HomeMy WebLinkAboutRES 4549 CITY OF RENTON, WASHINGTON
RESOLUTION NO. 4549
A RESOLUTION OF THE CITY OF RENTON, 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 May 24, 2019, the City of Renton entered into an interlocal agreement to
form the South King Housing and Homelessness Partners (SKHHP) ("2019 ILA")to help coordinate
the efforts of South King County cities to provide affordable housing; and
WHEREAS, on July 16, 2021 the City of Renton entered into an interlocal agreement for
the purposes of pooling sales tax receipts with SKHHP to administer funds through the SKHHP
Housing Capital Fund established under the 2019 ILA; and
WHEREAS in 2024, SKHHP solicited and reviewed applications from projects to use the
Capital Fund; and
WHEREAS, on January 23, 2025, the SKHHP Executive Board recommended funding four
(4) projects totaling $4,103,000.00 as described in Attachment A attached hereto; and
WHEREAS, pursuant to the SKHHP 2019 ILA, 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
1
RESOLUTION NO. 4549
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, the City Council desires to use $269,077 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 RENTON, WASHINGTON, DO
RESOLVE AS FOLLOWS:
SECTION I. Pursuant to the 2019 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 White River Apartments and supporting the development of Habitat for
Humanity's Burien Miller Creek project and to use $269,077 from the City's SHB 1406
contribution as shown below.
Total
3. MSC-White 4. Habitat-Miller Contributed Carry-Over
Jurisdiction River Creek from 2023 Unallocated
in 2024
Auburn $ 121,507 $ 39,980 $ 135,475 $ 26,819 $ 807
Burien $ 57,59S $ 18,950 $ 64,623 $ 12,304 $ 382
Des Moines $ 29,955 $ 9,856 $ 34,012 $ 5,998 $ 199
Federal Way $ 116,047 $ 38,184 $ 131,715 $ 23,286 $ 770
Kent $ 173,408 $ 57,057 $ 194,889 $ 36,726 $ 1,150
Normandy Park $ 4,930 $ 1,622 $ 5,426 $ 1,1S8 $ 32
Renton $ 202,461 $ 66,616 $ 228,107 $ 42,313 $ 1,343
Tukwila $ 69,097 $ 22,735 $ 89,289 $ 3,002 $ 459
Total $ 775,000 $ 255,000 $ 883,536 $ 151,606 $ 5,142
2
RESOLUTION NO. 4549
SECTION II. 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
23, 2025, a copy of which is attached as Attachment A.
SECTION III.This Resolution will take effect and be in full force on passage and signatures.
PASSED BY THE CITY COUNCIL the 24th day of March 2025.
Jaso A. Se , C' Clerk
APPROVED BY THE MAYOR this 24th day of March , 2025.
Armondo Pavone, Mayor
Approved as to m:
Shane Moloney, City Attorney =.G.�`� ,,�......++,,,M�0y,,�'
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SKNE I No
South King Housing and Homelessness Partners
TO: City of Auburn City Council City of Maple Valley 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 SeaTac City Council
City of Federal Way City Council City of Tukwila City Council
City of Kent City Council
FROM: SKHHP Executive Board
DATE: January 23,2025
RE: 2024 SKHHP Housing Capital Fund Recommendation
OVERVIEW
2024 was the third annual funding round of the SKHHP Housing Capital Fund made possible by pooling
resources among SKHHP member jurisdictions. 2024 was the first year every member city contributed pooled
funds towards the Housing Capital Fund and contributions totaled $3,959,020. With the remaining unused
funds from the 2023 funding round, SKHHP made$4,100,000 available in the 2024 funding round. SKHHP
received six applications for funding representing over$9.2 million in requests to develop or preserve 431
units of housing. The SKHHP Executive Board recommends funding four projects totaling$4,100,000 (see Table
1). Of this total,the Executive Board recommends using$1,030,000 of the total $1,035,141 sourced from SHB
1406 revenue contributions for one homeownership and one preservation project; $2,770,000 of the total
$2,775,969 sourced from HB 1590 revenue contributions for two new construction projects; and $300,000 of
the total$300,000 sourced from general funds to be applied to the homeownership project.This
recommendation leaves a balance of$5,141 in SHB 1406 funds and$5,969 in HB 1590 funds in the Housing
Capital Fund that will rollover into the next funding round in 2025 (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 attachments are the economic summaries of the recommended projects,summary changes of previously
awarded projects that reapplied and are recommended for funding, and standard conditions for funding.
Table 1: Recommended Projects and Recommended Funding Level
Project sponsor Location #of Project type Amount Recommended Recommended
and name units Requested Funding—HB Funding—SHB
1590 1406&GF
Mercy Housing NW— Burien 91 New Construction $2,000,000 $2,000,000
Burien Family Housing Rental
TWG—Pandion at Star Kent 251 New Construction $2,000,000 $770,000 -
Lake Rental
Multi-Service Center— Auburn 24 Preservation $975,939 $775,000
White River Apts. Rental
Habitat for Humanity— Burien 40 New Construction $1,300,000 - $300,000-GF
Burien Miller Creek Homeownership $255,000-SHB
1406
TOTAL -- 406 -- -- $2,770,000 $1,330,000
Page 1 of 23
Table 2: Proposed HB 1590 Allocations by Jurisdiction for Recommended Projects
1. Mercy Total Carry-Over
Jurisdiction Housing-Burien 2.TWG-Pandion Contributed from 2023 Unallocated
Family in 2024
Covington $ 153,964 $ 59,276 $ 213,657 $ 43 $ 460
Kent $ 1,485,801 $ 572,034 $ 2,061,827 $ 442 $ 4,434
Maple Valley $ 360,235 $ 138,690 $ 500,000 $ - $ 1,075
Total $ 2,000,000 $ 770,000 $ 2,775,484 $ 485 $ 5,969
Table 3: Proposed SHB 1406 Allocations by Jurisdiction for Recommended Projects
Total
Jurisdiction 3. MSC-White 4. Habitat-Miller Contributed Carry-Over Unallocated
in 2024
River Creek from 2023
Auburn $ 121,507 $ 39,980 $ 135,475 $ 26,819 $ 807
Burien $ 57,595 $ 18,950 $ 64,623 $ 12,304 $ 382
Des Moines $ 29,955 $ 9,856 $ 34,012 $ 5,998 $ 199
Federal Way $ 116,047 $ 38,184 $ 131,715 $ 23,286 $ 770
Kent $ 173,408 $ 57,057 $ 194,889 $ 36,726 $ 1,150
Normandy Park $ 4,930 $ 1,622 $ 5,426 $ 1,158 $ 32
Renton $ 202,461 $ 66,616 $ 228,107 $ 42,313 $ 1,343
Tukwila $ 69,097 $ 22,735 $ 89,289 $ 3,002 $ 459
Total $ 775,000 $ 255,000 $ 883,536 $ 151,606 $ 5,142
Table 4: Proposed Unrestricted/General Fund Allocations by Jurisdiction for Recommended Projects
3. Habitat-Miller Total
Jurisdiction Creek Contributed in Unallocated
2024
SeaTac $ 300,000 $ 300,000 $
Total $ 300,000 $ 300,000 $ -
BACKGROUND
The SKHHP Advisory Board met on October 3, 2024 and November 7, 2024 to review each project application
and develop a funding recommendation for the SKHHP Executive Board's consideration. The SKHHP Executive
Board met on October 18, 2024 and November 15, 2024 to review each project and consider the
recommendations of the Advisory Board.The Advisory Board adopted its recommendation on November 7,
2024 and the Executive Board took final action on November 15, 2024.
Of the six applications received,two are located in Renton and both project applications are eligible to receive
HB 1590 funds.The City of Renton collects HB 1590 funds but does not currently pool those funds with SKHHP.
SKHHP pools HB 1590 funds from three of the four South King County cities that collect it. Because of this,the
City of Renton plans to directly financially support these two projects. These projects include Homestead
Community Land Trust's Willowcrest II and St. Stephen Housing Association &Way Back Inn's Steele House.
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These two projects were removed from SKHHP's competitive list of projects under consideration prior to the
Advisory Board and Executive Board making their funding recommendation.
PROCESS
Advisory Board Executive Board finalizes Member Councils approve
recommendation recommendation funding recommendation
(November 7,2024) (November 15,2024) (January-March 2025)
ATTACHMENTS
1. Economic summaires of recommended projects
2. Summary changes of previously awarded projects that reapplied
3. Standard conditions for funding
Page 3 of 23
1. Mercy Housing Northwest-Burien Family Housing
Funding request: 52,000,000
Executive Board recommendation: $2,000,000(forgivable loan)
Address: 12845 Ambaum Blvd SW Burien, WA 98146
PROJECT SUMMARY
Burien Family Housing is a new multifamily 91-unit rental project located near high frequency transit in Burien.
The project will support households earning between 30%area median income (AMI) and 60%AMI with a
focus on households with children, including 34 units set-aside for families with children exiting homelessness
and 18 units set-aside for households with a physical disability.
The project includes the redevelopment of a 4.23 acre site currently owned by Mary's Place which operates an
emergency shelter on-site. Mary's Place will be donating 2-acres of the project site to Mercy Housing
Northwest for the development of new affordable housing, while retaining 1.31 acres of the site for the
development of a new shelter to replace the existing one. The project will be four stories in size. The
development is comprised of a mix of one-, two-,three-, and four-bedroom units. 52%of the units are family-
sized two-, three-, and four-bedroom units.
This project received a financial award from SKHHP during the 2022 funding round and secured funding from
King County,the Washington State Department of Commerce,the 9%Low Income Housing Tax Credit (LIHTC)
program, and the Amazon Housing Equity Fund (HEF) program over the course of 2023 and 2024. The project is
a combination 4%and 9% LIHTC project. The project also secured 34 project-based vouchers from the King
County Housing Authority and a Resident Services award from King County to support the families exiting
homelessness.
PROJECT SCHEDULE
Activity Date
Purchase and Sales Agreement 8/29/2022
Zoning Approval 2/1/2024
Site Plan Approval 8/18/2022
Building Permits Issued 2/25/2025
Begin Construction 4/1/2025
Begin Lease-up 6/1/2026
Issued Certificate of Occupancy 8/1/2026
FUNDING RATIONALE
The Executive Board supports the intent of this application for the following reasons:
• The project has been awarded significant financial contributions from King County, State Department
of Commerce (Housing Trust Fund), Amazon, and was awarded $1,093,308 from SKHHP in the 2022
funding round. Additionally,the project received a 9%bond allocation in the 2024 funding round
through the Washington State Housing Finance Commission.
• The project is ready to begin construction in the first half of 2025.
Page 4 of 23
• The sponsor's partnership with Mary's Place demonstrates a commitment to serving households
experiencing homelessness and will develop a pipeline of permanent housing for Mary's Place clients.
• Project-based vouchers have been secured which increases the financial stability of the project.
• 75%of the units will be constructed using advanced universal design principals.
• The project includes set-asides for four-bedroom units which are greatly needed to serve larger
families.
• The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including:collaboration
with local community-based organizations,connections and direct experience with populations the
project is proposing to serve, addressing the needs of populations most disproportionately impacted
by housing costs, advancing economic opportunity due to its proximity to transit and other amenities,
providing rental housing for individuals and families earning 0-30%AMI and incorporating supportive
services, and the leverage of private and public investment.
• The site has convenient access to transit,shopping,and services.
PROPOSED CONDITIONS
Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo.
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 of original award 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 Contractor 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. Project description of original award from 2022 funding round will be replaced by current
description of the project. Previous funding award shall be combined with current
recommended award but will retain eligibility of use under RCW.82.14.540.
4. At least 34 of the housing units shall be set-aside for families with children exiting
homelessness who earn no more than 60%AMI and 18 of the housing units shall be set-aside
for households with a physical disability who earn no more that 60%AMI. Use of funds and
population eligibility must be in-alignment with RCW 82.14.530 for 2024 award.
Page 5 of 23
5. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP
staff.
6. A covenant is recorded ensuring affordability for at least 50 years with size and affordability
distribution per the following table. Changes may be considered based on reasonable
justification as approved by SKHHP.
AMI 1-bedroom 2-bedroom 3-bedroom 4-bedroom Total Units
30% 6 14 5 3 28
50% 30 11 7 -- 48
60% 7 4 3 -- 14
Manager Units 1 -- -- -- 1
Total Units 44 29 15 3 91
Page 6 of 23
2. TWG Development-Pandion at Star Lake
Funding request: $2,000,000
Executive Board recommendation:$770,000(loan)
Address:2526 S 272nd St.,Kent,WA 98032
PROJECT SUMMARY
Pandion at Star Lake is a 251-unit multifamily, mixed-use rental project in Kent located adjacent to the
Kent/Star Lake Link light rail station.The project will support households earning between 30%AMI and
80%AMI.47 units will support households up to 80%AMI.The project has been proposed as a 4%Low
Income Housing Tax Credit(LIHTC)development.The project secured an award from SKHHP in the 2023
Housing Capital Fund funding round totaling$1,170,000,although the project was modified for the 2024
funding round.The project did not secure the needed public and private funds in 2024 to move forward
towards beginning construction.The timeline for beginning construction has been moved out until funds
can be secured to fill a$30 million gap. SKHHP's awards will assist the project in future applications to
funders.
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 a K-12 learning
center for low-income children operated by the Renton-based STEM Paths Innovation Network(SPIN).
The property was purchased by the developer in December 2022.The project is a six-story building with
five stories of affordable housing over one story of commercial space which also includes ten units of
housing at the residential lobby level, plus basement level parking.
The 251 units includes 163 units for the general population,59 units for families with children, and 29
units for families with children that require permanent supportive services and are at-risk of being
homeless. 24 units would be accessible units.The project includes 92 studios, 71 1-bedrooms, 36 2-
bedrooms,and 52 3-bedrooms.
29 units of the project are eligible for HB 1590 funds which includes those units for families with
children at-risk of homelessness and require permanent supportive services who earn up to 30%AMI.
Those units would be served by Vision House which would provide on-site supportive services. Of the
29-units, 20-units would be 2-bedroom units and 9-units would be 3-bedroom units to accommodate
families.
FUNDING RATIONALE
The Executive Board supports the intent of this application for the following reasons:
• The project secured a prior funding award from SKHHP and additional funds will assist the
project to leverage other funding sources.
• 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.
• The construction start date is anticipated farther out than other projects and the sponsor may
have more time to secure the additional funds than other recommended projects prior to
beginning construction.
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• The project has strong partnerships with Vision House who will provide on-site supportive
services for 29 families with children and SPIN who will operate a K-12 learning center in the
commercial space.
• The project will support 29 families with children at-risk of homelessness.
• The project is large and will provide a high number of affordable units near areas with high
displacement risk potential.
• 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.
• 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, and providing rental housing for individuals and families earning 0-
30%AMI and incorporating supportive services.
PROPOSED CONDITIONS
Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo.
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
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 of original award 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
Contractor 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.
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3. Project description of original award from 2023 funding round will be replaced by
current description of the project. Previous funding award shall be combined with
current recommended award.
4. At least 29 housing units of the total shall be set-aside for families with children at-risk
of homelessness who earn no more than 30%AMI per the requirements of RCW
82.14.530 and the U.S. Department of Housing and Urban Development's definition of
"at-risk of homelessness."
5. SKHHP funds shall be used solely for new construction, unless otherwise approved by
SKHHP staff.
6. A covenant is recorded ensuring affordability for at least 50 years with size and
affordability distribution per the following table. Changes may be considered based on
reasonable justification as approved by SKHHP.
AMI Studio 1-bedroom 2-bedroom 3-bedroom Total Units
30% -- -- 20 9 29
50% 52 41 1 20 114
60% 23 17 8 13 61
80% 17 13 7 10 47
Total Units 92 71 36 52 251
Page 9 of 23
3. Multi-Service Center-White River Apartments
Funding request: $975,939
Executive Board recommendation: $775,000 (grant)
Address: 1301 31st St SE, Auburn, WA
PROJECT SUMMARY
The White River Apartments is a multifamily, preservation and rehabilitation 24-unit rental project in
Auburn.The building was constructed in 1978 and the nonprofit Multi-Service Center took over
ownership in 2000. The project consists of 24 two-bedroom, one-bathroom units in active use which
includes three units serving households earning up to 30%AMI, sixteen units at 45%AMI, and five units
at 80%AMI.The 80%AMI units are currently occupied by households earning less than 60%AMI and
those units would shift to income restricted up to 60%AMI once funding is awarded. The project would
not displace current residents.
SKHHP funds are requested to support the rehabilitation of the 24 units including: siding replacement,
site lighting, parking lot improvements including curbs and seal coating, replacing domestic hot water
tanks in all units, re-grading areas adjacent to siding and replacement of exterior entry doors. This
project previously applied to SKHHP's 2023 funding round.
The project is located within walking distance of a bus route that connects to the Auburn Transit Center
and Sounder Commuter Rail Station. South Auburn Elementary School, Game Farm Park,and Ballard
Park are within 0.S mile of the project. A grocery store is located one mile from the project.
PROJECT SCHEDULE
Activity Date
Site Control 1/1/1996
Building Permit Issued End of 2025
Begin Rehabilitation and Renovation End of 2025
End Rehabilitation and Renovation End of 2025
FUNDING RATIONALE
The Executive Board supports the intent of this application for the following reasons:
• The property is in need of rehabilitation to support the health and safety of the residents.
• The project is made up of 2-bedroom units to support larger household sizes.
• 79%of the households at White River Apartments earn no more than 45%AMI.
• The property is close to parks, an elementary school, and transit access to the Auburn Transit
Center and the Auburn Sounder train station.
• The project includes a fenced play area with an accessible ramp into the play yard with recently
installed play equipment.
• Limited SKHHP funds available this funding round required a partial award which will still allow
most of the residential building rehabilitation to move forward.
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• There are limited funding sources available for preservation and rehabilitation—SKHHP is the
only funder on this project.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 project
applied for funding in early 2024 to the State Department of Commerce Housing Trust Fund and
SKHHP provided a letter of support, but was not successful in securing funding at that time.
• The rehabilitation will not displace current residents.
• Preservation and rehabilitation of affordable housing is a high-priority for SKHHP.
• 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, providing
rental housing for extremely-low income households,and preservation.
• 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 45%of residents of Multi-Service Center properties identifying as BIPOC.
PROPOSED CONDITIONS
Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo.
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
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 Contractor 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 and may include
the following, unless otherwise approved by SKHHP staff:
a. Landscaping improvements
b. Seal coating and restriping the parking lot
Page 11 of 23
c. Site lighting improvements
d. Recoating breezeways and replacing railings
e. New siding
f. Exterior paint
g. Replacing gutters and downspouts
h. Replacing unit entry doors and install metal screen doors
i. Replace in-unit and laundry water heaters
4. SKHHP funds shall be prioritized to support building improvements- parking lot
improvements shall not be funded in favor of residential building rehabilitation.
5. 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.
6. A covenant is recorded ensuring affordability for at least 50 years with size and
affordability distribution per the following table. Changes may be considered based on
reasonable justification as approved by SKHHP.
AMI 2-bedroom Total Units
units
30% 3 3
45% 16 16
60% 5 5
Total Units 24 24
7. 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 12 of 23
4. Habitat for Humanity Seattle-King& Kittitas Counties-Burien Miller Creek
Funding request: $1,300,000
Executive Board recommendation: $555,000 (grant)
Address: 511 S 136`h St Burien, WA 98168
PROJECT SUMMARY
Burien Miller Creek is a 40-unit homeownership project in Burien. The project is comprised of three-and
four-bedroom homes for purchase: 20 units for households earning an average 50%AMI and 20 units
for households earning up to 80%AMI. The project is currently under construction and SKHHP awarded
the project$300,000 in the 2022 funding round which has been requested to support the construction
of five units for households earning an average of 50%AMI not to exceed 60%AMI.All homebuyers
must have lived in King County for a least one year and 25%of the homes are reserved for households
with a connection to the community—being defined as within two miles from the project.
The project will provide permanent affordability through the execution of a ground lease upon sale of
the home. Habitat will have the Right of First Option to buy the home at an appreciated rate of 1.5% per
year. When the home is resold,the price is set at the cost of acquisition and any rehab needed,allowing
the home to be affordable to low-and moderate-income buyers in perpetuity. Habitat requires that the
home must be the buyer's primary residence and must be owner occupied for the life of the home. The
buyer's housing costs will be kept at or below 35%of gross household income.
The project has secured awards totaling$23 million and reports a funding gap of$3.3 million. The
funding gap is due to increased construction costs, higher interest rates on construction loans, and
lower mortgage revenue due to Habitat's commitment to serve families at lower AMIs in this
development.
PROJECT SCHEDULE
Activity Date
Site Control 3/26/2021
Building Permit Issued 3/24/2023
Begin Construction 11/08/2022
End Construction 2/1/2026
Full Occupancy 6/30/2026
FUNDING RATIONALE
The Executive Board supports the intent of this application for the following reasons:
• Homeownership is a high priority for SKHHP.
• Over$7 million has been invested in the site and over$23 million has been committed.
• Historically, out of the total number of households the sponsor has served, 65% identify as
BIPOC families.
• Habitat has implemented a community preference policy to help guide homeowner selection.
All applicants must have been residents of King County in the past year and 25%of the homes
Page 13 of 23
are reserved for those with a connection to the community(being defined as within a 2-mile
radius of the project site).
• The project began vertical construction in October 2024 and is fully permitted.
• Every homebuyer will have a sale price and mortgage set at no more than 35%of their
household income based on household size.
• Limited funds available from SKHHP required a partial award to be made to balance the need of
other priority projects with consideration of geographic equity.
• SKHHP awarded this project$300,000 in the 2022 funding round. Habitat reports a funding gap
due to construction cost overruns and interest rates impacting the mortgages at the AMI levels
they wanted to serve.SKHHP funds will help the project close the gap and enable them to serve
the lower AMI households they have committed to serve.
• The 32 3-bedrooms and 8 4-bedrooms spread across 10 buildings will provide badly needed
larger,family sized homes.
• The project was approved for participation in the City of Burien affordable housing
demonstration program.
• 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, leverage of public and private funds, and homeownership.
PROPOSED CONDITIONS
Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo.
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 of original award 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
Contractor 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.
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3. Project description of original award from 2022 funding round will be replaced by
current description of the project. Previous funding award shall be combined with
current recommended award.
4. The recommended$300,000(2024)from general fund contributions shall support the
development of five(5) housing units at an average 50%AMI on initial sale (among the
20 units with an average 50%AMI restriction)and be permanently restricted at 70%
AMI upon resale.
5. The recommended $255,000(2024)and the previously awarded $300,000(2022)shall
support the development of five (5) units at an average 50%AMI on initial sale (among
the 20 units with an average 50%AMI restriction)and be permanently restricted not to
exceed 60%AMI upon resale.
6. SKHHP funds shall be used solely for new construction,soft costs,or other development
costs, unless otherwise approved by SKHHP staff.
Page 15 of 23
ATTACHMENT 1: Economic Summaires of Recommended Projects
Project: Mercy Housing Northwest-Burien Family Housing
Proposed Funding Sources by Amounts and Status
Funding source Proposed Amount Status
SKHHP(2024) $2,000,000 Recommended
SKHHP(2022) $1,093,308 Committed
4%LIHTC Equity $9,405,093 Committed
9%LIHTC Equity $13,446,619 Committed
State HTF $4,000,000 Committed
King County(2023) $6,000,000 Committed
Permanent Amortizing Loan $5,892,060 Committed
Amazon HEF Loan $9,500,000 Committed
Mercy Loan Fund $999,999 Committed
Land Contribution $1,800,000 Committed
Deferred Developer Fee $1,011,384 Committed
National Housing Trust Fund $1,000,000 Committed
King County 2024/CHIP Pass Thru $1,900,000 Committed
TOTAL $58,048,463
Proposed Use of Funds and Total Residential Cost Per Unit
Proposed use Amount Per Unit
Acquisition $1,820,000 --
Construction $42,217,570 --
Soft Costs $8,634,716
Other Development Costs $5,376,177 --
TOTAL $58,048,463 $637,895
Residential Cost Per Square Foot
Item Amount
Residential square footage 86,543
Residential development cost $58,048,463
Cost per square foot $670.75
Residential Cost Per Unit Based on Unit Size
Unit Size Number of Units Unit Square Cost per Unit
Footage
Average 1-bedroom 44 526 $352,813
Average 2-bedroom 29 788 $528,549
Average 3-bedroom 15 1062 $712,333
Average 4-bedroom 3 1291 $865,934
Common area and other residential spaces,
20,380 $13,669,825
including parking
Page 16 of 23
Project:TWG—Pandion at Star lake
Proposed Use of Funds and Total Residential Cost Per Unit
Proposed use Amount Per Unit
Acquisition $6,207,361
Construction $87,306,025 --
Soft Costs $15,032,371
Construction Financing $9,298,009
Other Development Costs $8,876,434
TOTAL $126,720,200 --
TOTAL NON-RESIDENTIAL $4,413,357 -
TOTAL RESIDENTIAL(includes common areas) $122,306,843 $487,278
Residential Cost Per Square Foot
Item Amount
Residential square footage 278,255
Residential development cost $122,306,843
Cost per square foot $439.55
Residential Cost Per Unit Based on Unit Size
Unit Size Number of Units Unit Square Cost per Unit
Footage
Average Studio 92 415 $182,413
Average 1-bedroom 71 650 $285,707
Average 2-bedroom 36 926 $407,023
Average 3-bedroom 52 1,139 $500,647
Common area and other residential spaces, -- 107,767 $47,368,930
including parking
Project: Multi-Service Center—White River Apartments
Proposed Funding Sources by Amounts and Status
Funding source Proposed Amount Status
SKHHP(2024) $975,939 Recommended
TOTAL
Proposed Use of Funds and Total Residential Cost Per Unit
Proposed use Amount Per Unit
Rehabilitation $747,939
Rehabilitation Contingency $150,000
Soft Costs $50,000
Other Development Costs $28,000
TOTAL $975,939 $40,664
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Project: Habitat for Humanity Seattle-King& Kittitas Counties-Burien Miller Creek
Proposed Funding Sources bV Amounts and Status
Funding source Proposed Amount Status
SKHHP(2022) $300,000 Committed
SKHHP(2024) $550,000 Recommended
King County $3,547,282 Committed
HTF $3,125,000 Committed
CHIP $1,934,500 Committed
HUD $850,000 Committed
HTF Unit Subsidy(2024) $1,000,000 Committed
Construction Financing $12,562,607 Committed
Habitat for Humanity $2,324,297 Committed
TOTAL $26,193,686
Proposed Use of Funds and Total Residential Cost Per Unit
Proposed use Amount Per Unit
Acquisition $2,086,758 $52,169
Construction $20,931,597 $523,290
Soft Costs $1,906,163 $47,654
Other Development Costs $1,269,168 $31,729
TOTAL $26,193,686 $654,842
Residential Cost Per Square Foot
Item Amount
Residential square footage 54,662
Residential development cost $26,193,686
Cost per square foot $479.19
Page 18 of 23
ATTACHMENT 2: Summary Changes of SKHHP Awarded Projects that Reapplied
Project: Mercy Housing Northwest-Burien Family Housing
Project changes between the awarded project from the 2022 SKHHP funding round and the 2024
application are as follows:
2024 2022 Changes
Populations 34—families with children 35—families with • Fewer units for
served exiting homelessness children exiting families with children
16—families with children homelessness • Added units for
18—households with a 54—families with households with a
physical disability children disability and general
22—general population population
Total units 91 89 • One unit added for an
on-site manager
• One additional
affordable unit
AMI 0-60% 0-60% • No change
AMI/unit 0-30%-28 0-30%-35 • More 50% units and
count 30-50%-48 30-50%-28 fewer 30% and 60%
50-60%- 14 50-60%-26 units
LIHTC 4%/9% 4% • Added 9% LIHTC
Cost $59.7m $47.4m • Higher budget
Page 19 of 23
Project:TWG—Pandion at Star Lake
Project changes between the 2023 awarded project and the 2024 application are as follows:
2024 2023 Changes
Number of 1 2 • Modified from 2
buildings buildings to 1
Populations 163 units-general Building 1: • No seniors at 80-100%
served population 109 units-general population AMI
59 units-families 30 units-families with children . No families that are
with children 25 units-families with children transitioning out of
29 units-families that require permanent homelessness
with children that supportive services and who are . No IDD units
require permanent transitioning out of homelessness . Larger number of general
supportive services or are at-risk of homelessness population units in lower
and are at-risk of 4 units-households with I/DD income building
being homeless Building 2: . More units for families
173 units—seniors earning 80- with children
100%AM I
Total units 251 341 (168 and 173) • 90 fewer units
AMI 0-80% 0-100% • No80-100%AMI units
AMI/unit 0-30%-29 0-30%-29 • Number of 0-30%units
count 30-50%- 114 30-50%-97 unchanged
50-60%-61 50-60%-42 • More 30-60%units
60-80%-47 80-100%-173 • Added 80% units
• Removed 80-100%units
LIHTC 4% 4%/9% • Not applying for 9%
LIHTC
Page 20 of 23
Project: Habitat for Humanity Seattle-King&Kittitas Counties-Burien Miller Creek
Project changes between the awarded project from the 2022 SKHHP funding round and the 2024
application are as follows:
2024 2022 Changes
Number of 10 10 • No change
buildings
Populations Homebuyers with Homebuyers with • No change
served connection to the connection to the
community community
Total units 40 Phase 1—20 units • Removed Phase 1 and
Phase 2—20 units 2 and are considering
the project a single
project.
AMI 20 units-average of 50% Phase 1 (20 units)—up to • Changed from 20
AMI 50%AMI units at 50%AMI to
20 units-80%AMI Phase 2 (20 units)—80% an average 50%AMI
AMI
Cost $26.2m $8.4m (First 20 units only) • Higher development
cost
SKHHP Request: $1.3m for 20 $300k applied to 20 units up . Request to fund fewer
funding units at average 50%AMI. to 50%AMI >$300k applied of the 20 total units.
request to 20 units at average 50% Total project units
Recommended: Partial AMI >$300,000 applied to 5 unchanged.
award of$300,000 (GF) units at average 50%AMI
for 5 units at average 50%
AMI with resale up to 70%
AMI &$255,000 for 5
units at average 50%AMI
with resale up to 60%AMI
Page 21 of 23
ATTACHMENT 3: Standard Conditions for Funding
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,and shall survive the
transfer or assignment of the Contract. 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 Contract and consistent with RCW 82.14.540 and/or 82.14.530, as applicable.
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. Contractor shall use and document an open and competitive bidding process (consisting
of at least three bids)for construction and related consultant services associated with
the project, regardless of the source of funds used to pay their costs. Contractor shall
pay RCW 39.12 prevailing wages in all projects funded by SKHHP that include
construction activities, unless federal funds awarded to the project mandate use of
federal prevailing wage rates.
6. 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.
7. Contractor shall maintain documentation of any necessary land use approvals, permits,
and licenses required by the jurisdiction in which the project is located.
8. Contractor shall submit to SKHHP project monitoring reports quarterly through its
completion of the project,and annually thereafter. Contractor shall submit a final
Page 22 of 23
budget to SKHHP upon project completion. If applicable, Contractor shall submit initial
tenant information as required by SKHHP.
9. 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.
10. SKHHP may inspect the project site during the project's construction.
11. After occupancy,the 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,the Annual Report shall
include certifications to SKHHP that it is in compliance with the Covenant,which shall
include the most current occupancy information, rent schedule (showing which Units
are in each income class), a calculation justifying any increases in rents from the
previous rent schedule,consistent with the Covenant and the Contract,and the actual
rents being charged to each unit.SKHHP shall have the right to review rents for
compliance and approve or disapprove them every year. In the event the Contractor
submits annual certifications to satisfy the reporting requirements of multiple funders,
Contractor will designate and report all units at the income class required by the most
restrictive funder as well as the classification for purposes of the Covenant and this
Contract.The Contractor shall also include with such certification any changes in the
management policies for the Property and such other information covering the prior
calendar year as SKHHP may request by notice at least ninety(90)days in advance of the
due date, and with such accompanying documentation as SKHHP may request.The
Annual Reports shall be submitted by June 30 of each year and will be required for the
full duration of the Affordability Period. SKHHP will also periodically evaluate all projects
for long term sustainability.
12. For rental projects, Contractor shall maintain the project in good and habitable
condition for the duration of its affordability term.
13. 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.
14. SKHHP shall retain 5%of the funding award ("retention")and shall release the retention
only after construction is complete and all other obligations outlined in the contract
have been satisfied.
15. 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.
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