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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 1 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 2 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, 3 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: .,��ei,.;i`:4;�����,�`i�i!b+Tt�.� \,\`��`. �.y�+ •`��p j%'`/����%;,, +C�A���'� ~�,���r �� a/���' �`` � _ Lawrence J. Warren, City Attorney ^� ���� ��y`"_ � � RES:1708:6/2/16:scr �- d� � '��';��,,�����`=}"��' 4 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 5 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 6 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. 7 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 8 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 9 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. 10 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 11 (f 11 a �_ " ' �--1YE12381]S2"_.�_'� t_.___,Z _ S"'� i j � i--_ w /l .'. %,f, _ N c� , i Q : � � - ` ' , Z 1 W; � I � n,�'-�nn,�--__, '' � �� � �'� ID, `�~ W ; � '-y ,� ,� W � i 21S�13W � ,' y� � -Z�D�1` � ? , � ( ; ���; r� � ', ' . ` ; �� i i I � l '''�''' ; �—,-- __.�...� _. . _ .�... � ---__ �-� . , �� —- �_� —�_ — �iE;�o___-- ---- _��dz� i I �'i �.�tr�r' � L_, ��. -� ,. � _� -� ! � i �'_20_TEZ�t� ' ��=t�--..�. ���� ,,� � � � �I � ;��, � ( � N 1 L �+ � � ( I. � �� � ' ' � ��'�� �� 1dE�/bTHPL � Ma�ark ek _-¢� �J ti� f � �� � ' �'�+ �% . � •�1 �i {t 1 ,�j�� � i l��) �S�(� �� ��� � �'`' � t , _ � f ; � ' _-, NE 98TN� tx — 'S , , l �``; `..�� t �-. 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