HomeMy WebLinkAboutRES 4290 CITY OF RENTON, WASHINGTON
RESOLUTION NO. 4290
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE
MAYOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING AND AN
APPLICATION, ALONG WITH KING COUNTY HOUSING AUTHORITY AND RENTON
HOUSING AUTHORITY, FOR A U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT CHOICE NEIGHBORHOODS IMPLEMENTATION GRANT FOR THE
SUNSET AREA TRANSFORMATION PLAN.
WHEREAS, the Sunset Area (as reflected in the attached Sunset Area Vicinity Map) is
one of Renton's older commercial and residential areas and is in need of revitalization; and
WHEREAS, since the late 1990s, the City has viewed the Sunset Area (a.k.a. the
Highlands) as a high-priority redevelopment area targeted for improvement and investment;
and
WHEREAS, in June 2009, the City commissioned a Community Investment Strategy study
to prioritize additional public investment in the 269-acre Sunset Area study area which resulted
in the City Council's adoption of the Sunset Area Community Investment Strategy in November
2009; and
WHEREAS, the highest priorities for the Sunset Area Community Investment Strategy
included support for the Renton Housing Authority's Sunset Terrace Redevelopment; and
WHEREAS, in June 2010, the City and the Renton Housing Authority partnered together
to conduct a Sunset Area Community Planned Action NEPA/SEPA Environmental Impact study.
The study was completed in April 2011 and resulted in the City Council's adoption of the Sunset
Area Community Planned Action in June 2011, to help facilitate and support private and public
investment and redevelopment in the Sunset Area over the next 20 years; and
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RESOLUTION N0. 4290
WHEREAS, in 2015, 27% of the households in the Sunset Area lived in poverty; the
median average household income was $42,500 [more than $22,723 less than the city as a
whole ($65,223) and more than $30,535 less than King County ($73,035)]; 73% of the students
at the neighborhood elementary school qualified for free or reduced fee lunch; and 48% of
students at the neighborhood elementary school had limited English proficiency; and
WHEREAS, the Sunset Area is a high-priority investment area for the City and the
Renton Housing Authority; and
WHEREAS, the City, the Renton School District, and the Renton Housing Authority have
invested or committed more than $66 million to date in public investments in the Sunset Area
to support the Sunset Area Community Revitalization and/or the Sunset Terrace
Redevelopment; and
WHEREAS, the City is seeking to leverage public and private investment in the Sunset
Area to help address the needs of Renton's Sunset Area residents; and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued a
Notice of Fund Availability for the Choice Neighborhoods Implementation (CNI) Grant Program
and applications are due June 28, 2016; and
WHEREAS, the purposes of the CNI funds are to: (1) replace distressed public housing
and assisted housing with high quality mixed income housing, (2) improve educational
outcomes and intergenerational mobility for youth and their families and (3) create the
conditions necessary for public and private investment in distressed neighborhoods; and
WHEREAS, the City and Renton Housing Authority have partnered with the King County
Housing Authority to apply for the CNI grant and, if successful, for King County Housing
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RESOLUTION N0. 4290
Authority to administer the CNI grant and use the majority of the CNI funds to build mixed
income housing primarily in the Sunset Area of Renton; and
WHEREAS, the City is working with the Renton Housing Authority, the King County
Housing Authority, the Renton School District, Neighborhood House, and other public and
private entities to create a HUD CNI grant application for the Sunset Area Transformation Plan.
The CNI grant would potentially provide up to $30 million to support the Sunset Area
Community Revitalization efforts;
WHEREAS, the City, the Renton Housing Authority, and the Renton School District have
taken significant steps towards planning and implementing substantial housing and
neighborhood improvements already in the Sunset Area, including: (i) construction completed
for the Meadow Crest Early Learning Center, the Meadow Crest Playground, the Renton
Highlands Library, 26 units of new affordable housing, the Harrington Green Connection and
water main improvements, and the Sunset Terrace Regional Stormwater Facility; and (ii)
relocation of residents from the Sunset Terrace distressed public housing development;
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
RESOLVE AS FOLLOWS:
SECTION I. The above recitals are found to be true and correct in all respects.
SECTION II. The Mayor is authorized to (i) apply for funds and prepare a U.S. HUD CNI
grant application for up to $30 million for the Sunset Area Transformation Plan in cooperation
with the King County Housing Authority and the Renton Housing Authority; (ii) sign all
certifications and provide all information required by HUD for the CNI application for the Sunset
Area Transformation Plan; and (iii) sign the Memorandum of Understanding among the City,
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RESOLUTION N0. 4290
Renton Housing Authority, and King County Housing Authority for the CNI grant for the Sunset
Area Transformation Plan in substantially the same form as attached. The Mayor is further
authorized for the City to be a Co-Applicant and the Neighborhood Lead for the CNI application
with the Renton Housing Authority as a Co-Applicant and the King County Housing Authority as
the Lead Applicant and the Housing Implementation Entity, a role to be fulfilled in conjunction
with the Renton Housing Authority if the CNI funds are awarded.
PASSED BY THE CITY COUNCIL this 20 th day of June , 2016.
Jas n A. Seth, City Clerk
APPROVED BY THE MAYOR this 20th day of June , 2016.
�-�
Denis Law, Mayor
Approved as to form:
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Lawrence J. Warren, City Attorney ^� ���� ��y`"_
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RESOLUTION NO. �290
Memorandum of Understanding
Among
City of Renton, Housing Authority of the County of King
and Housing Authority of the City of Renton
Choice Neighborhoods Implementation Grant
for Sunset Area Transformation Plan
THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made this_day of
June, 2016 by and among the City of Renton, a municipal corporation of the State of Washington
("City"), the Housing Authority of the County of King ("KCHA"), a municipal corporation, and
the Housing Authority of the City of Renton, a municipal corporation ("RHA") (individually a
"Party" and collectively, the "Parties").
WHEREAS,the United States Department of Housing and Urban Development
("HUD") has established the Choice Neighborhoods Implementation ("CNI") grant program to
support locally driven solutions for transforming distressed neighborhoods using place-based
strategies to address the interconnected challenges of poor quality housing, inadequate schools,
poor health, high crime and lack of capital.
WHEREAS,the Parties desire to revitalize the Sunset Area neighborhood, a severely
distressed community in northeast Renton and pledge to work together to the benefit of the
Sunset Area residents, the community and the City, and these revitalization efforts have been
detailed in the Sunset Area Transformation Plan (the "Plan").
WHEREAS,the Parties intend to submit an application(the "Application")to HUD for a
CNI Grant (the "Grant") in accordance with FY2016 Choice Neighborhoods program. KCHA
will be the Lead Applicant and Housing Implementation Entity, the City will be the
Neighborhood Entity and a Co-Applicant and RHA will be a Co-Applicant and all three of the
Parties, in accordance with CNI requirements, will be jointly responsible for performance of the
Grant.
WHEREAS, at the time of the Grant award, HUD will execute a CNI Grant agreement
(the "CNI Grant Agreement") with the Parties and this MOU and any further clarifications by the
Parties and/or HUD will be incorporated into the CNI Grant Agreement with HUD in a manner
acceptable to all Parties.
NOW, THEREFORE, in consideration of the foregoing recitals and underlying
promises, which the Parties agree to be good and valuable consideration, and in compliance with
the requirements of the FY2016 Notice Of Funding Availability for the CNI Grant (the
"NOFA"), the Parties hereby agree as follows:
A. Commitments of the Parties
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RESOLUTION N0. 4290
1) The Parties each acknowledge and certify that it:
a)has reviewed the NOFA;
b) is fully committed to the goals and requirements of the NOFA, the Application,
the requirements of the Grant, and this MOU; and
c) will take all actions necessary to effectuate the requirements of the Grant, if
awarded, in accordance with HUD requirements.
2) Commitment to Work Collaboratively. The Parties acknowledge and certify as to
their commitment to work collaboratively throughout the entirety of the Grant period and to
work cooperatively toward the successful achievement of the Grant's goals and objectives.
3) Incorporation of NOFA and Grant Agreement Requirements. The Parties intend
that this MOU shall conform to and satisfy all requirements of the NOFA. In the event of any
inconsistency between any NOFA requirement and the provisions of this MOU,this MOU shall
be construed to incorporate a provision satisfying such NOFA requirement(s). In addition, the
Parties agree to amend this MOU to comply with the provisions of the HUD Grant Agreement, if
necessary, should a Grant be awarded.
B. Responsibilities of the Parties
1) Lead Applicant.
• As Lead Applicant, KCHA shall be the primary entity responsible for
implementing all activities in the Plan and shall oversee and coordinate the work
of the City and RHA, and in conjunction with the City and RHA, oversee and
coordinate the work of other entities engaged to implement the Plan.
• KCHA shall oversee the hiring of a project implementation team to ensure that all
activities are implemented consistent with HUD's NOFA and regulations. KCHA
shall work with the City and RHA to secure HUD approval for all Project phases
and to submit all required reports to HUD within the timeframes laid out in the
Grant Agreement.
• KCHA shall organize and lead regular team meetings with all principal team
members throughout the Grant period to ensure all aspects of the Plan are
implemented successfully and in accordance with the implementation schedule.
• KCHA shall administer the CNI exterior home improvement and weatherization
assistance program to homeowners and rental property owners in the target
neighborhood.
• KCHA will oversee the design and administration of a reporting and evaluation
system to provide all Grant reports in accordance with HUD policies and
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RESOLUTION N0. 4290
regulations and to assure that Grant goals and objectives are either fully met, or
adapted, as needed to improve service levels and resident outcomes. KCHA will
oversee the completion of a mid-Grant and final Grant evaluation.
2) Housing Implementation Entity.
• As Housing Implementation Entity, KCHA is responsible for the successful
implementation of the Housing component of the Plan, including overseeing the
development activities.
• KCHA shall assume financial responsibility for the development of the Housing
phases by ensuring that all financing is secured and by offering completion and
long-term operating guarantees as requested by project investors.
• KCHA shall assist and mentor RHA in building RHA's internal housing finance
and development capacity.
• KCHA shall issue the tax-exempt bonds necessary to finance the housing
developments included in the Plan and shall work with RHA to secure allocations
of Low-Income Housing Tax Credits and any other financing needed.
• KCHA shall provide asset management for the housing projects and assist RHA
in developing its own asset management capacity. KCHA shall ensure that
appropriate property management services are provided for each property.
• KCHA shall provide 12 Section 8 project-based vouchers to be used for Sunset
Terrace replacement units. These units shall be located in projects located within
25 miles of the Sunset Terrace site in neighborhoods that offer access to economic
opportunities and public transportation and be accessible to social, recreational,
educational, commercial, health facilities and services, and other municipal
services and facilities that are comparable to those that will be provided in the
target neighborhood. The units shall not be located in projects that are in areas of
minority concentration, as defined by HUD, nor in areas with a poverty rate above
40 percent.
3) Neighborhood Implementation Entity.
• As Neighborhood Implementation Entity, City is responsible for coordinating,
overseeing and implementing the Neighborhood Strategy and, in particular, the
Critical Community Improvements ("CCI") included in the Plan. The CCI include
the development of Sunset Neighborhood Park, street and pedestrian
improvements, installation of public art, rehabilitation of the former public library
into the new community service center, coordination of a homeownership
development program and fa�ade improvements for the World War II era
duplexes in the neighborhood. City shall be responsible for securing the necessary
funds to carry out the Neighborhood Strategy and CCI and ensuring their
successful completion in accordance with HUD policies and regulations.
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RESOLUTION N0. 4290
• City shall provide regular reports to KCHA on status of completion of the CCI
and the achievement of ineasurable objectives included in the Grant. City shall
provide KCHA with documentation of the costs incurred and funds leveraged
from these activities.
4) RHA Responsibilities.
• As Co-Applicant, RHA shall assist KCHA in financing and developing the
housing developments included in the Plan. RHA shall provide or oversee
property management services to the housing developments and assist KCHA in
the asset management activities.
• RHA shall contribute $8,260,000 in funding towards the developments in the
Housing Strategy and $1,728,955 in funding the Neighborhood Strategy. RHA
shall provide project-based Section 8 assistance for 21 of the housing units and
work with HUD to activate 45 units of public housing operating assistance for the
replacement units in the Housing Strategy.
• RHA shall oversee the day to day activities to design and renovate the former
public library into the new community service center.
• RHA shall collaborate with the Homestead Community Land Trust to oversee the
day to day activities of the affordable homeownership development program.
• RHA shall provide KCHA with the tenant data needed to report to HUD on the
achievement of ineasurable objectives included in the Grant. RHA shall provide
KCHA with documentation of funds it leverages in completing the Grant
activities.
• RHA shall provide office space and administrative support to any KCHA staff
hired to implement Grant.
• RHA shall expand its organizational knowledge and capacity in the areas of
affordable housing finance, development and asset management.
C. Duration of this MOU. This MOU shall commence on June 24, 2016 (the `'Effective
Date") and shall continue until the end date of the Grant as provided in the Grant Agreement. It
is understood and acknowledged by the Parties that the services described above are expected to
be completed within this time period, provided, however, in the event the Parties are not selected
for a CNI Grant for funding year FY2016, then any Party may terminate its involvement in this
MOU by written notice and the entire MOU shall thereafter terminate. Additionally, the Parties
may renew or otherwise extend this MOU in accordance with applicable law at any time.
D. Termination of MOU and Survival. The Parties shall each have the right to terminate
this MOU for cause, effective within thirty (30) days after the receipt of written notice by the
Party of its intent to terminate and the reasons therefore. A Party shall have the opportunity to
respond to the written notice within five (5)business days after the receipt of said notice. A
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RESOLUTION N0. 4290
Party shall have the opportunity to cure any breach of this MOU or other cause forming the basis
of the termination, as provided in the written notice, within fifteen (15) business days after
receipt of the written notice, or as otherwise agreed to by the Parties. All representations and
warranties and all responsibilities regarding record retention, access and ownership, cooperation
with OIG investigations, indemnification and payment for services rendered shall survive the
termination of this MOU and continue in full force and effect.
E. Liability Among the Parties. Unless expressly provided to the contrary, no Party assumes
liability for the acts or omissions of the other Parties or their agents and nothing in this MOU
shall be construed to extend the immunities of one Party and its agents to any other Party(ies) or
its agents. All Parties shall retain all immunities, defenses, rights and remedies available at law
and in equity.
F. Compliance with Law. The Parties shall each comply with all federal, state, and local
laws regarding discrimination and shall prohibit unlawful discrimination on the basis of race,
creed, color, gender, gender identity or expression, sexual orientation, national origin, disability,
age, political affiliation, marital status, source of income, and religion.
G. General Provisions
1) Assignment. This MOU is personal to each of the Parties hereto, and may not be
assigned without the prior written approval of the other Parties hereto.
2) Governing Law. This MOU shall be construed and enforced in accordance with
the laws of the State of Washington, without regard to conflicts of law provisions.
3) Notice. Any communication or request required or permitted hereunder shall be
in writing and delivered in person or by certified mail, return receipt requested, as follows:
If to the City: C.E. "Chip" Vincent, Administrator
Department of Community & Economic Development
City of Renton
1055 South Grady Way, 6th Floor
Renton, WA 98057-3232
If to the KCHA: Stephen Norman, Executive Director
King County Housing Authority
600 Andover Park W
Seattle, WA 98188
If to the RHA: Mark Gropper, Executive Director
Renton Housing Authority
2900 NE l Ot" Street
Renton, WA 98056
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RESOLUTION N0. 4290
Notices shall be effective when received by each of the above-referenced individuals at
the addresses specified above. Each Party shall be responsible for notifying the other in
writing that references this MOU of any changes in the respective addresses set forth
above. Nothing contained in this Article shall be construed to restrict the transmission of
routine communications between and among representatives of the Parties.
4) Entire Agreement; Amendment; Counterparts. This MOU sets forth the entire
agreement between the Parties relative to the subject matter hereo£ No representation,
promise or condition, whether oral or written, not incorporated herein shall be binding upon
any Party to this MOU. No waiver, modification or amendment of the terms of this MOU
shall be effective unless made in writing and signed by an authorized representative(s) of
the Party sought to be bound thereby. This MOU may be signed in counterpart.
5) No Third Party Beneficiaries. This MOU is entered into for the exclusive benefit
of the Parties, and the Parties expressly disclaim any intent to benefit anyone not a party
hereto.
6) Time is of the Essence. The Parties each acknowledge and agree that time is of
the essence in the performance of this MOU.
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RESOLUTION N0. 4290
IN WITNESS WHEREOF, the Parties have duly executed this MOU on or as of the date first
written above.
KING COUNTY HOUSING AUTHORITY
Stephen Norman, Executive Director
RENTON HOUSING AUTHORITY
Mark Gropper, Executive Director
CITY OF RENTON
Denis Law, Mayor
APPROVED AS TO FORM: ATTEST:
City Attorney Jason Seth, City Clerk
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