>> COUNCILMEMBER JUAREZ.
COUNCILMEMBER RINCK.
>> VICE CHAIR LIN.
>> PRESENT.
>> CHAIR FOSTER.
>> CHAIR, THERE ARE THREE
MEMBERS PRESENT.
>> GREAT. AND I BELIEVE WE
WOULD BE EXPECTING COUNCILMEMBER
HOLLINGSWORTH SHORTLY SO WE WILL
WELCOME HER WHEN SHE ARRIVES. IF
THERE IS NO OBJECTION, THE
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
AGENDA. CLERK, HOW MANY SPEAKERS
ARE SIGNED UP TODAY?
>> THREE.
>> GREAT. EACH SPEAKER WILL
HAVE TWO MINUTES. WE WILL START
WITH IN PERSON SPEAKERS FIRST.
CAN YOU PLEASE READ THE COMMENT
INSTRUCTIONS ?
>> THE 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 MOVED TO
REMOTE SPEAKERS. SPEAKERS WILL
HEAR A TIME WHEN 10 SECONDS ARE
LEFT. THE MICROPHONES WILL BE
MUTED . AND THEN COMMENTS ON THE
ALLOTTED TIME TO ALLOW US TO
CALL THE NEXT SPEAKER.
THECOMMENT PERIOD IS NOW OPEN.
WE WILL BEGIN WITH THE FIRST
SPEAKER . THE FIRST SPEAKER IS
ALEX -- I'M GOING TO
MISPRONOUNCE YOUR LAST NAME.
ITSTARTS WITH A T. AND THE NEXT
SPEAKER IS EILEEN CARTER WHO
WILL GO AFTERWARDS.
>> I WANT TO SPEAK SOMETHING
ABOUT THIS [ INAUDIBLE ] AND THE
EXPRESSION [ INAUDIBLE ] RIGHT.
I HAVE LIVED HERE FOR 40 YEARS I
CANNOT UNDERSTAND [ INAUDIBLE ]
I CAN UNDERSTAND THIS. [
INAUDIBLE ] THE CITY IS VERY
UNIQUE. [ INAUDIBLE ] NEVER
EXIST. WHY? [ INAUDIBLE ] NOT
SEE. CALL ME ON NUTS OR FISHES.
IT HAS BEEN MY [ INAUDIBLE ] FOR
MANY YEARS. THE CITY OF IDIOT
CAN ELECT ONLY IDIOTS. BECAUSE
THEY ELECT PEOPLE THAT [
INAUDIBLE ] FOR 30 YEARS,
SEATTLE NEVER ELECT ONE MAN OR
WOMAN OR ONE COUNCIL MEMBER OR
MAYOR THAT UNDERSTANDS THIS
RIGHT. I DON'T [ INAUDIBLE ]
BECAUSE MY ENGLISH NOT SO GOOD.
BUT YOU WILL SPEAK REALLY GOOD
ENGLISH. [ INAUDIBLE ] FOR 30
PLUS YEARS SINCE I COME HERE.
YOU DON'T UNDERSTAND WHAT IS
CIVIL RIGHT? WHY? BECAUSE
SEATTLE [ INAUDIBLE ] CALL ME A
NAZI OR FASCIST . [ INAUDIBLE ]
LIKE OF MAFIA WERE LIKE
ORGANIZED CRIMINAL. [ INAUDIBLE
] YOU HAVE TO BE RIGHT.
NICEPEOPLE. NO PROBLEM. GUYS,
STOP ACTING LIKE [ INAUDIBLE ]
FASCIST [ INAUDIBLE ] IT IS TIME
FOR CHANGE. WE WILL DROWN. [
INAUDIBLE ] CONSTITUTION.
>> THANK YOU VERY MUCH.
>> ALL RIGHT. CLERK, CAN YOU
READ THE NAME OF THE NEXT
SPEAKER PLEASE?
>> EILEEN CART .
>> JUST IN THE BONE -- BIN OVER
THERE, YOU CAN DROP THOSE.
>> HELLO COUNCILMEMBERS.
>> EILEEN, WE ARE GOING TO
PAUSE YOUR TIME FOR A SECOND. IF
YOU CAN SPEAK DIRECTLY INTO THE
MICROPHONE SO WE CAN HEAR YOU A
LITTLE BIT BETTER. YOUCAN ADJUST
IT IF YOU NEED TO.
>> I'M HERE TO REQUEST THE
--PROTEST THE HOA BE CHARGED [
INAUDIBLE ] THEY ALWAYS CHARGE [
INAUDIBLE ] FEES. SO THE CITY
HAS AN ORDINANCE THAT SAYS THAT
[ INAUDIBLE ] CAN ONLY CHARGE
FEES. SO THAT IS CAUSED BY
CLEANING OR BY SCREENING THE
TENANT. BUT THE HOA, THEY ALWAYS
CHARGE YOU THE TENANT FEE. THE
HOA, KIND OF LIKE THE LANDLORD
FOR THE COMMON AREA. THAT IS
WHY THEY CHARGE FEES. THE
COMMON AREA, THE HOMEOWNER
ALREADY PAID THE ASSESSMENT .
THEY ALREADY PAY THE MAINTENANCE
AND EVERYTHING. BY CHARGING
THESE FEES, LIKE A DOUBLE DIP .
SO THEY SHOULD NOT BE ALLOWED TO
CHARGE THOSE FEES. SO THE HOA
WOULD SAY, WE CHARGE TENANTS.
THEY ARE THE COMMON AREA. THEY
SHOULD BE ALLOWED TO CHARGE A
FEE. OR THE OWNER WOULD INCREASE
THE HOUSING COST. THAT IS WHY
I'M HERE. I HOPE THAT THE
COUNCIL CAN MAKE IT CLEAR TO THE
HOA 'S THAT THEY SHOULDN'T JUST
CHARGE. SOMETIMES IT IS $500 FOR
MARINE WATERS. THE ASSESSMENT
IS ALREADY VERY HEAVY. FOR THE
PAST FIVE YEARS, THE HOA HAS
DOUBLED FOR THE [ INAUDIBLE ]
OWNER, IT IS JUST UNBEARABLE.
THANK YOU.
>> THANK YOU SO MUCH.
>> CLERK, ARE THERE ANY OTHER
PUBLIC SPEAKERS?
>> YES. THERE IS A REMOTE
SPEAKER . ALI MUNA, OR MOANA
ALLEY. APOLOGIZE. FOR
THOSESPEAKING REMOTELY, PLEASE
PRESS STAR SIX FOR THE PROMPT
AND YOU WILL BE ON -- OFF MUTE
AND READY TO SPEAK. JUST A
SECOND. I WILL SHARE MY SCREEN.
>> NOT SEEING THEM PRESENT.
>> IT LOOKS LIKE THE SPEAKER IS
NO LONGER PRESENT, IS THAT
CORRECT, CLERK?
>> CORRECT.
>> ARE THERE ANY ADDITIONAL
REGISTERED SPEAKERS?
>> NO .
>> OKAY. WITH THAT, WE WILL END
PUBLIC COMMENT . WILL THE CLERK
PLEASE READ ITEM ONE INTO THE
RECORD?
>> AGENDA ITEM ONE, INTRODUCTION
INTO THE OFFICE OF HOUSING
BRIEFING AND DISCUSSION.
>> AND WE WILL HAVE PRESENTERS
JOIN US AT THE VIRTUAL COMMITTEE
TABLE AND WE WILL HAVE YOU ALL
INTRODUCE YOURSELVES WHEN YOU
ARE READY. BEFORE I HANDED OVER
TO THE PRESENTERS TO INTRODUCE
THEMSELVES, I WILL SAY THANK YOU
SO MUCH FOR COMING. WE ARE
REALLY EXCITED TO HAVE THIS. THE
FIRST PRESENTATION FROM THE
OFFICE OF HOUSING , WE REALLY
WANTED TO USE TODAY'S COMMITTEE
MEETING TO ALLOW US TO SET A
FRAME FOR WHAT IS HAPPENING WITH
OUR OFFICE OF HOUSING AND SOME
OF THE BIGGEST CHALLENGES THE
OFFICE SPACES AS WELL AS THE
WORK THAT THEY HAVE BEEN TAKING
ON. O AH WILL ALSO HELP US
UNDERSTAND THE WORK THEY ARE
GOING TO BRING IN FRONT OF THE
COMMITTEE THIS YEAR SO THAT
COMMITTEE MEMBERS CAN BE BRIEFED
AND START TO PREPARE QUESTIONS
FOR FUTURE ITEMS THAT WILL BE
COMING IN FRONT OF THIS
COMMITTEE. THERE ARE A NUMBER OF
THINGS THAT WE ARE HEARING FROM
CONSTITUENTS. EVERYTHINGFROM
HIGH HOUSING COSTS THAT ARE
PUSHING RESIDENTS OUT OF THE
CITY , TO JUNK FEES, TO CONCERNS
THAT WE JUST HEARD IN PUBLIC,
TODAY AROUND MOVE IN AND MOVE
OUT AND HOA. WE ARE EXCITED
TOHAVE THIS PRESENTATION AS A
FIRST STEP TO GET US ON THE SAME
PAGE SO WE CAN HAVE A
LEGISLATIVE AGENDA THIS YEAR
THAT WORKS TO BUZZ THE MOMENT
THAT BOOKS ARE IN, AND OUR CITY.
WITH THAT, I WILL HANDED OVER TO
THE PRESENTERS AND COLLEAGUES, I
ASK THAT YOU PLEASE HOLD YOUR
QUESTIONS UNTIL THE END. AND A
REMINDER THAT WE HAVE TWO
PRESENTATIONS TODAY. ONE FROM
THE OFFICE OF HOUSING AND WE
WILL HAVE THE SOCIAL HOUSING
DEVELOPER IN AFTER SO THAT WE
CAN MAKE SURE WE ARE ALL PACING
OURSELVES . WITH THAT, OAH
OAKS, HOPEFULLY WE HAVE GIVEN
YOU ENOUGH TIME TO GET ALL
ONLINE AND INTRODUCE YOURSELVES.
>> THANK YOU. GOOD AFTERNOON
CHAIR AND COMMUNAL NUMBERS.
ANDKELLY LARSON,[ INAUDIBLE ]
AND THE OFFICE OF HOUSING. HERE
WITH MY COLLEAGUE, ROSIE .
>> AND ROSIE JOE. AND THE
DIRECTOR OF CAPITAL INVESTMENTS
FOR THE OFFICE OF HOUSING .
>> I'M GOING TO SHARE. HERE WE
GO.
>> WE WILL PROVIDE AN OVERVIEW
TODAY FOR THE WORK OF THE
OFFICE. A DISCUSSION OF THE TOP
PRIORITIES FOR THE YEAR AHEAD.
THE 2026 CALENDAR OF COUNCIL
ACTIONS IN A MORE DETAILED
DISCUSSION OF THE FORMAL HOUSING
SECTOR, SUPPORTIVE HOUSING AND
OPERATING COST AND THE LOCAL
INCOME, RENT AND HOUSING COST
FOR THE DATA WE CARE ABOUT AS A
MAKE POLICY AND INVESTMENT
DECISIONS.
>> IT IS THE VISION OF THE
OFFICE OF HOUSING FOR EVERYONE
TO HAVE A HEALTHY AND AFFORDABLE
HOME. THE OFFICE STRIVES TO
ACHIEVE THIS VISION BY INVESTING
IN COMMITTEE PARTNERS TO CREATE
AFFORDABLE HOUSING AND PAYING
SPECIAL ATTENTION TO EQUITY AND
DISPLACEMENT PRESSURES WITH A
FOCUS ON INCREASING HOUSING
OPPORTUNITIES FOR PEOPLE WITH
LOW INCOMES.
>> THE MAJORITY OF THE OH
BUDGET, 84%, IS DEDICATED TO
BUILDING NEW HOMES AND
PRESERVING EXISTING HOMES, BOTH
RENTAL AND FOR-SALE HOUSING.
THESE GRAPHICS ARE PRESENT HOW
THE TWO PRIMARY FUND SOURCES ARE
ALLOCATED OVER A SEVEN YEAR
LEVEE PERIOD. YOU CAN SEE
THEDIFFERENCE BETWEEN HOW THE
LEVY FUNDS AND PET FUNDS WILL BE
DEPLOYED . THE LEVY SPENDING
CATEGORIES ARE ESTABLISHED WITH
THE AUTHORIZING LEVY ORDINANCE
AND WILL HOLD CONSTANT FOR A
SEVEN YEAR PERIOD. AND A
MAJORITY FOCUSED ON NEW RENTAL
HOUSING IN THE LOOP. PET FUNDS
ARE INCREASINGLY DEDICATED TO
OPERATING MAINTENANCE AND
SERVICES OR OM S, REPRESENTED IN
THE GREEN. TO FUND WORK FOR
STABILIZATION AND OPERATING
SERVICES EXPENSES IN SUPPORTIVE
HOUSING AND AFFORDABLE HOUSING.
THESE OMS BONDS PROVIDE STABLE
STAFFING TO SUPPORT RESIDENTS
DEBILITY AND WELL-BEING. SO WHAT
DOES THE OFFICE OF HOUSING DO?
WE INVEST IN COMMITTEE PARTNERS
TO CREATE AND PRESERVE
AFFORDABLE HOMES THROUGHOUT THE
CITY . WE ALSO INVEST IN ANNUAL
COST TO OPERATE , MAINTAIN AND
PROVIDE SERVICES FOR SUPPORTIVE
AND AFFORDABLE HOUSING.
ANDFINALLY, WE PROVIDE ENERGY
EFFICIENCY AND WEATHERIZATION
UPGRADES FOR LOW INCOME
HOMEOWNERS AND RANCHERS.
>> THE MAJORITY OF O H'S BUDGET
IS FOCUSED ON CREATING AND
PRESERVING AFFORDABLE HOMES. IN
2025, THE OFFICE RELEASED A
NOTICE OF FUNDING AVAILABILITY
THAT WAS DESIGNED TO BETTER
RESPOND TO THE CURRENT HOUSING
MARKET CONDITIONS AND CHALLENGES
IN THE HOUSING SECTOR. THERE
WAS GREATER EMPHASIS THIS YEAR
ON STABILIZATION AND
PRESERVATION THEN WE HAVE SEEN
IN PREVIOUS YEARS. OR PREVIOUS
FUNDING ROUNDS I SHOULD SAY .
AND THE 2025 [ INAUDIBLE ]
AWARDED TO SUPPORT OVER 2000
APARTMENTS. THIS INCLUDED 64
MILLION , FOR 139 NEW RENTAL
HOMES. 39 OF THOSE WILL BE
TWOBEDROOMS OR LARGER. FOR
PERMANENT AFFORDABLE
HOMEOWNERSHIP, 34 NEW FOR-SALE
HOMES HAVE WELCOMED NEW
HOMEOWNERS SINCE NOVEMBER.
>> SO TO RESPOND TO MAJOR
OPERATING CHALLENGES AND AFFORD
WILL HOUSING, OH IS TAKING A
MULTIFACETED APPROACH THAT
ADDRESSES BOTH SHORT-TERM NEEDS
AND LONG-TERM SYSTEM CHALLENGES
. IN THE SHORT-TERM, OH RELEASED
14 MILLION IN 2024, AND 28
MILLION THIS YEAR TO PROVIDE
RENT ASSISTANCE AND TO SUPPORT
STAFFING, MAINTENANCE AND
CAPITAL NEEDS AND AFFORDABLE
HOUSING. FOR LONGER-TERM
STABILITY, OH HAS REDESIGNED THE
NOVA TO PLACE GREATER EMPHASIS
FOR THE 2020 -- THE 2025 NOVA
TO PLACE GREATER EMPHASIS ON
STABILIZATION AND PRESERVATION.
OVER THE LAST THREE YEARS, OH
HAS DEPLOYED MORE THAN 130
MILLION IN CAPITAL STABILIZATION
FUNDS TO HELP PROJECTS COMPLETE
CONSTRUCTION AND TO CONVERT TO
PERMANENT FINANCING. THIS HAS
BEEN NECESSARY TO KEEP PROJECTS
MOVING FORWARD AND HAS ENABLED
HUNDREDS OF NEW AFFORDABLE HOMES
TO OPEN IN THE LAST FEW YEARS.
IN ADDITION, OH IS UPDATING
UNDERWRITING CRITERIA TO BETTER
REFLECT CURRENT MARKET
CONDITIONS AND IS CONDUCTING
DEEPER, HOLISTIC PORTFOLIO
REVIEWS TO ENSURE THAT WE ARE
UNDERSTANDING ORGANIZATIONAL AND
PROJECT LEVEL RISKS SO THAT WE
CAN DESIGN APPROPRIATE
SOLUTIONS.
>> THE OH WEATHERIZATION TEAM
HAS SUPPORTED 1500 SINGLE-FAMILY
AND MULTIFAMILY HOMES WITH
ENERGY UPGRADES . THAT INCLUDES
OIL OR GAS CONVERGENCE OR
ELECTRIC HEAT, HOMER. GRANTS
TOIMPROVE COST EFFICIENCIES AND
LIVING CONDITIONS FOR SEATTLE
RESIDENTS.
>> GREAT. NOW WE WILL MOVE INTO
THE TOP PRIORITIES FOR 2026.
THIS YEAR, OH WILL PRIORITIZE
PROTECTING AND PRESERVING
AFFORDABLE HOMES AND CONTINUE
SUPPORTING THE CITY'S RESPONSE
TO HOMELESSNESS. KELLI LARSEN
HAS INVESTED IN MANY THOUSANDS
OF APARTMENTS THAT ARE AGING AND
ARE IN NEED OF REINVESTMENT. WE
EXPECT TO CONTINUE TO PRIORITIZE
PRESERVATION INVESTMENTS THIS
YEAR AND TO ENSURE THAT OUR
PORTFOLIO OF AFFORDABLE HOMES
AND CONTINUE OPERATING FOR MANY
YEARS INTO THE FUTURE. THE
OFFICE WILL CONTINUE ITS WORK TO
REDUCE HOMELESSNESS BY
PRIORITIZING EXISTING AND NEW
INVESTMENTS , TO SERVE PEOPLE
WITH THE LOWEST INCOMES WHEREVER
POSSIBLE AND WORK WITH OTHER
PARTNERS TO MAKE HOUSING
DEVELOPMENT EASIER. OUR EXISTING
PORTFOLIO PROVIDES AFFORDABLE
HOUSING TO OVER 20,000
RESIDENTS. AFFORDABLEHOUSING
REQUIRES RELIABLE AND CONSISTENT
FUNDING TO BE SUCCESSFUL. KELLI
LARSEN IS COMMITTED TO OUR
EXISTING INVESTMENTS, PLAYING A
ROLE IN ADDRESSING INCREASED
OPERATING COSTS AND PREPARED TO
ADDRESS A PORTION OF FUNDING IF
FEDERAL FUNDS ARE WITHDRAWN.
FORBUILDINGS WITH EXPIRED
AFFORDABILITY TERMS SUCH AS
OLDER OH FUNDED PROJECTS OR
ASPIRING TAX CREDIT, WE WILL
CONTINUE TO WORK WITH OWNERS AND
OPERATORS TO MAINTAIN
AFFORDABILITY AS FAR AS THE OH
CAPITAL DOLLARS CAN BE
EFFICIENTLY AND EFFECTIVELY
DEPLOYED . THEY WILL MAINTAIN
THE EXISTING DEVELOPMENTS TO
SUPPORT THE WORKFORCE AND
OPERATE A PHOTO HOUSING. THIS [
INAUDIBLE ] REDUCED THE NUMBER
OF VACANT POSITIONS. THIS IS
CRITICAL TO PROVIDE CONTINUITY
OF CARE AND LASTING
RELATIONSHIPS BETWEEN STAFF AND
RESIDENTS AND LEAD TO THE BEST
OUTCOMES FOR PEOPLE LIVING IN
SUPPORTIVE HOUSING. WE ARE
COMMITTED TO OPENING THE SUPPORT
OF HOUSING AND CURRENT PIPELINE,
ENSURING THAT IT OPERATES
SOUNDLY. WE WILL CONTINUE
WORKING WITH LOCAL AND REGIONAL
PARTNERS TO IDENTIFY RESOURCES
AND STRATEGIES TO FUND NEW
SUPPORT HOUSING . FINALLY, OH
WILL CONTINUE IMPROVING THE
UNDERWRITING CRITERIA FOR NEW
AND EXISTING PROJECTS TO RESPOND
TO CURRENT MARKET CONDITIONS AND
WILL CONTINUE EMPHASIZING
CAPITAL INVESTMENTS IN NEW HOMES
OR PEOPLE WITH VERY LOW INCOMES
, BELOW 50% OF THE MEDIAN INCOME
AND FOR FAMILIES. LOOKING AHEAD
, SPECIFICALLY AT THE ACTIONS WE
HAVE COMING BEFORE COUNCIL, THIS
IS THE REPORTS CALENDAR FOR
2026. RIVERA WILL SUBMIT
SEVERAL REPORTS THAT RESPOND TO
STATEMENTS OF LEGISLATIVE INTENT
IN QUARTER ONE. WE WILL REPORT
ON THE OPERATING AND CAPITAL
STABILIZATION INVESTMENTS THAT
HAVE BEEN FINALIZED OVER THE
LAST TWO MONTHS. URGENT OPERATE
STABILIZATION TOTALED 28 MILLION
AND CAPITAL STABILIZATION
TOTALED 57 MILLION. SO WE WILL
BE BRINGING MORE INFORMATION
ABOUT HOW THOSE DONORS LANDED IN
THE NEXT MONTH OR SO. IN QUARTER
TWO, TRIBUTE IF I WILL PROVIDE
ANNUAL REPORTS ON ALL
INVESTMENTS AS WE DO EVERY YEAR
. SO EVERY DOLLAR WE HAVE SPENT
WILL BE REPORTED ON.
THEMULTIFAMILY TAX EXEMPTION
PORTFOLIO, THE MANDATORY HOUSING
PORTFOLIO AND THE RELIGIOUS
PLANS WORK. WE WILL ALSO BE
UPDATING THE SEATTLE HOUSING
LESSON PLAN WHICH WAS CREATED
LAST YEAR AND SEMITIC ADDITIONAL
FORMATION ABOUT FUTURE
STABILIZATION NEEDS AND USE OF
PAYROLL EXPENSE TAX FUNDS.
FINALLY, WE ARE DEVELOPING A MAP
OF EXISTING OH INVESTMENTS TO
SHARE PUBLICLY ALONG WITH A NEW
DASHBOARD THAT WILL EDUCATE THE
PUBLIC ABOUT OH CAPITAL
INVESTMENTS IN PROCESS. MOVING
TO QUARTER THREE, TRANFOUR FIVE
WILL HAVE A REPORT ABOUT HOUSING
DIRECTOR, VACANCIES AND BARRIERS
FOR PEOPLE WITH VERY LOW INCOME
0-30% TO MOVE INTO VACANT
AFFORDABLE HOUSING . THEY ARE
ALREADY TALKING WITH FOLKS ABOUT
THIS AND IT WILL BE GREAT TO
HAVE THIS REPORT SUBMITTED TO
YOU ALL. AND LIKELY EARLIER,
TREADED FIVE RELEASE [ INAUDIBLE
] MILLION DOLLARS OF ASSISTANCE
PROVIDED BY A BUDGET PROVISO.
THIS SLIDE REPRESENTS THE
LEGISLATION PLAN FOR THE YEAR.
WE AIM TO TRANSMIT LEGISLATION
STARTING WITH QUARTER TWO AND WE
HOPE TO ACCEPT A PROPERTY
CURRENTLY OWNED BY THE
WASHINGTON STATE DEPARTMENT OF
TRANSPORTATION. THE STAGING OF
THE PROJECT AT MONTLAKE, THIS
DEPENDS ON A STATE CAPITOL
PREPARATION THAT WILL BE
CONSIDERED IN THE COMING MONTHS
. WE HOPE THAT THIS WILL BE
MOVING FORWARD. IN QUARTER
THREE, WE HAVE SEVERAL PIECES .
THE 2026 FOR LOT AND REDEVELOP
AND PLAN UPDATE. THE [ INAUDIBLE
] FOR THE MOUNT BAKER
REDEVELOPMENT SITES . TECHNICAL
UPDATES TO THE OFFICE OF HOUSING
FUNDING POLICIES THAT DRIVE OUR
WORK AND PROVIDE THE BOUNDARIES
FOR INVESTMENTS AND [ INAUDIBLE
] MILLION DOLLARS TO THE SEATTLE
NORTHGATE COMMONS PROJECT. IN
QUARTER FOUR, IT IS ALL ABOUT
HOMEOWNERSHIP. THE [ INAUDIBLE ]
SITE, WE WERE AIMING TO BE
TRANSFERRING THAT FROM SPU TO
OH. WE WILL -- WE MAY HAVE UP
TO FIVE OWNER SITES COMING
FORWARD THAT WILL BE EITHER
ACCEPTANCES OR OTHER ENTITIES OR
TRANSFERS BETWEEN OTHER CITY
DEPARTMENTS.
>> IT IS IMPORTANT TO UNDERSTAND
THAT SEATTLE IS NOT ALONE IN
FACING OPERATING AND COST
CHALLENGES AND AFFORDABLE
HOUSING SECTOR. MOST OF THE
COUNTRY FACES SYSTEMIC SHORTAGE
OF AFFORDABLE HOUSING. THERE IS
NO METRO AREA WITH AN INADEQUATE
SUPPLY OF AFFORDABLE AND
AVAILABLE HOMES FOR PEOPLE WITH
EXTREMELY LOW INCOMES. DECADESOF
OPTIMISTIC UNDERWRITING TO
STRETCH PUBLIC DOLLARS AS FAR AS
POSSIBLE FOR SUPPORT WILL
HOUSING DEVELOPERS TO DO MORE
WITH LESS. THERE WAS GOODREASON
FOR THIS , TO FOCUS ON NEW
PRODUCTION OF UNITS. BUT WE ARE
NOW SEEING NUMEROUS CHALLENGES
SURFACING FOR OLDER PROJECTS AND
CHANGE MARKET DYNAMICS THAT ARE
CHANGING HOW FORMAL HOUSING
COMPETES IN THE MARKET. THIS HAS
ALL BEEN COMPOUNDED BY
INCREASING INCOME AND EQUALITY,
THE PANDEMIC , A LABOR SHORTAGE,
INCREASING OPERATING AND
CONSTRUCTION COST AND FEDERAL
FUNDING CUTS . THESE NUMEROUS
AND COMPOUNDING FACTORS HAVE
CONTRIBUTED TO MAJOR AFFORDABLE
HOUSING PORTFOLIOS ENTERING
RECEIVERSHIP , INCLUDING SKIDROW
TRUST IN LA AND HARTLAND IN
CHICAGO. IN SEATTLE
SPECIFICALLY, PRODUCTION HAS
FOCUSED ON STUDIOS AND
ONE-BEDROOMS FOR SEVERAL YEARS .
THE SLOWED RENT GROWTH AND
INCREASED VACANCY FOR THE
SMALLEST APARTMENTS , AT THE
SAME TIME, THE AREA MEDIAN
INCOME INCREASED SIGNIFICANTLY.
LARGELY DRIVEN BY HIGHER INCOME
HOMEOWNERS. WHEN THE AREA
MEDIAN INCOME INCREASES, THE
AFFORDABLE HOUSING RENT ALSO
INCREASES . IN SEATTLE STUDIO ,
ONE-BEDROOM IN TWO BEDROOM
PRIVATE MARKET UNITS OVERALL
RENT AT LEVELS BETWEEN 60, AND
70% OF THE AREA MEDIAN INCOME
THIS IS VERY SIMILAR TO THE RENT
WE SEE AND A LOT OF AFFORDABLE
HOUSING. THIS CHART SHOWS HOW
HOUSING SUPPLY AND VACANCY
TRENDS IN SEATTLE -- SHOW
HOUSING SUPPLY AND VACANCY
TRENDS IN SEATTLE OVER THE LAST
DECADE. THE LARGEST GRAYBAR
REPRESENTS TOTAL UNITS, OPENING
CITYWIDE. WITHIN THOSE BARS, OH
FUNDED APARTMENTS SHOWN IN DARK
BLUE AT THE BOTTOM. S -- MSTE
RESTRICTED MARKET RENTAL UNITS
IN GREEN AND NON- TRIBUTE BY
FUNDED APARTMENTS IN YELLOW.
THESE ARE PRIMARILY TAX CREDIT
AND SEATTLE HOUSING AUTHORITY
PROPERTIES. SMALLER NUMBERS OF
OH FUNDED HOMEOWNERSHIP ARE
REPRESENTED IN ORANGE AND YOU
CAN SEE BLIPS OF IT IN 2022 AND
2025, WHICH WERE BIGGER OPENING
YEARS FOR HOMEOWNERSHIP
PROGRAMS. THE LINES ON THE CHART
REPRESENT VACANCY RATES. THE OH
FUNDED APARTMENT VACANCY RATE IS
REPRESENTED BY THE BLUE LINE AND
THE CITYWIDE AVERAGE VACANCY
RATE IS DISPLAYED WITH THE RED
LINE. THE HIGH GREEN LINE
REPRESENTS MFTE UNIT RESTRICTED
VACANCY. AND THE VACANCY RATE
OF OH FUNDED BUILDINGS IS
SIMILAR TO THE CITYWIDE VACANCY
RATE HOVERING AROUND 6-7% OVER
THE LAST FEW YEARS. AS YOU CAN
SEE HERE, THE CITYWIDE VACANCY
RATE HAS MOSTLY BEEN ABOVE 5%
OVER THE LAST DECADE WHILE THE
VACANCY RATE FOR OH FUNDED
APARTMENTS HAS INCREASED FROM A
LOW AROUND 3%, TO A HIGH JUST
ABOVE 7% IN THE LAST DECADE.
THERE ARE SEVERAL CAN TRIPPING
FACTORS HERE BUT WE BELIEVE
VACANCY IS LARGELY DRIVEN BY THE
SUPPLY CHANGES IN THE SEATTLE
MATURE REGION AND LIKELY WILL
DECREASE IN FUTURE YEARS.
>> THIS CHART SHOWS THE SUPPLY
OF DIFFERENT UNIT TYPES HAS
CHANGED OVER THE LAST 15 YEARS.
YOU CAN SEE THAT VIDEO , 40K,
40,000 AND ONE-BEDROOMS, ABOUT
20,000 APARTMENTS HAVE INCREASED
AT THE FASTEST PACE SINCE 2010.
SEATTLE HAS INCREASED THE NUMBER
OF TWO BEDROOM UNITS BY ABOUT
15,000 . BUT THE STOCK OF
LARGER APARTMENTS LIKE THREE
BEDROOMS OR MORE HAS RELATIVELY
REMAINED STAGNANT SINCE 2010.
>> NOW WE WILL TALK A LITTLE
BIT MORE ABOUT [ INAUDIBLE ]
SUPPORTIVE HOUSING. HOUSING IS
THE SOLUTION TO HOMELESSNESS AND
SUPPORTIVE HOUSING OR PSH
COMBINES VERBAL HOUSING WITH
ENHANCED SERVICES TO SERVE
PEOPLE WITH THE MOST COMPLEX
CHALLENGES SUCH AS BEHAVIORAL
HEALTH CHALLENGES, SERIOUS
PHYSICAL HEALTH CONDITIONS AND
FOLKS THAT ARE EXITING LONG-TERM
OR CHRONIC HOMELESSNESS. OH HAS
EVOLVED OVER 4300 SUPPORTIVE
HOUSING APARTMENTS AND PROVIDES
OPERATING MAINTENANCE SERVICES
SUPPORT TO OVER 1100 SUPPORTIVE
HOUSING APARTMENTS EACH YEAR.
SUPPORTIVE HOUSING AND
AFFORDABLE HOUSING HAVE SIMILAR
CONSTRUCTION COST BUT SUPPORTIVE
HOUSING REQUIRES DEEPER AND
LONGER-TERM SUBSIDIES TO PAY FOR
OPERATING COSTS AND WE BELIEVE
THE BRING MAINTENANCE AND
SERVICES PACKAGE IS WHAT REALLY
MAKES THESE BUILDINGS [
INAUDIBLE ] OMS ENSURES
SUPPORTIVE HOUSING CAN
EFFECTIVELY SERVE THE PEOPLE
LIVING THERE AND ALLOW FOR
RESIDENTS TO LIVE SUCCESSFULLY
FOR YEARS IN SUPPORTIVE HOUSING.
OPERATING AND SERVICES COST OF
INCREASE FOR ALL AFFORD WILL
HOUSING OVER THE LAST DECADE BUT
YOU CAN SEE HERE, THEY HAVE ALSO
INCREASED FOR SUPPORTIVE
HOUSING. IN 2013, THE OMS
OPERATING MAINTENANCE AND
SERVICES COST FOR SUPPORTIVE
HOUSING WERE PRIMARILY COVERED
BY VOUCHERS FROM THE SEATTLE
HOUSING AUTHORITY IN THE DARKER
GREEN AND THE FEDERAL CONTINUUM
OF CARE FUNDS OR THE [ INAUDIBLE
] THAT YOU HAVE HEARD A LOT
ABOUT IN RECENT MONTHS. ALSO,
KING COUNTY WAS A MAJOR FUNDER
OF SUPPORTIVE HOUSING BACK IN
2013 REPRESENTED BY THE LIGHTER
GREEN. SEATTLE PROVIDED A VERY
SMALL PORTION OF OMS A DECADE
AGO WITH A REALLY SMALL PER UNIT
CONTRIBUTION FROM THE SEATTLE
HOUSING LEVY OPERATING AND
MAINTENANCE PROGRAM. THAT
REALLY STARTED TO CHANGE IN
2022. PARTICULARLY IN THE LAST
FIVE YEARS, FUNDING STREAMS HAVE
CHANGED BECAUSE LOCAL FUNDERS
ARE CAN TRIPPING A HIGH
PERCENTAGE OF THE BUDGETS. IN
2022, WE OPEN SUPPORT OF HOUSING
WITH ACCOMMODATION OF SEATTLE
JUMPSTART EXPENSE TAX FUNDS
REPRESENTED IN BLUE. THE GREEN
PROJECT IN THE MIDDLE IS A KING
COUNTY HELP THEIR HOUSING SALES
TAX PROJECT AND ON THE RIGHT, IS
A MIX OF STATE COMMERCE FUNDS
THAT COME FROM THE DOCKET
RECORDING FEES IN THE FEDERAL
COC FUNDS CAME IN TO THE PROJECT
AND SEATTLE FUNERAL EXPENSE TAX.
MOVING TO THE FAR RIGHT IN 2026,
THE THREE MOST RECENT SUPPORTIVE
HOUSING PROJECTS OUR REGION,
SEATTLE IS PROVIDING A MAJORITY
OF THE OMS FUNDS ENTIRELY FUNDED
BY JUMPSTART [ INAUDIBLE ] TEXT
WITH LOWER AMOUNTS FROM COUNTY
AND STATE COMMERCE. THERE WAS A
STATE BUDGET CUT THAT OCCURRED
LAST YEAR THAT EXACERBATED THE
FUNDING CHALLENGE. THESE
OBLIGATIONS FOR OMS WILL
CONTINUE ON EVERY YEAR AS LONG
AS THESE BUILDINGS ARE OPERATING
. YOU CAN SEE THESE THREE
BUILDINGS IN 2026 HAVE NO FUNDS
. THIS WAS A REALITY BEFORE
2025 AS FEDERAL FUND RETRACTION
STARTED SEVERAL YEARS AGO.
BECAUSE STATE, COUNTY AND CITY [
INAUDIBLE ] ARE STRUGGLING WITH
BUDGET SEVERAL AND WITH MAJOR
FEDERAL FUNDING , THERE ARE
CONCERNS ABOUT FUTURE FUNDING
AVAILABILITY OR ANY NEW
PROJECTS. OH IS FORTUNATE TO
HAVE A STABLE FUNDING FORCE WITH
THE SEATTLE HOUSING LEVY AND THE
GEMSTAR PAYROLL EXPENSE TAX .
MANDATORY HOUSING AFFORDABLY
PAYMENTS ALSO PROVIDED ENORMOUS
SUPPORT TO OUR OFFICE TO
CONTINUE BUILDING NEW HOMES,
PRESERVING THE HOMES WE HAVEN'T
OPERATING THESE EXISTING
SUPPORTIVE HOUSING PROJECTS.
>> THIS IS ANOTHER VIEW OF WHAT
[ INAUDIBLE ] LOOKS LIKE RIGHT
NOW. SO DUE TO MULTIPLE
GOVERNMENT BUDGETSFACING
DEFICITS AND FEDERAL FUNDING AND
UNCERTAINTY, THERE ARE RISKS
AHEAD FOR EXISTING OMS FUNDS IN
THE SEATTLE SUPPORTIVE HOUSING
PORT FOLIO. THE LAST OF THE
CONTINUUM OF CARE FUNDS IS A
SERIOUS CONCERN. THIS
GRAPHICSHOWS THE CURRENT COC
SUPPORTIVE HOUSING PORTFOLIO AND
THE OMS FUNDING MIX WITH SEATTLE
AND BLUE AND THE HOUSING
AUTHORITY IN PINK, KING COUNTY
AND GREEN, STATE COMMERCE IN
YELLOW AND THE FEDERAL COC FUNDS
IN BLACK. ALL OF THESE FUNDS
HAVE BEEN PUT TOGETHER OVER MANY
YEARS TO PUT TOGETHER THESE OMS
PACKAGES. THE CHART CONTEMPLATES
A 40% REDUCTION OF COC FUNDS FOR
2027 AND THERE MIGHT BE A LARGER
PACK IN 2028 AND BEYOND. IF
THERE IS A 40% CUT TO COC FUNDS
IN 2027, WE ESTIMATE IT WILL
IMPACT SEATTLE PROJECTS IN
APPROXIMATELY $19 MILLION.
THATCAP COULD GROW IN 2028 AND
FURTHER BEYOND DEPENDING ON HOW
THE ACTION IS. AND I WILL WRAP
APPEAR WITH A SECTION ON INCOME,
RENT AND COST PER UNIT.
>> AREA MEDIAN INCOME, WHICH H,
IN WHICH SEATTLE USES TO SET
RENT , HAS INCREASED BY 64% IN
THE LAST EIGHT YEARS. LARGELY
DRIVEN BY THE TOP 20% OF HIGHER
INCOME EARNERS AND HOMEOWNERS.
WIN HAVE ANOTHER HOUSING AGENCY
SET RENT CHARTS ON THIS AM I
CHART. THE AM I CHART
INCLUDESTHE ENTIRE POPULATION
FROM PEOPLE WITH EXTREMELY LOW
INCOME, TO EXTREMA -- TO PEOPLE
WITH EXTERNALLY HIGH INCOME.
WHEN NEW HOMEOWNERS [ INAUDIBLE
] THE REALITY OF THESE TWO
GROUPS IS VERY DIFFERENT. RENTER
INCOME IS MUCH LOWER THAN OWNER
INCOME. YOU CAN SEE HERE
THATOWNER HOUSEHOLD INCOME ARE
MORE THAN DOUBLE THE HOUSEHOLD
INCOME OF RENTERS. SEPARATING
THESETWO GROUPS, YOU CAN SEE THE
DIFFERENCE WITH HOMEOWNERS
EARNING ABOUT 200,000 PER YEAR
AND RENTERS EARNING ABOUT 87,000
PER YEAR. THIS IS VERY IMPORTANT
DATA FOR US TO CONSIDER AS WE
ARE SETTING FUTURE POLICY
INVESTMENTS AND ESTABLISHING
RENT INCOME LIMITS FOR NEW
HOMES. YOU CAN SEE SPECIFIC
INCOME STORIES OF SEATTLE AND
KING COUNTY RESIDENTS AND WHAT
INCOME LIMITS THEY WOULD QUALIFY
FOR. OFTEN TIMES, PEOPLE MAKE
ASSUMPTIONS ABOUT WHO THE [
INAUDIBLE ] PEOPLE ARE AND ALSO
WHAT PERCENTAGE AM I MEETS. AND
THIS HELPS TO SHOW SOME OF THE
REAL STORIES BEHIND THESE
LABELS. STARTING ON THE LEFT,
CHILDCARE WORKERS OR PEOPLE
UNEMPLOYED IN A HOUSEHOLD WITH A
PART-TIME PHYSICAL THERAPY AIDE
AND A PART-TIME RETAIL WORKER
WOULD ALL FALL UNDER 30% OF AREA
MEDIAN INCOME. PEOPLE ON FIXED
INCOMES LIKE SOCIAL SECURITY
DISABILITY AND PEOPLE
EXPERIENCING HOMELESSNESS OFTEN
WILL QUALIFY BELOW 30% OF AMI AS
WELL. MOVING TO THE MIDDLE PART
OF THE CHART, A SUBSTITUTE
TEACHER OR HOUSEHOLD WITH A
CASHIER AND VETERINARY ASSISTANT
ARE EXAMPLES OF JOB TYPES THAT
FULL IN THE RANGE OF 31%, TO 50%
OF AREA MEDIAN INCOME. THEREARE
MANY TYPES OF JOBS THAT FALL IN
THIS RANGE BETWEEN 40-60% OF
AREA MEAN INCOME AND THAT HAS
REALLY CHANGED IN THE LAST 5-10
YEARS . FINALLY, TRANSIT DRIVERS
OR A HOUSEHOLD WITH A NURSING
ASSISTANT IN A CONSTRUCTION
WORKER WOULD HAVE INCOME IN THE
RANGE OF 51-80% OF AMI. THIS IS
ANOTHER IMPORTANT VIEW OF MEDIAN
INCOME WHICH WE ARE THANKFUL TO
CHAIR FOSTER FOR ELEVATING. THIS
CHART SHOWS 2024 MEDIAN INCOME
IN SEATTLE BY RACE . THE DOTTED
LINE ACROSS THE MIDDLE SHOWS THE
50% WIND TO FIGUREJUST ABOVE
$60,000 PER YEAR. YOU CAN SEE
THERE ARE SIGNIFICANT RACIAL
DISPARITIES IN INCOME OCCURRING
FOR PEOPLE IN SEATTLE. BLACK AND
INDIGENOUS HOUSEHOLDS HAVE
INCOME BELOW 50% OF AREA MEDIAN
INCOME. THIS IS AN IMPORTANT
DATA FOR HOUSING FUNDERS TO
CONSIDER AND MAKING NEW HOUSING
INVESTMENTS AND ESTABLISHING
RENT LIMITS FOR NEW AFFORDABLE
HOMES. WE MUST ASK WHO WE ARE
BUILDING HOUSING FOR. THIS
GRAPHIC REPRESENTS A BROADER
VIEW. OF THE SEATTLE HOUSING
NEEDS AND EXISTING EFFORTS.
SEATTLE NEEDS 112,000 HOMES 2044
AS THE CITY GROWS. THE GREEN
REPRESENTS AFFORDABLE AND COVER
CIRCUIT HOUSING IN THE GREAT
REPRESENTS THE PRIVATE MARKET
UNRESTRICTED HOUSING. YOU
CANSEE THERE IS A BLENDING OF
COLORS AND INGREDIENT FROM
GREEN, TIGRE AS THERE IS
OVERLAPPING AND MIXING THAT
OCCURS IN THE 40-60% AMI
HOUSING. IT IS IMPORTANT TO
NOTE THAT THE GREATEST NEED FOR
AFFORDABLE HOUSING IS AT THE
LOWEST INCOME LEVELS. 0-30%
OFMEDIAN INCOME FOR SUPPORTIVE
HOUSING AND AFFORDABLE HOUSING.
AT THE BOTTOM, THE MULTIFAMILY
TAX EXEMPTION PORTFOLIOS ARE
PRESENTED IN YELLOW, TIGRE .
AND FTE APPLIES TO AN ENTIRE
BUILDING WITH 20-25% INCOME
RESTRICTED RENT AND YOU CAN SEE
THOSE IN YELLOW. THERE IS
ABLEND HERE AS WELL, UP TO THE
REMAINDER OF THE MFTE BUILDING
THAT IS UNRESTRICTED AND GRAY.
AND THIS ALSO OVERLAPS AND MIXES
BETWEEN RESTRICTED AND
UNRESTRICTED DEPENDING ON UNIT
TYPE, AGE OF THE BUILDING AND
THE NEIGHBORHOOD. RED DOTTED BOX
IS TO SHOW THE OVERLAP BETWEEN [
INAUDIBLE ] FUNDED UNITS AT
40-60% AMI AND MFT E UNITS OF
40-60% OF AMI. AND THERE IS
UNRESTRICTED RENT IN THE [
INAUDIBLE ] WHILE SEATTLE DOES
HAVE SOME EVENT HOUSING NEEDS,
IS IMPORTANT TO NOTE THE CITY
HAS MADE GREAT PROGRESS BUILDING
NEW HOUSING IN THE LAST DECADE
AND LEADS THE WAY FOR THE REST
OF THE REGION. BUT WE HAVE MORE
TO DO. THIS IS ANOTHER VIEW OF
THE SHORTAGE OF AFFORDABLE AND
AVAIL HOUSING UNITS FOR PEOPLE
WITH THE LOWEST INCOMES . HERE,
THE MISMATCH BETWEEN RENT AND
INCOME IN SEATTLE CAN BE SEEN
WITH ACTUAL HOUSEHOLD INCOME
REPRESENTED BY THE DARK BLUE
BARS ON THE LEFT AND AVAILABLE
HOUSING STOCK SHOWN BY THE WHITE
BLUE BARS ON THE RIGHT. WE HAVE
LESS THAN HALF OF WHAT IS NEEDED
FOR HOUSING AFFORDABLE TO PEOPLE
AT 0-30% OF AMI FOR EXTREMELY
LOW INCOME HOUSEHOLDS. AND YOU
CAN SEE THERE IS A SURPLUS OF
HOUSING AFFORDABLE FOR
HOUSEHOLDS BETWEEN 50-100 OF
AREA 80 AND INCOME.
>> SEVERE HOUSING COST BURDEN
MEANS THAT SOMEONE IS SPENDING
MORE THAN 50% OF THEIR INCOME
TOWARD HOUSING COST WHICH LEAVES
THEM WITH LESS MONEY AVAILABLE
FOR OTHER NECESSITIES LIKE FOOD
, HEALTHCARE AND PAYMENTS ON
DEBT. THIS MEANS HOUSING COSTS
ARE BURDENING THE HOUSEHOLD
BUDGETS. YOU CAN SEE THE LOWEST
INCOME RENTERS HAVE THE HIGHEST
RATES OF SEVERE HOUSING COST.
60% OF PEOPLE WITH THE LOWEST
INCOME IN SEATTLE ARE SEVERELY
COST [ INAUDIBLE ] AND PAY MORE
THAN 50% OF THEIR INCOME TOWARD
THE HOUSING COST. IT IS
GENERALLY BELIEVED THAT RENTERS
EXPANSIVE SEVERE HOUSING COST
BURDEN ARE THOSE MOST AT RISK OF
EVICTION, DISPLACEMENT AND
HOMELESSNESS. THIS DEMONSTRATES
WHY OH PRIORITIZES INVESTMENTS
FOR HOUSEHOLDS BELOW 30% OF
MEDIAN INCOME. RECALLING THE
EARLIER CHART , IMPORTANT TO
REMEMBER THAT THESE FOLKS THAT
30-40% OF AMI ARE CHILDCARE
WORKERS. BOTH UNEMPLOYED AND
PART-TIME WORKERS. THEY ARE
ALSO SENIORS AND PEOPLE WITH
DISABILITIES.
>> THIS PRESENTS ANOTHER VIEW
OF THE RACIAL DISPARITIES
OCCURRING IN THE SEATTLE HOUSING
MARKET . BLACK HOUSEHOLDS ARE
MORE COST BURDEN THAN WHITE
HOUSEHOLDS AND BLACK APOSTLES
ARE MORE LIKELY TO BE RENTERS --
THE DISPARITIES ARE SIGNIFICANT
FOR BLACK AND LATINO HOUSEHOLDS
WITH 56% OF BLACK HOUSEHOLDS
EXPERIENCING HOUSING COST BURDEN
AND 48% OF HISPANIC OR LATINO
HOUSEHOLDS EXPERIENCING HOUSING
COST BURDEN. AND THAT CONCLUDES
OUR PRESENTATION. HAPPY TO TAKE
QUESTIONS.
>> THANK YOU. EXCUSE ME. THANK
YOU SO MUCH, WIND FIVE AND ROSEY
ZHOU AND THE OH TEAM FOR ALL THE
WORK YOU PUT INTO THE
PRESENTATION. WE ARE WORKING ON
GETTING THE SCREEN BACKUP. THERE
WE GO. I APPRECIATE IT.
COLLEAGUES, I KNOW WE ARE
BLENDED ON ZOOM AND IN PERSON
HERE IN THE CHAMBERS TODAY. JUST
ASK THAT YOU USE THE RAISE HAND
FUNCTION TO ASK ANY QUESTIONS
YOU MAY HAVE. THERE ARE A COUPLE
OF COMMENTS I WILL MAKE.
COLLEAGUES, I WILL GIVE YOU THE
OPPORTUNITY TO ASK THOSE
QUESTIONS FIRST GIVEN THAT WE
HAVE ANOTHER PRESENTATION TO
FOLLOW THIS ONE.
>> COUNCILMEMBER RINCK.
>> THANK YOU, CHAIR AND
THANKEACH OUR COLLEAGUES AT THE
OFFICE OF HOUSING FOR PROVIDING
TODAY'S PRESENTATION. YOU
COVERED A LOT OF GROUND. THERE
IS A LOT HAPPENING IN THE REALM
OF HOUSING AND I THINK YOU
TACKLE THE VARIOUS COMPLEXITIES
FACING OUR AFFORDABLE HOUSING
LANDSCAPE REALLY WELL. SO
THANKYOU FOR BEING AT THE
COMMITTEE TODAY AND WALKING US
THROUGH A LOT OF THIS. I HAVE A
COUPLE OFQUESTIONS. I WILL
START WITH THIS SPECIFIC AND
THEN ZOOM OUT TO TALK A LITTLE
BIT HOLISTICALLY ABOUT HOW WE
ARE APPROACHING AND ADDRESSING
DEFERRABLE HOUSING NEEDS AND OUR
CITY. GETTING A LITTLE BIT
SPECIFIC FIRST TAKING US TO
SLIDE 15. I JUST WANTED TO TAKE
A QUICK BEAT TO CLARIFY ONE
PIECE. I SEE HERE IT HAS THE
REPORTING BACK ON THE 6
MILLION-DOLLAR PROVISO FOR
RENTAL ASSISTANCE IN QUARTER
FOUR. CAN YOU CLARIFY THE
TIMELINE RIGHT NOW THAT OH IS
WORKING UNDER TO GET THE DOLLARS
OUT THE DOOR?
>> WE TYPICALLY DON'T REPORT
BACK ON A PROVISO. I PUT THIS
IN QUARTER FOUR, ASSUMING WE
WILL ACTUALLY BE SPENDING THIS
MONEY MUCH EARLIER. IT IS OUR
PLAN TO MOVE THIS AS QUICKLY AS
WE CAN . WE ARE WORKING ON IT .
WE JUST GOT WRAPPED UP WITH THE
URGENT OPERATING STABILIZATION
FUNDING RELEASE AND THE NOFA AND
ARE LOOKING FORWARD TO WORKING
WITH MY PARTNERS TO DECIDE HOW
TO ALLOCATE THE 6 MILLION. WE
WILL DO IT AS QUICKLY AS THEY
CAN .
>> APPRECIATE THAT. THANK YOU.
THAT WAS CERTAINLY COUNCIL'S
INTENT, HEARING THE URGENCY
ACROSS THE AFFORDABLE HOUSING
PARTNERS SO LOOK FORWARD TO
GETTING UPDATES ON THAT. AND
THEN ON SLIDE 18, I SEE WHERE
YOU ARE EXPECTING AN $18 MILLION
GAP BY 2028 IN PERMANENT
SUPPORTIVE HOUSING FUNDING.
CANYOU DIG INTO WHAT WE CAN
EXPECT TO SEE IN SEATTLE ?
OPTIONS ON THE TABLE FOR ACTION
AND WHAT IS BEING DONE RIGHT NOW
ON THE PART OF THE OFFICE OF
HOUSING TO PREPARE ?
>> THERE HAVE BEEN SEVERAL
MEETINGS. THANK YOU TO
COUNCILMEMBER RINCK FOR YOUR
LEADERSHIP. WE HAVE BEEN
TALKING WITH A LOT OF OUR
FUNDING PARTNERS ABOUT HOW WE
ALL WORK TOGETHER TO ADDRESS
THIS CHALLENGE IF IT COMES TO
PASS WITH THESE FEDERAL COC
FUNDS BEING REDUCED OR CUT.
ANDI THINK EVERYONE IS PLAYING A
PART IN PLANNING AHEAD. SET
ASIDE FUNDS AND BE READY.
THEOFFICE OF HOUSING IS PLAYING
A ROLE IN THIS AS WELL BECAUSE
WE ARE FORTUNATE TO HAVE THE
EXPENSE TAX. WE DO HAVE A
LIMITED POT OF FUNDS IN THE
BUDGET, WHICH AIMS TO DO -- AND
[ INAUDIBLE ] TO DO A LOT OF
THINGS EVERY YEAR. BUILD NEW
HOMES AND RESERVE HOMES. IN
ORDER TO MEET HOUSING LEVY GOALS
NOW BECAUSE HOUSING HAS
INCREASED SO SIGNIFICANTLY AND
WE ARE SPENDING IT MORE AND
MORE, HIGHER PERCENTAGE ON
OPERATING MAINTENANCE AND
SERVICES, EXTENSIVE AND CURRENT
SUPPORTIVE HOUSING . THERE IS A
SET ASIDE IN THE CURRENT [
INAUDIBLE ] BUDGET TO PROTECT
AGAINST COC CUTS.
>> THANK YOU FOR YOUR
PARTNERSHIP AT THAT TABLE. TO
TRY TO SORT OUT HOW WE ARE
PLANNING TO ADDRESS THE LOSS IN
THE CONTINUUM OF CARE FUNDING. I
KNOW WE NEED TO BE WORKING
TOWARD A STRUCTURAL SOLUTION TO
BE ABLE TO MAINTAIN THE
PERMANENT SUPPORTIVE HOUSING
THAT WE HAVE AND ALSO BE VERY
CLEAR THAT WE NEED MORE
PERMANENT SUPPORTIVE HOUSING TO
REALLY MEET THE NEEDS AND OUR
REGION. AND I JUST WANTED
TOMAKE A HOLISTIC COMMENT TO
CHAIR RELATED TO ALL OF THIS.
THESE ARE CONCERNING GRAPHS TO
LOOK AT, WHEN WE LOOK AT THE
CHALLENGES FACING , WHAT COMES
TO MEETING THE NEEDS OF OUR
RESIDENTS. AND PARTICULARLY
STUCK ON SLIDE 24. AGAIN,
LOOKING AT THE CHART AND SEEING
THE CITY OF SEATTLE CONTRIBUTION
TO THESE PROJECTS. I JUST WANT
TO ACKNOWLEDGE THAT FOR THE
RECORD AND I MIGHT CHIME IN
LATER IN THE DISCUSSION IF THAT
IS OKAY AS WE CONTINUE ON BUT I
WILL CONCEDE MY TEMPER NOW.
THANK YOU, CHAIR.
>> THANK YOU
COUNCILMEMBERRINCK. I SEE THAT
COUNCILMEMBERLIN HAS A HAND. I
WOULD YOU FOLLOW-UP WITH WHAT
KELLY SAID. THIS IS ONE OF THE
MOST IMPORTANT TAKEAWAYS I
WANTED TO ELEVATE FROM THE
PRESENTATION TODAY . THE
INCREASING IMPORTANCE OF THE
PAYROLL EXPENSE TAX IN MEETING
OUR HOUSING LEVY GOALS. IT IS MY
UNDERSTANDING, COLLEAGUES, THAT
WE NEED TO BE UTILIZING ABOUT
$40 MILLION ANNUALLY IN PAYROLL
EXPENSE TAX IN ORDER TO COVER
THE GOALS AND OUR HOUSING LEVY
RIGHT NOW. AND SO WHEN WE THINK
AND WE LOOK AT THESE CHARTS ,
AND WE CAN SEE IN CHART 24, THE
FUNDING MIX FOR THESE HOUSING
PROJECTS THAT WERE BROUGHT
ONLINE THIS YEAR, WE SEE
SEATTLE. THAT IS AN INCREASINGLY
-- BOTH THE HOUSING LEVY AND THE
PAYROLL EXPENSE TAX. I KNOW
THAT HASBEEN A FUND THAT HAS
BEEN TAPPED INTO IN PREVIOUS
YEARS FOR OTHER PROJECT AND FOR
HELPING TO COVER GAPS IN THE
GENERAL FUND. I WANT TO MAKE
SURE IT IS ON COUNCIL'S RADAR
AND ON THE PUBLIC'S RADAR HOW
THE INCREASING IMPORTANCE OF
THAT FUND TO MAKE SURE WE ARE
STAYING ON TRACK WITH THE GOALS
WE HAVE RIGHT NOW . SO THANK
YOU FOR THAT. KELLY, DO YOU
WANT TO ADD ANYTHING TO THAT
STATEMENT THAT I HAD BEFORE I
PASS IT OVER TO COUNCILMEMBER
LIN FOR HIS QUESTIONS?
>> NO. THAT WAS GREAT. WE SAW [
INAUDIBLE ] WHEN IT FIRST
STARTED COMING THROUGH IN 2022.
IT HAS BEEN PRETTY STABLE AND
STEADY FOR THE LAST TWO YEARS.
AS COSTS CONTINUE TO GROW, WE
CAN DO LESS WITH THE SAME AMOUNT
OF HONEY AS IT COST MORE PER
UNIT TO BUILD AND MORE PER UNIT
TO OPERATE.
>> THANK YOU. I THINK THAT IS
AN IMPORTANT POINT TO MAKE ,
THAT WE ARE BEING DRIVEN BY THE
INCREASING COST OF BRINGING
HOUSING ONLINE WHICH IS WHAT IS
CAUSING US TO NEED TO YOU
UTILIZE THOSE DOLLARS.
COUNCILMEMBER LIN.
>> THANK YOU. SO EXCITED TO SEE
OFFICE HOUSING PARTNERS HERE
TODAY AND TO FOLLOW THIS UP WITH
THE SOCIAL HOUSING DEVELOPER .
JUST VERY EXCITING TODAY TO TALK
ABOUT WHAT I THINK IS JUST
PERHAPS THE MOST IMPORTANT ISSUE
FOR OUR CITY RIGHT NOW , HOUSING
AFFORDABILITY. AND I HEARD YOU
SAY, KELLY, EARLY ON, THAT
HOMELESSNESS IS A HOUSING
PROBLEM. JUST WANTED TO
SEETHOSE HEAR A LITTLE BIT MORE
, IF YOU HAVE ANY THOUGHTS ABOUT
THAT . AND JUST THE RELATIONSHIP
OF THE WORK OF THE OFFICE OF
HOUSING WITH OUR COMPREHENSIVE
PLAN. IF YOU HAVE ANY KIND OF
IDEAS AROUND NOT. FOR ME, AS HE
LOOKED AT SLIDE, I THINK 30, WE
NEED 112,000 HOMES ACROSS THE
INCOME SPECTRUM. OBVIOUSLY,
IDON'T THINK THE MARKET IS EVER
GOING TO PRODUCE 0-30% AMI. BUT
WE HAVE TO PRODUCE A WHOLE
RANGE. AND IF WE ARE NOT
PRODUCING THE HIGHER END, THAT
ALSO I THINK AFFECTS OUR WHOLE
HOUSING SORT OF SPECTRUM . IF
WE ARE MAKING IT TOO EXPENSIVE
TO BUILD. SO IF YOU HAVE ANY
THOUGHTS IN GENERAL ABOUT , YOU
KNOW, HOW WE CAN SORT OF ADDRESS
HOUSING BARRIERS TO HOW
EXPENSIVE IT IS TO BUILD . JUST
, YES, I WILL LEAVE IT THERE .
>> BROAD TOPICS. I WILL DO MY
BEST. WE CERTAINLY DOES YOU
KNOW, THE OFFICE OF HOUSING, WE
HAVE LOOKED AT A LOT OF THE DATA
AND MAPS AND ZONING POSSIBLE FOR
THE TYPES OF PROJECTS WE BUILD
WHICH ARE TYPICALLY MIDRISE. WE
ESTIMATE WE CAN BUILD A FORT OF
HOUSING AND ABOUT 3% OF THE
CITY. SO ZONING REALLY MATTERS.
ZONING MATTERS FOR HOUSING OF
ALL TYPES AND SO THIS IS A HUGE
PART OF THE HOUSING PLAN THAT
THE OFFICE OF HOUSING DOES NOT
CONTROL BUT OUR PARTNERS OF [
INAUDIBLE ] AND OTHERS IN THE
CITY ARE CONTRIBUTING
SIGNIFICANTLY TO THE COMP PLAN
CHANGES IN REFORMS THAT ARE
REALLY NECESSARY AND SIGNIFICANT
FOR THE HOUSING MARKET OVERALL.
IN ADDITION, PERMITTING REFORMS
PERMITTING FORMS AND SPEEDING UP
THE DEVELOPING PROCESS AND
INFRASTRUCTURE AND ALL THAT
CONTRIBUTES TO DELAYS THAT END
UP COSTING MORE AND THEN COST.
ACTUAL HARD COST THAT ADD TO
PROJECTS , BUDGETS AND MAKE THEM
LESS FEASIBLE. INTEREST RATES
ARE HUGE RIGHT NOW AND DRIVING A
LOT OF BARRIERS THAT ARE KEEPING
YOU HOUSING FROM COMING ONLINE
AND IT AFFECTS OUR PROJECTS TOO.
THERE IS A LOT WITHIN THE
CITY'S CONTROL THAT YOU CAN DO
, TO SUPPORT NEW HOMES COMING
ONLINE ACROSS THE BOARD FROM
ZERO, TO 120 AND ABOVE AMI .
>> THANK YOU.
>> ANY FURTHER QUESTIONS
COUNCILMEMBER LIN? I SEE YOUR
HAND DOWN. COUNCIL PRESIDENT
HOLLINGSWORTH, I SAW YOUR HAND
UP THERE FOR A SECOND. DID YOU
STILL HAVE A QUESTION ?
>> TAKE YOU, CHAIR. THAT WAS AN
INADVERTENT HAND. THANK YOU.
>> COLLEAGUES, I WILL DRAW YOUR
ATTENTION TO A COUPLE OF THINGS
BRIEFLY PRIOR TO US MOVING ON TO
THE PRESENTATION FROM THE SOCIAL
HOUSING DEVELOPER. ONE IS, I
WILL SORT OF START A BIT FROM
THE END . IT JUST -- PLACES I
WANT TO DRIVE HOME. KELLY, YOU
DID A FANTASTIC JOB BUT I JUST
CANNOT HELP MYSELF. ON SLIDE
29, I REALLY WANT US TO
UNDERSTAND THAT WHEN WE ARE
TALKING ABOUT HOMES THAT ARE
BUILT 50% AMI, WHERE THOSE LINE
UP WITH JUST THE MEDIAN INCOME
FOR BLACK HOUSEHOLDS AND FOR
NATIVE HOUSEHOLDS. WHAT WE
SEEIN THIS SLIDE IS 50% AMI THAT
THE MEDIAN INCOME FOR BLACK
HOUSEHOLDS AND NATIVE HOUSEHOLDS
IS UNDER 50% AMI. I WANT TO
DRAW AND CONNECT THESE DOTS FROM
THIS SLIDE OVER TO ANYTHING
ABOUT AREAS AND WE HAVE
MISMATCHED RENT OR AREAS WHERE
WE ARE LACKING IN THE PRODUCTION
OF AFFORDABLE HOUSING .
BELOW50% AREA MEDIAN INCOME.
WHAT THAT MEANS FOR OUR GOALS
AND WE ARE TRYING TO INTEGRATE
AROUND RACIAL EQUITY IN BUILDING
A CITY THAT CONTINUES TO BE
DIVERSE AND A CITY THAT DOES
WERE BLACK FAMILIES AND NEEDY
FAMILIES AND VILLAS OF COLOR CAN
AFFORD TO LIVE. I CANNOT
UNDERSCORE THISENOUGH AS WE ARE
THINKING ABOUT HOLISTICALLY ,
OUR GOALS. AND NOT JUST HOW MUCH
HOUSING WE ARE BUILDING BUT WHO
WE ARE ABLE TO BUILD HOUSING FOR
. THANK YOU SO MUCH, OH, FOR
YOUR WORK BEING RESPONSIVE AND
CREATING THAT SLIDE THAT BRINGS
THAT TO THE FOREFRONT. THE OTHER
THING I WANT TO BRING TO THE
FOREFRONT, AND KELLY, I WILL
KICK IT OVER TO YOU A LITTLE
BIT. IT'SRETURNING TO THE
VACANCIES LIKE . I KNOW IT WAS
REPORTED IN SOME PLACES THAT THE
VACANCY RATE WAS CLOSER TO 11%.
I DON'T SEE THATREFLECTED IN
THIS SLIDE HERE. CAN YOU JUST
CLARIFY THAT FOR US?
>> YES. YOU BET. THE OFFICE, WE
ARE WORKING ON SOME MATERIALS --
WILL SHARE THIS SO EVERYONE CAN
SEE. MATERIALS AND A NARRATIVE
TO REALLY ADDRESS THE VACANCY
ISSUE . BUT THE NUMBER THAT WAS
REPORTED IN THE SEATTLE TIMES
WAS NOT VACANCY RATE FOR THE
OFFICE OF HOUSING PORTFOLIO .
AND IT WAS ACTUALLY A MEASURE OF
APPOINTMENT TIME RATHER THAN A
PERIOD OF TIME. THE VACANCY
RATES WE ARE REPORTING HERE ARE
ANNUAL VACANCY RATES WHICH
REPRESENT THE NUMBER OF DAYS
OVER THE COURSE OF THE YEAR THAT
HAVE BEEN IS AN EMPTY APARTMENT.
THE NUMBER OF REASONS VACANCIES
OCCURRED. VACANCY DOES
NOTNECESSARILY MEAN THAT A QUILT
IS ON A BED AND SOMEONE IS READY
TO MOVE-IN. OFTEN OFTEN TIMES,
IT IS ABOUT THE UNIT BEING IN
THE PROCESS OF BEING TURNED .
SOTHERE IS PAINTING AND
REPLACEMENT OF FIXTURES AND
BRINGING IN NEW FURNITURE
HAPPENING . THERE ARE REPAIRS.
THERE CAN BE A WAIT FOR
MAINTENANCE AND SUBCONTRACTORS
IN THIS ENVIRONMENT WE ARE IN
RIGHT NOW . THERE IS MORE
SIGNIFICANT DAMAGE PEOPLE ARE
STILL DEALING WITH FROM THE
PANDEMIC WITH FOLKS INSIDE A
LOT. THERE IS A LOT GOING ON IN
THE VACANCY RATES. EVERY VACANCY
STORY IS UNIQUE AND IT IS QUITE
SOMETHING. BUT ACROSSTHE
PORTFOLIO , THIS IS THE TRUTH OF
THE VACANCY. IS RIGHT AROUND6%
RIGHT NOW AND THE OH PORTFOLIO,
7% MEAN AND THE MEDIAN IS
ACTUALLY BELOW 5% . IT IS 4.7,
LAST WE LOOKED. THIS IS MUCH
MORE IN LINE WITH THE CITYWIDE
VACANCY. WE WOULD LIKETO SEE IT
CLOSER DOWN TO THREE IF WE CAN
GET THERE . BUT IT IS NOT REALLY
OUT OF RANGE ARE OUT OF WHACK
FROM THE WAY THAT OTHERS ARE
OPERATING IN THE CITY RIGHT NOW.
>> THANK YOU. MY FINAL PIECE I
WILL DRAW ATTENTION TO SO WE
HAVE TIME FOR THE SECOND
PRESENTER IS YOU TALKED A LITTLE
BIT AT THE BEGINNING OF THE
PRESENTATION TODAY ABOUT THE
CRISIS FOR AFFORDABLE HOUSING
PROVIDERS BEING PART OF A
NATIONWIDE CRISIS . YOU
MENTIONED SOME THINGS HAPPENING
IN OTHER VANESSA POLITIES THERE
. CAN YOU SPEAK TO THAT A LITTLE
BIT MORE AND HELP US UNDERSTAND
HOW THAT CONNECTS TO WHAT WE
HAVE INCENTIVIZED AND INVESTED
IN AND THE AFFORD WILL HOUSING
SPACE? I THINK YOU SPOKE IN
PARTICULAR AROUND RESOURCES THAT
HAVE BEEN MADE AVAILABLE FROM
THE FEDERAL GOVERNMENT AND
RESOURCES WE HAVE INVESTED
LOCALLY REALLY BEING HEAVILY
FOCUSED IN THE CAPITAL AND ON
FRONT INVESTMENTS DISH UP
INVESTMENTS MEDIGAP AND
OPERATING MAINTENANCE. IT
SEEMSIT IS COMING DUE NATIONALLY
.
>> YES. WE ARE VERY FORTUNATE TO
BE PART OF A GROUP OF HIGH COST
CITIES THAT MEET REGULARLY TO
TALK ABOUT HOUSING ISSUES. AND
THESE ISSUES ARE IMPACTING ALL
JURISDICTIONS. ESPECIALLY HIGH
COST JURISDICTIONS LIKE NEW YORK
, SAN FRANCISCO, LOS ANGELES,
CHICAGO, DENVER. THESE ARE THE
COLLEAGUES WE SPEAK WITH ON A
REGULAR BASIS. EVERYONE
ISWRESTLING WITH THIS IN
DIFFERENT WAYS. THE COLLAPSE OF
A MAJOR HOUSING PROVIDER IN LOS
ANGELES WHEN HOUSING TRUST
COLLAPSED AND ALL OF THE
PORTFOLIO HAD ENTERED INTO
RECEIVERSHIP AND THE GOVERNMENT
HAD TO PLAY A ROLE IN HELPING
TOO, IT IS STILL WORKING ON
DISPOSING OF THOSE ASSETS. IT
REALLY WAS A WAKE-UP CALL TO THE
ENTIRE INDUSTRY TO LOOK AND WORD
MORE AND UNDERSTAND WHAT IS
HAPPENING WITH OUR ASSETS
ACROSS-THE-BOARD AND WHAT WE
NEED TO DO TO PREVENT SOMETHING
LIKE THAT HAPPENING IN OUR
CITIES. WE HAVE BEEN LISTENING
AND LOOKING AT AS MUCH DATA AS
WE POSSIBLY CAN TO UNDERSTAND
HOW WE CAN INVEST DIFFERENTLY IN
SEATTLE TO SUPPORT WHAT EXISTS
NOW AND WE REALLY SAW THAT WITH
THE 2025 NOTICE OF FUNDING
RELEASE THAT WE DID. WHEN YOU
SEE THREE PRIMARY INVESTMENT
CATEGORIES , THEY REALLY ALL
RECEIVED SIGNIFICANT RESOURCES.
NEW PRODUCTION, STABILIZATION OF
EXISTING PROJECTS UNDERWAY AND
PRESERVATION OF OLDER PROJECTS.
CAN WE EXPECT TO SEE SIMILAR
INVESTMENT PATTERN IN 2026 AS
WELL AS MORE FUNDS GOING INTO
THE OPERATING MAINTENANCE
SERVICES BUCKET. WE ARE NOT
COMING CLOSE TO ADDRESSING THE
FULL NEED OF OPERATING SUBSIDIES
IF WE WERE TO WANT TO SOLVE THE
SEVERE HOUSING COST FOR EVERY
RENTER IN THE AFFORDABLE HOUSING
PORTFOLIO. THAT WOULD BE A VERY
SIGNIFICANT INVESTMENT . BUT WE
CAN START TO LOOK AT OTHER WAYS
THAT WE INVEST OPERATING DOLLARS
. AND AS YOU CAN SEE AND SOME
OF THESE CHARTS, THOSE ARE
REQUIRED EVERY YEAR FOR AS LONG
AS THE BUILDING IS OPERATING AT
THAT REGULATION AND THIS MIX OF
TENANTS AND IT BECOMES VERY
EXPENSIVE, VERY FAST. IT ISVERY
IMPORTANT THAT WE ARE MAKING
POTENTIAL DECISIONS AROUND THOSE
INVESTMENTS .
>> THANK YOU SO MUCH, KELLY.
IREALLY APPRECIATE THAT AND WE
LOOK FORWARD TO HAVING YOU BACK
IN COUNCIL TO SHARE MORE ABOUT
WHAT YOU LEARNED ABOUT THE
OPERATE -- OPERATION
STABILIZATION DOLLARS. WITH
THAT, COLLEAGUES, I SEE NO
FURTHER AUSTINS . AND WE WANT
TO THANK THE PRESENTERS FROM THE
OFFICE OF HOUSING FOR JOINING US
TODAY AND WE LOOK FORWARD TO
CONTINUING TO ENGAGE WITH YOU
ALL . WE WILL NOW MOVE ON TO
THE NEXT ITEM. WILL THE CLERK
PLEASE READ ITEM TWO INTO THE
RECORD.
>> AGENDA ITEM TWO, SEATTLE
SOCIAL HOUSING DEVELOPER UPDATE
FOR BRIEFING DISCUSSION.
>> THANK YOU. WILL THE
PRESENTERS PLEASE UNMUTE
YOURSELF WHEN READY STARTING
WITH HOUSING DEVELOPMENT 13.
>> THANK YOU COUNCILMEMBERS.
I'M TIFFANI MCCOY. I HAVE SHE
HER PRONOUNS. AND THE
INTERIMCEO FOR THE [ INAUDIBLE ]
HOUSING DEVELOPER AND CARAMEL --
FORMERLY I WAS A
COEXECUTIVEDIRECTOR OF [
INAUDIBLE ] I WILL TURN IT TO
GINGER.
>> I'M GINGER SEGEL. I'M THE
CHIEF REAL ESTATE DEVELOPMENT
OFFICER FOR THE SOCIAL HOUSING
DEVELOPER AND I HAVE 38 YEARS OF
EXPERIENCE IN THE HOUSING ,
AFFORD WILL HOUSING DEVELOPMENT
AND POLICY AND WITH THAT, I WILL
TURN IT OVER TO JAMES .
>> HELLO CITY COUNCIL. I'M
JAMES MAYTON AND I USE HE HIM
PROGRAMS. AND PRIOR TO SOCIAL
HOUSING, I LET ASSET MANAGEMENT
AND DEVELOPMENT PROGRAMS AT THE
SEATTLE HOUSING AUTHORITY FOR
ABOUT THE LAST DECADE.
>> GOOD AFTERNOON. MY NAME IS
MIKE ELIAS. I USE HE HIM
PRONOUNS. DIRECTOR OF DESIGN
AND POLICY AT SSH. PRIOR TO
THIS, I FOUNDED [ INAUDIBLE ]
LAB WHERE I FOCUSED ON CLIMATE
ADAPTED HOUSING RESEARCH POLICY
FOR [ INAUDIBLE ]
>> WONDERFUL. I THINK THAT WAS
EVERYONE. I'M
JENNIFERLABRECQUE. I'M ON CITY
COUNCIL [ INAUDIBLE ] STAFF.
>> FANTASTIC. THANK YOU SO MUCH.
I'M GRATEFUL TO THE PRESENTERS
FOR BEING HERE. AS FOLKS KNOW,
WE PASSED AS COUNSEL THE
INTERLOCAL AGREEMENT THAT FUNDS
THE SEATTLE SOCIAL HOUSING
DEVELOPER JUST YESTERDAY. WE
ARE EXCITED TO HEAR HOW THE
DEVELOPERS WILL BE HITTING THE
GROUND RUNNING AS YOU ARE SET TO
RECEIVE THE FIRST TRANSFER OF
FUNDS FROM POP 1A IN EARLY
MARCH. WE KNOW THERE HAVE BEEN
A LOT OF CHANGES AT THE FOOT OF
THE DEVELOPERS SO WE ARE EXCITED
TO DIG IN AND HEAR MORE.
IBELIEVE I AM HANDING IT OVER TO
JEN TO HANDED OFF WITH CONTENT
-- CONTEXT SETTING FROM THE
DEVELOPER AND WILL HEAR DIRECTLY
FROM THE AFFORD WILL HOUSING
DIRECTOR. COLLEAGUES, I ASKED
THAT WE HOLD QUESTIONS UNTIL THE
END AND I THINK I WAS MORE OR
LESS ON TIME WITH THE FIRST
PRESENTATION. BUT THE SSHD TEAM
, BE AWARE BECAUSE WE WILL NEED
PLENTY OF TIME TO ENGAGE IN
CONVERSATION AT THE END.
>> I WILL GO AHEAD AND SHARE MY
SCREEN .
>> DOES THAT LOOK OKAY TO
EVERYONE?
>> THAT IS GREAT.
>> I'M PROVIDING A BRIEF ,
PROBABLY FIVE MINUTE OVERVIEW TO
ENSURE ALL THE COMMUNITY MEMBERS
HAVE THE SAME UNDERSTANDING ,
BACKGROUND OR HISTORY OF THE
SEATTLE SOCIAL HOUSING
DEVELOPER. GIVE ME A MOMENT
HERE. AS I'M SURE YOU ARE ALL
AWARE, INITIATIVE 135, OR I135
WAS APPROVED BY VOTERS IN
FEBRUARY OF 2023.
ESTABLISHEDTHE SEATTLE SOCIAL
HOUSING DEVELOPER WHICH IS THE
PUBLIC DEVELOP AN AUTHORITY
WHOSE MISSION IS TO DEVELOP, OWN
AND MAINTAIN PUBLICLY FINANCED
MIXED INCOME HOUSING
DEVELOPMENTS. I35 DOES HAVE A
CERTAIN NUMBER OF REQUIREMENTS
THAT SOCIAL HOUSING MUST MEET
INCLUDING ANY BUILDING MUST BE
OWNED BY THE SOCIAL HOUSING
DEVELOPER INTO PERPETUITY .
THAT TO THE EXTENT POSSIBLE, IT
MUST BE MIXED INCOME WITH A
RANGE OF UNITS AFFORDABLE TO A
RANGE OF INCOMES. THE RENTAL
RATE SHOULD BE BASED ON
OPERATIONS, MAINTENANCE AND LOAN
PAYMENTS AND A RESIDENT SHOULD
BE PROVIDED OPPORTUNITIES FOR
RESTORATIVE JUSTICE, CONFLICT
RESOLUTION PRIOR TO EVICTION
PROCEEDINGS. AS YOU CAN SEE
HERE, THERE ARE OTHER
REQUIREMENTS AS WELL INCLUDING
THAT THE PROPERTY CANNOT BE SOLD
OR TRANSFERRED TO A PRIVATE
ENTITY OR A PUBLIC PRIVATE
PARTNERSHIP.
>> INITIATIVE 137 , OR I137 WAS
APPROVED BY VOTERS A YEAR LATER
IN FEBRUARY OF 2024. IT IMPOSES
A 5% TAX ON COMPENSATION PAYMENT
SEATTLE TO ANY EMPLOYEE WHO
MAKES ABOVE $1 MILLION A YEAR.
OR SORRY. A 5% TAX
ONCOMPENSATION PAID TO ANY
EMPLOYEE ABOVE $1 MILLION A
YEAR. AT LEAST 95% OF SUCH TAX
REVENUE MUST BE ALLOCATED AND
THEN PROMPTLY TRANSFERRED TO THE
SOCIAL HOUSING DEVELOPER. UP TO
5% CAN BE RETAINED BY THE CITY
TO ADMINISTER THE TAX NOT TO
EXCEED $2 MILLION PER YEAR. THE
TAX WENT INTO EFFECT ON JANUARY
1st , 2025 AND THE FIRST TAX
PAYMENT WERE MADE ON GENERATE
31st, 2026. THE FIRST PAYMENTS
TO BE TRANSFERRED TO THE SEATTLE
SOCIAL HOUSING DEVELOPER WILL
REFLECT AN ENTIRE YEAR'S WERE
THE PAYMENTS.
>> THE CITY HAS PROVIDED PRIOR
SUPPORT TO THE SOCIAL HOUSING
DEVELOPER BEFORE I137 PROCEEDS
WILL BE TRANSFERRED. UNDER I135,
THE CITY WAS OBLIGATED TO FUND
STARTUP COSTS FOR 18 MONTHS
ALONG WITH PROVIDING LIMITED [
INAUDIBLE ] SUPPORT. THE CITY
PROVIDED DURING THAT TIME 20,000
AN INITIAL FUNDING IN 2023 WHICH
ESSENTIALLY DID NOT COUNT TOWARD
THE 18 MONTH CLOCK AND THEN
850,000 AND STARTUP SUPPORT AS
PART OF THE 2024 ADOPTED BUDGET
. THE WASHINGTON STATE
DEPARTMENT OF COMMERCE ALSO
PROVIDED A 200,000 GROUND GRANT
TO THE SEATTLE SOCIAL HOUSING
DELIBERATE IN WHICH THE STUDY --
CITY ISSUED ON THEIR BEHALF. AND
IN 2025, COUNCIL APPROVED A
BRIDGE LOAN TO THE HOUSING
DEVELOPER TO SUSTAIN OPERATIONS
UNTIL I137 PROCEEDS WERE
TRANSFERRED TO THE DEVELOPER IN
Q 1, 2026. AS CHAIR FOSTER
MENTIONED, JUST YESTERDAY, THE
CITY COUNCIL APPROVED COUNSEL
BILL 121 , 153, WHICH AUTHORIZES
THE EXECUTIVE TO EXECUTE AN
INTERLOCAL AGREEMENT WITH THE
SEATTLE SOCIAL HOUSING
DEVELOPER. AS WE JUST SAID,
UNDER 137, THE CITY'S RESPONSE
WILL FOR ADMINISTERING THE [
INAUDIBLE ] IMPOSED BY 137 AND
TRANSFERRING IT PROMPTLY TO THE
SOCIAL HOUSING DEVELOPER SO THIS
ESSENTIALLY HAS THE TERMS AND
CONDITIONS FOR THE TRANSFER .
THE TAX AFTER IT HAS BEEN
COLLECTED BY THE CITY. UNDER
THE ILA2025 TAX PROCEEDS, MUST
BE TRANSFERRED TO THE HOUSING
DEVELOPER BY MARCH 2nd, 2026.
AND THAT IS MY PRESENTATION. I
WILL STOP SHARING.
>> THANK YOU SO MUCH FOR THAT,
JEN. WE WILL GO RIGHT INTO THE
PRESENTATION DECK FROM THE
SOCIAL HOUSING DEVELOPER . .
>> IT LOOKS LIKE YOU ARE MUTED .
>> THANK YOU COUNCILMEMBER.
GOOD AFTERNOON AGAIN. WE
WILLJUMP RIGHT INTO THE
SLIDESHOW AND DISCUSS WHAT IT IS
WE HAVE BEEN UP TO AND WHAT WE
ARE PLANNING IN THE YEARS TO
COME. WHAT WE WILL COVER IN
TODAY'S PRESENTATION IS GOING
INTO WHAT IS SOCIAL HOUSING. JEN
LAID OUT A LOT OF THE TECHNICAL
ASPECTS OF 135 JUST REALLY
GROUNDING AND WHAT THE VOTERS
PAST. WE WILL GO INTO WHO WE
ARE AND WHO WAS OUR GOVERNING
BOARD AND WHO IS THE STAFF ?
GIVE AN UPDATE ON PROGRESS TO
DATE. LOOK AT THEBUDGET AND
PROPERTY PURCHASES AND PLANS AND
THEN WHAT WE WILL BE DOING
MOVING FORWARD. FIRST, WHAT IS
SOCIAL HOUSING? WHAT IS THIS
CONCEPT? AND HOW DOESSOCIAL
HOUSING ADD TO SEATTLE'S
AFFORDABLE HOUSING ECOSYSTEM?
THE MISSION OF THE SEATTLE
SOCIAL HOUSING DEVELOPER FIRST
AND FOREMOST IS TO DEVELOP, OWN,
LEASE AND MAINTAIN MIXED INCOME
HOUSING TO PEOPLE PRICED OUT OF
MARKET RATE HOUSING. WE WILL BE
PROVIDING HIGH QUALITY MIXED
INCOME HOUSING WITH RESIDENT --
GOVERNANCE. BUT WE ARE NOT A
SOCIAL SERVICE PROVIDER. WE ARE
NOT SERVING PEOPLE WHO NEED
SUPPORTIVE SERVICES IN ORDER TO
MAINTAIN TODAY. THAT IS WHAT
OUR PEERS DO AND WE NEED TO
SUPPORT THEM FULLY IN THAT SPACE
. INSTEAD, THE SEATTLE SOCIAL
HOUSING DEVELOPER PROVIDES
PUBLICLY OWNED, PERMANENTLY
AFFORDABLE HOUSING THAT IS
AVAILABLE TO ALL AND REMOVED
FROM ARE -- FROM MARKET
SPECULATION. WE ARE PART OF THE
BROADER AFFORDABLE HOUSING
ECOSYSTEM . IF YOU LOOK ACROSS
THE WORLD AND EVEN IN PLACES
LIKE MONTGOMERY COUNTY,
MARYLAND, WE KNOW THAT THE
SUCCESSFUL IMPLEMENTATION AND
CONSTRUCTION THAT SOCIAL HOUSING
HAS THE POTENTIAL TO FUND THE
SEATTLE HOUSING LANDSCAPE. WE
ARE PART OF A NATIONAL MOVEMENT
OF SOCIAL HOUSING IN THE UNITED
STATES . BUT THUS FAR, WE ARE
THE ONLY JURISDICTION WITH A
SOCIAL HOUSING DEVELOPER WITH A
DEDICATED REVENUE STREAM. THIS
ALLOWS US TO PLAN OUR DEVELOP
PIPELINE MORE CONCRETELY AND
FLASK -- FLEXIBLY. WE STILL
ACKNOWLEDGE THAT PAYROLL TAXES
HAVE HISTORICALLY BEEN A
VOLATILE FUNDING SOURCE. ANOTHER
KEY DIFFERENCE FOR THE SOCIAL
HOUSING DEVELOPER IS THAT WE
HAVE THE ABILITY TO [ INAUDIBLE
] , WHICH WE WILL DISCUSS MORE
LATER. ONE OF THE MAIN
DIFFERENCES FINANCIALLY BETWEEN
THE SEATTLE SOCIAL HOUSING
DEVELOPER AND THE REST OF THE
AFFORDABLE HOUSING ECOSYSTEM IS
THAT WE ARE NOT RELIANT ON THE
FEDERAL GOVERNMENT . WE ARE NOT
RELIANT ON PROJECT WASTE
VOUCHERS IN THE LOW INCOME TAX
CREDIT AND UNIQUELY, WE DO NOT
HAVE TO GO OUT AND FIND MULTIPLE
FUNDING SOURCES FOR OUR CAPITAL
STAFF. THIS HOUSING IS AND
PRESERVED AS PUBLIC
INFRASTRUCTURE. AND BECAUSE IT
IS NOT RELIANT ON THE LOW INCOME
HOUSING TAX CREDIT OR OTHER
SUBSIDIES THAT HAVE
AFFORDABILITY EXPIRATIONS , WE
ARE BETTER POSITIONED TO
MAINTAIN THIS HOUSING AS A
PUBLIC ASSET AND PERMANENTLY
AFFORDABLE FOR THE LONG-TERM .
WE ALSO HAVE THE ABILITY TO
CROSS SUBSIDIZE BETWEEN OUR
HOUSING PROJECTS . WE PROVIDE
MIXED INCOME HOUSING WHICH IS
HOUSING FOR A WIDER MIX OF
INCOMES THAN WHAT OUR OF
HORRIBLE HOUSING PARTNERS
PROVIDE. WE HAVE A RANGE OF LOW
AND MODERATE HOUSEHOLDS THAT WE
WILL SERVE. RENTERS ACROSS THE
INCOME SPECTRUM ARE STRUGGLING .
THE OFFICE OF HOUSING JUST
SHOWED US IN THE PRESENTATION
BEFORE. THERE IS NOT ENOUGH
HOUSING AVAILABLE TO SERVE
HOUSEHOLDS FROM 0-30, 30-50 AND
THEN 100, 120% . AS THIS SERVES
ALL THE INCOME BRACKETS AND IS
PERHAPS THE ONLY PUBLIC PROGRAM
INTENDED TO SERVE FOLKS IN THE
220% INCOME RANGE WITH STABLE
HOUSING SOLUTIONS. WE GET TO
BUILD FAMILY SAYS UNITS WHERE
NEIGHBORS CAN AGE IN PLACE.
THESE UNITS ARE NOT BEING BUILT
BY OUR AFFORDABLE HOUSING
PARTNERS BECAUSE THEY JUST
DON'T HAVE THE FINANCING . AND
THE PRIVATE SECTOR DOESN'T BUILD
THESE BECAUSE IT ISN'T
PROFITABLE TO DO SO. THIS IS A
CRUCIAL ROLE THAT WE LOOK
FORWARD TO FILLING IN SEATTLE.
>> THROUGHOUT LAST YEAR'S,
HENCE THE PLAN, I KNOW CREATIVE
HOUSING WHERE NEIGHBORS CAN AGE
IN PLACE, WAS A HUGE PRIORITY
FOR A LOT OF COUNCILMEMBERS. I
THINK I HEARD MOST OF YOU BRING
IT UP MULTIPLE TIMES THROUGHOUT
THE PROCESS . WE CAN CREATE THE
OPPORTUNITY OF SOCIAL HOUSING.
WE HOPE TO UTILIZE SOME OF THE
FAMILY SIZE HOUSING COMP PLAN
INCENTIVES THAT BOTH COUNCIL
PRESIDENT HOLLINGSWORTH AND
COUNCILMEMBER [ INAUDIBLE ]
STUDIES HAVE SHOWN THE POSITIVE
EFFECTS OF COMMUNITIES ON OUR
CHILDREN. STUDIES HAVE FOUND
THAT CHILDREN FROM MIXED INCOME
COMMUNITIES EARN MORE AND ARE
MORE LIKELY TO ATTEND COLLEGE
AND ARE LESS LIKELY TO BE
INCARCERATED. WE SEE SOCIAL
HOUSING AS AN ANTI- DISPLACEMENT
TOOL MARKET RATE HOUSING ALONE
CAN INCREASE OVERALL COST TO
NEIGHBORHOODS PUSHING OUT
RESIDENTS THAT STRUGGLED TO KEEP
UP WITH THE RISING COST OF
LIVING BY ACQUIRING AND
DEVELOPING SOCIAL HOUSING IN
THESE AREAS, THE OPPORTUNITY FOR
PERMANENTLY AFFORDABLE HOUSING
CAN PROVIDE STABILITY TO THOSE
AT RISK OF DISPLACEMENT WHICH
ENSURES THEY CAN REMAIN IN THE
COMMUNITIES IN SEATTLE THAT THEY
WANT TO BE PART OF.
>> THIS IS A REPRESENTATION OF
THE SALE OF SOCIAL HOUSING
GOVERNING BOARD SHIFTING GEARS
HERE A BIT. THE BOARD
HASDICTATED AN INITIATIVE 135.
IT IS A 13 MEMBER BOARD WITH A
MIX OF RENTERS, LABOR, PUBLIC
FINANCE HOUSING EXPERT AND URBAN
PLANNER AND WE DO HAVE THREE
OPEN BOARD SEATS. OUR
EXECUTIVECOMMITTEE IS COMPRISED
OF A CHAIR , A VICE CHAIR,
TREASURER, SECRETARY AND A BOARD
COMMITTEE LIAISON. WE JUST HAD A
SPECIAL MEETING LAST MONDAY, A
COUPLE OF DAYS AGO AND ALL OF
THE EXECUTIVE COMMITTEE
POSITIONS HAVE BEEN FILLED.
>> STAFF, WE HAVE MULTIPLE ON
THE CALL TODAY. BUT JUST
CUMULATIVELY, THE STAFF AT THE
SEATTLE SOCIAL HOUSING
DEVELOPMENT HAD OVER 83 YEARS OF
DEVELOPMENT, REAL ESTATE AND
AFFORDABLE HOUSING EXPERIENCE.
WE HAVE 20 YEARS OF ARCHITECTURE
EXPERIENCE . FOR HIRING AND
PROGRESS, WE ARE CURRENTLY
LOOKING FOR A PERMANENT CFO AND
A PERMANENT CHIEF FINANCIAL
OFFICER AND A PERMANENT CHIEF
OPERATING OFFICER. I
WASAPPOINTED AS AN ARM CEO JUST
A LITTLE MORE THAN THREE WEEKS
AGO. AND THE BOARD INTENDS TO
HOLD A PERMANENT CEO PROCESS IN
THE NEXT SIX MONTHS. WE AS A
STAFF INTEND TO LEAD THE AGENCY
WITH HUMILITY, CLARITY AND
PURPOSE . WE WILL BRING
TRANSPARENCY, JOY, HARD WORK AND
HOPEFULLY A RENEWED ADMIRATION
FOR THE PUBLIC SECTOR.
>> SWITCHING TO THE PROGRESS TO
DATE, WHAT HAVE WE BEEN UP TO?
JEN WENT OVER SOME OF THE
INFUSIONS OF FUNDS WE GREATLY
NEEDED AND GRATEFUL FOR . BUT
WE AS AN AGENCY OVERALL HAVE
BEEN OPERATING WITH VERY LIMITED
FUNDING SINCE THE FIRST BOARD
MEETING IN MAY OF 2023. IN THAT
TIME, WE HAVE ESTABLISHED A
WEEKLY COMMITTEE WHICH IS A MIX
OF STAFF MEMBERS WITH REAL
ESTATE AND FINANCE EXPERIENCE.
WE CREATED A SCIENCE STANDARDS
PROTOCOL. WE CONTINUE
NEGOTIATIONS WITH THE SEATTLE
BUILDING [ INAUDIBLE ] BECAUSE
WE DO INTEND TO SIGN A PROJECT
LABOR AGREEMENT. WE NEGOTIATED
THAT INTO AN AGREEMENT WHICH
PASSED UNANIMOUSLY TODAY. AND
THEN THANK YOU TO COUNCILMEMBER
FOSTER AND COUNCILMEMBER STRAUSS
FOR CHAMPIONING THE LOCAL
AGREEMENT. JUST RECENTLY, WE
SECURED PERMANENT OFFICE SPACE.
WE ARE IN THE PROCESS OF
SECURING A THIRD-PARTY
INDEPENDENT AUDITOR . WE WANT
TO BE REALLY GREAT STEWARDS OF
PUBLIC FUNDS. WE ARE EXPLORING
FINANCING WITH THE AFL HOUSING
ELEMENT TRUST FUND, EXPORTING
PROPERTY MANAGEMENT OPERETTAS
FOR OUR INITIAL ACQUISITION AND
WE HAVE HIRED, JUST IN THE LAST
THREE WEEKS, AND AND TERM CHIEF
FINANCIAL OFFICER.
>> BEFORE WE TURN IT OVER TO
GINGER, ONE LAST THING FROM ME
IS WE HAVE ALSO PASSED OUR 2025,
2028 STRATEGIC PLAN AND WE ARE
ACTIVELY IMPLEMENTING THAT AND
THAT GOES INTO THESE FOUR KEY
AREAS WHICH ARE , ONE, SECURING
PROPERTIES, PREPARING FOR
GROWTH, TWO, MAKING CONNECTIONS
AND BUILDING COMMUNITY. THREE,
BUILDING AND EXPERIENCED STAFF
AND BOARD. FOUR, BUILDING A
DIVERSE AND SUSTAINABLE
FINANCIAL FOUNDATION. YOU
CANFIND OUR STRATEGIC PLAN ON
OUR WEBSITE AT SEATTLE SOCIAL
HOUSING. WITH THAT, I WILL TURN
IT OVER TO GINGER. JUST TELL ME
NEXT FLIGHT AND I WILL PIVOT TO
THAT.
>> THANK YOU .
>> MY JOB IS TO DEVELOP
AFFORDABLE HOUSING ACROSS THE
CITY . IT IS NOT JUST MY JOB BUT
ALSO JOB OF MY COLLEAGUES THAT
ARE HERE TODAY, JAMES AND MIKE.
THE THREE OF US ARE PLANNING AND
STARTING TO PUT PROJECTS IN
PLACE HERE WE ARE PURSUING TWO
DIFFERENT TRACKS FOR NEW
DEVELOPMENT. THE FIRST IS
ACQUISITIONS. THE MARKET
CONDITIONS ARE FAVORABLE FOR
ACQUISITIONS OF HIGH QUALITY
RENTAL HOUSING RIGHT NOW AND WE
EXPECT THOSE CONDITIONS TO
CONTINUE FOR THE NEXT FEW YEARS.
WE ALSO ARE PURSUING NEW
CONSTRUCTION DEVELOPMENT
PROJECTS. NEW CONSTRUCTION IS
VERY IMPORTANT . IT TAKES 3-4
YEARS BETWEEN WHEN WE IDENTIFIED
AND COMMIT TO A NEW CONSTRUCTION
PROJECT AND IF THE PROJECT IS
OPEN FOR OCCUPANCY. SO THERE IS
A LONG LEAD TIME AND WE WANT TO
GET PROJECT STARTED NOW. THE
ACQUISITIONS ARE EXCITED TO BE
MOSTLY FOR STUDIO AND
ONE-BEDROOM UNITS , AS WE SAW
WITH THE OFFICE OF HOUSING --
THE OFFICE OF HOUSING SLIDES AND
THE MAJORITY OF NEW CONSTRUCTION
HAS BEEN STUDIOS AND
ONE-BEDROOM. ESPECIALLY
WITHPRIVATE MARKET HOUSING. SO
THERE JUST IS NOT A LOT OF
HOUSING -- FAMILY HOUSING IN
SEATTLE AND THE LAST SEVERAL
YEARS. ANOTHER REASON FOR
NEWCONSTRUCTION IS MOST OF THE
BUILDINGS THAT ARE AVAILABLE FOR
SALE OR THAT WE POTENTIALLY
COULD BUY, ARE CONCENTRATED IN
SOME NEIGHBORHOODS ACROSS
SEATTLE . WHEN WE BUILD HOUSING
, WE CAN BUILD THROUGHOUT THE
CITY, EVEN IN AREAS THAT THE
PRIVATE GET HAS BEEN PASSING UP
FOR INVESTMENT. NEXT SLIDE.
>> WE ARE COMING OUT OF THIS
INCUBATION PERIOD WHERE WE HAVE
BEEN PUTTING A FOUNDATION IN
PLACE FOR OUR ORGANIZATION.
THECITY WAS GENEROUS PROVIDING
US WITH THE TWO MILLION-DOLLAR
BRIDGE LOAN. WE ARE HAPPY TO
REPAY SHORTLY. WITH THAT MONEY,
WE HAVE HIRED NOT FIVE, -- IS
WHEN THE FOOT -- THE SLIDE WAS
FIRST DRAFTED, BUT WE HIRED 70
STAFF MEMBERS. WE ARE WORKING
QUICKLY TO BUILD THE
ORGANIZATION AND GET THE
INFRASTRUCTURE IN PLACE.
WEHIRED A CONTRACT LOBBYIST THAT
IS WORKING AND A COUPLE POLICY
INITIATIVES NOW. WE HAVE
DEVELOPED KEY INTERNAL
INFRASTRUCTURE. WE HAVE OFFICE
SPACE. WE HAVE OUR TECHNOLOGY
SET UP AND WE NOW HAVE THE
FOUNDATION TO ROLL UP OUR
SLEEVES AND GET TO WORK. WE HAVE
BEEN DOING COMMITTEE OUTREACH
WITH 100 COMMUNITY, CIVIC AND
BUSINESS LEADERS SO WE HAVE
RELATIONSHIPS TO SUPPORT THE
ONGOING DEVELOPMENT TO
ACTIVITIES. WE HAVE HAD MANY
PEOPLE COME TO US WITH PROJECT
IDEAS, PROJECT POSSIBILITIES.
BUT WE ALSO PUT A CALL OUT TO
THE BROADER COMMUNITY THROUGH A
REQUEST FOR INFORMATION FOR
POSSIBLE NEW PROJECTS. AND IT
WAS A VERY BROAD CALL FOR LAND
THAT IS AVAILABLE FROM MULTIPLE
-- FOR MULTIFAMILY HOUSING THAT
-- TO PROJECTS THAT ARE IN
DEVELOPMENT AND UNABLE TO
PROCEED AND UNCOMPLETED
PROJECTS. WE RECEIVED 14
RESPONSES TO THE RFI. SOME OFTHE
RESPONSES , DEVELOPERS WERE
WORKING AT MANY SITES. SO THERE
WERE ABOUT 50 DIFFERENT SITES WE
RECEIVED FROM THE RFI PROCESS.
AND WE ARE STARTING TO REVIEW
THOSE AND SEE WHICH ONES TO
PURSUE. EXCELLENT.
>> THIS SLIDE SHOWS THE
RESOURCES THAT WE HAVE AVAILABLE
TO DEVELOP WITH PROJECTS TO
ACHIEVE THE PRODUCTION GOALS .
SO WE ONLY LEARNED IN THE PAST
DAY OR SO THE AMOUNT , OF THE
2025 -- OR THE AMOUNT THE TEXT
GENERATED FROM 2025 THAT WE WILL
BE RECEIVING SOON. WE
DEVELOPEDTHIS PRESENTATION WITH
THE ASSUMPTION THAT THE TAX
WOULD GENERATE $50 MILLION A
YEAR AND WE JUST LEARNED THAT IT
WILL BE A HIGHER AMOUNT. SO WE
WILL BE UPDATING THE PROJECTIONS
AND THE PLANNING . THE PLANNING
RIGHT NOW ASSUMES A LOWER
AMOUNT. WE DO PLAN TO BOND
AGAINST THE TAX REVENUE AND I
WILL TALK MORE ABOUT THAT IN A
MOMENT. WE DO BELIEVE THAT
THERE ARE OTHER ENTITIES IN THE
COMMUNITY THAT WILL WANT TO
INVEST IN OUR PROJECTS. TIFFANY
MENTIONED THEPENSION FUND THAT
IS ONE POSSIBILITY. WE ALSO KNOW
OF OTHER ENTITIES UP THERE THAT
MAY JOIN US IN PROVIDING
RESOURCES FOR OUR HOUSING .
BECAUSE WE PLAN TO BOND AGAINST
THE TAX REVENUES , WE WILL HAVE
NET OPERATING INCOME ,
SIGNIFICANT NET OPERATING INCOME
COMING OFF OF OUR PROJECTS. WE
WILL NOT BE USING RENT TO REPAY
THE INITIAL BOND LOAN. WE WILL
BE USING TAX REVENUE. YOU CAN
SEE THATNUMBER GROWS GROWS. IT
STARTS SMALL AS WE ONLY HAVE A
FEW PROJECTS PLANNED TO COME
ONLINE THIS YEAR. AS MORE AND
MOREHOUSING COMES ONLINE, IT
BECOMES A MORE SIGNIFICANT
NUMBER. NEXT SLIDE.
>> LONG-TERM DEBT. WE WANT TO
LEVERAGE THE TAX REVENUE TO
INCREASE THE PIE TO BE ABLE TO
PRODUCE MORE HOUSING. WE ARE
PLANNING TO ISSUE A SPECIAL TAX
REVENUE BOND THIS YEAR.
WEEXPECT TO GET AT LEAST A 3.5%
INTEREST RATE OF A DISCUSSION OF
[ INAUDIBLE ] AND IT IS LIKELY
WE WILL BE ABLE TO HAVE A LOWER
INTEREST RATE. AND THAT 3.5%, WE
WOULD START WITH A 10 YEAR BOND
WHICH WOULD GENERATE THE $165
MILLION TO DEPLOY THIS YEAR.
AND WE WOULDBE OBLIGATING $20
MILLION A YEAR AND FUTURE TAX
REVENUE FOR 10 YEARS TO REPAY
THE BOND. WITH THE PRODUCTION
GOALS, WITH THE FIRST FIVE-YEAR
PRODUCTION GOALS , WE WILL NEED
ADDITIONAL DEBT . THE BOND
ISSUANCE THIS YEAR WILL NOT BE
SUFFICIENT ENOUGH TO COVER THE
PRODUCTION GOALS. ANDIN 2028,
WE EXPECT TO SEE OR DEBT OR
SECURE MORE DEBT AND WE WOULD
EITHER LOOK TO A MORE
TRADITIONAL MODEL WERE YOU
SECURE DEBT WITH PROPERTY,
EITHER BANK LOANS OR [ INAUDIBLE
] LOANS OR IMPACT INVESTMENTS
SUCH AS THE PENSION FUND. OR WE
MAY BOND WITH FUTURE TAX
REVENUES. THE ORIGINAL BOND ,
THE BOND FROM THIS YEAR, WILL
ONLY BE USING ABOUT ONE THIRD OF
THE AGENCY CAPACITY IN 2028. WE
WILL HAVE PLENTY OF CAPACITY TO
BORROW MORE TO KEEP A HIGH LEVEL
OF PRODUCTION. NEXT SLIDE. THESE
ARE THE PRODUCTION GOALS . YOU
CAN SEE THE SHIFT FROM
ACQUISITION, TO NEW CONSTRUCTION
AND YOU CAN ALSO SEE ON THE
SLIDE, THE RAMP-UP FOR NEW
CONSTRUCTION . THE SLIDE SHOWS
WHEN THE UNITS WERE COMPLETED
AND THAT WHEN THEY WERE STARTED.
THE NEW CONSTRUCTION UNITS THAT
WERE COMPLETED IN LATER YEARS
WERE ACTUALLY STARTED THIS YEAR
AND NEXT YEAR. WE PLAN TO
ACQUIRE 300 UNITS FOR HOUSING
THIS YEAR AND WHILE MARKET
CONDITIONS CONTINUE TO BE [
INAUDIBLE ] , WE ARE TRYING TO
TAKE ADVANTAGE OF OPPORTUNITIES
OF BUYING GOOD-QUALITY BUILDINGS
ON THE MARKET. WE DO THINK THAT
IT IS CYCLICAL AND IT WILL
CONTINUE TO BE -- THERE WON'T
CONTINUE TO BE SUCH GOOD
OPPORTUNITIES BUT WE WILL ALSO
BE SHIFTING TO NEW CONSTRUCTION.
SO IT -- WEBELIEVE IN THE
FIRST FIVE YEARS, WE WILL HAVE
1000 UNITS OF ACQUIRED HOUSING
AND 630 UNITS OF HOUSING BUILT
FOR CONSTRUCTION. AND IF YOU GO
OUT A COUPLE MORE YEARS YEARS,
THERE ARE ABOUT 400 MORE UNITS
THAT WILL BE STARTED WITHIN THE
FIRST FIVE YEARS BUT NOT
COMPLETED UNTIL YEAR EIGHT.
NEXT SLIDE . SO THE FIRST SLIDE
-- THE FIRST FINANCIAL SLIDE
THAT I SHARED SHOWED THE CASH
THAT WOULD BE AVAILABLE FOR OUR
AGENCY'S ACTIVITIES . THIS
SLIDE SHOWS BOTH THE CASH AND
THE EXPENSES, THE USES OF THOSE
FUNDS. SO THE SECOND ROW IS THE
DEVELOPMENT EXPENSES. QUITE
EXPENSIVE TO PURCHASE BUILDINGS
AND BUILD BUILDINGS. THAT IS
WHERE THE MAJORITY OF THE
FUNDING GOES. WE ALSO
AREPLANNING FOR OF COURSE
REPAYING THE BOND LOAN AND
INTEREST -- PRINCIPAL INTEREST
ON THE BOND LOAN AN AGENCY
OPERATING EXPENSES. THIS YEAR,
THE AGENCY BUDGET IS ABOUT 3.8
MILLION. WEEXPECT IT TO GO UP
ABOUT 20% A YEAR AS WE [
INAUDIBLE ] THE OTHER PARTS OF
THE ORGANIZATION INCLUDING
PROPERTY MANAGEMENT, THE
COMMUNITY ORGANIZING SUPPORTS
SELF-GOVERNANCE. THE LAST LINE
SHOWS THIS CUMULATIVE CASH
BALANCE . WE WILL RECEIVE THE
TAX REVENUE FROM 2025 SHORTLY
AND THE QUARTERLY, WE RECEIVE
THE NEW TAX REVENUE GOING
FORWARD . AND THEN WE USE THE
MONEY AS WELL. YOU CAN SEE WITH
OUR PRODUCTION, WE RUN OUT OF
MONEY IN 2028 AND THAT IS WHEN
WE WOULD TAKE OUT YOU DEBT.
AGAIN, WE DID NOT KNOW ABOUT THE
HIGHER AMOUNT , THE TAX
PROCEEDS. WE WILL EITHER
INCREASE PRODUCTION OR WE WILL
DELAY WHEN WE TAKE A ADDITIONAL
DEBT. NEXT SLIDE .
>> SO THE NEXT STEPS . FIRST,
YOUR NEXT STEPS ARE ON THE NEXT
SLIDE. THIS YEAR, WE PLAN TO
ACQUIRE 300 UNITS OF
HIGH-QUALITY RENTAL HOUSING.
MARKET RESIDENTS WILL BE
ENCOURAGED TO STAY. WE
WILLINITIALLY FILL VACANCIES
WITH LOW INCOME RESIDENTS UNTIL
THE INCOME BASE IS ACHIEVED.
SOMEOF THE BUILDINGS WE ARE
LOOKING AT HAVE TURNOVER RATES
AS HIGH AS 50% A YEAR. WE DO
BELIEVE WE WILL BE ABLE TO MEET
OUR INCOME GOALS FROM 0-120%
WITHIN THE FIRST FEW YEARS. ALL
OF US KNOW THAT THERE ARE MANY
TENANTS AND SEATTLE THAT ARE
PAYING MORE THAN 30% OF THEIR
INCOME AND RENT. SO WE WILL BE
ABLE TOPROVIDE IMMEDIATE RELIEF
TO LOW INCOME RESIDENTS BY
REDUCING THE RENT. THIS YEAR,
WE WILL IDENTIFY BETWEEN 2-4 NEW
CONSTRUCTION PROJECTS FOR
DEVELOPMENT IN ORDER TO CREATE [
INAUDIBLE ] UNITS OF HOUSING.
WE WILL ISSUE A SPECIAL TAX
REVENUE BOND AND WE WILL STAND
UP OUR ASSET MANAGEMENT DIVISION
SO THAT WHEN WE ACQUIRE THE
FIRST BUILDINGS, WE CAN BE GOOD
STEWARDS OF THAT ASSET. NEXT
SLIDE . OUR GOALS FOR THE NEXT
THREE YEARS, SO BETWEEN NOW AND
THE END OF 2028 , WE WILL
ACCUMULATE THE PURCHASED 800
UNITS OF HIGH-QUALITY HOUSING
AND 630 UNITS OF NEW
CONSTRUCTION IN THE PIPELINE. WE
WILL HOPEFULLY HAVE COMPLETED 50
UNITS OF NEW CONSTRUCTION FAMILY
HOUSING. WE WILL TAKE PROPERTY
MANAGEMENT IN-HOUSE. WE WILL
STOOD UP THE PROPERTY MANAGEMENT
DIVISION. WE WILLHAVE ADDED
RESIDENTS TO OUR BOARD OF
DIRECTORS. WE WILL BEISSUING A
NEW SET OF BONDS IN 2028 AND WE
WILL HAVE ENOUGH INFORMATION ON
WHAT HAS WORKED AND WHAT HASN'T
WORKED TO BEGIN TO EVALUATE AND
MAKE MODIFICATIONS AND HOW WE
PROCEED . AND WE WILL HAVE
LEARNED ABOUT DEVELOPING [
INAUDIBLE ] CONSTRUCTION
BUILDINGS AND OTHER CLIMATE
ADAPTIVE STANDARDS THAT WE MAY
WANT TO INCLUDE IN OUR HOUSING
IN THE FUTURE. NEXT SLIDE.
>> THANK YOU, GINGER. AND AFTER
THIS, WE WILL WRAP IT UP. I DO
JUST WANT FOR THE COUNCIL TO
KNOW THAT WE ARE ALREADY [
INAUDIBLE ] AGAINST A SECTION OF
THE 135 CHARTER. ARTICLE TWO AS
YOU CAN SEE HERE ON THE SLIDE.
THAT MAYPOSE CHALLENGES TO OUR
ABILITY TO TAKE OUT DEBT FOR
FUTURE HOUSING CONSTRUCTION OR
ACQUISITION. THIS IS DEFINITELY
AN UNINTENDED CONSEQUENCE THAT
NEEDS TO BE REMEDIED. I HAVE
PROVIDED SOME POTENTIAL LANGUAGE
BUT I DEFINITELY WANT THIS TO BE
AN ITERATIVE PROCESS. I THOUGHT
IT WAS PRUDENT FOR US TO BRING
THIS TO THE PUBLIC'S ATTENTION,
THAT WE ARE FIGHTING WITH SOME
BANKS, THAT THEY DON'T FEEL WE
CAN PUT THE BUILDINGS UP AS
COLLATERAL BECAUSE WE WANT TO
TAKE OUT BIG DEBT TO FUND OUR
MISSION.
>> WITH THAT, WE ARE OPENING
ITUP TO QUESTIONS . I WANTED TO
OFFER. THERE IS A QR CODE HERE
IF YOU WANT TO STAY UP-TO-DATE
WITH WHAT WE ARE DOING AND WE
WILL ASSIGN YOU TO OUR
NEWSLETTER . SO THANK YOU
COUNCILMEMBER FOSTER AND
COUNCILMEMBERS, WE ARE HAPPY TO
TAKE QUESTIONS NOW .
>> THANK YOU SO MUCH, TIFFANY
AND TO THE ENTIRE SOCIAL HOUSING
DEVELOPER TEAM. IT IS WONDERFUL
TO SEE THAT THERE IS A TEAM HERE
AND IT WAS GREAT HEAR FROM YOU
ALL AND THE COMBINED EXPERIENCE.
I WILL ONCE AGAIN ALLOW MY
COLLEAGUES TO RAISE THEIR HAND
AND ASK ANY QUESTIONS AND I
THINK WE ALL KNOW THAT I MAY
JUMP IN AND TAKE A CHAIR POINT
OF PRIVILEGE BUT I TYPICALLY
LIKE TO ASK MY QUESTIONS TOWARD
THE END. COLLEAGUES, I WILL
PAUSE TO SEE IF YOU HAVE
QUESTIONS FOR THE DEVELOPER AND
WE WILL JUMP RIGHT IN.
>> COUNCILMEMBER RINCK.
>> BEING SO SHY TODAY .
>> THANK YOU, CHAIR. THANK YOU
ALL FOR THE PRESENTATION. I KNOW
THE PUBLIC HAS BEEN EAGER TO
HEAR ABOUT HOW THE SOCIAL
HOUSING DEVELOPER IS STANDING
UPAND EVERYBODY WANTS TO ENSURE
WE ARE DEVELOPING ON SOCIAL
HOUSING FOR THE PUBLIC . VERY
EXCITED YOU ARE HERE. THANK YOU
FORTHIS PRESENTATION. AND
I'MGOING TO TAKE US INTO ONE
PIECE HERE RELATED TO
LEADERSHIP. I KNOW AND ROOM CEO
MCCOY IS HERE IN AN INTERIM
CAPACITY AND AS A CHEER ALLUDED
TO IN HER OPENING REMARKS, THE
SOCIAL HOUSING DEVELOPER HAS
BEEN THROUGH SOME VERY RECENT
BIG CHANGES, SOME OF WHICH HAVE
BEEN REPORTED ABOUT THE SEATTLE
TIMES. SO I WANT TO GIVE YOU AN
OPPORTUNITY TO SPEAK TO SOME OF
THE CHANGES IN LEADERSHIP AT THE
SOCIAL HOUSING DEVELOPER.
CHANGES IN THE BOARD AND HOW YOU
WERE WORKING ON IMPROVING
ORGANIZATIONAL STABILITY MOVING
FORWARD.
>> THANK YOU COUNCILMEMBER
RINCK. YES, I WAS APPOINTED
ASTHE INTERIM CEO AT THE JANUARY
BOARD MEETING AND A GOVERNING
BOARD FELT THAT A LEADERSHIP
CHANGE WAS NECESSARY AND
NEEDED.SO THEY REMOVED MY
PREDECESSOR AND AT THE SAME
TOKEN, APPOINTED ME TO MAKE SURE
THERE WAS AN IMMEDIATE
TRANSITION OF POWER, ESPECIALLY
AS WE ARE ABOUT TO RECEIVE
PUBLIC DOLLARS . PUBLIC TRUST
IS ESSENTIAL. WE HAVE A HUGE
MANDATE AND A HUGE NEED TO
FULFILL .'S OF THE GOVERNING
BOARD THOUGHT AHEAD OF MAKING
SURE THAT THE LEADERSHIP
TRANSITION HAPPENED. AS SOON AS
POSSIBLE. I HAVE BEEN UP AND
RUNNING WITH THIS TEAM FOR ABOUT
THREE AND HALF WEEKS. SOME
OFTHE FOLKS ON THE TEAM, JAMES
AND MIKE, WERE AT ON TO STAFF
BEFORE. WITHIN ABOUT TWO DAYS
OR THREE DAYS AFTER, I REACHED
OUT AND TALKED TO GENDER AND
BROUGHT GINGER ON IMMEDIATELY. I
KNOW WHERE MY SKILLS LIE AS A
LEADER AND I ALSO KNOW WHERE
THEY NEED TO BE BOLSTERED. THAT
IS WHERE GINGER FILLS IN WITH
HER OVER 38 YEARS OF AFFORDABLE
HOUSING EXPERIENCE AND GINGER
ALSO IS WITH A DEEP DEDICATION
TO THE MISSION. AND EAGERNESS
TO DIVE INTO THIS NEW HOUSING
MODEL AND BE PART OF HISTORY
THAT WE ARE MAKING HERE AND
WITHIN THE LAST THREE WEEKS, I
HAVE BROUGHT ON AN INTERIM CHIEF
FINANCIAL OFFICER BECAUSE IT IS
CRITICAL TO ME TO HAVE DEEP
FINANCIAL CONTROLS IN PLACE
BEFORE WE RECEIVE THESE DOLLARS.
AND WE HAVE ALSO ACCELERATED THE
PERMANENCY OF THE SEARCH. THE
BOARD IS IN PLACE. HAVE THREE
SEATS OPEN. ONE OF THEM IS THE
OVERSIGHT BOARD . I BELIEVE THEY
ARE GOING TO REPLACE THE
APPOINTEE BY MARCH. THE REASON
THE SEED IS EVEN OPEN IS BECAUSE
THE FORMER PERSON IN THE SEAT IS
MICHAEL [ INAUDIBLE ] WHO IS NOW
STAFF MEMBER. I HAVE ALREADY
ALERTED COUNCILMEMBER FOSTER
ABOUT THE CITY COUNCIL APPOINTEE
. THERE IS AN INDIVIDUAL THAT
DID RESIGN THROUGH THE
LEADERSHIP TRANSITION AND ALSO
THERE IS A SEAT OPEN FOR
COMMUNITY ORGANIZATION THAT
PROVIDES HOUSING TO MARGINALIZED
COMMUNITIES AND I HAVE ALERTED
THE BOARD THEY NEED TO FILL THAT
SEAT AND WE WILL BE DISCUSSING
THAT AT THE REGULARLY SCHEDULED
MEETING A WEEK FROM TOMORROW .
PLEASE KNOW THAT I TAKE THIS
RESPONSIBILITY TREMENDOUSLY
SERIOUSLY. THIS MATTERS A LOT.
THIS IS NOT NEW TO ME. I HELPED
CREATE THIS VISION AND SO I JUST
KNOW THAT I'M DEEPLY ACCOUNTABLE
TO YOU ALL AND OPEN FOR ANY
QUESTIONS AND COMMENTS AND THE
SAME FOR THE PUBLIC. AS I
SAIDIN THE SLIDE , IN SIX
MONTHS, THE BOARD WILL BE
COMMENCING A PERMANENT SEARCH.
I'M HERE EACH AND EVERY STEP OF
THE WAY TO MAKE SURE THAT THAT
IS A SEAMLESS TRANSITION AND WE
CONTINUE GOING FORWARD WITH THE
MISSION. .
>> THANK YOU FOR THAT, TIFFANY.
I WANT TO ECHO A SENTIMENT THAT
YOU HOLD DEAR IN WHAT YOU
STATED. JUST THAT WE NEED TO
MAKE SURE THAT WHEN WE DELIVER,
WE HAVE THE RESPONSIBILITY TO
THE PUBLIC AND JUST WANT TO
RESPECT YOU FOR STEPPING IN
DURING THIS PIVOTAL MOMENT FOR
THE HOUSING DEVELOPER AND THE
BOARD WILL BE TAKING UP,
STARTING THE PROCESS OF A NEW
CEO SEARCH. IF I
HEARDCORRECTLY, SIX MONTHS.
THANKYOU FOR THAT .
>> AND I WANT TO ALSO
ACKNOWLEDGE GINGER FOR YOUR
COMPONENT OF THE PRESENTATION
AND FOR KIND OF WALKING US
THROUGH THE BONDING AND
FINANCING PLAN AND
ACKNOWLEDGING. AND YOU
ACKNOWLEDGED IN YOUR COMMENTS AS
WELL TO NAME -- WE ARE
PROJECTING A BUDGET --
PREVIOUSLY WE WERE PROJECTING A
BUDGET BASED ON 50 MILLION FROM
THE TAX REVENUE . NOW WE ARE
EXPECTED -- YOU ALL
AREEXPECTED TO RECEIVE
SIGNIFICANTLY MORE FOR THAT. HOW
ARE YOU GOING ABOUT ADJUSTING
PROJECTIONS IN LIGHT OF THE
RECENT NEWS ABOUT THE MUCH
HIGHER THAN EXPECTED REVENUE
THAT WILL BE COMING IN?
>> THE RECENT NEWS IS VERY, VERY
RECENT. WE HAVE NOT HAD MUCH
CHANCE TO ADJUST YET . WE WILL
PROBABLY DO AN INCREASE
PRODUCTION AND PUSHING OFF SOME
OF THE DEBT A LITTLE BIT LONGER
. WE MIGHT NOT DO THAT INCREASE
IN PRODUCTION THIS YEAR BECAUSE
WE ARE RAMPING UP AS AN
ORGANIZATION THIS YEAR . SO IF
WE DO A BIG JUMP IN PRODUCTION,
YOU WILL PROBABLY SEE THAT
STARTING IN 2027 RATHER THAN
2026. WE ALSO MAY DO MORE LAND
BANKING THEN WE HAD PREVIOUSLY
PLANNED BECAUSE WE CAN BE
QUEUING UP LARGER, NEW
CONSTRUCTION PROJECTS, OR
QUEUING UP NEW CONSTRUCTION
PROJECTS. WE KNOW THE EARLIER WE
CAN TAKE THE LAND OFF THE MARKET
, IT WILL STOP ESCALATING AND
VALUE. BECAUSE THE LAND
ESCALATIONS ARE HIGH.
>> THANK YOU FOR THAT . I
WANTED TO TAKE A PERSONAL POINT
TO EXPRESS THE INTEREST IN MY
OFFICE FOR PURSUING ONLINE
BANKING. IT IS SOMETHING WE HAVE
HEARD FROM A NUMBER OF COMMUNITY
GROUPS ABOUT A DESIRE TO
PURCHASE OR RETAIN A PROPERTY OR
HAVE MORE COMMUNITY OWNERSHIP
OVER CERTAIN PROPERTIES AS AN
ANTI- DISPLACEMENT MEASURE. AND
SO I'M ENCOURAGED TO HEAR AT
THAT IS UNDER CONSIDERATION BY
THE SOCIAL HOUSING DEVELOPER AT
THIS TIME. AGAIN, TRYING TO
TAKE MARKETS OUT OF ROBBERIES BY
SPECULATION. I WILL STOP MY
QUESTIONS THERE FOR NOW, CHAIR.
>> THANK YOU SO
MUCHCOUNCILMEMBER RINCK. I
WILLENTER A QUICK COMMENT BEFORE
I GO OVER TO COUNCILMEMBER LIN
WHOSE HAND I SEE. ON THE NOTE
OF TAKING PROPERTIES OF THE
MARKET, I WOULD ALSO MAKE SURE
THAT WE HOLD THE CENTER OF OUR
ATTENTION, THAT WE ALSO DO
COMMUNITY GROUPS THAT HAVE BEEN
ABLE TO ACQUIRE LAND TO TAKE IT
OFF THE MARKET. BUT DO NEED
SUPPORT IN GETTING THAT
DEVELOPED. SO I THINK THERE ARE
NEEDS TO CONTINUE WE ARE
REQUIRING SPACES BUT ALSO
DEVELOPMENT CAPACITY AND
OPPORTUNITIES TO PARTNER THERE.
WITH THAT, COUNCILMEMBER LIN.
>> THANK YOU. THANK YOU ALL FOR
COMING. SO EXCITED FOR YOU TO BE
HERE. FOR THE PROMISE OF
HOUSING AND THE WONDERFUL GOOD
NEWS ABOUT THE REVENUE. I THINK
BACK TO THE PRIOR PRESENTATION
ABOUT THE NEED FOR 112,000
HOMES, BY 2044. ACROSS THEBROAD
RANGE OF INCOME AND EXCITED FOR
YOUR MODEL WHICH ADDRESSES THE
WHOLE RANGE OF INCOME NEEDS AND
POTENTIALLY IN ONE BUILDING .
AND IF THE OPPORTUNITY PRESENTED
BY MIXED INCOME HOUSING TO
CREATE BETTER COMMUNITY FOR US
AS WE BECOME -- AS WE BECOME --
CONTINUETO BE THIS DEEPLY
SEGREGATED CITY BASED ON -- OF
EXCITED FOR THE SOCIAL HOUSING
TO MAKE A MEANINGFUL DIFFERENCE
THERE. INTHAT POINT, JUST
WONDERING -- AND I THINK YOU
TALKED ABOUT THIS. BUT WOULD
LOVE TO HEARANY THOUGHTS ABOUT
THE ROLE AND COLLABORATION WITH
OUR PUBLIC SCHOOLS . WHICH ARE
NOT ONLY FACING ENROLLMENT
CHALLENGES. WE HAVE SOME OF THE
HIGHEST NEED FOR FAMILY SAYS
HOUSING AND THAT IS A PRIORITY
FOR YOU. ALSO AGAIN, TO GET BACK
TO THIS POINT OF OUR SCHOOLS ARE
SEGREGATED BECAUSE OUR
NEIGHBORHOODS ARE SEGREGATED.
AND SO JUST WONDERING , IF YOU
HAVE HAD THOUGHTS OR -- AND I
KNOW IT'S EARLY. THERE IS A
LOT OF STUFF WE WILL BE ASKING
YOU TO PUT ON YOUR PLATE. SO
JUST WANTED TO TEE THAT UP.
>> THANK YOU COUNCILMEMBER LIN.
I KNOW BECAUSE I DO HAVE FRIENDS
IN THE SEATTLE EDUCATION
ASSOCIATION THAT HAVE TIES WITH
WONDERFUL SEATTLE PUBLIC SCHOOL
WARD MEMBERS, THAT THERE ARE A
COUPLE OF SITES THAT ARE AT THE
VERY EARLY STAGES OF DISCUSSION.
SO THAT IS REALLY ALL I CAN SAY
FOR NOW. BUT JUST KNOW THAT THE
INTERSECTION IS REALLY CRUCIAL
TO US. THERE ARE SO MANY UNIQUE
THINGS ABOUT SOCIALIZING BUT
THIS IS ONE KEY CRUCIAL FACTOR.
WE GET TO THE OLD FAMILY SAYS
UNITS . WE REMEMBER A PUBLIC
SCHOOL DIRECTOR A COUPLE OF
YEARS AGO. WE LOOKED
ATENROLLMENT. YOU CAN SEE IT
ISNOT THAT SEATTLEITES ARE NOT
STILL HAVING KIDS AND HAVING
FAMILIES. IT IS THAT WHEN THEY
ENTER THE PUBLIC SCHOOL, AGES
WHEN THEY ARE LEAVING THE CITY
OF SEATTLE BECAUSE THEY CANNOT
AFFORD OUR HOUSING HERE . WE
WANT TO MAKE SURE THAT -- AND
MIKE, I MIGHT GIVE IT TO YOU.
ONE OF THE WAYS YOU LIKE TO
PRIORITIZE WHERE WE GO TO THIS
MATRIX AND IS IT CLOSE TO
SCHOOLS OR WALKABLE OR BY
COUPLE? IS IT NOT AS NOISY? IF
MIKE, YOU ARE JAMES WANT TO JOIN
IN ON THAT. I JUST KNOW THAT
COUNCIL HOLDS THAT DEAR.
THEREARE EXTRA INCENTIVES AS I
INDICATED TO COUNCIL NUMBER
HOLLINGSWORTH PUT FORWARD IN THE
PLAN. THIS IS SOMETHING WE LOOK
FORWARD TO PURSUING. I DON'T
KNOW IF MY TEAM HAS ANYTHING
ELSE TO ADD ON TO THAT .
>> I DON'T.
>> I WILL CHIME INTO NOTE THAT
I'M A PARENT OF TWO SEATTLE
PUBLIC SCHOOL STUDENTS. MY
OLDEST IS A STUDENT LEADER AT
WASHINGTON MIDDLE SCHOOL AND I
KNOW THAT FAMILY HOUSING
AFFORDABILITY IS A BIG CHALLENGE
FOR A LOT OF OUR PUBLIC SCHOOLS
. SO THIS ISSUE IS NEAR AND DEAR
TO ME. I THINK THAT THERE
DEFINITELY IS A LOT OF GOOD
DISCUSSIONS ALREADY OCCURRING
ABOUT OUR LOCATION STRATEGY FOR
FAMILY HOUSING . AND MIKE IS
PROBABLY BEST EQUIPPED TO TALK
ABOUT SOME OF THE PARTICULAR
FACTORS WE ARE LOOKING AT .
>> WE ARE KIND OF TRYING TO
TAKE THIS COMPREHENSIVE
APPROACH. ACCESS TO TRANSIT.
ACCESS TO COMMUNITY AMENITIES
AND PUBLIC HEALTH EXPOSURE. WHAT
ARE PEOPLE EXPOSED TO? WITH A
COMP PLAN FOCUSED ON CORRIDORS
AND HOW DO WE CITE FAMILY SAYS
HOUSING SO THAT KIDS ARE NOT
GROWING UP DIRECTLY ON ROADS
LIKE ORAL OR 15TH AVENUE
NORTHWEST. BROAD ARTERIALS,
HIGH LEVELS OF POLLUTION . WE
ARE STARTING TO THINK ABOUT HOW
WE CAN CITE THESE BUILDINGS SO
THEY CAN BE IN QUIETER PLACES.
SO THEY CAN BE IN PLACES WHERE
PEOPLE WANT TO RAISE THEIR KIDS
AND STAY IN PLACE. LOOK AT SOME
OF THE HIGH TURNOVER AND SOME OF
OUR BUILDINGS. A LOT OF IT IS
RELATED TO WHERE THE BUILDING IS
AND WHETHER IT IS A WALKABLE
NEIGHBORHOOD. OR IF IT IS THE
KIND OF PLACE YOU WANT TO STAY
LONG-TERM. THE WAY WE DESIGNAND
BUILD HOUSING IN THE U.S. IS
FUNDAMENTALLY DIFFERENT FROM ANY
OTHER PLACE. WE HAVE
THISOPPORTUNITY TO REALLY LEAN
INTO THE DESIGN OF BUILDINGS.
THISIS THE DESIGN OF SOCIAL
HOUSING TO MATCH UP WITH WHAT
THEY DO LIKE IN AUSTRIA AND
SINGAPORE AND EVEN IN CANADA TO
SOME DEGREE, TO PROVIDE THE
PLACES THAT ARE STABLE AND OFFER
A MUCH HIGHER QUALITY OF LIFE
THAN WHAT WE WILL SEE IN THE
MARKET DEVELOPMENT.
>> CAN I FOLLOW-UP? THIS IS ONE
OF THE THINGS I'M REALLY EXCITED
FOR . I GUESS IT CALLS -- INTO
QUESTION, LITTLE BIT FOR ME ,
ABOUT HOW -- AS YOU GET TO
DESIGN THE BUILDINGS AS WELL AS
ACQUIRE EXISTING BUILDINGS. SO
WE ARE REALLYLOOKING LONG-TERM.
FOR ME, I WONDER ABOUT HOW WE
WOULD MEASURE SOME OF THESE
OTHER BENEFITS. YES, THERE IS A
HOUSING BENEFIT . HOW TO BE
LONG-TERM WORK AT OTHER TANGIBLE
BENEFITS ABOUT ANY BUILDING OR
ABOUT PUBLIC HEALTH OR ABOUT
EDUCATIONAL OUTCOMES . I KNOW
THIS IS A LONG-TERM VISION AND
PLAN BUT I WANT TO KEEP THAT IN
MIND BECAUSE I THINK THAT THE
HOUSING COMPONENT IS OBVIOUSLY
CRITICAL. WE ARE TALKING
ABOUTFAMILIES HERE AND WE ARE
TALKING ABOUT IMPROVING OUTCOMES
BALLISTICALLY -- HOLISTICALLY.
AND SO I WANT TO SOMEHOW KEEP
THAT IN MIND AS WE LOOK TO THE
FUTURE.
>> THANK YOU COUNCILMEMBER LIN.
I'M GOING TO QUICKLY SAY THAT
IT IS GOOD TO HAVE MORE FROM THE
DEVELOPER ON THIS. I WILL
SAYTHAT I HEARD A LOT OF CONTEXT
THERE BUT I DON'T FEEL LIKE WE
NECESSARILY GOT TO THE CORE OF
WHAT WAS COUNCILMEMBER LIN'S
QUESTION. AND GOING TO MOVE US
ON BUT I'M GOING TO SAY THAT I
THINK THERE IS NEED FOR
FOLLOW-UP AROUND THAT QUESTION
AND I THINK I HAVE SOME
QUESTIONS AROUND SIZE AND I SEE
COUNCILMEMBER HOLLINGSWORTH'S
HAND. I WILL GO OVER TO COUNCIL
PRESIDENT AND I WILL CLOSE US
OUT WITH SOME QUESTIONS .
>> THANK YOU, CHAIR. THANK YOU
ALL FOR BEING HERE. IAPPRECIATE
THE PRESENTATION. OBVIOUSLY,
SUPER EXCITED ABOUT ANYTHING
ABOUT HOUSING IN SEATTLE. WE
ARE EXCITED ABOUT. THE ONE THING
I WANTED TO FLAG TOO IS -- AND
THIS IS NOT A QUESTION. IT IS
MORE OF A COMMENT BY THE WAY.
ONE THING I WANTED TO FLAG FLAG,
IF WE CAN BE VERY INTENTIONAL
ALSO TOO ABOUT OUR VENDORS ,
MEANING THAT WE KNOW THE PEOPLE
THAT WERE SERVING -- I THINK
COUNCILMEMBER FOSTER TALKED
ABOUT AVERAGE HOUSEHOLD INCOME
FOR FAMILIES, NATIVE FAMILIES,
AREA AMI AND ALSO SOME OF THE
TARGET DEMOGRAPHICS, MIXED
INCOME AND PEOPLE WE ARE
SERVING. AND THEN I
HEARDCOUNCILMEMBER LIN TALK
ABOUT THE HOLISTIC APPROACH.
I'M THINKING ABOUT THIS AND
OFTEN TIMES, THIS HAPPENS WITH A
LOT OF FOLKS WHETHER DOES
TRANSIT CONSTRUCTION OR ANY TYPE
OF CONSTRUCTION. I THINK AS
AHOLISTIC APPROACH, IT IS ALSO
THE DIVERSITY OF THE VENDORS AND
THE DESIGNERS AND ENGINEERS AND
THAT REFLECTING THE SEATTLE
VALUES. AND I WANT TO FLAG THAT
BECAUSE THERE ARE A TON OF
VENDORS. ONE OF THE GREATEST
PROJECTS, RINGER BEACH AND ALL
THE VENDORS THEY HAD AND THE
DIVERSITY WITH THE DESIGNERS ON
THE CONTRACTORS AND THE PEOPLE
WORKING ON THE JOB AND HOW THAT
HOLISTICALLY OF HAVING PEOPLE
THAT LOOK LIKE THE FOLKS WE ARE
SURVEYING, ARE ALSO WORKING
ONTHE PROJECTS. THAT IS LIKE
THECYCLE OF THE ECONOMIC
MOBILITY IN OUR CITY THAT WE ARE
TALKINGABOUT AND THINKING ABOUT
THE LOCAL VENDORS AND THE SMALL
VENDORS. I WANTED TO HIGHLIGHT
THAT. THIS IS A
GREATOPPORTUNITY TO CONTINUE TO
KEEP WEALTH CIRCULATING IN OUR
CITY . AS WE HAVE TAXED SOME OF
THE WEALTHIEST PEOPLE IN OUR
CITY, A REALLY GREAT WAY OF
RETURNING THE WEALTH IS USING
THE VENDORS THAT ARE SMALLER WHO
DON'T GET OPPORTUNITIES TO BE
WORKING ON THESE PROJECTS AND TO
LOOK LIKE THE PEOPLE WE ARE
SERVING. , AND THE STAFF, FOR
THE SOCIAL HOUSING. EVERYONE. I
WANT TO HIGHLIGHT THAT BECAUSE I
THINK THAT IS VERY IMPORTANT.
THANK YOU, MADAM CHAIR.
>> THANK YOU SO MUCH COUNCIL
PRESIDENT. AND I WILL JOIN IN ON
THAT AND SAY ACTUALLY , A FUNNY
LITTLE STORY HERE AS I WAS
LOOKING BACK AT SOME OLD
PHOTOGRAPHS. I SAW A PHOTOGRAPH
OF ME IN CHAMBERS WHEN COUNCIL
WAS DEBATING AND DISCUSSING
PRIORITY HIRE MORE THAN A DECADE
AGO WHICH IS ONE OF THE CITY
POLICIES THAT HELPS MAKE SURE
OUR RESOURCES GO TO THOSE
CONTRACTORS. THAT MAY BE -- I
WOULD MAYBE POSE THAT IS A
QUESTION. HAS THE SOCIALHOUSING
DEVELOPER LOOKED AT SOME OF THE
EXISTING STANDARDS , PRIORITY
HIRE FOR EXAMPLE, WHICH REQUIRES
THAT ON PROJECTS THAT ARE CITY
FUNDED, OVER A CERTAIN DOLLAR
AMOUNT, CONTRACTS ARE GOING TO
PEOPLE FROM DISADVANTAGED ZIP
CODES. HASTHE SOCIAL HOUSING
DEVELOPER CONSIDER THAT OR
LOOKED AT WAYS THAT YOU CAN BE
INTENTIONAL ON THAT DEPLOYMENT
OF RESOURCES?
>> COUNCILMEMBER FOSTER, WE
ACTUALLY WROTE THE PRIORITY
HIGHER INTO CHARTER 135. WE
WERE JUST TALKING ABOUT THAT AS
WE ARE GETTING PREPARED TO PUT
OUT THE RFQ PROCESS. SO YES,
ACTIVE DISCUSSIONS ARE BAKED
INTO THE CHARTER.
>> FANTASTIC.
>> I SEE COUNCILMEMBER LIN'S
HANDS. I WILL LET HIM SQUEEZE IN
HERE BEFORE I GET TO MY
QUESTIONS.
>> I JUST WANTED TO -- AS WE
ARE TALKING ABOUT THAT, I WANTED
TO PUT IN A PLUG THAT THEY ARE
DOING SOME AMAZING STUFF MAKING
SURE THEY ARE GETTING YOUTH
CONNECTED TO THESE CONSTRUCTION
JOBS AND SO JUST WANTED TO MAKE
SURE, AS YOU DO PRIORITY HIGHER,
YOU WORK WITH SOME OF THE TRADES
THAT ARE SPECIFICALLY FOCUSED ON
UPLIFTING OUR YOUTH IN SEATTLE.
>> THANK YOU COUNCILMEMBER LIN .
>> MIKE.
>> I WANTED TO PIGGYBACK ON TO
THIS. WE GAVE A PRESENTATION
WITH COUNCILMEMBER RINCK ABOUT
SIX MONTHS AGO WITH A POTENTIAL
PARTNER. I THINK THERE IS THIS
OPPORTUNITY AROUND THESE
BUILDINGS ARE LIVING
LABORATORIES. THERE IS SOCIAL
RESEARCH, HUGE OPPORTUNITY TO
CONNECT THESE TO THE
NEIGHBORHOODS . AND I HAVE SEEN
YOUNG KIDS AND [ INAUDIBLE ]
TEACHERS ARE ASKING ALL ABOUT
SOCIAL HOUSING REALLY GREAT
OPPORTUNITIES TO CONTINUE THOSE
CONVERSATIONS INTO THE
COMMUNITY.
>> THANK YOU. I WILL MOVE US ON.
I WANT TO MAKE SURE THAT BEFORE
WE GET OUT OF HERE TODAY, WE
TAKE A COUPLE OF QUESTIONS THAT
I THINK ARE IMPORTANT ON THE
FINANCING SIDE OF THINGS. FIRST,
BEFORE I GO TO FINANCING, I WANT
TO GO BACK TO SOME OF THE
DISCUSSION AROUND ACQUISITIONS
ONE OF THE THINGS I HEARD YOU
SAY IS SORT OF A BREAKDOWN OF
UNITS YOU MIGHT ACQUIRE AND
UNITS YOU MIGHT BUILD . AND
IALSO HEARD A NOTE AROUND THE
POTENTIAL FOR ACQUIRING STUDIO
AND ONE-BEDROOM UNITS. GIVEN THE
WAY THAT MARKET IS RIGHT NOW .
I'M LOOKING FOR YOU TO HELP ME
SQUARE THE CIRCLE ON THE FOCUS
ON BUILDING MORE FAMILY SIZED
HOUSING ALONGSIDE THE -- THE
FACT THAT SOME OF THOSE EARLY
ACQUISITIONS WILL BE STUDIO AND
ONE-BEDROOM UNITS. IT IS THE --
IS IT THE FOCUS OF THE DEVELOPER
TO BE CONVERTING THOSE INTO TWO
BEDROOM UNITS ? AND HOW DO YOU
PLAN TO ADDRESS THAT ? THEY
PROBABLY HAVE FIVE QUESTIONS
HERE. WE CAN GET STRAIGHT TO
THE POINT RESPONSES AND WE CAN
MAKE SURE WE CAN MOVE ON. THANK
YOU .
>> SURE. THE MARKET RIGHT NOW
FOR RECENTLY CONSTRUCTED
APARTMENT BUILDINGS IS QUITE
GOOD. SO WE CAN PICK UP SOME
BUILDINGS AT A GOOD PRICE POINT
AGAIN WE THINK THE MARKET WILL
CYCLE AWAY FROM THAT THE NEXT
TWO OR THREE YEARS. WE DO HOPE
TO TAKE ADVANTAGE OF THAT.
YOUCAN BUY HIGH-QUALITY
APARTMENT UNITS FOR ABOUT
350-$400,000 PER UNIT RIGHT NOW.
WHERE IS TOBUILD THEM IS LIKE
60,000 A UNIT. SO WE WANT TO
TAKE ADVANTAGE OF THE DIP IN THE
MARKET OR THE DIP IN PRICES IN
THE MARKET. AND SOME OF THESE
ARE VERY HIGH QUALITY RECENTLY
CONSTRUCTED BUILDINGS. BUT THEY
ARE ALMOST ENTIRELY STUDIO AND
ONE-BEDROOMS . THE ONES WE HAVE
LOOKED AT SO FAR, IT IS ABOUT
10-15% OF THE UNIT OF TWO
BEDROOMS ARE LARGER. THERE IS NO
GETTING AROUND THE FACT THAT THE
PRIVATE MARKET IS BUILDING
MOSTLY SMALL UNITS, WHICH IS
CYCLING THROUGH THE WHOLE
ECOSYSTEM AS WE HAVE SEEN WITH
THE TREND 55 PRESENTATION. WE
WILL LOOK FOR OPPORTUNITIES TO
COMBINE SMALL UNITS AND LARGER.
THERE MIGHT BE SOME OPPORTUNITY
FOR THAT . WE ARE ALSO TRYING TO
BUILD A DIVERSE PORTFOLIO FOR
PEOPLE IN SEATTLE THAT NEED
HOUSING. THAT RANGESFROM SMALL
HOUSEHOLDS TO BIG HOUSEHOLDS AND
WE THINK THE MAJORITY OF THE WAY
WE WILL SERVE OUR FAMILY SIZED
HOUSEHOLDS IS THROUGH NEW
CONSTRUCTION . WE WILL DO SOME
CONVERSIONS BUT WE THINK MOSTLY,
WE HAVE TO FILL THAT VOID THAT
THE PRIVATE MARKET IS LEAVING,
OF NOT BUILDING. FAMILY SIZED
UNITS.
>> I APPRECIATE THAT . AND I
WOULD CLOSE WITH A COMMENT ON
THAT. I WILL SAY THAT WE ARE
SEEING THIS INCREASED NEED. YOU
SAW IN THE OH., RECENT DOLLARS,
39% OF THE DOLLARS TOWARD NEW
CONSTRUCTION WERE FOR FAMILY
SIZED HOUSING . AND AS THE
SOCIAL HOUSING DEVELOPER
CONTINUES TO GROW, I THINK WE
APPRECIATE , AND YOU WILL MAKE
YOUR OWN DECISIONS HERE BUT SOME
FOCUS ON MAKING SURE THERE ARE
TARGETS IN THAT AREA BECAUSE THE
GAP FOR FAMILY SAYS HOUSING AS
YOU KNOW IS SO SIGNIFICANT. I
WANT TO MOVE US OVER A LITTLE
BIT TO THE BONDING CONVERSATION
. I REALLY APPRECIATED THE
NUMBERS FROM THE REVENUE ARE NEW
AND VERY RECENTLY ANNOUNCED. I
WONDER IF YOU CAN SPEAK A LITTLE
BIT MORE TO WHETHER OR NOT YOU
EXPECT TO RUN INTO ANY BARRIERS
AGAINST -- AS IT RELATES TO
FUNDING AGAINST THE TAX REVENUE.
MY UNDERSTANDING IS THAT
CURRENTLY, THE WAY THAT THE
CHARTER IS WRITTEN , THERE ARE
POTENTIAL BARRIERS TO BONDING
AGAINST THE UNITS THEMSELVES AND
THE ACQUISITION IS WHAT YOU HAVE
IN THE PORTFOLIO WHEN YOU GET
THERE. AND THAT IS WHAT LED TO
THE INTENT OF SORT OF BONDING
AGAINST THE REVENUE PER WE ALSO
HEARD INTERIM DIRECTOR MCCOY
SPEAK TO THE CHANGES IN THE
REVENUE PROJECTIONS. I'M
CURIOUS IF YOU CAN TALK A LITTLE
BIT MORE ABOUT WHETHER YOU
ANTICIPATE RUNNING INTO ANY
CHALLENGES THERE .
>> WE HAVE BEEN SPEAKING TO
UNDERWRITERS AND ADVISORS AND WE
UNDERSTAND THAT THIS IS A NEW
TAX AND THERE MIGHT BE SOME
CONCERNS BECAUSE IT IS A NEW TAX
. BUT WE ARE PROPOSING SUCH A
MODEST ENCUMBRANCE ON THE NEW
TAX. WE ARE PROPOSING $20
MILLION A YEAR IN REPAYMENT OUT
OF ATTACKS THAT AT ONE TIME
WITHOUT WAS 50 AND NOW WE KNOW
IT IS 100. SO WE HAVE HEARD FROM
PEOPLE THAT OPERATE IN THE BOND
MARKET THAT OUR APPROACH IS VERY
REASONABLE AND WILL BE FAVORABLY
SCENE. WE DO NOT ANTICIPATE A
PROBLEM OF BEING ABLE TO ISSUE
THOSE BONDS AND GENERATE THOSE
PROCEEDS. THEINTEREST RATES ARE
VERY LOW . SO WE THINK IT IS A
GOOD WAY TO GO RIGHT NOW AND IT
WILL REALLY HELP WITH OUR
PRODUCTION THE NEXT FEW YEARS .
AFTER THE NEXT TO YEARS, I THINK
WE WILL HAVE TO REEVALUATE AND
SEE IF WE WANT TO ENCUMBER MORE
OF THE TAX REVENUE OR IF YOU
WANT TO START ENCUMBERING THE
BUILDINGS . I THINK WE NEED THE
FLEXIBILITY TO ENCUMBER THE
BUILDINGS BECAUSE OTHERWISE, WE
MIGHT HAVE FINANCING TOOLS THAT
WE CAN'T USE . EITHER THAT WE
WOULD ASSUME FROM A SELLER ,
SOMEONE HAS A VERY LOW INTEREST
LOAN, WE MIGHT WANT TO ASSUME
THAT LOAN VERSUS TAKE OUT A NEW
LOAN. OROPPORTUNITIES TO GET
IMPACT INVESTMENTS AT THREE, OR
4%. WECANNOT CURRENTLY DO THAT
BECAUSE WE CAN'T SECURE THOSE
KINDS OF LOANS WITH PROPERTY.
SO WE DOWANT THE FLEXIBILITY BUT
WE ARE GOING TO DO OUR INITIAL
PURCHASES OF -- THE INITIAL
ACQUISITIONS WE ARE PLANNING TO
DO WITH A BOND AGAINST THE TAX
REVENUE.
>> THANK YOU SO MUCH FOR THAT.
I WANT TO MOVE US OVER TO I
BELIEVE IT IS SLIDE 22 . AN
ARMED DIRECTOR MCCOY, YOU SPOKE
TO THIS WILL BIT EARLIER. I
THINK FOLKS WILL KNOW FROM THE
TREND 55 PRESENTATION, THAT I'M
ALWAYS INTERESTED IN THE
QUESTION OF, NOT JUST HOW MANY
UNITS BUT THE SIZE OF UNITS AND
WHO IS SERVED BY THOSE UNITS. I
WANT TO ASK IF YOU CAN JUST KIND
OF GIVE US A LITTLE BIT BUT I
DON'T WANT TO SAY DEEPER DIVE
BUT ALMOST SORT OF RESTATING TO
MAKE SURE MY COLLEAGUES ARE
TRACKING AND MAKE SURE MY
COLLEAGUES ARE TRACKING WELL .
I WANT TO BRING THIS POINT TO
THE FRONT AROUND THE WAY
ACQUISITIONS WOULD WORK WHEN YOU
ARE ACQUIRING BUILDINGS THAT MAY
HAVE EXISTING RESIDENTS AND HOW
THAT PLAYS INTO WHAT THE INCOME
MIX IN THAT BUILDING COULD LOOK
LIKE .
>> AS WE DISCUSSED COUNCILMEMBER
ON THE SLIDESHOW, WE HAVE A
MANDATE NOT TO DISPLACE ANY
RESIDENTS IN OUR BUILDING . SO
IF YOU TAKE ON ACQUISITION, WE
WOULD THEN FILL VACANT UNITS
WITH LOWER INCOME RESIDENTS. AND
SO TAKING OVER A BUILDING THAT
HAS 70% AMI AND ABOUT. THEY SAY
IN THE UNIT. THEY KEEP PAYING
MARKET RENT TO THE BUILDING. BUT
THEN THOSE UNITS OPEN , WE OPEN
UP TO THOSE IN THE 30, AND THE
50 AND THEN A MIX OF THAT INCOME
. THAT WOULD BE OUR PRIORITY.
I WILL TURN IT OVER TO GINGER TO
TALK ABOUT THE IDEAL INCOME MIX
WITH NEW CONSTRUCTION.
>> WE ARE STILL WORKING WITH OUR
BOARD. EXACTLY WITH WHAT THE
INCOME MIX IS. THE CHARTER SAYS
FROM ZERO, TO 120% AND THEN IT
HAS SPECIFIC BETWEEN 0-120%.
RIGHT NOW WE ARE DOING THE
FINANCIAL MODELING AT 10% OF THE
UNITS AT 30, 30%. UNITS AT 50%.
30% OF THE UNITS AT 50, 80 AND
30% OF THE UNITS AT 80, 120.
THAT IS HOW WE ARE DOING
FINANCIAL MODELING. BUT WE
AREWORKING WITH OUR BOARD TO
SORT OF SOLIDIFY WHAT OUR INCOME
TARGETS WILL BE. THAT IS OUR
WORKING ASSUMPTION AT THIS TIME.
>> THANK YOU. MY LAST QUESTION.
AND MAYBE IT IS MOREOF A
STATEMENT. I APPRECIATE YOU
GAVE AN UPDATE AROUND -- IT SAYS
YOU ARE WORKING ON PROJECT LABOR
AGREEMENT. THATTHAT IS NOT YET
FINALIZED. IS THAT CORRECT?
>> CORRECT COUNCILMEMBER.
>> FANTASTIC. I JUST WANTED TO
MAKE SURE WE WERE TRACKING WHERE
THAT WAS IN THE PROCESS .
WELOOK FORWARD TO DON'T I KNOW
YOU HAVE TO GO THROUGH THE RIGHT
STEPS TO GET THAT IN PLACE.
WELOOK FORWARD TO HEARING MORE
WHEN THAT IS READY. COLLEAGUES,
ANY FURTHER QUESTIONS FROM THE
GREAT FOLKS OF THE SOCIAL
HOUSING DEVELOPER TODAY ? OKAY.
SEEING DON, I WANT TO THANK THE
PRESENTERS . WE WANT TO A
KNOWLEDGE THAT YOU WILL HAVE
DONE A LOT OF WORK IN A SHORT
PERIOD OF TIME TO BOTH GET READY
FOR THE PRESENTATION AND BRING
ON -- THE SLIDE SAID FIVE. AND
IT WAS SEVEN, BUT THE TIME STEPH
GOT HERE TODAY. WE REALLY
APPRECIATE THE PACE AT WHICH YOU
WERE MOVING TO ENSURE THAT THE
ORGANIZATION IS FULLY STAFFED ,
AND STAFFED WITH A REALLY
EXPERIENCED TEAM AND APPRECIATE
YOU ALL COMING IN AND A
RELATIVELY SHORT ORDER TO THIS
TEAM ON. AND APPRECIATE THAT
THAT REALLY DEMONSTRATES YOUR
COMMITMENT, NOT ONLY TO THIS
PROJECT BUT TO THE COLLABORATIVE
RELATIONSHIP BETWEEN THE COUNCIL
AND THE PUBLIC AS WE GET TO
ENSURE THAT THE SOCIAL HOUSING
DEVELOPER IS A SUCCESS. I WANT
TO COMMEND YOU ALL FOR THAT AND
COMMEND YOU FOR THE HOURS YOU
PUT IN. I KNOW LAST NIGHT
WASYOUR CELEBRATORY PARTY .
MAYBE WE SHOULD HAVE BEEN ABLE
TO HAVE YOU IN YESTERDAY SO THAT
YOU COULD -- NOT HAVE THIS TO
LOOK FORWARD TO THE MORNING
AFTER. BUT I REALLY APPRECIATE
YOU ALL FOR SPENDING YOUR TIME
WITH US IN PROVIDING THIS UPDATE
TO COUNCIL AND JUST WANT TO
CONTINUE TO REITERATE . I THING
WE ALL SEE OUR JOB AS PARTNERS
IN OUR JOB AS PUBLIC SERVANTS TO
MAKE SURE WE ARE ASKING
QUESTIONS AND UNDERSTANDING
WHERE THINGS ARE FOR THIS NEW
DEVELOPER SO THAT WE CAN ALL
WORK COLLABORATIVELY TO MAKE IT
A SUCCESS . I APPRECIATE YOU
ALL FOR SPENDING THAT TIME WITH
US TODAY .
>> THANK YOU COUNCILMEMBER
FOSTER FOR HAVING US. THANK YOU.
YOU KNOW WHERE TO FIND US.
PLEASE REACH OUT.
>> THANK YOU.
>> IS THERE ANY FURTHER
BUSINESS TO COME BEFORE THE
COMMITTEE?
>> SEEING NONE, THAT CONCLUDES
THE FEBRUARY 11th , 2026 MEETING
OF THE HOUSING ARTS AND CIVIL
RIGHTS COMMITTEE. THENEXT
SCHEDULED MEETING IS ON FEBRUARY
28TH . THANK YOU ALL FOR
ATTENDING. IT IS 3:53 P.M