low No .02 FTE Ongoing Low Projects can apply to Housing Capital Fund 9 Maintain inventory of public and private sites available for affordable housing. ILA High Medium- Low Yes .05 Ongoing High Black Home Initiative developing inventory 10 Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP’s mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County.2026 work plan Low High No .10 FTE Ongoing (above existing)NA Opportunity to invest more in current work plan items  11 Connect affordable housing developers with property owners who intend to sell naturally occurring affordable housing in coordination with member cities.2026 work plan Medium- Low High No .02 FTE Ongoing (above existing)NA Opportunity to invest more in current work plan items  12 Work with the Advisory Board and SKC agencies working on housing affordability and regional housing stability to identify trends and promising practices and to mobilize those agencies to support SKC positions in regional decision making.ILA High Medium- High Maybe .10-.25 FTE Ongoing High 13 Meet with legislators as opportunities arise to inform about SKHHP’s mission, goals, and the Housing Capital Fund and host a legislative forum (odd numbered years).2026 work plan Medium- Low High No .02 FTE Ongoing (above existing)NA Opportunity to invest more in current work plan items 14 Transition to biennial work plan and budget Staff Work Group Medium- Low High No .02 FTE One- Time NA  15 Develop webinars or self-studies to help new members get up to speed quicker.Board Member Low Low No .08 FTE One- Time Low 2025/2026 work plan  16 Similar to ARCH, take a more active role in the management of member cities' affordable housing reporting and management duties.Board Member High High Yes .25 FTE Year 1 .5-.8 FTE Ongoing Low  17 Assist members in developing strategies and programs to achieve State GMA housing goals, growth targets, local Comp Plan Housing Element goals, and local housing strategy plans.ILA High High Maybe .10-.25 FTE Ongoing Medium 18 Provide technical assistance to any member considering adopting land use incentives or affordable housing programs such as researching model programs, developing draft legislation, preparing briefing materials and making presentations to planning commissions and councils on request. ILA High High Maybe .25-.50 FTE Ongoing Medium 19 Administer direct service housing programs on behalf of any member including but not limited to relocation assistance programs, rent voucher and/or deposit loan programs. ILA High High Yes .50 FTE Year 1 .80-1.0 FTE Ongoing Low 20 Explore how to connect homelessness more to our housing work.Board Member High Medium- High Maybe .10-.20 FTE Ongoing Medium 21 Delve into non-housing root causes of homelessness.Board Member High Medium- High Maybe Depends High New: Advance a regional approach to addressing homelessness Goal 2: Develop policies to expand and preserve affordable housing Goal 1: Fund the expansion and preservation of affordable housing Goal 3: Serve as an advocate for South King County Goal 4: Manage operations and administration New: Support member cities advancement of affordable housing 15 Staff Capacity Analysis 16 Prevention Making the experience of homelessness rare through strategies that address the root cause of homelessness in addition to financial assistance and case management support that prevents individuals and families from ever becoming homeless. Rental Assistance Eviction/ Foreclosure Prevention Homelessness Prevention Crisis Response Making the experience of homelessness as brief as possible through programs that create pathways out of homelessness into permanent housing. Street Outreach Day Shelters Diversion Emergency Shelters Housing Making the experience of homelessness non- recurring through permanent housing and by advocating for additional affordable housing opportunities. Permanent Supportive Housing Other Permanent Housing Transitional Housing Rapid Re- Housing* Experiencing Homelessness Receiving Housing Support & ServicesExperiencing Housing Instability *Households enrolled in Rapid Re-housing are still experiencing homelessness until their housing search ends and they move into housing. Source: KCRHA Data and Measurements SKHHP’s current role in addressing homelessness Addressing Homelessness 18 •Staff Work Group recommendation: Continue to focus on funding the construction and preservation of affordable housing •Recommendation is based on: •SKHHP’s work currently making an impact on homelessness •Through the Housing Capital Fund, SKHHP helps move people from crisis to stability •To date, SKHHP has supported the construction of 105 units for homeless households plus 40 units for 30% AMI general households and preserved 45 units through rehab to support housing stability of those residents (679 total units funded) •Limited SKHHP staff and resources •308,677 affordable housing units needed across King County between 2019 and 2044 plus an additional 58,983 emergency housing beds •Statewide and regional service providers firm belief that addressing housing crisis is key to addressing homelessness Board Feedback 19 1.What are your thoughts on the recommendation? 2.How does this align with your vision and the vision of your city/county for SKHHP? 3.What concerns do you have? 4.What additional information do you need at a follow-up meeting or today to decide whether to move forward with an item or not? Next Steps 20 For the items the Board would like brought back: •Identity: cost, potential funding sources, staffing, contracting potential, purpose, opportunities, challenges •What it might look like •Potential to bring in relevant guest speakers •How we would integrate into our existing work plan •Anything else identified by the Board in discussion today Thank you! Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org June 13, 2025