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HomeMy WebLinkAboutCombined 4.6.23 Meeting Agenda Page 1 of 5 SKHHP Advisory Board April 6, 2023, 6:00 – 8:00 PM Zoom Meeting Zoom Link: https://us06web.zoom.us/j/89734407973?pwd=cnlISFU4dXFJaFN5TGIwTWlxZHlNZz09 Meeting ID: 897 3440 7973 Password: 981696 Phone: 253-215-8782 Time Agenda 6:00 Welcome / Introductions / Opening 6:10 March 2, 2023, Meeting Minutes (Attachment A) 6:15 Update on Advisory Board Member Status 6:20 Black Home Initiative (BHI) Educational Briefing 6:50 Black Home Initiative (BHI) Q & A and Discussion 7:10 2024 Work Plan Discussion 7:30 Advisory Board Survey Results & Facilitation Models 7:50 Updates / announcements 8:00 Closing Page 2 of 5 SKHHP Advisory Board March 2, 2023 MINUTES I. CALL TO ORDER Dorsol Plants called the meeting to order at 6:08 pm. II. ROLL CALL/ESTABLISHMENT OF QUORUM Advisory Board members present: Andrew Calkins, Uche Okezie, Ryan Disch-Guzman, Aaron Johnson, Jennifer Hurley, Maju Qureshi, Patience Malaba, Tina Narron Other attendees: Claire Vanessa Goodwin, SKHHP; Dorsol Plants, SKHHP; Jason Gauthier, SSHAP; Abby Anderson, KC RHA; Rev Jenny Partch, United Methodist Church; Nancy Kick, Burien People Power; Colleen Brandt-Schluter, City of Burien III. FEBRUARY 2, 2023, MEETING MINUTES Motion to approve February 2, 2023 Minutes by Patience, Second by Uche. (8-0) IV. FINAL BYLAWS UPDATE & VOTE SKHHP Staff presented on some brief but essential changes to the by-laws. This included adopting language consistent with our implementation of the Advisory Board Compensation (Resolution 2022- 03) and Organizational Alternate Board Members. Motion to approve the changes to bylaws by Maju, Second by Aaron. (8-0) V. BURIEN AFFORDABLE HOUSING DEMONSTRATION PROJECT Colleen Brandt-Schluter from the City of Burien presented on the formation and purpose of the Affordable Housing Demonstration Project in Burien. While reviewing the housing action plan they realized that Burien was largely zoned for single family. From 2013 to 2020 there was a 45% increase in rent and 101% change in the median cost of a home across Burien. Feeding into the affordability issue, Burien in the past decade was building 9.3 new units for every 10 new households. The Affordable Housing Demonstration Project was started as an effort to determine what it would take to succeed in building affordable housing in Burien. It allowed for flexibility with certain development regulations in exchange for the provision of affordable housing. The goal was to evaluate the results of the project to determine what changes might be made to better support supplying housing. This information would then feed into the development of the next Comprehensive Plan. The program had six primary provisions and was written into the Comprehensive Plan for consideration but had not been implemented previously. The program had to be a pilot effort and in a trial for three years. Only five projects would be selected and would be allowed anywhere residential buildings are permitted. The units could only serve income qualifying residents for a minimum of fifty years. At least one of the projects must serve 0-30% AMI, and the average cost of the units would be affordable to households earning 50% AMI. Page 3 of 5 The program would have the Burien City Council select projects on a competitive basis. Each applicant would attend a pre-application meeting where city staff could provide feedback. Each project was required to hold at least two public meetings, and all property owners and residents within 1,000 ft of the project would be invited to attend. Projects would then be presented to the Planning Commission, which would make a recommendation to the City Council. After review by the City Council, the project would be able to move into the contract stage. Applicants had to demonstrate the ability to manage and maintain affordable housing and must be able to retain affordability for fifty years. The projects had to be compatible with the character of the community and could not be built within 1,500 feet of another project. At the time SKHHP was reviewing the Housing Capital Fund, Burien had two projects in the program: Habitat for Humanity phase 1 and a DESC project. There has been interest by other developers, and Eco-Thrive has applied to be included in the demonstration project. The DESC project was controversial and would result in 7 community meetings and over 20 pages of question and answers responding to concerns of safety were produced. While it may have been possible to site the DESC project outside of the Demonstration Project, the developer required a number of minor changes to code to create safer housing. Ultimately, an interlocal agreement was signed with KC RHA and DESC that would guarantee 30% of the occupants would come from Burien. Despite these concerns, support for the demonstration project in the community would result in the program being extended from November 2022 to December 2023. When controversy arises, it is essential for creative ideas to have supporters in the community. Some of the lessons learned would be not including the City Council approval for individual projects as it added a political component. It also added upfront risk and cost to the developer requiring responding to a political process. Greater clarity around the community engagement process would help, and following the process as laid out without deviating under pressure. Other lessons learned included removing the requirement for the applicant to demonstrate experience but state the requirements for affordability and have the applicant answer directly to how they would meet those goals; and no longer restricting projects by distance and clarify what code departures could be made outside of a demonstration project. Finally, reflecting on the affordability limits for homeownership, 50% AMI was challenging financially for the project and would likely be better at 60%. Rev. Jenny Partch and Nancy Kick presented a community perspective on the Affordable Housing Demonstration Project. Rev. Partch began by discussing how the Demonstration Project was rolled out to the community highlighting how often cities rely on traditional forms of communication such as utility mailers or public announcements. These types of advertisements are frequently missed by community members so the first time many residents heard about the program was after the project had already begun. In 2018, the Fox Cove Apartment was sold resulting in a massive displacement of about 90 units of Naturally Occurring Affordable Housing (NOAH) in the City of Burien. This brought the critical issues of a lack of affordable housing and community displacement to the attention of many of the community members. The faith community stepped in and began providing rental and moving assistance and requested the City of Burien match their donations. Well in advance of the start of the Demonstration Project, there was a series of meetings and work done to educate the community on housing needs. This work was tied into not just housing advocacy, but also providing severe weather and supporting the opening of a new unhoused family shelter. Work was also done to implement tenant protections to prevent a repeat of the mass displacements South King County has experienced for years. Page 4 of 5 While the Demonstration Project was started in November 2019, the community would become truly aware of it almost a year later in October 2020 when the first project was introduced. Aware that other projects could begin applying, the community began to pay attention to the projects which was around the time the DESC project was announced. This may tie into other things happening in the community at the time. In May of 2019, issues around an encampment located near human service agencies would result in implementation of new programs and a ban on camping. The unintended consequence was that many unhoused neighbors moved from the greenbelts and onto the sidewalks, becoming more visible to the general public. Misinformation about the DESC site, and its purpose would result in significant pushback from the community. Some members of the community came to believe it was an emergency shelter or safe injection site instead of permanent supportive housing. Questions were also raised about it’s proximity to downtown business, and that as a non-profit they would not be contributing taxes to the city. Ultimately, the DESC project would become interlinked with the Affordable Housing Project itself raising concerns about what other projects could apply resulting in the project never meeting its 5- project goal. The primary take away from the community was a greater need and emphasis on widespread outreach and communication. Once a project or program is on the defensive it becomes almost impossible to accomplish. Getting educators and meetings in the community to talk about housing issues even before discussing changes is essential. The more one-on-one conversations community members can have with their neighbors before any political action occurs will lay a strong foundation for success. Patience Malaba asked what role SKHHP could take at the subregional level to provide community education and engagement around Affordable Housing. She expressed hope that over the next several months SKHHP could begin to map out a plan for engaging our community in the work SKHHP and others are doing. VI. SKHHP 2024 WORK PLAN PROCESS Claire Vanessa Goodwin covered the process to develop the SKHHP 2024 Work Plan. The Interlocal Agreement requires that SKHHP have a work plan and budget for the following year by June 1 st. The work plan is required to be consistent with the ILA and guides the work across the year to advance the SKHHP mission to promote and preserve Affordable Housing. The purpose of bringing this before the Advisory Board in March was to illicit feedback on the 2023 Work Plan using an electronic survey. This was the same survey provided to the SKHHP Executive Board at the February meeting. SKHHP staff intends to take feedback from both surveys and develop a draft work plan to present at the April 6th Advisory Board meeting. The goal will be to have a final draft for approval by the Executive Board in May. The final step will be approval from all the SKHHP partner jurisdictions. VII. UPDATES & ANNOUNCEMENTS The Advisory Board will be transitioning it’s in-person component after a discussion with our legal team. We will begin to hold in-person public comment only at some of our Advisory Board meetings, by announcement. We will continue to allow for virtual public comment at all Advisory Board meetings. Page 5 of 5 Patience invited members of the public and Advisory Board to the HDC 35 Anniversary Celebration on Thursday, March 30th. Registration and more information can be found on the HDC website. VIII. CLOSING/ADJOURN Meeting adjourned at 7:56 pm South King Housing and Homelessness Partners Advisory Board April 6, 2023 Today’s Presenters from the BHI Network :BHI is Convened by: President / CEO Urban League of Metropolitan Seattle Managing Strategist, Rainier Beach Action Coalition How Did We Get Here? Mar. 2021 Convening To Explore Concept (Washington Roundtable and Washington Bankers Association) Mar. 2021 Summit to Launch Development of Seven Point Plan to Increase Black Homeownership July 2021 Center for Community Investment (CCI) selects Civic Commons to convene 3-year greater Seattle effort Sep. 2021 Core Team of Seven Community Leaders Has Inaugural Meeting Oct. 2021 Seven Point Plan Released at Housing WA Mar. 2022 Formal announcement of Center for Community Investment 3C Initiative named Black Home Initiative (BHI). Will Implement Seven Point Plan in South Seattle, South King County, and North Pierce County Increasing Black Homeownership in the Puget Sound Region Initial Plan 2021 by Seven Focus Areas BHI Implements the Seven Point Plan in South Seattle, South King County & North Pierce County 29 Housing (un)Affordability Disproportionately Harms People of Color BIPOC1 homeownership rates lower at every income level WA homeownership rates by race &income 53% 47% White 68% American Indian & Alaskan Native Hispanic or Latinx Black or African American 35% WA homeownership rates much lower for people of color WA homeownership rates by race (%change since '10) +2% Asian 63%+3% +6% +5% +2% 48% 64% 31%31% 16% 46% 52% 48%49% 61%66% 74%84% 64%73%69% <80%AMI 81-100%101-150%>150%AMI AMI AMI Non-Hispanic Black or African American Hispanic or Latinx Non-Hispanic Asian Non-Hispanic White 14%7% 20% 42% White Asian Hispanic Black or or Latinx African American WA All Races: 15.80% Disparities in net worth:42%Black, 20%Hispanic HHs have 0 net worth %of WA households with zero net worth by race These disparities create a negative,reinforcing cycle2 1. Black,Indigenous,and people of color 2.See,for example,"Racial Wealth Divide In Seattle"by Prosperity Now;or "The Racial Wealth Gap Is the Housing Gap"by WA Office of the Lieutenant Governor Denny Heck (2021) Source:U.S.Census Bureau ACS 1-year,2019;BCG analysis Boston Consulting Group “The Conspicuous Crisis” January 2023 What is the Black Home Initiative (BHI)? The Black Home Initiative is part of Connecting Capital and Community(3C), a national project of the Center for Community Investment (CCI) that targets racial inequities at the core of the housing ecosystem. With initial seed funding from JPMorgan Chase, this multi-sector effort will apply CCI’s capital absorption framework in five U.S. cities, including the greater Seattle area. Civic Commons is the convening organization weaving together a cross sector impact network to achieve the BHI shared priority. The BHI Network is Implementing the “CCI Capital Absorption Framework” A shared priority is our North Star that guides collaborative work on community investment. A pipeline is a set of deals and projects that help achieve a community’s shared priority. For BHI this is both a supply and demand pipeline effort. The enabling environment is the setting in which community investment takes place. It includes everything that makes it easier or harder to identify a shared priority and develop and fund projects to make that priority a reality. ENABLING ENVIRONMENT: SHARED PRIORITY: PIPELINE: What are BHI’s Shared Priority and Line of Sight? Provisional Result The opportunity to own a home,and the potential benefits of that asset,are available to low-and moderate-income Black homeowners who desire it. Key Performance Indicator Number of new Black homeowners who have appropriately affordable mortgages and safe,durable,healthy homes. Ultimate Desired Impact The reduction of racial inequity and an increase in intergenerational Black household wealth. BHI Shared Priority and Line of Sight (cont.) December 2032: What we hope to celebrate (outcomes) •3,000 new Black LMI homeowners (with homes, mortgages, and locations as noted above). •Sustained and meaningful progress along a trajectory that leads to the elimination of: o disproportionality in homeownership rate between Black and white households o systemic barriers, including lending underwriting and real estate practices, that have impeded Black household access to homeownership. December 2027: What we hope to celebrate (outcomes) •1,500 new first time Black LMI homeowners (note, independent of sustaining existing buyers) •All systems that have impeded access to Black homeownership have been clearly defined and some have been transformed. July 2024: Progress made towards those outcomes •We are a strongly aligned impact network delivering on the shared priority and outcomes. •New products--including loans, housing, programs, and resources—are underway. •At least one policy win. •Strategies to sustain existing buyers are implemented. In place : Progress is being made towards those outcomes •Strong Core Team and group of advisors (Full Team)are in place,and they: o demonstrate trusting relationships with each other, o are connected to the community,and o have honed the project focus,mapped and aligned existing actions,and affirmed the community’s shared priorities and developed a workplan. •A policy framework is mapped and enables the shared vision. Core Team Members NAME ROLE DEMOGRAPHICS PERSON’S STAKE IN THIS ISSUE CONCRETE CONTRIBUTIONS Nicole Bascomb Chapter President of Western Washington Realists (NAREB) Female, Black/African American Passionate leader in Black Community Trusted broker, connected thought leader, brings Realist engagement Andrea Caupain CEO of Byrd Barr Place, a community action agency Female, Black/African American Provide thought leadership to advance the ideas from commitment to action Evangelize the work to stakeholders Gregory Davis Managing Strategist, Rainier Beach Action Male, Black/African American Passionate leader in Black community Trusted broker, connected thought leader Gordon McHenry CEO, United Way King Co.Male, Black/African American Developing a strategy to significantly increase Black wealth with support and commitment from philanthropic, business and public sectors Using relationships, reputation and influence (both personal and United Way’s) to ensure needed support and successful outcomes Michelle Merriweather CEO, Urban League of Metropolitan Seattle Female, Black/African American Passionate leader in Black community Trusted broker, connected thought leader Darryl Smith Executive Director of HomeSight, a local NeighborWorks organization Male, Black/African American Passionate leader in Black community Trusted broker, connected thought leader Anna Boone Manager of Government Relations, Zillow Female, White/Caucasian Personal and organizational commitment to closing the racial wealth gap through homeownership opportunities Well-connected within business and political circles; able to leverage robust housing research and data to support the initiative Felicia Medlen Manager, Housing Division City of Tacoma Female, Black/African American Passionate leader in Black Community in Tacoma Public sector, connected thought leader *D a r r y l S m i t h *M i c h e l l e Me r r i w e a t h e r De n i s e R o d r i g u e z *Andrea Caupain *Gregory Davis Rita Green Increase access to homeownership for low-to-moderate income (LMI) Black households #* F e l i c i a Me d l e n # T ’ w i n a N o b l e s Er i k a Ma l o n e *Gordon McHenry Kris Hermanns Vicki Foege Amy Liu #Seth Kirby Core & Full Teams Pu b l i c S e c t o r Community Se r v i c e P r o v i d e r s Philanthropy Cherryl Jackson Williams Kr i s t e n P u l a *denotes Core Team # denote Tacoma Cohort # S u e E l k i n #Tina LaBouve La s t M o d i f i e d 9 / 4 / 2 0 1 8 9 : 0 4 A M E a s t e r n S t a n d a r d T i m e Pr i n t e d How can we significantly scale the number of Black homeowners in order to achieve our shared priority? Increase Supply of Affordable Homes to Purchase Increase Number of New Mortgage- Ready Black Households and Sustain Existing Increase Community Engagement and Aligned Actions Increase Funding Increase Buildable Land Inventory Improve Outreach and Support Improve Lending Practices and Products Align Philanthropy Increase & Incentivize Collaboration Product & Sales Types, Land Trusts, Co-ops, Condos etc. Joint Ventures b/w For-Profit and Nonprofit Developers Modify Underwriting Requirements & Loan Officers Community-based Outreach Initiatives Elevate a Data Driven Shared Priority and Goal Adopt & Advocate for a Homeownership Policy Framework Catalog and Elevate Promising Practices in Collaboration Weave Together Network Engagement The Comprehensive Focus: BHI’s Issue Tree Increase Black-Led Developers and CBOs Predevelopment Grants and Loans Underutilized Public and Faith Entity Owned Debt-Remediation. IDAs, and Down-Payment Assistance Change Funding Systems and Requirements Construction Lines of Credit, New Market Tax Credits etc. Launch and Fund Capacity-Building Initiatives Diversity Production Future High-Capacity Transit Sites Coordinated Intake, Assessment and Support Align Policies Pipeline: Supply and Demand Enabling Environment: Aligned capacity and actions You might be thinking, “This is nice—but what’s different about this initiative compared to other past attempts?” A network—led by a network-weaver “weaving on the daily”—has the potential to dismantle systems and enact policy better than any existing methodology. -BHI Core Team member Gregory Davis Managing Strategist, Rainier Beach Action Coalition We will accomplish the Shared Priority as a BHI Impact Network, with all participants serving as Network Weavers Less like this… …and more like this. Homeownership is not an event… …it’s a journey. Homeownership: Steps to Success Income Debt Curious Suitability Move In Readiness Readiness Matters… Credit Purchase Pre-Purchase Support Apply for Credit Apply for Credit ...as does the timing of loan underwriting. Capturing Interested Households On the Journey… …we walk alongside each prospective homeowner on their unique homeownership journey and say, if necessary, “not now” rather than “no” or “never.” Areas of Opportunity… •Land •Policies, Regulations and Incentives •Funding •Being a BHI Network “Partner” (City of Burien 1st Municipal Partner) •? •? How can we together “Meet the Moment”… How Can We Ensure that We “Meet the Moment”… ...by changing the systems that are long overdue to be changed, and by providing ample resources to overcome existing disparities! Reactions and Questions 2024 Draft Work Plan and Budget Claire V. Goodwin, SKHHP Executive Manager April 21, 2023 2024 Work Plan Development Process Executive & Advisory Board Surveys & Workshop Draft review by Staff Work Group & Advisory Board Review at April Executive Board meeting Board Members work with Councils – Feedback due May 9 Final draft for adoption at May 19 Executive Board meeting Council adoption 2 You are here! Homework for Board Members o Work with your Councils to solicit any feedback on work plan and budget o Send Claire feedback by Tuesday, May 9 o Decide if you would like a presentation at your City Council or if you prefer consent agenda without a presentation o Let your staff work group member know your preference by Wednesday, April 26 3 2024 Work Plan Overview •Draft based on Executive Board priorities •Majority of content carried over from previous years •Four goals: 1.Fund the Expansion and Preservation of Affordable Housing 2.Develop Policies to Expand and Preserve Affordable Housing 3.Serve as Advocate for South King County 4.Manage Operations and Administration •Actions and indicators included with each goal •Added priority level symbology and organized higher priority at top of goals, lower priority towards bottom of goals 4 Items New to the Work Plan •New Items: •Action 12: Build relationships with developers to learn from their perspective the ways to encourage housing development, especially affordable housing. •Action 24: Advance work on SKHHP Foundation efforts to establish logistics, administration, and pursue federal nonprofit status. •Items SKHHP Does, But Not Previously on Work Plan: •Action 2:Pool resources from member jurisdictions for the Housing Capital Fund, including SHB 1406 and HB 1590 funds. •Action 6:Adopt annual guidelines for Housing Capital Fund investment priorities. •Action 16: Produce public-facing communications content that highlights South King County through social media and monthly newsletters. •Action 21: Organize and host monthly Executive and Advisory Board public meetings. •Action 22: Manage the Affordable Housing Inventory contract. •Action 23: Maintain and update the SKHHP website. 5 Items Not Carried Over from 2023 Work Plan •Develop a plan to build capacity of SKHHP. •Develop a program to assist member cities with administering local housing incentive programs, including density bonus, multifamily tax exemption (MFTE), impact fee waivers, and other programs. •Build relationships with state and federal legislators through organizing work sessions, and providing progress updates. •Actively vet potential projects and lead funding policy and prioritization discussions with SKHHP Executive Board. •Support efforts to advance 5-year action plan identified by the Regional Affordable Housing Task Force. •Annual updates to non-SKHHP South King County cities and relevant stakeholder groups. •Work with HDC, affordable housing developers, and city and county planner to reimagine the South King County Joint Planners and Developers work group. 6 Review 2024 Draft Work Plan 7 2024 Budget Overview •No new expenditures proposed •5% increase over previous year in expenses impacted by inflation •Salaries, professional services, travel •New expenses categories •Travel as standalone category and added Other professional services/Misc. •Member contributions based on population tiers •Executive Board adopted policy in July 2021 •15% increase in member contributions each year through 2026 •Continuing to spend down cost savings from first two years to balance additional contribution increases 8 Contributions by Population and Year Population tier 2021 Contribution 2022 Contribution 2023 Contribution 2024 Contribution 2025 Contribution 2026 Contribution <10,000 $4,000 10,001 – 35,000 $7,500 35,001 – 65,000 $15,000 65,000 – 100,000 $26,000 100,000+$34,000 Population by City and Year SKHHP Member Jurisdictions Population (OFM 2018 estimate) Population (OFM 2021 estimate) Population (OFM 2022 estimate) Population (OFM 2023 estimate) Auburn* 80,615 Total: 83,950 KC: 73,901 Total: 88,750 KC: 78,690 Data not published until June 30, 2023 Burien 51,850 53,290 52,490 Covington 20,080 20,890 21,200 Des Moines 31,340 32,820 33,160 Federal Way 97,440 99,590 101,800 Kent 128,900 132,400 137,900 Maple Valley 28,920 Normandy Park 6,700 6,740 6,790 Renton 104,100 106,500 107,500 Tukwila 19,800 21,970 22,620 King County (unincorporated)111,000*248,160 *Represents unincorporated South King County Projected Budget 2023-2026 11 2023 2024 2025 Estimated beginning fund balance Auburn Burien Covington Des Moines Federal Way Kent Maple Valley Normandy Park Renton Tukwila King County* Additional King County* Interest earnings Office space (in-kind donation) TOTAL REVENUES $ 321,084 $ 358,299 $ 396,576 $ 443,013 Spend down balance TOTAL EXPENSES $ 397,800 $ 419,158 $ 433,318 Review 2024 Draft Budget 12 Thank you Claire V. Goodwin, SKHHP Executive Manager cvgoodwin@skhhp.org April 21, 2023 Community Engagement Ideas SKHHP Advisory Board Affordable Housing Week May 7th-13th Middle Housing Awareness/Education Event Affordable Housing Preservation Strategies in SKC Collaborative Developers Forum SKC Community Housing Summit