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HomeMy WebLinkAbout05.19.23-Approved-SKHHP-EB-MinutesProgram Coordinator-SKHHP 1 Priority Review Program Planning & Development Services 1 2 Affordable Housing Action Strategy 2 3 Affordable Housing Action Strategy’s Objectives 1. Create More Homes for More People 2. Keep Housing Affordable and In Good Repair 3. Help People Stay in Their Homes and Communities 4. Reduce Barriers for People Who Often Encounter Them 3 44 2023 AHAS Action Teams 1.3:Multi Family Tax Exemption 1.4:Surplus land policy 1.12:Streamlined permit review process 1.2 and 1.8: IZ and diverse housing types 1.7:New homebuyer assistance 1.9:Affordable Housing Fund 2.3:Owner occupied housing repair 2.4:Improved tracking and monitoring 3.1:Tenant protections 3.2 and 4.1:Resources for housing and rental assistance 3.4:Low-income homeowner relief Active AHAS Teams Overlap with anti- displacement efforts 1.6:Offsite infrastructure support 55 Establishment of Priority Review Program Build off Established processes that have already proven to be successful •Pre-Development Review Process •Accela permitting software •Assign dedicated Project Coordinator to each project within Priority Review Program Establish clear thresholds for which projects can be deemed priority •Ensure eligibility via completion of checklist (available online) •Thresholds established via Director’s Rule, rather than code Establish Level of Service Targets for Priority Review •Target Review times for permitting reduced by 25% to 50% and target of 2 review cycles or less Reduce missed communication between reviewers and applicant •Post review comment review meetings •Take pro-active approach to resolve minor review comments 66 How does this program solve the problem? Lack of Affordable Housing is the primary problem. The solution is to create more affordable housing units through a variety of incentives and programs. Planning and Development Services permitting related incentives include: •Shortened review timelines •More predictability for timing on projects •Fee waiver for pre-application services •Dedicated permit coordinator works as an advocate for the project 7 Current Status Number of Projects in Priority Review •18 projects reviewed under Priority Review program from 2021 to present. •55 projects entered into Pre-Application Review from 2021 to present. Number of Units Permitted or Currently in Review •1,067 total units in review, permitted, or constructed •828 of these units are provided at 80% AMI or less Level of Service •Site Development Permits •8.6 weeks first review on average for priority reviews •7.9 weeks first review on average for standard reviews •Building Permits •8.7 weeks first review on average for priority reviews •10.1 weeks first review on average for standard reviews 7 8Areas of Success Pre-Application Services •Detailed comments and early access to staff reduces chances of a major issue impacting a project •Pre-Development Fee Waiver for affordable housing developers, such as Habitat for Humanity or Tacoma Housing Authority, gives these agencies ability to perform feasibility at lower costs Assigned Project Coordinator •Acts as an advocate for the project and takes ownership of it •Consistent point of act for developers to assist with troubleshooting permitting issues Time Savings •While time savings are modest, priority reviews for large commercial building permits have a quicker turnaround time than non-priority projects 9Areas for Improvement Set Strict Level of Service Standards •Priority may be helpful, but if City is behind on review times, still potential for lengthier review Dedicated Staff •Typically, Tacoma receives around 9-11 of these types of projects per year •Staff review teams should be consistent, in which each work group could have a dedicated priority reviewer Educating Organization & Resource Alignment •Ensure staff are clear that streamlined permitting for affordable housing is derived from the City’s Affordable Housing Action Strategy •Ensure City resources are in alignment from every department 10 Priority Review Program Dustin Lawrence, AICP, CFM 10 AUBURN VA LU E S S E R V I C E EN V I RON ME NT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O N SKHHP EXECUTIVE BOARD CITY OF AUBURN DEVELOPMENT PROCESS PRESENTED BY DEPARTMENT OF COMMUNITY DEVELOPMENT JEFF DIXON & JASON KRUM MAY 19, 2023 Department of Community Development Planning Building Development Engineering Permit Center Economic Development Community Services Code Enforcement CUSTOMER SERVICE EXPECTATIONS SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION •Customer Inquiry Responsiveness •Responses by end of next business day •Email, phone calls, in -person •Application Review Expectations •Building: 3 -weeks to 4 -weeks •Civil: 4 -weeks to 5 -weeks •Land Use: 4 -weeks to 5 -weeks •Internal Communication Expectations ELECTRONIC REVIEW PROCESS SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION •Bluebeam Revu •Electronic markups directly on plans •Additional references/resources (links, images, exhibits) •Simultaneous concurrent reviews •Electronic measurements •MyBuildingPermit.com •No printing, copying, transit, waiting in lobby •24 -hr remote access to documents, payments •Review documents routed quicker •Electronic approval documents STAKEHOLDER FEEDBACK SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION •Post Project Feedback Meetings •Informs Process Improvements •Informs Code and Design Standard Changes •Quarterly Master Builders Meetings •Sharing What Other Cities are Doing •Coordinating Legislative Changes •Engineering Design Standards •Deviation request tracking •Annual design standards updates DEVELOPMENT SUPPORTIVE PROGRAMS SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION •SEPA Exemption Thresholds •Flexibility in Sequencing of Submittals •Stock Plan/Base Plan Program •Short Plat Threshold •Final Plats as Administrative Decisions •Building Permit Application Prior to Plat Recording •Mapping LID Infeasibility •Impact/SDC Fee Deferral •Gross Density vs Net Density •Allowing Rezones Concurrent w/ Comp Plan Map Changes AUBURN VA LU E S S E R V I C E EN V I RON ME NT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O N Department of Community Development Planning Building Development Engineering Permit Center Economic Development Community Services Code Enforcement •Thank you for your time •Any Questions? ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 1 of 7 RESOLUTION NO. 2023-01 A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2024 SKHHP WORK PLAN AND OPERATING BUDGET WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves an annual work plan and budget each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an itemization of all categories of budgeted expenses and itemization of each Party’s contribution, including in-kind services; and WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will be transmitted to each participating jurisdiction for approval by their legislative body; and WHEREAS, the budget will not become effective until approved by the legislative body of each jurisdiction and adopted by the SKHHP Executive Board; and WHEREAS, if a party does not approve the work plan or budget in a timely manner, the Executive Board may adopt the budget and work plan with a two-thirds majority vote; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and implement the overarching SKHHP mission to work together and share resources to increase the available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2024 work plan includes four goals with corresponding action items that further SKHHP’s mission. NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows: Section 1. The Executive Board adopts the 2024 SKHHP Work Plan in Attachment A. Section 2. The Executive Board adopts the 2024 SKHHP Operating Budget in Attachment B. Section 3. Each party’s contribution to SKHHP’s operating budget will be transmitted on an annual basis during the first quarter of the calendar year. Section 4. This Resolution will take effect and be in full force upon approval by the legislative body of each participating jurisdiction. Dated and Signed this _____ day of _________________, 2023. _________________________ NANCY BACKUS, CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 2 of 7 RESOLUTION 2023-01 – ATTACHMENT A SKHHP 2024 WORK PLAN PURPOSE Establish a 2024 SKHHP work plan and budget that is guided by Executive Board priorities, is consistent with the SKHHP Interlocal Agreement, and furthers SKHHP’s mission. BACKGROUND Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. The 2024 SKHHP work plan builds on work done in previous years and was developed in collaboration with the Executive Board, Advisory Board, and staff work group. The work plan is organized into four goals with corresponding objectives and action items. Each action is identified by priority as follows: • Higher – Identified as higher priority by Executive Board or is necessary to carry out the Interlocal Agreements • Medium – Identified as mid-level priority • Lower – Identified as lower priority Quarterly budget and progress reports on the status of the work plan elements will be submitted to the SKHHP Executive Board and the legislative body of each member jurisdiction as follows: Quarter 1: May | Quarter 2: August | Quarter 3: November | Quarter 4: February In accordance with the Interlocal Agreement, the 2024 SKHHP work plan and budget will be approved by the SKHHP Executive Board and the legislative body of each member jurisdiction. 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. GOALS & OBJECTIVES Number Goal Objective 1 Fund the expansion and preservation of affordable housing. Coordinate public resources to attract greater private and public investment for affordable housing in South King County. preserve affordable housing. to promote sound housing policy. County. South King County needs at a local, administration. Interlocal Agreement requirements. ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 3 of 7 Goal 1 Fund the expansion and preservation of affordable housing. Actions Priority of Actions ••• = Higher •• = Medium facilitate conversations with member jurisdictions to identify and explore dedicated sources of revenue for affordable housing at the approval from participating Councils and preparing contract annual guidelines, updating application materials, soliciting proposals, Indicators o o o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 4 of 7 Goal 2 Develop policies to expand and preserve affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower homelessness topics, especially as they relate to the goals of the work Indicators o o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 5 of 7 Goal 3 Serve as advocate for South King County. Actions Priority of Actions ••• = Higher •• = Medium • = Lower organizations and stakeholder groups to provide education and engagement opportunities for elected officials and community promote shared affordable housing goals and equitable geographic that help advance SKHHP’s mission and provide a voice for increasing Indicators o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 6 of 7 Goal 4 Manage operations and administration. Actions Priority of Actions ••• = Higher •• = Medium • = Lower regular financial reports for the SKHHP Housing Capital Fund and SKHHP Indicators o o o o o o ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 7 of 7 RESOLUTION 2023-01 – ATTACHMENT B 2024 SKHHP Operating Budget Estimated beginning fund balance - January 1, 2024 $ 205,736 Estimated ending fund balance -December 31, 2024 $ 144,877 REVENUES Auburn $ 39,543 Burien $ 22,814 Covington $ 11,407 Des Moines $ 11,407 Federal Way $ 51,710 Kent $ 51,710 Maple Valley $ 11,407 Normandy Park $ 6,084 Renton $ 51,710 Tukwila $ 11,407 King County* $ 51,710 Additional King County* $ 23,290 Interest earnings $ 2,100 Office space (in-kind donation) $ 12,000 TOTAL REVENUES $ 358,299 Spend down balance $ 60,859 TOTAL $ 419,158 EXPENSES Salaries and benefits $ 305,344 Interfund IT $ 31,500 Advisory Board compensation $ 14,400 Office space (in-kind donation) $ 12,000 Other professional services/Misc. $ 6,400 Travel $ 5,250 Professional development $ 5,250 Supplies $ 2,000 Subtotal $ 382,144 Administering agency - 10% admin fee** $ 37,014 TOTAL $ 419,158 *King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year. **10% administrative fee is calculated as a percentage of operating costs which excludes in-kind donations and carry-forwards. SKHHP 2023 Housing Capital Fund Guidelines Page 1 of 11 SOUTH KING HOUSING AND HOMELESSNESS PARTNERS Housing Capital Fund – 2023 Funding Guidelines INTRODUCTION AND PURPOSE The Cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, and Tukwila, and 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. 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. 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. AVAILABLE FUNDING Approximately $1.06 million in total funding is anticipated to be available for the 2023 application round. This total is comprised of local funds from sales tax revenue authorized by Substitute House Bill (SHB) 1406, RCW 82.14.540. FUNDING PRIORITIES SKHHP has established the following priorities for the Housing Capital Fund in 2023: 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 relevant federal, state, and local fair housing laws. 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. Commented [CVG1]: These were the 2022 Housing Capital Fund priorities. Are these still reflective of the SKHHP 2023 Housing Capital Fund Guidelines Page 2 of 11 Geographic Equity. 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. 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 housing at risk of conversion to market-rate housing are a high priority. This includes housing units with expiring affordability requirements or preservation of residential rental properties that are affordable to households earning 60% AMI, but do not have affordability requirements. Racial Equity. SKHHP encourages proposals that advance racial equity through strategies that intentionally dismantle the racially disparate impacts of our current housing system. 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. SKHHP 2023 Housing Capital Fund Guidelines Page 3 of 11 SCHEDULE The following schedule is anticipated for the 2023 Housing Capital Fund application round: July 2023 Application package available By August 7, 2023 Provide intent to apply statement (optional) Prior to application submittal Pre-funding application meeting (mandatory) NOTICE OF INTENT TO APPLY Proponents of affordable housing projects within South King County who are planning a development and are interested in benefitting from coordinated funding are asked to submit a notice of intent to apply. Notice of intent forms are optional, but strongly encouraged and are due by Monday, August 7, 2023. Please submit your intent to apply as early as possible. A pre-application meeting is required in order to be eligible to apply to the funding round. PRE-APPLICATION MEETING Applicants are required to schedule a Pre-Funding Application Meeting to identify and discuss potential issues prior to submitting an application for funding. Pre-Funding 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 (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. Pre-Funding Application Meetings will likely be held between July 31 and September 8, 2023. To set up a pre-funding application meeting, email Dorsol Plants 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 SKHHP 2023 Housing Capital Fund Guidelines Page 4 of 11 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 build 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 Housing Capital Funds. 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 area median income. SKHHP uses the United States Department of Housing and Urban Development income limits and rent limits developed for the Seattle-Bellevue Metro Area. 2022 Income and Rent Limits – King County Area Median Income $115,700 Maximum 2022 Household Income for Multifamily Rental Properties $18,120 $27,180 $23,300 $25,880 $27,960 $30,040 $32,100 $34,180 $27,180 $31,080 $34,950 $38,820 $341,940 $45,060 $48,150 $51,270 $31,710 $36,260 $40,775 $45,290 $48,930 $52,570 $56,175 $59,815 $36,240 $41,440 $46,600 $51,760 $55,920 $60,080 $64,200 $68,360 $40,770 $46,620 $52,425 $58,230 $62,910 $67,590 $72,225 $76,905 $45,300 $51,800 $58,250 $64,700 $69,900 $75,100 $80,250 $85,450 $54,360 $62,160 $69,900 $77,640 $83,880 $90,120 $96,300 $102,540 Maximum Rent and Utilities for Projects Based on Unit Size* $453 $485 $582 $673 $751 $828 $679 $728 $873 $1,009 $1,126 $1,242 $792 $849 $1,019 $1,177 $1,314 $1,449 $906 $971 $1,165 $1,346 $1,502 $1,657 $1,019 $1,092 $1,310 $1,514 $1,689 $1,864 $1,132 $1,213 $1,456 $1,682 $1,877 $2,071 $1,359 $1,456 $1,747 $2,019 $2,253 $2,485 *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). Commented [CVG2]: Will update for 2023 when data is released. SKHHP 2023 Housing Capital Fund Guidelines Page 5 of 11 ELIGIBLE ACTIVITIES SKHHP funds may be used for the following activities: • Acquisition, and related costs such as appraisals, financing costs, and transaction costs • Rehabilitation and new construction costs • Site development • Off-site development only when necessary to assure utility service to the project site • Mixed-income projects so long as Housing Capital Fund dollars assist units affordable at or below 60% of area median income At this time, 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. 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 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 PROJECT LOCATION All projects funded under this program must be located within the SKHHP sphere of influence (see ATTACHMENT A). 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. Commented [CVG3]: activities with Dept. of Commerce or public funders group. RCW uses different language: "Acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under SKHHP 2023 Housing Capital Fund Guidelines Page 6 of 11 PERIOD OF AFFORDABILITY SKHHP expects that projects will commit to providing long-term affordability in the form of a 50-year regulatory agreement. 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 regulatory agreement 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. OTHER AWARD TERMS/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 all Housing Capital Fund funded projects during the development stage (from the time funds are awarded until completion and occupancy of the project). The quarterly reports 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 the quarterly reports to determine if satisfactory progress is being made on the project. Additionally, SKHHP staff will inspect the project site at least once during the development/construction stage. Ongoing Monitoring After occupancy, the project sponsor or manager will submit an annual report 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 regulatory agreement. 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. All projects will also be evaluated periodically for long term sustainability. The annual reports will be required for the full duration of affordability. APPLICATION CONTENTS SKHHP uses the Combined Funders Application forms, developed jointly with other public funders including the State of Washington Department of Commerce and King County. The Combined Funders Application forms, SKHHP application addendum, and SKHHP notice of intent to apply are available on SKHHP’s website at: http://skhhp.org/home/housing-capital-fund/ Letter of consistency Commented [CVG4]: Will need to update link once available Commented [CVG5]: Will need to update SKHHP 2023 Housing Capital Fund Guidelines Page 7 of 11 Projects that are selected for funding have to 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. 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: One complete electronic application on a flash drive that includes: 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 in Word format 4. 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. Complete applications are to be submitted by 5:00 pm on September 15, 2023 to: SKHHP ATTN: Claire Vanessa Goodwin 25 W. Main Street Auburn, WA 98001 If you are delivering in person, please reach out to SKHHP staff in advance to confirm a time for application delivery. If you have any questions about application requirements, please contact Claire Vanessa Goodwin at (253) 329-7394 or email cvgoodwin@skhhp.org REVIEW PROCESS Proposals will be reviewed using the following process: SKHHP 2023 Housing Capital Fund Guidelines Page 8 of 11 Step 1. An initial screening will be conducted by SKHHP staff and staff of the jurisdiction where the project is proposed to be located to determine the completeness of each application. Staff reserves the right to deny applications that are incomplete. Step 2. SKHHP will evaluate the applications and develop a recommendation to the respective City Councils. SKHHP’s recommendation will be made by its Advisory Board and approved by its Executive Board. Step 3. SKHHP member City Councils that have contributed funding will review, approve, and provide a statement of support for the funding recommendation submitted by SKHHP, or will return the recommendation, with comments, for further investigation before a final decision is made. SKHHP member jurisdictions where the project is proposed to be located that have NOT contributed funding to the project via the SKHHP Housing Capital Fund will be asked for a letter of support prior to a final funding decision being 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 percent of area median income and Black, Indigenous, and People of Color (BIPOC) communities. • Feasibility, timeliness, and cost effectiveness (i.e., SKHHP Housing Capital Fund award per unit/square feet, total development cost per unit/square feet, reasonableness of schedule, budgets, and proforma, adequacy of resources and ongoing sustainability, and site control to ensure timely completion). • 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. Specific The following specific information areas will be evaluated for data to support the key focus areas described above. A. Development and Operating Budgets Commented [CVG6]: Do cities wish to provide a statement of support after adoption or is legislative action SKHHP 2023 Housing Capital Fund Guidelines Page 9 of 11 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. 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. 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. Applicants should demonstrate full site control. Applicants should have a “letter of consistency” from the jurisdiction where the project will be located affirming the project is consistent with the Consolidated Plan, local comprehensive plan and its housing element, and any local housing action plans. 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 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: SKHHP 2023 Housing Capital Fund Guidelines Page 10 of 11 • 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. 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 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 percent of area median income); 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 2023 Housing Capital Fund Guidelines Page 11 of 11 ATTACHMENT A: SKHHP SPHERE OF INFLUENCE Auburn | Burien | Covington | Des Moines | Federal Way | Kent | Maple Valley | Normandy Park | Renton | Tukwila | King County SOUTH KING HOUSING AND HOMELESSNESS PARTNERS 2023 Quarter 1 Progress Report (January-March). Quarter 1 was a time of learning, transition, relationship-building, and celebration at the South King Housing and Homelessness Partners (SKHHP). SKHHP welcomed its new Executive Manager to the coalition creating an opportunity for fresh beginnings and for the Executive Board to share their key priorities. SKHHP presented at eight City Councils and received authorization to move forward with Housing Capital Fund recommended spending for the first round of funding affordable housing projects in South King County. GOAL 1. Implement SKHHP Interlocal Agreement. New Executive Manager – New Executive Manager successfully onboarded. 2024 Work Plan Development – Facilitated interactive workshop on the development of the 2024 work plan at the first in-person Executive Board meeting in three years. Advisory Board – Executive Board appointed three new members to the Advisory Board. Facilitated update of the Advisory Board bylaws to increase efficiency of meetings and incorporate compensation plan based on Executive Board direction. Public Meeting Format – Successfully transitioned meetings to Zoom webinar format. GOAL 2. Build long-term sustainability for SKHHP Housing Capital Fund. Housing Capital Fund – Presented to eight City Councils and received concurrence on the Executive Board’s recommendation to support two affordable housing projects in Burien with pooled resources totaling $1,393,308: a 20-unit homeownership project for households at an average 50% AMI and an 89-unit rental project for households at all income levels up to 60% AMI with 40% set-asides for homeless households and 20% with a disability. GOAL 3. Work with partner jurisdictions to enhance and develop policies that protect existing affordable housing and accelerate access. Affordable Housing Inventory – Facilitated testing of the internal tool and compiled feedback from member jurisdictions’ staff. Incorporated changes and held two trainings for planning staff on how to use the dashboard and add/edit data. South King County Planners (SoKiHo) - Coordinated two presentations from Department of Commerce and King County to address planning needs of member jurisdictions. GOAL 4. Represent South King County and its affordable housing needs at all relevant decision tables and foster collaboration between partners. State Legislative Priorities – Transmitted 2023 legislative priorities to delegation and briefed Executive Board monthly on status of priorities. Funding Requests – Requested $5M Congressionally Directed Spending appropriation. Participation in Local Meetings and Forums – Represented SKHHP at 50+ regional meetings. GOAL 5. Further strengthen regional stakeholders’ understanding of the spectrum of affordable housing options and the range of related needs. Executive Board Briefings – Coordinated King County staff presentations to Executive Board on Analysis of Impediments to Fair Housing Choice and the Community Preference Program. WHO WE ARE Formed in 2019 by an Interlocal Agreement, we are a collaboration between 10 South King County cities and King County united under the common goal to ensure the availability of housing for all income levels of residents in South King County. We achieve this through a focus on the production and preservation of affordable housing, partnership with public and private organizations, pooling and sharing resources, and advancing housing policies. PURPOSE Create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. CONTACT Claire Vanessa Goodwin Executive Manager Website http://skhhp.org Phone (253) 329-7394 Email info@skhhp.org 2 South King Housing and Homelessness Partners Fund Status as of March 31, 2023 REVENUES OPERATING ACTUAL Q1 HOUSING CAPITAL FUND CONTRIBUTIONS TO-DATE Auburn $ - $ 305,338 Burien - 146,350 Covington - - Des Moines - 51,777 Federal Way - 243,141 Kent - 330,312 Maple Valley - - Normandy Park - 2,863 Renton - 337,320 Tukwila - 30,976 Unincorporated KC - - King County additional contribution - - Contributions/Donations - INTEREST EARNINGS 10,774 - Total $ 10,774 $ 1,448,075 EXPENDITURES OPERATING ACTUAL Q1 SKHHP Cost Reimbursement 59,415 Administration Fee 8,350 Total 67,765 Beginning Fund Balance – January 1, 2023 220,818 Estimated net change in fund balance – March 31, 2023 (56,991) Estimated Ending Fund Balance – March 31, 2023 163,827 SKHHP Cost Reimbursement Detail EXPENDITURES Wages 38,774 Benefits 11,589 Supplies 156 Professional Services 1,222 Interfund Allocations 7,674 Administrative fee 8,350 Total 67,765