>>> THANK YOU VERY MUCH FOR
JOINING. THE TIME IS 9:31 A.M.
AND THE DATE IS SEPTEMBER 10th.
THE FINANCE AND COMMITTEE
MEETING WILL COME TO ORDER.
MADAME CLERK, PLEASE CALL THE
ROLE.
>> HERBOLD?
HERBOLD?
>> HERE.
>> COUNCIL PRESIDENT GONZALEZ.
>> HERE.
>> LEWIS?
>> PRESENT.
>> COUNCILMEMBER STRAUSS?
>> PRESENT.
>> CHAIR MOSQUEDA?
>> PRESENT.
>> MADAM CHAIR, THAT IS FIVE
PRESENT.
>> EXCELLENT.
THANK YOU ALL FOR JOINING US
TODAY.
WE HAVE EVERYBODY FROM
COMMITTEE WITH US TODAY SO
THANK YOU AGAIN FOR YOUR TIME
THIS HOLIDAY WEEK AS WE HAVE
MOVED OUR FINANCE AND HOUSING
MEETING TO A FRIDAY MORNING.
WE WILL BE SURE TO END BY NOON
TODAY.
THANKS AGAIN FOR YOUR
PARTICIPATION IN TODAY'S
SESSION.
IN FRONT OF US TODAY WE HAVE A
DISCUSSION ON THE STRATEGIC
INVESTMENT PROVISO. IT IS A
PIECE OF LEGISLATION THAT WOULD
ALLOW FOR $30 MILLION IN THE
ACQUISITION FUND.
IT WAS APPROVED IN THE 2021
BUDGET TO BE APPLIED TO VARIOUS
PROJECTS FOR OUR BIKE PARK
COMMUNITY.
THERE IS A COMMUNITY ADVISORY
GROUP THAT HAS BEEN WORKING ON
DEVELOPING RECOMMENDATIONS
ABOUT WHICH PROJECTS TO FOCUS
ON AND WE WILL HAVE A BRIEFING
AND DISCUSSION ON THAT.
THESE FUNDS ARE PERSONNEL. WE
WILL HAVE A BRIEFING AND
DISCUSSION AND POSSIBLE VOTE ON
THE LONG ANTICIPATED
MULTIFAMILY TAX EXEMPTION
ANNUAL REPORT AND EXTENSION
LEGISLATION FROM THE OFFICE OF
HOUSING.
AGAIN, I WANT TO THANK THE
PARTNERS AT THE OFFICE OF
HOUSING THAT HAVE BEEN EAGERLY
ANTICIPATING THE OPPORTUNITY TO
PRESENT THAT INFORMATION IN OUR
COMMITTEE TODAY.
THE MAJORITY OF THE MEETING
WILL BE FOCUSED ON THOSE PIECES
OF LEGISLATION.
THERE IS NO OBJECTION, TODAY'S
AGENDA IS ADOPTED.
HEARING NO OBJECTION, TODAY'S
AGENDA IS ADOPTED.
>>> LET'S BEGIN WITH PUBLIC
COMMENT.
I APPRECIATE EVERYONE'S
OPPORTUNITY TO PARTICIPATE IN
OUR FINANCE AND HOUSING
COMMITTEE MEETINGS REMOTELY.
WE PUBLISH A LINK TO OUR WEBSITE
TWO HOURS PRIOR TO THE START OF
OUR MEETING SO PEOPLE CAN SIGN
UP. AS USUAL WE WANT TO MAKE
SURE EVERYONE HAS THE CHANCE TO
PROVIDE PUBLIC COMMENT AT THE
BEGINNING OF OUR MEETING.
BEFORE I READ THE SCRIPT ABOUT
THE PROCESS FOR ENGAGING IN
PUBLIC COMMENT THIS MORNING, I
WANT TO CONFIRM I DO NOT SEE
ANYBODY LISTED FOR PUBLIC
COMMENT.
I JUST WANT TO CONFIRM THAT IS
ACCURATE FROM OUR TEAM IN THE
CLERK'S OFFICE.
>> WE HAVE ONE PUBLIC COMMENT
REGISTRANT.
>> YOU DO?
OKAY, I DO NOT SEE THE PERSON
ON MY LIST BUT I WILL GO AHEAD
AND OPEN A PUBLIC COMMENT AT
THIS TIME.
THANK YOU TO ALL THAT HAVE
SIGNED UP FOR PUBLIC COMMENT.
YOU WILL HEAR TWO -- YOU HAVE
TWO MINUTES TO SPEAK AND YOU
WILL HEAR A CHIME AT THE END OF
YOUR ALLOTTED TIME.
THAT MEANS THERE IS ABOUT 10
SECONDS TO WRAP UP. WE
APPRECIATE YOU DIALING IN
TODAY.
AFTER YOU HAVE A CHANCE FOR
PUBLIC COMMENT, THERE ARE
VARIOUS LISTEN IN OPTIONS
ESTED ON THE AGENDA, INCLUDING
THE SEATTLE CHANNEL.
GO AHEAD AND HAVE THAT ONE
INDIVIDUAL SHARE THEIR NAME AND
WE WILL GET STARTED.
GOOD MORNING.
>> GOOD MORNING,
COUNCILMEMBERS.
CAN YOU HEAR ME?
>> I DO HEAR YOU.
IS THIS MISS NATALIE?
>> THIS IS.
GOOD MORNING.
THANK YOU FOR GIVING ME THE
OPPORTUNITY TO COMMENT THIS
MORNING.
I AM REPRESENTING THE REAL
ESTATE ASSOCIATION WITH
HUNDREDS OF MEMBERS IN SEATTLE.
WE WANT TO THANK COUNCILMEMBER
MOSQUEDA AND HER STAFF AS WELL
AS THE OFFICE OF HOUSING FOR
WORKING WITH US ON THE
LEGISLATION BEFORE YOU TODAY.
I BELIEVE IT IS 120156. AS THE
FIRST FEW PROJECTS PREPARED TO
COME TO AN END OF THE PROGRAM,
WE HAVE A SHARED GOAL WITH THE
CITY TO MAKE SURE WE DO NOT
LOSE AFFORDABLE HOUSING UNITS
AND ALL PARTICIPANTS CHOOSE TO
RENEW AND STAY IN THE PROGRAM.
WE BELIEVE THIS LEGISLATION
MOVES US SOLIDLY IN THAT
DIRECTION.
QUARTERLY CHECK INS ALLOW US TO
PIVOT. AGAIN, APPROACHING THE
12 YEAR MARK FOR THE FIRST SET
OF PARTICIPANTS IS A FIRST.
BEING FLEXIBLE WILL BE
IMPORTANT AS WE MOVE FORWARD.
THANK YOU AGAIN TO THE OFFICE
OF HOUSING FOR WORKING WITH US
ON THIS IMPORTANT LEGISLATION.
THANK YOU.
>> THANK YOU VERY MUCH,
NATALIE.
I APPRECIATE YOU DIALING IN
THIS MORNING.
I'M SORRY I DIDN'T SEE YOU ON
MY LIST. I'M GLAD YOU WERE ABLE
TO PROVIDE THE PUBLIC
TESTIMONY.
AT THIS POINT I WILL PAUSE TO
SEE IF ANYONE ELSE SIGNED UP
BEFORE WE CLOSE PUBLIC COMMENT
THIS MORNING.
>> THERE ARE NO OTHER PUBLIC
COMMENT REGISTRANT'S.
>> THANKS, EVERYBODY.
THIS IS THE END OF PUBLIC
COMMENTS.
IF YOU WANTED TO SPEAK TO
ANYTHING ON THE AGENDA TODAY
AND DIDN'T HAVE A CHANCE TO
CALL IN, YOU CAN ALWAYS EMAIL
US AT COUCIL.SEATTLE.GOV.
>>> LET'S MOVE INTO THE FIRST
ITEM OF BUSINESS ON TODAY'S
AGENDA.
>> AGENDA ITEM NUMBER ONE,
STRATEGIC INVESTMENT FUND
PROVISO LIFT FOR BRIEFING AND
DISCUSSION.
>> WONDERFUL.
I SEE OUR TEAM FROM CENTRAL
STAFF HERE. THANKS SO MUCH TO
TRACI RATZLIFF AND LISH
WHITSON FOR BEING HERE.
WE ALSO WANT TO WELCOME GIUILIA
AND UBAX AS WELL.
I AM HAPPY TO HAVE YOU ALL
START US OFF AND IF DIRECTOR
QUIRINDONGO JOINS US, I WILL
BE SURE TO ANNOUNCE THAT AS WELL
. VERY APPRECIATIVE OF THE WORK
DONE BY THE DEPARTMENT. I'M
EXCITED TO HAVE THIS PIECE OF
LEGISLATION IN FRONT OF US
TODAY.
I WILL SAVE MY REMARKS FOR AFTER
CENTRAL STAFF DOES ANY COMMENTS
THEY MIGHT HAVE AND I WILL TURN
IT OVER TO THE DEPARTMENT.
ANY COMMENTS FROM CENTRAL
STAFF?
>> JUST TO REMIND YOU, THE
STRATEGIC INVESTMENT FUND WAS
FIRST ESTABLISHED IN THE 2020
ADOPTED BUDGET, REMEMBERING IT
WAS BASED ON THE ANTICIPATED
SALE FROM PROPERTIES.
THE 2021 PROPOSED BUDGET WAS
PROPOSED TO COUNCIL LAST YEAR
AND THE MONEY WAS NOT INCLUDED
IN THE BUDGET BUT WAS
REALLOCATED TO OTHER
PRIORITIES.
THE COUNCIL WANTED TO HOLD TO
THE ORIGINAL PROMISE OF 2020 TO
ADD BACK IN THE $30 MILLION FOR
THE STRATEGIC INVESTMENT FUND
AND THE EXECUTIVE WENT FORWARD
WITH IMPLEMENTING THAT PROPOSAL
AS THE COUNCIL HAD INTENDED. I
THINK THEY WILL DO A GOOD JOB
TALKING ABOUT THE PROCESS THEY
WENT THROUGH, WHICH WAS AN
EXCELLENT ONE. CENTRAL STAFF
HAD A CHANCE TO PARTICIPATE IN
THAT PROCESS AND WAS REALLY
IMPRESSED WITH HOW WELL IT WENT.
>> THANK YOU VERY MUCH FOR THAT
CONTEXT.
LISH ANYTHING ELSE FROM YOU?
>> NO.
>> WONDERFUL.
BEFORE I TURN IT OVER TO UBAX
AND GIUILIA WHO ARE VERY MUCH
RESPECTED AMONG COMMUNITY
MEMBERS FOR THEIR PARTICIPATION
IN THIS EFFORT BUT ALSO PRIOR
TO THEIR WORK IN THE CITY, I
THINK THIS WILL BE AN EXCITING
OPPORTUNITY FOR US TO SHOWCASE
THE REALLY COLLABORATIVE WORK
DONE WITH COMMUNITY PARTNERS.
THIS IS ALSO A HUGE MILESTONE
FOR US AND A LARGE PROCESS AND
YEARS OF ADVOCACY FROM
ORGANIZATIONS THAT HAVE WORKED
VERY HARD OVER THE YEARS TO
MAKE SURE WE MAKE GOOD ON OUR
PROMISES AND WHEN THERE IS A
PUBLIC PIECE OF LAND, IF IF
THERE IS THE OPPORTUNITY FOR US
TO USE THAT FOR THE PUBLIC
GOOD, WE SHOULD.
THAT SALE WENT THROUGH AND
COMMUNITIES SAID WE WANT TO
HAVE A PUBLIC BENEFIT FROM THIS
AS WELL.
HAVING THESE DOLLARS GOING
TOWARD MAKING SURE WE ARE
INVESTING IN COMMUNITIES,
ESPECIALLY COMMUNITIES THAT ARE
HARDEST HIT BY DISPLACEMENT WAS
AN IMPORTANT COMPONENT OF THE
SALE.
WE ALSO HAVE BEEN WORKING TO
MAKE SURE THAT WE ARE CREATING
MORE OPPORTUNITIES TO HOLD THE
PUBLIC HAND AS A RESULT OF THE
SALE IN 2018 IN 2019 WHEN THE
CITY WAS NEGOTIATING, WE HEARD
FROM ADVOCATES THAT WE SHOULD
BE HOLDING ON TO PUBLIC LAND
INSTEAD OF SELLING IT TO THE
HIGHEST BIDDER AND WE SHOULD BE
MAKING THE REQUEST FOR THOSE
PUBLIC LANDS TO BE SHARED AMONG
THE COMMUNITY. EXCUSE ME, AMONG
THE CITY TO MAKE SURE WE CAN
DEVELOP THINGS LIKE HOUSING.
IF THE CITY DOESN'T WANT TO USE
IT AND WE DON'T HAVE THE NEED
FOR THE SURPLUS LAND, WE SHOULD
BE PRIORITIZING IT FOR
COMMUNITIES WHO ARE INTERESTED
IN BUILDING AFFORDABLE HOUSING
AND COMMUNITY ASSETS.
I WAS REALLY PROUD TO NOT ONLY
HAVE WORKED TO SUPPORT THIS
WORK TO MAKE SURE THE SALE DID
HAVE THIS IMPORTANT COMMUNITY
ASSETS BEING CREATED OUT OF THE
SALE, BUT ALSO MAKING SURE WE
FOLLOW UP ON RESOLUTION 31837,
WHICH IS FOR SURPLUS PROPERTIES
THAT ARE NOT CITY.
WHEN THERE IS SURPLUS PROPERTY
IN THE CITY, WE PRIORITIZE
MAKING SURE THERE IS AFFORDABLE
HOUSING AND COMMUNITY LEADER
DEVELOPMENT.
I AM VERY EXCITED THAT THIS
PIECE OF LEGISLATION IN FRONT
OF US INCLUDED USING PROFITS
FROM THE SALE TO INCLUDE A
LARGE RANGE OF PUBLIC BENEFITS.
WE HAVE SEEN THOSE ON-SITE.
CONSUL PRESIDENT GONZALEZ AND I
HAD ADVOCATED FOR THERE TO BE
MORE PUBLIC BENEFITS LIKE
CHILDCARE CENTERS WITH THE
FOOTPRINT. WE USE MORE OF THOSE
PROCEEDS FOR THINGS LIKE
INVESTMENTS WE WILL TALK ABOUT
TODAY.
IN 2019 IN ADDITION TO THE
ALLOCATION THE COUNCIL PASSED A
PROVISION REQUIRING $30 MILLION.
THERE IS TRULY COMMUNITY DRIVEN
STRATEGIC ACQUISITION BEING
DEVELOPED AS A RESULT OF THESE
FUNDS. I AM EXCITED TO HEAR
MORE ABOUT THE PROJECTS YOU
SELECTED.
I KNOW YOU HAVE WORKED VERY
HARD AND DILIGENTLY TO FIGURE
OUT HOW TO SPEND THESE DOLLARS
SO WE ARE SPENDING EQUITABE
DEVELOPMENT AND SERVING THOSE
WITH THE HIGHEST RATES OF
DISPLACEMENT ACROSS OUR CITY.
I AM ALSO PROUD THAT THE
COUNCIL REASSERTED USING THESE
DOLLARS, THE $30 MILLION FOR
THE PURPOSE THAT WHAT
ORIGINALLY INTENDED FOR WHEN WE
PASS THE 2021 BUDGET LAST YEAR.
WITH THAT BACKGROUND AND A LOT
OF ANTICIPATION AND EXCITEMENT,
I WILL TURN IT OVER TO OUR
DEPARTMENT REPRESENTATIVES.
I WANT TO THANK UBAX AND
GIUILIA IN ADVANCE.
WE WILL KNOW THE DIRECTOR'S
ATTENDANCE WHEN HE ARRIVES AS
WELL.
THANK YOU FOR BEING HERE TODAY.
>> THANK YOU, COUNCILMEMBER.
IT IS AN EXCITING DAY BECAUSE
WE HAVE A PRESS EVENT
ANNOUNCING $9.8 MILLION FOR THE
FUND THAT WE ARE ABOUT TO MOVE
TO COMMUNITY. HAPPY FRIDAY,
EVERYONE. WE ARE GOING TO TALK
ABOUT THE PROVISO LEFT.
NEXT SLIDE. WE ARE GOING TO
INTRODUCE THE STRATEGIC
INVESTMENT FUND, REVIEW THE
BASELINE CRITERIA THAT WAS USED
AND PROVIDE ADDITIONAL CONTEXT
TO SUPPORT THE OFFICIAL
APPLICANTS.
NEXT?
AS YOU MIGHT HAVE HEARD RIGHT
NOW, THE INVESTMENT FUND IS A
REAL ESTATE ACQUISITION FUND
THAT WILL FUND THE PURCHASE OF
LAND, LAND WITHIN BUILDINGS OR
BUYING A PORTION OF BUILDING
LIKE THE GRAND FLOOR OF
AFFORDABLE HOUSING.
AGAIN, THIS HAS ORIGINATED FROM
THE SALE OF PUBLICLY OWNED
PROPERTY AND COMMUNITIES IN
PLACE. AGAIN, COUNCIL FUNDED
THIS IN THE 2021 BUDGET. I
WANT TO START BY SAYING
DISCRIMINATORY PRACTICES IN
PUBLIC AND PRIVATE INVESTMENTS
HAVE SIGNIFICANTLY IMPACTED
BLACK AND INDIGENOUS
COMMUNITIES AS WELL AS QUEER AND
TRANS AND BIPOC COMMUNITIES.
THE OFFICE OF HOUSING, OFFICE OF
AGRICULTURE, THE DEPARTMENT OF
NEIGHBORHOODS AND CENTRAL STAFF.
LEADERSHIP OF THE AMAZING.
NEXT?
A COMMITTEE REPRESENTING
COMMUNITIES OF RISK OF
DISPLACEMENT AND EQUITABLE
DEVELOPMENT EXPERTS MET
INITIALLY IN 2019 AND CONVENED
IN 2021. THE STRATEGIC
INVESTMENT FUND WILL FUND
PROPOSALS THAT WILL RESPOND TO
IMMEDIATE DISPLACEMENT,
STRENGTHEN RELATIONSHIPS,
COMBINING AFFORDABLE HOUSING
AND OTHER BENEFITS SUCH AS
AFFORDABLE SPACE, COMMERCIAL
SPACE, AND CHILDCARE.
THE PROPOSALS DO NOT NEED TO
INCLUDE ONE OF THESE COMMUNITY
BENEFITS.
ALSO IT INCLUDED EXISTING
FUNDING FOR COMMUNITY
DEVELOPMENT.
NEXT?
IT WAS RELEASED IN EARLY JUNE
AND WAS OPEN FOR SIX WEEKS.
OVER 85 POTENTIAL APPLICANTS.
ONCE THE APPLICATIONS WERE
RECEIVED, THE CITY PREPARED THE
APPLICATIONS FOR REVIEW AND
SENT IT TO THE HR TEAM.
INDIVIDUALS REPRESENTING
COMMUNITIES AT RISK OF
DISPLACEMENT AND EQUITABLE
PRACTITIONERS MADE DECISIONS
BASED ON THIS PROCESS.
IN THE CRITERIA THAT I
MENTIONED EARLIER.
NEXT?
THROUGH THIS FUND THE COMMUNITY
ADVISORY GROUP CONSIDERED
PROPOSALS FOR REAL ESTATE
WHETHER IT IS A VACANT PROPERTY
OR BUYING A PORTION OF UPFRONT
AFFORDABLE HOUSING.
WE CUT THE FUNDING TO $5
MILLION.
THERE WAS NO MINIMUM FUNDING
THRESHOLD.
THE FUNDS COULD BE USED FOR
EXISTING ACQUISITIONS OR
ACQUIRE A PROPERTY IN ITS
ENTIRETY, AS YOU HAVE BEEN
HEARING.
NEXT?
I JUST WANT TO REVISIT THIS MAP
AND SAY THAT THE STRATEGIC
INVESTMENT FUND PROPOSAL FINDS
HIGHLY DISPLACED NEIGHBORHOODS.
LEFT AREAS IN THE RED ON THE MAP
OR AREAS IN BROWN ON THE RIGHT
WITH PROXIMITY TO SIGNIFICANT
LAND OR INVESTMENT. WE WERE
INTENTIONAL TO NOT DEFINE THESE
BECAUSE WE DO NOT WANT TO
EXPLOIT IMPORTANT PROJECTS
BECAUSE OF HOW THE CITY DEFINES
THESE GEOGRAPHIES.
THEY TOLD US HOW THEIR PROPOSED
SITES MET OUR GEOGRAPHIC GOALS.
NEXT?
WHO APPLIED?
COMMERCIAL AND RESIDENTIAL
TENANTS AT RISK OF DISPLACEMENT
, PEOPLE IN THE BIPOC COMMUNITY
. FOR EXAMPLE, LOCALLY OWNED
SMALL BUSINESS IN AN OLDER
COMMERCIAL BUILDING LEARNED
ABOUT THE BUILDING THAT MAY BE
GOING UP FOR SALE.
THEY END UP REACHING OUT TO A
NONPROFIT REAL ESTATE GROUP OR
NONPROFIT AUTHORITY THAT IS
MISSION DRIVEN TO SUPPORT THEIR
DESIRE TO CONTROL THEIR OWN
REAL ESTATE AND TOGETHER THEY
BEGIN A PARTNERSHIP BUT STILL
THEY HAVE A SIGNIFICANT GAP
BETWEEN THEIR RESOURCES AND
APPRAISED VALUE OF THE BUILDING.
WE CAN'T SHARE THE PROJECT
EXAMPLES OR GROUPS THAT ENDED
UP COMING TOGETHER AND APPLYING
FOR THE STRATEGIC INVESTMENT
FUND. I ALSO REALLY WANT TO
HAND IT OVER TO JULIA FROM SLIDE
NUMBER NINE AND JUST RECOGNIZE
HER LEADERSHIP AND BRILLIANCE
IN THIS PROJECT. YEAH, I WILL
HAVE HER TAKE IT FROM HERE.
>> THANKS. SO WE TALKED A
LITTLE BIT ABOUT THE COMMUNITY
ADVISORY GROUP WHO WAS
REPRESENTED, BUT TO GIVE YOU A
DIFFERENT SENSE OF ALL OF THE
DIFFERENT GROUPS WE HAD
COMMUNITY-BASED ORGANIZATIONS,
EQUITABLE DEVELOPMENT
PRACTITIONERS, PHILANTHROPY
FUNDERS AND MADE SURE TO HAVE
REPRESENTATION FROM THE
EQUITABLE COMMUNITIES BY
EQUITABLE DEVELOPMENT INITIATIVE
, TASK FORCE, AND SPACE AGENCY
WITH THE OFFICE OF CULTURE SO
WE HAVE STRONG TIES ACROSS ALL
OF THE EFFORTS OF THE CITY TO
ADDRESS DISPLACEMENT AND THROUGH
PROJECTS IN LAND ACQUISITION.
THIS DIAGRAM REPRESENTS THE
PROCESS THAT WE WENT THROUGH
HERE ON JULY 14th WE RECEIVED
100 APPLICATIONS TOTALING OVER
$330 MILLION IN ASKS. IT IS
INDICATIVE OF THE DEMAND AND
THE NEED FOR THESE TYPES OF
RESOURCES FOR COMMUNITY-BASED
ORGANIZATIONS, TENANTS, SMALL
BUSINESSES TO BE ABLE TO SECURE
PROPERTY, TO SECURE THEIR
COMMUNITIES.
ONCE WE RECEIVED THAT
APPLICATION, WE ADVANCED ALL OF
THEM TO THE COMMUNITY ADVISORY
GROUP WHO THEN SIGNED CONFLICT
OF INTEREST AND NONDISCLOSURE
AGREEMENTS. FOR THE FIRST ROUND
OF REVIEW, WE SPLIT THE
COMMUNITY ADVISORY GROUP INTO
FOUR GROUPS TO MANAGE CONFLICTS
AND ASSIGN REASONABLE READING
LISTS.
EACH GROUP REVIEWED 25
APPLICATIONS AND ADVANCED 5 TO
THE NEXT ROUND. THEN EVERYBODY
READ THE REMAINING OBSERVATIONS.
WE HAD A CONSENSUS PROCESS TO
IDENTIFY THE $30 MILLION. I
THINK IT IS IMPORTANT TO NOTE
THAT ALL OF THE APPLICATIONS
THAT WERE ADVANCED FROM THE
FIRST DAY TO THE SECOND DAY
WERE EXTREMELY QUALIFIED.
IF WE HAD AN ADDITIONAL $50
MILLION WE WOULD HAVE FUNDED
ALL OF THEM.
IT WAS A VERY HARD PROCESS. TO
GIVE YOU A SENSE OF WHERE THE
CONVERSATION, YOU KNOW, THE
FOCUS OF THE CONVERSATION, THIS
IS OUR EVALUATION CRITERIA
RUBRIC THAT WE PUBLISHED IN OUR
GUIDANCE DOCUMENTS. IT SET
ALONG THE RFP ON THE WEBSITE SO
WE COULD HAVE TRANSPARENCY ON
WHAT COMPRISED AN EXCELLENT
APPLICATION THAT WOULD HAVE A
HIGH LIKELIHOOD OF GETTING
FUNDING AND WHAT MIGHT BE A
MORE LOWER SCORING APPLICATION
THAT MIGHT NOT BE FUNDED.
SOME OF THE LANGUAGE WE ENDED
UP FOCUSING A LOT OF THE
CONVERSATION ON THAT THESE WERE
TRANSFORMATIONAL ONCE IN A
GENERATION OPPORTUNITIES FOR
ASSET AND WEALTH BUILDING. THEY
HAD A SYSTEMIC COMMUNITY IMPACT.
FACTORED IN CAPACITY BUILDING,
SO WE WERE NOT JUST FUNDING
PROJECTS BUT WE WERE ABLE TO
FUND PROJECTS THAT WERE STILL
IN THE ENVISIONING STAGE.
THAT HAD AN IMPACT BEYOND THIS
ONE PROJECT AND AMPLIFYING
SYSTEMIC RESOURCES FINANCIAL AND
NONFINANCIAL. THE COMMUNITY
ADVISORY GROUP RECOMMENDED
AWARDING FUNDS TO 13 PROJECTS
ACROSS THE CITY, LIKE CENTRAL
CENTRAL AREA REPRESENTING BLACK-
LED ORGANIZATIONS, INDIGENOUS
LED ORGANIZATIONS OR MULTIRACIAL
BIPOC COMMUNITY ORGANIZATIONS.
IT INCLUDES AFFORDABLE HOUSING
FOR FAMILIES AND SENIORS,
CHILDCARE, CULTURAL SPACE,
PRESERVATION AND CREATION,
COMMUNITY SPACE PRESERVATION,
OPEN SPACE, AND HISTORIC
PRESERVATION.
AND JUST A NOTE FOR THIS GROUP
BECAUSE I'M SURE YOU WILL HAVE
BURNING QUESTIONS ABOUT WHO THE
AWARDEES ARE, IT IS CONSIDERED
SENSITIVE REAL ESTATE
INFORMATION THAT WE WILL BE
DISCUSSING WITH THE FULL
COUNCIL FOR SEPTEMBER 20th.
WILL BE ABLE TO SEE THE FULL
LIST.
WE HAVE NOT PUBLISHED ANY OF
THE DETAILS IN ORDER TO PROTECT
SOME OF THE SENSITIVE REAL
ESTATE AND ONGOING REAL ESTATE
TRANSACTIONS. THE REASON WE ARE
HERE TODAY IS TO DISCUSS THE
LEGISLATION AND AS MENTIONED IN
THE 2021 ADOPTED BUDGET, THE
COUNCIL APPROPRIATED THE FUNDS
WITH A PROVISO PENDING A
SPENDING PLAN FROM THE
EXECUTIVE AND THE LEGISLATION
DENOTES THE SPENDING PLAN IS
MOVING THE $30 MILLION
ALLOCATED FROM TWO FINANCE
GENERALS TO THE OFFICE OF
COMMUNITY DEVELOPMENT. THERE IS
FURTHER DETAIL ABOUT WE DISCUSS
ABOUT WHO IS DESIGNATED THROUGH
THE RFP PROCESS AND DECISION
MAKING.
ONCE THE PROVISO IS LIFTED, WE
WILL BE CONTACTING AWARDEES. AS
I MENTIONED, AWARDEES WILL HAVE
TO ANNOUNCE PUBLICLY THAT WE
WILL BE ABLE TO ANNOUNCE THE
INDIVIDUAL AWARDS ONCE THE
TRANSACTION IS FINALIZED.
AND THAT'S THE END. I WOULD
LOVE TO HEAR ANY QUESTIONS OR
COMMENTS.
>> I AM NOT SEEING ANY HANDS UP
. I JUST WANTED TO SAY THANK
YOU AGAIN FOR THIS WORK.
COLLEAGUES, AS A REMINDER WE
WILL HAVE ANOTHER COMMITTEE
DISCUSSION AND NEXT VOTE FRIDAY,
SEPTEMBER 17th AS NOTED BY
GIUILIA . WE WILL HEAR MORE
ABOUT THOSE CONFIDENTIAL
MATTERS AND WITH A HOPEFUL VOTE
ON SEPTEMBER 27th SO THAT WE
CAN GET THIS OUT OF OUR HANDS
BY THE END OF THE MONTH.
THANK YOU VERY MUCH FOR
PROVIDING THIS OVERVIEW. ARE
THERE ANY ADDITIONAL QUESTIONS,
COLLEAGUES?
I WOULD LOVE TO KNOW MORE ABOUT
THE ROLE THAT YOU TWO WILL
CONTINUE TO HELP WITH SOME OF
THESE CONTRACTS, GIVEN THE
RELATIONSHIPS THAT YOU HAVE AND
YOUR DETAILED UNDERSTANDING OF
THE AWARDEES. COULD YOU TALK
MORE ABOUT THE ONGOING WORK YOU
MIGHT BE ABLE TO DO AS IT
RELATES TO THESE RECIPIENTS?
>> YES. BOTH OF US AND ACTUALLY
THE TEAM WILL BE PROJECT
ASSISTANCE ON A REGULAR BASIS.
SOME OF THE FOLKS WILL ALSO
HAVE THE EDI CAPACITY BUILDING
FUNDS. WE WILL BE CLOSELY
WORKING WITH THESE GROUPS TO
BRING THEM TOGETHER SO THEY CAN
LEARN FROM EACH OTHER AND TO
CONTINUE WITH THE REGULAR, YOU
KNOW, TECHNICAL ASSISTANCE OF
PROJECT MANAGEMENT THAT WE HAVE
BEEN DOING WITH OTHER PROJECTS.
>> EXCELLENT. THANK YOU.
>> I REMEMBER ASKING ABOUT THIS
WHEN THE CRITERIA WAS
DEVELOPED.
I DON'T KNOW HOW IT WAS RESOLVED
. IT LOOKS LIKE THE GEOGRAPHIC
CRITERIA ALLOWS FOR PROJECTS
THAT ARE EITHER IN AREAS OF
HIGH DISPLACEMENT RISK OR LOW
AXIS OPPORTUNITY.
IT DOES NOT REQUIRE BOTH
CRITERIA BE IN PLACE.
IN MY RECOLLECTION, OH PCD IN
THE PAST IN SOME LAND-USE
DECISIONS HAVE SORT OF MELDED
TWO MAPS AND OVERLAID AREAS OF
HIGH DISPLACEMENT RISK IN THOSE
NEIGHBORHOODS THAT MEET BOTH
CRITERIA. FOR INSTANCE, NOT
RECEIVE A LARGE ONE BECAUSE OF
THE CONCERN THAT A LARGE MH AGE
BUMP WOULD HAVE AN IMPACT ON
THE RESIDENTS OF THE FOLKS WHO
LIVE IN HIGH DISPLACEMENT RISK
AREAS THAT ALSO HAVE LOW AXIS
OPPORTUNITY IS.
CAN YOU CONFIRM THAT IT IS JUST
ONE CRITERIA THAT NEEDS TO BE
IN PLACE?
AND WHAT IS THE THINKING OF NOT
REQUIRING BOTH CRITERIA AND
SORT OF HAVING THAT OVERLAY AND
IDENTIFYING THOSE AREAS THAT
SHARE BOTH TRIGGERS?
>> THAT IS A GREAT QUESTION.
I THINK YOUR UNDERSTANDING IS
CORRECT. WE DO NOT REQUIRE AN
"AND." THERE WAS A CAVEAT THAT
THERE WAS A DISPLACEMENT RISK
TO THE COMMUNITY THAT WAS
APPLYING. DOES THAT MAKE SENSE?
THE IMMEDIATE DISPLACEMENT RISK
WAS A CRITERIA THAT THE
COMMITTEE EVALUATED ON.
I THINK WE MENTIONED BEFORE THAT
WE KNOW THE MAPS DON'T REFLECT
THE FULL NUANCE OF WHAT
DISPLACEMENT LOOKS LIKE IN OUR
CITY. WE WERE VERY CLEAR IN OUR
ONE-ON-ONE MEETINGS. IF YOU ARE
A COMMUNITY AT HIGH RISK OF
DISPLACEMENT, YOU ARE A
COMMUNITY CENTER SMALL BUSINESS
FEELING THE PRESSURE OF RENT
INCREASES, YOU SHOULD APPLY AND
TELL US HOW YOU ARE BEING
IMPACTED BY DISPLACEMENT.
WE RECEVED A HANDFUL OF
APPLICATIONS THAT DID NOT FIT
WITHIN THE HOTSPOTS AND MAP. WE
CAN TALK THROUGH SOME OF THOSE
IN THE EXECUTIVE SESSION.
>> THAT IS SUPER HELPFUL.
I REALLY, REALLY APPRECIATE THAT
. THANK YOU.
>> IT WAS PROBABLY THREE OR
FOUR NEIGHBORHOODS. YOU KNOW,
AREAS LIKE CHINATOWN ARE HIGH
RISK DISPLACEMENT. THE REASON
THEY SHOW UP AS DISPLACED IS
BECAUSE THE COMMUNITIES THERE
THAT TYPICALLY BENEFIT FROM
THESE TYPES OF INVESTMENTS
DON'T HAVE ACCESS TO THEIR JOBS
OR HIGH-RISK DISPLACEMENT OR
THINGS LIKE THAT.
THAT IS WHY WE ENDED UP WITH
THE AND/OR.
>> THANK YOU.
I REALLY APPRECIATE IT.
>> THANK YOU FOR YOUR ANSWERS,
ALL OF THE WORK YOU HAVE DONE.
WILL BE SEE YOU AGAIN NEXT
WEEK?
OKAY, GREAT. WE WILL SEE YOU AT
THE NEXT COMMITTEE MEETING AND
IF THERE ARE ANY QUESTIONS,
JUST NOTE THE TEAM WILL BE BACK
NEXT FRIDAY TO BE THERE FOR
DISCUSSION AND POSSIBLE VOTE.
THANKS FOR ALL OF YOUR WORK AND
CONGRATULATIONS TO THE
COMMUNITY MEMBERS TO BE
ANNOUNCED AT SOME POINT IN THE
NEAR FUTURE.
I'M SURE WE WILL LOOK FORWARD
TO WORKING WITH YOU ON
IDENTIFYING ADDITIONAL
STRATEGIES TO FUND THOSE THAT
DID NOT GET INTO THE FINAL
ROUND.
I CAN ONLY IMAGINE HOW
HEARTBREAKING IT IS TO READ THE
PROPOSALS AND NOT HAVE THE
FUNDS AVAILABLE. I WILL
JUMPSTART WITH SOME OF THE
OTHER INVESTMENTS WE HAVE
COMING THROUGH EQUITABLE
DEVELOPMENT INITIATIVE FROM THE
OFFICE OF HOUSING.
ALONG WITH THE LOCAL
DEVELOPMENT INITIATIVE, I AM
HOPEFUL WE WILL CONTINUE TO SEE
MORE OPPORTUNITIES FOR FUNDING
IN THE FUTURE.
THANK YOU VERY MUCH.
>> THANK YOU.
>>> MADAM CLERK, LET'S MOVE ON
TO ITEMS TWO AND THREE. IF YOU
COULD READ THOSE BOTH INTO THE
RECORD AT THE SAME TIME, THAT
WOULD BE GREAT.
>> COUNCIL BILL 120156, AN
ORDINANCE RELATING TO THE
MULTIFAMILY HOUSING PROPERTY
TAX EXEMPTION PROGRAM. ITEM
NUMBER THREE, RESOLUTION 32017,
A RESOLUTION CALLING FOR
RESEARCH, ENGAGEMENT, AND
PRESENTATION OF THE INFORMATION
TO THE MAYOR AND CITY COUNCIL
ON THE MULTIFAMILY TAX
EXEMPTION PROGRAM PRIOR TO
CONSIDERING THE RENEWAL OF THE
PROGRAM IN 2023 FOR BRIEFING,
DISCUSSION, AND POSSIBLE VOTE.
>> THANK YOU, MADAM CLERK AND
THANK YOU TO THE OFFICE OF
HOUSING. I KNOW YOU HAVE BEEN
ON OUR AGENDA FOR THE LAST TWO
OR THREE TIMES AND
UNFORTUNATELY WE HAVE HAD TO
RESCHEDULE A FEW OF THOSE
MEETINGS, BUT WE ARE HERE TODAY
FOR FINAL PASSAGE ON THESE TWO
ITEMS.
WE HAVE TWO HOURS FOR IT! I
HOPE WE ARE MAKING UP FOR OUR
DELAY BY GIVING ADDITIONAL TIME
TODAY.
I WANT TO NOTE THE IMPORTANCE
OF THIS LEGISLATION. THANK YOU
FOR YOUR WORK. WE HAVE FROM THE
OFFICE OF HOUSING JENNIFER
LABRECQUE WITH US.
TRACI RATZLIFF IS ALSO JOINED
BY JOY HUNT. I WILL HAND IT
OVER TO YOU, JENNIFER.
>> COUNCIL MEMBERS, I WILL LET
JoANNE GO AHEAD AND BEGIN THE
PRESENTATION IN FRONT OF YOU
TODAY.
WE HAVE WORKED REALLY CLOSELY
WITH THE OFFICE OF HOUSING ON
THESE TWO PROPOSALS TO ADDRESS
SOME OF THE QUESTIONS AND
CONCERNS THAT HAVE BEEN RAISED
BY THE STAKEHOLDERS THAT WE ARE
IDENTIFYING TODAY TO ADDRESS
SOME OF THOSE CONCERNS. AGAIN,
OUR VERY FIRST ROUND OF MFTE
EXPIRING. I WILL LEAVE IT TO
YOU AND TO JEN TO GO FORWARD
WITH THE PRESENTATION.
>> I WILL KEEP MY COMMENTS BRIEF
. I WANT TO SAY THANK YOU TO
THE OFFICE OF HOUSING AND TRACI
FOR WORKING WITH ERIN HOUSE ,
WHO SPENT A LOT OF TIME ON THIS
AS WELL.
I AM REALLY EXCITED ABOUT THE
NARROW LEGISLATION WORKING TO
MAKE SURE IT INCLUDED
MONITORING REQUIREMENTS THAT
THIS LEGISLATION WILL HELP TO
ATTRACT HOW THIS IS FUNCTIONING
AND INCLUDING PROJECTS THAT WE
WILL I THINK SEE A HUGE BENEFIT
TO THE CITY.
THANKS FOR ALL OF YOUR WORK.
COLLEAGUES, THIS IS A
CONTINUATION OF PROPOSED --
EXCUSE ME, A CONTINUATION OF
THE REVIEW WE HAD ON THE AGENDA
FROM OUR AUGUST 17th MEETING,
SO YOU HAVE SEEN THE MATERIALS
AND THE PACKET BEFORE AND THIS
IS OUR OPPORTUNITY TO WALK
THROUGH THIS IN GREATER DETAIL.
I WILL TURN IT OVER TO YOU,
JENNIFER.
>> GOOD MORNING, COUNCIL
MEMBERS.
ON CUE FOR HAVING ME BACK TODAY
TO DO A DEEPER DIVE INTO THE
LEGISLATION.
I WILL SHARE MY SCREEN HERE.
SOMEHOW I THINK I ENDED UP AT
THE VERY END, SO GIVE ME A
MOMENT. ALL RIGHT, AGAIN THANK
YOU FOR HAVING ME HERE TODAY.
I AM JENNIFER LABRECQUE, THE
PLANNING AND PROGRAMS MANAGER
OF THE OFFICE OF HOUSING AND
I'M HERE TO DO A DEEPER DIVE
INTO SOME PROPOSED LEGISLATION
TO UPDATE THE MFTE PROGRAM TO
ACCOMMODATE RECENT CHANGES IN
THE STATE LAW.
AS A REMINDER, THE MULTIFAMILY
TAX EXEMPTION PROGRAM PROVIDES
EXEMPTION AND THE ENTIRE
RESIDENTIAL PORTION OF A
PROPERTY OWNER'S TAX BILL AND
RETURN FOR THE PROPERTY OWNER
INCOME EITHER 20 OR 25% OF THE
UNITS.
THE REMAINING 75 OR 80% OF THE
UNITS CAN BE RENTED AT FULL
MARKET RATES.
A TAX EXEMPTION CURRENTLY LASTS
FOR 12 YEARS AND AT THE END OF
THAT 12 YEAR PERIOD OF TIME,
THE AFFORDABILITY RESTRICTIONS
IN THE TAX EXEMPTION END.
THE PROGRAM IS AUTHORIZED UNDER
STATE AND IMPLEMENTED LOCALLY
THROUGH AN ORDINANCE. AS YOU
ALL KNOW, SEVERAL CHANGES WERE
MADE TO THE AND CW AUTHORIZING
THE PROGRAM. DURING THE 2021
LEGISLATIVE SESSION, THE ONES
WE'RE FOCUSED ON TODAY INCLUDE
THAT THERE IS NOW A JURISDICTION
TO PROVIDE A 12 YEAR EXTENSION
OPTION FOR PROJECTS CURRENTLY
PARTICIPATING IN THE PROGRAM.
THERE ARE RELOCATION ASSISTANCE
THAT ALL JURISDICTIONS HAVE TO
REQUIRE AS PART OF THE PROGRAM.
THE RCW ALLOWS FOR A LONGER TAX
EXEMPTION PERIOD FOR CERTAIN
TYPE OF HOMEOWNERSHIP PROJECTS
AND JURISDICTIONS ARE NOW
ALLOWED TO HAVE LABOR EQUITY
REQUIREMENTS AS A CONDITION OF
PARTICIPATION, IF THEY SO
CHOOSE.
WE HAVE CHOSEN IN OUR PROPOSED
LEGISLATION A PRETTY NARROW AND
FOCUSED PPROACH THAT IS REALLY
ABOUT ACCOMMODATING THOSE
CHANGES TO THE RCW THAT ARE
TIME SENSITIVE OR REQUIRED,
THINGS THAT THE JURISDICTIONS
HAVE TO DO AND HAVE TO UPDATE
THEIR TO ACKNOWLEDGE. WE
RECOGNIZE THERE ARE PROGRAMMATIC
GOALS NOT ADDRESSED WITH THE
NARROW PIECE OF LEGISLATION.
PART OF THAT IS BECAUSE THIS IS
A DIFFICULT TIME TO CALIBRATE
OR MAKE CHANGES TO A BUDGET
BASED ASSISTANCE PROGRAM GIVEN
THE UNCERTAINTY IN THE REAL
ESTATE MARKET CAUSED BY COVID.
AS SUCH, WE ARE PROPOSING A
RESOLUTION THAT STATES THE
INTENT TO ADDRESS OTHER
PROGRAMMATIC ISSUES DURING
RENEWAL IN 2023.
THE CURRENT PROGRAM GOES
THROUGH DECEMBER 31st, 2023.
IN 2023, CITY COUNCIL WILL TAKE
UP CONSIDERATION AND THE INTENT
OF SOME OF THOSE PROGRAMMATIC
ISSUES AT THAT TIME AS WELL.
SO WE HAVE THREE DIFFERENT SETS
OF UPDATES.
THE FIRST UPDATE ADDRESSES AN
EXTENSION OPTION FOR A SMALL
SET OF PROPERTIES EXPIRING OVER
THE NEXT TWO YEARS.
THE SECOND SET OF UPDATES
ADDRESSES STABILIT. THE THIRD
UPDATE IS A SMALL ONE THAT HAS
TO DO WITH A HANDFUL OF
HOMEOWNERSHIP PROJECTS. OF
COURSE, THERE IS THE
ACCOMPANYING RESOLUTION.
SO THE FIRST UPDATE I WANT TO
TALK ABOUT IS THE EXTENSION
UPDATE FOR RENTAL PROJECTS.
WE ARE PROPOSING TO PROVIDE AN
EXTENSION OPTION FOR PROJECTS
THAT ARE EXPIRING IN 2021 AND
2022. THAT IS NINE PROJECTS.
OBVIOUSLY THERE ARE OTHER
PROJECTS EXPIRING AND THE IDEA
IS PROJECTS THAT EXPIRE IN 2023
AND BEYOND WILL BE ADDRESSED
DURING PROGRAM RENEWAL IN 2023.
OVERTIME AS YOU ALL KNOW
CHANGES HAVE BEEN MADE TO THE
MFTE PROGRAM AND
CONSIDERATIONS HAVE BEEN PASSED
BY CITY COUNCIL.
SOME OF THE MAJOR ONES INCLUDE
AN INTRODUCTION OF AN ANNUAL
MODERATOR WHICH INCREASES THE
MAXIMUM ALLOWABLE RENT TO NO
MORE THAN 4.5% PER YEAR, AND A
REQUIREMENT TENANTS CAN QUALIFY
FOR THEIR UNIT ON AN ANNUAL
BASIS AND NOT JUST INITIAL VISA.
THESE NINE PROJECTS PREDATED
REQUIREMENTS. THEY WERE BESTED
UNDER AN OLDER VERSION OF THE
PROGRAM.
HOWEVER, IF THESE PROJECTS
OFFER THE EXTENSION, THE ANNUAL
CERTIFICATION REQUIREMENT WILL
APPLY. WE ARE ESSENTIALLY
BRINGING THESE PROJECTS UP TO
THE CURRENT STANDARDS.
ADDITIONALLY WE ARE PROPOSING
AFFORDABILITY LEVELS. I WILL
DIVE INTO THE DETAILS OF THAT
IN JUST A COUPLE OF MINUTES.
THIS IS AN OVERVIEW.
THESE ARE THE NINE PROJECTS
THAT ARE CURRENTLY EXPIRING
OVER THE NEXT TWO YEARS.
THESE PROJECTS ALL BESTED UNDER
MFTE PROGRAMS SO THEY CAME
ONLINE IN 2009 OR 2010.
THESE PROJECTS ARE UNDER PROGRAM
80% AMI OR 90% AMI. THESE
PROJECTS SORT OF PREDATED THE
LAND USE CODES. ANYTHING THAT
COULD BE CONSIDERED A UNIT WAS
REGULATED JUST LIKE THE STUDIO.
SO I WANT TO PROVIDE SOME
BACKGROUND ON THE PROPOSED
AFFORDABILITY LIMITS AND THEN I
CAN GO INTO WHAT THOSE ARE.
UNDER THE RCW, THE RCW REQUIRES
EXTENDING PROPERTIES MEET AT
MINIMUM THE AFFORDABILITY
REQUIREMENTS FROM PROPERTIES
RECEIVING A 12 YEAR EXEMPTION.
IN OTHER WORDS AT MINIMUM
EXTENDING PROPERTIES WOULD NEED
TO MEET AFFORDABILITY
REQUIREMENTS ESTABLISHED UNDER
PROGRAM SIX, WHICH CITY COUNCIL
PASSED.
HOWEVER, WE ALSO KNOW THAT
EXTENDING MFTE PROPERTIES WILL
BE BETWEEN 13 TO 24 YEARS OLD .
AS SUCH THE EXTENSION LIMITS
ARE CALIBRATED TO GIVE LOWER
RENTS IN OLDER BUILDINGS AS
OPPOSED TO COMPARABLE NEWER
BUILDINGS.
THIS CHART WALKS YOU THROUGH A
FEW THINGS. THE COLUMN ON THE
LEFT HERE, THOSE ARE THE
CURRENT AFFORDABILITY LIMITS
FOR EXPIRING PROJECTS. AGAIN,
THOSE ARE THE PROGRAM 3 INCOME
LIMITS. A COLUMN ON THE RIGHT-
HAND SIDE SHOWS THE PROPOSED
AFFORDABILITY LIMITS FOR
EXTENSIONS, WHICH ARE MODESTLY
LOWER THAN WHAT IS REQUIRED
UNDER PROGRAM SIX.
ESSENTIALLY 10% LOWER THAN WHAT
WOULD BE REQUIRED FOR A NEW
DEVELOPMENT. PROPOSED
AFFORDABILITY LIMITS ARE 30% FOR
SEDUS, 50% FOR STUDIOS, 60% FOR
ONE-BEDROOMS, 75% FOR TWO
BEDROOMS, AND 80% FOR THREE
BEDROOMS.
IT CAN GO HIGHER FOR NEW
EXEMPTIONS, BUT IF THE PROJECT
IS TO RECEIVE AN EXTENSION, THE
CAP IS 80% AMI. SO I WANTED TO
MOVE ON TO THE SECOND SET OF
UPDATES, WHICH ARE AROUND
SUPPORTING TENANT STABILITY. WE
WANT TO ENSURE THAT THE CHANGES
THAT WERE IMPLEMENTING -- OR
THAT WE ARE IMPLEMENTING THESE
CHANGES IN A WAY THAT PROVIDES
TENANT STABILITY AND PREVENTS
DISPLACEMENT.
THIS IS ESPECIALLY IMPORTANT
BECAUSE IN OUR PROPOSAL WE ARE
INSTITUTING ANNUAL INCOME
CERTIFICATIONS AND LOWERING AMIS
. WE KNOW THOSE CHANGES COULD
REALLY HAVE AN IMPACT ON
EXISTING TENANTS.
THERE ARE TENANTS THAT MEET THE
NEW LOWER REQUIREMENTS, YET
ONCE THEIR CURRENT LEASE EXPIRES
. IF A TENANT QUALIFIES, THEIR
RENT WILL GO DOWN. TENANTS OVER
THE NEW INCOME LIMITS BUT
WITHIN THE OLD LIMITS, THE
PROGRAM THREE LIMITS WILL BE
GRANDFATHERED IN AT ALL LEVELS.
THOSE UNITS WILL CONTINUE TO BE
DESIGNATED AS MFTE UNITS AND
WILL COUNT TOWARD THE MFTE SET
ASIDE PERCENTAGE.
AT UNIT TURN, ALL MFTE UNITS
WILL CONVERT TO THE NEW LIMITS
THROUGH THE LIFE OF THE
EXTENSION.
SO THIS CHART PROVIDES AN
OVERVIEW OF THE DIFFERENCE IN
RENT THAT THE TENANTS WILL SEE.
THIS WOULD APPLY TO A TENANT
WHO IS CURRENTLY PLAYING
PROGRAM THREE RENT BUT QUALIFIES
FOR THE NEW EXTENSION RENT.
THEY WOULD SEE A PRETTY
SIGNIFICANT REDUCTION IN THEIR
RENT.
THE RCW ALSO MADE SOME CHANGES
IN RELATED TO TENANT
PROTECTIONS.
THE RCW NOW REQUIRES THAT
PROPERTY OWNERS MUST PAY
TENANTS AT OR BELOW 80% AMI --
I'M SORRY, MFTE TENANTS MUST
PAY AT OR BELOW 80% AMI ONE
MONTH RENT WITHIN 90 DAYS OF
RENT RESTRICTION ENDING. IT IS
IMPORTANT TO NOTE THAT THIS
RELOCATION ASSISTANCE DOES NOT
APPLY UNIVERSALLY ACROSS THE
MFTE PORTFOLIO.
IT APPLIES TO NEW PROJECTS
AUTHORIZED AFTER JULY OF 2021
AND TO PROJECTS THAT CHOOSE THE
EXTENSION THAT REACH THE END OF
THEIR 12 MAC YEAR PERIOD.
IT DOES NOT APPLY TO MOST
TENANTS IN THE PORTFOLIO. THERE
IS A NOTIFICATION REQUIREMENT
THAT PROPERTY OWNERS NEED TO
TELL TENANTS ABOUT THESE
RELOCATION ASSISTANCE. IN THE
TWO YEARS AFTER THEY APPROACHED
THE RENT RESTRICTION.
AND THE FINAL UPDATE IS A
FAIRLY SMALL ONE, BUT IT IS
HELPFUL FOR OUR PERMANENTLY
AFFORDABLE OWNERSHIP PROJECTS.
RIGHT NOW THE PERMANENTLY
AFFORDABLE OWNERSHIP PROJECT
GETS A TAX EXEMPTION JUST LIKE
ALL OF THE OTHER PROJECTS.
UNDER THE STATE THEY QUALIFY
FOR A 20 YEAR EXEMPTION. I WANT
TO NOTE THAT THE RCW HAS A
PRETTY STRINGENT DEFINITION OF
HOMEOWNERSHIP, SO THIS CAN ONLY
BE USED FOR A PRETTY SELECT
TYPE OF PROJECT. THEIR
DEFINITION INCLUDES THINGS LIKE
THE 99 YEAR GROUND LEASE.
IT ENSURES IT HAPPENS TO
HOUSEHOLDS AT OR BELOW 80% AMI.
IT SUPPORTS FIVE AFFORDABLE
PROJECTS CURRENTLY RECEIVING
CITY FUNDING. WE ANTICIPATE IT
WILL BE USABLE TO MORE PROJECTS
AS WELL IN THE COMING YEARS.
AND FINALLY I JUST WANT TO
ADDRESS THE ACCOMPANYING
RESOLUTION. AS I NOTED BEFORE,
THE LEGISLATION IS ACCOMPANYING
A RESOLUTION TO ADDRESS OTHER
PRIORITIES DURING THE RENEWAL
PROCESS IN 2023.
RESOLUTION STATES AFFIRMATIVELY
THAT MFTE WILL CONTINUE TO
ACHIEVE AFFORDABLE HOUSING,
ADVANCED LABOR EQUITY OUTCOMES,
AND PROVIDE AN EXTENSION OPTION
FOR PROJECTS EXPIRING AFTER 2022
. AS PART OF RENEWAL
CONSIDERATION IN 2023, OH WILL
PROVIDE INFORMATION AND
ANALYSIS DURING RENEWAL
CONSIDERATION. AND THAT IS ALL
I HAVE.
THANK YOU.
>> THANK YOU FOR WALKING US
THROUGH THIS. VERY EXCITING
WITH OBVIOUSLY MORE WORK TO
COME ON THE HORIZON.
HERBOLD, DO YOU HAVE A
QUESTION?
>> YES.
THANK YOU.
I WANT TO TALK A LITTLE BIT
ABOUT THE RELOCATION ASSISTANCE
REQUIREMENT. CAN YOU FIRST
CONFIRM FOR ME THAT THIS IS A
RELOCATION ASSISTANCE
REQUIREMENT BEING AUTHORIZED BY
THE STATE?
>> YES, IT IS AUTHORIZED UNDER
THE RCW.
>> DID THE STATE IDENTIFY 80%
AMI AS THE THRESHOLD?
>> YES, THEY DID.
>> SO I JUST WANT TO FLAG THIS
AS SOMETHING THAT IS A REALLY
POTENTIALLY USEFUL PRECEDENT
FOR US TO USE IN TRYING TO
CONVINCE THE STATE LEGISLATURE
TO CHANGE THE THRESHOLD FOR THE
TENANT RELOCATION ASSISTANCE
PROGRAM FOR TENANTS THAT ARE
DISPLACED BECAUSE OF RENOVATION
. RIGHT NOW THE THRESHOLD IS
60% AMI, SO IF THE STATE
LEGISLATURE IN THEIR WISDOM IS
SAYING THERE SHOULD BE
RELOCATION FOR TENANTS
DISPLACED BECAUSE OF LARGE RENT
INCREASES IN THESE PROJECTS FOR
TENANTS THAT EARN 80%, I THINK
WE COULD POTENTIALLY USE THAT
TO CONVINCE THEM THEY SHOULD
MAKE CHANGES IN THE STATE
AUTHORIZING LEGISLATION FOR THE
TENANT RELOCATION ASSISTANCE
ORDINANCE.
WE CANNOT CHANGE OUR THRESHOLD
IN OUR PROGRAM IN THE CITY OF
SEATTLE UNTIL THEY AUTHORIZE IT
. I WANT TO FLAG THAT FOR A
POTENTIAL ITEM FOR THE STATE
LEGISLATIVE AGENDA THIS YEAR.
IT IS REALLY, REALLY HELPFUL TO
SEE THE STATE LEGISLATOR MADE
THIS WIDE CHOICE.
>> I AGREE.
WONDERFUL. THANK YOU VERY MUCH,
VICE CHAIR. ANY ADDITIONAL
COMMENTS?
ALL RIGHT, WELL I AM EXCITED
ABOUT THIS.
I WILL GET THE LEGISLATION IN
FRONT OF US.
I UNDERSTAND THERE IS A
POTENTIAL AMENDMENT TO THE
RESOLUTION.
THANKS AGAIN, JENNIFER.
I THINK THIS IS GOING TO BE
HELPFUL FOR US AS WE CONSIDER
ADDITIONAL PRIORITIES AND AS WE
TAKE ON THE COMPREHENSIVE PLAN
IN 2023, ESPECIALLY WHEN WE
INCLUDE THESE MONITORING
REQUIREMENTS. THAT WILL HELP US
WEIGH POLICIES AND TRADE-OFFS
AND HELP US HAVE A BETTER
UNDERSTANDING WHAT THE DATA
PROVIDES FOR US. WE WILL BE
ABLE TO MAKE REALLY INFORMED
DECISIONS.
I ALSO WANT TO UNDERSCORE A
PIECE THAT TRACI AND JENNIFER
USED AS WELL . THIS IS KNEHR
REGISTRATION. PEOPLE OFTEN
REACH OUT TO US ABOUT MFTE AND
THERE WILL BE FOLLOW-UP ACTION
ESPECIALLY WITH SOME OF THE
ACTIONS THE LEGISLATURE EARLIER
THIS YEAR TO ADDRESS HOW WE
COULD CONTINUE TO PROVIDE
ADDITIONAL POLICY ENHANCEMENTS
TO THE PROGRAM.
THIS IS SPECIFIC TO THE
EXPIRING UNITS AND WE ARE
GRANTING PROGRAM EXTENSIONS FOR
THOSE PROJECTS TO MAKE SURE THAT
THEY DON'T EXPIRE IN THE NEAR-
TERM. I THINK AS YOU OUTLINED,
JENNIFER, THERE ARE REALLY GOOD
BENEFITS TO THE COMMUNITY AND
POSITIVE IMPACT FOR THOSE THAT
HAVE BEEN PREVIOUSLY
GRANDFATHERED TO THE OLD
REQUIREMENTS AND COMING INTO
THE FOLD OF IMPORTANT
PROTECTIONS AS WELL, SO THAT IS
GOOD EVEN THOUGH THE
LEGISLATION IS NARROW. I
UNDERSTAND IS REALLY ONLY
APPLIES TO NINE DIFFERENT
PROJECTS, AS YOU SAID.
I THINK THAT IS ANOTHER
IMPORTANT PIECE AND IS
SOMETHING THAT WILL LEAD US TO
HAVE IMPORTANT DATA IN FRONT OF
US. WE WILL HAVE MORE
COMPREHENSIVE CHANGES TO COME.
A LOT OF ENGAGEMENT. A LOT OF
ENGAGEMENT WITH VARIOUS
COMMUNITY PARTNERS, STAKEHOLDERS
ON BEFORE WE TAKE ON MORE WITH
MFTE . AS WELL AS OTHER LABOR
UNIONS IN OUR COMMUNITY AND
HOUSING PROVIDERS AS WELL.
OKAY.
LET'S MOVE THE RESOLUTION IN
FRONT OF US SO WE CAN CONSIDER
THAT AND THEN WE WILL CONSIDER
THE LEGISLATION. I MOVE THE
COMMITTEE RECOMMENDS PASSAGE OF
RESOLUTION 32017. IS THERE A
SECOND?
>> SECOND.
>> WONDERFUL.
THANK YOU VERY MUCH.
IT HAS BEEN MOVED AND SECONDED.
WE DO HAVE ONE POTENTIAL
AMENDMENT.
COUNCILMEMBER HERBOLD, WOULD
YOU LIKE TO MOVE TO AMEND THE
RESOLUTION AND THEN WE WILL
HAVE YOU SPEAK TO IT?
>> THANK YOU SO MUCH. LET'S SEE
HERE.
I MOVE AMENDMENT ONE TO
RESOLUTION 32017.
>> THANK YOU VERY MUCH.
I WILL SECOND THAT.
TRACI, WOULD YOU LIKE TO
PROVIDE ANY ADDITIONAL DETAILS?
>> COUNCIL MEMBERS , THIS WAS
SENT TO YOU LAST NIGHT BY
COUNCILMEMBER HERBOLD'S OFFICE.
IT WILL MOVE THE DATA TO O.H.
, REQUESTING THEM TO INCLUDE
INFORMATION AND TO BUY DOWN RENT
ON MFTE UNITS FOR NEW POST
AFFORDABILITY LEVELS AND TO
LOOK ALSO AT THE PROPERTY TAX
EXEMPTION THAT IS FOREGONE AS
WELL AS SHIFTED BROKEN DOWN BY
OTHER CITY AND TAXING. YOU ARE
DOING AN ANALYSIS ABOUT
AGREEING TO EXTEND THOSE MFTE
PROJECTS WITH AN EXTENSION
VERSUS ENDING THE PROGRAM
BECAUSE THE COST OF THE TAX
FOREGONE IS GREATER THAN WHAT
IT MIGHT COST US TO DO IN A
BUYDOWN SITUATION SHOULD OWNERS
OF THOSE MFTE PROJECTS EXPIRING
BE WILLING TO DO SO .
>> VICE CHAIR HERBOLD, WOULD
YOU LIKE TO ADD TO THAT?
>> SURE.
JUST A LITTLE BIT BEHIND THE
AMENDMENT.
I THINK WE ALL WANT TO ENSURE
THAT THE RENT STAYS LOWER FOR
THESE UNITS THAT ARE IN
EXPIRING PROPERTIES, BUT THERE
MAY BE A DIFFERENT APPROACH TO
MAINTAINING THE LOWER RENT THAN
THE MFTE PROGRAM. A DIFFERENT
APPROACH MIGHT INVOLVE THE CITY
USING ITS RESOURCES TO BUYDOWN
THE RENT.
THE CITY, BECAUSE IT IS A TAX
EXEMPTION PROGRAM, SOME OF THE
TAXES THAT ARE EXEMPT ARE
SHIFTED TO OTHER TAXPAYERS TO
PAY, BUT SOME ARE NOT SHIFTED
AND FOREGONE TAXES TO THE CITY.
THE IDEA IS WE SHOULD FIGURE
OUT WHAT THE COST OF THE
FOREGONE TAX IS TO THE CITY AND
COMPARE IT TO THE COST OF
BUYING DOWN THE UNITS AND MAKE
SURE WHATEVER APPROACH WE ARE
USING, SAY THE AFFORDABILITY OF
THESE UNITS, IS AN APPROACH
THAT IS THE MOST COST-EFFECTIVE
FOR THE CITY AND FOR TAXPAYERS.
I AM HOPING THAT WITH THIS
INFORMATION, WE WILL BE ABLE TO
EXAMINE WHETHER OR NOT RENT
BUYDOWN'S ARE A TOOL WE SHOULD
BE CONSIDERING TO PRESERVE THIS
PARTICULAR SET OF AFFORDABLE
HOUSING UNITS AS THEY ARE
EXPIRING.
THANK YOU.
>> THANK YOU VERY MUCH. ANY
ADDITIONAL COMMENTS ON THAT?
OKAY, VICE CHAIR. I WILL ADD A
FEW COMMENTS.
I THINK IT SITS WELL WITH THE
OTHER CRITERIA IN THE RESOLUTION
TO WEIGH PROGRAMMATIC CHANGES
AND REALLY HELP PREPARE US FOR
THE COMPREHENSIVE PROPOSAL OR
COMPREHENSIVE REVIEW COMING IN
2023.
I THINK AS A TAX EXEMPTION
PROGRAM INITIATIVE, MFTE
INVOLVES TRADE-OFFS AND THIS
INFORMATION COULD POTENTIALLY
HELP US MAKING FUTURE INFORMED
DECISIONS AS WE WEIGH
PRIORITIES INCLUDING HOW WE
INVEST IN IT AND MEETING OUR
VALUES AND GOALS AND SUPPORTING
LABOR PARTNERS AS WELL AS
HOUSING AS WELL.
I WILL BE SUPPORTING THEM AS
WELL.
I AM NOT SEEING ANY ADDITIONAL
HANDS.
PLEASE CALL THE ROLE ON THE
ADOPTION OF THE AMENDMENT.
>> HERBOLD?
>> YES.
>> COUNCIL PRESIDENT GONZALEZ?
>> AYE.
>> LEWIS?
>> YES.
>> STRAUSS?
>> YES.
>> CHAIR MOSQUEDA?
>> AYE.
>> FIVE IN FAVOR, NONE OPPOSED
.
>> THE AMENDMENT IS ADOPTED.
ARE THERE ANY ADDITIONAL
COMMENTS?
I AM NOT AWARE OF ANY
ADDITIONAL AMENDMENTS. OKAY.
WELL, WE HAVE COME TO THE POINT
OF PASSAGE.
THANK YOU VERY MUCH TO THE
OFFICE OF HOUSING. MADAME
CLERK, WE CALL THE ROLL ON THE
PASSAGE OF RESOLUTION 32017 AS
AMENDED.
>> VICE CHAIR HERBOLD?
>> YES.
>> PRESIDENT GONZALEZ?
>> AYE.
>> LEWIS?
>> YES.
>> STRAUSS?
>> YES.
>> MADAM CHAIR?
>> AYE.
>> MADAM CHAIR, FIVE IN FAVOR,
NONE OPPOSED.
>> THANK YOU VERY MUCH.
THE COMMITTEE RECOMMENDS THE
RESOLUTION PASSED AS AMENDED
WILL BE SENT TO THE SEPTEMBER
20th SEATTLE CITY COUNCIL
MEETING FOR A FINAL VOTE.
>>> LET'S MOVE ON TO THE
COUNCIL BILL. I MOVE THE
COMMITTEE RECOMMENDS PASSAGE OF
COUNCIL BILL 120156. IS THERE
A SECOND?
>> SECOND.
>> THANK YOU, VICE CHAIR.
IT HAS BEEN MOVED AND SECONDED.
ARE THERE ADDITIONAL COMMENTS
ON THE COUNCIL BILL?
OKAY. I WILL USE THIS AS A
CHANCE TO SAY THANK YOU.
THANK YOU TO THE OFFICE OF
HOUSING, TRACI RATZLIFF , FOR
ALL OF YOU AND YOUR STRENGTH
TODAY.
MUCH MORE TO COME AS WE TALK
ABOUT THIS WITH COMMUNITY
PARTNERS, BUT TODAY LET'S GO
AHEAD AND MOVE THIS OUT.
PLEASE CALL THE ROLL ON COUNCIL
BILL 120156 .
>> VICE CHAIR HERBOLD?
>> YES.
>> PRESIDENT GONZALEZ?
>> AYE.
>> LEWIS?
>> AYE.
>> LEWIS?
>> AYE.
YES. YES.
>> STRAUSS?
>> YES.
>> MADAM CHAIR?
>> AYE.
>> MADAM CHAIR, FIVE IN FAVOR,
NONE OPPOSED .
>> THE MOTION CARRIES.
IT WILL BE MOVED TO THE
SEPTEMBER 20th CITY COUNCIL
MEETING FOR A FINAL VOTE.
JENNIFER, THANK YOU.
PLEASE PASS ON OUR APPRECIATION
TO YOUR WHOLE TEAM TO GET THIS
DONE.
WE DID IT AND WE DID IT ONLY
WITHIN A HALF HOUR.
A LOT OF TIME ANTICIPATED THIS
WAS SUCH GREAT WORK IN OUR
AUGUST 17th MEETING, SO I'M
HAPPY TO SEE THIS LEGISLATION
MOVE FORWARD.
WE WILL CELEBRATE ITS PASSAGE
ON SEPTEMBER 20th WITH THE FULL
COUNCIL . FINGERS CROSSED!
OKAY. THANKS, EVERYBODY. I'M
JUST LOOKING AT MY AGENDA AND
WE HAVE GOTTEN THROUGH THE
ENTIRE AGENDA WITHIN AN HOUR.
ARE THERE ANY ADDITIONAL
COMMENTS?
HEARING NONE, I WILL SAY THANKS
TO ALL OF YOU. WE HAVE ONE LAST
FINANCE AND HOUSING COMMITTEE
FOR OUR REGULAR COMMITTEE SET
UP FOR NEXT FRIDAY, SEPTEMBER
17th. THAT ALSO BEGINS AT 9:30
A.M.
WE HAVE A LITTLE BIT OF A
LONGER AGENDA, COLLEAGUES, AND
I WANT TO MAKE SURE YOU STAY
THE WHOLE TIME.
WE WILL HAVE A PRESENTATION
FROM THE STRATEGIC INVESTMENT
FUND, SO THE ACTUAL LEGISLATION
THAT GOES WITH THE PRESENTATION
WE HAD TODAY.
WE WILL HAVE A BRIEFING FROM
DIRECTOR NOBLE ON ANY UPDATES
FROM THAT LAST FORECAST. WE
WILL HAVE THAT IN OUR HANDS
PRIOR TO CONSIDERING THE
PROPOSED BUDGET THAT THE MAYOR
WILL BE SUBMITTING TO COUNCIL
ON SEPTEMBER 27th . WE ARE
STILL FINALIZING OUR AGENDA,
BUT THOSE ARE THE CONFIRMED
ITEMS.
FRIDAY, SEPTEMBER 17th IS A
SPECIALLY SCHEDULED TIME SINCE
THE FOLLOWING WEEK DID NOT WORK
FOR THE CALENDARS.
I APPRECIATE YOUR TIME IN
ADVANCE. THANKS SO MUCH FOR
JOINING US TODAY.
HAVE A GREAT FRIDAY AND ENJOY
THE REST OF YOUR WEEKEND.
TAKE CARE, EVERYONE.