♪
>> JUST ONE SECOND. THERE YOU
GO.
>> OKAY, I WILL START THAT
OVER. GOOD MORNING, EVERYONE,
THE TIME IS 9:30, AND THE JULY
24th MEETING OF THE HOUSING AND
HUMAN SERVICES COMMITTEE WILL
NOW COME TO ORDER. I'M KATHY
MOORE, CHAIR OF THE COMMITTEE.
WILL THE CLERK PLEASE CALL THE
ROLL. [ ROLL BEING CALLED ]
THERE ARE FOUR PRESENT.
>> THANK YOU. MOVING ON TO
APPROVAL OF THE AGENDA, IF
THERE IS NO OBJECTION, TODAY'S
PROPOSED AGENDA WILL BE
ADOPTED. HEARING AND SEEING NO
OBJECTION, THE AGENDA IS
ADOPTED. ALL RIGHT. THANK YOU,
EVERYONE FOR BEING HERE TODAY
FOR THE JULY 24th MEETING OF
THE HOUSING AND HUMAN SERVICES
COMMITTEE ON TODAY'S AGENDA,
WE HAVE OUR OFFICE OF HOUSING
WITH US TO WALK US THROUGH
THEIR 2022, 2023 ANNUAL
REPORTS. ALL FORMAL REPORTS ON
THE SUMMARY OF EACH REPORT WERE
CIRCULATED TO COMMITTEE MEMBERS
ON JUNE 27th BY KELLI LARSEN
AND THEY HAVE ALL BEEN ATTACHED
TO TODAY'S AGENDA. WE WILL NOW
BE OPENING FOR HYBRID PUBLIC
COMMENT. PUBLIC COMMENT SHOULD
RELATE TO ITEMS ON TODAY'S
AGENDA OR BE WITHIN THE PURVIEW
OF THIS COMMITTEE. CLERK, HOW
MANY SPEAKERS ARE SIGNED UP
TODAY?
>> CURRENTLY WE HAVE ONE IN
PERSON SPEAKER AND NO REMOTE
SPEAKERS.
>> THANK YOU. EACH SPEAKER WILL
HAVE TWO MINUTES. WE WILL START
AND END WITH IN PERSON
SPEAKERS. COULD YOU PLEASE READ
THE PUBLIC COMMENT
INSTRUCTIONS?
>> THE PUBLIC COMMENT PERIOD
WILL BE MODERATED IN THE
FOLLOWING MANNER. THE PUBLIC
COMMENT PERIOD IS UP TO 20
MINUTES. SPEAKERS WILL BE
CALLED IN THE ORDER IN WHICH
THEY REGISTERED. SPEAKERS WILL
HEAR A TIME WHEN 10 SECONDS ARE
LEFT OF THEIR TIME. SPEAKERS
MICS WILL BE MUTED IF THEY DO
NOT END THEIR COMMENTS WITHIN
THE ALLOTTED TIME TO ALLOW US
TO CALL IN THE NEXT SPEAKER.
>> ALL RIGHT, SHALL WE BEGIN?
>> THE FIRST IN PERSON SPEAKER
IS ELI YOUNG.
>> RIGHT HERE?
>> JUST ONE SECOND. LET ME GET
YOUR TIMER UP.
>> SEATTLE'S MANDATORY HOUSING
AFFORDABILITY PROGRAM IS
EFFECTIVELY A TAX ON
DEVELOPMENT WHICH IS WHAT THE
CITY DESPERATELY NEEDS. SO
SINGLE-FAMILY HOUSES DO NOT
HAVE TO PAY INTO MHA BUT IF YOU
WANT TO BUILD A FOUR PLEX, SIX
PLEX AND A PRIVATE BUILDING YOU
DO END UP PAYING INTO MHA. HERE
IN WASHINGTON STATE WE HAVE THE
HIGHEST LIQUOR PRICES IN THE
COUNTRY AND THE REASON WE DO
THAT IS WE WANT PEOPLE TO DRINK
LESS ALCOHOL. THE TAXES ARE
THERE TO DIS-INCENTIVIZE
BEHAVIOR THAT WE THINK IS
HARMFUL BUT BY ANALOGY, THE MHA
FEES ARE TREATING BUILDING A
FOUR X LIKE DOWNING ALCOHOL.
IT'S AN -- NOT ENOUGH HOUSING
IN THE CITY. THE CITY TALKS
ABOUT HOW MHA IS A WAY TO
MITIGATE THE IMPACTS OF
DEVELOPMENT BUT ON THE WHOLE
THE IMPACTS ARE VERY POSITIVE.
WE SEE FROM CITIES LIKE AUSTIN
AND NASHVILLE THAT IF YOU ALLOW
A LOT OF CONSTRUCTION, EVEN IF
THAT'S -- CONSTRUCTION, IT CAN
VERY QUICKLY BRING DOWN RENTS
FOR THE ENTIRE CITY. IF WE
BUILD MORE HOUSING, IT'S A LOT
EASIER TO SOLVE HOMELESSNESS.
IT'S EASIER TO GET PEOPLE OFF
THE STREETS INTO A HOME IF THAT
HOME DOES NOT EXIST AND WAS
NEVER BUILT. IF WE BUILD MORE
HOUSING THAT'S MORE TAX
REVENUE FOR THE CITY AND MORE
PEOPLE WHO CAN PATRONIZE LOCAL
BUSINESSES, THAT'S TRANS KIDS
AND REFUGEES WHO DON'T FEEL
SAFE WHERE THEY ARE BEING ABLE
TO MOVE HERE TO A CITY WHERE
THEY ARE GOING TO BE ACCEPTED.
ULTIMATELY IF WE WANT TO
PROMOTE MORE HOUSING
DEVELOPMENT WE NEED TO MAKE IT
EASIER TO BUILD HOUSING. WE
SHOULDN'T TAX THEM WITH MHA
FEES. IF WE DO WANT TO SUPPORT
BELOW-MARKET GRADE HOUSING I
LET -- RECOMMEND LOOKING INTO
WHAT -- HAS DONE, THEY HAVE AN
EXPEDITED PERMITTING SYSTEM SO
IF YOU WANT TO BUILD SOMETHING
BELOW MARKET RATE, THERE'S A
60 DAY PERMITTING SHOCK CLOCK.
THIS HAS BEEN EXTREMELY
SUCCESSFUL AND IT DOES NOT HAVE
THE NEGATIVE EFFECTS ON CHOKING
OUT DEVELOPMENT THAT MHA FEES
GIVE. THANK YOU.
>> THANK YOU VERY MUCH.
>> CHAIR, THAT WAS OUR LAST
SPEAKER.
>> I HAVE THE RECORD NOTE THAT
COUNCILMEMBER WOO HAS JOINED
US. IF YOU WANT TO SIT CLOSER
YOU ARE WELCOME TO ALSO SIT
OVER HERE TOO. JUST TRYING TO
MAKE SURE YOU ARE ABLE TO NOT
BE SO FAR AWAY. SO, THANK YOU.
THERE ARE NO ADDITIONAL
REGISTERED SPEAKERS SO WE WILL
NOW PROCEED TO OUR ITEM OF
BUSINESS. MEMBERS OF THE PUBLIC
ARE ENCOURAGED TO EITHER SUBMIT
WRITTEN PUBLIC COMMENT ON THE
SIGN-UP CARDS AVAILABLE ON THE
PODIUM OR EMAIL THE COUNCIL AT
-- WE WILL MOVE ON TO OUR FIRST
ITEM IN THE AGENDA. WILL THE
CLERK PLEASE READ THE SHORT
TITLE OF THE FIRST AGENDA ITEM
INTO THE RECORD.
>> AGENDA ITEM ONE, OFFICE OF
HOUSING, 2023 ANNUAL REPORTING
FOR BRIEFING AND DISCUSSION.
>> ALL RIGHT, THANK YOU.
CALLING TODAY WE HAVE WITH US
DIRECTOR MAIKO WINKLER-CHIN AND
ANDREA AKITA OF THE COMMITTEE
TABLE AND KELLI LARSEN ONLINE.
SHE JOINED? OKAY. TO WALK US
THROUGH THE OFFICE OF HOUSINGS
2023 ANNUAL REPORTS. AGAIN, AS
I MENTIONED EARLIER, TODAY TO
COVER OH ADJUSTMENTS, AND LEVY
THEM FTE AND ONE FOR MHA
INCENTIVE ZONING AND WITHOUT
FURTHER ADO I WILL TURN IT OVER
TO OUR PRESENTERS.
>> THANK YOU VERY MUCH, KELLI
LARSEN, YOU THERE?
>> YES.
>> KELLI LARSEN IS JOINING US
FROM VACATION. BEFORE I START I
WANT TO ALLOW MY CALLING TO
INTRODUCE HERSELF.
>> GOOD MORNING, MY NAME IS
ANDREA AKITA, THE DEPUTY
DIRECTOR FOR THE OFFICE OF
HOUSING.
>> THANKS. SO, GOOD MORNING,
COUNCIL MEMBERS. WE ARE HAPPY
TO BE HERE TO SHARE HIGHLIGHTS
FROM OUR FOUR ANNUAL REPORTS
PRODUCED BY THE OFFICE OF
HOUSING WHICH CELEBRATES THE
ACCOMPANIMENTS OF OUR
AFFORDABLE HOUSING PARTNERS AND
STAFF IN 2023. THE OFFICE OF
HOUSINGS VISION IS FOR EVERYONE
TO HAVE A HEALTHY AND
AFFORDABLE HOME AND WE
PARTNERED TO CREATE AFFORDABLE
HOUSING BY EQUITABLY INVESTING
TO PREVENT DISPLACEMENT AND
INCREASE OPPORTUNITIES FOR
PEOPLE TO LIVE IN SEATTLE.
THESE REPORTS REPRESENT WAYS
THAT OH'S MISSION AND VISION
ARE BEING REALIZED BY CITY
INVESTMENTS IN THE CREATION AND
PRESERVATION OF AFFORDABLE
HEALTH -- RENTAL AND
HOMEOWNERSHIP DEVELOPMENTS AND
-- ALSO PROVIDE AFFORDABLE
HOUSING OPPORTUNITIES. WE ARE
GOING TO COVER FOUR DIFFERENT
REPORTS. SO WE WILL MAKE SURE
THAT HOPEFULLY WE ARE CLEAR ON
WHEN THOSE TRANSITIONS HAPPEN.
ALL RIGHT. HANNAH, I THINK YOU
ARE DRIVING. SO, FIRST WE ARE
GOING TO TALK ABOUT OUR ANNUAL
INVESTMENTS ACROSS ALL OF OH'S
FUNDING SOURCES. IN 2023 OUR
PARTNERS OPENED 13 NEW MULTI
FAMILY BUILDINGS IN THREE NEW
HOMEOWNERSHIP DEVELOPMENTS. WE
ALSO HAVE 16 MULTI FAMILY
BUILDINGS UNDER DEVELOPMENT OR
UNDER CONSTRUCTION AND 11 NEW
HOMEOWNERSHIP OF ELEMENTS. AND
THAT, IN TOTAL IS OVER 2100 NEW
HOMES THAT WILL OPEN FOR
FAMILIES AND INDIVIDUALS IN THE
UPCOMING MONTHS. NEXT SLIDE,
PLEASE. SO, THE RENTAL HOUSING
PROGRAM INVESTED $57 MILLION IN
FIVE NEW BUILDINGS GRADING 542
APARTMENTS. AND OH ISSUED $18
MILLION IN SHORT-TERM FINANCING
TO SECURE SITES FOR 528 HOMES
TO BE PERMANENTLY FINANCED IN
THE FUTURE AND THE
HOMEOWNERSHIP PROGRAM ANNOUNCED
$12.3 MILLION OR 115 --
PERMANENTLY AFFORDABLE
WHOLESALE HOMES. THE HOME
REPAIR PROGRAM PROVIDED NEARLY
$600,000 OF SUPPORT. $600,000
TO SUPPORT CRITICAL REPAIRS FOR
LOW INCOME HOMEOWNERS. THE
WEATHERIZATION PROGRAM PROVIDED
$7 MILLION FOR ENERGY EFFICIENT
UPGRADES AND 143 HOMES AND 17
APARTMENT THINGS AND THE CLEAN
HEAT PROGRAM PROVIDED $1.8
MILLION TO CONVERT 84 HOMES
FROM OIL TO ELECTRIC HEATING
SYSTEMS. IN 2023 THE CITY
CONTINUED TO HELP LOW INCOME
RENTERS AFFECTED BY COVID BY
DISTRIBUTING EMERGENCY RENTAL
ASSISTANCE. OUR EMERGENCY
RENTAL ASSISTANCE FUND SOURCES
INCLUDED THE FEDERAL COMMUNITY
DEVELOPMENT BLOCK GRANT, SEE
BDG AND COVID RELIEF AND STATE
FUNDING. THIS PROGRAM STARTED
IN 2021 WITH A PLAN TO REACH
OVER 11,000 SEATTLE -- AND THE
PLAN INVOLVED THREE ELEMENTS,
FIRST PARTNERING WITH THE
UNITED WAY OF KING COUNTY,
SECOND WORKING WITH NONPROFITS
THROUGH THE SEATTLE OFFICE OF
HOUSING AND THIRD WAS ENGAGING
COMMUNITY ORGANIZATIONS
ESPECIALLY THOSE SUPPORTING
BLACK INDIGENOUS AND PEOPLE OF
COLOR IMMIGRANT REFUGEE
COMMUNITIES DURING THAT TIME.
AND THROUGH THE END OF 2023,
THE CITY PROVIDED $51.9 MILLION
IN RENTAL ASSISTANCE TO 11,100
81,000 -- HOUSEHOLDS. 15%
IDENTIFIED AS HISPANIC. NEXT
SLIDE, PLEASE. THANKS. SO, THIS
MAP SHOWS THE 2023 08 RENTAL
HOUSING M HOMEOWNERSHIP
INVESTING BY NEIGHBORHOOD OR
URBAN CENTER. OKAY, NEXT SLIDE.
THANK YOU. AND THESE ARE THE
FUND SOURCES FOR THOSE
INVESTMENTS. OKAY. AND NOW, WE
ARE TRANSITIONING AWAY FROM ALL
OF OUR INVESTMENTS AND JUST
TALKING SPECIFICALLY ABOUT THE
LEVY. THE PAST LEVY, THE 2016
LEVY. WE ARE CELEBRATING THE
END OF THE 2016 HOUSING LEVY
PERIOD AND THE LAUNCH OF THE
NEW 2023 HOUSING LEVY THIS
SUMMER. WE ARE GRATEFUL FOR THE
STRONG SUPPORT FOR THIS WORK
FROM SEATTLE VOTERS AND
TAXPAYERS WHO HAVE RESOUNDINGLY
SUPPORTED THIS INVESTMENT AND
OUR HOUSING INFRASTRUCTURE FOR
40 YEARS. AND THE 2016 HOUSING
LEVY HAD FOUR PRIMARIES AND WE
ARE GOING TO DISCUSS THOSE FOUR
NOW OR REPORT OUT ON THOSE FOUR
NOW. THE FIRST ONE IS A RENTAL
HOUSING PRODUCTION AND
PRESERVATION PROGRAM AND THAT
PROGRAM EXCEEDED THE GOALS
EXCEEDING -- ACHIEVING 139% OF
THE GOALS BY INVESTING IN 2864
NEW APARTMENTS AND
REHABILITATING 621 EXISTING
APARTMENTS IN OUR PORTFOLIO.
AND THE SEATTLE HOUSING
AUTHORITY'S JUNIPER APARTMENTS
IS THE FINAL MULTIFAMILY
BUILDING OF THE 2016 LEVY. THE
HOMEOWNERSHIP PROGRAM, PROGRAM
NUMBER TWO ALSO EXCEEDED THE
GOALS, ACHIEVING 135% OF THE
GOAL BY SUPPORTING 379
HOUSEHOLDS. IN 2023 THE PROGRAM
ISSUED OVER 100 -- $110,000 IN
GRANTS AND $355,000 IN PURCHASE
ASSISTANCE LOANS. THE THIRD
PROGRAM AREA IS OPERATING
MAINTENANCE AND SERVICES
PROGRAM AND THAT MEANT THE GOAL
SUPPORTING LONG-TERM OPERATING
SERVICES COST FOR 526 PERMANENT
SUPPORTIVE HOMES. AND 15th
AVENUE PROJECT IS THE FINAL OF
DASHES SUPPORTING 35 HOMES YET
TO BE BUILT. AND THE FOURTH
PROGRAM AREAS THE HOMELESSNESS
PREVENTION AND HOUSING
STABILITY SERVICES PROGRAM.
THAT PROGRAM ACHIEVED 97% OF
THE GOAL SERVING 4364
HOUSEHOLDS OVER THE LEVY
PERIOD. THE PROGRAM ASSISTED
510 HOUSEHOLDS IN 2023
DEPLOYING 1.8 MILLION DOLLARS
IN ASSISTANCE. NOW WE ARE
TRANSITIONING TO THE THIRD
REPORT THAT WE DO WHICH IS THE
-- WE ARE SHIFTING AWAY FROM A
DISCUSSION ON DIRECT
INVESTMENTS AND AFFORDABLE
HOUSING TO OUR MULTI FAMILY TAX
EXEMPTION PROGRAM WHICH IS A
MARKET FOCUSED PROGRAM TO
INCREASE AFFORDABLE HOUSING.
YOU MAY HAVE REMEMBERED , WE
BRIEFED YOU ON THIS PROGRAM IN
SPRING AND WE WILL BE RETURNING
TO COMMITTEE IN EARLY 2025 TO
RESUME OUR PROGRAM DISCUSSION
AND REAUTHORIZATION. SO, JUST
FOR REMINDER, THE MFTE PROGRAM
IS AN INCENTIVE PROGRAM CREATED
IN THE STATE OF WASHINGTON TO
DO TWO THINGS. ENCOURAGE
INCREASED RESIDENTIAL
OPPORTUNITIES INCLUDING
AFFORDABLE HOUSING AND TO
SIMULATE THE CONSTRUCTION OF
NEW MULTI FAMILY HOUSING AND
REHABILITATION IN UNDERUTILIZED
BUILDINGS. IN THE CITY OF
SEATTLE WE HAVE FURTHER USED IT
TO DO TWO THINGS AS WELL,
INCREASE AND MAINTAIN
AFFORDABLE HOUSING AND
AFFIRMATIVELY FURTHER FAIR
HOUSING. SEATTLE'S MFTE
PROGRAM PROVIDES A PROPERTY TAX
EXCEPTION ON ELIGIBLE MULTI
FAMILY HOUSING IN EXCHANGE FOR
20 TO 25% OF THOSE UNITS TO
BECOME INCOME AND RENT
RESTRICTED. THE MAJORITY OF
MFTE OCCURS IN THE RENTAL
HOUSING MARKET. AND WE
CURRENTLY HAVE 286 PROPERTIES
WITH ACTIVE EXEMPTIONS IN PLACE
FOR OVER 6600 APARTMENTS AND 49
APPROVED APPLICATIONS AND 17
PROPERTIES HAVE EXPIRED OR
OPTED OUT OF MFTE. WE ALSO USE
MFTE IN SUPPORTING PERMANENTLY
AFFORDABLE HOME OWNERSHIP AND
ITS PROVIDED FINANCIAL
INCENTIVE FOR 217 OH FUNDED
HOMES FOR LOW INCOME BUYERS
WITH 54 ACTIVE EXEMPTIONS, 68
UNDER CONSTRUCTION AND 95 HOMES
THAT HAVE EXPIRED OR OPTED OUT
OF MFT. THE FOURTH REPORT OUT
THAT WE HAVE IS ABOUT THE MHA
PROGRAM. AND IT'S THE SECOND
DEVELOPMENT PROGRAM WE ARE
DISCUSSING. NEXT SLIDE, PLEASE.
BE MHA PROGRAM ENSURES THAT NEW
DEVELOPMENT CONTRIBUTES TO
AFFORDABLE HOUSING. THE PRIMARY
PURPOSE IS TO CREATE MORE
AFFORDABLE HOUSING OPTIONS FOR
LOW INCOME RESIDENTS,
ADDRESSING THE CITY'S GROWING
AFFORDABILITY CRISIS. THE
PROGRAM REQUIRES NEW COMMERCIAL
AND MULTIFAMILY RESIDENTIAL
DEVELOPMENTS TO EITHER INCLUDE
AFFORDABLE HOUSING UNITS WHICH
IS A PERFORMANCE OPTION OR MAKE
PAYMENTS TO THE CITY TO FUND
AFFORDABLE HOUSING PROJECTS.
THAT IS THE IN LOOP UNIT
OPTION. SO YOU HAVE TWO OPTIONS
THERE. NEXT SLIDE, PLEASE. THE
MANDATORY PROGRAM IS SEATTLE'S
-- IT LAUNCHED IN 2017 AND WHAT
THAT DID IS UP ZONED AND
INCREASED DENSITY IN CERTAIN
NEIGHBORHOODS ALONG WITH
MANDATING REQUIREMENTS FOR NEW
DEVELOPMENTS TO INCLUDE
AFFORDABLE HOUSING ON SITE OR
MAKE PAYMENTS TO THE CITY. THE
MHA PROGRAM REPRESENTS A
SIGNIFICANT POLICY EFFORT TO
BALANCE THE CITY'S GROWTH WITH
EQUITY AND HELP THE CITY
ACHIEVE ITS GOALS FOR
AFFORDABLE HOUSING. THIS
PROGRAM INTENDS TO MITIGATE THE
NEGATIVE IMPACTS AND NEW
DEVELOPMENTS BY PREVENTING
DISPLACEMENT, PROVIDING NEW
OPPORTUNITIES FOR HOUSEHOLDS IN
THE CITY AND ENSURING SEATTLE
REMAIN A DIVERSE INCLUSIVE
PLACE TO LIVE. IN 2023,
BUILDING ISSUES WERE ISSUED FOR
227 PROJECTS MEETING MHA
REQUIREMENTS. THE AMOUNT OF
PAYMENTS WE RECEIVED DECREASED
BY 15% WHILE THOSE CHOOSING THE
PERFORMANCE OPTION INCREASED BY
60%. NEXT SLIDE, PLEASE. AN
INCREASE IN THOSE CHOOSING TO
PERFORM IS NOTED HERE IF YOU
NOTICE. THE DIFFERENCE BETWEEN
THE TWO DATES, COMMITMENTS. AND
THEN, THOSE PAYMENTS GENERATED
THROUGH THE MHA PROGRAM HAVE
CREATED OATH RENTAL AND
PERMANENTLY AFFORDABLE HOMES
AND IN 2023, THE PAYMENTS
RECEIVED FUNDED TWO APARTMENT
BUILDINGS AND 26 PERMANENTLY
AFFORDABLE HOMES. AND THAT WAS
JUST A LOT OF DATA AND A LOT OF
NUMBERS THROWN AT YOU THIS
MORNING. SO, WE ARE HAPPY TO
TAKE QUESTIONS.
>> YEP, THANK YOU, THAT WAS A
VERY RAPID REVIEW OF SOME
PRETTY HEFTY INFORMATION.
>> YES. LOTS OF NUMBERS.
>> I'M ASSUMING THERE WILL BE
QUESTIONS. YES, COUNCILMEMBER
WOO?
>> QUICK QUESTION, HOW DO
PEOPLE EXPIRE OUT OF THE HOME
OWNERSHIP MFTE ?
>> HOW DO THEY EXPIRE?
>> I'M JUST CURIOUS.
>> I DO NOT KNOW WHY THEY DO
BUT THE TAX EXEMPTION IS FOR A
LIMITED AMOUNT OF TIME AND
IT'S -- I'M LOOKING AT KELLI
TO MAKE SURE I'M GETTING IT
RIGHT. IT'S A 12 YEAR TIME
PERIOD FOR THE HOMEOWNERSHIP
AND AT THE END OF THAT, THE
RENEWAL, THE EXTENSION OPTION I
THINK IS A RELATIVELY NEW
FUNCTION. KELLI, I'M ASKING
YOU.
>> YOU BET. SO HOMEOWNERSHIP --
MFTE E FOR AFFORDABLE
HOMEOWNERSHIP IS USED
EXCLUSIVELY BY OUR NONPROFIT
EXISTING PARTNERS. IT HELPS TO
MAKE PROJECTS WORK AND THOSE DO
NOT TYPICALLY END BEFORE THE 12
YEAR PERIOD, THEY TAKE UP THE
ENTIRE 12 YEAR EXEMPTION PERIOD
THAT THEY ARE ABLE TO AND AT
THE END OF 12 YEARS, THEY
EXPIRE.
>> THANK YOU FOR ALL THAT YOU
DO. THIS IS AMAZING RESULTS AND
I LOOK FORWARD TO SEEING IT
DOUBLE OR FURTHER IN THE NEXT
COUPLE YEARS.
>> THANK YOU. COUNCILMEMBER
SAKA?
>> THANK YOU, MADAM CHAIR AND
THANK YOU DIRECTOR MAIKO
WINKLER-CHIN , KELLI, AND
ANDREA, I APPRECIATE YOUR TIME
HERE AND THIS REPORT OUT. I
COULDN'T AGREE MORE ABOUT THE
RAPID SPEED, LIGHTNING FAST
OVERVIEW DISTILLING A VERY
COMPLEX TOPICS IN ABOUT 12
MINUTES BUT IT WAS A GOOD
REFRESHER AS WELL. JUST
CURIOUS, HOW MANY CITIES IN
WASHINGTON CURRENTLY HAVE MHA
PROGRAMS AND WHAT ARE THE
CLOSEST ONES, GEOGRAPHICALLY,
TO SEATTLE?
>> I DO NOT KNOW THAT NUMBER
OFF THE TOP OF MY HEAD AND I
WILL HAVE TO GET BACK TO YOU.
TO BOTH OF THOSE.
>> THANK YOU, YEAH, WOULD
DEFINITELY LOVE TO HEAR MORE
ABOUT THAT WHEN YOU LEARN. SO,
THANK YOU. PLEASE DO GET BACK.
WITH RESPECT TO PERFORMANCE
VERSUS PAYMENT OPTIONS FOR MHA,
GOOD TO SEE SOME OF THE DATA
ROLLING IN THAT MORE DEVELOPERS
ARE CHOOSING TO PERFORM, LESS
ARE CHOOSING TO PAY HIGH LEVEL
WHICH IS A GOOD TREND WE WANT
TO CONTINUE TO INCREASE AND
KEEP THAT TREND GOING. CAN I
ASK, WHAT ARE SOME OF THE
BARRIERS TO DEVELOPERS CHOOSING
TO PERFORM RATHER THAN, WHICH
FROM MY PERSPECTIVE IS MORE
FAVORABLE, VERSUS PAYMENT WHICH
IS LESS FAVORABLE. LESS
DESIRABLE, FROM MY PERSPECTIVE.
>> COUNCILMEMBER, WHAT ARE SOME
OF THE BARRIERS. I THINK WE'VE
THOUGHT MORE ABOUT WHY THE
SHIFT MIGHT BE HAPPENING AT
THIS MOMENT IN TIME AS TO WHY
WE ARE SEEING MORE PERFORMANCE
OUT OF SIGHT. AND I THINK AS WE
HAVE DISCUSSED THIS WITHIN THE
OFFICE, BECAUSE I THINK WE GOT
THIS QUESTION FROM THE SEATTLE
TIMES ACTUALLY AS THEY WERE
LOOKING AT THE REPORTS AS WELL.
WE THINK SOME OF THE SHIFT HAS
TO DO WITH CITY COUNCIL
ORDINANCE THAT WAIVED DESIGN
REVIEW FOR PROJECTS CHOOSING TO
PERFORM SO THE CITY COUNCIL HAS
MADE IT PERHAPS MORE ENTICING
FOR PEOPLE TO ACTUALLY GO
THROUGH THE PERFORMANCE OPTION.
THE OTHER THING HAS TO DO, WE
BELIEVE, WITH THE COST OF
MONEY. IF YOU ARE CHOOSING TO
PAY INSTEAD OF PERFORM, YOU PAY
AT THE START OF YOUR PERMITS.
YOU PAY MUCH EARLIER THAN YOU
WOULD AND IT'S MONEY OUT AND
RIGHT NOW THE COST OF MONEY IS
REALLY EXPENSIVE BECAUSE OF
INTEREST RATES AND, SO, IT IS
INCENTIVIZING PEOPLE TO CHOOSE
THE PERFORMANCE OPTION AT THIS
TIME. AND WE THINK BOTH ARE A
GOOD THING. IT IS VERY CURIOUS
TO SEE THAT THE ORDINANCE OF
CITY COUNCIL PASS HAS
POTENTIALLY DRIVEN PEOPLE TO
ACTUALLY PERFORM WHICH IS
GREAT.
>> ALL RIGHT, THANK YOU. AND
THEN, FINAL QUESTION HERE, WHAT
IS THE -- THAT'S WHAT ARE SOME
OF THE -- I GUESS IMPLICIT IN
YOUR RESPONSE IS SOME OF THE
BARRIERS. DESIGN REVIEW ,
COUNCIL PASSED AN ORDINANCE TO
DIRECTLY ADDRESS THAT AND
SIMPLIFY AND ELIMINATE THAT IN
CERTAIN CIRCUMSTANCES, GREAT.
SOME OF THE COSTS, OKAY. WHAT
IS THE PATH IN YOUR VIEW TO
MAKING SURE TO THE EXTENT THAT
IT'S DESIRABLE, IT IS FROM MY
PERSPECTIVE, THAT WE HAVE MORE
DEVELOPERS PERFORM RATHER THAN
PAY. WHAT IS THE PATH TO
CONTINUING THAT TREND IN A GOOD
DIRECTION?
>> INTERESTING YOU SHOULD BRING
THAT UP. THERE IS AN MHA REVIEW
SO WHEN THE LEGISLATION WAS
PASSED, MAYBE FIVE YEARS AGO TO
HAVE THIS MANDATORY HOUSING
AFFORDABILITY PROGRAM, THERE
WAS LANGUAGE IN THERE TO HAVE
US DO A REVIEW SO WE ARE IN THE
MIDDLE OF THAT REVIEW PROCESS
RIGHT NOW AND I THINK LIKE WITH
MOST PROGRAMS, YOU NEED TO MAKE
ADJUSTMENTS ALONG THE WAY, DID
IT MEET THE OUTCOMES THAT YOU
HAD ANTICIPATED DOING? SO THE
MAYOR'S OFFICE RIGHT NOW IS
WORKING ON A STUDY. WE ARE IN
THE MIDDLE OF THAT AND WE ARE
ENGAGING SOME RESEARCHERS TO
HELP US UNDERSTAND THAT AND I
THINK IF THAT IS THE -- IF WE
REALLY WANT TO HOLD OFF UNTIL
WE SEE THE DATA FROM THAT TO
FIGURE OUT HOW BEST TO IN SENT
THAT IN SOME WAYS. I WOULDN'T
KNOW BECAUSE I'M NOT A
FOR-PROFIT DEVELOPER. BUT ALSO
WHEN YOU ARE LOOKING AT THE
UNDERLYING LAND USE CODES,
CERTAIN -- WE MIGHT NEED TO
TINKER SOME ADJUSTMENTS IN
ORDER TO MAKE THAT HAPPEN.
>> FAIR ENOUGH. THANK YOU FOR
SHARING. IT SOUNDS LIKE THERE
IS A PENDANT REVIEW AND REPORT
COMING OUT. ANY SENSE ON WHEN
WE CAN EXPECT TO SEE THE REPORT
RELEASED?
>> I THINK THE RESEARCH IS
GOING TO BE DONE, I THINK
COUNCILMEMBER MORE HAS THE MOST
RECENT.
>> WE ARE LOOKING AT DECEMBER.
>> OKAY. IN A YEAR? GREAT.
THANK YOU. WAIT, CHAIR MOORE,
IS YOUR OFFICE PERFORMING THAT
REVIEW?
>> OH, NO.
>> OKAY, COOL, THANK YOU.
>> WE CONTRACT IT OUT. COUNCIL
PRESIDENT NELSON?
>> THANK YOU VERY MUCH FOR
GOING THROUGH QUICKLY YOUR
INVESTMENTS IN OF YOUR VARIOUS
FUND SOURCES AND I HAVE A
QUESTION ABOUT WHAT IS NOT
INVESTED AND WE HAVE BEEN
DIGGING INTO THE CITY OF
SEATTLE'S AUDITED
COMPREHENSIVE FINANCIAL REPORTS
AND JUST LOOKING AT THE FUND
BALANCES FOR THE LOW INCOME
HOUSING FUND, THE OFFICE OF
HOUSING FUND AND THE HOUSING
OFFICE'S BUDGET IN THE GENERAL
FUND, IT LOOKS LIKE THERE'S
ABOUT A TOTAL OF 337 MILLION IN
UNSPENT FUNDS FOR 2023 AND A
MINIMUM OF ABOUT 150 MILLION
FOR PRIOR YEARS AND I
UNDERSTAND THAT THERE ARE MANY
REASONS WHY IT IS DIFFICULT TO
GET MONEY OUT THE DOOR. ALSO
ACCORDING TO CENTRAL STAFF, AS
OF MARCH 31st, 2024, OFFICE OF
HOUSING HAD ABOUT $442 MILLION
IN CAPITAL FUNDING CASH BALANCE
AND AVAILABILITY AUTHORITY, SO
IS THERE A PLAN FOR ADDRESSING
SOME OF THE BARRIERS TO GETTING
THIS MONEY OUT THE DOOR FASTER
OR HELPING NONPROFIT HOUSING
PROVIDERS, I DON'T KNOW, PUT
TOGETHER MORE DOABLE PROJECTS
OR SOMETHING? I'VE MENTIONED
THIS IN PREVIOUS MEETINGS
BEFORE . IF WE CAN'T GET THIS
MONEY OUT THE DOOR WE ARE
BASICALLY OPERATING A SAVINGS
ACCOUNT AND AT THE SAME TIME AS
THE PUBLIC COMMENT ARE SAID, WE
ARE TAXING THE PRODUCTION OF
MULTI FAMILY HOUSING AND ALSO
OUR POVERTY OWNERS ARE PAYING
INTO THE HOUSING LEVY WHICH IS
MAKING HOUSING MORE EXPENSIVE
FOR EVERYBODY.
>> SO, WE ARE SCRIBBLING AND
TRYING TO UNDERSTAND THE
QUESTION. A COUPLE OF THINGS,
COUNCIL PRESIDENT. IT FEELS
LIKE A LONG TIME AGO BUT KELLI
LARSEN INDICTED A PRESENTATION
ON , I THINK IT MIGHT'VE BEEN
THE FINANCING THAT HAPPENS IN
HOUSING AND IF YOU REMEMBER
THAT I CAN FORWARD OVER THE
SLIDE LATER. THERE'S A GAP OF
TIME BETWEEN WHEN WE AWARD A
PROJECT AND WHEN IT ACTUALLY
FALLS UNDER CONSTRUCTION. THAT
IS WHEN THE PERSON WHO RECEIVES
THE FUNDINGS GOES OUT AND FINDS
OTHER SOURCES OF FUNDING TO
LEVERAGE THAT SO WE ARE NOT
PAYING FOR 100% OF THE HOUSING,
SO WE AS WELL AS THE LOW INCOME
HOUSING TAX CREDIT AS WELL AS
THE BANK, AS WELL AS THE STATE,
HAVE ALL INVESTED IN THAT AND
THAT CAN TAKE TIME. SO, THE
DOLLARS SIT IN AN ACCOUNT WHILE
THAT WORK IS HAPPENING ,
OTHERWISE WE WOULD END UP
PAYING FOR THE WHOLE PROJECT
ITSELF AND THAT'S NOT THE WAY
THE FUNDING IS SET UP. THE
OTHER THING THAT WE HAVE DONE,
INTERNALLY FOR THE OFFICE IS
THAT FOR OUR FUNDING CRITERIA,
WE HAVE REQUESTED THAT PRIORITY
BE GIVEN TO PROJECTS THAT WILL
BE UNDER DEVELOPMENT AND I
THINK IN THE LAST ROUND ABOUT A
YEAR AND A HALF FROM THE MOMENT
THAT IT -- THE AWARD. SO WHAT
THAT MEANS THEN IS THAT THE
PROJECTS HAVE TO BE UNDER,
MOVING ALONG IN THE PERMIT
PROCESS AS WELL BECAUSE
PROJECTS TYPICALLY DON'T WANT
TO INVEST A LOT OF MONEY INTO
STARTING THE WHOLE DEVELOPMENT
AND PERMITTING PROCESS UNTIL
THEY ARE INSURED THAT WE ARE
WILLING TO INVEST IN IT. SO,
PART OF IT WE CAN GET BACK TO
EXACTLY ON THE NUMBERS BECAUSE
IT'S A DIFFERENCE BETWEEN I
THINK ENCUMBERED AND COMMITTED.
IF THAT'S CORRECT. AND
EXPENDED. BECAUSE IT TAKES A
WHILE TO SPEND DOWN THE DOLLARS
TOO ONCE YOU'VE CLOSED ON OUR
LOANS BECAUSE THE PROJECT
CONSTRUCTION PROJECT CAN TAKE
ABOUT 18 MONTHS.
>> DOES THE BALANCE EVER GET
TOO NEAR ZERO OR SO? BECAUSE
237 OR 400 MILLION, THAT IS A
BIG CHUNK OF JUST WHAT THE
TOTAL AMOUNT OF THE HOUSING
LEVY.
>> I WOULD HAVE TO THINK ABOUT
IT OFF THE TOP OF MY HEAD, NO,
BECAUSE LIKE THIS YEAR WE ARE
GIVING, LAST YEAR WE GAVE OUT I
DON'T KNOW ABOUT $55 MILLION.
THOSE PROJECTS ARE NOT UNDER
CONSTRUCTION YET. AND THEY
WON'T BE UNTIL LATER ON THIS
YEAR. SO THAT DOLLAR STOOD OUT.
AT THIS POINT, WE ARE ANNOUNCED
112 MILLION DOLLAR LEVY. YOU
ARE GOING TO EXPECT THOSE TO
NOT BE CLOSED ON IN THE LOAN
FOR ABOUT A YEAR AND A HALF TO
TWO YEARS. AND THEN, FOR THEM
TO BE FULLY EXPENDED, A
CONSTRUCTION PROJECT TAKES
ABOUT 18 MONTHS TO COMPLETE.
SO, THOSE DOLLARS WILL NOT HAVE
BEEN FULLY SPENT FOR SEVERAL
YEARS . IT TAKES A WHILE TO
SPEND DOWN THOSE DOLLARS,
RIGHT? AND FOR A CONSTRUCTION
PROJECT TO BE DONE BUT IT TAKES
A WHILE FOR YOU TO GET YOUR
FINANCING AS WELL AS TO GET
THROUGH THE WHOLE PERMITTING
PROCESS FOR THAT.
>> SO WHEN YOU SAY GET THOSE
DOLLARS OUT, DO YOU JUST WRITE
A CHECK TO THE PROJECT AND THEN
WOULD IT BE OUT THE DOOR AND
THEY PROCEED WITH THEIR --
>> NO. THAT'S A LEVEL OF
DETAIL THAT IS DEEPER THAN IN
THE FINANCING CHART THAT WE
SHOWED WHERE WE SHOWED IT TAKES
PROJECTS A WHILE SO WE SIGNED.
WE CLOSE ON THE LOAN . IT'S A
LEGALLY BINDING LOAN AND IT'S
ALL THE DIFFERENT FUND SOURCES
CLOSING AND THEN THE SPENDING
DOWN OF DOLLARS HAPPENS
THROUGHOUT THE CONSTRUCTION.
WHICH CAN BE 18 MONTHS. BECAUSE
IF WE GIVE ALL OF THE MONEY TO
THE DEVELOPER UP FRONT, WE WANT
SOME CONTROLS TO MAKE SURE THEY
ARE ACTUALLY CONSTRUCTING. SO
THERE'S A DIFFERENCE.
>> THERE'S A DIFFERENCE
BETWEEN SPENT AND ENCUMBERED?
>> IT'S AWARDED.
>> I'M SORRY, ENCUMBERED AND
THEN EXPENDED, AN ENCUMBRANCE
IS A LEGALLY BINDING POINT IN
THE PROCESS, AWARDED IS, THERE
STILL SOME CONTINGENCIES
INCLUDING SOME OTHER FINANCING
THAT MAY NEED TO TAKE PLACE SO
IT'S AT THE POINT IN WHICH ALL
THOSE OTHER FUNDING SOURCES ARE
ALIGNED AND COMMITTED AND WE
MAKE AN ENCUMBRANCE OF THOSE
DOLLARS AND IT BECOMES LEGALLY
BINDING, BUT WE DO CONSIDER IT
AN AWARD ALSO, AS A LIABILITY,
BECAUSE THOSE DOLLARS HELP TO
LEVERAGE OTHER FUNDS. THE CITY
TENDS TO BE THE FIRST IN TO
PROJECTS AND IT ALLOWS US TO BE
LEADING ON THE PROJECTS THAT WE
WANT TO SEE OTHERS INVEST IN
WITHIN THE CITY OF SEATTLE AND
IT HELPS US DIRECT OTHER
DOLLARS TO ENSURE THAT THEY ARE
WITHIN THE CITY.
>> BASICALLY IT'S NORMAL THAT
THERE IS AN OFFICE OF HOUSING
BUDGET ABOUT 500 OR SOMETHING
MILLION AND THAT THERE IS
ALWAYS GOING TO BE AN LARGE
BALANCE AT THE END OF THE YEAR.
OKAY.
>> THERE WILL ALWAYS BE A LARGE
BALANCE, YES.
>> I WOULD LIKE TO SEE MORE
INFORMATION ON THIS AT SOME
POINT. THANKS.
>> THANK YOU, COUNCILMEMBER
MORALE IS.
>> THANK YOU, GOOD MORNING,
EVERYONE. I HAVE QUESTIONS
ABOUT EACH OF THE DIFFERENT
REPORTS. I WILL START WITH HIM
FTE. I AM KIND OF THINKING OUT
LOUD HERE, SO BEAR WITH ME. WE
HAVE TYPICALLY THESE PROJECTS
HAVE A 10 OR 12 YEAR TAX
CREDIT. BUT AT THAT POINT, IT
FEELS -- IT SEEMS LIKE CASH
FLOW SHOULD BE STABILIZED AND
AFFORDABILITY MIGHT BE ABLE TO
INCREASE. SO, I'M INTERESTED,
I KNOW WE WILL HAVE THIS
CONVERSATION A LITTLE BIT LATER
BUT, IT FEELS LIKE OVER A FEW
CYCLES AT LEAST SOME OF OUR
MFTE BUILDINGS ARE AT 30 TO 80%
AMI OR HIGHER . WE COULD BE
MOVING IN THAT DIRECTION,
OTHERWISE IT FEELS LIKE IT
MIGHT JUST BE A WINDFALL TO THE
PROJECTS ITSELF AT RENEWAL SO
I'M TRYING TO UNDERSTAND, WHAT
THAT AFFORDABILITY RATE SHOULD
CHANGE TO. SO THAT WE ARE
ENSURING THE STABILITY OF THESE
PROJECTS AND WE ARE REALLY
TRYING TO ENSURE A LONGER-TERM,
MORE PERMANENT AFFORDABILITY
FOR FOLKS.
>> SO, COLLECT -- CORRECT ME IF
I'M WRONG, BUT THE RENEWAL
OPTION, THE MFTE PROGRAM IS FOR
12 YEARS AND IN 2021 THE STATE
AUTHORIZED AN EXTENSION FOR AN
ADDITIONAL 12 YEARS AND OUR
RULES ARE THAT IF YOU ARE GOING
TO EXTEND FOR ANOTHER 12 YEARS,
YOU HAVE TO LOOK AT THE
EXISTING PROGRAM, NOT THE ONE
THAT YOU ORIGINALLY SIGNED UP
FOR, BUT THE EXISTING PROGRAM
AND I BELIEVE IT'S A 10% AMI
DROP IN THAT RENT LEVEL. SO,
AND THAT WAS PUT INTO PLACE, I
BELIEVE WITH THE BELIEF THAT A
NEW UNIT IS PROBABLY MORE
VALUABLE THAN AN OLDER UNIT, SO
WHEN YOU WOULD CASH RIGHT NOW,
IF SOMEBODY WERE TO RENEW, THEY
WOULD BE RENEWING NOT AT THEIR
OLD P2, P3 LEVEL, BUT THE P6
LEVEL AND IF YOU ARE RENEWING
YOU WOULD DO A 10% AMI DROP IN
WHAT THE VENT SHOULD BE FOR
THAT. FOR THAT UNIT TYPE. IF
THAT MAKES SENSE.
>> KELLI, DO YOU WANT TO STEP
IN?
>> THAT'S CORRECT AND I THINK
WE ARE BRINGING THIS FORWARD
FOR PROGRAM SEVEN
REAUTHORIZATION AS WELL,
CONSIDERATION OF POTENTIALLY
DIFFERENT LIMITS, WE DON'T
KNOW EXACTLY YET WHAT THAT
WOULD LOOK LIKE BUT THAT WOULD
BE PART OF THE DISCUSSION IN
THE EARLY PART OF 2025.
>> OKAY. LET'S MOVE TO -- I'M
INTERESTED IN THE RENTAL
ASSISTANCE. YOU MENTIONED THAT
SOME OF THAT IS STATE FUNDING.
CAN YOU TELL US WHAT THE SOURCE
IS FOR THAT STATE FUNDING?
>> KELLI, DO YOU KNOW THE
SOURCE OF THE STATE FUNDING FOR
THAT?
>> BB GI BELIEVE AND
POTENTIALLY SOME COVID RELIEF
THAT WAS PASSED THROUGH THE
STATE BUT WE CAN GET BACK TO
YOU ON DETAILS.
>> THAT RENTAL ASSISTANCE IS
PROVIDED DIRECTLY TO LANDLORDS.
>> KELLI I█S NODDING HER HEAD.
>> OUR EVICTION PREVENTION
FUNDS, IS THAT ADMINISTERED BY
OH OR IS THAT SDI SEE?
>> THE PREVENTION DOLLARS THAT
ARE IN THE HOUSING LEVY ARE
PASSED THROUGH TO THE HUMAN
SERVICES DEPARTMENT WHO HOLDS
CONTRACTS.
>> GOT IT. OKAY. SO, WE HEARD
LAST COMMITTEE FROM LANDLORDS
THAT MAINTAINING THEIR
DWELLINGS TO CODE IS AN ISSUE.
CAN YOU TALK ABOUT WHAT FUNDING
IS AVAILABLE TO HELP LANDLORDS
WITH SERIOUS HABITABILITY
ISSUES AND CAN YOU TALK ABOUT
WHETHER -- HAS WORKED WITH S
TCI TO HELP LANDLORDS WITH
HABITABILITY ISSUES AND
ACCESSING FUNDING.
>> DID YOU SAY HABITABILITY?
>> YES. OKAY. SO WE HEARD FROM
CHIP AND ANDREW AND MICHAEL,
ABOUT SOME OF THE CHALLENGES
THAT THEY ARE HAVING. SOME OF
IT IS PROPERTY DAMAGE BUT WE
ALSO KNOW THAT A LOT OF -- I
HEAR FROM A LOT OF CONSTITUENTS
WHO HAVE HABITABILITY ISSUES
THAT THEIR UNITS ARE NOT BEING
MAINTAINED, SO MY QUESTION IS,
WHAT SUPPORT DO LANDLORDS GET
FOR KEEPING THEIR UNITS UP TO
CODE.
>> AND WHETHER WE WORK WITH
STCI ON IT.
>> KELLI, COULD I ASK YOU TO
TALK ABOUT THE OPERATING
SUPPORT DOLLARS THAT OF GONE
OUT?
>> WE RECENTLY RELEASED $14
MILLION FOR OPERATING
STABILIZATION OR THE OH FUNDED
PROVIDERS THAT ARE OPERATING
HOUSING IN THE CITY OF SEATTLE.
THIS WAS AN OPPORTUNITY TO
SUPPORT FOLKS DEALING WITH SOME
OF THESE ISSUES IN THEIR
PORTFOLIOS PARTICULARLY THOSE
WITH OLDER HOLDINGS AND LARGER
PORTFOLIOS THAT ARE
EXPERIENCING HIGHER RISKS AND
CHALLENGES ACROSS THE BOARD. WE
ALSO OPERATE PRESERVATION
FUNDS, THE OFFICE OF HOUSING
THAT DO PROVIDE THE OPPORTUNITY
FOR PROVIDERS TO SUBMIT
PROJECTS FOR SOME OF THEIR
OLDER PORTFOLIO PROJECTS TO
COME IN FOR REINVESTMENT AND
REHABILITATION. WE ARE LIMITED
IN ALL THE FUNDS THAT WE HAVE
BUT WE HAVE PUT FORWARD THIS
NEW -- THAT WE JUST DID WAS A
FIRST TIME FOR ALL OF US AND WE
UNDERSTAND IT'S BEEN
RELATIVELY WELL RECEIVED FROM
PROVIDERS AND CONTRACTS ARE
GETTING UNDERWAY NOW.
>> GREAT. AND FINAL QUESTION?
>> COUNCIL MEMBER I WOULD ALSO
REMIND FOLKS THAT ALL OF THE
PROJECTS THAT HAVE BEEN FUNDED
THAT THE OFFICE OF HOUSING HAS
INVESTED IN FOR THE LAST TWO
YEARS HAVE A REPLACEMENT
RESERVE REQUIREMENT AND THOSE
DOLLARS SHOULD BE GOING TOWARD
HABITABILITY AS WELL SO THAT IS
A DEEP -- WE ARE REALLY
STARTING TO REALLY THINK ABOUT
HOW WE BETTER ASSET MANAGE AND
HELP ORGANIZATIONS DO THAT. I
THINK THE ORGANIZATIONAL
STABILIZATION FUNDS THAT WE
JUST PUT OUT IS PART OF THAT
BUT AS WE START THINKING ABOUT
OUR PROJECTS THAT HAVE BEEN
AROUND FOR A LONG TIME AND IN
THE DEVELOPMENT OF THE HOUSING
LEVY, I THINK IT WAS CLEAR FROM
HEARING FROM PROVIDERS AT THAT
TIME THAT THEY WANTED MORE
DOLLARS TOWARDS REHABILITATION
AND THAT'S WHY, I THINK, IN
THE UPCOMING LEVY WE'VE BEEN
MUCH MORE CLEAR ABOUT IT AND
HAVE TO BE CLEARER IN OUR
COMMUNICATION WITH OUR
INVESTEE'S THAT THESE DOLLARS
ARE AVAILABLE AND TARGETING
PRIORITIZATION AND
REHABILITATION OF THESE
PROJECTS.
>> I WILL JUST SAY, THERE IS
CERTAINLY AN ISSUE WITH
MAINTENANCE. IT IS EXPENSIVE,
IT'S GETTING MORE EXPENSIVE,
I'M SURE, BUT WE HEAR
REGULARLY FROM CONSTITUENTS,
WHETHER IN NONPROFIT HOUSING OR
REGULAR HOUSING THAT THEIR
UNITS ARE NOT BEING PROPERLY
MAINTAINED AND WE ALSO HEAR A
LOT ABOUT PROPERTY MANAGERS IN
GENERAL AND SORT OF A SEPARATE
ISSUE FOR ME AND A QUESTION
THAT I HAVE IS WHAT OUR ABILITY
IS TO KIND OF REGULATE PROPERTY
MANAGERS BECAUSE A LOT OF THESE
COMPANIES, ENTITIES USE
THIRD-PARTY PROPERTY MANAGEMENT
COMPANIES. THERE IS NO
ACCOUNTABILITY FOR THEIR
RESPONSIVENESS, WHETHER A
BROKEN TOILET OR MOLD IN THE
UNIT OR PEST INFESTATION AND I
HAVE BEEN IN SIDE UNITS THAT
ARE NOT HABITABLE. AND NOBODY
SHOULD BE LIVING IN THE
CONDITIONS THAT SOME OF THESE
UNITS ARE IN SO I DO THINK WE
HAVE SORT OF ANOTHER OBLIGATION
TO UNDERSTAND BETTER HOW WE
HOLD PROPERTY MANAGEMENT
COMPANIES ACCOUNTABLE BUT WE
ALSO NEED TO MAKE SURE THAT THE
DEVELOPERS THAT WE ARE
PROVIDING PUBLIC DOLLARS TO
CREATE HOUSING ARE ALSO
ACCOUNTABLE FOR KEEPING THOSE
UNITS AND HOLDING THEIR
PROPERTY MANAGERS ACCOUNTABLE
IF THAT IS THE SORT OF
OPERATION -- ORDER OF
OPERATIONS THERE.
>> YEAH, WE ARE COMING BACK
FROM A PERIOD WHERE WE ARE
DOING OUR PHYSICAL INSPECTIONS
OF UNITS. DURING THE PANDEMIC,
THAT STOPPED, SO I THINK IT WAS
IN 2023 WHEN WE WENT AND
REINSPECTED ALL UNITS OR THE
MAJORITY OF UNITS IN THE
PORTFOLIO AND DEPENDING ON HOW
YOU SCORED AND WHETHER OTHER --
WE ARE NOT THE ONLY INVESTOR
OFTEN TIMES IN THESE PROJECTS
THAT ARE WITHIN OUR PORTFOLIO,
TYPICALLY THE STATE AND THE
WASHINGTON STATE HOUSING
FINANCE COMMISSION, THEY ARE
STARTING TO DO THIRD-PARTY
PROPERTY INSPECTIONS SO WE ARE
TRYING TO SINK UP AND MAKE SURE
THAT THE PROJECTS THAT REQUIRE
MORE INSPECTION GET MORE
INSPECTION AND THEN YOU, AS
SOMEBODY THAT HAS BEEN
INSPECTED BEFORE YOU GET AN
INSPECTION REPORT AND YOU HAVE
TO GO FIX CERTAIN THINGS AND
REPORT BACK. I ALSO THINK THE
RENTING IN SEATTLE WORK GROUP
WHICH SITS IN STCI DOES
COMMUNICATE WITH US AND WE HAVE
CONVERSATIONS BETWEEN THE
DEPARTMENTS AS TO WHAT THEY ARE
SEEING BUT THERE IS THE
LANDLORD TENANT ACT, THE
RESIDENTIAL LANDLORD TENANT ACT
WHICH DOES COVER WHAT IS THE
LANDLORDS RESPONSIBILITY, WHAT
IS THE RESIDENTS
RESPONSIBILITY, HOW THAT
COMMUNICATION SHOULD HAPPEN AND
THAT WORKS WITH STCI AND THAT
DOCUMENT IS TRANSLATED INTO
MULTIPLE LANGUAGES AND AS A
REQUIREMENT OF WHEN THEY ARE
MOVING INTO PROPERTY YOU ARE
SUPPOSED TO GET THAT, THAT'S
BEEN A LONG-STANDING RULE FOR
20 YEARS. YOU HAVE TO GET THAT.
>> WE WILL DEAL WITH THE STCI
IN MY COMMITTEE, SO. MY LAST
QUESTION, WE KNOW THAT THE
PAYROLL EXPENSE TAX IS THE
LARGEST FUNDING SOURCE FOR
OFFICE OF HOUSING. BASED ON
THIS ANNUAL REPORT, CAN YOU
TALK ABOUT HOW MANY OF THE
PROJECTS ARE ALSO FUNDED WITH
EDI MONEY?
>> THAT WE WOULD HAVE TO GET
BACK. YEAH. THAT WOULD BE GOOD.
THANK YOU.
>> THANK YOU VERY MUCH.
>> THE RECORD WILL REFLECT THAT
COUNCILMEMBER RIVERA HAS JOINED
US. DID YOU HAVE ANY QUESTIONS,
COUNCILMEMBER?
>> I DO, CHAIR. THANK YOU FOR
THE OPPORTUNITY AND THANK YOU
FOR THE REPORT. DO YOU ALL HAVE
A DASHBOARD BECAUSE, TO THE
POINT WE MADE EARLIER, THIS IS
A LOT OF INFORMATION BUT I ALSO
NOTED THERE'S A LOT OF
APARTMENTS BEING CREATED BY THE
VARIOUS PROGRAMS AND SO, DO YOU
ALL CARRY A DASHBOARD THAT
SHOWS EACH OF THE PROGRAMS WITH
HOW MANY UNITS AND THEN TOTAL
NUMBER OF UNITS AT THE END?
BECAUSE THIS ISN'T REALLY --
YOU KNOW, IT IS A LOT OF
DIFFERENT UNITS, LIKE I SAID
WITH DIFFERENT PROGRAMS. I
THINK IT WOULD BE REALLY
HELPFUL TO SEE IT IN A
DASHBOARD. DO YOU ALL HAVE
THAT?
>> WE HAVE WEBSITES, DASHBOARD.
WE HAD A MAYOR'S FELLOW
DEVELOP FOR US, I GUESS YOU
WOULD CALL IT A DASHBOARD THAT
SHOWS THE MF -- MFTE UNITS .
>> THANK YOU FOR THE QUESTION.
WE DON'T HAVE THE KIND OF
DASHBOARD YOU ARE SPEAKING OF.
WE ARE WORKING TOWARD THAT. THE
OFFICE OF HOUSING IS CURRENTLY
WORKING ON UPDATING OUR
DATABASE SYSTEMS TO ALLOW US TO
HAVE BETTER REPORTING. WE'VE
BEEN WORKING WITH MULTIPLE
SYSTEMS OVER TIME, EVOLUTION
THAT HAS MADE IT HARDER FOR US
TO SEE ACROSS ALL OF OUR
PROGRAMS. WE ARE EXCITED THAT
IN THE NEXT YEAR WE WILL HAVE A
NEW VENDOR, CROSSING OUR
FINGERS THAT WILL ALLOW US TO
WORK WITH ALL OF THE DATA THAT
WE HAVE MORE EFFECTIVELY AND I
THINK THAT THE QUESTION YOU ARE
ASKING IS EXACTLY THE KIND OF
VISION THAT WE WANT TO BE ABLE
TO HAVE AVAILABLE BECAUSE THERE
ARE SO MANY PROGRAMS THAT ARE
PROVIDING SUCH GREAT OUTCOMES
ACROSS THE CITY.
>> AND I SHOULD HAVE PROVIDED
SOME CONTEXT AS TO WHY I WAS
ASKING AS WELL, IT'S JUST YOU
KNOW, WE ARE HAVING A LOT OF
CONVERSATIONS ABOUT NEED ACROSS
THE CITY, HOUSING NEED AND
VARIOUS MI AT VARIOUS AMI
LEVELS AND I'M NOT CLEAR AND I
HAVE NOT BEEN ABLE TO GET CLEAR
-- A CLEAR PICTURE ON WHAT THAT
ACTUAL NEED IS. AND WE ARE
CREATING A LOT OF UNITS. IT
MAKES IT REALLY HARD TO TRACK,
ARE WE ACTUALLY ADDRESSING THE
NEED OR ARE WE NOT? WHERE ARE
WE FALLING SHORT? THAT IS NOT
CLEAR FROM WHAT WE HEAR
ANECDOTALLY, THE NEED IS ON
HOUSING AND THEN, THIS
PRESENTATION THAT SO GREATLY
SHOWS ALL THE GREAT WORK THAT
THE CITY IS DOING TO CREATE
MORE HOUSING. IN THIS CASE, AT
THE LOW INCOME LEVEL, WHICH I
KNOW IS NEEDED TO. BUT WE NEED
TO SEE A BIGGER -- THE BIGGER
PICTURE. WHAT IS THE NEED? HOW
MUCH ARE WE CREATING ANNUALLY?
AND HOW MUCH WE HAVE LEFT TO GO
TO FILL THE NEED. I THINK THAT
WILL BE REALLY HELPFUL. I THINK
HAVING A DASHBOARD TO CLEARLY
LAY THAT OUT WOULD BE EXTREMELY
HELPFUL AS WE ARE LOOKING AT
OTHER LEGISLATIVE FIXES TO
SUPPORT THE BUILDING OF MORE
UNITS, BUT TODAY I'M NOT CLEAR
THAT WE ARE NOT ADDRESSING THE
NEED. I DON'T KNOW WHAT THE
BIGGER PICTURE NEED IS. THANK
YOU.
>> THANK YOU. ANY OTHER
QUESTIONS?
>> YEAH.
>> BUILDING ON THAT, I WILL SAY
THAT ONE NEED THAT I HEAR ABOUT
ALL THE TIME IS THE NEED FOR
MORE WORKFORCE HOUSING AND,
I'VE SAID MANY TIMES THAT IS
NOT A CATEGORY THAT IS FUNDED
IN THE HOUSING LEVEE AND, I
DON'T KNOW HOW WE WOULD ENTER
ON A DASHBOARD THAT NEED,
BECAUSE IT'S SO FLUID, BUT I
WILL NOTE THAT, THAT IS A NEED
THAT IS FILLED BY THE MFTE
PROGRAM AND I WILL PUT IN YET
ANOTHER PLUG FOR THIS BECAUSE
UNLIKE THE BALANCES THAT I
REFERENCED EARLIER, THAT SEEM
TO BE ONGOING, I DON'T KNOW IF
THAT IS -- IF THAT LEVEL OF
PERFORMANCE IS CONSIDERED
STANDARD IN OTHER CITIES THAT
PRODUCE, THAT HAVE FUNDS TO
PRODUCE AFFORDABLE HOUSING BUT
WHAT I WILL SAY IS THAT I AM
VERY MUCH HOPING THAT THE NEW
PROGRAM IS DESIGNED TO INCREASE
PARTICIPATION. BY DEVELOPERS.
BECAUSE YOU GET TWO POLICY
GOALS FULFILLED. YOU GET
PERFORMANCE, ON-SITE
PERFORMANCE, AND YOU ALSO GET
MORE AFFORDABLE HOUSING THAT IS
NOT, THAT THE CITY IS NOT
RESPONSIBLE FOR FUNDING, YES,
THERE IS A TAX REVENUE HIT, BUT
IT'S LESS THAN 200 MILLION PER
YEAR OR 337 PER YEAR AND I
THINK THAT LAST TIME WE WERE
TALKING ABOUT THE MFTE, YOU
SAID THAT THERE WOULD MAYBE BE
6 MILLION OR SOMETHING LIKE
THAT? IF I'M CORRECT, KELLI?
>> WHAT WAS THE QUESTION ON THE
6 MILLION?
>> THAT IS THE PROPERTY TAX
WELL, HIT FROM THE PROGRAM. IN
ANY CASE, MY POINT IS SIMPLY
THAT I REALLY WANT TO MAKE SURE
THAT THE OFFICE OF HOUSING IS
THINKING ABOUT EXPANDING
PARTICIPATION IN THE PROGRAM. I
UNDERSTAND THAT IT WAS SUPPOSED
TO END -- THIS PARTICULAR
PROGRAM WAS TO END THIS YEAR, I
RECENTLY REFERRED LEGISLATION
TO GRANT AN EXTENSION OF A
QUARTER THOMAS SO THE END OF
MARCH 31st IF THAT PASSES, BUT,
HOPEFULLY WE CAN GET SOME NEW
INFORMATION IN THE INTERIM TO
FIND OUT, I WOULD LIKE SOME
INFORMATION IN THE INTERIM TO
FIND OUT HOW THAT WORK IS
PROCEEDING ON THE NEXT HOUSING
PROGRAM.
>> FIRST, SOME RESPONSES TO
COUNCILMEMBER RIVERA AND
COUNCILMEMBER NELSON . I HAVE
TO GO BACK AND FIND THE ANNUAL
SHIFTED TAXES AMOUNT BUT IF
IT'S HIGHER THAN $6 MILLION IN
THE FORGONE TUXES -- TAXES ARE
ALSO SIGNIFICANT. THESE ARE
SOME OF THE IMPACTS WE ARE
BRINGING FORWARD TO MAKE CLEAR
WHAT THE COSTS AND BENEFITS ARE
OF THE MFTE PROGRAM WHICH WE
ARE REALLY INTERESTED IN
EXPLORING REALLY THOROUGHLY
ALONGSIDE OUR COUNSEL
COLLEAGUES AND, FOR
COUNCILMEMBER RIVERA, WE -- IT
WOULD BE GREAT TO REVISIT THE
HOUSING FINANCING BRIEFING FROM
MAY, 2024 WHERE WE DID DISCUSS
THE NEED FOR AFFORDABLE HOUSING
AND PRIVATE MARKET HOUSING IN
THE CITY OF SEATTLE WHICH IS
DICTATED BY THE MANAGEMENT
PLANNING COUNSEL, SO 112
THOUSAND NEW HOMES BY 2024 AND
THERE'S AN ARRAY ACROSS THE
DIFFERENT INCOME LEVELS OF NEED
AND THERE'S SOME REALLY CLEAR
SLIDES IN THOSE PRESENTATIONS
ABOUT WHERE WE HAVE NEEDS AND
WHAT THE OFFICE OF HOUSING WILL
DO WITH THE INVESTMENTS THAT WE
HAVE AND WE WOULD BE HAPPY TO
FOLLOW-UP WITH YOU ON THAT,
THANK YOU.
>> CHAIR, THANK YOU, KELLI. I
STILL THINK A DASHBOARD WOULD
BE REALLY HELPFUL TO CONTAIN
ALL OF THAT INFORMATION BECAUSE
WE ARE HAVING TO TACKLE BETWEEN
PRESENTATION AND WEBSITES AND
BETWEEN YOU ALL AND STC I TO
COUNCILMEMBER NELSON'S POINT,
WORKFORCE HOUSING AND, HOUSING
AT MARKET RATE, YOU ARE NOT
TRACKING THAT COME
UNNECESSARILY, BUT YOU ARE THE
OFFICE OF HOUSING, SO I THINK
IT'S NATURAL FOR PEOPLE TO
THINK THAT YOU ARE, BUT I DO
THINK THE CITY IN GENERAL NEEDS
TO PARTNER TOGETHER, BOTH OH
AND STCI TO PROVIDE SOME KIND
OF DASHBOARD BECAUSE THAT IS
ULTIMATELY WHAT WE NEED TO BE
ABLE TO SEE IT IN ONE PLACE,
ALL THE VARIOUS, LIKE I SAID,
PRESENTATIONS THAT YOU ALL
GIVE, STCI GIVES AND IN MY
MIND, THIS IS REALLY CRITICAL
IN TERMS OF THIS MAMA
ADDRESSING THIS NEED THAT WE
ARE TALKING ABOUT AND, IF I
MAY, COUNCIL PRESIDENT, I
WANTED TO ADDRESS THE QUESTION
YOU ASKED ABOUT THE MONEY OUT
THE DOOR AND, YOU KNOW, WHEN
DEPARTMENTS PUT OUT RFPs AND
RSIS AND PEOPLE APPLY, THEY GET
AN AWARD LETTER, YOU ARE
GETTING AWARDED X AMOUNT OF
MONEY BUT THAT IS NOT A
CONTRACT. AND SO, THE MONEY IS
NOT ACTUALLY ENCUMBERED UNTIL
THERE IS A CONTRACT AND THAT IS
WHAT OH WAS TALKING ABOUT IN
TERMS OF LEGALLY BINDING, SO
ONCE THE CONTRACT IS CREATED
WITH THAT AWARD THE MONEY
AMOUNT AND BOTH PARTIES HAVE
SIGNED, NOW YOU HAVE ENCUMBERED
THAT MONEY BUT IT DOESN'T MEAN
THE CITY DOES A REIMBURSEMENT
SYSTEM WHEN WE AWARD MONEY,
WHEN WE GIVE MONIES, SO ONCE
IT'S ENCUMBERED, WE ARE ON THE
HOOK FOR IT LEGALLY BUT THEN WE
DISPERSE IT IN CHUNKS AS THE
WORK IS ACTUALLY DONE BECAUSE
WE DO THIS REIMBURSEMENT MODEL,
SO THAT WE CAN MAKE SURE THAT
THE WORK ACTUALLY GETS DONE. SO
THE MONEY, THE CHECK IS NEVER
WRITTEN ON THE ONSET, IT'S AS
THEY DO THE WORK, THEN THEY GET
REIMBURSED FOR THE WORK. SO I
HOPE THAT IS HELPFUL.
>> YEAH, THAT IS HELPFUL. HOW
MANY PROJECTS REPRESENTS ABOUT
THE SUMS I WAS TALKING ABOUT?
JUST TO HELP ME UNDERSTAND?
THOSE FUND BALANCES.
>> I THINK YOU SAID IT WAS
ROUGHLY $400 MILLION?
>> THAT IS THE FIGURE FROM
CENTRAL STAFF, LET'S SEE WHAT
I SAID BUT THEN THERE'S ALSO
COMING YOU KNOW, 442 IS THE
FIGURE FROM CENTRAL STAFF, THE
AUDIT, THE FINANCIAL REPORTS.
>> I WOULD LIKE TO KNOW WHAT
THE FUND SOURCES ARE AND WHAT
THAT IS, WE WILL HAVE TO GET
BACK TO YOU WITH THOSE NUMBERS
BECAUSE IT DEPENDS ON THE TYPE
OF PROJECT.
>> I AM PULLING THAT UP AND I
CAN GET THAT BACK TO YOU.
>> COUNCILMEMBER RIVERA, TO
TOUCH ON YOUR POINT, TOTALLY
AGREE ON A DASHBOARD, THAT
WOULD BE GREAT AND LET'S MAKE
SURE DASHES INCLUDED IN THAT
BECAUSE THEY ARE LOOKING FOR
PERMITS.
>> CITYWIDE, DIRECTOR.
CITYWIDE. WE DO NEED IT. IT'S
HARD TO DO THIS WORK WITHOUT
SUCH A TOOL IN 2024.
>> AND THE 442 MILLION OF THAT,
180 MILLION WAS UNDER CONTRACT,
157 MILLION WAS AWARDED THAT
DID NOT GET CLOSED AT 105
MILLION HAD NOT YET BEEN
AWARDED. HANNAH, DO YOU HAVE
THE EMAIL?
>> ME?
>> I'M LOOKING OVER AT HANNAH
BECAUSE I CAN SEE SHE HAS
SOMETHING UP. IF WE CAN GET
THOSE NUMBERS FORWARDED TO US,
THAT WOULD BE EXTREMELY
HELPFUL. THANK YOU.
>> BUT YOU DON'T, OKAY. THEY
DON'T SEEM FAMILIAR TO YOU?
>> BECAUSE WE DON'T THINK
ABOUT IT IN THAT WAY, YEAH.
>> I'M SORRY, I MISSED THE
PERIOD OF TIME IN WHICH WE ARE
TALKING, IT'S A VERY DYNAMIC
NUMBER.
>> THAT WAS AS OF MARCH 1st,
2024.
>> IT IS VERY DYNAMIC, WE ARE
DOING QUARTERLY REPORTS SO IT
WOULD HELP US TO SEE THE
REFERENCE DOCUMENT THAT YOU ARE
LOOKING WITH AND GET WITH OUR
FINANCE TEAM. THANK YOU.
>> OKAY.
>> OKAY, COUNCILMEMBER?
>> THANK YOU, COUNCILMEMBER.
JUST WANT TO QUICKLY +1
COUNCILMEMBER RIVERA'S ASK FOR
A DASHBOARD. IT SOUNDS LIKE
THERE IS ALWAYS A LIMIT THERE
AND THAT WOULD BE HELPFUL FROM
A COUNCILMEMBERS PERSPECTIVE
AND ALSO MOST IMPORTANTLY FROM
THE GENERAL PUBLIC'S
PERSPECTIVE, THESE ARE HIGHLY
COMPLEX, NUANCED CONSTRUCTS AND
VERY STRATEGIC PROGRAMS AND
TAXPAYER DOLLAR INVESTMENTS AND
TO HAVE A SINGLE PANE OF GLASS
SO TO SPEAK, AND I APPRECIATE
THAT THERE IS MULTIPLE CITY
DEPARTMENTS AND AGENCIES
INVOLVED AND OVERLAPPING BODIES
OF WORK IN THIS CASE, BUT TO
HAVE A DASHBOARD, THAT'S
ACCESSIBLE, OPEN, AND AVAILABLE
FOR ALL IN THIS CASE WOULD BE
VERY HELPFUL, SO THANK YOU.
>> OKAY, THANK YOU. ANY OTHER
QUESTIONS? I JUST HAVE A COUPLE
OF QUESTIONS AND COMMENTS. I
WOULD NOTE THAT IN LOOKING AT
THE MFTE, ONE OF THE THINGS WE
HEAR FROM PROVIDERS IS THAT THE
PAPER REQUIREMENTS FROM OH ARE
OVERWHELMINGLY BURDENSOME AND
THAT IS AN OBSTACLE TO
PARTICIPATION SO I WOULD JUST
ASK THAT BE, I THINK THAT'S AN
AREA WHERE WE COULD REALLY
EASILY MAKE CHANGES TO MAKE IT
EASIER AND MORE -- IT'S A WAY
TO KEEP THE PEOPLE WHO ARE
ALREADY IN THE PROGRAM IN THE
PROGRAM, SO, THAT WOULD BE ONE
OF MY SUGGESTIONS. THE OTHER
THING THAT I WOULD ASK IS, I
WOULD LIKE MORE INFORMATION
ABOUT HOW, TO THE POINT THAT
COUNCILMEMBER MORALES WAS
MAKING ABOUT HOW DO WE MAKE
SURE THAT THE UNITS THAT ARE
RECEIVING CITY FUNDING ARE IN
FACT HABITABLE AND MAINTAINED,
APART -- ASIDE AND APART FROM
THE ISSUES THAT ARE HAPPENING
DUE TO TENANT DESTRUCTION,
BEHAVIORAL HEALTH OR SUBSTANCE
USE ISSUES. BUT, YOU KNOW, WE
OFTEN HEAR , AND I KNOW SEATTLE
DOESN'T HAVE CONTROL OVER THIS
BUT COMPLAINS ABOUT SEATTLE
HOUSING AUTHORITY PROPERTIES
NOT BEING WELL-MAINTAINED SO, I
THINK WHEREVER THERE IS PUBLIC
MONEY WE NEED TO HAVE A VERY
ROBUST INSPECTION SYSTEM. ONE
OF THE THINGS THAT I WOULD LIKE
-- ONE OF THE CHANGES I WOULD
LIKE TO SEE IN THE PRIVATE
MARKET IS THAT WE INSPECT,
REQUIRE PRIVATE PROPERTIES TO
BE INSPECTED ROUTINELY ON A
MORE REGULAR BASIS RATHER THAN
ON A RANDOM BASIS BECAUSE I DO
THINK HABITABILITY IS AN ISSUE
THAT WE NEED TO COME AS A CITY,
BE CONCERNED ABOUT SO I WOULD
BE INTERESTED IN HEARING MORE
ABOUT HOW WE CAN HAVE A ROBUST
INSPECTION PROGRAM FOR CITY
FUNDED PROPERTIES. AND THEN I
HAD A QUESTION ABOUT THE
STABILIZATION FUNDS THAT WE ARE
TALKING ABOUT. MY UNDERSTANDING
IS THAT THERE WAS LESS AWARDS
ISSUED FOR NEW DEVELOPMENT
AFFORDABLE PROJECTS IN 2024
BECAUSE OF THE FACT THAT SO
MUCH BACKFILL WAS NEEDED
BASICALLY THE STABILIZATION
FUND RELATING TO OPERATION
MANAGEMENT AND SERVICES AND
THAT A SIGNIFICANT PORTION OF
THAT MONEY WAS BECAUSE OF RENT
-- AND I'M JUST WANTING TO GET
CONFIRMATION THAT WAS A
CONTRIBUTING FACTOR TO NOT
BEING ABLE TO HAVE AS MUCH
MONEY TO AWARD FOR NEW HOUSING
PROJECTS.
>> THERE ARE A COUPLE OF THINGS
THAT ARE FACTORED IN THERE.
KELLI, ARE YOU OFF MIKE? YOU
WANT ME TO GO? SURE.
>> YEAH, SO, THESE ARE
INTERRELATED ISSUES TO BE SURE.
HOWEVER, THERE IS A DISTINCTION
BETWEEN OPERATING AND CAPITAL
CONCERNS WHERE THERE ARE SOME
CONCERNS WITH EXISTING PROJECTS
THAT ARE UNDER DEVELOPMENT AND
THEY ARE FACING INCREASED COST
INFLATION AND INTEREST RATE
CONCERNS. THOSE PROJECTS THAT
ARE CURRENTLY UNDER
CONSTRUCTION ARE HIGH PRIORITY
FOR THE OFFICE OF HOUSING TO
ENSURE THAT THEY COMPLETE. THAT
IS COST ESCALATION OR BACKFILL
AS YOU REFERENCED AND THOSE ARE
REQUIRING SIGNIFICANT RESOURCES
FOR US TO MAKE SURE THEY ARE
SEEN THROUGH TO THE FINISH LINE
TO GET THOSE BUILDINGS DONE,
THEN WE HAVE, AND SOME OF
THOSE, IN ORDER TO CLOSE AND
ACHIEVE EMINENT FINANCING, IT
REQUIRES STABILIZATION AND
MAINTENANCE OF TENANT'S
ONGOING AND THAT IS ALSO TIED
UP IN ALL OF THESE ISSUES
RELATED TO RENT AND NONPAYMENT
OF RENT AND BEHAVIORAL HEALTH
CONCERNS AND ALL THE OTHER
CONCERNS YOU ARE HEARING FROM
OPERATORS OUT THERE TODAY. THE
ORGANIZATIONAL STABILIZATION
FUND IS MEANT TO COME INTO
PROVIDE SOME SUPPORT FOR THAT.
OF COURSE WE WERE NOT ABLE TO
FULLY FUND ANY REQUEST AND WE
ALSO CAP REQUESTS SO IF WE
ALLOWED FOLKS TO COME AND AS
MUCH AS THEY NEEDED IT WOULD'VE
BEEN LIKELY AN EXTRAORDINARY
ASK OF RESOURCES. WE HAVE 14
MILLION GOING OUT INTO
COMMUNITY WHICH WILL HOPEFULLY
HELP TO STABILIZE TO SOME
EXTENT AND THERE IS MORE TO BE
DONE.
>> THANK YOU. I THINK SOME OF
THAT MONEY IS COMING FROM THE
HOUSING LEVIES IS IT NOT?
>> ALL PAYROLL EXPENSE TAX AND
ON THE CAPITAL SIDE, SOME
MANDATORY HOUSING
AFFORDABILITY.
>> OKAY, GOOD, THANK YOU FOR
THAT CLARIFICATION. AND THEN, I
GUESS ANOTHER QUESTION THAT I
HAVE IS, WELL, TWO QUESTIONS TO
THE EMERGENCY RENTAL
ASSISTANCE, I NOTE THAT'S BEEN
SINCE 2021, WAS THAT CREATED IN
RESPONSE TO -- IT SEEMS THAT
PROGRAM WAS CREATED IN RESPONSE
TO COVID AND ALSO TO THE
EVICTION MORATORIUM.
>> IF WE ARE TALKING ABOUT THE
PART THAT IS DISCUSSED IN THE
ANNUAL INVESTMENTS, RIGHT? WE
HAVE EVICTION PREVENTION, THAT
IS HOMELESSNESS PREVENTION
UNDER THE LEVY BUT THEN WE ALSO
HAVE THE EVICTION PREVENTION
PROGRAM AND WHEN WE ARE TALKING
ABOUT THE EVICTION PREVENTION
PROGRAM IT WAS CREATED IN 2021
AS A RESPONSE TO COVID. AND TO,
YEAH, IT WAS BASICALLY COVID.
>> THAT PROGRAM MANDATED THE
PAYMENTS GO TO THE LANDLORDS AS
A WAY OF TRYING TO MITIGATE THE
EVICTION, AS I UNDERSTAND.
>> YES IT WAS IN ORDER TO
MINIMIZE THE AMOUNT OF, WE
UNDERSTOOD THE PEOPLE REALLY
WERE UNABLE TO PAY RENT SO THAT
WAS TO TRY TO PREVENT THEM FROM
BUILDING UP A HUGE AMOUNT OF
RENT THAT IS OWED BUT ALSO THEN
TO PREVENT EVICTION BECAUSE AT
THAT TIME, 2021, YOU COULDN'T
EVICT PEOPLE.
>> SO, MY UNDERSTANDING THOUGH
IS, NOW THAT YOU DO CONTRACT
WITH COMMUNITY-BASED
ORGANIZATIONS SO THAT THEY HAVE
FUNDS WHERE IF THE CLIENT COMES
IN AND SAYS, I NEED $600, I'M
NOT GOING TO BE ABLE TO MAKE MY
RENT, I NEED 600 -- $600 GRANT,
THEY HAVE THE MONEY TO DO THAT.
>> WE ARE WRAPPING UP OUR
PROGRAM, YES.
>> SO WE DO HAVE THE ABILITY TO
PROVIDE FUNDS DIRECTLY TO THE
COMMUNITY-BASED ORGANIZATIONS
THAT CAN THEN DIRECTLY PROVIDE
THE FUNDS TO THE RENTERS. NOT
HAVING TO GO --
>> IT'S STILL PAID TO A
LANDLORD. ALL CHECKS ARE MADE
TO LANDLORDS BUT WE HAVE TO
CERTIFY INCOMING ELIGIBILITY
WITH TENANTS DIRECTLY.
>> THERE WAS A PRE-EXISTING
PROGRAM, WE STEPPED IN IN 2021
BUT THERE IS , ALWAYS BEEN SOME
SYSTEM OFTENTIMES TIED TO THE
UNITED WAY OF PEOPLE WHO WHEN
THEY RENT THEY GO TO UNITED WAY
AND ASK FOR RENTAL ASSISTANCE.
>> OKAY, SO IT'S NOT AN
UNUSUAL MODEL, OBVIOUSLY IT'S
THE LANDLORD WHO NEEDS TO HAVE
THE CHECK MADE OUT TO THEM, BUT
IT'S, YOU ARE HELPING THE
TENANT STAY HOUSED. AND THEN,
MY LAST QUESTION AND THEN I
WILL WRAP THIS UP IS, I'M
INTERESTED IN THE 2023 HOUSING
INVESTMENTS SLIDE BY URBAN
CENTER VILLAGE AND I'M EXCITED
TO SEE THAT THERE IS A
SIGNIFICANT NUMBER HERE OF
AFFORDABLE MULTIUNIT HOME
OWNERSHIP PROJECTS WHICH IS
SOMETHING I WOULD LOVE TO SEE
MORE OF.
>> SLIDE NUMBER SEVEN, RIGHT?
>> YEAH, AND I ALSO NOTE THAT
IN THE HOUSING INVESTMENTS, BY
FUND SOURCE, THAT ALMOST 50% IS
COMING FROM PAYROLL EXPENSE
TAX. SO, THE REASON I NOTE THAT
IS, WHEN WE DID THE ANF, THERE
WAS A -- THE BULK OF THAT MONEY
FOR DISTRIBUTING THE HOUSING
LEVY FUNDS WAS TO GO TO RENTAL
UNITS, SO THERE WAS A SMALLER
FOR HOMEOWNERSHIP SO WE ARE
LIMITED IN WHERE WE CAN DIRECT
MONEY AND HOMEOWNERSHIP THROUGH
THE LEVY BUT IT LOOKS LIKE WE
ARE NOT NECESSARILY LIMITED
WITH THE PAYROLL EXPENSE TAX
AND I'M JUST CURIOUS ABOUT HOW
CAN WE REALLY SHIFT TO
PROVIDING MORE HOME OWNERSHIP
OPPORTUNITIES RATHER THAN JUST
CONTINUING TO BUILD OUT RENTAL
APARTMENTS WHICH DON'T CREATE
-- WHILE THEY CREATE HOUSING,
THEY DON'T CREATE THE SORT OF
LONG-TERM STABILITY THAT I
THINK IS IMPORTANT FOR US TO
HAVE IN OUR COMMUNITY, NOR DO
THEY CREATE PROPERTY TAX PAYERS
WHICH ALSO EXPANDS OUR TAX
BASE.
>> WITH OUR HOMEOWNERSHIP
PROGRAM, THE PAYROLL EXPENSE
TAX ALSO HAS A PERCENTAGE
DEDICATED TO HOMEOWNERSHIP SO
WE TRIED TO GROW OUR
HOMEOWNERSHIP PROGRAMS BY
ENSURING THAT WE HAVE RESOURCES
IN OUR DIFFERENT FUNDING
SOURCES TO BE ABLE TO ADDRESS
THE NEEDS THAT YOU ARE SPEAKING
ABOUT AND THEN, THE CAPACITY
WITHIN THE NONPROFITS THAT
DEVELOP HOMEOWNERSHIP
OPPORTUNITIES IS REALLY
LIMITED, SO THE OTHER THINGS
THAT WE'VE BEEN DOING IS
TRYING TO INCREASE THE CAPACITY
AND WE HAVE ALSO BEEN
SUCCESSFUL TO BE ABLE TO WORK
WITH DIFFERENT BIPOC
ORGANIZATIONS, WE'VE BEEN
PARTNERING WITH OTHER EXISTING
HOMEOWNERSHIP DEVELOPERS TO BE
ABLE TO TAKE ON MORE PROJECTS
OF THEIR OWN, SO THERE WAS A
WONDERFUL PARTNERSHIP BETWEEN
HABITAT FOR HUMANITY AND THE
AFRICAN COMMUNITY AND HOUSING
COMMUNITY AND HOUSING
DEVELOPMENT. HOUSING AND
COMMUNITY. ACHD HAS ALSO BEEN
ENTERING INTO AN ORGANIZATION
WHERE THAT ORGANIZATION, ACHD,
WILL BE ABLE TO TAKE ON MORE
PROJECTS OF THEIR OWN. WE'VE
BEEN WORKING WITH THE --
PROGRAM AS WELL TO BUILD
CAPACITY OF MANY CHURCHES AND
OTHERS WHO ARE INTERESTED IN
DOING THE SAME WORK, SO IT
BECOMES VERY COMPLEX AND WE
WANT TO MAKE SURE THESE
ORGANIZATIONS HAVE THE RIGHT
KIND OF INFRASTRUCTURE TO WE'VE
BEEN FORTUNATE TO PROVIDE ALSO
EXPENSE TEXT TO SUPPORT THE
WORK TO DO SOME OF THAT. THE
BUILDING OF THE CAPACITY AND
RESOURCES FOR THOSE TO BE ABLE
TO THEN TAKE ON PROJECTS AND
EXPAND THE NUMBER OF PEOPLE WHO
CAN DEVELOP OWNERSHIP
OPPORTUNITIES WITH OUR
RESOURCES.
>> ANY QUESTIONS? NO? ALL
RIGHT. I'M NOT SEEING ANY
ADDITIONAL QUESTIONS SO I'M
GOING TO SAY THANK YOU VERY
MUCH FOR YOUR PRESENTATION
TODAY. AND I KNOW WE WILL HAVE
SOME FOLLOW-UP FROM YOU , IF
YOU COULD SHARE THAT WITH
EVERYONE WHO IS HERE TODAY,
THAT WOULD BE GREAT, GETTING
THE SAME INFORMATION. SO, THANK
YOU FOR YOUR PRESENTATION. IF
THERE IS NOTHING FURTHER, THIS
CONCLUDES THE JULY 24th MEETING
OF THE HOUSING AND HUMAN
SERVICES COMMITTEE. THE TIME IS
10:37 AND WE ARE ADJOURNED.
THANK YOU.