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HomeMy WebLinkAbout03-04-2024 AGENDACity Council Meeting March 4, 2024 - 7:00 P M City Hall Council Chambers A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C AL L T O O RD E R I I .L AND AC K NO WL E D G M E NT We would like to acknowledge the Federally Recognized Muckleshoot I ndian Tribe, the ancestral keepers of the land we are gathered on today. We thank them for their immense contributions to our state and local history, culture, economy, and identity as Washingtonians. I I I .P UB L I C PART I C IPAT IO N 1.Public Participation T he Auburn City Council Meeting scheduled for Monday March 4, 2024 at 7:00 p.m. will be held in person and virtually. Virtual P articipation L ink: To view the meeting virtually please click the below link, or call into the meeting at the phone number listed below. The link to the Virtual Meeting is: https://www.youtube.com/user/watchauburn/live/?nomobile=1 To listen to the meeting by phone or Z oom, please call the below number or click the link: Telephone: 253 205 0468 Toll Free: 888 475 4499 Z oom: https://us06web.zoom.us/j/81238303968 A .P ledge of Allegiance I V.Roll Call V.AP P O I NT M E NT S A .S alary Commission City Council to approve the appointment of L isa Stirgus and Trevon Cooper to the S alary Commission for a four year term expiring August 31, 2027 Page 1 of 49 (RE C O M M E ND E D AC T I O N: M ove to approve the appointment of Lisa Stirgus and Trevon Cooper to the S alary Commission for a four year term expiring August 31, 2027.) V I .ANNO UNC E M E NT S, M AY O R'S P RO C L AM AT IO NS, AND P RE S E NTAT I O NS V I I .AG E ND A M O D I F IC AT I O NS V I I I .C IT IZE N I NP UT, P UB L I C HE ARI NG S AND C O RRE S P O ND E NC E A .Audience Participation This is the place on the agenda where the public is invited to speak to the City Council on any issue. 1.T he public can participate in-person or submit written comments in advance. Participants can submit written comments via mail, fax, or email. All written comments must be received prior to 5:00 p.m. on the day of the scheduled meeting and must be 350 words or less. Please mail written comments to: City of A uburn Attn: Shawn Campbell, City Clerk 25 W Main S t Auburn, WA 98001 Please fax written comments to: Attn: Shawn Campbell, City Clerk F ax number: 253-804-3116 Email written comments to: publiccomment@auburnwa.gov I f an individual requires an accommodation to allow for remote oral comment because of a difficulty attending a meeting of the governing body, the City requests notice of the need for accommodation by 5:00 p.m. on the day of the scheduled meeting. Participants can request an accommodation to be able to provide remote oral comment by contacting the City Clerk’s Office in person, by phone (253) 931-3039, or email to publiccomment@auburnwa.gov B .Correspondence - (T here is no correspondence for Council review.) I X.C O UNC I L AD HO C C O M M IT T E E RE P O RT S Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council Committees' progress on assigned tasks and may give their recommendation to the City Council, if any. 1.F inance Ad Hoc Committee (Chair B aldwin) Page 2 of 49 X .C O NS E NT AG E ND A All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A .Minutes of the February 12, and F ebruary 26, 2024 Study S ession Meetings B .Minutes of the February 20, 2024, Special and Regular City Council Meetings C.Claims Vouchers (Thomas) Claims voucher list dated F ebruary 28, 2024 which includes voucher number 475097 through 475215, in the amount of $1,282,177.79, two electronic fund transfers in the amount of $3,061.28, and five wire transfers in the amount of $1,542,391.45 D.P ayroll Voucher (T homas) P ayroll check numbers 539569 through 539571 in the amount of $628,897.86, electronic deposit transmissions in the amount of $2,603,187.53, for a grand total of $3,232,085.39 for the period covering F ebruary 15, 2024 to February 28, 2024 (RE C O M M E ND E D AC T I O N: M ove to approve the Consent Agenda.) X I .UNF INIS HE D B US I NE S S X I I .NE W B US I NE S S X I I I .RE S O L UT IO NS A .Resolution No. 5753 (K rum) A Resolution to authorize the A llocation of $137,595.00 from the City of A uburn’s Contribution to the S K HHP Housing Capital Fund to Finance A ffordable Housing in S outh King County Communities in Concurrence with the S K HHP Executive Board’s Recommendation (RE C O M M E ND E D AC T I O N: M ove to adopt Resolution No. 5753.) X I V.M AY O R AND C O UNC I L M E M B E R RE P O RT S At this time the Mayor and City Council may report on significant items associated with their appointed positions on federal, state, regional and local organizations. A .From the Council B .From the M ayor X V.AD J O URNM E NT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 3 of 49 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the February 12, and February 26, 2024 Study Session Meetings Date: February 26, 2024 Department: City Council Attachments: 02-12-2024 Minutes 02-26-2024 Minutes Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:March 4, 2024 Item Number:CA.A Page 4 of 49 City Council Study Session Muni Serv ices S FA February 12, 2024 - 5:30 P M City Hall Council Chambers MINUT E S Watch the meeting v ideo Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R Deputy Mayor Brown called the meeting to order at 5:30 p.m. in the Council Chambers of Auburn City Hall, 25 West Main Street in A uburn. I I .P UB L I C PA RT I C I PAT I O N A .P ublic P articipation The City Council Meeting was held in person and virtually. B .Roll Call Councilmembers present: Deputy Mayor L arry Brown, Hanan Amer, Kate B aldwin, Cheryl Rakes, Clinton Taylor, Tracy Taylor, and Yolanda Trout- Manuel. Mayor Nancy Backus and the following staff members present included: A cting City A ttorney Harry B oesche, A ssistant Chief of P olice Samuel B etz, Director of P ublic Works I ngrid Gaub, Director of Human Resources and Risk Management Candis Martinson, Director of Anti-Homelessness K ent Hay, Director of Finance J amie Thomas, Director of Parks, Arts and Recreation Daryl F aber, Director of Community Development J eff Tate, A cting Director of Community Development J ason Krum, Director of E quity and I nclusion Brenda Goodson-Moore, Director of Administration Dana Hinman, Right-of-Way Specialist A mber Olds, Recreation Program Coordinator Keisha Taylor, Business Systems A nalyst J onathan Barbano, and City Clerk S hawn Campbell. I I I .A G E ND A MO D I F I C AT I O NS Resolution No. 5753 was removed from the agenda and will be rescheduled to a future meeting. Page 1 of 4Page 5 of 49 I V.A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .Department Overview - Anti-Homelessness (Hay) (30 Minutes) Director Hay provided Council with a presentation on the A nti- Homelessness Department including the Departmental philosophy, Department staffing, services provided, who is served by the Department, achievements of the Department, and encampments. Council discussed staff experience, the Housing Management I nformation S ervices system, service hours and availability during the evening hours, working in both P ierce and King County, the makeup of people receiving services, children aging out of the foster system, volunteer opportunities, people returning to homelessness, and the statistics of people currently experiencing homelessness in A uburn. Council expressed their appreciation for the Department. B .Overview of the A uburn Consolidated Resource Center (Hay) (15 Minutes) Director Hay provided Council with a presentation on the A uburn Consolidated Resource Center including the Ray of Hope Day and S undown Night Shelter, the Auburn Resource Center, Community Court, and the Neighborhood Center. Council discussed the lease of the Resource Center. C.R E D I Report Out Councilmember B aldwin provided Council with a report on the Racially E quitable, Diverse, and I nclusive (R E D I ) Coalition. D.Ordinance No. 6927 (T homas) (10 Minutes) A n Ordinance establishing the L ocal S ales and Use Tax Rate for L ocal Revitalization Financing for 2024 Director T homas provided Council with an overview of Ordinance No. 6927 regarding using a portion of the S ales Tax for Revitalization F inancing in 2024. S he noted this is not a new tax, the funds are already collected by the State, the City is requesting the additional funds to be provided to the City. E .Ordinance No. 6930 (T homas) (10 Minutes) A n Ordinance amending Auburn City Code (A C C) Chapters 3.53, 3.54 and 3.62 related to the A dministration of City Taxes Director T homas provided Council with an overview of Ordinance No. 6930 regarding updates to the B usiness and Occupation Tax Code. Council discussed the Finance Director waiver process, and the square footage tax. Page 2 of 4Page 6 of 49 F.Ordinance No. 6929 (Gaub) (15 Minutes) A n Ordinance vacating City Right-of-Way located within a portion of 108th Avenue S E that lies South of L ea Hill Road within the City of A uburn S pecialist Olds provided Council with an overview of Ordinance No. 6929 including an explanation of what a Right-of-Way Vacation is and the process to attain one. Council discussed the P ublic Right-of-Way. G.Ordinance No. 6932 (Gaub) (15 Minutes) A n Ordinance transferring a City Telecommunications Franchise from Sprint Communications Company, L .P. (as a T-Mobile S ubsidiary) to Sprint Communications Company, L .P. (as a Cogent Subsidiary) S pecialist Olds provided Council with an overview of Ordinance No. 6932 including a brief overview of Franchise A greements. V.MUNI C I PA L S E RV I C E S D I S C US S I O N I T E MS A .A uburn Teen L eadership Presentation (Hinman/Faber) (15 Minutes) P resentations from Auburn Youth Council and Auburn J unior City Council Councilmember Rakes Chaired this portion of the meeting. Coordinator Taylor, A uburn Youth Council A dvisor Maddy L indsay, and A uburn Youth Councilmember K elly Murrey provided Council with a presentation of the Auburn Teen L eadership including the Auburn Youth Council, the values, benefits, service projects, fundraising, and future projects of the Auburn Youth Council. Director Hinman provided Council with the history of the J unior City Council, and the achievements of the J unior City Council. Council discussed the Teen Closet, bullying in A uburn, the National L eague of Cities Conference, Council relations with the Auburn Youth Council, and the J unior City Council. B .Municipal Court Update (Martinson) (20 Minutes) Director Martinson provided Council with an update on the Municipal Court including a history of the King County District Court S ervices, Role of Human Resources and Risk Management in the Court, the Municipal Court S tudy from 2022/2023, current developments with Court S ervices, the notice and planning requirements for termination of K ing County District Court I nterlocal A greement (I L A), the B udget, and Court operations costs. P residing J udge Rebecca Robertson, addressed questions from the Council regarding the I L A cost model, location of judges, speedy trial concerns, ability to hear protection orders, name changes, and other King Page 3 of 4Page 7 of 49 County District Court services. A ssistant J udge Corinna Harn, addressed the process and procedures for judge selection. Council discussed the reason for considering termination of the I L A, election of local judges, judges' anonymity, benefits of District Court services, project costs for a second court study, selection of judges, location of the Court, effect on Auburn population for Court services, and the public's perception of consequences to crimes. Mayor Backus stated if it is an arrestable offense, the Auburn Police will arrest and if it is prosecutable offense, the City of Auburn will prosecute. V I .A D J O UR NME NT There being no further business to come before the Council, the meeting was adjourned at 8:11 p.m. A P P R O V E D this 4th day of March, 2024. ____________________________ ____________________________ L A R RY B R O W N, D E P UT Y MAYO R Shawn Campbell, City Clerk Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 4 of 4Page 8 of 49 City Council Study Session Community Wellness Special F ocus Area February 26, 2024 - 5:30 P M City Hall Council Chambers MINUT E S Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R Deputy Mayor Brown called the meeting to order at 5:30 p.m. in the Council Chambers of Auburn City Hall, 25 West Main Street in A uburn. I I .P UB L I C PA RT I C I PAT I O N A .P ublic P articipation The City Council Meeting was held in person and virtually. B .Roll Call Councilmembers present: Deputy Mayor L arry Brown, Hanan Amer, Kate B aldwin, Cheryl Rakes, Clinton Taylor, Tracy Taylor, and Yolanda Trout- Manuel. Mayor Nancy Backus and the following staff members present included: A cting City A ttorney Harry B oesche, A ssistant Chief of P olice Samuel B etz, Director of Anti-Homelessness Kent Hay, Director of Special P rojects J eff Tate, Acting Director of Community Development J ason K rum, Director of Equity and I nclusion B renda Goodson-Moore, Curator of Collections S pecialist Hilary P ittenger, Recreation P rogram Coordinator Keisha Taylor, South K ing Housing and Homelessness P artners (S K HHP) E xecutive Manager Claire Goodwin, S K HHP P rogram Coordinator Dorsol Plants, B usiness S ystems Analyst Chrissy Malave, and Deputy City Clerk Hannah Scholl. I I I .A G E ND A MO D I F I C AT I O NS There were no modifications to the agenda. I V.A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .Office of E quity Department Overview (Goodson-Moore) (30 Minutes) Director Goodson-Moore provided Council with a presentation of the Office of E quity Department including a history of the creation of the Department, organizational structure, compliance, community engagement, Page 1 of 3Page 9 of 49 outreach programs, and the Department values. Coordinator Taylor discussed the I nclusive Auburn Employee A dvisory Team (I A AT), and the Racially Equitable Diverse & I nclusive (R E D I ) Coalition. S pecialist P ittenger presented on the E mployee D E I Training Museum Tour including goals, program evaluation results, and additional feedback from staff. Council discussed the R E D I Coalition, Museum tours, grant funding, and Civics A cademy. B .Resolution No. 5753 (K rum) (10 Minutes) A Resolution authorizing the duly appointed Administering Agency for the S outh King Housing and Homelessness P artners to execute all documents necessary to enter into agreements for the F unding of A ffordable Housing P rojects, as recommended by the S K HHP E xecutive B oard, utilizing funds contributed by the City to the S K HHP Housing Capital Fund Director Tate and Executive Manager Goodwin provided Council with an overview of Resolution No. 5753 including the establishment of South K ing Housing and Homelessness P artners (S K HHP) and the Housing Capital Fund, the 2023 Housing Capital F und, recommended projects, and proposed funding sources. Council discussed the application requirements and process, funding, projects, and homelessness. C.PA C Update (Caillier) (20 Minutes) A ssistant Chief B etz and P olice A dvisory Committee (PA C) members B ob Holt and Nora Hershberger provided Council with an update on the PA C including staffing statistics, D E I , crime statistics, crime reporting, and meeting schedules. Council discussed annual reports, staffing and budget, and budget amendments. D.Ordinance No. 6938 (Hay) (10 Minutes) A n Ordinance amending Chapter 9.50 of the A uburn City Code to create a Transparency Requirement for tents and shelters located on Non-Park City Owned L and, and providing for severability and an effective date Director Hay and Director Tate provided Council with an overview of Ordinance No. 6938. Council discussed non-compliance, encampments, functionality of tents and shelters, and safety aspects. Page 2 of 3Page 10 of 49 E .Changing L and Use L aws (K rum) (30 Minutes) Director Tate provided Council with a presentation on L and Use Regulations and the process to change L and Use L aws. Council discussed staff hours. V.A D J O UR NME NT There being no further business to come before the Council, the meeting was adjourned at 7:01 p.m. A P P R O V E D this 4th day of March, 2024. ____________________________ ____________________________ L A R RY B R O W N, D E P UT Y MAYO R Hannah S choll, Deputy City Clerk Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 3 of 3Page 11 of 49 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the February 20, 2024, Special and Regular City Council Meetings Date: February 26, 2024 Department: City Council Attachments: 02-20-2024 Special City Council Minutes 02-20-2024 Regular City Council Minutes Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:March 4, 2024 Item Number:CA.B Page 12 of 49 Special City Council Meeting February 20, 2024 - 6:00 P M City Hall Council Chambers MINUT E S I .C AL L T O O RD E R Deputy Mayor L arry Brown called the meeting to order at 6:00 p.m. in the Council Chambers of A uburn City Hall, 25 West Main S treet. I I .L AND AC K NO WL E D G E M E NT I I I .P UB L I C PART I C IPAT IO N 1.Public Participation The City Council Meeting was held in person and virtually. A .P ledge of Allegiance Deputy Mayor Brown led those in attendance in the P ledge of A llegiance. I V.RO L L C AL L Councilmembers present: Deputy Mayor L arry Brown, Hanan Amer, Kate B aldwin, Cheryl Rakes, Clinton Taylor, Tracy Taylor, and Yolanda Trout- Manuel. Mayor Nancy B ackus was excused. The following staff members present included: Acting City Attorney Harry B oesche, Chief of P olice Mark Caillier, Director of F inance J amie Thomas, Director of I nnovation and Technology David Travis, A ssistant Director of I nnovation and Technology Ashley Riggs, Director of P ublic Works I ngrid Gaub, Director of Human Resources and Risk Management Candis Martinson, A ssistant Director of Human Resources and Risk Management A aron B arber, Human Resources Manager Melissa Medisch, B usiness S ystems Analyst J onathan Barbano, and Deputy City Clerk Hannah Scholl. Outside Counsel S tephen DiJ ulio with Foster Garvey P C attended the meeting virtually. V.D IS C US S I O N IT E M S A .Department Overview - Human Resources (Martinson) (30 Minutes) Director Martinson provided Council with a presentation on the Human Resources and Risk Management Department including an overview of the department organizational structure, Collective Bargaining Agreements Page 1 of 2Page 13 of 49 (C B As), the various represented groups, employee relations including policies and procedures, flex schedules, telework schedules, investigations, and training for management. Director Martinson also discussed the hiring process, 2023 hiring statistics, benefits, 2023 achievements, and insurance/claim statistics. She also discussed the P ublic Defender and Court L iaison, case filings, Community Court and the Resource Center, and 2023 Court metrics. Council discussed flex schedules, C B A s, the hiring process, the R E D I Coalition, NeoGov Dashboard, and employee relations. B .Department Overview - I nnovation & Technology (Travis) (30 Minutes) Director Travis and A ssistant Director Riggs provided Council with a presentation on the I nnovation & Technology Department including their guiding principles, organizational structure, hiring requirements, and support volume. T hey discussed the different divisions within the Department including customer success, projects, infrastructure & cybersecurity and the main responsibilities of each division. Council discussed service desk software, cybersecurity training for employees, and City social media sites. V I .AD J O URNM E NT There being no further business to come before the Council, the meeting was adjourned at 7:06 p.m. A P P R O V E D this 4th day of March, 2024. ____________________________ ____________________________ L A R RY B R O W N, D E P UT Y MAYO R Hannah Scholl, Deputy City Clerk Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 2 of 2Page 14 of 49 City Council Meeting February 20, 2024 - 7:00 P M City Hall Council Chambers MINUT E S Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C AL L T O O RD E R Deputy Mayor L arry Brown called the meeting to order at 7:06 p.m. in the Council Chambers of A uburn City Hall, 25 West Main S treet. I I .L AND AC K NO WL E D G M E NT I I I .P UB L I C PART I C IPAT IO N 1.Public Participation The City Council Meeting was held in person and virtually. A .P ledge of Allegiance Deputy Mayor Brown led those in attendance in the P ledge of A llegiance. I V.Roll Call Councilmembers present: Deputy Mayor L arry Brown, Hanan Amer, Kate B aldwin, Cheryl Rakes, Clinton Taylor, Tracy Taylor, and Yolanda Trout- Manuel. Mayor Nancy B ackus was excused. The following staff members present included: Acting City Attorney Harry B oesche, Chief of P olice Mark Caillier, Director of F inance J amie Thomas, Director of I nnovation and Technology David Travis, Director of P ublic Works I ngrid Gaub, Business Systems A nalyst J onathan B arbano, and Deputy City Clerk Hannah Scholl. Outside Counsel S tephen DiJ ulio with F oster Garvey P C attended the meeting virtually. V.AP P O I NT M E NT S A .J unior City Council City Council to approve the appointment of Nnamdi Ometu to Auburn J unior City Council for a two year term expiring A ugust 31, 2026 Councilmember B aldwin moved and Councilmember Trout-Manuel seconded to approve the appointment of Nnamdi Ometu to the Auburn J unior City Council for a two year term expiring August 31, 2026. Page 1 of 5Page 15 of 49 MO T I O N C A R R I E D UNA NI MO US LY. 7-0 V I .ANNO UNC E M E NT S, M AY O R'S P RO C L AM AT IO NS, AND P RE S E NTAT I O NS There were no announcements, Mayor's proclamations, or presentations. V I I .AG E ND A M O D I F IC AT I O NS There were no modifications to the agenda. V I I I .C IT IZE N I NP UT, P UB L I C HE ARI NG S AND C O RRE S P O ND E NC E A .P ublic Hearings 1.Public Hearing for Right-of-Way Vacation No. VA C23- 0001 City Council to conduct a P ublic Hearing to consider Right-of-Way Vacation No. VA C23-0001 Deputy Mayor B rown opened the P ublic Hearing at 7:11 p.m. Virginia Haugen, Auburn T hey expressed their concerns regarding loss of trees in the Vacation area. Deputy Mayor B rown closed the P ublic Hearing at 7:12 p.m. B .Audience Participation This is the place on the agenda where the public is invited to speak to the City Council on any issue. 1.T he public can participate in-person or submit written comments in advance. Written Comment: Todd Hunt, Auburn They expressed their concerns regarding P alestinians in Gaza and urged Council to support a ceasefire. In-P erson Comments: Virginia Haugen, A uburn They expressed their concerns regarding the Right-of-Way Vacation No. VA C23-0001. C.Correspondence There was no correspondence for Council to review. Page 2 of 5Page 16 of 49 I X.C O UNC I L AD HO C C O M M IT T E E RE P O RT S Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council Committees' progress on assigned tasks and may give their recommendation to the City Council, if any. 1.F inance Ad Hoc Committee (Chair B aldwin) Councilmember B aldwin, Chair of the F inance Ad Hoc Committee, reported she and Councilmember A mer have reviewed the claims and payroll vouchers described on the agenda this evening and recommended their approval. X .C O NS E NT AG E ND A All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A .Minutes of the February 5, 2024, S pecial City Council Meeting B .Minutes of the February 5, 2024, Regular City Council Meeting C.Claims Vouchers (Thomas) Claims voucher list dated F ebruary 14, 2024 which includes voucher number 474965 through 475096, in the amount of $4,057,471.52 and four wire transfers in the amount of $809,422.62 D.P ayroll Voucher (T homas) P ayroll check numbers 539565 through 539568 in the amount of $81,607.62, electronic deposit transmissions in the amount of $2,744,877.81, for a grand total of $2,826,485.43 for the period covering F ebruary 1, 2024 to F ebruary 14, 2024 Councilmember T. Taylor moved and Councilmember Amer seconded to approve the consent agenda. MO T I O N C A R R I E D UNA NI MO US LY. 7-0 X I .UNF INIS HE D B US I NE S S There was no unfinished business. X I I .NE W B US I NE S S There was no new business. X I I I .O RD INANC E S A .Ordinance No. 6927 (T homas) A n Ordinance establishing the L ocal S ales and Use Tax Rate for L ocal Revitalization Financing for 2024 Page 3 of 5Page 17 of 49 Councilmember B aldwin moved and Councilmember Rakes seconded to approve Ordinance No. 6927. MO T I O N C A R R I E D UNA NI MO US LY. 7-0 B .Ordinance No. 6929 (Gaub) A n Ordinance vacating City Right-of-Way located within a portion of 108th Avenue S E that lies South of L ea Hill Road within the City of A uburn Councilmember T. Taylor moved and Councilmember Trout-Manuel seconded to approve Ordinance No. 6929. MO T I O N C A R R I E D UNA NI MO US LY. 7-0 C.Ordinance No. 6930 (T homas) A n Ordinance amending Auburn City Code (A C C) Chapters 3.53, 3.54 and 3.62 related to the administration of City taxes Councilmember B aldwin moved and Councilmember Amer seconded to approve Ordinance No. 6930. MO T I O N C A R R I E D UNA NI MO US LY. 7-0 D.Ordinance No. 6932 (Gaub) A n Ordinance transferring a City Telecommunications Franchise from Sprint Communications Company, L .P. (as a T-Mobile S ubsidiary) to Sprint Communications Company, L .P. (as a Cogent Subsidiary) Councilmember T. Taylor moved and Councilmember C.Taylor seconded to approve Ordinance No. 6932. MO T I O N C A R R I E D UNA NI MO US LY. 7-0 X I V.M AY O R AND C O UNC I L M E M B E R RE P O RT S At this time the Mayor and City Council may report on significant items associated with their appointed positions on federal, state, regional and local organizations. A .From the Council Councilmember Amer reported she attended and judged the Miss Auburn and Miss A uburn Teen Competition. Councilmember B aldwin reported she attended the P olice A dvisory Committee meeting, and the R E D I Coalition meeting. Councilmember T. Taylor reported she attended the Association of Washington Cities (AW C) Action Days conference, Daughters of the A merican Revolution - L akota Chapter meeting, Valley Regional F ire A uthority V R FA Regional meeting, and the S eattle A nimal Shelter Board meeting. Page 4 of 5Page 18 of 49 Councilmember Trout-Manuel reported she attended the A ssociation of Washington Cities (AW C) Action Days conference, Domestic Violence Task F orce meeting, National Association of L atino E lected and A ppointed Officials (NA L E O), and the Hispanic E lected L ocal Officials (HE L O) B oard meeting. B .From the M ayor No report. X V.AD J O URNM E NT There being no further business to come before the Council, the meeting was adjourned at 7:36 p.m. A P P R O V E D this 4th day of March, 2024. ____________________________ ____________________________ L A R RY B R O W N, D E P UT Y MAYO R Hannah S choll, Deputy City Clerk Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 5 of 5Page 19 of 49 AGENDA BILL APPROVAL FORM Agenda Subject: Claims Vouchers (Thomas) Date: January 31, 2024 Department: Finance Attachments: No Attachments Av ailable Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Approve Claim Vouchers. Background for Motion: Background Summary: Claims voucher list dated February 28, 2024 which includes voucher number 475097 through 475215, in the amount of $1,282,177.79, two electronic fund transfers in the amount of $3,061.28, and five wire transfers in the amount of $1,542,391.45. Rev iewed by Council Committees: Councilmember:Kate Baldwin Staff:Jamie Thomas Meeting Date:March 4, 2024 Item Number:CA.C Page 20 of 49 AGENDA BILL APPROVAL FORM Agenda Subject: Payroll Voucher (Thomas) Date: January 31, 2024 Department: Finance Attachments: No Attachments Av ailable Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Approve Payroll Vouchers. Background for Motion: Background Summary: Payroll check numbers 539569 through 539571 in the amount of $628,897.86, electronic deposit transmissions in the amount of $2,603,187.53, for a grand total of $3,232,085.39 for the period covering February 15, 2024 to February 28, 2024. Rev iewed by Council Committees: Councilmember:Kate Baldwin Staff:Jamie Thomas Meeting Date:March 4, 2024 Item Number:CA.D Page 21 of 49 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5753 (Krum) Date: February 29, 2024 Department: Community Development Attachments: Res olution 5753 2023 SKHHP Capital Fund Res olution 5753 - Exhibit A Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: City Council to adopt Resolution No. 5753. Background for Motion: Per the agreement of the 2021 ILA between SKHHP and the City of Auburn, the City of Auburn has contributed funding to the SKHHP Housing Capital Fund for purposes of supporting affordable housing projects. The allocation of those funds to specific projects requires the authorization from each contributing member jurisdiction’s legislative body. Background Summary: SKHHP was established in 2019 through an interlocal agreement (Establishing ILA) to address the affordable housing challenges facing the subregion as a coordinated, unified, and collaborative coalition. SKHHP currently has 11 member jurisdictions including the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, and Tukwila, plus King County. In 2019, RCW 82.14.540 (SHB 1406) became law allowing jurisdictions to enact a local sales and use tax for the purpose of supporting affordable housing. In 2021, eight of the nine SKHHP member cities entered into a second interlocal agreement for purposes of pooling sales tax receipts authorized by RCW 82.14.540 with SKHHP to create the Housing Capital Fund (Pooling ILA – SHB 1406). In 2022, SKHHP awarded two projects in South King County almost $1.4 million during the first annual funding round. In 2023, two of the four SKHHP member cities who are able to collect RCW 82.14.530 (HB 1590) revenues desired to pool a portion of those funds with SKHHP for the 2023 funding round of the Housing Capital Fund to add to existing SHB 1406 pooled revenue and entered into an additional interlocal agreement (Pooling ILA – HB 1590). The Establishing ILA and Pooling ILAs established the SKHHP Housing Capital Fund, set parameters for the process for the selection of awards involving pooled funds, and determined the approval process. Pursuant to the ILAs, the SKHHP Executive Board recommends allocations for funding affordable housing projects to the participating City Councils. Even though the Council has already contributed funds to the 2023 Housing Capital Fund funding round, Council approval is needed to authorize the allocation of funds to specific projects. Page 22 of 49 The SKHHP Executive Board adopts annual funding guidelines and priorities for each funding round. The SKHHP Advisory Board subsequently reviewed applications and provided a funding recommendation based on adopted priorities to the SKHHP Executive Board. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board’s recommendation and recommends funding four projects totaling $5,747,306 as described in the 2023 SKHHP Housing Capital Fund Recommendation memo dated January 17, 2024 (attached). The SKHHP Executive Board requests approval to use $137,595 of the total $152,865 contributed funds from 2023 from the City of Auburn for the following recommended projects: Project Sponsor and Project Name Location # of Units T otal Development Cost T otal SKHHP Contribution T otal City Contribution Mercy Housing NW – Kent Multicultural Village Kent 199 $134,323,456 $1,000,000 $0 LIHI – Skway Affordable Housing and Early Learning Center Skyway 55 $36,295,892 $2,800,000 $0 TWG – Pandion at Star Lake Kent 168 $87,149,708 $1,170,000 $0 Multi-Service Center – Victorian Place II Des Moines 20 $785,125 $777,306 $137,595 As outlined in the attached memo, sales and use tax receipts from your jurisdiction have already been contributed to SKHHP’s 2023 Housing Capital Fund, and with this Council approval of $137,595 those funds may be allocated to the projects recommended by the SKHHP Executive Board. Detailed descriptions of the projects, funding requests, rationale, and recommended conditions of funding for projects by the SKHHP Executive Board are included in the attached memo. Resolution 5753 was presented to City Council during the February 26, 2024 Study Session. Rev iewed by Council Committees: Councilmember:Yolanda Trout-Manuel Staff:Jason Krum Meeting Date:March 4, 2024 Item Number:RES.A Page 23 of 49 Page 24 of 49 -------------------------------- Resolution No. 5753 February 2, 2024 Page 1 of 3 RESOLUTION NO. 5753 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE DULY- APPOINTED ADMINISTERING AGENCY FOR THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO AGREEMENTS FOR THE FUNDING OF AFFORDABLE HOUSING PROJECTS, AS RECOMMENDED BY THE SKHHP EXECUTIVE BOARD, UTILIZING FUNDS CONTRIBUTED BY THE CITY TO THE SKHHP HOUSING CAPITAL FUND WHEREAS, on February 19, 2019 the City of Auburn enacted an interlocal agreement to form the South King Housing and Homelessness Partners (SKHHP) to help coordinate the efforts of South King County cities to provide affordable housing; and WHEREAS, on February 22, 2021 the City of Auburn enacted an interlocal agreement for the purposes of pooling sales tax receipts with SKHHP to administer funds through the SKHHP Housing Capital Fund; and WHEREAS, the SKHHP Executive Board has recommended that the City of Auburn participate in the funding of certain affordable housing projects and programs hereinafter described; and WHEREAS, the SKHHP Executive Board has developed recommended conditions to ensure that the City’s affordable housing funds are used for their intended purpose and that projects maintain their affordability over time; and WHEREAS, pursuant to the SKHHP formation Interlocal Agreement, each legislative body participating in funding a project or program through SKHHP’s Housing Capital Fund must authorize the application of a specific amount of the City funds contributed to the SKHHP Housing Capital Fund to a specific project or program; and Page 25 of 49 -------------------------------- Resolution No. 5753 February 2, 2024 Page 2 of 3 WHEREAS, the City Council desires to use $137,595 from funds contributed to the SKHHP Housing Capital Fund as designated below to finance the projects recommended by the SKHHP Executive Board. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. Pursuant to the Interlocal Agreement, the City Council authorizes the duly-appointed administering agency of SKHHP to execute all documents and take all necessary actions to enter into agreements on behalf of the City to fund the rehabilitation of the Multi-Service Center’s Victorian Place II and to use $137,595 from the City’s SHB 1406 contribution. Section 2. The agreements entered into pursuant to Section 1 of this Resolution shall include terms and conditions to ensure that the City’s funds are used for their intended purpose and that the projects maintain affordability over time. In determining what conditions should be included in the agreements, the duly -appointed administering agency of SKHHP shall be guided by the recommendations set forth in the SKHHP Executive Board’s Memorandum dated January 17, 2024, a copy of which is attached as Exhibit A. Page 26 of 49 -------------------------------- Resolution No. 5753 February 2, 2024 Page 3 of 3 Section 3. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: CITY OF AUBURN ____________________________ NANCY BACKUS, MAYOR ATTEST: ____________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ____________________________ Harry Boesche, Acting City Attorney Page 27 of 49 Page 1 of 22 Memorandum South King Housing and Homelessness Partners TO: City of Auburn City Council City of Kent City Council City of Burien City Council City of Normandy Park City Council City of Covington City Council City of Renton City Council City of Des Moines City Council City of Tukwila City Council City of Federal Way City Council FROM: SKHHP Executive Board DATE: January 17, 2024 RE: 2023 SKHHP Housing Capital Fund Recommendation OVERVIEW The 2023 SKHHP Housing Capital Fund was the second funding round made possible by pooling resources among SKHHP member jurisdictions. 2023 was the first year members pooled funds sourced from HB 1590, which led to quadrupling the amount of funding available over the previous year totaling $5,899,297. SKHHP received six applications for funding representing over $8.6 million in requests to develop or preserve 493 units of housing. The SKHHP Executive Board concurred with the majority of the SKHHP Advisory Board’s recommendation and recommends funding four projects totaling $5,747,306 (see Table 1). Of this total, the Executive Board recommends using $777,306 of the total $928,812 sourced from SHB 1406 revenue contributions for one preservation project; and $4,970,000 sourced from HB 1590 revenue contributions for three new construction projects. This recommendation leaves a balance of $151,506 in SHB 1406 funds and $485 in HB 1590 funds in the Housing Capital Fund that will rollover into the next funding round in 2024 (see Tables 2 and 3). A summary of the recommended projects, funding rationale, and the conditions for funding are described in this memo. Included as an attachment are the economic summaries of the recommended projects. Table 1: Recommended Projects and Recommended Funding Level Project Sponsor Location # of Units Project type Amount requested Recommended Funding – HB 1590 Recommended Funding – SHB 1406 Mercy Housing NW Kent 199 New Construction Rental $1,000,000 $1,000,000 -- LIHI Skyway 55 New Construction Rental $2,800,000 $2,800,000 -- TWG Kent 168 New Construction Rental $2,856,000 $1,170,000 -- Multi-Service Center Des Moines 20 Preservation Rental $500,000 -- $777,306 TOTAL -- 442 -- -- $4,970,000 $777,306 Page 28 of 49 Page 2 of 22 Table 2: Proposed HB 1590 Allocations by Jurisdiction for Recommended Projects Jurisdiction 1. Mercy Housing-KMV 2. LIHI-Skyway 3. TWG- Pandion Total Contributed in 2023 Unallocated Covington $ 88,126 $ 246,752 $ 103,107 $ 438,028 $ 43 Kent $ 911,874 $ 2,553,248 $ 1,066,893 $ 4,532,457 $ 442 Total $ 1,000,000 $ 2,800,000 $ 1,170,000 $ 4,970,485 $ 485 Table 3: Proposed SHB 1406 Allocations by Jurisdiction for Recommended Projects Jurisdiction 4. MSC- Victorian Place II Total Contributed in 2023 Carry-Over from 2022 Unallocated Auburn $ 137,595 $ 152,865 $ 11,548 $ 26,819 Burien $ 63,128 $ 69,897 $ 5,535 $ 12,304 Des Moines $ 30,261 $ 34,301 $ 1,858 $ 5,898 Federal Way $ 119,468 $ 133,558 $ 9,196 $ 23,286 Kent $ 188,422 $ 212,655 $ 12,493 $ 36,726 Normandy Park $ 5,942 $ 6,992 $ 108 $ 1,158 Renton $ 217,088 $ 246,643 $ 12,758 $ 42,313 Tukwila $ 15,402 $ 17,233 $ 1,171 $ 3,002 Total $ 777,306 $ 874,145 $ 54,667 $ 151,506 BACKGROUND The SKHHP Advisory Board met on October 5, 2023 and November 2, 2023 to review project applications and develop a funding recommendation for the SKHHP Executive Board’s consideration. The SKHHP Executive Board met on October 20, 2023 and November 17, 2023 to review each project and consider the recommendations of the Advisory Board. The Advisory Board adopted its recommendation on November 2, 2023 and the Executive Board took final action on November 17, 2023. PROCESS ATTACHMENTS 1. Economic summaires for recommended projects Advisory Board recommendation (November 2, 2023) Executive Board finalized recommendation (November 17, 2023 Member Councils to approve funding recommendation (February-April 2024) Page 29 of 49 Page 3 of 22 1. Mercy Housing NW - Kent Multicultural Village Funding request: $1,000,000 Executive Board recommendation: $1,000,000 (forgivable loan) Address: 23446 Pacific Highway South, Kent, WA 98032 PROJECT SUMMARY Kent Multicultural Village is a 199-unit multifamily rental project in Kent adjacent to the future Kent Des Moines Link light rail station. The light rail station is scheduled to open in 2026. The project will support households earning 30% area median income (AMI) to 80% AMI with a 20% set-aside (39 units) for households with an intellectual and/or developmental disability (I/DD). The I/DD units will benefit from on-site supportive services. A 30% set-aside (61 units) will be for families with children. The project includes studios, 1-bedrooms, 2-bedrooms, and three-bedroom units. The site is comprised of eight stories and will include a community center, a family resource center, and a licensed early learning facility with six classrooms to accommodate 96 infants and children with a focus on serving children with I/DD. The project was awarded the RFP by Sound Transit to be located on surplus land, but the terms of development are forthcoming, and the final project may be slightly different than described. 39 units are eligible for SKHHP funds sourced from HB 1590 revenue. The project is a partnership between Mercy Housing NW and Open Doors for Multicultural Families, who will provide support to the I/DD households and will relocate their headquarters to the property. Open Doors for Multicultural Families will also operate the Community Center which will include space for recreational activities and community-focused programming. Open Doors for Multicultural Families is a non-profit organization dedicated to meeting the needs of persons of color living with I/DD, especially immigrants and refugees. PROJECT SCHEDULE Activity Date Site Control 2024 – to be coordinated in Sound Transit negotiations Building Permits Issued 4/2025 Begin Construction 6/2025 Begin Lease Up 2/2027 Certificate of Occupancy Issued 6/2027 First LIHTC Year Start 6/2027 100% Lease Up 2/2028 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has a 20% set-aside for households with an I/DD. • The project serves a diverse range of incomes from 30% AMI to 80% AMI. • The project proposal is thorough, well planned, and has funding commitments already established. Page 30 of 49 Page 4 of 22 • The project is located adjacent to the future Kent Des Moines Link light rail station and has convenient access to transit, schools, medical clinics, grocery stores, and services. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit-oriented development (TOD) project, collaboration with local community-based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, advancing geographic equity of the Housing Capital Fund, and the leverage of private and public investment. • Mercy Housing NW is a well-established nonprofit developer in the region. • A third-party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor’s failure to adhere to budgets (either original or new/amended) may result in SKHHP’s withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project’s completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application’s time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project’s sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. Page 31 of 49 Page 5 of 22 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP’s Housing Capital Fund during the project’s development stage (from the time funds are awarded until the project’s completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project’s construction. 9. Ongoing Monitoring. After occupancy, Contractor 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 Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor’s submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, contingent, forgivable loan. Loan terms will account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project’s affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of 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 Agency will provide a Page 32 of 49 Page 6 of 22 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. At least 39 of the housing units shall be set-aside for households with an I/DD who earn no more than 60% AMI. Use of funds and population eligibility must be in-alignment with RCW 82.14.530. 4. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 5. Receipt of the documentation of remediation results and Department of Ecology approval of remediation efforts shall be submitted to SKHHP prior to proceeding with construction. Page 33 of 49 Page 7 of 22 2. Low Income Housing Institute (LIHI) - Skyway Affordable Housing and Early Learning Center Funding request: $2,800,000 Executive Board recommendation: $2,800,000 (forgivable loan) Address: 12712-12724 & 12742 Renton Ave. South, Seattle, WA 98178 PROJECT SUMMARY Skyway Affordable Housing and Early Learning Center is a multifamily rental project in Unincorporated King County. The project will provide 55 housing units for individuals and families, including 12 studios, 19 one-bedroom, 13 two-bedroom, and 11 three-bedroom units for households earning between 30% and 50% AMI with a 75% set-aside (42 units) for households transitioning out of homelessness. An early learning center will be located on the ground floor of the building, featuring four classrooms to accommodate up to 80 children, a parent resource room, and offices. The surrounding community will be prioritized in the early learning center activities. Additional amenities include a community room, case manager offices, and a roof deck for resident use. LIHI will provide on-site case management. This project has been previously awarded predevelopment and acquisition funds from King County. The project will serve individuals (25 units) and families (17 units) exiting homelessness earning 30% AMI (42 total units) and will support general population households earning up to 50% AMI (12 units). A common room will support all residents (1 unit). 42 units are eligible for SKHHP funds sourced from HB 1590 revenue. Childhaven, a nonprofit dedicated to strengthening families and preventing childhood trauma, plans to lease the early learning center and relocate their program to the site and will assist in applying for local funding for this portion of the project. The early learning center will be financed separately from the residential space, without using tax credits on the commercial space. PROJECT SCHEDULE Activity Date Site Control 1/30/2023 Building Permits Issued 1/23/2025 Begin Construction 6/1/2025 Begin Lease Up 9/15/2026 Certificate of Occupancy Issued 10/15/2026 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has a 75% set-aside for households transitioning out of homelessness. • The project brings quality, affordable housing to a historically underserved neighborhood. • The project will house Childhaven on-site to run an early learning center. • The project is located near schools, a library, and a future community center. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: collaboration with local community-based organizations, addressing the needs of populations Page 34 of 49 Page 8 of 22 most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, leverage of private and public investment, and promoting racial equity by prioritizing residents with a connection to the neighborhood. • The project will prioritize residents with a connection to the neighborhood. • LIHI is an established developer in the region. • A third-party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor’s failure to adhere to budgets (either original or new/amended) may result in SKHHP’s withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project’s completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application’s time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project’s sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP’s Housing Capital Fund during the project’s Page 35 of 49 Page 9 of 22 development stage (from the time funds are awarded until the project’s completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project’s construction. 9. Ongoing Monitoring. After occupancy, Contractor 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 Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor’s submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, contingent, forgivable loan. Loan terms will account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project’s affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of 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 Agency 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. Page 36 of 49 Page 10 of 22 3. At least 75% of the housing units shall be set-aside for households transitioning out of homelessness and be for an eligible population defined in RCW 82.14.530 and who earn no more than 60% AMI. 4. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 5. LIHI shall reexamine the guest policy allowing only one guest at a time to determine if it is necessary. Page 37 of 49 Page 11 of 22 3. TWG – Pandion at Star Lake Funding request: $2,856,000 Executive Board recommendation: $1,170,000 (loan) Address: 2526 S 272nd Street, Kent, WA 98059 PROJECT SUMMARY The South Building (building one of two) of Pandion at Star Lake is a multifamily rental, mixed use project consisting of 168 affordable housing units for households earning between 30% and 60% AMI in Kent. The project is located adjacent to the Kent/Star Lake Link light rail station. This transit-oriented development (TOD) project will provide a mix of studio, one, two and three-bedroom units. The project will include ground floor commercial space consisting of an early learning center for low-income children and other non-profit tenants. The property was purchased by the developer in December 2022. The project is a seven-story building with six stories of affordable housing over one story of commercial space, plus basement level parking. The 168 units includes 109 units for the general population, 30 units for families with children, 25 units for families with children that require permanent supportive services and who are transitioning out of homelessness or are at-risk of homelessness, and 4 units supporting households with an intellectual and/or developmental disability (I/DD) requiring supportive services. Pandion at Star Lake is a partnership between TWG Development and Vision House, with Vision House providing on-site supportive serves for 140 units or those receiving 4% LIHTC support. In collaboration with the City of Kent, an additional service provider will be selected to serve residents of the remaining 28 units or those receiving 9% LIHTC support. 29 units of the project are eligible for HB 1590 funds which includes 25 units for families with children transitioning out of homelessness or are at-risk of homelessness and require permanent supportive services and the four units set-aside for I/DD households. PROJECT SCHEDULE Activity Date Site Control 12/6/2022 Building Permits Issued 10/1/2025 Begin Construction 12/31/2025 Certificate of Occupancy Issued 12/31/2027 Placed in service 1/1/2028 First LIHTC Year 2028 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project is located adjacent to the future Kent/Star Lake Link light rail station and has convenient access to transit, schools, grocery stores, and services. Page 38 of 49 Page 12 of 22 • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit-oriented development (TOD) project, collaboration with local community-based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, advancing geographic equity of the Housing Capital Fund, and the leverage of private and public investment. • The project construction start date is anticipated by early 2026, six months later than other recommended projects. The sponsor may have more time to secure the additional funds than other projects prior to beginning construction. • The project has a strong partnership with Vision House who will provide on-site supportive services for 140 households. • A second building supporting 173 units for seniors earning 80% to 100% AMI is part of the overall project, but is not part of the application to public funders. The overall project supports mixed-income housing from 30% AMI-100% AMI. • The project sponsor has been in close communication with the City of Kent on project feasibility and zoning requirements since the property was purchased in December 2022. • The project sponsor has agreed to voluntarily meet the design standards for properties zoned as ‘Midway Transit Community,’ which is a higher degree of development than what is required under general mixed-use commercial standards for the City of Kent. • A third-party construction report found the proposed budget to be appropriate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor’s failure to adhere to budgets (either original or new/amended) may result in SKHHP’s withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project’s completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application’s time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.530. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the Page 39 of 49 Page 13 of 22 project, SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project’s sustainability. 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP’s Housing Capital Fund during the project’s development stage (from the time funds are awarded until the project’s completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project’s construction. 9. Ongoing Monitoring. After occupancy, Contractor 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 Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor’s submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, 1% interest, non-forgivable loan to the LIHTC partnership. The form of the funds are subject to change, but shall be agreed upon prior to contract execution. Loan terms will Page 40 of 49 Page 14 of 22 account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff. The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project’s affordability and target population. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of 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 Agency 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. At least 29 housing units of the total shall be for an eligible population defined in RCW 82.14.530 including households transitioning out of homelessness or are at-risk of homelessness or households with an I/DD and who also earn no more than 60% AMI. 4. SKHHP funds shall be used solely for new construction of the South Building, unless otherwise approved by SKHHP staff. Page 41 of 49 Page 15 of 22 4. Multi-Service Center - Victorian Place II Funding request: $500,000 Executive Board recommendation: $777,306 (grant) Address: 24517 26th Place South, Des Moines, WA 98198 PROJECT SUMMARY Victorian Place II is a multifamily, preservation 20-unit rental project in Des Moines. Since 1996, the nonprofit Multi-Service Center has owned the two adjacent buildings that comprise the project which includes five units for households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI. The 20 three bedroom/two bath affordable rental units are in active use and the target population is families with children. The original request was for $500,000 in the form of a grant. Initial estimates were based on a 2018 construction estimate. An updated cost estimate of the project received on October 25, 2023 totaled $675,918. The Advisory Board recommended fully funding the project at the revised amount, however, after the recommendation was made, it was discovered that the revised estimate did not include contingency funding. The Executive Board recommend funding the project with a 15% contingency which totals $777,306. SKHHP funds are requested to support the rehabilitation of the two buildings including: landscape improvements, staircase repairs, installation of new railings, seal coating the parking lot, upgrading external lighting, recoating tenant decks, installation of new siding, replacing gutters and downspouts, replacing windows, replacing sliding glass doors, replacing unit entry doors, and replacing baseboard heating with energy-efficient heating systems. PROJECT SCHEDULE Activity Date Site Control 1/1/2000 Building Permit Issued Mid-2024 Begin Rehabilitation and Renovation Mid-late 2024 End Rehabilitation and Renovation Mid-late 2025 FUNDING RATIONALE The Advisory Board supports the intent of this application for the following reasons: • There are limited funding sources available for preservation and rehabilitation. The focus for larger public funders has historically been on creating new units of affordable housing. Smaller preservation projects like this one are not as competitive against larger preservation projects competing for the same funds. • The property is in need of rehabilitation to support the health and safety of residents which are families with children. • Preservation of affordable housing is a high-priority for SKHHP. • 75% of the households earn no more than 40% AMI. Page 42 of 49 Page 16 of 22 • The project’s proximity to the future Kent Des Moines Link light rail station an asset (1.3 miles). • Multi-Service Center is a well-established South King County-based nonprofit that owns and operates over 650 units of affordable housing. • Multi-Service Center’s housing programs have a history of serving BIPOC community members with 72% of clients self-identifying as BIPOC. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: the project sponsor’s community connection and engagement with the populations they intend to serve, advancing racial equity, addressing the needs of populations most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, and preservation. • Of the two applications submitted by the project sponsor, this project is the higher of the two priorities as the larger housing units are more difficult for families in need to access, and the current safety concerns at the project site are more immediate. PROPOSED CONDITIONS Standard Conditions 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets, and must submit new budget(s) to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor. Contractor’s failure to adhere to budgets (either original or new/amended) may result in SKHHP’s withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project rehabilitation and at the project’s completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application’s time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the funding agreement and consistent with RCW 82.14.540. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project, SKHHP shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project’s sustainability. Page 43 of 49 Page 17 of 22 5. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 6. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 7. Quarterly Status Reports. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP’s Housing Capital Fund during the project’s development stage (from the time funds are awarded until the project’s completion). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. Contractor shall submit a final budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 8. SKHHP will inspect the project site at least once during the project’s rehabilitation. 9. Ongoing Monitoring. After occupancy, Contractor 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 Contract. In addition, for projects with loan payments, Contractor must annually report financial information to SKHHP that it will use to assess contingent loan payments and project health. These annual reports will be required for the full duration of affordability. SKHHP will also periodically evaluate all projects for long term sustainability. 10. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 11. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor’s submission to SKHHP of invoices and supporting documentation of eligible expenses. 12. A covenant is recorded ensuring affordability for at least 50 years, with unit size, number of units, and affordability distribution established prior to executing Contract. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a secured grant with no repayment. Final Contract terms shall be determined prior to release of funds and must be approved by SKHHP staff. The grant will be secured by a deed of trust recorded against the property to ensure that Contractor maintains the project’s affordability and target population. Contractor shall not be required to repay the grant so long as it maintains these project requirements. 2. Timeframe for funding commitment. The funding commitment continues for thirty-six (36) months from the date of Council approval and shall expire thereafter if all Page 44 of 49 Page 18 of 22 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 Agency 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 Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. SKHHP funds shall be used solely for the rehabilitation of the property to include, but not be limited to, the following, unless otherwise approved by SKHHP staff: a. landscape improvements b. staircase repairs c. installation of new railings d. seal coating the parking lot e. upgrading external lighting f. recoating tenant decks g. installation of new siding h. applying exterior paint i. replacing gutters and downspouts j. replacing windows k. replacing sliding glass doors l. replacing unit entry doors m. replacing baseboard heating with energy-efficient heating systems 4. SKHHP and Contractor shall agree to the specifics on what will be funded prior to executing a contract to ensure eligibility of expenses in alignment with RCW 82.14.540 and to mitigate cost-overruns. 5. Five housing units shall serve households earning up to 35% AMI, ten units for households up to 40% AMI, and five units for households up to 50% AMI for the duration of the term of affordability. 6. Should cost overruns occur that require funds above SKHHP’s contribution, sponsor will work towards filling the funding need through their capital budget process or seeking funds through other sources. Page 45 of 49 Page 19 of 22 ATTACHMENT 1: Economic Summaries of Recommended Projects Project: Mercy Housing NW – Kent Multicultural Village Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $1,000,000 Applied 4% LIHTC Equity $48,849,278 Applied King County (2022) $5,000,000 Committed GP Equity $1,000 Self-funded Permanent Loan $23,500,000 Applied State HTF $8,000,000 Awarded Deferred Fee $4,850,000 Self-funded Amazon Grant $2,000,000 Applied Amazon Loan $11,369,574 Applied Private: Non-Residential $7,841,869 Will Apply State: Non-Residential $10,735,000 Will Apply Federal: Non-Residential $2,552,000 Will Apply County: Non-Residential $3,150,000 Will Apply Debt: Non-Residential $5,474,735 Will Apply TOTAL $134,323,456 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Land acquisition $384,504 -- Construction costs $98,698,553 -- Soft costs $12,761,870 -- Development costs $8,372,636 -- Other development costs $4,002,261 -- Community facility $9,402,356 -- 4% bond issuance $701,276 -- TOTAL $134,323,456 -- TOTAL NON-RESIDENTIAL $29,753,604 -- TOTAL RESIDENTIAL (Includes common areas) $104,569,852 $525,476 Residential Cost Per Square Foot Item Amount Residential square footage 246,019 Residential development cost $104,569,852 Cost per square foot $425.05 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio 54 392 $166,619 Average 1-bedroom 40 484 $205,724 Average 2-bedroom 65 710 $301,785 Average 3-bedroom 40 982 $417,399 Common area and other residential spaces, including parking -- 85,700 $36,426,785 Page 46 of 49 Page 20 of 22 Project: LIHI – Skyway Affordable Housing and Early Learning Center Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $2,800,000 Applied State HTF $7,465,748 Will apply in fall 2024 King County 2023 $2,500,000 Awarded $2.1M 9% LIHTC $13,080,144 Will apply in fall 2024 King County 2022 (pre-development funds) $2,500,000 Received Direct Appropriations-Federal $700,000 Received Direct Appropriations-State $3,000,000 Received Wyncote Foundation $1,000,000 Received PSTAA $300,000 Received TOTAL $36,295,892 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Cost per Unit Land acquisition $2,041,000 -- Construction costs $26,761,254 -- Soft costs $4,624,073 -- Development costs $1,737,565 -- Other development costs $1,132,000 -- TOTAL $36,295,892 -- TOTAL NON-RESIDENTIAL $3,250,000 -- TOTAL RESIDENTIAL (Includes common areas) $33,045,892 $600,834 Residential Cost Per Square Foot Item Amount Residential square footage 50,608 Residential development cost $33,045,892 Cost per square foot $652.97 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average studio square footage 12 400 $261,188 Average 1-bedroom square footage 19 516 $336,932 Average 2-bedroom square footage 13 816 $532,823 Average 3-bedroom square footage 11 900 587,673 Common area and other residential spaces, including parking -- 12,121 $7,914,649 Page 47 of 49 Page 21 of 22 Project: TWG – Pandion at Star Lake Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $2,856,000 Applied LIHTC & Energy Credits $31,023,163 Applied Amazon $22,000,000 Applied Permanent Loan $15,340,000 Applied State HTF $4,218,915 Applied-Not awarded in 2023 King County $4,500,000 Applied-Not awarded in 2023 Deferred Development Fee $2,355,370 Self-funded Non-Residential Commercial $4,856,260 -- TOTAL $87,149,708 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Land acquisition $3,435,523 -- Construction costs $63,626,629 -- Soft costs $9,689,519 -- Development costs $6,902,268 -- Other Development costs $3,154,594 -- 4% Bond Issuance $341,175 -- TOTAL $87,149,708 -- TOTAL NON-RESIDENTIAL $4,856,260 -- TOTAL RESIDENTIAL (Includes common areas) $82,293,448 $489,841 Residential Cost Per Square Foot Item Amount Residential square footage 180,197 Residential development cost $82,293,448 Cost per square foot $456.68 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Footage Cost per Unit Average Studio 30 381 $173,995 Average 1-bedroom 78 615 $280,858 Average 2-bedroom 24 950 $433,846 Average 3-bedroom 36 1,095 $500,064 Common area and other residential spaces, including parking -- 59,772 $27,296,676 Page 48 of 49 Page 22 of 22 Project: Multi-Service Center - Victorian Place II Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP $777,306 Applied Multi-Service Center $7,819 Self-Funded TOTAL $785,125 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Title document recording fees $5,000 $250 Rehabilitation costs $780,125 $39,006 TOTAL $785,125 $39,256 Page 49 of 49