Housing Levy Admin & Financial Plan Update 2018

1. Housing Levy Administrative and Financial Plan and Housing Funding Policies UpdateNovember 30, 2018

2. A &F Plan and Housing Funding Policies • Administrative and Financial (A&F) Plan • Two-year funding plan for the Housing Levy • General policies for each OH Levy program • HSD’s Homelessness Prevention and Stability Services Program policies • Housing Funding Policies • Apply to Levy and other housing fund sources administered by OH • Designed to achieve adopted production goals and affordability levels • Focus on providing clear policy direction to borrowers and flexibility for implementation in changing market and funding environment • Policies reflected in NOFA and OH-executed loan agreements

3. Process for Updating Funding Policies • Community Engagement • Community Meeting, Initial Policy Scoping (November) • Community Meeting, Review Draft Policies (February) • Ongoing engagement on specific policy issues • Online Engagement • Policy Papers available on website, comments accepted • Social Media • Levy Oversight Committee • Review and recommendation • Legislation Transmitted to Council (March – April)

4. Major Themes of Current Funding Policies Ending Homelessness – alignment with countywide systems, best practices • Permanent supportive housing, affordable opportunities for assisted households • HSD-administered prevention and rent assistance Anti-displacement and Preservation • Acquisition, rehabilitation, construction, incentives, sustainable ownership Location Priorities – citywide, provide choice • Higher-cost areas, high capacity transit service • Communities at high risk of displacement • Publicly owned sites, achieve broad City and community priorities Resident Population Priorities • Seniors and people with disabilities, people experiencing homelessness, low-wage workers and their families Race and Social Equity – program development and implementation • Toolkits, community engagement, data and evaluation

5. 2017 Investments

6. Rental Housing Program At-a-Glance • Loans for production and preservation • Housing owned and operated by community partners, largely non-profit organizations; regulatory agreement restricts use of property • Priority low-income resident populations: seniors and people with disabilities, homeless families and individuals, low-wage workers and their families • Requirements for durability, sustainability, and labor equity • Long-term (at least 50 years) stewardship, inspections and compliance monitoring by OH • May provide cultural, community, and commercial spaces 6

7. 2017 Rental Housing Program Investments • $93.4 million awarded for rental housing production and preservation • 944 units -- affordable rental housing created • 534 units -- reinvestment in affordable rental housing 7

8. Housing Capital Funds Invested and Leveraged • Total investment in low-income housing development exceeds $306 million • About $3 in other public and private investment for each City dollar • Private equity through federal tax credits remains the most significant source • Owner Contribution / Fundraising is high due to a large grant ($30 million from Allen Foundation) 8

9. Supportive Housing 9

10. Rental Housing for Low Income Households 10

11. Portfolio Reinvestment 11

12. Rental Housing Investments Throughout Seattle 12

13. Homeownership Program At-a-Glance • Homebuyer Assistance • Development of housing for low-income first-time buyers • Affordable for a minimum of 50 years • Re-sale restricted, permanent affordability models -- includes land trusts and limited equity co-ops • 2017 Funding • $2.25 million from Seattle Housing Levy • 25 units in two developments • Almost $10 million in total investment -- $3 leveraged for each City dollar 13

14. Homeownership Program Investments 14

15. Acquisition and Preservation Loans 15

16. Investments Affirmatively Further Fair Housing 16

17. Homeownership Program: funds development of housing that will be sold to low-income first-time buyers at affordable prices for a minimum of 50 years • $2.25 million for permanently affordable homeownership development • 25 units to be constructed in two developments • Almost $10 million in total housing investment, $3 leveraged for each City dollar Investments in Housing Rehabilitation and Sustainability • Home Repair Program Critical health and safety repairs, helping low-income homeowners preserve most important financial asset and sustain home ownership • Over $440,000 in loans and grants • 28 low-income homeowners assisted • Weatherization Program Energy conservation and related indoor air quality improvements, enhancing health and living conditions and lowering utility bills for low-income owners and renters • $3.57 million in grant funds • 112 single family homes, benefiting low-income owners or renters • 24 affordable apartment buildings, benefiting 1,306 low-income renters 17

18. Potential Changes to OH Funding Policies All Rental and Homeownership Development • 1. Community Relations Plan2. Marketing of Affordable Housing • 3. Community Preference in Leasing and Sales • 4. Bedroom Definition Used for Determining Unit Size Housing Development on Publicly Owned Sites 5. Community Partnerships 6. Homeownership Development Funding Amount Acquisition and Preservation Program • 7. Funding Authorization to Continue Program Lending Rental Housing • 8. Project Locations for Housing with 30% AMI Units • 9. Operating and Maintenance Funding in Mixed Income Buildings Home Repair • 10. Home Repair Loan Terms • 11. Loans to Add or Improve Habitable Space