[MUSIC] [MUSIC]
-- OKAY. FANTASTIC. GOOD
AFTERNOON EVERYONE. THE AUGUST
12th, 2026, MEETING OF THE
HOUSING AND CIVIL RIGHTS
COMMITTEE WILL COME TO ORDER. IT
IS 2:05 P.M. I'M DIONNE FOSTER,
CHAIR OF THE HOUSING AND CIVIL
RIGHTS COMMITTEE. WILL THE CLERK
PLEASE CALL THE ROLL?
COUNCILMEMBER RINCK. PRESENT.
-- VICE CHAIR. LIN. PRESENT
CHAIR. FOSTER. PRESENT CHAIR.
THERE ARE THREE MEMBERS PRESENT.
-- THANK YOU. AND LET THE RECORD
REFLECT. COUNCIL PRESIDENT
HOLLINGSWORTH AND COUNCILMEMBER
JUAREZ ARE EXCUSED. IF THERE IS
NO OBJECTION, THE MEETING AGENDA
WILL BE ADOPTED. HEARING NO
OBJECTION, THE AGENDA IS
ADOPTED. WE WILL NOW OPEN THE
HYBRID PUBLIC COMMENT PERIOD.
PUBLIC COMMENTS SHOULD RELATE TO
ITEMS ON TODAY'S AGENDA OR
WITHIN THE PURVIEW OF THIS
COMMITTEE CLERK. HOW MANY
SPEAKERS ARE SIGNED UP TODAY?
-- THERE ARE CURRENTLY SEVEN
IN-PERSON SPEAKERS AND TWO
ONLINE SPEAKERS.
-- OKAY, GREAT. EACH SPEAKER
WILL HAVE TWO MINUTES, AND WE
WILL START WITH THE IN-PERSON
SPEAKERS. FIRST. CLERK, CAN YOU
PLEASE READ THE PUBLIC COMMENT
INSTRUCTIONS?
-- PUBLIC COMMENT PERIOD IS UP
TO 60 MINUTES. SPEAKERS WILL BE
CALLED IN THE ORDER IN WHICH
THEY ARE REGISTERED. WE WILL
BEGIN WITH IN-PERSON SPEAKERS
AND THEN MOVE TO REMOTE.
SPEAKERS WILL HEAR A CHIME WHEN
10 SECONDS OF THEIR TIME IS
LEFT. SPEAKERS WILL BE MUTE IF
THEY DO NOT END THEIR COMMENTS
WITHIN THE ALLOTTED TIME TO
ALLOW US TO CALL ON THE NEXT
SPEAKER. THE PUBLIC COMMENT
PERIOD IS NOW OPEN. WE WILL
BEGIN WITH THE FIRST SPEAKER ON
THE LIST. FIRST SPEAKER IS
HANNAH ZIFF, FOLLOWED BY RYAN
DONAHUE, AND THEN NATHAN
ANTONIO.
-- HI, I'M HANNAH FROM PIONEER
SQUARE DOWNTOWN HERE. I'VE BEEN
ASKING CITY COUNCIL TO ENSURE
THE DEVELOPMENT OF THE EMPTY
LOTS AND OFFICE BUILDINGS AROUND
MY NEIGHBORHOOD. SO I LOVE THE
WORK THAT THE OFFICE OF HOUSING
IS DOING, AND I'M LOOKING
FORWARD TO SEEING MORE OF IT. I
LOOKED OVER THE PRESENTATION AND
SAW THAT THERE WERE SIGNIFICANT
BUDGET CUTS FROM THE FEDERAL
GOVERNMENT, AND I ALSO DIDN'T
SEE ANY UPCOMING HOUSING
DEVELOPMENTS AROUND WHERE I
LIVE. PLEASE CONSIDER FORMS OF
REVENUE FOR THE CITY AND
STAKEHOLDERS IN ORDER TO HELP
FUND OUR DEVELOPMENT GOALS FOR
HOUSING, ALONG WITH OUR
INVESTMENT GOALS IN THE GLOBAL
MARKET. I WAS WONDERING IF YOU
EVER GET MATCHING DOLLARS OR ANY
OTHER ASSISTANCE FROM THE
INDUSTRIAL OR TECH SECTORS, WHO
IS IN CHARGE OF REQUESTING THAT?
WE ARE THE DEMAND AND WE ARE
ALSO THE SUPPLY OF WORKERS, AND
WE'RE ALSO INVESTORS. SO I
THINK THEY'D BE VERY KEEN ABOUT
THAT. WHAT WOULD BE THE COST IF
THE CITY PURCHASED THE EMPTY
LOTS ON JACKSON IN LITTLE
SAIGON, OR THE EMPTY OFFICE
BUILDING, THE JACK TO BE TURNED
INTO HOUSING? COULD THIS BE DONE
WITH LOW INTEREST LOANS AND THEN
BE PAID OFF AS THE OFFICE OF
HOUSING RECOUPS THE COSTS FROM
THE HOME SALES WOULD. THE
MUNICIPALITY OF SEATTLE CONSIDER
SELLING GOVERNMENT BONDS FOR THE
OFFICE OF HOUSING? I'M REALLY
LOOKING FORWARD TO SEEING AN
ACCELERATION. I THINK THAT THIS
CITY OF SEATTLE SHOULD BE A
COMPETITOR IN THIS SECTOR, AND
THERE'S A HIGH DEMAND. SO THANK
YOU FOR THE WORK YOU'RE DOING.
-- OUR NEXT SPEAKER WILL BE RYAN
DONAHUE, FOLLOWED BY NATHAN
ANTONIO. AND THEN I BELIEVE
CAROLYN MAHONEY.
-- WONDERFUL. THANK YOU SO MUCH.
IT'S WONDERFUL TO BE HERE. MY
NAME IS RYAN DONAHUE. I'M THE
VICE PRESIDENT OF ADVOCACY AT
HABITAT FOR HUMANITY, SEATTLE
KING, AND KITTITAS COUNTIES. WE
ARE ACTUALLY HAVING A PARTY
RIGHT NOW CELEBRATING OUR 40th
ANNIVERSARY. AND I LEFT THAT
STAFF PARTY TO COME HERE TODAY
TO HOPEFULLY HELP ILLUSTRATE THE
IMPORTANCE OF WHAT I HAVE TO
SAY, WHICH IS WE REALLY, AS
HABITAT, WANT TO SEND OUR STRONG
SUPPORT AND THANK THE MAYOR FOR
AN EXCELLENT SELECTION FOR TO
RUN THE OFFICE OF HOUSING. WE
ARE HONORED TO BE. WE ARE AND
CONTINUE TO BE HONORED TO BE
ABLE TO WORK WITH MISS LARSON ON
ANY NUMBER OF DIFFERENT THINGS,
INCLUDING THE SEATTLE HOUSING
LEVY IN PARTICULAR. WE WERE
DEFINITELY WORKING VERY CLOSELY
ON THAT AND CONTINUE TO SEE THE
OFFICE OF HOUSING AND MISS
LARSON, PARTICULARLY AS
INCREDIBLY IMPORTANT PARTNERS IN
THAT WORK. SHE'S BEEN A TRUSTED
COLLABORATOR AND SOMEBODY WHO
HAS PARTNERED WITH ORGANIZATIONS
ACROSS THE AREA IN TRYING TO BE
ABLE TO MAKE SEATTLE A PLACE
WHERE EVERYONE CAN HAS A SAFE,
DECENT, AND AFFORDABLE PLACE TO
CALL HOME. AND SHE WILL CONTINUE
TO REPRESENT THE CITY WELL IN
THAT ROLE. SHE'S INCREDIBLY WELL
SUITED TO LEAD AND INCREDIBLY
WELL SUITED TO LEAD THE
DEPARTMENT, PARTICULARLY IN THIS
MOMENT, AND IS HONESTLY THE BEST
PERSON I COULD HAVE THOUGHT OF
AS A POSSIBILITY TO BE ABLE TO
LEAD THIS DEPARTMENT. I'M REALLY
HAPPY WITH THIS CHOICE FOR US AT
HABITAT ARE REALLY HAPPY WITH
THIS CHOICE, AND WE LOOK FORWARD
TO CONTINUING TO BE ABLE TO HAVE
THE OPPORTUNITY TO WORK WITH HER
AND URGE THAT THE COMMITTEE
SWIFTLY WORK TO RATIFY AND
CONFIRM HER APPOINTMENT. THANK
YOU VERY MUCH. THANK
-- NEXT, WE HAVE NATHAN ANTONIO,
FOLLOWED BY CAROLYN MAHONEY.
-- HELLO, CHAIR FOSTER. MEMBERS
OF THE HOUSING, ARTS AND CIVIL
RIGHTS COMMITTEE. MY NAME IS
NATHAN ANTONIO. I'M A STAFF
ANALYST AT THE OFFICE OF
HOUSING, AND I'M HERE TO READ A
STATEMENT INTO THE RECORD THAT
HAS BEEN SIGNED BY SOME OTHER
STAFF AT THE OFFICE ON BEHALF OF
THE PROTECT 17 REPRESENTED STAFF
OF THE OFFICE OF HOUSING. WE
WOULD LIKE TO THANK YOU FOR THE
OPPORTUNITY TO COMMENT IN
SUPPORT OF THE CONFIRMATION OF
KELLY LARSON AS DIRECTOR OF
HOUSING. WE WOULD ALSO LIKE TO
THANK MAYOR WILSON AND HER TEAM
FOR ACCEPTING A REQUEST TO
PARTICIPATE IN THE HIRING
PROCESS. AS STAFF WHO HAVE
OURSELVES PARTICIPATED DIRECTLY
IN THAT PROCESS, WE'RE VERY
GRATEFUL TO HAVE BEEN INVOLVED,
OFFERING INPUT AT THE OUTSET,
HAVING A REPRESENTATIVE IN THE
FIRST INTERVIEW PANEL AND
GETTING A CHANCE TO MEET WITH
THE FINALISTS AS A GROUP, GIVEN
OUR DIRECT INVOLVEMENT IN THE
DAY TO DAY OPERATIONS OF THE
OFFICE, OUR LIVED EXPERIENCE
WITH ITS CULTURE AND FAMILIARITY
WITH THE CHALLENGES OF THE WORK,
WE BELIEVE THAT OUR INPUT AND
ADVICE HAVE HELPED SHAPE THE
BEST POSSIBLE OUTCOME, AND WE
WHOLEHEARTEDLY RECOMMEND KELLY
TO BE THE DIRECTOR OF HOUSING,
PARTICULARLY IN THIS CHALLENGING
TIME IN THE AFFORDABLE HOUSING
SECTOR. KELLY BRINGS THE
KNOWLEDGE AND EXPERIENCE NEEDED
TO OVERCOME THOSE CHALLENGES,
WHILE ALSO DRIVING TO GREATER
OUTCOMES ACROSS PROGRAMS,
SERVICES AND OTHER INITIATIVES.
FURTHER, BECAUSE WE KNOW KELLY
AND KELLY KNOWS US, WE CAN SAY
WITH CERTAINTY THAT SHE CARES
ABOUT STAFF ON A VERY HUMAN
LEVEL AND WANTS TO PROMOTE AN
OFFICE CULTURE THAT IS
INCLUSIVE, CONSTRUCTIVE AND
INSPIRING. WE HAVE EVERY
CONFIDENCE IN HER ABILITY TO
LEAD AND GUIDE US AND OUR WORK
TO SUCCESS. WE HOPE YOU WILL
AGREE WITH OUR ASSESSMENT AND
CONFIRM HER APPOINTMENT, AND I
WILL JUST READ THE NAMES OF THE
UNDERSIGNED INDIVIDUALS, OTHER
STAFF. AMANDA, LICORICE, ANDREA
MENDOZA, SANCHEZ, CLARISSA
OCHOA, JAMIE WOOD, JASON
PHILLIPS JEREMY CARROLL, JESSICA
GOMES, KIM LEE, MATEO. TAVAREZ,
NATHAN ANTONIO, AND SANDRA LAKE.
THANK YOU VERY MUCH.
-- AND NEXT WE HAVE CAROLYN
MAHONEY, FOLLOWED BY
COUNCILMEMBER JAMES LOVELL AND
THEN DANIEL MALONE.
-- I'M CAROLYN MALONE, STILL,
WITH THE ONGOING ISSUES AT
CHANCERY PLACE, APARTMENT
SEATTLE HAS AN IMAGE PROBLEM, A
SERIOUS IMAGE PROBLEM WITH A
LACK OF TRANSPARENCY AND COMIC
CON EFFECTIVE COMMUNICATION,
ESPECIALLY IN MY HOUSING, WHERE
A QUESTIONABLE CONSTRUCTION IS
GOING ON AND I'M NOT ALLOWED TO
ASK QUESTIONS EVEN WHEN I GO TO
THE DEPARTMENT OF CONSTRUCTION
AND INSPECTION, I'M RETALIATED
AGAINST. THE BUILDING IS BEING
GUTTED AT 910 MARION STREET, 13
STORIES BEING GUTTED WITH PEOPLE
LIVING IN IT AND THE MANAGER,
ROBERT HADER AND A POLICE. THIS
ROGUE COP. THE MANAGER REFUSES
TO GIVE HIS NAME TO ME SO I CAN
FILE A COMPLAINT AGAINST HIM FOR
ONGOING HARASSMENT IN 2024 AND
2025, AN INFESTATION OF BEDBUGS
WERE IN MY APARTMENT FOR 13
MONTHS. THEN THIS THUG ROGUE
COP, A COP AFFILIATE, HAD ME
HAULED INTO COURT IN FEBRUARY OF
THIS YEAR TRYING TO EVICT ME.
AND THE CASE WAS DISMISSED
BECAUSE HE DIDN'T PRODUCE.
WHOEVER'S MAKING MY STOMACH
QUIVER QUIT. HE DIDN'T PRODUCE
ANY EVIDENCE, ANY DISCOVERY
EVIDENCE. THIS IS MY ROLE IN
FILE CABINET WITH EVIDENCE IN
IT. RECENTLY, I'VE BEEN SLEEPING
IN A IN A UNIT WITH TOXIN. I
BELIEVE IT'S SOME KIND OF CEDAR
TREE RESIN THAT CAUSES ME TO
WAKE UP SICK. YESTERDAY WAS A
HARD DAY FOR ME. I ASKED CITY
COUNCIL TO COME IN AND INSPECT
WITH MY PRESENCE. THE FACT THAT
NONE WILL COME IN JUST TELLS ME
THEY KNOW WHAT I SAY IS TRUE.
THANK YOU. KEEP RETURNING UNTIL
SOMETHING IS DONE ABOUT THE
HARASSMENT.
-- THANK YOU
-- THANK YOU. NEXT, WE HAVE
COUNCILMEMBER JAMES, FOLLOWED BY
DANIEL MALONE AND THEN CHRISTINA
GISCOMBE
-- GOOD AFTERNOON. AS EVERYONE
KNOWS, MY NAME IS JAMES LOVELL.
AYE. YES, I'M A COUNCILMEMBER
IN THE CITY OF SEATAC, BUT I'M
HERE TODAY IN MY DAY JOB
REPRESENTING CHIEF SEATTLE CLUB,
WHERE HOUSING AND HOMELESSNESS,
HOMELESSNESS PROVIDER HERE IN
SEATTLE. AND I'M HERE TO OFFER
OUR SUPPORT FOR THE MAYOR'S
SELECTION OF THE VERY, VERY ABLE
KELLY LARSON TO LEAD THE
DEPARTMENT OF HOUSING, THE
OFFICE OF HOUSING. I'M SORRY.
AND I YOU KNOW, THE WORD ABLE
CAN SOUND ALMOST LIKE A
EUPHEMISM FOR SOMEONE WHO'S JUST
BARELY ENOUGH. KELLY IS MORE
THAN ENOUGH IN EVERY WAY. WE'VE
REALLY ENJOYED WORKING WITH HER.
SHE'S A PERSON OF EXCEPTIONAL
ABILITY, AND I WROTE DOWN A FEW
OF THOSE ABILITIES. SHE IS
KNOWLEDGEABLE. I SERVE ON THE
HOUSING LEVY OVERSIGHT COMMITTEE
IN THE CITY OF SEATTLE, AND I'VE
GOTTEN TO WORK VERY CLOSELY WITH
KELLY IN THAT TIME AS WELL. IN
OTHER ROLES AT MY JOB, SHE KNOWS
EACH OF THESE POLICIES INSIDE
AND OUT. SHE KNOWS WHAT IT MEANS
FOR OPERATORS OF HOUSING TO BE
IN IN THE ROOM. SHE IS
APPROACHABLE. SHE IS ONE OF THE
FRIENDLIEST PEOPLE WE'VE HAD IN
ANY ROLE OF CITY LEADERSHIP
WITH, WITH AN ADMINISTRATION
THAT WE JUST HEARD, WE FACED
SOME HEAVY GRAVITY IN THE
HOUSING WORLD. KELLY IS
APPROACHABLE BY RESIDENTS.
SHE'S APPROACHABLE BY PROVIDERS,
BY POLITICIANS. EVERYWHERE WE
GO, KELLY IS BEING APPROACHED BY
PEOPLE. SHE IS EQUITABLE. SHE
CARES ABOUT HOW THE POLICIES
ACTUALLY IMPACT THOSE WHO NEED
HOUSING THE MOST. SHE IS CAPABLE
OF BALANCING LEGISLATIVE AND
OPERATIONAL PRIORITIES. AND
THOSE ARE REALLY THOSE ARE BIG
CHALLENGES. WE'VE GOT A VOTER
APPROVED LEVY. WE'VE GOT
FUNDING THAT'S BEEN APPROVED BY
CITY COUNCIL, FUNDING THAT'S
APPROVED BY ALL SORTS OF
DIFFERENT LAYERS. AND KELLY IS
ALWAYS CAPABLE OF MANAGING IT.
SHE IS ACCOUNTABLE. SHE RESPONDS
WHEN WE ASK HER FOR FEEDBACK,
WHEN SHE ASKS FOR FEEDBACK, SHE
REACHES OUT EARLY TO LET US
KNOW, HEY, SOMETHING IS ABOUT TO
COME DOWN THE LINE. HERE'S HOW
WE CAN PREPARE FOR IT TO MAKE
SURE THAT PEOPLE STAY HOUSED.
SHE IS ADAPTABLE AND SHE IS
CREDIBLE. SHE IS ONE OF THE MOST
ABLE PEOPLE I'VE GOTTEN TO WORK
WITH IN MY CAREER, AND I
STRONGLY SUPPORT KELLY'S
NOMINATION FOR DIRECTOR FOR THE
OFFICE, SOON TO BE DEPARTMENT.
NO OFFICE OF HOUSING. THANK YOU
VERY MUCH.
-- THANK YOU
-- OUR NEXT SPEAKER IS DANIEL
MALONE, FOLLOWED BY CHRISTINA.
AND THEN WE WILL JUMP TO REMOTE
SPEAKER, STARTING WITH DANIEL
GRAY.
-- THANK YOU, CHAIR FOSTER AND
MEMBERS OF THE COMMITTEE. I ALSO
AM HERE IN SUPPORT OF YOUR
CONFIRMATION OF THE APPOINTMENT
OF KELLY LARSON TO LEAD THE
SEATTLE OFFICE OF HOUSING. THE
PREVIOUS SPEAKER TOOK ALL THE
DESCRIPTORS THAT EXIST IN MY
DICTIONARY. SO THIS MAY BE A
LITTLE REPETITIVE. YOU KNOW, THE
WORLD OF AFFORDABLE HOUSING
INVOLVES A BUNCH OF
IDIOSYNCRATIC PROCESSES AND
PARTNERSHIPS AND. INDIVIDUALS,
AND KELLY LARSON IS WELL SUITED
TO MANAGE ALL THAT COMES WITH
THAT. THE WORK INVOLVED IN
DEVELOPING AFFORDABLE HOUSING,
IN OPERATING AFFORDABLE HOUSING,
AND SETTING POLICY RELATED TO
AFFORDABLE HOUSING IS ALL
COMPLICATED, WITH LOTS OF
DIFFERENT INTERESTS THAT COME TO
THE TABLE. INTERESTED IN TALKING
ABOUT IT AND INFLUENCING THINGS
IN A CERTAIN DIRECTION. KELLY
HAS THE RIGHT COMBINATION OF
EXPERIENCE, KNOWLEDGE,
AFFABILITY, PARTNERSHIP,
SENSIBILITY TO BE EFFECTIVE IN
THIS ROLE. MORE SO THAN ANYONE
ELSE I COULD IMAGINE. SO I'M SO
GLAD FOR THE APPOINTMENT AND
HOPE THAT YOU WILL CHOOSE TO
CONFIRM. THANK YOU.
-- THANK YOU.
-- OUR NEXT SPEAKER IS CHRISTINA
GISCOMBE. THEN WE'LL JUMP TO
REMOTE SPEAKERS WITH DANIELLE
GRAY.
-- GOOD AFTERNOON,
COUNCILMEMBERS, AND THANK YOU
FOR THE OPPORTUNITY TO SPEAK
TODAY. I AM ALSO HERE IN SUPPORT
OF CONFIRMING KELLY LARSON FOR
THE OFFICE OF HOUSING DIRECTOR.
MY NAME IS CHRISTINA GISCOMBE,
AND I'M THE DIRECTOR OF
INTEGRATED HEALTH AT PLYMOUTH
HOUSING. AND I'M HERE WITH A
NUMBER OF MY COLLEAGUES, BOTH
PAST AND PRESENT, TO
WHOLEHEARTEDLY SUPPORT KELLY.
I'VE HAD THE PRIVILEGE OF
KNOWING KELLY PERSONALLY AND
PROFESSIONALLY, AND I WORKED
CLOSELY WITH HER FOR MANY YEARS
AT PLYMOUTH. BECAUSE OF THAT
EXPERIENCE, I CAN SAY WITH
CONFIDENCE, AS CAN EVERYBODY
HERE, THAT SHE IS ONE OF THE
SMARTEST, MOST THOUGHTFUL AND
MOST COMPASSIONATE PEOPLE THAT
WE KNOW. BUT SHE'S ALSO SOMEONE
THAT WE TRUST. ONE OF THE
REASONS THAT I BELIEVE KELLY IS
UNIQUELY SUITED FOR THIS ROLE IS
HER UNDERSTANDING OF PERMANENT
SUPPORTIVE HOUSING AND THE
PEOPLE WHO CALL IT HOME. FOR
THOSE WHO HAVE EXPERIENCED
CHRONIC HOMELESSNESS, BEHAVIORAL
HEALTH CHALLENGES, TRAUMA, AND
COMPLEX MEDICAL NEEDS, HOUSING
IS HEALTH CARE, STABLE HOUSING
CREATES THE FOUNDATION FOR
HEALTH RECOVERY, CONNECTION,
SAFETY AND COMMUNITY. AND KELLY
KNOWS THIS DEEPLY AND BELIEVES
IN THAT. KELLY ALSO KNOWS THAT
MAKING HOUSING SUCCESSFUL
REQUIRES INVESTMENT BEYOND THE
PHYSICAL BUILDINGS, IT REQUIRES
STRONG SERVICES SUPPORTED
WORKFORCE, SUSTAINABLE
PARTNERSHIPS, AND A CITY THAT
UNDERSTANDS THE REALITIES THAT
WE NAVIGATE EVERY DAY AS
PROVIDERS AND AS RESIDENTS.
SEATTLE NEEDS THAT PERSPECTIVE
AND ITS HOUSING LEADERSHIP, AND
WE KNOW THE KIND OF LEADER KELLY
WILL BE BECAUSE WE'VE SEEN IT
FIRSTHAND. SHE LISTENS. SHE ASKS
DIFFICULT QUESTIONS, AND SHE
BRINGS PEOPLE TOGETHER, LEARNS
FROM THOSE CLOSEST TO THE WORK,
AND MAKES THOUGHTFUL DECISIONS.
I'M GENUINELY EXCITED ABOUT
WHAT KELLY CAN ACCOMPLISH
ACCOMPLISH WHEN GIVEN THE
OPPORTUNITY TO BRING HER
INTELLIGENCE, COMPASSION,
CREATIVITY, AND INTEGRITY TO THE
CHALLENGES OUR CITY IS FACING.
THANK YOU
-- THANK YOU. WE'LL MOVE TO
REMOTE SPEAKERS. FIRST, WE HAVE
DANIELLE GRAY, FOLLOWED BY
NATALIE QUICK, PLEASE PRESS STAR
SIX. WHEN YOU HEAR THE PROMPT
THAT YOU HAVE BEEN UNMUTED.
-- I WOULD LIKE TO ASK FOR AN
AUDIT OF THE OFFICE OF HOUSING,
SPECIFICALLY RENT INCREASES
ABOVE LAND USE COVENANTS,
FINANCIAL REPRESENTATIONS MADE
BY HOUSING PROVIDERS, AND THE
DUE DILIGENCE PERFORMED BEFORE
MILLIONS OF DOLLARS IN PUBLIC
AWARDS ARE APPROVED. O STAFF
ADVISES PROJECTS ON RAISING
RENTS ABOVE LOW LAND USE
COVENANTS THAT IS IN THE RECORD
FINANCIAL RECORDS, TAX FILINGS,
LOANS, PUBLIC AWARDS AND RELATED
PARTIES. TRANSACTIONS CONTAIN
SUBSTANTIAL INCONSISTENCIES IN
THE RECORDS I HAVE REVIEWED. I
HAVE FOUND NO FINANCIAL
JUSTIFICATION FOR ALLOWING RENT
TO EXCEED COVENANTS. WHAT DUE
DILIGENCE IS O ACTUALLY
PERFORMING BEFORE AWARDING
HUNDREDS OF MILLIONS OF TAXPAYER
DOLLARS DOLLARS? O H ADMINISTERS
$350 MILLION ANNUALLY SEATTLE
TAXPAYERS ALSO SPEND
APPROXIMATELY $126 MILLION TO
KCRHA. THE SEATTLE HOUSING
AUTHORITY, WHICH IS AN O
PORTFOLIO, AWARDS MORE THAN $430
MILLION A YEAR, INCLUDING OVER
200 MILLION IN FEDERAL MONEY.
THIS IS AN ENORMOUS TAX FUNDED
HOUSING SYSTEM, MUCH OF WHICH
ULTIMATELY FLOWS TO PRIVATE
HOUSING PROVIDERS. RECORDS ALSO
SHOW A DISTURBING PATTERN OF O.
S TREATMENT OF THE LEGALLY
DEFINED LOW INCOME TENANTS. THE
SYSTEM EXISTS TO SERVE,
INCLUDING EFFORTS TO SILENCE
TENANTS WHEN THEY ORGANIZE.
MEANWHILE, OFFICIALS ARE
APPROVING PROJECT CASH OUTS. HIS
WORDS NOT MINE OR WHAT THE
COUNCIL CALLS DEBT RESTRUCTURING
AND O. H. S OWN RECORDS DESCRIBE
THE CONSEQUENCES OF CAUSING A
MAJOR HEADACHE BEFORE APPROVING
ANOTHER CASH OUT RENT INCREASE,
OR MULTI-MILLION DOLLAR AWARD
AUDIT. O H
-- THANK YOU. AND OUR FINAL
SPEAKER WILL BE NATALIE QUICK.
-- GOOD AFTERNOON,
COUNCILMEMBERS. CAN YOU HEAR ME?
-- WE CAN HEAR YOU.
-- GREAT. GOOD AFTERNOON,
COUNCILMEMBERS. MY NAME IS
NATALIE QUICK AND I'M A
CO-FOUNDER OF THE SEATTLE
HOUSING ROUNDTABLE AND HERE
TODAY TO SPEAK TO THE MHA 2025
REPORT. ASPECT OF THE OFFICE OF
HOUSING PRESENTATION TODAY. AS
YOU KNOW, NEW MULTIFAMILY PERMIT
APPLICATIONS ARE DOWN MORE THAN
90% AS OF THE CITY OF SEATTLE'S
Q2 HOUSING DASHBOARD REPORT THIS
YEAR. AND THAT'S DOWN 90% AGAIN,
FROM THE BUILDING BOOM HEIGHT IN
2020. WE AGREE THAT MHA HAS BEEN
AND CONTINUES TO BE AN IMPORTANT
ASPECT OF THE OVERALL FUNDING
FOR O. BUT WITH THAT IN MIND,
REVENUE FROM MHA IS NOW ONLY 6%
OF THAT BUDGET, DOWN FROM A
HEIGHT OF 57% IN 2021. WITHIN
THE 2025 REPORT, MHA BROUGHT IN
$47 MILLION. WE WANTED TO MAKE
PUT A LITTLE CONTEXT TO THAT
NUMBER. SO THERE IS ONE SENIOR
MULTI, ONE SENIOR, ONE
MULTIFAMILY TOWER THAT IS TWO
SENIOR HOUSING BUILDINGS. THAT
WAS A $10 MILLION FEE, SOMEWHAT
OF AN ANOMALY. AND THE REST OF
THAT MONEY IS EITHER FROM
TOWNHOMES, WHICH WAS ABOUT 20
MILLION, AND THEN ABOUT THREE
OTHER PROJECTS. SO WE JUST
WANTED TO MAKE SURE THERE WAS
CONTEXT AROUND THAT KIND OF
ANOMALY IN FUNDING, WHICH
HISTORICALLY, OVER THE PAST
COUPLE YEARS HAS BEEN AROUND 20
TO $22 MILLION. THANK YOU.
-- THANK YOU. AND THERE ARE NO
ADDITIONAL REGISTERED SPEAKERS.
-- FANTASTIC. THANK YOU SO MUCH.
AND AS ALWAYS, THANK YOU TO ALL
OF OUR FOLKS WHO CALL IN DURING
PUBLIC COMMENT. WITH THAT, WE
WILL NOW MOVE ON TO OUR FIRST
ITEM OF BUSINESS. WILL THE CLERK
PLEASE READ ITEM ONE INTO THE
RECORD.
-- AGENDA? ITEM ONE. APPOINTMENT
03569. APPOINTMENT OF KELLY
LARSON AS DIRECTOR OF THE OFFICE
OF HOUSING FOR BRIEFING AND
DISCUSSION.
-- THANK YOU, AND I AM INVITING
UP TO THE TABLE AND WELCOMING TO
THE TABLE ACTING DIRECTOR KELLY
LARSON OF THE OFFICE OF HOUSING
AND NICOLE BALLESTEROS FROM THE
MAYOR'S OFFICE. AND BEFORE YOU
BEGIN JUST TO SET THE STAGE A
LITTLE BIT, WE'RE NOT VOTING ON
ACTING DIRECTOR LARSON'S
APPOINTMENT TODAY, BUT I AM
REALLY PLEASED TO BE CONSIDERING
ACTING DIRECTOR LARSON FOR THIS
ROLE. COLLEAGUES, THE
APPOINTMENT PACKET HAS BEEN
CIRCULATED WITH COUNCILMEMBERS
AND IS INCLUDED IN THE AGENDA
PACKET FOR TODAY'S MEETING.
TODAY IS A CHANCE TO HEAR FROM
ACTING DIRECTOR LARSON AND FOR
COMMITTEE MEMBERS TO ASK ANY
QUESTIONS THAT WE MAY HAVE. OUR
OFFICE ALSO SENT OUT A LIST OF
WRITTEN QUESTIONS TO ACTING
DIRECTOR LARSON, WITH A REQUEST
TO RESPOND TO THOSE QUESTIONS IN
WRITING BY AUGUST 31st, AND I
PLAN TO HOLD A VOTE ON HER
APPOINTMENT IN OUR NEXT
COMMITTEE MEETING AFTER RECESS,
WHICH IS GOING TO BE SEPTEMBER
9th. AS WE ALREADY HEARD TODAY,
THIS APPOINTMENT COMES AT AN
INCREDIBLY IMPORTANT TIME FOR
HOUSING IN THE OFFICE OF HOUSING
HERE IN SEATTLE. WE KNOW THAT
FAMILIES ARE STRUGGLING WITH
RISING PRICES, AND THERE ARE A
NUMBER OF CHALLENGES FACING OUR
AFFORDABLE HOUSING COMMUNITY,
INCLUDING THE NEED TO DO DEBT
RESTRUCTURING, IMPACT FROM
FEDERAL FUNDING LOSS AND OUR
ONGOING WORK TO STEM THE TIDE OF
DISPLACEMENT FOR OUR COMMUNITIES
HERE IN SEATTLE. I'M REALLY
PROUD THAT SEATTLE HAS LED THE
NATION IN RECENT RECENT YEARS ON
BUILDING NEW AFFORDABLE UNITS,
AND WE KNOW THAT HAS TO CONTINUE
TO INNOVATE AND ENSURE THAT WE
ARE MAKING INVESTMENTS THAT BOTH
STRATEGICALLY AND EFFICIENTLY
EXPAND AND MAINTAIN OUR HOUSING
SUPPLY HERE IN SEATTLE. I WON'T
SAY TOO MUCH ABOUT KELLY BECAUSE
SHE'S HERE, BUT KELLY BRINGS 20
YEARS OF EXPERIENCE WITHIN THE
AFFORDABLE HOUSING SECTOR AND
HAS SERVED AS O. S POLICY AND
PLANNING DIRECTOR FOR THE LAST
FIVE YEARS. SHE HAS A DEEP
UNDERSTANDING OF BOTH THE
CHALLENGES FACING HOUSING
PROVIDERS AND KNOWS THE HISTORY
OF THE PROGRAMS THAT HAVE WORKED
WELL AND WHAT HASN'T HERE IN
SEATTLE. KELLY, I'M EXCITED TO
WELL, I'M EXCITED TO HEAR MORE
ABOUT YOU, BUT I'LL TURN IT
OVER TO NICOLE FROM THE MAYOR'S
OFFICE FIRST. WELCOME.
-- HI. THANK YOU, COUNCILMEMBER
FOSTER. I'M SO EXCITED TO BE
HERE TO SUPPORT KELLY LARSON.
AND GOOD AFTERNOON,
COUNCILMEMBERS. THANK YOU FOR
THIS TIME. SO KELLY IS MAYOR
WILSON'S APPOINTEE FOR DIRECTOR
OF THE SEATTLE OFFICE OF HOUSING
FOR THIS HEARING TODAY. SHE LED
AN INTERNATIONAL MAYOR. WILSON
LED AN INTERNATIONAL AND
INTENSIVE PROCESS TO FILL THIS
ROLE. THIS WAS A COMPETITIVE,
LONG PROCESS. THANK YOU,
COUNCILMEMBER FOSTER, FOR BEING
PART OF IT. AND TO MANY OF THE
COMMUNITY MEMBERS AND THE STAFF
FOR PARTICIPATING IN THIS
PROCESS, THE SEARCH FOCUSED ON
FINDING A LEADER WHO COULD CARRY
FORWARD THE MAYOR'S HOUSING,
VISION, VISION, CREATE
STABILIZATION FOR THE SECTOR AND
FOR THE STAFF, AND THROUGHOUT
THE PROCESS, THE MAYOR'S OFFICE
ENGAGED KEY AFFORDABLE HOUSING
PARTNERS, COMMUNITY
ORGANIZATIONS AND THE STAFF AT
THE OFFICE OF HOUSING. FROM THAT
INPUT, ONE CLEAR CANDIDATE ROSE
TO THE TOP. KELLY LARSON I'M
REPEATING SOME THINGS THAT HAVE
BEEN SAID, BUT KELLY BRINGS 20
YEARS OF EXPERIENCE IN THE
AFFORDABLE HOUSING SECTOR AND
FOR THE PAST FIVE YEARS HAS
SERVED AS THE OFFICE OF HOUSING
POLICY AND PLANNING DIRECTOR IN
THAT ROLE, SHE LED THE
REAUTHORIZATION OF THE SEATTLE
HOUSING LEVY, ONE OF THE LARGEST
OF ITS KIND IN THE NATION. SHE
CREATED NEW FUNDING PROGRAMS
THROUGH JUMPSTART TO SUPPORT
PERMANENT SUPPORTIVE HOUSING AND
AFFORDABLE HOUSING. SHE ALSO LED
THE MULTIFAMILY TAX EXEMPTION
REAUTHORIZATION WORK TO
STRENGTHEN HOUSING OPERATOR
STABILITY AND HELP THE CITY
RESPOND TO FEDERAL FUNDING
THREATS MAYOR WILSON SEES KELLY
EXACTLY AS THE KIND OF
THOUGHTFUL, VALUES BASED AND
DECISIVE LEADERSHIP OUR CITY
NEEDS. SHE HAS THE EXPERIENCE
AND JUDGMENT TO ADVANCE THE
HOUSING AGENDA THAT WE NEED AT
THIS TIME, AND KEEP THIS
CRITICAL WORK MOVING FORWARD. WE
ARE CONFIDENT THAT SHE WILL
SERVE SEATTLE WELL, AND WE
RESPECTFULLY ASK FOR YOUR
SUPPORT IN CONFIRMING HER
APPOINTMENT. THANK YOU. KELLY IS
HERE TODAY AND LOOKS FORWARD TO
ANSWERING YOUR QUESTIONS
-- MY TURN.
-- THANK YOU FOR THAT, NICOLE. I
APPRECIATE THAT, AND I WANT TO
HAND IT OVER TO KELLY TO SHARE A
LITTLE BIT. AND THEN,
COLLEAGUES, I'LL BE TURNING TO
YOU FOR QUESTIONS.
-- CHAIR FOSTER COUNCILMEMBER
RINCK AND VICE CHAIR LYNN, I'M
HONORED TO BE CONSIDERED AS THE
NEXT DIRECTOR OF THE OFFICE OF
HOUSING. I WANT TO THANK THIS
INCREDIBLE COMMUNITY WHO SHOWED
UP HERE TODAY. THESE ARE ALL
PEOPLE WHO DO CRITICAL WORK IN
OUR CITY, WHO HAVE TAUGHT ME SO
MUCH OVER THE YEARS, SHAPED THE
PERSON THAT I AM AND WHO
COLLECTIVELY SUPPORT OUR SHARED
CAUSE OF HOUSING JUSTICE. NO
PERSON CAN DO THIS WORK ALONE.
WE DEVELOP BETTER IDEAS AND
ACHIEVE STRONGER OUTCOMES WHEN
WE WORK IN PARTNERSHIP AND
COALITION WITH OTHERS. IN THIS
ROLE, THAT MEANS THE ENTIRE
STAFF TEAM AT THE OFFICE OF
HOUSING, GOVERNMENT PARTNERS,
ELECTED OFFICIALS AND INVESTORS,
ALL THE DIFFERENT WORKERS,
COMMUNITY PARTNERS AND
ORGANIZATIONS THAT BUILD,
PRESERVE AND OPERATE AFFORDABLE
HOMES, AND THE RESIDENTS WHO
LIVE IN THESE HOMES, THEY
PROVIDE SOME OF OUR MOST
IMPORTANT FEEDBACK. I'VE BEEN
PRIVILEGED TO WORK IN THIS FIELD
FOR NEARLY 20 YEARS, REPEATING
THAT NUMBER AGAIN AND AGAIN IS A
LITTLE CHALLENGING. I STARTED AT
KING COUNTY, WORKING ON THE
FIRST VETERANS AND HUMAN
SERVICES LEVY. I SPENT SOME
GREAT YEARS AT PLYMOUTH HOUSING
WITH MANY OF THESE FOLKS, AND
HAVE BEEN AT, OH, JOINED HERE TO
WORK ON THE REVERED SEATTLE
HOUSING LEVY, WHICH IS OUR
CITY'S FOUNDATIONAL REVENUE TOOL
FOR HOUSING. THE MOST IMPORTANT
WORK WE DO AT O IS TO INVEST IN
PERMANENTLY AFFORDABLE HOMES FOR
THOSE MOST IN NEED, HOUSING THAT
IS PROTECTED FROM PROFIT
MOTIVES, ESPECIALLY IN THIS TIME
WE ARE IN. WE MUST FIND THE
RIGHT BALANCE FOR OUR
INVESTMENTS, PRESERVING THE
HOMES WE HAVE AND BUILDING NEW
HOMES, SUPPORTING HOUSING
OPERATIONS AND NEW DEVELOPMENT.
INVESTING IN RENTAL HOUSING AND
HOMEOWNERSHIP OPPORTUNITIES AT
ITS BEST, AFFORDABLE HOUSING
PROVIDES STABILITY FOR FAMILIES
AND INDIVIDUALS TO THRIVE.
AFFORDABLE HOMES PROVIDE
CONSISTENT SHELTER FOR PEOPLE TO
WEATHER THE MANY STORMS THAT
LIFE BRINGS. AFFORDABLE HOUSING
AND HOMELESSNESS. THANK YOU FOR
CONSIDERING ME FOR THIS
IMPORTANT ROLE.
-- THANK YOU SO MUCH FOR THAT.
AND YEAH, I THINK WE'LL JUST
MAKE A GAME OUT OF SAYING 20
YEARS NOW. SO I'LL I'LL INVITE
MY COLLEAGUES TO PARTICIPATE IN
THAT. I WILL FIRST TURN TO
COLLEAGUES TO SEE WHAT QUESTIONS
YOU HAVE FOR ACTING DIRECTOR
LARSON.
-- RAISE YOUR.
-- HAND MANUALLY
-- I'LL START, IF THAT'S OKAY.
CHAIR. DON'T REALLY HAVE A LOT
OF QUESTIONS SINCE WE HAD THE
ABILITY TO TO WORK TOGETHER FOR
MANY YEARS. SUPER EXCITED FOR
TODAY AND FOR THE WORK TO COME
YOU KNOW, ONE OF MY CONCERNS IS
WHO IS GOING TO REPLACE, YOU
KNOW, YOUR OLD ROLE AS POLICY
DIRECTOR BECAUSE YOU DID SUCH A
GOOD JOB. AND THOSE ARE TOUGH
SHOES TO FILL. I DON'T EXPECT A
RESPONSE, BUT LOOK FORWARD TO
WHOEVER STEPS INTO THAT ROLE AS
WELL. OBVIOUSLY BIG CHALLENGES
AHEAD OF US. SO NOT AS WE WERE
JOKING EARLIER, A LITTLE BIT OF
A CONGRATULATIONS, A LITTLE BIT
OF CONDOLENCES. THIS IS GOING TO
BE HARD. AND BUT AS I SAID
EARLIER, I CAN'T IMAGINE ANYONE
ELSE BETTER SUITED TO TAKE ON
THIS REALLY DIFFICULT ROLE. AND
YOU KNOW, MOST OF ALL, I THINK I
JUST VALUE YOUR YOU KNOW, BOTH
YOUR VALUES AND YOUR TRUSTED
LEADERSHIP, BUT ALSO JUST YOUR
THOUGHTFULNESS AND YOUR
STRATEGIC THINKING. YOU KNOW,
THESE ARE REALLY COMPLEX
PROBLEMS. AND, YOU KNOW, I JUST
APPRECIATE HOW YOU APPROACH THE
WORK AND WORK IN PARTNERSHIP.
AND THAT'S JUST GOING TO BE SO,
SO CRITICAL RIGHT NOW, WHETHER
IT'S PARTNERSHIP WITH OUR
HOUSING PROVIDERS, PARTNERSHIP
WITH US ON COUNCIL AND
PARTNERSHIP ACROSS, YOU KNOW,
WITH OUR COUNTY PARTNERS, STATE
PARTNERS, YOU KNOW, SO MANY
DIFFERENT PARTNERSHIPS THAT WE
NEED TO WORK TOGETHER. SO AGAIN,
DON'T REALLY HAVE ANY
QUESTIONS, BUT JUST WANTED TO
SAY, SO EXCITED TO, TO HAVE YOU
HERE AT THE TABLE AND LOOK
FORWARD TO WORKING WITH YOU.
-- THANK YOU SO MUCH, VICE CHAIR
LYNN. I APPRECIATE THAT.
COUNCILMEMBER RINCK YOU'RE
RECOGNIZED.
-- THANK YOU, CHAIR FOSTER. I
THINK ONE OF THE BENEFICIAL
THINGS ABOUT YOUR APPOINTMENT
COMING BEFORE US IS JUST THE
MATTER THAT WE'VE I KNOW MY
OFFICE HAS HAD THE PLEASURE OF
WORKING ALONGSIDE YOU FOR THE
PAST YEAR, SO WE'VE GOTTEN TO
KNOW YOUR WORK STYLE, HOW YOU
MOVE THROUGH THE WORK. AND IT'S
CLEAR THAT MANY FOLKS WHO HAVE
BEEN INVOLVED IN THE WORK OF
BRINGING ONLINE AFFORDABLE HOMES
FOR OUR COMMUNITY, TRUST IN YOU.
AND SO I THINK JUST TO BUILD ON
SOME OF THE POINTS THAT VICE
CHAIR LYNN RAISED, YOU KNOW,
THERE ARE REAL CHALLENGES FACING
THE AFFORDABLE HOUSING SECTOR.
WE'VE TALKED ABOUT THEM AND
UNPACKED THEM IN THIS COMMITTEE
OVER THE PAST YEAR. AND I THINK
JUST HOLISTICALLY WONDERING,
UNDER YOUR DIRECTION, OVER THE
OFFICE OF HOUSING, WHAT ARE SOME
OF THE IMMEDIATE SHORT TERM
CHANGES YOU'RE ANTICIPATING?
MEDIUM TERM AND LONG TERM, IN
TERMS OF ADDRESSING SOME OF THE
CHALLENGES FACING THE INDUSTRY
-- THAT'S A GREAT QUESTION. WE
ARE LOOKING SO OUR LARGEST
FUNDING OPPORTUNITY IS CURRENTLY
ACTIVE. THAT IS OUR RENTAL
HOUSING NOFA. WE'VE RELEASED
$110 MILLION FOR PRESERVATION
AND NEW PRODUCTION OF AFFORDABLE
HOMES. IT WILL BE OUR OFFICE'S
PRIORITY TO ENSURE THAT THOSE
INVESTMENTS ARE LANDING AS
STRATEGICALLY AS POSSIBLE IN
COMMUNITIES WHERE AFFORDABLE
HOMES ARE MOST NEEDED, AND WITH
TYPOLOGIES, BEDROOM SIZES FOR
FAMILIES AND OTHERS WHO NEED
THEM, AND AT RENT LEVELS THAT
ARE COMPETITIVE IN THE MARKETS
THAT THEY ARE LOCATED IN. SO OUR
TEAM WILL BE WORKING REALLY
COLLABORATIVELY ACROSS ALL OF
OUR DIVISIONS TO LOOK CLOSELY AT
ALL THE APPLICATIONS THAT ARE
COMING THROUGH AND MAKE REALLY
STRATEGIC DECISIONS THIS YEAR
WITH OUR INVESTMENTS. THAT'S A
REAL NEAR-TERM CHOICE THAT WE
HAVE. WE ALSO HAVE OUR
HOMEOWNERSHIP NOFAS IN ACTION,
AND THERE ARE SOME DECISIONS
BEING MADE THERE. AND WE HAVE
OTHER INVESTMENTS ON THE HORIZON
FOR DEBT RESTRUCTURING, DEBT BUY
DOWN COMING LATER IN THE FALL.
WE DO BELIEVE THAT JUST IN
TALKING WITH OUR COMMUNITY
PARTNERS AND OUR STAFF WHO ARE
WELL INFORMED ON THESE ISSUES,
THAT WE WILL LIKELY BE IN THIS
POSITION OF INVESTING IN
PRESERVATION AND DEBT
RESTRUCTURING TYPES OF
INVESTMENTS AT A HIGHER LEVEL
THAN WE EVER HAVE FOR THE NEAR
TERM. CAN'T REALLY PREDICT WHAT
THAT LOOKS LIKE AS IT IS. BUDGET
CONTINGENT REALLY DEPENDS ON THE
FUNDING SOURCES WE HAVE
AVAILABLE AND AT WHAT LEVELS.
BUT CERTAINLY FOR THIS YEAR,
WE'RE CONTINUING THE TREND THAT
WE WERE ON LAST YEAR. AND THEN
WE'LL HAVE TO SEE FOR 2027
DEPENDS ON ON BUDGET LONG TERM,
MAYBE ANOTHER SHORT TERM WE'D
LIKE TO GET TO A CONVERSATION
ABOUT HOW WE REOPEN THE
PERMANENT SUPPORTIVE HOUSING
PIPELINE. CURRENTLY, WE'RE NOT
FUNDING NEW SUPPORTIVE HOUSING.
IT'S VERY DIFFICULT FOR OUR
CITY TO ADDRESS HOMELESSNESS IF
WE'RE NOT GROWING OUR SUPPLY OF
SUPPORTIVE HOUSING. WE ALSO NEED
MANY OTHER PARTNERS AT THE TABLE
IN ORDER TO HAVE SUCCESS WITH
OUR SUPPORTIVE HOUSING PROJECTS
CAPITAL LESS SO LONG TERM
OPERATING, MAINTENANCE AND
SERVICES EXPENSES ARE THE MOST
IMPORTANT PART THAT THOSE
PROJECTS COST A DECENT AMOUNT OF
MONEY TO OPERATE AS IS, AS IS
WELL JUSTIFIED, AND WE NEED
OTHER PARTNERS AT THE TABLE TO
MAKE THAT HAPPEN. SO WE'LL BE
INTERESTED IN LAUNCHING THOSE
CONVERSATIONS IN THE NEXT
SEVERAL MONTHS TO TALK ABOUT HOW
WE GET THERE. FINALLY, I MEAN, I
GUESS I'LL JUST BRIEFLY RESPOND
TO COUNCILMEMBER LYNN'S
QUESTION, TOO, BECAUSE WE HUMAN
RESOURCES ITEMS HAVE BEEN A HIGH
PRIORITY FOR ME JUST IN THE
FIRST COUPLE OF WEEKS OF BEING
IN THIS ROLE. AND SO WE ARE
MOVING AS QUICKLY AS WE CAN. AND
I'M ALSO VERY INTERESTED IN
ENSURING THAT THE PERSON WHO
STEPS INTO THE POLICY DIRECTOR
ROLE IS ABLE TO LEAD US WELL
THROUGH THESE CHALLENGING TIMES.
I LOOK FORWARD TO THAT PROCESS
AND WE'LL GET THAT GOING AS
SOON.
-- THANK YOU SO MUCH FOR
UNPACKING A LITTLE BIT WHAT'S ON
THE HORIZON. AND I WANT TO JUST
NOTE HOW MUCH I APPRECIATE THE
INTENTION ON BEING STRATEGIC
WITH THE INVESTMENTS WE HAVE IN
THE OFFICE OF HOUSING. ALSO, IN
FULL RECOGNITION THAT THE
LANDSCAPE WE'RE WORKING IN
BETWEEN A REALLY CHALLENGING
ECONOMY, RISING CONSTRUCTION
COSTS AND A QUICKLY CHANGING
FEDERAL FUNDING LANDSCAPE MAKES
IT REALLY CHALLENGING TO BE
STRATEGIC WITH ALL OF THOSE
VARIABLES IN PLAY. AND SO I
APPRECIATE THE FOCUS ON THAT AND
FULL RECOGNITION THAT THESE ARE
UNPRECEDENTED TIMES. AND I
DON'T KNOW HOW MANY TIMES I CAN
SAY THAT OR HOW MANY TIMES I'VE
SAID THAT IN THE PAST YEAR. I
THINK TO THAT POINT, AND YOU
TOUCHED ON THIS WITH JUST A
MATTER OF LIKE PRESERVATION AND
DEBT RESTRUCTURING. I THINK
THERE'S THE MATTER OF HOW THE
OFFICE OF HOUSING WILL BE
BALANCING THE NEED FOR HOUSING
PRODUCTION AND KNOWING THE
GROWING NEED ON OPERATIONS AND
MAINTENANCE. SO I'M WONDERING
FOR YOU, WHAT ARE SOME OF THE
KEY METRICS OF HOW WE'RE GOING
TO BE EVALUATING THE BALANCE OF
THOSE TWO?
-- THE OFFICE OF HOUSING HAS
BEEN GROUNDED AND GUIDED BY THE
SEATTLE HOUSING LEVY GOALS FOR
40 YEARS, AND THAT THOSE GOALS,
WHICH ARE APPROVED BY THE
VOTERS, ARE VERY IMPORTANT TO
OUR TEAM. AND WE'LL TALK ABOUT
THIS A LITTLE BIT LATER IN THE
NEXT PRESENTATION. BUT THE
ACHIEVING THE GOALS OF THE
HOUSING LEVY, WHICH PRIMARILY
FOCUSES ON PRODUCTION OF RENTAL
HOUSING AND PRODUCTION OF
HOMEOWNERSHIP, HOUSING, THAT'S
OUR NORTH STAR. IT HAS BEEN FOR
A LONG TIME. WE BELIEVE WE CAN
DO BOTH. THE ACHIEVEMENT OF THE
SEATTLE HOUSING LEVY GOALS AND
THE PRESERVATION AND SUPPORT OF
OPERATIONS OF OUR PORTFOLIO.
AGAIN, IT DOES DEPEND ON WHAT
THE FUTURE HOLDS FOR THE OFFICE
OF HOUSING BUDGET, BUT WE HAVE
FOUND WAYS TO BE CREATIVE WITH
THE RESOURCES THAT WE HAVE, AND
I THINK IT WILL BE LIKELY A
SIMILAR CATEGORICAL SPLIT
BETWEEN NEW PRODUCTION
PRESERVATION, DEBT RESTRUCTURING
AND HOUSING OPERATIONS NEXT
YEAR. THIS YEAR AND LAST YEAR,
IT WILL LIKELY LOOK VERY
SIMILAR. IT DEPENDS ON THE
COMPETITION. THE BENEFIT OF THE
OPEN PROCUREMENT THAT THE OFFICE
RUNS IS THAT YOU HAVE A LOT OF
PROJECTS COME THROUGH. WE HAVE
AN OPPORTUNITY TO MEET AND HEAR
FROM A LOT OF DIFFERENT
APPLICANTS, AND SOMETIMES
THERE'S PROJECTS THAT WE'RE NOT
AWARE OF THAT COME THROUGH AND
THEY END UP, YOU KNOW, WINNING,
WINNING THROUGH FAIR
COMPETITION. SO IT WILL BE
IMPORTANT TO SEE WHAT THOSE
PROJECTS LOOK LIKE. IT'S ALL
DEPENDENT ON DEVELOPER AND
OPERATOR CAPACITY TO BRING
FORWARD APPLICATIONS FOR
PRESERVATION PROJECTS, WHICH ARE
NOT SIMPLE. IN ADDITION TO NEW
PRODUCTION, IN ADDITION TO
RUNNING THEIR THEIR HOUSING
ORGANIZATIONS EVERY DAY, IT'S,
IT'S A LOT THAT WE ASK OF
ORGANIZATIONS. SO IT DEPENDS ON
WHAT COMES IN, WHAT WE ARE
PROACTIVELY SEEKING, WHICH IS
RELIANT ON ALL OF THE DATA AND
ANALYSIS AND THE EXPERTISE THAT
OUR STAFF TEAMS HOLD EACH DAY.
SO WE'RE GOING TO BE INTERESTED
TO SEE HOW THIS PLAYS OUT THIS
YEAR. AND AGAIN, REALLY FOCUSING
THE TEAM ON BEING A STRATEGIC AS
POSSIBLE AND MAKING THESE
DECISIONS.
-- THANK YOU FOR THAT. AND
CHAIR, IF I MAY, I HAVE ONE
FINAL QUESTION JUST FOR TODAY.
THANK YOU. BUILDING ON ON THAT
POINT, YOU KNOW, WE GO THROUGH A
NUMBER OF COMPETITIVE FUNDING
CYCLES, AND I AM ALWAYS THINKING
ABOUT THE ORGANIZATIONS THAT ARE
EMBARKING ON THEIR FIRST
PROJECT. SO WE'RE TALKING ABOUT
OUR COMMUNITY LED AFFORDABLE
HOUSING PROJECTS, OFTEN BEING
PUT FORWARD BY COMMUNITY BASED
ORGANIZATIONS THAT SUPPORT A
NUMBER OF OF MARGINALIZED
COMMUNITIES ACROSS THE CITY. AND
SO FOR THE OFFICE OF HOUSING,
HOW ARE YOU ALL THINKING ABOUT
AND PARTICULARLY UNDER YOUR
LEADERSHIP, WHAT KIND OF
SUPPORTS OR REFORMS FOR HOW
OFFICE OF HOUSING WILL BE
ASSISTING THOSE ORGANIZATIONS
THAT MIGHT BE EMBARKING IN THEIR
FIRST PROJECTS AND WANTING TO BE
COMPETITIVE IN FUTURE FUNDING
CYCLES?
-- THIS IS REALLY IMPORTANT TO
ME AND TO MANY AT THE OFFICE OF
HOUSING. THIS IS EQUITY IN
ACTION THROUGH OUR HOUSING
DOLLARS AND EQUITY PLAYS OUT IN
THE OFFICE OF HOUSING WORK AND
IN OUR COMMUNITY. PARTNERS WORK
AT EVERY LEVEL OF THE DAY, EVERY
LEVEL OF STAFFING. IT PLAYS OUT
IN TERMS OF WHERE OUR FUNDING
LANDS, WHICH COMMUNITIES HAVE
ACCESS TO OUR FUNDING, WHICH
COMMUNITIES HAVE ACCESS TO OUR
HOUSING, WHAT DO OUR STAFF NEED
TO BE SUCCESSFUL, BOTH AT THE
OFFICE BUT ALSO THROUGHOUT THE
AFFORDABLE HOUSING SECTOR? WE
HAVE A NUMBER OF COMMUNITY BASED
PROJECTS THAT HAVE BEEN HAVE
APPLIED FOR FUNDING FROM THE
OFFICE OF HOUSING AND ARE
SEEKING PARTNERSHIPS, ARE
SEEKING ADDITIONAL INVESTMENT.
AND THE WAY THAT THIS HAS WORKED
FOR A LONG TIME, AND IT'S NOT
PERFECT, BUT PROJECTS START AT A
VERY SIMPLE STAGE. YOU JUST HAVE
TO HAVE AN IDEA, A SMART PERSON
AND A PERSON WHO CARES ABOUT
THEIR COMMUNITY HAS AN IDEA TO
GET FROM THAT IDEA TO BUILDING
AND OPERATING. HOUSING IS
SOMETIMES DIFFICULT AND A LONG
HAUL, AND IT REQUIRES YOU TO
TAKE ON ENORMOUS RISK AND BUILD
UP AN ORGANIZATIONAL CAPACITY.
AND DO A LOT OF WORK TO GET
THERE. AND WE'VE SUPPORTED AND
SEEN AMAZING WORK FROM A LOT OF
COMMUNITY BASED ORGANIZATIONS IN
SEATTLE WHO'VE ACHIEVED A
NUMBER OF THINGS AND HAVE BUILT
INCREDIBLE HOUSING PROJECTS
ACROSS THE CITY AND GREAT
ORGANIZATIONS. AND WE NEED TO
CONTINUE TO DO THAT WITH GROUPS.
IT IS A CHALLENGING TIME. IT'S
JUST SIMILAR TO THE CHALLENGES
THAT WE FACE. WE ARE SEEING MORE
AND MORE INVESTOR RISK
INTOLERANCE IN SEATTLE. WE'RE
STARTING TO SEE HIGHER
REQUIREMENTS PLACED ON OUR
PROJECTS, PARTICULARLY IN
CERTAIN NEIGHBORHOODS AND FOR
PARTICULAR TYPES OF
ORGANIZATIONS. AND THESE ARE
MAJOR INVESTORS AND PROJECTS
THAT WE NEED TO MAKE PROJECTS A
REALITY AND THAT WE DON'T
CONTROL. BUT WHAT WE CAN DO IS
WORK WITH THESE GROUPS AS MUCH
AS WE POSSIBLY CAN TO SUPPORT
KEY PARTNERSHIPS AND SUPPORT
FAIR PARTNERSHIPS, AND TO BRING
THE OFFICE OF HOUSING RESOURCES
TO SUPPORT THEM AS WELL. WHEN
WE'RE NEEDED TO MAKE SURE THAT
THESE PROJECTS COME THROUGH.
SOMETIMES THAT MEANS COMING IN
AT A HIGHER PER UNIT COST,
BECAUSE WE WANT TO SUPPORT THIS
PROJECT AND BECAUSE IT MATTERS,
AND SOMETIMES IT MEANS OTHER
TYPES OF SUPPORT, TECHNICAL
ASSISTANCE, WORK WITH INVESTORS,
WORK WITH OTHER PUBLIC FUNDERS.
SO WE'RE HERE FOR THAT. WE KNOW
THAT THERE ARE A COUPLE OF
PROJECTS IN THE PIPELINE RIGHT
NOW LINING UP FOR INVESTMENT.
AND OUR TEAM IS HAVING ACTIVE
CONVERSATIONS ABOUT THOSE
PROJECTS. SO WE'LL BE EXCITED TO
SEE WHAT RECEIVES FUNDING THIS
YEAR.
-- THANK YOU SO MUCH FOR THAT
RESPONSE, AND THANK YOU FOR
ANSWERING MY QUESTIONS AND FOR
BEING BEFORE THE COMMITTEE
TODAY. AND THANK YOU TO THE
MAYOR'S OFFICE FOR BRINGING
FORWARD THIS APPOINTMENT. THANK
YOU. THANK YOU, CHAIR.
-- THANK YOU. EXCUSE ME. THANK
YOU SO MUCH. COUNCILMEMBER RINCK
AND I WILL TURN TO MY QUESTIONS
AND I'LL BUILD ACTUALLY A
LITTLE BIT OFF OF THAT
CONVERSATION THAT YOU STARTED.
COUNCILMEMBER RINCK. YOU KNOW,
ONE OF THE THINGS THAT I HEAR
SOMETIMES FROM OUR PROVIDERS,
AND I KNOW THAT YOU HAVE THIS
EXPERIENCE AND WE SEE THIS AS
FOLKS WHO ARE COMING THROUGH OUR
FUNDING ROUNDS. AND BECAUSE OF
THE GAPS IN FINANCING, THEY ARE
SOMETIMES COMING THROUGH THE
OFFICE OF HOUSING FUNDING
ROUNDS. MAYBE IT'S TWO, THREE,
SEVERAL TIMES IN ORDER TO
COMPLETE THEIR FUNDING STACK FOR
THEIR PROJECTS. AND WE KNOW THAT
THE STATE ALSO HAS A ROLE. AND
OBVIOUSLY, WE HAVE GREAT
PARTNERSHIP AND THE STATE
FUNDING COMING INTO
ORGANIZATIONS IS ALSO PART OF
HOW MANY OF OUR PARTNERS ARE
GETTING FUNDED. SO WITH THAT AS
PREAMBLE, I'M CURIOUS TO HEAR
IF THERE ARE STRATEGIES OR
INNOVATIONS THAT YOU'RE THINKING
ABOUT AS YOU STEP INTO THIS ROLE
FOR HOW WE APPROACH THAT PROCESS
SO THAT WE CAN PERHAPS MAKE IT
MORE EFFICIENT FOR PARTNERS, OR
CUT DOWN ON THE AMOUNT OF TIME
THAT PEOPLE ARE WAITING TO
COMPLETE THOSE STACKS.
-- YES. AND I'VE, I'VE HAD SOME
REALLY INTERESTING CONVERSATIONS
IN THE LAST COUPLE OF WEEKS WITH
SOME KEY LEADERS IN THE
COMMUNITY, SMART FOLKS WHO'VE
BEEN DOING THIS A LONG TIME.
GOOD IDEAS, YOUR OFFICE AS WELL
HAVE BROUGHT FORWARD SOME REALLY
INTERESTING STEPS. I THINK THAT
ESSENTIALLY WHAT FOLKS HAVE
ASKED FOR, AND WE'VE BEEN
REQUESTED TO DO THIS FOR AT
LEAST A YEAR, MAYBE TWO YEARS,
IS TO GET TO A MORE ADVANCED
LEVEL OF PLANNING FOR PIPELINE
SO THAT THERE'S MORE CERTAINTY
FOR DEVELOPERS OUT THERE, AND
THAT THEY ARE PROPERLY
ALLOCATING RESOURCES TO
REDEVELOPMENT AND PERMITTING AND
DESIGN IN TIME FOR SEATTLE
RESOURCES TO COME THROUGH FOR
THEIR PROJECT AND OTHER
RESOURCES TO COME THROUGH. IT'S
A VERY REASONABLE ASK IN ORDER
TO ACHIEVE IT, I BELIEVE WE NEED
TO HAVE STRONG PREDICTABILITY OF
OUR FUNDING SOURCES AND. STRONG
MANAGEMENT OF OUR SHORT TERM
LOAN PROGRAM. SO WE ARE
INTERESTED IN GETTING THERE. THE
TEAM IS WORKING REALLY
STRATEGICALLY RIGHT NOW ON
ANALYZING OUR SHORT TERM LOAN
OBLIGATIONS AND LOOKING AHEAD AT
WHAT WE CAN POSSIBLY DO WITHIN
OUR CURRENT MEANS, WITHIN OUR
CURRENT BUDGET, TO BE CREATIVE
AND BE ABLE TO OFFER MORE
CERTAINTY TO DEVELOPERS AS THEY
PLAN INTO THE FUTURE. WE
DEFINITELY WANT. IT'S ALWAYS A
BALANCE. YOU WANT TO MAKE SURE
THE PIPELINE IS STILL ROBUST AND
THAT PROJECTS ARE MOVING FORWARD
AND READY TO GO. YOU WANT TO
HAVE HIGH COMPETITION COMING
THROUGH, AND IT MAKES A LOT OF
SENSE TO ALSO PROVIDE MORE
CERTAINTY TO THESE DEVELOPERS SO
THAT THEY UNDERSTAND WHERE SORT
OF WHERE THEY ARE IN THE LINE
PROVIDING TEARING OR SOME SORT
OF BETTER UNDERSTANDING OF HOW
MUCH TIME THEY NEED TO WAIT
BEFORE THERE WILL BE FUNDING
AVAILABLE. SO THE TEAM'S LOOKING
AT A FEW CONCEPTS. THERE ARE A
FEW IDEAS IN PLAY, AND WE'LL BE
INTERESTED TO SEE HOW THAT PLAYS
OUT. I THINK I JUST WAS TALKING
WITH SOME FOLKS ABOUT THIS TODAY
AND I SAID, LET'S, LET'S
RECONVENE LATER IN THE YEAR WHEN
WE KIND OF UNDERSTAND WHAT 2027
LOOKS LIKE, BUT WE'RE INTERESTED
IN PURSUING SOME OF THESE IDEAS.
-- THANK YOU FOR THAT, AND I
APPRECIATE YOUR OPENNESS AND NOT
JUST OPENNESS, BUT THE
COMMITMENT TO CONTINUING TO MAKE
OUR PROCESSES WORK BETTER TO
PARTNERS AND BEING RESPONSIVE
THERE, EVEN WITHIN THE THE
CONFINES THAT WE ALL ARE
OPERATING IN. SO THANK YOU FOR
THAT. AND I TURN TO SORT OF A
RELATED QUESTION. I KNOW
SOMETHING THAT I CARE ABOUT A
LOT AND THAT I KNOW YOU CARE
ABOUT, AND IT ALWAYS STANDS OUT
WHENEVER I'M TALKING WITH YOU,
IS THE FOCUS ON THE PEOPLE WHO
WE ARE SERVING. AND I THINK
THAT'S SOMETHING THAT SOUNDS
REALLY OBVIOUS, RIGHT? BUT CAN
SOMETIMES GET LOST WHEN WE'RE
TALKING ABOUT UNITS AND
PRODUCTION GOALS IN THOSE
PIECES. AND THAT IS SOMETHING I
JUST REALLY APPRECIATE ABOUT
YOU. AND ONE OF THE THINGS THAT
I SEE AS A CHALLENGE IN OUR
CITY, SORT OF ACROSS THE BOARD,
IS THAT ACCESSIBILITY OF
AFFORDABLE HOUSING AND WHERE
WE'RE ABLE TO LOCATE AND BUILD
AFFORDABLE HOUSING. AND I'M
CURIOUS IF THERE ARE THOUGHTS
THAT YOU HAVE ON THE ROLE FOR
OFFICE OF HOUSING WHEN IT COMES
TO SUPPORTING AND CONTINUING TO
GROW OUR INVESTMENTS IN
AFFORDABLE HOUSING IN DIVERSE
GEOGRAPHIES AROUND THE CITY,
BECAUSE I THINK THAT'S REALLY
KEY TO HAVING THE CROSS-CLASS,
MULTIRACIAL CITY THAT WE WANT TO
BE.
-- CHAIR FOSTER HAVE YOU BEEN A
SPY IN MY OFFICE TODAY? THERE
HAVE BEEN SO MANY CONVERSATIONS
THAT ARE VERY LINED UP WITH YOUR
QUESTIONS. WE WERE JUST TALKING
ABOUT GEOGRAPHY EARLIER TODAY,
TOO. THIS IS VERY MUCH ON OUR
MIND. WE'VE BEEN WE HAVE
CONSULTANT WORK UNDERWAY WITH
THE UW HOUSING FUTURES CENTER,
WHERE WE'RE EXAMINING. WE'VE
HAD A LONG STANDING SITING
POLICY THAT HELPS TO DETERMINE
WHERE AFFORDABLE HOUSING LANDS
THROUGHOUT THE CITY. WE'RE IN
THE MIDST OF REALLY REEXAMINING
THIS AND WHAT OUR PRIORITIES ARE
IN TERMS OF GEOGRAPHY AND
PLACEMENT OF INVESTMENTS. WE'VE
STARTED TO MAKE SOME CHANGE IN
THIS REGARD WITH MORE PUBLIC
SITE UTILIZATION, AND WE
ACTUALLY PURCHASED A SITE IN
SOUTH PARK TO ACTIVELY SITE SOME
AFFORDABLE HOUSING IN A PART OF
THE CITY WHERE WE DID NOT HAVE
ANY INVESTMENTS. WE HAVE FORT
LAWTON ON THE HORIZON, WHICH IS
ANOTHER PLACE WHERE WE HAVE NOT
HAD ANY INVESTMENT. OTHER AREAS
OF OPPORTUNITY, THOUGH, ACROSS
THE CITY. THE TEAM IS REALLY
INTERESTED IN LOOKING AT HOW WE
BACK A CHANGE LIKE THAT WITH
DATA AND EVIDENCE, AND THEN MOVE
TOWARD IMPLEMENTING THAT AT THE
RIGHT PACE. THIS GOES BACK TO
SOME OF THAT PIPELINE PLANNING
CONVERSATION. MANY OF OUR
PROVIDERS HAVE PIPELINES AND
SITES LINED UP THAT THEY'VE
INVESTED RESOURCES IN. AND AS WE
STARTED TO TALK ABOUT THIS
CHANGE OF GEOGRAPHY AND
PRIORITIZATION, THERE ARE
CONCERNS BECAUSE A LOT OF THE
TIMES SITES ARE PURCHASED IN
AREAS WHERE LAND IS LEAST
COSTLY. THAT DOESN'T ALWAYS
OVERLAY WITH AREAS OF
OPPORTUNITY. SO WE HAVE TO
BALANCE AND MAKE SURE THAT WE'RE
WORKING CLOSELY WITH OUR
INVESTORS AROUND THE SITES THAT
THEY HAVE AND THE SITES AND
LOCATIONS THAT WE WANT TO SEE
MORE AFFORDABLE HOMES. SO MORE
TO COME THERE. BUT THERE'S A LOT
OF WORK UNDERWAY, AND WE HAVE
SOME PRELIMINARY INFORMATION WE
CAN SHARE WITH, WITH YOU ALL
ABOUT WHAT UW AND OUR TEAM HAS
FOUND. AND THERE'S MORE WORK
COMING.
-- THANK YOU FOR THAT. AND I
LOOK FORWARD TO GETTING THAT
HEARING, THAT PRELIMINARY
INFORMATION. AND I'M EXCITED TO
HEAR THE ALIGNMENT. EVEN JUST
DAY OF OF THESE CONVERSATIONS.
AND THEN I WANT TO TURN TO
ANOTHER PART OF THE ROLE LEADING
THE OFFICE OF HOUSING, WHICH,
YOU KNOW, I THINK ABOUT OUR
AFFORDABLE HOUSING PROVIDERS AND
WE OFTEN GO STRAIGHT TO THE
OFFICE OF HOUSING, BUT OBVIOUSLY
OUR AFFORDABLE HOUSING COMMUNITY
INTERSECTS WITH MANY DIFFERENT
PARTS OF CITY GOVERNMENT,
WHETHER THAT IS SDOT, WHETHER
THAT IS THE PUBLIC UTILITIES,
CITY LIGHT. THERE'S JUST SO
MANY ROLES THAT OUR LOCAL
GOVERNMENT PLAYS WHEN IT COMES
TO SUPPORTING THE PRODUCTION OF
HOUSING AND SUPPORTING THE
PRODUCTION OF AFFORDABLE
HOUSING. SO I WONDER IF YOU CAN
SPEAK TO THE WAY THAT YOU SEE
YOUR ROLE AS OFFICE OF HOUSING
DIRECTOR TO COLLABORATE WITH
OTHER CITY DEPARTMENTS IN ORDER
TO HELP MAKE SURE THAT WE ARE
BRINGING AFFORDABLE HOUSING
ONLINE.
-- THIS IS VERY IMPORTANT AND IT
IS VERY EASY TO POINT OUT ALL OF
THE AREAS OF MISMATCH AND
MISALIGNMENT. AND IT'S NOT
SIMPLE TO IDENTIFY SOLUTIONS.
HOWEVER, I HAVE BUILT STRONG
RELATIONSHIPS WITH MANY
DEPARTMENTS IN MY TIME AT THE
OFFICE OF HOUSING. I WORK
CLOSELY WITH A NUMBER OF THE
DIRECTORS AND SENIOR STAFF AT
SOME OF THESE KEY DEPARTMENTS,
AND THERE'S A LOT OF
WILLINGNESS AND INTEREST IN MORE
COLLABORATION AND THINKING
THROUGH HOW WE WORK BETTER TO
SUPPORT OUR PROJECTS. THERE'S
WORK UNDERWAY THAT WE ARE
COLLABORATING ON WITH THE
MAYOR'S OFFICE AND OTHER CITY
DEPARTMENTS TO TRY AND IMPROVE
THESE PROCESSES, BUT WE DO SEE
THIS PLAY OUT MORE REGULARLY
THAN IT THAN IT SHOULD. AND I'M
JUST THINKING OF SOME OF THE
FOLKS WHO HAVE SPOKEN HERE TODAY
AND SOME OF THE STORIES THEY
BROUGHT FORWARD TO US ON THEIR
DEVELOPMENTS AND HOW DIFFICULT
IT CAN BE TO MOVE A PROJECT
THROUGH CERTAIN TYPES OF
PERMITTING AND REVIEW IN THE
CITY, AND HOW COSTLY IT CAN BE.
AND OFTENTIMES THE COST WILL
FALL TO THE OFFICE OF HOUSING TO
-- COVER, SO IT'S IN OUR BEST
INTEREST IN ORDER TO TRY TO
ACHIEVE COST SAVINGS AND STRETCH
OUR PRECIOUS HOUSING DOLLARS AS
FAR AS POSSIBLE TO IMPROVE THIS
COORDINATION. SO WE'LL
DEFINITELY BE WORKING ON THIS.
IT'S A HIGH PRIORITY FOR THE
TEAM.
-- THANK YOU FOR THAT. I REALLY
APPRECIATE THAT. AND I SEE THE
SAME CHALLENGE THAT YOU SEE
THERE IN TERMS OF THE COST
IMPACT TO AFFORDABLE HOUSING
PROVIDERS AT A TIME WHEN WE WANT
TO MAKE SURE THAT WE'RE MAKING
IT EASIER AND THAT WE'RE BEING
SUPPORTIVE OF PEOPLE TO BRING
THAT HOUSING ONLINE. SO I'M
GOING TO ASK YOU A FINAL
QUESTION, AND THEN I'LL GO BACK
TO COLLEAGUES TO SEE IF THERE'S
ANY FINAL COMMENTS OR QUESTIONS
FROM FOLKS. BUT JUST GOING NOW,
JUST TO THE PERSONAL SIDE, WHAT
DOES IT MEAN TO YOU TO STEP INTO
THE ROLE OF LEADERSHIP AND OH,
DIRECTOR, AT THIS MOMENT?
-- I JUST KEEP COMING BACK TO I
CAN'T I CAN'T BELIEVE I'M
HERE. THIS IS THIS WASN'T ON MY
BINGO CARD. I AM SO HONORED AND
PRIVILEGED TO BE ABLE TO HAVE
HAD SUCH DIFFERENT JOBS AND WORK
WITH SO MANY DIFFERENT AMAZING
PEOPLE IN THE COURSE OF MY
CAREER AND LEARN FROM SO MANY
DIFFERENT FOLKS. BEING AT THE
OFFICE OF HOUSING HAS BEEN SO
GREAT. IT'S BEEN A REAL STRETCH
FOR ME. WHEN I FIRST CAME TO THE
OFFICE, I HAD TO LEARN A LOT AND
THAT WAS ROUGH, BUT ALSO KIND OF
FUN. AND I'VE CONTINUED TO LEARN
FROM MY COLLEAGUES AT THE OFFICE
OF HOUSING AND THE AREAS OF WORK
THAT WERE NOT SUPER FAMILIAR TO
ME, AND I KNOW I HAVE MORE TO
LEARN. SO I'M LOOKING FORWARD
TO THAT. I'M LOOKING FORWARD TO
CONTINUING TO WORK WITH ALL THE
STAFF TEAMS AT THE OFFICE IN
DIFFERENT WAYS THAN I HAVE IN
THE PAST, AND TO DO THE BEST I
CAN TO SUPPORT OUR STAFF, TEAMS
AND OUR PROVIDERS THROUGH
WHATEVER CHALLENGES WE HAVE
AHEAD. I DO HAVE A LOT OF
EXPERIENCE IN IN THIS REALM.
THINKING TO DANIEL'S COMMENT
ABOUT IDIOSYNCRATIC, ALL THE
FUNDING SYSTEMS AND STRUCTURES
AND RULES AND REGULATIONS THAT
WE OPERATE WITHIN. AND, AND I
KNOW THERE'S FOLKS BEHIND ME
WHO HAVE SO MUCH EXPERTISE IN
ALL OF THESE DIFFERENT RULE SETS
THAT WE HAVE TO FIND A WAY
THROUGH. I'M LOOKING FORWARD TO
CONTINUING TO FIND CREATIVE WAYS
TO WORK WITH WITHIN OUR CITY
DEPARTMENTS, JUST AS WE TALKED
ABOUT WITH OTHER FUNDING
PARTNERS, TO TRY AND IMPROVE OUR
COORDINATION, COLLABORATION, AND
DO BETTER WITH WHAT WE HAVE.
AND, YOU KNOW, TRY TO IMPROVE
TRANSPARENCY. WE'VE MADE GREAT
STRIDES IN THE LAST COUPLE OF
YEARS. WE HAVE REALLY CHANGED
THE WAY THAT WE REPORT ON OUR
INVESTMENTS. WE HAVE THIS NEW
GREAT DASHBOARD. WE HAVE A GREAT
MAP OF ALL OF OUR INVESTMENTS.
WE'LL KEEP LOOKING AT WAYS THAT
WE CAN TELL THE STORY OF THE
OFFICE OF HOUSING AND ALL OF THE
WORK OF OUR GREAT PARTNERS TO
THE PUBLIC AND TO OUR ELECTED
OFFICIALS
-- THANK YOU SO MUCH FOR THAT. I
APPRECIATE THAT, AND,
COLLEAGUES, I WILL TURN TO YOU
TO SEE IF THERE ARE ANY FINAL
COMMENTS OR QUESTIONS, AND
OTHERWISE, WE WILL BE MOVING ON
TO OUR NEXT ITEM OF BUSINESS.
ALL RIGHT. THANK YOU SO MUCH,
ACTING DIRECTOR LARSON. WE LOOK
FORWARD TO. WELL, YOU'RE GOING
TO BE AT THE TABLE AGAIN IN FIVE
MINUTES OR, YOU KNOW, FOR THE
NEXT PRESENTATION. BUT WE LOOK
FORWARD TO HAVING YOU BACK IN
SEPTEMBER TO VOTE ON YOUR
CONFIRMATION. THANK YOU. AND
THANK YOU. I WAS GOING TO SAY
NICOLE. THANKS,
-- [LAUGHTER]
-- NICOLE ALL RIGHT. WE WILL NOW
MOVE ON TO OUR NEXT ITEM OF
BUSINESS. WILL THE CLERK PLEASE
READ ITEM TWO INTO THE RECORD.
-- AGENDA ITEM TWO OFFICE OF
HOUSING PRESENTATION ON ANNUAL
REPORTS FOR BRIEFING AND
DISCUSSION.
-- ALL RIGHT. FANTASTIC. SO WE
ARE GOING TO WELCOME OUR
CONTINUED PRESENTER, ACTING
DIRECTOR KELLY LARSON. AND THEN
WE ARE GOING TO HAVE SOME STAFF
FROM THE OFFICE OF HOUSING JOIN
US AT THE TABLE. AND AS WE'RE
GETTING THEM SET UP, I WILL JUST
SHARE A LITTLE BIT OF PREAMBLE
AND CONTEXT FOR FOR FOLKS HERE.
SO THE OFFICE OF HOUSING, AS WE
KNOW, PRESENTS OR COMPLETES
ANNUAL REPORTS AND PRESENTS
THOSE TO COUNCIL. WE KNOW THAT
RIGHT NOW OUR HOUSING PROVIDERS
ARE FACING MANY CHALLENGES IN
THE CITY. AND TODAY WE HAVE AN
OPPORTUNITY TO HEAR FROM O
PROGRESS ON OUR HOUSING LEVY,
PROGRESS ON OUR INVESTMENTS AND
OUR WORK TO CONTINUE MAKING
SEATTLE A MORE AFFORDABLE PLACE
TO LIVE THROUGH THE INVESTMENTS
AT THE OFFICE OF HOUSING. SO
EVERY YEAR, O O PRESENTS ON OUR
ANNUAL INVESTMENTS IN HOUSING
LEVY, THE MANDATORY HOUSING
AFFORDABILITY, RELIGIOUS LANDS
AND MFT O WILL BE PRESENTING AND
COMPLETING THE MFT REPORT IN
SEPTEMBER, SO TODAY'S
PRESENTATION WILL COVER THE
OTHER THREE REPORTS AS WELL AS
INSIGHTS FROM STATEMENTS OF
LEGISLATIVE INTENT THAT O WAS
HAD DUE TO COUNCIL EARLIER THIS
YEAR. SO COLLEAGUES, I WILL HAVE
THE THE TEAM AT O INTRODUCE
THEMSELVES AND PRESENT. AND THEN
I ASK THAT YOU HOLD YOUR
QUESTIONS UNTIL THE END SO THAT
WE CAN HAVE A ROBUST
CONVERSATION AFTER WE RECEIVE
ALL OF THE INFORMATION FROM THE
OFFICE. I KNOW I AM LOOKING
FORWARD TO DISCUSSING THE
PROGRESS THAT WE HAVE ON OUR
HOUSING LEVY. IN PARTICULAR,
GIVEN THAT WE'VE SEEN SUCH AN
INCREASED NEED IN OUR COMMUNITY
AND ALSO LEARNING MORE ABOUT
SOME OF THE PIVOTS THAT THE
OFFICE OF HOUSING IS MAKING TO
ENSURE THAT WE ARE INCENTIVIZING
THE RIGHT KINDS OF UNITS TO COME
ONLINE. SO I THINK IT'S GOING TO
BE A FANTASTIC CONVERSATION WITH
THAT. I WILL PASS IT OVER TO THE
OFFICE OF HOUSING AND ASK THAT
OUR PRESENTERS PLEASE UNMUTE AND
INTRODUCE YOURSELVES AND BEGIN
WHEN READY.
-- I HAVE BEEN THOROUGHLY
INTRODUCED, AND I WILL HAND IT
OVER TO NATHAN. PLEASE.
-- HELLO, I'M NATHAN ANTONIO,
I'M A POLICY PLANNING AND DATA
ANALYST IN THE OFFICE OF
HOUSING.
-- HI. GOOD AFTERNOON. AMANDA
LICORICE. I'M A HOMEOWNERSHIP
SPECIALIST AT THE OFFICE OF
HOUSING.
-- HEY THERE, MARIA DEWEES,
STRATEGIC ADVISOR WITH THE
POLICY AND PLANNING TEAM
-- GREAT. WE HAVE SUCH A GOOD
CREW WHO'S HERE AND MANY OTHERS
WHO PERFORM ALL THE IMPORTANT
WORK AND CONTRIBUTE TO THESE
REPORTS AND PRESENTATIONS. MANY
THANKS TO OUR O TEAM FOR BEING
HERE AND FOR THOSE WHO ARE
STANDING US UP TO GET HERE. I'LL
START WITH AN OVERVIEW OF O
ANNUAL REPORTS AND CONTEXT FOR
WHAT WE FACED IN 2025. THEN
NATHAN WILL PROVIDE A
COMPREHENSIVE VIEW OF O
INVESTMENTS AS HE COVERS THE
2025 ANNUAL INVESTMENTS AND
HOUSING LEVY REPORT. WE'LL ALSO
DISCUSS THE 2025 ANNUAL REPORT,
AND AMANDA WILL HIGHLIGHT MH
ACHIEVEMENTS FOR HOME OWNERSHIP.
FINALLY, WE'LL SHARE HOW O HAS
IMPLEMENTED SOME CREATIVE
SOLUTIONS IN THIS CHALLENGING
ECONOMIC AND BUDGET LANDSCAPE
AND THROUGHOUT THE PRESENTATION
WILL INCORPORATE SOME OF THE
INFORMATION FROM THE TWO
STATEMENTS OF LEGISLATIVE INTENT
THAT WE RESPONDED TO THIS YEAR.
AS. LIOHOO3SA, WHICH REQUESTED
UPDATES TO THE SEATTLE HOUSING
INVESTMENT PLAN AND SLI OHOO4SB,
WHICH REPORTED ON OPERATIONS
STABILIZATION FUNDING. SO WE'LL
START WITH AN OVERVIEW OF 2025.
WE PROVIDE FOUR ANNUAL REPORTS,
THE ANNUAL INVESTMENTS AND
HOUSING LEVY REPORT, MANDATORY
HOUSING AFFORDABILITY, RELIGIOUS
LANDS AND MULTIFAMILY TAX
EXEMPTION REPORTS ARE TYPICALLY
DUE IN JUNE AND REPORT ON THE
PRIOR CALENDAR YEAR. THIS YEAR
ALREADY NOTED, MFTE WILL COME IN
SEPTEMBER. TODAY WE'LL BE
SPEAKING TO OUR ANNUAL
INVESTMENTS AND HOUSING LEVY
REPORT AND THE MH REPORT. THE
RELIGIOUS LANDS REPORT IS
AVAILABLE ON THE WEBSITE FOR
THOSE WHO ARE INTERESTED, ALL
THE PROJECTS THAT ACCESS THAT
DENSITY BONUS ARE ALSO REPORTED
IN OUR ANNUAL INVESTMENTS AND
HOUSING LEVY REPORT. SINCE THESE
PROJECTS ON RELIGIOUS LANDS
REQUIRE FUNDS THE INVESTMENTS IN
HOUSING LEVY REPORT IS A
COMPREHENSIVE VIEW OVER THE
COURSE OF THE YEAR OF WHAT O. H
HAS BEEN DOING. IT INCORPORATES
ALL OUR MAJOR PROGRAMS RENTAL
HOUSING, OPERATING, MAINTENANCE
AND SERVICES, HOMEOWNERSHIP,
HOMELESSNESS, PREVENTION AND
HOUSING STABILITY SERVICES, AND
HOME REPAIR AND WEATHERIZATION.
IT REPORTS ON HOW FUNDING FROM
THE SEATTLE HOUSING LEVY
JUMPSTART PAYROLL EXPENSE, TAX
M, AYE AND OTHER PUBLIC FUNDING
HAS BEEN SPENT. HISTORICALLY, O.
H HAS ALWAYS ACHIEVED ITS
HOUSING LEVY GOALS. ACHIEVING
THESE GOALS IS VERY, VERY
IMPORTANT AND CONTINUES TO
SERVE. BE A. BE OUR NORTH STAR.
HERE YOU CAN SEE THE TWO PRIMARY
FUNDING SOURCES FOR THE OFFICE
OF HOUSING SPANNING THE PERIOD
2024 TO 2030. THE LEFT BAR SHOWS
THE SPEND PLAN FOR THE SEATTLE
HOUSING LEVY WITH $138 MILLION
BUDGET. RENTAL PRODUCTION IS THE
LARGEST CATEGORY, AND I WILL
NOTE THAT IS RENTAL PRODUCTION.
BOTH NEW PRODUCTION AND
PRESERVATION SO THAT COMPRISES
78% OF LEVY FUNDS. OMS FOLLOWS
AT 13%, HOME OWNERSHIP AT 6%,
AND HOMELESSNESS PREVENTION AT
3%. THE RIGHT BAR SHOWS JUMP
START PAYROLL EXPENSE TAX, WITH
$142 MILLION ANNUAL BUDGET
RENTAL PRODUCTION AND O. M S ARE
BOTH AT 46%. SO YOU SEE A
DIFFERENT TYPE OF SPLIT IN THIS
FUND SOURCE. HOMEOWNERSHIP IS AT
6%, AND HOMELESSNESS PREVENTION
2%. FOR OTHER FUND SOURCES. OUR
2026 PROJECTION FOR MH IS 20
MILLION, AND ALL OTHER SOURCES
IS 43 MILLION. THIS BUCKET OF
OTHER SOURCES INCLUDES A VARIETY
OF SOURCES, INCLUDING STATE
WEATHERIZATION GRANTS, INTEREST,
EARNINGS, FEDERAL HOME FUNDS,
PROGRAM INCOME, LOCAL OPTION,
AND MORE. THE SEATTLE HOUSING
LEVY REMAINS FOUNDATIONAL TO HHS
BUDGET, AND JUMPSTART HAS BECOME
A MAJOR FUND SOURCE FOR O THAT
IS INCREASINGLY NEEDED FOR OMS
AND CREATIVE CAPITAL AND
STABILIZATION STRATEGIES O HAS
ALWAYS PRIORITIZED INVESTMENTS
FOR THOSE WHO ARE MOST IN NEED,
AND THE HOUSING LEVY REQUIRES
THAT AT LEAST 60% OF TOTAL LEVY,
RENTAL, PRODUCTION AND
PRESERVATION AND OMS FUNDS SERVE
HOUSEHOLDS WITH THE LOWEST
INCOMES, OR THOSE EARNING LESS
THAN 30% OF AREA MEDIAN INCOME.
AS OF 2025, O HAS COMMITTED 51%
OF OUR LEVY FUNDS, OR 102
MILLION TO HOMES FOR HOUSEHOLDS
WITH EXTREMELY LOW INCOMES AS
FUTURE RENTAL INVESTMENTS AND
COMMITMENTS ARE MADE, THIS
PERCENTAGE WILL CONTINUE TO RISE
TO MEET THE REQUIREMENT 2025 WAS
A CHALLENGING YEAR FOR FOR
AFFORDABLE HOUSING. WE SAW
FEDERAL FUNDING WITHDRAWN, WHICH
WAS A LOSS TO OUR REGION OF
ABOUT $25 MILLION FOR EMERGENCY
HOUSING VOUCHERS. WE EXPERIENCED
A REDUCTION OF NEW CONTINUUM OF
CARE OPERATING SUPPORT OVER THE
LAST SEVERAL YEARS. AND OF
COURSE, THE THREATS REMAIN ON
THE HORIZON. WE CREATED. THIS
CREATED TREMENDOUS UNCERTAINTY
IN THE SECTOR, ESPECIALLY FOR
SUPPORTIVE HOUSING OPERATING
COSTS SUCH AS INSURANCE AND
MATERIALS AND LABOR TO MAINTAIN
AND REPAIR. HOMES HAVE CONTINUED
TO RISE. INEQUALITY HAS
CONTINUED TO GROW, INCREASING
HOMEOWNER HOUSEHOLD INCOMES
CONTINUE TO PUSH SEATTLE'S AREA
MEDIAN INCOME UPWARD, WHICH IN
TURN RAISED THE INCOME
RESTRICTED RENT LIMITS BEYOND
WHAT MANY LOW INCOME FAMILIES
CAN AFFORD. WITH ALL THIS, OUR
LOCAL FUNDING SOURCES ARE
STRAINED TO ADDRESS MULTIPLE
CHALLENGES. THROUGH THESE
CHALLENGES, O IS COMMITTED TO
OUR MISSION OF PERMANENTLY
AFFORDABLE INCOME, RESTRICTED
RENTAL HOUSING AND
HOMEOWNERSHIP. IT'S THE
FOUNDATION OF OUR WORK, AND
IT'S ACHIEVED THROUGH DIRECT
INVESTMENT POLICY AND REGULATORY
REQUIREMENTS SUCH AS
INCLUSIONARY ZONING. IN SEATTLE,
APPROXIMATELY 7% OF ALL HOUSING
UNITS IN THE MARKET AND 15% OF
OCCUPIED RENTAL HOUSING UNITS
ARE INCOME AND RENT RESTRICTED.
THERE ARE OTHER CITIES, LIKE THE
CITY OF BOSTON THAT ACHIEVE MUCH
HIGHER PERCENTAGES, AND
CERTAINLY CITIES IN EUROPE ARE
STRIVING FOR HIGHER AMOUNTS
HERE. AND THIS IS AN INTERESTING
NEW METRIC THAT WE ARE LOOKING
AT AT THE OFFICE OF HOUSING. WE
BELIEVE A HEALTHY STOCK OF
INCOME AND RENT RESTRICTED HOMES
THROUGHOUT SEATTLE IS THE
FOUNDATION OF AFFORDABILITY FOR
LOW INCOME INDIVIDUALS AND
FAMILIES, AND ALLOWS OUR CITY TO
CONTINUE TO BE DIVERSE AND
INCLUSIVE, MAKING IT POSSIBLE
FOR PEOPLE OF ALL INCOMES TO
LIVE EQUITABLY AND ACCESS
OPPORTUNITY. IN 2025, WE
RESPONDED TO THE CHALLENGES WE
HEARD FROM OUR PROVIDERS WITH
CREATIVE SOLUTIONS TO PRESERVE
AND PREVENT LOSS OF UNITS FROM
OUR AFFORDABLE HOUSING PORTFOLIO
AS MUCH AS WE COULD. SHIFTING
FOCUS TOWARD THE LONG TERM
FINANCIAL AND PHYSICAL
SUSTAINABILITY OF OUR BUILDINGS.
I'LL HAND IT TO NATHAN.
-- AGAIN. ONCE AGAIN, MY NAME IS
NATHAN ANTONIO. I'M AN ANALYST
IN THE OFFICE OF HOUSING. IN
THIS SECTION, I'LL BE
PRESENTING INFORMATION ABOUT OUR
2025 ANNUAL INVESTMENTS AND
HOUSING LEVY REPORT THE 2023
SEATTLE HOUSING LEVY HAS A SEVEN
YEAR PERIOD RUNNING FROM 2024
THROUGH 2030, AND WE HAVE NOW
COMPLETED TWO YEARS AND ARE IN
THE THIRD AYE, WHICH IS ON TRACK
TO ACHIEVE OUR 2023 HOUSING LEVY
GOALS IN JUST THE TWO YEAR SPAN
OF 2024 THROUGH 2025, WE HAVE
INVESTED TO BUILD OR PRESERVE
1646 AFFORDABLE RENTAL HOMES,
WHICH IS ABOUT 47% OF OUR 3516
UNIT GOAL. WE'VE ALSO PROVIDED
SUPPORTS FOR 712 UNITS OR TAKING
US TO 62% OF OUR SEVEN YEAR GOAL
OF 1156 UNITS. AND WE HAVE
INVESTED TO BUILD HOMES AND
ASSIST 126 HOMEOWNERSHIP
HOUSEHOLDS, WHICH PUTS US AT 34%
OF OUR SEVEN YEAR GOAL. MOVING
ON TO RENTAL HOUSING, OUR RENTAL
HOUSING PROGRAM FUNDS PRODUCTION
AND PRESERVATION OF RENTAL
HOUSING THAT WILL SERVE LOW
INCOME SEATTLE RESIDENTS AT OR
BELOW 60% OF AREA MEDIAN INCOME,
OR AMI, FOR A MINIMUM OF AT
LEAST 50 YEARS IN 2025, OVER
$133 MILLION WAS AWARDED THROUGH
THIS PROGRAM. THESE AWARDS WENT
TO FOUR NEW BUILDINGS WITH 550
UNITS, NEARLY HALF OF THEM BEING
TWO BEDROOM, FAMILY SIZED UNITS,
AS WELL AS EIGHT CAPITAL
PRESERVATION PROJECTS WITH 782
UNITS IN TOTAL AND NINE
BUILDINGS RECEIVED NEW DEBT
RESTRUCTURING LOANS, WHICH WE
WILL DISCUSS IN MORE DETAIL
LATER IN THE PRESENTATION THE
OPERATING, MAINTENANCE AND
SERVICES OR OMS PROGRAM PROVIDES
OPERATING AND SERVICES SUBSIDIES
FOR BUILDINGS THAT SERVE
EXTREMELY LOW INCOME AND
FORMERLY HOMELESS RESIDENTS.
THESE SUBSIDIES HELP PAY FOR
NECESSARY OPERATING EXPENSES
SUCH AS MAINTENANCE AND REPAIRS,
BASIC UTILITIES, SUPPORTIVE
SERVICES FOR RESIDENTS AS WELL
AS STAFF WAGES, AND THEY ARE
SORELY NEEDED TO SUPPLEMENT THE
LOW RENTS PAID BY THESE
RESIDENTS WITH EXTREMELY LOW
INCOMES. SUBSIDY AWARDS ARE MADE
FOR A MINIMUM TERM OF 20 YEARS
TO DEMONSTRATE THE CITY'S
COMMITMENT TO SUPPORTING THESE
DEEPLY AFFORDABLE HOMES IN THE
LONG TERM, WHICH IS CRITICAL TO
SECURING OTHER, LEVERAGING FUNDS
AND KEEPING PEOPLE HOUSED. THERE
WERE THREE NEW OEM SUBSIDY
AWARDS MADE IN 2025. TWO WERE
FINALIZED FOR THE 2016 HOUSING
LEVY, SO THEY WERE LIKE THE LAST
TWO THAT WE MADE UNDER THE
PREVIOUS LEVY. THOSE PROJECTS
TOTALED 204 UNITS, AND THEIR
COMBINED FIRST YEAR COMMITMENT
IS ABOUT $2,250,000. THE OTHER
WAS A PRELIMINARY COMMITMENT
THAT WOULD BE THE FIRST UNDER
THE 2023 HOUSING LEVY TO THE
FIRST SUCH PROJECT TO COME
ONLINE, WITH 120 UNITS AND $3.6
MILLION IN SUPPORT IN THAT FIRST
YEAR, WHICH ALSO HAS OR HAD
$17.9 MILLION IN ONGOING SUBSIDY
COMMITMENTS IN 2025, SUPPORTING
ABOUT 2400 UNITS. ALMOST ALL OF
THEM PERMANENT SUPPORTIVE
HOUSING. MOVING ON TO
HOMEOWNERSHIP, THE HOMEOWNERSHIP
PROGRAM FUNDS THE DEVELOPMENT OF
NEW RESALE RESTRICTED,
PERMANENTLY AFFORDABLE HOMES
THAT WILL BE SOLD TO LOW INCOME,
FIRST TIME HOME BUYERS AT
AFFORDABLE PRICES TO BE
MAINTAINED FOR A MINIMUM OF 50
YEARS. IT ALSO INCLUDES FUNDING
FOR DOWN PAYMENT ASSISTANCE,
AGAIN ALSO FOR LOW INCOME, FIRST
TIME HOME BUYERS, AS WELL AS
FORECLOSURE
-- [LAUGHTER]
-- PREVENTION IN 2025, $15
MILLION WAS AWARDED THROUGH OUR
HOMEOWNERSHIP PROGRAM FOR 105
RESALE RESTRICTED, PERMANENTLY
AFFORDABLE HOMES. THIS INCLUDES
TWO SURPLUS CITY OWNED SITES IN
THE RAINIER VALLEY. AFFORDABLE
HOMEOWNERSHIP INITIATIVE, WHICH
TOGETHER WILL HAVE 24 NEW TWO
BEDROOM HOMES. ALL RIGHT, MOVING
QUICKLY NOW INTO HOMELESSNESS,
PREVENTION AND HOUSING STABILITY
SERVICES. THIS PROGRAM FUNDS,
SERVICES AND FINANCIAL
ASSISTANCE TO PREVENT
HOMELESSNESS, AS WELL AS TO
REHOUSE INDIVIDUALS AND FAMILIES
AFTER EXPERIENCING HOMELESSNESS.
IT ALSO SUPPORTS AFFORDABLE
HOUSING PROVIDERS AND HELPING
RESIDENTS BUILD SKILLS AND
CONNECT WITH OTHER SERVICES THAT
CAN HELP THEM STAY HOUSED. IN
2025, 900 HOUSEHOLDS
PARTICIPATED IN HOMELESSNESS,
PREVENTION AND RAPID REHOUSING
PROGRAMS FUNDED WITH 2.5 MILLION
HOUSING LEVY DOLLARS, WHICH ALSO
PROVIDED 3.1 MILLION IN RESIDENT
SERVICES FUNDING TO 12
AFFORDABLE HOUSING PROVIDERS
THAT TOGETHER SERVED ABOUT 4200
HOUSEHOLDS. AND LASTLY, WE HAVE
THE HOME REPAIR AND
WEATHERIZATION PROGRAM. THIS
PROGRAM ASSISTS HOMEOWNERS AT OR
BELOW 80% OF AMI WITH CRITICAL
HEALTH AND SAFETY REPAIRS TO
PRESERVE THEIR HOMES. THE
WEATHERIZATION PROGRAM FOCUSES
ON ENERGY CONSERVATION, INDOOR
AIR QUALITY, AND REDUCING
UTILITY COSTS FOR RENTERS AND
HOMEOWNERS. IN 2020, FIVE, OVER
$458,000 WAS PROVIDED IN HOME
REPAIR LOANS AND GRANTS TO
ASSIST 87 LOW INCOME HOMEOWNERS
AND $8.6 MILLION IN
WEATHERIZATION. GRANTS WERE MADE
TO SERVE 403 SINGLE FAMILY
HOMES, AS WELL AS EIGHT
MULTI-FAMILY BUILDINGS WITH OVER
900 AFFORDABLE APARTMENTS IN
THEM.
-- I WANT TO THANK NATHAN FOR
ALL THE AMAZING WORK HE DOES ON
THESE REPORTS. IT'S INCREDIBLE.
SO IT'S GREAT TO ALSO HAVE YOU
COME HERE AND PRESENT ALL THIS
INFORMATION AND BE HERE FOR ALL
THE TECHNICAL QUESTIONS THAT
SURFACE. NEXT, WE'RE GOING TO
SPEAK ABOUT MHA IN 2025. MHA IS
SEATTLE'S INCLUSIONARY ZONING
PROGRAM, WHERE CERTAIN NEW
DEVELOPMENTS MUST OFFER ON SITE
AFFORDABLE HOUSING OR PAY A FEE
IN LIEU IN 2025, OH RECEIVED $47
MILLION IN MHA PAYMENT
CONTRIBUTIONS, NEARLY DOUBLING
THE AMOUNT WE RECEIVED IN 2024.
WE AWARDED, FOR EXAMPLE, ON THE
SCREEN, 26.7 MILLION OF MHA FOR
THE BEACON CROSSING
DEVELOPMENTS, 125 UNIT BUILDING
LOCATED NEAR THE BEACON HILL
LIGHT RAIL STATION. IN 2025,
THERE WERE ALSO 86 MHA ON SITE
PERFORMANCE UNITS COMMITTED I'LL
SHARE A FEW KEY TAKEAWAYS FROM
THE MHA REPORT TO DATE, MHA
FUNDS HAVE BEEN AWARDED TO OVER
4600 AFFORDABLE UNITS, 343 MHA
PERFORMANCE HOMES HAVE BEEN
BUILT WITH ANOTHER 255
COMMITTED. DEVELOPMENT IN LOW
RISE ZONES HAS BEEN RELIABLY
STEADY OVER TIME, COMPRISING
ABOUT ONE THIRD OF TOTAL
PAYMENTS SINCE MHA WAS ADOPTED.
MANY BELIEVE THAT FUTURE
TOWNHOME DEVELOPMENT WILL SHIFT
FROM LOW RISE TO NEIGHBORHOOD
RESIDENTIAL ZONES, WHICH WAS
UPZONE WERE UP ZONED IN 2025
WITHOUT MHA REQUIREMENTS. THIS
IS ANOTHER BIG POTENTIAL CHANGE
ON THE HORIZON. ALTHOUGH WE HAVE
BOTH MHA COMMERCIAL AND
RESIDENTIAL, COMMERCIAL
DEVELOPMENT ONLY ACCOUNTS FOR
ABOUT ONE IN EVERY $10 OF MHA
PAYMENT CONTRIBUTIONS. AND NOW
AMANDA IS GOING TO SHARE MORE
ABOUT HOW MHA SUPPORTS
AFFORDABLE HOMEOWNERSHIP.
-- THANK YOU. KELLY. HI. MY NAME
IS AMANDA. I'M A HOMEOWNERSHIP
PROGRAM SPECIALIST AT. OH, I GET
TO TALK A LITTLE BIT MORE ABOUT
HOW MHA IS CREATING PERMANENTLY
AFFORDABLE HOMEOWNERSHIP UNITS
ACROSS THE CITY. SO FAR, $16
MILLION IN MHA PAYMENT FUNDS
HAVE BEEN USED TO BUILD 75 HOMES
IN PROJECTS IN NEIGHBORHOODS
LIKE PHINNEY RIDGE, SOUTH PARK,
CAPITOL HILL, BEACON HILL, AND
ANOTHER 38 HOMES IN THE
PIPELINE. THESE PROJECTS WERE
AWARDED THROUGH COMPETITIVE NOFA
ROUNDS TO STEWARDSHIP PARTNERS,
AND EACH HOME IS SOLD TO INCOME
ELIGIBLE FIRST TIME HOME BUYERS.
THE STEWARD STAYS CONNECTED TO
THE HOMES AND THE HOME BUYERS
FOR THE LIFE OF THE HOME.
INSTEAD OF PAYING INTO MHA, A
PRIVATE DEVELOPER CAN OPT FOR
MHA PERFORMANCE AND PROVIDE AN
AFFORDABLE HOME AS A PART OF A
MARKET RATE DEVELOPMENT. THESE
MHA PERFORMANCE HOMES ARE BUILT
RIGHT ALONGSIDE THE MARKET RATE
UNITS WITH EQUIVALENT FIXTURES
AND FINISHES. TO DATE, ONLY
THREE MHA PERFORMANCE HOMES HAVE
BEEN PURCHASED AT AN AFFORDABLY
CALCULATED SALES PRICE. HOWEVER,
WE HAVE 11 MORE HOMES IN THE
PIPELINE. MHA PERFORMANCE HOMES
ARE CREATED IN DEVELOPMENTS THAT
WOULD BE OUT OF REACH FOR LOW
INCOME HOME BUYERS AND HELP
DIVERSIFY NEIGHBORHOODS. FOR
EXAMPLE, THE OLIVE DEVELOPMENT
IS A 21 UNIT TOWNHOME PROJECT IN
BALLARD, BUILT BY SHELTER HOMES
WITH A UNIQUE DESIGN COVERED
PARKING AND COVERED PARKING. TWO
OF THE 21 HOMES WILL BE SOLD AS
MHA PERFORMANCE UNITS, EACH WITH
THREE BEDROOMS AND TWO
BATHROOMS. CURRENTLY, THE
AFFORDABLE SALES PRICE FOR A
THREE BEDROOM TOWNHOME IS
$359,000. THE OTHER 19 UNITS IN
THE PROJECT ARE LISTED AT
BETWEEN 800 AND 49 K AND
$979,000. OH, AND THE DEVELOPER
WILL PARTNER WITH HABITAT FOR
HUMANITY, WHO WILL SERVE AS A
LONG TERM STEWARD AND IDENTIFY
THE INCOME QUALIFIED FAMILIES
WHO WILL ULTIMATELY PURCHASE
THESE HOMES. THESE MHA
PERFORMANCE UNITS WILL CREATE
REAL ACCESS FOR FAMILIES THAT
WOULD OTHERWISE HAVE BEEN PRICED
OUT OF THIS DEVELOPMENT. AND
WITH THAT, I WILL TURN IT OVER
TO MARIA TO TALK ABOUT SOME OF
THE OTHER CREATIVE SOLUTIONS
THAT OW HAS IMPLEMENTED.
-- THANK YOU. MY NAME IS MARIA
DEWEES. I'M A STRATEGIC ADVISOR
WITH THE POLICY TEAM AT OW. IN
THIS SECTION, I'LL BE
DISCUSSING SOME CREATIVE
SOLUTIONS. OW! IMPLEMENTED IN
2025 TO ADDRESS EMERGING
CHALLENGES. LAST YEAR, THE
ANNUAL NOFA INCLUDED A FUNDING
CATEGORY FOR DEBT RESTRUCTURING
ON PROPERTIES THAT WERE
EXPERIENCING SIGNIFICANT
PERFORMANCE CHALLENGES. THIS
FUNDING HELPED NINE BUILDINGS TO
AVOID FORECLOSURE AND RESTORED
LONG TERM POSITIVE PROPERTY,
CASH FLOW. WE DID THIS BY PAYING
DOWN THE DEBT ON THESE
BUILDINGS, AND BY DOING THAT, WE
WERE ABLE TO ADJUST THE RENTS
DOWN TO MORE AFFORDABLE LEVELS
TO SERVE LOWER INCOME
HOUSEHOLDS. THIS WAS A WIN-WIN
FOR BOTH THE PROPERTY OWNERS AND
THE RESIDENTS, AND ENSURES THAT
WE CAN KEEP SERVING THOSE MOST
IN NEED OF AFFORDABLE HOUSING.
PEOPLE IN THE 30% AND 50% AMI
LEVELS AND AT RENTS THAT THEY
CAN AFFORD. WE ALSO UNDERWROTE
TO RIGHTSIZE OPERATING COSTS TO
REFLECT THE CURRENT COST,
ENVIRONMENT AND REPLENISH
BUILDING RESERVES. SOME
PROPERTIES ALSO REQUIRED
ADDITIONAL CAPACITY FROM A THIRD
PARTY CONSULTANT TO IMPROVE
BUILDING PERFORMANCE, AND THIS
WAS AN IMPORTANT AND NECESSARY
STEP TO PRESERVE THE OFFICE OF
HOUSING'S INVESTMENTS IN
AFFORDABLE HOUSING. THE OFFICE
OF HOUSING ALSO FUNDS OUR
PARTNERS OPERATING MAINTENANCE
AND SERVICES NEEDS. THE FIRST
ITEM ON THE SLIDE HAS TO DO WITH
WORKFORCE STABILIZATION. THESE
DOLLARS SUPPORT COMPENSATION FOR
STAFF WHO WORK AT PERMANENT
SUPPORTIVE HOUSING PROPERTIES.
IN 2025. THIS FUNDING SUPPORTED
WAGES AND BENEFITS OF 936 PSH
STAFF WORKING IN BUILDINGS
THROUGHOUT SEATTLE AT 11
DIFFERENT ORGANIZATIONS. THESE
WORKERS ARE VITAL TO ENSURING
RESIDENT WELL-BEING AND HOUSING
STABILITY. THEY SERVE OUR
VULNERABLE NEIGHBORS AND SUPPORT
SAFE COMMUNITIES THROUGH CASE
MANAGEMENT, CONNECTING RESIDENTS
TO RESOURCES, AND ARE OFTEN ON
CALL AT ALL HOURS. WE KNOW THESE
JOBS HAVE HAD HIGH TURNOVER, SO
THE WORKFORCE STABILIZATION
PROGRAM IS INTENDED TO ADDRESS
THOSE STAFFING RETENTION
CHALLENGES. THE OFFICE OF
HOUSING HAS ALSO RESPONDED TO
SECTOR WIDE CHALLENGES BY
PROVIDING URGENT OPERATING
SUPPORT. GRANTS CALLED US FOR
SHORT AND TO OUR AFFORDABLE
HOUSING PARTNERS TO FILL THE
MOST CRITICAL OPERATING GAPS. IN
2025, O RELEASED 26.2 MILLION IN
FLEXIBLE FUNDING FOR THINGS LIKE
MAINTENANCE AND REPAIRS, RENT
ASSISTANCE AND INSURANCE COSTS,
AND O SKILLED AWARDS BASED ON
THE HOUSING PROVIDERS PORTFOLIO
SIZE, 22 ORGANIZATIONS WERE
FUNDED WITH AN AVERAGE AWARD OF
$1.2 MILLION. THE FUNDING CAN
COVER EXPENSES BETWEEN JULY 2025
AND DECEMBER 2027. YOU CAN SEE
ON THIS CHART THAT THE BULK OF
US FUNDING WILL BE USED FOR
MAINTENANCE, RENT ASSISTANCE,
INSURANCE AND CAPITAL NEEDS. O
ALSO RECENTLY RELEASED AN RFQ
FOR CONSULTANT CONTRACTS FOR
$1.7 MILLION TO FUND PORTFOLIO
PRESERVATION PLANNING WORK. THIS
INITIATIVE IS INTENDED TO HELP
US UNDERSTAND ONGOING NEEDS AND
GAPS IN THE PORTFOLIO AND PLAN
FOR FUTURE NEEDS. CONSULTANTS
WILL HELP OUR HOUSING PARTNERS
WITH TAILORED, INDIVIDUAL
APPROACHES THAT ADDRESS THEIR
UNIQUE ORGANIZATIONAL NEEDS AND
CIRCUMSTANCES. THE CONSULTANT
WORK IS EXPECTED TO BEGIN THIS
FALL AND WINTER AND WILL
CONTINUE THROUGH NEXT YEAR.
LOOKING AHEAD, THE OFFICE OF
HOUSING ALSO RELEASED OUR ANNUAL
NOFA OF AT LEAST $110 MILLION
FOR THE RENTAL HOUSING PROGRAM.
FUNDING IS AVAILABLE FOR THREE
CATEGORIES NEW PRODUCTION,
REHABILITATION AND ACQUISITION,
AND WE ANTICIPATE RELEASING
ANOTHER NOFA LATER THIS YEAR FOR
DEBT RESTRUCTURING AND
PRESERVATION OF THE CURRENT
PORTFOLIO. THANK YOU SO MUCH FOR
HOSTING THIS DISCUSSION TODAY,
AND WE LOOK FORWARD TO ANSWERING
YOUR QUESTIONS.
-- THANK YOU SO MUCH. WE REALLY
APPRECIATE THE ENTIRE OFFICE OF
HOUSING TEAM FOR ALL OF THE WORK
THAT YOU DO. I KNOW WE'VE GOT A
FANTASTIC GROUP OF FOLKS IN
FRONT OF US, BUT I KNOW THERE'S
MANY MORE WHO WORKED ON THE WORK
OVER THE YEARS AND THE
PRESENTATION. SO I JUST WANT TO
EXPRESS MY GRATITUDE TO EACH OF
YOU. AND I'M GOING TO START WITH
SOME QUESTIONS THAT I HAVE, AND
THEN I'LL TURN TO MY COLLEAGUES
HERE ON COUNCIL, AND THEN I MAY
COME BACK WITH A FEW MORE
QUESTIONS HERE. AT THE END. I
WANT TO START WITH SLIDE 11. IF
YOU DON'T MIND. SO IT'S GREAT
TO HEAR THAT OFFICE OF HOUSING
IS ON TRACK. AND THAT'S HOW I
TAKE SLIDE 11. WHEN I'M LOOKING
AT THE PERCENTAGE, LET ME WAIT
TILL IT GETS PULLED UP HERE.
THERE WE GO. GREAT. SO, YOU
KNOW, IN THE FIRST TWO YEARS OF
THE HOUSING LEVY FOR 2024 AND
2025, BUILDING OR PRESERVING 47%
OF THE GOAL. BUT I ALSO AM
CURIOUS, I KNOW IN PREVIOUS
CONVERSATIONS THAT I'VE HAD WITH
O. H AND I THINK EARLIER THIS
YEAR IN COMMITTEE, IT WAS MY
UNDERSTANDING THAT WE WERE GOING
TO NEED WE WOULD POSSIBLY NEED
UP TO $40 MILLION A YEAR IN IN P
T DOLLARS FOR US TO REACH OUR
HOUSING LEVY GOALS. IS THAT
STILL THE CASE
-- WE ARE NOT QUITE READY TO
ANSWER THAT QUESTION. WE STARTED
TO HAVE SOME CONVERSATION ON THE
TEAM ABOUT HOW WE CAN LOOK AT
THE MODELING THAT WE DID, WHAT
HAS OCCURRED IN YEARS ONE AND
TWO OF THE HOUSING LEVY, WHAT WE
ANTICIPATE MIGHT BE AHEAD. THERE
ARE A FEW REASONS THAT THIS IS
HAPPENING. IT WAS REALLY
INTERESTING TO SEE, THANKS TO
NATHAN'S WORK, THAT THIS
TRAJECTORY OF SPENDING ON
HOUSING LEVY IS VERY SIMILAR TO
WHAT OCCURRED IN 2016. THE STAFF
TEAM IS VERY INTERESTED IN
ACHIEVING GOALS, AND THEY OFTEN
FRONT LOAD WORK AND INVESTMENTS.
IN THE EARLY PART OF THE HOUSING
LEVY CYCLE, BOTH BECAUSE YOU
HAVE THAT GOAL IN MIND, YOU WANT
TO ACHIEVE THE GOAL ALSO BECAUSE
IT ONLY GETS MORE EXPENSIVE
EVERY YEAR THEREAFTER. THE OTHER
PIECE AT PLAY HERE IS THAT AT
LEAST ONE OF THE PROJECTS THAT
WE FUNDED WITH THE HOUSING LEVY
IS A PARTIAL AWARD. SO WE SORT
OF COUNTED UNITS, BUT IT'S NOT
FULLY FUNDED YET, AND IT WILL
HOPEFULLY COME BACK THROUGH
LATER, LATER IN THE CYCLE. IT'S
A SUPPORTIVE HOUSING PROJECT. SO
AGAIN, ONE OF THE PROJECTS
THAT'S WAITING FOR OTHER
RESOURCES TO COME THROUGH SO
THAT IT CAN BECOME REAL, A
REALITY. BUT WE DO HAVE OTHER
MAJOR PROJECTS THAT ARE IN
PROCESS. THE LAKE CITY COMMUNITY
CENTER, THE MOUNT BAKER
REDEVELOPMENT, WHERE WE ARE
WAITING TO SEE FUND ASSIGNMENTS.
AND THOSE ARE REALLY SIGNIFICANT
INVESTMENTS FOR OUR OFFICE THAT
WILL LIKELY MAKE A DIFFERENCE IN
TERMS OF LEVY ALLOCATION, AS
WELL AS PET UTILIZATION AND
LEVERAGE OF OTHER SOURCES. SO
WE'D LIKE TO COME BACK TO YOU
ON THAT QUESTION. I'M NOT SURE
WHEN WHEN WE'LL KNOW MORE, BUT
WE'LL GET BACK TO THE TEAM AND
COME BACK TO YOU ON THAT. WE
ARE, I THINK, ALSO LOOKING AT WE
WANT TO BE MEASURING SEVERAL
ASPECTS OF WHAT WE MODELED
VERSUS WHAT IS ACTUALLY PLAYING
OUT. SO UNIT TYPOLOGY, PROJECT
TYPOLOGY PER UNIT COSTS, TOTAL
DEVELOPMENT COSTS. SO THOSE ARE
SOME OTHER THINGS THAT WE'RE
HOPING TO LOOK AT AND BRING
BACK.
-- THANK YOU. THAT'S HELPFUL. I
LOOK FORWARD TO THAT. AND I
THINK IT'S GOOD TO SEE YOU KNOW
AGAIN IT'S GOOD TO SEE THE THE
4,047% UNIT GOAL PIECE THERE.
AND I TOTALLY UNDERSTAND THE
FRONT LOADING. WE SEE THAT
ACROSS THE BOARD WITH OUR
LEVIES. AND YOU KNOW, WE KNOW
THAT COSTS HAVE BEEN RISING. SO
I THINK THAT CERTAINLY MAKES A
LOT OF SENSE. I DO WANT TO MAKE
SURE THAT WE GET THAT FOLLOW UP
INFORMATION AROUND THE LEVY
GOALS AND THE DOLLARS, AND
TOTALLY UNDERSTAND THINGS HAVE
CONTINUED TO SHIFT. BUT I WANT
TO MAKE SURE THAT WE ARE WE ARE
TRACKING THAT. AND I WANT TO
MAYBE I'LL TURN NOW TO SLIDE
18. I THINK IT IS, AND JUST SAY,
I THINK THIS IS. WAIT TILL WE
GET THERE MAYBE IT'S NOT THAT
ONE. WELL, WE'LL USE THIS ONE,
BUT I THINK WE HAD MAYBE ON A
DIFFERENT SLIDE IN THE CORNER, A
NUMBER AROUND THE 2026 MH AYE
PROJECTIONS. AND I I'VE LOST
WHAT SLIDE THAT IS. BUT IT.
SLIDE SIX. OKAY. SLIDE SIX HAS
THAT. WE'RE PROJECTING 2026 MH
AYE REVENUE AT 20 MILLION. AND
WE KNOW THAT IN 2025 THAT
REVENUE WAS 47 MILLION. AND SO I
JUST WANT TO MAKE SURE WE GET A
LITTLE BIT MORE INFORMATION ON
THAT STREAM. AND THE, YOU KNOW,
IT'S MY UNDERSTANDING THAT THERE
WERE SOME PROJECTS THAT
COMPLETED IN 2025. SO THAT MIGHT
HAVE BEEN MORE OF AN OUTLIER
NUMBER, IF YOU CAN SPEAK TO
THAT, I THINK THAT'D BE HELPFUL.
-- WE'VE TALKED ABOUT THE
DIFFICULTY OF PROJECTING MH A AS
IT RELIES SO MUCH ON THE REAL
ESTATE CYCLE. THAT IS ALSO
DIFFICULT TO PREDICT. THERE HAVE
BEEN SOME CONVERSATIONS IN THE
CITY BUDGET OFFICE AROUND
IMPROVING OUR PREDICTIONS OF MH
REVENUE AND THERE THEY'RE READY,
I THINK, FOR A LITTLE BIT MORE
ACCURACY. BUT IT'S IT'S REALLY
DIFFICULT FOR US TO TO REALLY
HIT THAT NUMBER, RIGHT. I THINK.
YEAH, YOU HEARD THE COMMENTER
EARLIER TALKING ABOUT SOME OF
THE LARGER PROJECTS THAT CAME
THROUGH IN 2025 THAT CONTRIBUTED
THESE HIGHER PAYMENT AMOUNTS.
AND THAT IS TRUE. THAT'S ALSO
HAPPENED IN OTHER YEARS WHERE
YOU'VE JUST, YOU KNOW, YOU'VE
SEEN DIFFERENT TYPES OF
DEVELOPMENT ACTIVITY THAT HAVE
CONTRIBUTED HIGHER AMOUNTS OF MH
AYE SO THIS IS DIFFICULT. WE
FEEL THIS IS A VERY CONSERVATIVE
PROJECTION. THIS IS THE 20
MILLION IS WHERE WE LANDED FOR
HOUSING LEVY MODELING AS WELL,
TO ATTEMPT TO PROJECT OUR
LEVERAGE OF OTHER CITY SOURCES.
IT'S IT'S JUST CONSERVATIVE.
AND I DON'T HAVE A BETTER
ANSWER ON THAT AT THIS TIME. BUT
THE CITY BUDGET OFFICE IS AWARE
OF THIS ISSUE, AND THEY'VE BEEN
THEY'VE BEEN TASKED WITH TRYING
TO IDENTIFY SOME BETTER METHOD
METHODS TO PROJECT MH AYE.
-- OKAY. I THINK THAT'S
HELPFUL. AND THEN I THINK IT'S
MY UNDERSTANDING, ARE WE AT 7
MILLION IN THE DOOR THIS YEAR
FOR MH AYE?
-- SO THE LAST NUMBER I SAW WAS
JUST OVER NINE.
-- GOT IT. THANK YOU. I TRUST
THAT YOUR NUMBERS ARE MORE
RECENT THAN MINE. I THINK WE HAD
LOOKED AT THE MAYBE THE CLOSE OF
Q2.
-- SO THAT'S RIGHT. IT'S ALWAYS
CHANGING.
-- YEAH. THAT'S HELPFUL.
-- AND IT MAY BE DIFFERENT THAN
MINE NOW, BUT THAT'S THE LAST
NUMBER I SAW, I BELIEVE.
-- GOT IT. AND I THINK IT'S I
ASK, I KNOW IT'S SOMETHING WE'VE
HAD CONVERSATIONS ABOUT IN THE
PAST, AND I THINK IT'S ONE OF
THE THINGS I JUST HAVE MY EYE ON
WITH SORT OF A CONCERN AROUND
THE CHANGES IN THE MARKET AND
THE WAY THAT THE CHANGES IN
MARKET RATE HOUSING COULD
POTENTIALLY IMPACT. MH AYE
REVENUE, JUST AS IS SEEING THAT
PERMITS ARE DOWN. AND WE HAVE A
LOT OF WORK TO DO, I THINK, AS A
CITY TO MAKE SURE THAT WE ARE
SUPPORTING OUR AFFORDABLE
HOUSING WITH THE WORK THAT
YOU'VE ALREADY OUTLINED TODAY,
AND TO MAKE SURE THAT WE'RE
CONTINUING TO GROW THE MARKET
RATE PRODUCTION AND TO STRIKE
THE RIGHT BALANCE FOR US AS A
CITY. SO THAT'S CERTAINLY
SOMETHING THAT OUR OFFICE
CONTINUES TO BE INVESTED IN, AND
WE LOOK FORWARD TO ONGOING
PARTNERSHIP WITH OFFICE OF
HOUSING ON THAT WORK. I WANT TO
TURN NOW TO THE I WANT TO SAY
IT'S ONE OF YOUR LAST SLIDES
AND COMMENTS AND COLLEAGUES.
I'VE JUST GOT TWO MORE
QUESTIONS, AND THEN I'LL BE
TURNING TO YOU ALL. IF WE CAN GO
TO THE 2027 NOFA LET'S SEE HERE.
MAYBE IT'S THE LAST SLIDE. I
THINK THIS IS WHERE WE WERE
TALKING ABOUT THIS. MAYBE IT WAS
JUST IN YOUR COMMENTS AT THE
END. YOU KNOW, I BELIEVE THAT
THIS NOFA THAT'S OUT RIGHT NOW
DOES NOT INCLUDE ANY PET
DOLLARS. AND SO CAN YOU JUST
SHARE MORE ABOUT AND I THINK YOU
MENTIONED THE PLANS FOR A SECOND
NOFA LATER ON IN THE YEAR. CAN
YOU SHARE MORE ABOUT WHAT WE
MIGHT ANTICIPATE TO SEE THERE
AND HOW THAT REPRESENTS THE
LEARNING THAT YOU'VE DONE OVER
THE LAST YEAR WITH THE
STABILIZATION INVESTMENTS?
-- YES. SO WE'VE HAD THERE'S
ALWAYS AND AS THESE ARE
UNPRECEDENTED TIMES. THANK YOU,
COUNCILMEMBER RINCK, THIS IS A
VERY CHALLENGING YEAR FOR THE
BUDGET AND DOING THE BEST WE CAN
TO PLAN FOR MITIGATING POTENTIAL
CUTS AND ALSO CONTINUING TO
SUPPORT THE EXISTING PIPELINE
AND INVESTMENTS THAT WE NEED TO
MAKE NOW. SO I THINK IT'S A
CONSTANT BATTLE TO STRIKE THE
RIGHT BALANCE. THERE'S A
SEQUENCING THAT HAPPENS WHERE WE
RELEASE OUR NOTICE OF FUNDING
AVAILABILITY IN JUNE, AND WE
HAVE TO MAKE OUR BEST ASSESSMENT
OF AVAILABLE FUNDS AT THAT TIME
TO RELEASE PUBLICLY. SO WE
RELEASED 110 MILLION IN JUNE
THAT INCLUDED THE HOUSING LEVY
AND SOME MH AYE FUNDS. WE'VE
ALSO CLEARLY STATED THAT WE HAVE
26 MILLION OF JUMPSTART PET
FUNDS THAT ARE IN A FEDERAL
MITIGATION FUND, HOLD, AND WE
HAVE $6 MILLION JUMPSTART,
PAYROLL EXPENSE TAX, RENTAL
ASSISTANCE OBLIGATION, AND $5
MILLION JUMPSTART PAYROLL
EXPENSE, TAX REPARATIONS,
OBLIGATION. WE HAVE BEEN
RELEASED 20 MILLION TO COMMIT TO
DEBT RESTRUCTURING AND OR THE
CURRENT OPEN NOFA. SO THAT WILL
BE WE'LL WE'LL SEE WHAT COMES
IN WITH THIS CURRENT NOFA. AND
THEN ADVERTISE THE PROPER AMOUNT
OF JUMPSTART PAYROLL EXPENSE TAX
AVAILABLE FOR THE DEBT
RESTRUCTURING OFFERING A LITTLE
BIT LATER IN THE FALL.
-- THANK YOU FOR THAT. AND I
JUST WANT TO MAKE SURE I GOT THE
COMMENT AT THE END. I THINK
IT'S REALLY HELPFUL THAT THE 20
MILLION COULD GO EITHER TOWARDS
THE EXISTING NOFA THAT'S OPEN
RIGHT NOW BASED ON WHAT
APPLICATIONS COME IN AND THE
PROJECTS COMPETITIVENESS DEMAND.
OR IT COULD GO INTO THE DEBT
RESTRUCTURING LATER ON THIS
YEAR. THAT'S RIGHT. FANTASTIC.
THANK YOU FOR THAT. I REALLY
APPRECIATE THAT. AND COLLEAGUES,
I WILL TURN TO YOU FOR QUESTIONS
VICE CHAIR LYNN, YOU'RE
RECOGNIZED.
-- THANK YOU CHAIR. I'VE GOT A
FEW QUESTIONS OF ONE, AND WE'VE
SPOKEN ABOUT THIS BEFORE IN
TERMS OF OUR GOALS AND
DESCRIBING THE GOALS IN TERMS OF
UNITS VERSUS LIKE PEOPLE OR
BEDROOMS AND JUST WANTING TO,
AGAIN, YOU KNOW, I'M EXCITED
THAT THERE, YOU KNOW, HAS BEEN
THIS ONGOING EFFORT TO HAVE
LARGER FAMILY SIZED UNITS AND
DON'T WANT SORT OF PREVIOUS
SORT OF GOALS THAT WERE JUST
BASED ON UNITS TO SORT OF HOLD
UP THAT WORK OR, YOU KNOW,
INADVERTENTLY FOR US TO BE SORT
OF DINGED BY THE FACT THAT LIKE
WE'RE SERVING MORE PEOPLE WITH
LARGER UNITS, BUT IT'S, YOU
KNOW, MAYBE LESS UNITS THAN A
STUDIO. SO COULD YOU JUST TALK
ABOUT THE LATEST OF ANY EFFORTS
WITH OTHER FUNDING PARTNERS,
STATE PARTNERS TO START TO
TRANSITION? HOW WE TALK ABOUT
OUR GOALS IS WHAT WOULD WE NEED
TO DO TO START TO KIND OF HAVE
A, A TRANSITION LIKE CALCULATOR
THAT SHOWS HERE'S, HERE'S HOW
MANY PEOPLE WE THOUGHT WE WERE
GOING TO SERVE IN TERMS OF, YOU
KNOW, 3100 UNITS, YOU KNOW, HOW
HOW MANY WERE STUDIOS VERSUS,
YOU KNOW, HOW MANY PEOPLE WE CAN
SERVE WITH MULTIFAMILY UNITS?
AND IF THERE'S ANYTHING WE NEED
TO DO IN TERMS OF LIKE THE
UPCOMING STATE LEGISLATIVE
SESSION TO SORT OF HAVE
SOMETHING IN SORT OF STATE
PRIORITIES, TO ALSO KIND OF
RECOGNIZE THAT, YOU KNOW, UNITS
SORT OF INADVERTENTLY
PRIORITIZES THESE STUDIOS
-- WE HAVE HAD SOME
CONVERSATIONS. IT'S, IT'S NOT A,
IT'S NOT AS CURRENT AS SOME OF
OUR OTHER CONVERSATIONS, BUT WE
HAVE SPOKEN WITH SOME OF OUR
OTHER PUBLIC FUNDING PARTNERS
ABOUT THIS CHALLENGE. AND YOU'LL
NOTE IN THE ACTUAL REPORT. SO
THIS IS A HIGH LEVEL SUMMARY
THAT'S BEEN PROVIDED. BUT IN
THE REPORTS WE DO TALK ABOUT
BEDROOMS FUNDED. CORRECT. NATHAN
-- POTENTIALLY HOW MANY PEOPLE
COULD BE HOUSED. YES.
-- SO THAT IS AN IMPROVEMENT
THAT'S BEEN MADE. SO WE
REPORTED THE BEDROOMS AS WELL AS
THE POTENTIAL NUMBER OF PEOPLE
THAT CAN BE HOUSED WITH THESE
RESOURCES. WE'RE TRYING TO
BRIDGE. SO MOVING FROM A PURE
ACCOUNTING OF UNITS TO MORE
TALKING ABOUT THE ACTUAL PEOPLE
LIVING IN THESE HOMES, AND
PERHAPS THIS PRESENTATION WILL
LOOK DIFFERENT NEXT YEAR. WHEN
WE TALK ABOUT THE HIGH LEVEL,
MAYBE THE NUMBERS WILL BE
DIFFERENT. OUR COLLEAGUES AT
KING COUNTY HAVE ALSO STARTED
LOOKING AT THIS DIFFERENTLY,
BECAUSE WHEN YOU DO A PER UNIT
COST ON A THREE BEDROOM, IT'S
VERY DIFFERENT THAN A PER UNIT
COST ON A STUDIO. BUT WHEN WE
TALK ABOUT IT PER BEDROOM,
THAT'S REALLY DIFFERENT. AND SO
THERE ARE SMART FOLKS KIND OF
UNCOVERING THESE THINGS BIT BY
BIT. AND WE'RE ENGAGING WITH
THEM IN A VARIETY OF DIFFERENT
GROUPS. SO NATHAN PARTICIPATES
IN A PUBLIC FUNDER DATA GROUP
THAT'S BEEN TALKING ABOUT HOW
TO IMPROVE DATA, HOW TO BE MORE
STRATEGIC. THERE'S A LOT OF
DIFFERENT CONVERSATIONS THAT
THEY'VE HAD ON THIS TOPIC, BUT
WE COULD DO MORE ABOUT HOW THIS
PLAYS OUT INTENTIONALLY. I
CAN'T THINK OFF THE TOP OF MY
HEAD WITH THE STATE THINGS THAT
COULD CHANGE, ALTHOUGH I'VE SEEN
SOME THINGS THAT HAVE CROPPED UP
OVER TIME WHERE THERE HAVE BEEN
UNINTENTIONAL CONSEQUENCES,
WHERE WE'VE WE'VE SET THRESHOLDS
BY UNIT NUMBERS. AND IF A
PROJECT CHANGES TO BE THREE
BEDROOMS, THEN IT FALLS BELOW
THAT THRESHOLD AND CAN'T ACHIEVE
THE BENEFITS OF A STATE PROGRAM,
FOR EXAMPLE. SO THAT'S
DEFINITELY ON FOLKS MINDS. THEY
THEY ARE AWARE OF THE CHALLENGE.
I THINK FOLKS ARE INTERESTED IN
TRYING TO MAKE THAT BETTER. BUT
MORE TO MORE TO COME. THERE
-- OKAY, GREAT. WELL, I JUST,
YOU KNOW, IF THERE'S ANYTHING
THAT WE CAN DO TO HELP SORT OF
SUPPORT THAT TRANSITION WITH
ANY, YOU KNOW, TALKING TO OUR
COUNTY COLLEAGUES OR ANY OF OUR
STATE COLLEAGUES CERTAINLY WOULD
BE HAPPY TO, TO SUPPORT THAT
EFFORT. ANOTHER QUESTION. SO
TALKING ABOUT SORT OF THE, THE,
YOU KNOW, THE UP TO NEIGHBORHOOD
RESIDENTIAL, WHICH DOESN'T HAVE
A AND NOW, YOU KNOW, WE CAN
BUILDERS CAN BUILD VERY SIMILAR.
SIMILARLY, IN TERMS OF WHAT
THEY'RE ALLOWED TO DO AND IN
OUR VERSUS SOME OF OUR LR,
ESPECIALLY LIKE LR ONE. JUST
WONDERING IF WHAT, IF ANYTHING,
YOU'RE HEARING FROM KIND OF
MARKET RATE DEVELOPERS OR I'M
WONDERING, YOU KNOW, IF WE
COULD, IF YOU'VE HEARD ANYTHING
FROM LIKE SDCI FROM THE
PERMITTING DATA, IF THEY'VE
STARTED TO NOTICE A SHIFT YET OR
JUST WANT TO KEEP AN EYE ON
THAT. AND SO, YOU KNOW,
CERTAINLY COULD ASK SDCI, BUT
JUST WONDERING IF YOU'VE HEARD
ANYTHING.
-- I THINK FROM THE
CONVERSATIONS WE'VE HAD THIS
YEAR, MANY OF US WERE SAYING,
LET'S SEE WHAT HAPPENS IN 2026
FOR SURE. AND THEN PERHAPS INTO
2027, AND KEEP CLOSE TABS ON IT.
I THINK SIMILAR TO WHAT WE
TALKED ABOUT WITH AFFORDABLE
HOUSING PROVIDERS, YOU HAVE A
LOT OF SITES THAT ARE IN PLAY
AND UNDERWAY, AND ALL DEVELOPERS
ARE PIPELINE PLANNING. AND NOW
STARTING TO REACT TO DIFFERENT
CHANGES THAT THE CITY HAS MADE.
SO IT SEEMS LIKE WE'LL START TO
SEE THAT SOMETIME IN THE NEXT
YEAR. BUT THAT'S A GOOD A GOOD
ONE TO WATCH. YEAH.
-- AND THEN I'M GOING TO ASK
SORT OF A BIGGER KIND OF PICTURE
QUESTION JUST ABOUT KIND OF THE
HOUSING MARKET IN GENERAL. I
THINK WE'VE SEEN RENTS FLATTEN,
WHICH IS GREAT. MAYBE EVEN GOING
DOWN A LITTLE BIT. YOU KNOW,
WE'VE SEEN JOB LOSSES, WHICH I
THINK IS, YOU KNOW, RELIEVING
SOME OF THAT PRESSURE ON OUR
HOUSING MARKET. SO, YOU KNOW,
IT'S NOT GREAT TO HAVE JOB
LOSSES, BUT, YOU KNOW, THE
SILVER LINING IS MAYBE A LITTLE
BIT LESS PRESSURE ON RENTS YOU
KNOW, AND I GUESS I JUST, YOU
KNOW, I THINK AS WE LOOK TO SORT
OF, YOU KNOW, THE SORT OF LONGER
PIPELINE, I THINK IT'S IMPORTANT
FOR US TO KEEP IN MIND SORT OF
WHAT'S HAPPENING IN, IN SORT OF
THE MARKET RATE SIDE OF THINGS,
JUST BECAUSE IT CAN REALLY
INFLUENCE WHETHER IT'S THINGS
LIKE IMAGE PAYMENTS OR JUST
THINGS LIKE COMPETITION. I MEAN,
ESPECIALLY AT THE 60%. YOU KNOW,
STUDIO LEVEL BUT AND ALSO THEY
SAY JUST A LITTLE BIT CONCERNED
ABOUT A POTENTIAL DOWNTURN IN
THE ECONOMY AND WHAT THAT COULD
LOOK LIKE FOR OUR HOUSING
MARKET. AND THAT'S HARD TO
PREDICT. JUST KIND OF THINKING
BACK TO WHAT HAPPENED, YOU KNOW,
IN 2008. BUT SO THIS IS A, YOU
KNOW, AND WE CAN TAKE THIS
OFFLINE AND ASK TO TALK MORE
LATER. BUT I'M JUST WONDERING
HOW MUCH YOU KNOW, YOU'VE ARE
SORT OF HEARING FROM SORT OF
MARKET RATE PARTICIPANTS.
OBVIOUSLY, WE'VE BEEN HEARING A
LOT ABOUT, YOU KNOW, THE PERMITS
BEING DOWN AND THE DIFFICULTIES
OF BUILDING. AND I DO THINK
PARTIALLY IN MY MIND, IT'S THE
COST TO BUILD. BUT I ALSO THINK
PARTIALLY WHAT IS HOLDING BACK
DEVELOPERS IS SORT OF THE
UNCERTAINTY IN THE ECONOMY, THE
UNCERTAINTY IN THE JOB MARKET.
YOU KNOW, I THINK WHEN AMAZON
WAS JUST HIRING AND PEOPLE KNEW
RENTS WERE GOING TO CONTINUE TO
CLIMB, IT WAS SORT OF EASY TO
BAKE THAT INTO YOUR PRO FORMA
AND BE CONFIDENT THAT LIKE, HEY,
IT'S EXPENSIVE TO BUILD, BUT WE
KNOW THAT WE'RE GOING TO BE
ABLE TO, TO LEASE UP BECAUSE SO
MANY PEOPLE ARE MOVING HERE. I
THINK IT'S A DIFFICULT TIME
RIGHT NOW WITH THE THE ECONOMIC
UNCERTAINTY. AND AGAIN, THE JOB
MARKET FOR, FOR DEVELOPERS TO TO
BE CONFIDENT. AND SO AGAIN, SORT
OF JUST. BIG PICTURE, I GUESS
I'LL JUST SORT OF MAKE ONE LAST
SORT OF COMMENT AND SORT OF
OBSERVATION, WHICH IS WE'VE
INCREASED OUR AFFORDABLE HOUSING
INVESTMENTS SO SIGNIFICANTLY
OVER THE PAST FEW YEARS, WHICH
IS WONDERFUL. AND I THINK WE'RE
FINALLY, YOU KNOW, I THINK
BECAUSE OF HOW LONG IT TAKES TO
BUILD HOUSING, YOU KNOW, WE
DIDN'T SORT OF FEEL THAT IMPACT
IMMEDIATELY. BUT I'M HOPING IN
THE NEXT, YOU KNOW, COMING
COUPLE OF YEARS THAT WE WILL
START TO FEEL THE IMPACT OF
THESE SIGNIFICANT INCREASES IN
OUR INVESTMENTS. AND AT THE SAME
TIME, THERE'S SORT OF THIS LESS
PRESSURE FROM THE ECONOMY. BUT
ANYWAY, JUST ANY SORT OF
OBSERVATIONS ABOUT IN GENERAL
WHAT'S HAPPENING IN OUR HOUSING
MARKET OR OUR ECONOMY OR SORT OF
HOW THAT MIGHT INFLUENCE SOME OF
YOUR THINKING OR SOME OF OUR
INVESTMENTS.
-- THE THE ONE ITEM YOU DIDN'T
MENTION IS VACANCY. AND IN THE
CITY RIGHT NOW, THE LAST
MEASURE, WE HAVE CITYWIDE
VACANCY IS AROUND 6%. THERE'S A
LOT OF HIGH COST HOUSING MARKETS
THAT ARE VERY JEALOUS OF THAT.
IT'S ALSO A MEASURE OF SORT OF
WHAT'S HAPPENING IN OUR MARKET.
THERE'S BEEN A VERY SIGNIFICANT
BUILDING BOOM OF A SIMILAR
TYPOLOGY OF APARTMENT AND WE ARE
AT THE OFFICE TRYING TO REACT TO
THAT.
-- SO CAN I JUST MAKE SURE I
UNDERSTAND? SO THE 6% IS A
LITTLE BIT HIGHER THAN THESE
OTHER HIGH COST AREAS. AND THAT
IS SORT OF A GOOD THING TO A
CERTAIN DEGREE FOR RENTERS,
BECAUSE IT MEANS THERE'S, YOU
KNOW, SOME SUPPLY THERE AND A
LITTLE BIT HELPS WITH THE RENTS.
IS THAT KIND OF CORRECT?
-- OKAY. RIGHT. SO THERE'S A
LITTLE BIT MORE CHOICE FOR
RENTERS ON THE MARKET RIGHT NOW.
AND EVEN THOUGH WE HEAR FROM
RENTERS, IT DOESN'T FEEL LIKE
THERE'S A LOT OF CHOICE AND IT
DOESN'T FEEL LIKE IT'S
AFFORDABLE OR ACCESSIBLE TO
THEM. SO I DO WANT TO SAY THAT
BY THE NUMBERS THAT WE SEE ON
THESE REPORTS, THERE ARE 6% ARE
VACANT IN THE CITY. AND I THINK
THE OTHER PART OF THAT IS THAT
GENERALLY INVESTMENT SEEKS A
RISING MARKET. AND PERHAPS WE
ARE NOT THERE TODAY IN SEATTLE.
SO THAT'S SOMETHING TO BE
WATCHING. THERE ARE OTHER
FACTORS AT PLAY AS WELL. I WAS
JUST HEARING FROM SOMEBODY WHO
HAD A CONVERSATION ABOUT HOW
CHALLENGING INSURANCE IS, AND
THAT SEATTLE IN PARTICULAR, IS
FACING CHALLENGES AROUND
INSURANCE BECAUSE OF PERCEPTION.
REAL, PERCEIVED, ALL THESE
THINGS. SO THERE'S, THERE'S A
LOT THAT PLAYS INTO THOSE TYPES
OF DECISIONS AROUND RISK
TOLERANCE FOR INSURERS AND
INVESTORS. AND IT'S HARD TO PUT
YOUR FINGER ON EXACTLY THE THING
THAT IS GOING TO MAKE THE
DIFFERENCE, RIGHT. FOR US, WHAT
WE CONTROL THE OFFICE OF HOUSING
IS THE WAY THAT WE SPEND OUR
FUNDS. AND SO THIS IS WHAT WE'RE
TALKING ABOUT WITH OUR TEAM TO
ENSURE THAT WE ARE INVESTING IN
AFFORDABLE HOUSING THAT IS TRULY
BELOW MARKET AND THAT WILL
COMPETE IN THIS CURRENT TIME
THAT WE'RE IN WHERE WE HAVE 6%
VACANCY. WE HAVE A SIGNIFICANT
NUMBER OF 60% STUDIOS THAT ARE
OPEN AND WAITING FOR TENANTS. SO
WE WANT TO SEE MUCH LOWER
AFFORDABILITY LEVELS BELOW 50.
AM I BELOW 40? AM I BELOW 30? AM
I? THAT REQUIRES DEEPER
INVESTMENT FROM US UPFRONT
CAPITAL. IT MAY REQUIRE
OPERATING THAT WE DIDN'T
NECESSARILY PLAN FOR. AND THEN
ALSO FAMILY SIZED HOMES, MORE
COMPETITION FOR FAMILY SIZED
HOMES AT LOWER INCOME LEVELS.
THAT'S ALWAYS NEEDED. WE'VE
HEARD TIME AND AGAIN THAT OUR
DEVELOPERS THAT BUILD THOSE YOU
THOSE BUILDINGS, THE FAMILY
SIZED HOMES AND THE LOWER INCOME
UNITS GO FAST. AND THESE OTHER
TYPOLOGIES, STUDIOS AT HIGHER
INCOME LEVELS ARE NOT RENTING UP
AS QUICKLY. NOW, IT DEPENDS ON
NEIGHBORHOOD. THERE ARE A LOT OF
OTHER FACTORS AT PLAY, BUT THIS
IS WHAT WE'RE LOOKING AT. WHAT
ARE THE THINGS THAT WE CAN
CONTROL TO RESPOND TO THESE
MARKET CONDITIONS THAT WE'RE
IN? AND WE'RE LOOKING AT AS
MUCH DATA AS WE CAN, TRYING TO
BE BETTER ABOUT THAT. IT'S
WE'VE IMPROVED SIGNIFICANTLY,
AND WE'RE TRYING TO JUST KEEP UP
TO DATE, MAKE SURE THAT WE'RE
LOOKING AT THE MOST CURRENT DATA
TO MAKE THESE DECISIONS
-- OKAY.
-- THANK YOU. I'LL JUST ONE LAST
SORT OF QUESTION, MAYBE MORE OF
A COMMENT. YOU KNOW, I
APPRECIATE THE THINKING GOING
INTO SORT OF YOUR SITING POLICY
THINKING, YOU KNOW, HOW DO WE
MAKE SURE THAT WE ARE INVESTING
SORT OF, YOU KNOW, IN AREAS THAT
WE HAVEN'T INVESTED IN
PREVIOUSLY WHILE ALSO BEING
MINDFUL OF THE PIPELINE, RIGHT,
WHERE PEOPLE HAVE ALREADY SORT
OF BOUGHT PROPERTIES AND, YOU
KNOW, NOT WANTING TO LEAVE OUR
DEVELOPING PARTNERS SORT OF IN
THE LURCH BECAUSE WE'VE, YOU
KNOW, SHIFTED, YOU KNOW, IT
TAKES SO MANY YEARS FOR THEM TO,
TO PLAN AND THEY MAKE SUCH
SIGNIFICANT INVESTMENTS. AND
THEN, YOU KNOW, WHEN WE MAKE
CHANGES, THAT THAT REALLY IS
HARD FOR THEM TO PIVOT SO
QUICKLY. SO I APPRECIATE SORT OF
THE LONG TERM THINKING THERE.
AND I GUESS IT IS SORT OF A
QUESTION OF GIVEN HOW WE KIND OF
RELY UPON OUR PARTNERS TO, YOU
KNOW, GO OUT AND IDENTIFY SITES
AND SORT OF LIKE WE AND IN SOME
WAYS ARE SORT OF MORE OF A
PASSIVE WAITING FOR PEOPLE TO
BRING US PROJECTS AND, YOU KNOW,
THAT'S GOING TO RESULT IN, I
THINK CERTAIN, YOU KNOW, LOWER
COST AREAS SORT OF RISING TO THE
TOP. HOW DO WE SORT OF CHANGE TO
BE A LITTLE BIT LESS PASSIVE, A
LITTLE BIT MORE PROACTIVE IN
DEVELOPING THAT PIPELINE? I
DON'T KNOW IF YOU HAVE ANY GUT
THOUGHTS OR REACTIONS.
-- ABSOLUTELY. I MEAN, THAT'S
THAT IS THE GOAL OF THE WORK
THAT WE ARE DOING NOW IS TO GET
TO A MORE ACTIVE STANCE ON WHAT,
WHERE, WHAT GEOGRAPHIES DO WE
WANT TO SEE INVESTMENTS FROM THE
OFFICE OF HOUSING LAND AND WHY?
AND SO THAT THAT IS VERY MUCH
THE ORIGIN OF THIS EFFORT.
THAT'S THAT'S WHAT THE TEAM IS
TAKING ON. WE HAVE SOME EARLY
INDICATIONS THAT THERE'S, YOU
KNOW, SOME GREAT OPPORTUNITIES
IN DIFFERENT NEIGHBORHOODS TO
MAKE BETTER INVESTMENTS AND, AND
TRY AND LAND SOME INVESTMENTS.
WE'VE BEEN TALKING TO OUR
COLLEAGUES AT SOCIAL HOUSING
PDA, AND THEY'RE REALLY
INTERESTED IN STRIVING FOR
INVESTMENTS IN PLACES THAT THE
OFFICE OF HOUSING HAS NOT
INVESTED IN AREAS OF OPPORTUNITY
AS WELL. SO WE DEFINITELY WANT
TO GET TO THAT. AND THAT IS
THAT'S PART OF OUR GOAL. SO
WE'RE TALKING THIS YEAR. IT
WOULD BE GREAT IF WE COULD PULL
THIS OFF FOR THE 2027 NOFA,
WHERE WE ARE PROVIDING MORE
ACTIVE GUIDANCE OR THRESHOLD
CRITERIA, PRIORITY POINTS FOR
CERTAIN TYPES OF GEOGRAPHIES
THAT THAT'S ON THE HORIZON,
POTENTIALLY THIS YEAR. WE FOR
THE FIRST TIME DID NOT REQUIRE
MARKET STUDIES BECAUSE WE
HAVEN'T SEEN THE BENEFIT OF
THOSE. AND INSTEAD OUR TEAM IS
TAKING ON REVIEW OF DATA MARKET
DATA, SUBMARKET DATA TO HELP
INFORM AND PROVIDE ANALYSIS AND
BACKING FOR PARTICULAR PROJECTS
IN NEIGHBORHOODS AROUND WHAT
THEY'RE BRINGING FORWARD FOR
THEIR RENT LEVELS AND THEIR
BEDROOM SIZES. AND IF THAT'S
GOING TO BE COMPETITIVE IN THAT
AREA. SO IT'S BOTH OF THOSE
THINGS. IT'S WHERE DO WE NEED
HOUSING? BUT ALSO HOW SHOULD IT
BE BUILT TO BE COMPETITIVE IN
THAT NEIGHBORHOOD? SO WE'RE
TRYING TO KIND OF IMPROVE ON
BOTH OF THOSE FRONTS AT THE SAME
TIME.
-- THANK YOU SO MUCH. AND THANK
YOU, CHAIR.
-- THANK YOU SO MUCH, VICE
CHAIR. I REALLY APPRECIATE THOSE
QUESTIONS, AND I FEEL A LOT OF
ALIGNMENT. I THINK, IN THE
SPIRIT OF WHERE YOU WERE
HEADING. AND I THINK ON BOTH THE
PREVIOUS QUESTIONS AROUND THE
NEED TO MAKE SURE THAT WE'RE
DOING STRONG INVESTMENTS AND
PARTNERSHIP WITH, OH, STRONG
INVESTMENT, NOT INVESTMENTS, BUT
PARTNERSHIP WITH MARKET. AND
ALSO SO EXCITING TO HEAR ABOUT
THE SITING WORK. AND I THINK
THAT'S AN OPPORTUNITY TO REALLY
BUILD ON WHERE WE'RE HERE AND BE
RESPONSIVE TO WHAT WE'RE HEARING
FROM FOLKS. AND I KNOW THAT
OBVIOUSLY WE HAVE THE MONTLAKE
PROPERTY NOW, AND WE HAVE THE
PROPERTY THAT WE'RE IN THE
CENTRAL DISTRICT THAT WILL BE
AFFORDABLE HOMEOWNERSHIP. AND
I'M, I'M LOOKING FORWARD TO
MORE OPPORTUNITIES TO BUILD ON
THOSE KINDS OF ACQUISITIONS AND
SUPPORT INNOVATION AND PLACE
BASED DEVELOPMENT IN HIGH
OPPORTUNITY NEIGHBORHOODS. I
THINK THAT'S FANTASTIC. I DO
WANT TO ASK ONE FINAL QUESTION
BEFORE WE WRAP UP HERE, WHICH IS
JUST TO GO BACK TO THE SOME OF
THE POINTS THAT WERE MADE AROUND
THE STUDIOS AND THE THE GAPS IN
THE MARKET. THERE WAS A MAYBE
THIS IS A COMMENT, BUT SOMETHING
I'VE HEARD FROM OUR PARTNERS
WAS, YOU KNOW, AROUND THE REAL
CHALLENGES THAT FOLKS HAVE HAD
ON FILLING THOSE STUDIOS, IN
PART BECAUSE OF THE FACT THAT
WHEN WE HAVE THOSE STUDIO UNITS
THAT ARE AROUND 60%, AM I IN
PARTICULAR, THEY STRUGGLE TO TO
COMPETE AND ATTRACT FOLKS
BECAUSE OF THE AFFORDABILITY
LEVEL. AND A STORY THAT I HEARD
THAT I THOUGHT WAS A REALLY
EXCITING EXAMPLE OF
RESPONSIVENESS FROM, OH, WAS IN
SOME OF THE DEBT RESTRUCTURING,
BEING ABLE TO INVEST AND BUY
DOWN THE COST OF THOSE STUDIO
UNITS. AND I WONDER IF YOU CAN
SPEAK TO THAT, BECAUSE I THINK
WHEN WE HEAR DEBT RESTRUCTURING,
IT'S, YOU KNOW, MAYBE FOR SOME
FOLKS HERE, WE'RE LIKE, YES,
BUT I THINK SOMETIMES THERE CAN
BE LIKE A WAIT, WHAT DO WE MEAN?
AND IT'S LOOKED LIKE A COUPLE OF
DIFFERENT THINGS IN THE WAY THAT
YOU'VE RESPONDED TO OUR PARTNERS
OVER THE LAST YEAR. SO CAN YOU
SPEAK TO THAT PARTICULAR
APPROACH, PLEASE?
-- YES. YOU BET. YEAH. SO WHEN
YOU KNOW THIS, THIS PHENOMENON
OF VACANCY AND 60% STUDIOS HAS
BEEN HAPPENING FOR A COUPLE OF
YEARS AND, AND INCREASING AND
CONCERN. AND WE'VE TRIED SEVERAL
APPROACHES. SO WE PROVIDED
SIGNIFICANT RENTAL ASSISTANCE.
AND THE FEDERAL GOVERNMENT
PROVIDED SIGNIFICANT RENTAL
ASSISTANCE. WE OFFERED OPERATING
STABILIZATION GRANTS THAT WENT
TO ORGANIZATIONS, AND THEY WERE
ABLE TO SORT OF TARGET WITHIN
THEIR PROJECT PORTFOLIOS WHERE
THOSE FUNDS SHOULD LAND. WE'VE
ALSO PROVIDED ADDITIONAL URGENT
OPERATING STABILIZATION SUPPORT,
AGAIN, TO THE ORGANIZATION AS A
WHOLE. AND THEY DECIDE WHERE
THOSE FUNDS GO. THE DEBT
RESTRUCTURING IS DIFFERENT.
IT'S A TAILORED APPROACH
SPECIFICALLY FOR ONE BUILDING,
AND IT PERMANENTLY CHANGES THE
PROJECT FOR THE LONG TERM AND IS
RESPONSIVE TO SOME OF THESE
CONDITIONS THAT WE'RE
EXPERIENCING RIGHT NOW. FOR
PROJECTS THAT HAVE NOT BEEN OPEN
FOR VERY LONG, BUT ARE REALLY
STRUGGLING TO LEASE SOME OF
THESE PROJECTS. SO THEY'VE BEEN
A 60% STUDIO. WE'RE ABLE TO
UNDERWRITE THOSE LOWER DOWN 50,
40, 30 AM I? IT DEPENDS ON THE
PROJECT. AND MANY OF THOSE ARE
STILL UNDERWAY NOW. BUT IT'S
IT'S A MORE IT'S A DEEPER
IMPACT FOR A SINGLE PROJECT AND
A LONGER TERM INVESTMENT. AND
IT'S, IT'S MUCH MORE IN LINE
WITH THE WAY THAT O TYPICALLY
INVESTS IN PROJECTS. AND OUR
PARTNERS. BUT IT IS ALSO A NEW
STRATEGY. AND THE TEAM IS
CONTINUING TO LEARN FROM THAT.
IT'LL BE INTERESTING TO SEE
WHICH PROJECTS COME THROUGH THIS
YEAR, BUT WE'VE HEARD FROM OUR
PARTNERS THAT THERE IS INTEREST
IN CONTINUING THIS APPROACH AND
THAT THEY HAVE STILL MORE NEED
WITH THEIR PORTFOLIOS TO ADDRESS
SOME OF THESE ISSUES OF THE
MISMATCH WITH INCOMES AND RENTS
AND JUST THE REALITIES OF
DIFFERENT SUBMARKETS.
-- THANK YOU FOR THAT. AND AND
OKAY, FINAL FINAL QUESTION. JUST
WHEN WE TALK ABOUT THE DEBT
RESTRUCTURING WORK, THE RENT,
THE RENTAL SUBSIDIES, THE
VARIOUS APPROACHES THAT O HAS
TAKEN AND THAT YOU'VE REPORTED
BACK TO US, I WONDER IF YOU'RE
ABLE TO SORT OF SHARE ANY EARLY
UNDERSTANDING OF ONE OF THESE
STRATEGIES BEING THE BETTER BANG
FOR OUR BUCK OR THE MOST
EFFECTIVE, OR WHETHER WE'RE
SEEING THAT THIS IS A CHALLENGE
AND OUR, OUR AFFORDABLE
COMMUNITY THAT REQUIRES AN
ONGOING MULTI-PRONGED APPROACH
WHEN IT COMES TO HOW YOU'RE
APPROACH RATING, EXCUSE ME,
APPROACHING THE OPERATING
SUBSIDIES AND RESTABILIZATION OF
THE SECTOR.
-- I THINK WE'RE STILL LEARNING.
I DO YOU KNOW, IT'S I LIKE BOTH
AND I THINK WITH WITH THE
HOUSING LEVY AND OUR JUMPSTART
SPEND PLAN THAT YOU SAW EARLIER
IN THE SLIDES, HAVING AN ARRAY
AND A DIVERSITY OF SPENDING
CATEGORIES TO COVER THE FULL
ECOSYSTEM OF NEEDS IS REALLY
IMPORTANT. AND WE NEED TO DO
CAPITAL INVESTMENTS, AND WE NEED
TO SUPPORT OPERATIONS. IT'S GOOD
WHEN WE CAN DIRECTLY ALLOCATE
FUNDS TO A PROJECT FOR A
SPECIFIC PURPOSE. IT'S MORE IN
LINE WITH OUR PRACTICE AND WHAT
OUR OFFICE IS REALLY, IT'S
IT'S OUR BREAD AND BUTTER. SO
THAT'S, THAT'S REALLY WHAT
WE'RE ACCUSTOMED TO DOING. I
THINK THE DEBT RESTRUCTURING HAS
A LOT OF SHOWS, A LOT OF
PROMISE. IT'S, IT'S GOING TO
BE INTERESTING TO SEE HOW THOSE
CURRENT AWARDS PLAY OUT IN THESE
INITIAL YEARS. AND THEN AGAIN,
WHAT COMES THROUGH. BUT THAT'S
I'M KIND OF, I THINK STAFF,
JUST FROM THE FEW CONVERSATIONS
I'VE HAD WITH OUR STAFF TEAM,
THERE'S A BIT OF A LEAN TOWARD
DEBT RESTRUCTURING INVESTMENTS.
I THINK AT THIS POINT, AS
OPPOSED TO MORE OPERATING
STABILIZATION GRANTS, JUST
BECAUSE WE KNOW EXACTLY WHERE
THOSE ARE LANDING AND WHAT
THEY'RE ACHIEVING IN SPECIFIC
BUILDINGS AND FOR SPECIFIC
APARTMENTS. SO THAT'S MY INITIAL
ANSWER.
-- THANK YOU FOR THAT. AND I
KNOW WE HAVE A LOT MORE WORK TO
DO IN THIS SPACE, AND I LOOK
FORWARD TO CONTINUING TO PARTNER
WITH YOU AND YOUR OFFICE AND THE
FANTASTIC AND SMART STAFF TEAM
THERE AT THE OFFICE OF HOUSING
ON THIS WORK. WE KNOW THAT THE
OPERATING AND MAINTENANCE NEEDS
WERE SOMETHING THAT, AS WE
TALKED ABOUT EARLIER IN THIS
YEAR, WE'VE SEEN ACROSS THE
COUNTRY BE A GAP, RIGHT? WHEN
BECAUSE WE'VE INVESTED IN
PRODUCTION, BUT WE HAVEN'T
INVESTED CONCURRENTLY IN
PRESERVATION AND STABILIZATION.
SO I KNOW THAT OFFICE OF HOUSING
IS NOT ALONE IN THE NEED TO BE
RESPONSIVE TO WHAT'S HAPPENING
IN COMMUNITY, AND I LOOK FORWARD
TO CONTINUING TO WORK AND LEARN
ALONGSIDE YOU, AS WELL AS OUR
COLLEAGUES AROUND THE COUNTRY.
AND WITH THAT, COLLEAGUES,
UNLESS I SEE ANY FURTHER HANDS,
I'M JUST GOING TO CHECK ON MY
SCREEN QUICKLY HERE. OKAY,
FANTASTIC. THAT IS. THANK YOU
ALL SO MUCH FOR JOINING US. WE
REALLY APPRECIATE YOU. IS THERE
ANY FURTHER BUSINESS TO COME
BEFORE COMMITTEE TODAY ALL
RIGHT. SEEING NONE. THIS
CONCLUDES THE AUGUST 12th, 2026
MEETING OF THE HOUSING, ARTS AND
CIVIL RIGHTS COMMITTEE. OUR NEXT
SCHEDULED MEETING IS ON
SEPTEMBER 9th. THANK YOU ALL SO
MUCH. IT IS 3:53 P.M. AND WE ARE
ADJOURNED.
-- RIGHT
-- [MUSIC] [MUSIC]
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