05-20-2022 SKHHP PacketSKHHP Executive Board
May 20, 2022, 1:00 — 3:00 PM
Virtual — Zoom Meeting
Video conference: https://zoom.us/j/99857398028?pwd=eXFiMmJpQmlabDZmMmRQbHNOYS8
OR by phone: 253-215-8782
Meeting ID: 998 5739 8028 Password: 085570
I. CALL TO ORDER 1:00
ROLL CALL
INTRODUCTIONS OF ADVISORY BOARD MEMBERS AND
OTHER ATTENDEES
II. REVIEW AGENDA/AGENDA MODIFICATIONS
III. APPROVAL OF APRIL 15, 2022 MINUTES Page 3
(ATTACHMENT A)
Motion is to approve the April 15, 2022 SKHHP Executive
Board meeting minutes
IV. OLD BUSINESS
a. ELECTION OF CHAIR AND CO-CHAIR POSITIONS 1:10 — 1:15
Purpose: Elect Chair and Vice -Chair officer positions to serve for
the remainder of 2022.
Background: Chair and Vice -Chair positions are elected annually.
The Chair presides over all meetings of the Executive Board. The
Vice -Chair shall in the absence of the Chair, perform all duties
incumbent upon the chair. Chair and Vice -Chair positions are
elected from the appointed members of the Board to serve an
annual term. Per SKHHP Resolution 2022-01 the elected officers
Prior to the meeting nominations were received as follows:
• Nancy Backus for Chair
• Dana Ralph for Vice -Chair
Opportunity for any other nominations for Chair and Vice -Chair
positions.
Motion is to approve the nomination for Chair.
Motion is to approve the nomination for Vice -Chair.
b. SKHHP HOUSING CAPITAL FUND GUIDELINES Page 6 1:15 — 1:40
(ATTACHMENT B)
Purpose: Final review, discussion, and adoption of SKHHP
Housing Capital Fund guidelines, including a recommendation from
the SKHHP Advisory Board on 2022 funding priorities.
Page 1 of 21
Background: During 2021 the Executive Board developed draft
funding guidelines in preparation for holding the first application
round for SKHHP Housing Capital Funds in 2022. With the
establishment of the SKHHP Advisory Board, they provided
recommendations for funding priorities.
Attachment B is the culmination of Executive Board development of
funding guidelines and Advisory Board recommended priorities that
were reviewed at the April 15 Executive Board meeting.
Staff presentation: Angela San Filippo
Motion is to approve SKHHP Housing Capital Fund Guidelines
V. NEW BUSINESS
VI
a. 2023 SKHHP WORK PLAN AND BUDGET
(ATTACHMENT C)
Purpose: Initial review and discussion of 2023 work plan and
budget.
Background: The SKHHP Interlocal Agreement requires adoption
of an annual work plan and budget. The staff work group and
Advisory Board have provided initial review of the work plan. The
intention is to get preliminary feedback from the Executive Board,
followed by review and input by each member jurisdiction, adoption
by the Executive Board, and approval by each member jurisdiction
by the end of the year.
Staff presentation: Angela San Filippo
For discussion and gathering feedback only, no action is
being proposed.
EDUCATIONAL ITEM
a. FAIR HOUSING CENTER OF WASHINGTON
Page 18 1:40 — 2:10
The Fair Housing Center exists to prevent and eliminate illegal housing
discrimination, ensure equal housing opportunity, and promote inclusive
communities throughout Washington.
For informational and discussion purposes only, no action is proposed.
VII. UPDATES/ANNOUNCEMENTS (as time allows)
Vill. ADJOURN
2:10 - 2:55
3:00
Page 2 of 21
ATTACHMENT A
SKEE:
I. CALL TO ORDER
Nancy Backus called the virtual meeting to order at 1:02 PM.
a. ROLL CALL/ESTABLISHMENT OF QUORUM
SKHHP Executive Meeting
April 15, 2022
MINUTES
Executive Board members present: Chair Nancy Backus, City of Auburn; Collen Brandt -Schluter,
City of Burien; Kristina Soltys, Alternate City of Covington; Traci Buxton, City of Des Moines; Sarah
Bridgeford, Alternate City of Federal Way; Dana Ralph, City of Kent; Sean Kelly, City of Maple Valley;
Eric Zimmerman, City of Normandy Park; Ryan Mclrvin, City of Renton; Sunaree Marshall, King
County
Other attendees: Angela San Filippo, SKHHP; Trish Abbate, SKHHP; Jason Gauthier, South Sound
Housing and Affordability Partners; McCaela Daffern, King County; JC Harris, City of Des Moines;
Dafne Hernandez, City of Covington; Laurel Humphreys, City of Tukwila; Nigel Herbig, King County
Regional Homelessness Authority; Earnest Thompson, City of Normandy Park; Joy Scott, City of
Auburn; Hannah Bahnmiller, City of Renton; Dorsol Plants, SKHHP Advisory Board
Member/FUSION; Marty Kooistra, Civic Commons; Mark Santos -Johnson, City of Renton; Amy
Arrington, City of Normandy Park; Merina Hanson, City of Kent; Nicole Nordholm, City of Des Moines;
Paul Tan, King County Regional Homelessness Authority; Gregg Colburn, University of Washington
II. REVIEW AGENDA/AGENDA MODIFICATIONS
No agenda modifications.
III. APPROVAL OF MARCH 18, 2022 MINUTES
Dana Ralph moved to approve the March 18, 2022 minutes as presented; Traci Buxton seconded the
motion. Motion passed unanimously (10-0).
IV. EDUCATIONAL ITEM
Gregg Colburn is the co-author alongside Clayton Page Aldern of the just released book
Homelessness is a Housing Problem, which highlights how housing market conditions such as cost
and availability of rental housing is a bigger driver of homelessness compared to conventional belief
that mental illness, substance use and poverty are the main causes. He is also Assistant Professor of
Real Estate at the University of Washington College of Built Environments and has published
research on housing and homelessness and has both an MSW and MBA degree from the University
of Minnesota. Prior to academia Greg worked as an investment banker and private equity
professional. Gregg is a member of the Bill & Melinda Gates Family Homelessness Evaluation
Committee, and co-chair of the University of Washington's homelessness research initiative.
Gregg introduced common ideas about the causes of homelessness. According to the 2019 Point -in -
Time homelessness census in Seattle/King County, survey results suggest the leading causes of
homelessness are in order: job loss, alcohol or drug use, eviction, divorce/separation, inability to pay
rent, and argument with family/friend. The book set out to decipher if these conventional explanations
of homelessness are root causes or precipitating events. The idea is that focusing on higher level
vulnerabilities will help us better understand the root causes. While research demonstrates that drug
use, mental illness, and poverty increase the risk of homelessness at the individual level, the majority
of people who are living in homelessness are not experiencing addiction issues. So, why do these
conditions produce homelessness in some geographic areas (Seattle?) and not others? Their thesis
is that tight housing markets accentuate vulnerabilities.
ATTACHMENT A
They investigated individual level possible explanations including such things as poverty, mental
illness, illicit and legal drug use, and climate. There is no doubt that poverty leads to homelessness
but places with high rates of poverty have lower rates of homelessness (St. Louis, Detroit, Cleveland)
while affluent cities demonstrate higher rates of homelessness (Seattle, San Francisco, New York)..
There is no correlation between places with more mental illness and higher homelessness as people
with mental illnesses live everywhere but consequences from the vulnerability of mental illness may
be more acute in places such as San Francisco, Seattle, New York. Illicit drug use and homelessness
demonstrated no relationship. There is more illicit drug use in some places than others but it is not
correlated with higher rates of homelessness. The same holds true for legal substance use.
Places with warmer winter temperatures did not demonstrate a relationship with higher rates of
homelessness. While there are warm places with high rates homelessness (San Diego, Los Angeles)
there are also many warm places that do not exhibit high rates of homelessness (Florida) and
conversely, very cold places (Boston, NY) with high rates of homelessness. More generous levels of
social services and benefits was also not correlated with higher rates of homelessness. Low-income
migration also did not demonstrate a statistical correlation with rates of homelessness. The theory
that democratic politics are to blame does not hold up against the existence of cities with democratic
strongholds and low rates of homelessness such as Chicago and Cleveland.
When looking at the housing market, there is a correlation between increasing rates of homelessness
and increasing rents and decreasing vacancy rates. Increasing population on its own is not correlated
with increasing rates of homelessness as demonstrated by the existence of cities growing as fast as
Seattle but without increasing rates of homelessness. However, increasing population combined with
low elasticity in housing supply creates a dangerous environment.
Solutions therefore require 1) capital investments to construct housing and 2) operating investments
to fund housing support, maintenance and services. Where housing is difficult to construct, changes
to regulations and land use policy are additionally needed. Relying solely on the private market will
not end the homelessness crisis. While it is estimated that $11 billion is required to adequately fund
the amount of lower income housing needed, for comparison, the Puget Sound invested $54 billion in
transit over the past 25 years so there needs to be a paradigm shift where housing is seen as
infrastructure vs. private investment. Continuing to diagnose homelessness as an individual problem
will undermine efforts to prevent and solve it. The country requires a structural understanding of and
structural response to homelessness.
Discussion occurred around environmental requirements and building housing. Denser housing is
suggested as the answer to both issues. A question was raised about substance use and
homelessness. It is difficult to know if substance use occurred in individuals before or after their
experience of homelessness. Additionally, some of the states with the greatest opioid problems (West
Virginia and Arkansas) do not have high rates of homelessness. The Puget Sound region faces a
challenge with the housing first solution to substance use since there is fundamentally not enough
housing to adequately utilize that solution. Discussion occurred around the question of employment
and relationship to homelessness. Colburn referred to the evidence which strongly demonstrates that
housing first leads to much greater success than efforts to support individuals to secure employment
while living in homelessness.
V. OLD BUSINESS
a. Executive Board Group Agreements
San Filippo introduced the idea of group agreements as serving the purpose of supporting what the
group needs to engage and participate fully and provide a foundation of safety, respect and trust as
difficult topics are tackled. San Filippo reviewed a draft and asked for feedback.
Specific support was raised for the following items:
Page 14
ATTACHMENT A
• Be curious and respectful
• Have grace with yourself and others
• Have courage to interject if something is going amiss or being left unsaid
Suggested additions include: we are here to collectively solve a problem and we can make a
difference if we work together, and no surprises — try not to catch people off guard
Discussion occurred around members signing the agreements as part of an onboarding process,
agreement from the group to ask for each Board member to sign the agreements.
Ryan Mclrvin moved to approve the Executive Board Group Agreements, Colleen Brandt -Schluter
seconded the motion. Motion passed unanimously (10-0).
b. Executive Board Rules of Procedure
The Executive Board Rules of Procedure currently require that one elected officer must be from a
council manager form of government. The intention behind the requirement was to provide leadership
opportunities that support the diverse makeup of SKHHP's jurisdictions. Upon execution, the
requirement proved to be a challenge in implementation and did not account for differences in board
member capacity and changes in makeup of the representatives.
San Filippo presented the revision of the Election of Officers clause in the Rules of Procedure, which
now reads:
The officers of the Board shall consist of a Chair and Vice Chair elected from the appointed members
of the Board by a majority vote. Other officer positions may be approved and appointed by a majority
vote by the Executive Board. SKHHP consists of regional and local jurisdictions across South King
County that range in size and type of government structure. The SKHHP Executive Board values and
strongly encourages diverse representation in elected officer positions that reflect that diversity.
Ralph moved to approve the amending of the Executive Board Rules of Procedure, Mclrvin seconded
the motion. Motion passed unanimously (10-0).
VI. NEW BUSINESS
a. 2022 SKHHP Housing Capital Fund Priorities
San Filippo presented draft Housing Capital Fund priorities that the SKHHP Advisory Board has been
developing for the 2022 funding round. Before bringing forward a formal recommendation, staff is
seeking input from the Executive Board. Next steps include working with the staff work group and
Advisory Board to review and revise the priorities with a formal recommendation coming before the
Executive Board at the May meeting. As a reminder, these priorities are not requirements and instead
guidelines that will be used to evaluate applications.
Jurisdictions have the opportunity to review the priorities with their councils and provide feedback
directly for consideration.
VII. UPDATES/ANNOUNCEMENTS
Vill. ADJOURN
Backus adjourned the meeting at 2.56 pm.
Page 15
ATTACHMENT B
SKON 1 00
SOUTH KING HOUSING AND HOMELESSNESS PARTNERS
Housing Capital Fund —funding guidelines
INTRODUCTION AND PURPOSE
The Cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Normandy Park, Renton, and
Tukwila, and King County have entered into an interlocal agreement to cooperatively plan for and
provide affordable housing in south King County through an organization called SKHHP (South King
Housing and Homelessness Partners). To accomplish this, SKHHP member cities provide funding to
affordable housing projects through the SKHHP Housing Capital Fund.
SKHHP welcomes all groups or agencies considering preserving or adding to inventory of affordable
housing available to low-income households. We encourage interested parties to contact SKHHP as
early in the process as possible. SKHHP welcomes all inquiries, and our goal is to help project
proponents connect to partners and leverage funding to move forward in as coordinated an approach
as possible. The general purpose of the Housing Capital Fund is to create and preserve affordable
housing that meets the needs of low-income households earning up to 60% of area median income.
AVAILABLE FUNDING
Approximately $1.5 in total funding is anticipated to be available for the 2022 application round. This
total is comprised of local funds from sales tax funds authorized by Substitute House Bill (SHB) 1406.
FUNDING PRIORITIES
SKHHP has established the following priorities for Housing Capital Funds in 2022:
Projects that ensure housing proactively meets the needs of and is available to the following
populations while complying with relevant federal, state, and local fair housing laws:
• Black, Indigenous, and people of color
historically denied housing
• Caregivers
• Communities at risk of displacement
• Communities disproportionately
experiencing cost burden
• LG BTQ+
• People disproportionately impacted by
COVID-19
• People exiting behavioral health
treatment
• People exiting the criminal justice
system
• People experiencing domestic violence
or survivors of domestic violence
• People with disabilities
• Seniors
• Students
• Undocumented immigrants
• Veterans
• Young adults and youth aging out of
foster care
Page 6 of 21
ATTACHMENT B
Collaboration. Project sponsors working in collaboration/partnership with local community -based
organizations are a high priority.
Community Connections and Engagement. Project sponsors that demonstrate connections and direct
experience with populations they are proposing to serve, and proven success in community
engagement and involvement in decision -making are a high priority.
Extremely Low Income and Supportive Housing. Proposals that provide rental housing for individuals
and families earning 0-30% AMI and proposals that incorporate supportive services are a high priority.
Geographic Equity. The SKHHP Housing Capital Fund has a long term objective to produce housing
across SKHHP member jurisdictions through the creation of a broad distribution in the location of all
types of affordable housing overtime to maximize choice for individuals and families seeking
affordable homes within SKHHP's geographic purview.
Homeownership. Projects that are able to provide homeownership opportunities for individuals and
families earning up to 60% AMI.
Leverage of Private and Public Investment. SKHHP encourages project sponsors to pursue private and
public investment that provides maximum leverage of local resources. Projects that already have
funding secured and/or leverage private and public investment are a high priority.
Preservation. Projects that preserve housing at risk of conversion to market -rate housing are a high
priority. This includes housing units with expiring affordability requirements or preservation of
residential rental properties that are affordable to households earning 60% AMI but do not have
affordability requirements.
Racial Equity. SKHHP encourages proposals that advance racial equity through strategies that
intentionally dismantle the racially disparate impacts of our current housing system. Strategies may
include, but are not limited to: preserving communities at risk of displacement; creating project
partnerships that give voice and ownership to communities of color; affirmatively marketing new
housing opportunities to populations disproportionately experiencing cost burden and housing
insecurity; and addressing historic inequities in access to homeownership.
Transit -Oriented Development. Projects located within % mile of an existing or planned high capacity
transit station, defined as fixed rail (light rail or Sounder train), bus rapid transit, or other high
frequency bus stop are a high priority. Transit -oriented development is designed to support dense,
walkable, communities that increase access to employment, services, and other opportunities.
Page 7 of 21
ATTACHMENT B
SCHEDULE
The following schedule is anticipated for the 2022 Housing Capital Fund application round:
May 2022 Provide intent to apply statement (optional)
June 2022 Application package available
By July 30, 2022 Pre -application meeting (mandatory)
September 2022 Applications due
December 2022 SKHHP makes recommendation to cities
January —March 2023 SKHHP recommendation reviewed by City Councils
NOTICE OF INTENT TO APPLY
Proponents of affordable housing projects within south King County who are planning a development
and are interested in benefitting from coordinated funding are asked to submit a notice of intent to
apply. Notice of intent forms are optional but strongly encouraged and are due by )2022,
please submit your intent to apply information as early as possible. A pre -application meeting is
required in order to be eligible to apply to the funding round.
[INSERT INFO FOR INTENT TO APPLY FORM]
PRE -APPLICATION MEETING
Applicants are required to schedule a Pre -Application Meeting to identify and discuss potential issues
prior to submitting an application for funding. First-time applicants will benefit from meeting early and
often with SKHHP. Applicants should be prepared to provide a project description identifying the
population to be served, approximate number of units, income and affordability, type of construction
(rehabilitation or new), neighborhood issues, whether relocation or displacement will be required,
team members (developer, architect, property manager), likely funding sources, and demonstration of
how the proposed project meets SKHHP's goals and priorities.
To set up a pre -application meeting, email Angela San Filippo, asanfilippo@skhhp.org
ELIGIBLE APPLICANTS
Housing Capital Funds may be applied for by applicants or a group of applicants that are:
• Non-profit organizations
• Private for -profit organizations
• Public housing authorities
• Public development authorities
• Units of local government
Page 8 of 21
ATTACHMENT B
Partnerships involving combinations of the above groups are encouraged, especially in the case where
a private for -profit organization and/or applicants with less experience looking to build affordable
housing development skills and abilities applies for funding. Partnerships are seen as opportunities to
build organizational capacity, achieve community outcomes, and reduce investment risk for Housing
Capital Funds.
ELIGIBLE BENEFICIARIES
The general purpose of the Housing Capital Fund is to create and preserve affordable housing that
meets the needs of low-income households earning up to 60% of median income. SKHHP uses the
United States Department of Housing and Urban Development income limits and rent limits developed
for the Seattle -Bellevue Metro Area.
2022 Income and Rent Limits - King County Area Median Income $115,700
Maximum 2022 Household Income for Multifamily Rental Properties
of
Household Size
AMI
1-person
2-person
3-person
4-person
5-person
6-person
7-person
8-person
20%
$18,120
$27,180
$23,300
$25,880
$27,960
$30,040
$32,100
$34,180
30%
$27,180
$31,080
$34,950
$38,820
$341,940
$45,060
$48,150
$51,270
35%
$31,710
$36,260
$40,775
$45,290
$48,930
$52,570
$56,175
$59,815
40%
$36,240
$41,440
$46,600
$51,760
$55,920
$60,080
$64,200
$68,360
45%
$40,770
$46,620
$52,425
$58,230
$62,910
$67,590
$72,225
$76,905
50%
$45,300
$51,800
$58,250
$64,700
$69,900
$75,100
$80,250
$85,450
60%
$54,360
$62,160
$69,900
$77,640
$83,880
$90,120
$96,300
$102,540
Maximum Rent and Utilities for Projects Based on Unit Size*
of AMI
Number of Bedrooms
Studio
1-bedroom
2-bedroom
3-bedroom
4-bedroom
5-bedroom
20%
$453
$485
$582
$673
$751
$828
30%
$679
$728
$873
$1,009
$1,126
$1,242
35%
$792
$849
$1,019
$1,177
$1,314
$1,449
40%
$906
$971
$1,165
$1,346
$1,502
$1,657
45%
$1,019
$1,092
$1,310
$1,514
$1,689
$1,864
50%
$1,132
$1,213
$1,456
$1,682
$1,877
$2,071
60%
$1,359
$1,456
$1,747
$2,019
$2,253
$2,485
*Includes the cost of basic utilities paid by resident. Unless the property pays ALL utilities, property must allow
for the estimated amount the resident pays for utilities when calculating rent charges, so that both together do
not exceed the rent limits. Most properties use public housing authority utility allowances. King County Housing
Authority energy assistance supplements (formerly called utility allowances).
Page 9 of 21
ATTACHMENT B
ELIGIBLE ACTIVITIES
SKHHP funds may be used for the following activities:
• Acquisition, and related costs such as appraisals, financing costs, and transaction costs
• Rehabilitation and new construction costs
• Site development
• Off -site development only when necessary to assure utility service to the project site
• Mixed -income projects so long as Housing Capital Fund dollars assist units affordable at or
below 60% of area median income
At this time, SKHHP does not have funds to support early technical assistance or predevelopment
costs. Applicants in very preliminary stages are encouraged to apply to Impact Capital for
predevelopment funding.
SKHHP member cities understand that certain County, State, and Federal housing programs require
some level of matching by local resources. The SKHHP Housing Capital Fund is encouraged to be used
as a local match for these programs.
11►IA4101.]RWITOILVAk111*1
Housing Capital Funds may NOT be used for:
The development of any non-residential use. Housing capital funds may be used in a mixed use
development only for that portion of the development that is specific to the residential use. This
restriction also applies to site development and off -site development costs for non-residential uses.
• The cost of any program operating expenses
• The cost of any political or lobbying activities or materials
• Rehabilitation of single-family housing units in a manner that would duplicate participating
jurisdictions' housing repair assistance programs
0 Uses that are public capital facilities such as correctional facilities or impatient treatment
facilities
PROJECT LOCATION
All projects funded under this program must be located within the SKHHP sphere of influence (see
ATTACHMENT A).
LOAN AND REGULATORY TERMS
Housing Capital Fund dollars will be made available as either secured grants or loans. SKHHP has
flexible terms designed to accommodate a range of projects and loan terms will vary based on the
Page 10 of 21
ATTACHMENT B
financial needs of the project. Applicants should indicate in the application whether they are applying
for a grant or loan, and what loan terms are proposed for the project. Loan applicants will not receive
priority over grant applicants.
PERIOD OF AFFORDABILITY
SKHHP expects that projects will commit to providing long-term affordability in the form of a 50-year
regulatory agreement. A covenant will be recorded against the property that requires continued use of
the property for low-income housing for the period of affordability. During this period the owner or
property manager will be required to do annual reporting of tenant incomes and rents to ensure that
affordability requirements are met, and SKHHP will monitor those reports to ensure compliance. If the
project is converted to an alternative use or is otherwise not meeting the agreed upon terms in the
regulatory agreement any time during the projects agreed -to term of affordability, the SKHHP Housing
Capital Fund contribution to the project will be subject to immediate repayment, and potentially a
proportionate share of appreciation.
OTHER AWARD TERMS/REPORTING REQUIREMENTS
Additional funding conditions will be spelled out in an award letter to successful applicants. At a
minimum, the following reporting requirements shall apply during development and occupancy:
Quarterly Status Reports
Quarterly status reports are required from all Housing Capital Fund funded projects during the
development stage (from the time funds are awarded until completion and occupancy of the project).
The quarterly reports will minimally include the status of funds expended and progress to date. A final
budget must be prepared and submitted at the time of construction start and project completion.
SKHHP will rely on the quarterly reports to determine if satisfactory progress is being made on the
project. Additionally, SKHHP staff will inspect the project site at least once during the
development/construction stage.
Ongoing Monitoring
After occupancy, the project sponsor or manager will submit an annual report to SKHHP summarizing
the number of project beneficiaries, housing expenses for the target population, and the proportion of
those beneficiaries that are low- and/or moderate -income, and that meet other eligibility criteria
established in the SKHHP regulatory agreement. In addition, for projects with loan payments, financial
information must be reported annually which will be used for assessing contingent loan payments and
project health. All projects will also be evaluated periodically for long term sustainability. The annual
reports will be required for the full duration of affordability.
Page 11 of 21
ATTACHMENT B
APPLICATION CONTENTS
SKHHP uses the Combined Funders Application forms, developed jointly with other public funders
including the State of Washington Department of Commerce and King County. Application forms are
available on SKHHP's website at (insert website info] or using the links provided below.
Rental Applications: 2021 Multifamilv Applications Documents
Homeownership Applications: 2021 Homeownership Application Documents
Letter of consistency
Projects that are selected for funding have to demonstrate consistency with community priorities and
plans. Applicants must include a letter of consistency from the jurisdiction where the project is located
affirming the project is consistent with the Consolidated Plan, local comprehensive plan, and its
housing element, and any local housing action plans.
Letter of community support
Projects that are selected for funding must demonstrate community support. Applicants must include
at least one letter of support from a community organizations, church, community center, or school
that serves the
The following materials are to be submitted for each application:
• One complete electronic application on a flash drive , a letter of consistency, a letter of community
support, and Combined Funders Application that meets the following:
o Attachments under each Tab should be placed in a separate folder labeled with the Tab
number.
o The Project Workbook must be in Excel format with linked sheets unlocked and formulas
visible.
o Narrative responses must be in Word format
o Attachments must be in PDF format.
Complete applications are to be submitted by 5:00 pm on September 15, 2022 to:
SKHHP
ATTN: Angela San Filippo
25 W. Main Street
Auburn, WA 98001
If you are delivering in person, please reach out to SKHHP staff in advance to confirm a time for
application delivery.
If you have any questions about application requirements, please contact Angela San Filippo at (253-
329-7394 or email asanfilippo@skhhp.org
Page 12 of 21
ATTACHMENT B
REVIEW PROCESS
Proposals will be reviewed using the following process:
Step 1. An initial screening will be conducted by SKHHP staff to determine the completeness of each
application. Staff reserves the right to deny applications that are incomplete.
Step 2. SKHHP will evaluate the applications and develop a recommendation to the respective City
Councils. SKHHP's recommendation will be made by its Advisory Board and approved by its Executive
Board.
Step 3. SKHHP member City Councils that have contributed funding will review and approve the
funding recommendation submitted by SKHHP, or will return the recommendation, with comments,
for further investigation before a final decision is made.
EVALUATION CRITERIA
General
Evaluation of applications will focus on an overall evaluation of all of the following key areas:
• Advancing the goals of equity, including the extent that projects are community -driven
and/or reduce or undo disproportionate harm to communities most impacted by historic
injustice and displacement, including extremely low-income households with incomes at or
below 30 percent of area median income and Black, Indigenous, and People of Color
(BIPOC) communities
• Feasibility, timeliness, and cost effectiveness (i.e., SKHHP Housing Capital Fund award per
unit/square feet, total development cost per unit/square feet, reasonableness of schedule,
budgets, and proforma, adequacy of resources and ongoing sustainability, and site control
to ensure timely completion).
• Relevance of the project to local housing needs, including the extent to which the project is
consistent with the local plans (e.g., Consolidated Plan, Housing Element, or area plans), and
the extent to which housing need will be met and help to achieve SKHHP's stated priorities.
• Suitability of the project sponsor and development team, including any track record
and/or housing development for success, adequacy of management plans, duration of
affordability, ongoing sustainability, adequacy of support services, and firmness of financial
commitments or likelihood of receiving those commitments.
Page 13 of 21
ATTACHMENT B
Specific
The following specific information areas will be evaluated for data to support the key focus areas
described above.
A. Development and Operating Budgets
Projects will be evaluated for cost effectiveness on a per unit and per square foot basis. Higher up-
front development costs may be justified to create long-term operational efficiencies (e.g., through use
of high -efficiency building systems), provided that those increased costs have a relatively short
payback period. Higher land costs may be justified to account for strategic location such as proximity to
transit or other local amenities. SKHHP may use third party reviewers to evaluate estimated
construction costs. Development and operating budget forms should provide detailed explanation to
support estimated expenses. If support services are identified as an integral part of the project, a
detailed services budget must also be submitted. Proposed financing will be evaluated for feasibility
based on expressed interest from lenders and investors, and applicant (or applicant team, including
more -experienced consultants and partners) should have experience in obtaining financing, and other
competitive criteria (e.g., estimated tax credit score if LIHTC equity is proposed).
B. Project Readiness
Projects will be evaluated for their readiness to proceed. Applicants should demonstrate full site
control. Applicants should have a "letter of consistency' from the jurisdiction where the project will be
located affirming the project is consistent with the Consolidated Plan, local comprehensive plan and its
housing element, and any local housing action plans. Projects that propose significant fundraising
should demonstrate steps taken to prepare for and implement a capital campaign, including a plan and
timeline for the proposed capital fundraising and, preferably, a track record of past or current capital
fundraising ability. Projects that will rely on public funding to cover the costs of ongoing operations or
services should identify and describe the availability of such funding, and report on the project's
competitiveness for such funds based on discussions with likely funders.
C. Development Team Track Record
Project review will take into consideration how well experienced development teams have performed
on previously funded projects and, in the interest in increasing the diversity of housing and community
developers, how less experienced developers (or partners/consultants on their team) demonstrate an
understanding of the steps and structures needed for success. When there is an applicable track record
(for the applicant or partner/consultants), the application should identify lessons learned from those
projects and describe how performance/actions have been modified as a result.
D. Proaerty and Asset Management Caaacity
The proposed property and asset management entities will be evaluated on their experience,
performance, or developing capacity in managing comparable developments. Successful asset
managers will have a detailed understanding of the physical and financial condition of their properties,
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ATTACHMENT B
regularly updated capital needs assessments, and thoughtful policies for balancing the objective of
maintaining affordable rents and planning for healthy reserves and operating income to cover current
and future expenses. If a project is in its preliminary stages, a boiler plate management plan may be
submitted with the application. A final management plan will be required prior to contracting.
A successful management plan will include the following information:
Occupancy: Information in the occupancy management plan must include lease information
(length, tenant eligibility and selection standards, standards for termination of lease,
eviction, lease renewal) and marketing strategies including local outreach.
Facility: The facility management plan should include provisions for both routine and long-
term building maintenance.
Supportive Services: If applicable, the applicant must describe how any supportive services
identified as an integral part of the project will be provided, either directly or through
linkages with an existing network of service agencies and describe how those services will
be in accordance with best practices for the intended population.
E. Displacement and Relocation
Any activity which would result in the displacement of existing residents, especially low- and/or
moderate -income residents and/or BIPOC residents is discouraged. If displacement may occur, the
applicant must submit, as part of the application for capital funds, a plan for providing relocation
assistance to the displaced residents. (If relocation may occur, the applicant is strongly encouraged to
contact the King County Housing Finance Program to discuss what relocation assistance may be
available.) Relocation costs should be included in the project budget. Projects funded with federal
dollars (e.g., CDBG funds) must meet all applicable federal relocation requirements.
F. SUDDortine Eauitv
The proposed project will be evaluated based on whether the development will advance SKHHP's goals
of equity, including preserving existing communities at risk of displacement (including manufactured
housing communities); increasing opportunities for extremely low-income households (households
with incomes at or below 30 percent of area median income); creating meaningful project partnerships
(including with BIPOC-lead organizations) that give voice and ownership to residents and communities
of color; affirmatively marketing new housing opportunities to communities less likely to access
opportunities in South King County; providing affordable housing as a public investment — and
potential catalyst — in areas that have traditionally received less services and/or public investments;
and addressing historic inequities in access to homeownership.
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ATTACHMENT B
G. Nature of Location
As part of the decision process, reviewers will want to understand how the proposed development fits
into the neighborhood and would help further any number of public policy goals. Examples of
furthering public policy goals could include:
• Locating in a "high opportunity" location, with proximity to or easy access to jobs, grocery
stores, pharmacies, schools/childcare, transportation, and community or cultural centers.
• Providing affordable housing in areas at high -risk of displacement or experiencing a loss of
naturally occurring affordable housing.
• Investing public dollars in areas traditionally/historically underserved or as a catalyst for further
investments and development.
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ATTACHMENT B
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Page 17 of 21
ATTACHMENT C
DRAFT SKHHP 20223 WORK PLAN AND BUDGET
SKHHP MISSION
South King County jurisdictions working together and sharing resources to create a
coordinated, comprehensive, and equitable approach to increasing housing stability, reducing
homelessness, and producing and preserving quality affordable housing in South King County.
OBJECTIVES
• Housing Policy and Planning. Share technical information and resources to promote
sound housing policy
• Affordable Housing Investment. Coordinate public resources to attract greater private
and public investment for affordable housing in South King County
Outreach, Education, and Advocacy. Provide a unified voice to advocate for South
King County needs at a local, regional, and state levels
PURPOSE
Establish a 2023 SKHHP Work Plan that is shaped by member jurisdictions, is consistent with
the SKHHP Interlocal Agreement, and furthers SKHHP's mission.
BACKGROUND
The Draft SKHHP 2023 work plan, developed in consultation with the SKHHP staff work group
and Advisory Board, includes five goals and corresponding actions that will facilitate
implementation of the SKHHP Interlocal Agreement. The 2023 work plan builds on work done
in the past few years to establish a SKHHP Housing Capital Fund through pooled public
resources, increase philanthropic and corporate investment through the creation of a SKHHP
501(c)(3) fundraising branch, and establish a SKHHP Advisory Board made up of community
members that will help to ground SKHHP decisions in communities needs and interests.
NEXT STEPS
In accordance with the Interlocal Agreement, the 2023 SKHHP Work Plan will be approved by
the legislative body of each member jurisdiction and the SKHHP Executive Board. The timeline
for continued development and adoption of the 2023 SKHHP Work Plan is as follows:
APRIL-MAY JUNE-JULY (?FALL -WINTER
Staff workgroup and Advisory Review and input sought from Partner jurisdiction adoption of
Board work plan development partner Councils 2023 work plan and budget
Executive Board work plan and Executive Board consideration of
budget development work plan and budget adoption
MAY-JUNE AUGUST
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ATTACHMENT C
GOAL 1: Define strategy, direction, and long-term goals, and provide direction
to staff on implementation of the SKHHP interlocal agreement.
Critical
• Develop annual work plan and budget.
• Generate and distribute quarterly progress reports to SKHHP Executive Board
and member jurisdictions.
• Develop long-term funding strategy for the SKHHP Housing Capital Fund and
facilitate conversations with member jurisdictions to identify and explore
dedicated sources of revenue for affordable housing at the local and regional
level.
GOAL 2: Build long term stability for the SKHHP Housing Capital Fund:
Critical
• Facilitate final 2022 funding allocations through member Councils.
• Prepare contract documents and distribute funds for awarded projects.
• Monitor funded projects including evaluating and tracking payment plans.
• Work with administering agency to maintain records and produce regular
financial reports for the SKHHP Housing Capital Fund.
Important
• Work collaboratively with public funders at the state and local levels to promote
shared affordable housing goals and equitable geographic distribution.
• Work with private investors and lenders to maximize leverage of public
investment into affordable housing.
• Work with member cities and project sponsors to start developing a pipeline of
projects to be funded over the next five years.
• Actively vet potential projects and lead funding policy and prioritization
discussions with the SKHHP Executive Board to facilitate planning and decision -
making.
GOAL 3: Work with partner jurisdictions to enhance and develop new local
policies and programs that protect existing affordable housing stock,
provide housing security, and accelerate access to affordable
housing.
Critical
• Continue to improve and refine and conduct regular updates to housing policy
matrix and affordable housing database (being developed in 2022).
• Convene city and county land use planners to share best practices and increase
coordination and collaboration on housing policy and planning.
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ATTACHMENT C
• Support efforts to advance 5-year action plan identified by the Regional
Affordable Housing Task Force.
• Develop subregional housing preservation strategies.
Important
• 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.
Goal 4: Represent South King County and its unique affordable housing
needs at all decision tables and foster collaboration between
partners.
Critical
• Represent SKHHP at relevant local and reginal meetings and forums that help
advance SKHHP's mission and provide a voice for increasing access to safe,
healthy, and affordable housing in South King County.
Important
• Build relationships with state and federal legislators through organizing work
sessions, and providing progress updates.
Goal 5: Further strengthen regional stakeholders' understanding of the
spectrum of affordable housing options, the range of related needs
and opportunities, and the housing system .
Critical
• Conduct monthly SKHHP Executive Board educational topics on emerging
housing and homelessness topics.
• Coordinate with housing organizations and stakeholder groups to provide
education and engagement opportunities for elected officials, stakeholders, and
community members.
Important
• Provide annual updates to non-SKHHP South King County cities and relevant
stakeholder groups.
Desirable
• Work with the Housing Development Consortium, affordable housing developers,
and city and county planners to reimagine the South King County Joint Planners
and Developers work group.
Page 20 of 21
ATTACHMENT C
DRAFT 2023 SKHHP Operating Budget
Projected beginning fund balance - January 1, 2023
Projected ending fund balance - December 31, 2023
REVENUES
Auburn
Burien
Covington
Des Moines
Federal Way
Kent
Maple Valley
Normandy Park
Renton
Tukwila
Unincorporated King County**
King County**
$194,188
$113,492.76
$34,385
$19,838
$9,919
$9,919
$43,010
$43,010
$9,919
$5,060
$43,010
$9,919
$43,010
$31,990
Interest earnings
Office space (in -kind donation)
$12,000
TOTAL REVENUES
$314,989.00
Spend down balance
$80,695.24
TOTAL
$395,684.24
EXPENSES
Salaries and benefits
$290,803.85
Misc - travel, phone, postage
$12,000.00
Advisory Board compensation
.
$14,400.00
Office space (in -kind donation)
$12,000.00
Supplies
$1,000.00
Professional development
$5,000.00
Interfund IT
$25,600.00
Subtotal
$360,803.85
Administering agency— 10% Administrative Fee*
$34,880.39
TOTAL
$395,684.24
*10% administrative fee is calculated as a percentage of operating costs which does not include in -kind donations, or carry forwards.
**King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner
jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year.
Page 21 of 21