RES 99-13 BAINBRIDGE ISLAND HOUSING TRUST FUND PROPOSAL
RESOLUTION NO. 99-13
A RESOLUTION OF THE CITY COUNCn.. OF THE CITY OF
BAINBRIDGE ISLAND, WASHINGTON, ACCEPTING THE
BAINBRIDGE ISLAND HOUSING TRUST FUND PROPOSAL
WHEREAS, the Housing Element of the City's Comprehensive Plan recommends that a
Housing Trust Fund be established for use in purchasing land, assisting with financing and for
providing infrastructure to support affordable housing on Bainbridge Island;
WHEREAS, Mayor Sutton appointed a 90-Day Committee to consider the key elements
involved in establishing a Housing Trust Fund to complement existing city ordinances addressing
affordable housing, to encourage development of moderate and lower income housing and to
provide funding for income groups not serviced by other funding sources currently available;
WHEREAS, the 90-Day Committee produced a report on November 13, 1998, entitled
"Proposal for The Bainbridge Island Housing Trust Fund" outlining its recommendations and the
means for establishing such a trust fund;
BE IT RESOLVED BY THE CITY COUNCn.. OF THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, AS FOLLOWS:
Section 1. The City Council of the City of Bainbridge Island, Washington, accepts
the proposal drafted by the go-Day Housing Trust Fund Committee dated November 13, 1998,
attached to this resolution.
PASSED by the City Council this 12th day of May, 1999.
APPROVED by the Mayor this 13t!1 day of May, 1999.
~~ ~~-, ~
DWIGHT SUTTON, Mayor
ATTEST/AUTHENTICATE:
~~G'_ tP ~~1J
~ P. KASPER, CIty Clerk
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
RESOLUTION NO.
May 6, 1999
May 12, 1999
99-13
-s ~\\ ~
fIcMnnIJ..13, 1988
fr r
iA OO-Day Mayor'S Committee Report
,.'
REPORT SUMMARY 3
THE COMPREHENSIVE PLAN'S HOUSING ELEMENT-ENABLING LANGUAGE 3
POTENTIAL REvENuE SOURCES: 3
ADMINISTRATION OF THE TRUST FuND 4
POTBN'I1AL PROGRAMS SUPPoRTED 4
PARTNERSHIPS 4
THE REPORT 4
MIsSION OF THE HOUSING TRUST FUND 5
COMMlI'TEE MEMBERs 5
REVENUE SOURCE 6
REVENUE SOURCE GoALS 6
VOLUNTARY REvENuE CONTRIBUTIONS 6
, REVENUE SOURCE SUBCOMMIT'I'EE REcOMMENDATIONS 7
1 SURCHARGES ON PLANNING, LAND USE AND BUILDING PERMITS 7
1'RAicsACTION-BASED VOLUNTARY CONTRIBUTION nOM INDIVIDUALS AND BUSINESSES
DIRBC'11.Y RELATED TO REAL ESTATE ACTIVITIES 8
MATCHING IlJNDS fROM-COBI GENERAL FuND 9
CONSIDERATIONS FOR Ftl'nJRE PuBLIC REvENuE SOURCE 9
ADMINISTRATION _ 9
ADMINISTRATION DETAJL: HOUSING TRUST FUND LENDING CRrrEIu:A 10
SCHIDULI:AND ~PROCESS 10
COMPLE'I'ENESS OF APPLICATIONS 11
BASIC ELIGmn.rI'Y 11
FEAsmn.rI'Y 12
, PRIOItrI'Y FOR FUNDING 15
, UNDIRWRITING 16
PROGIlAMInASIBll...ITY 18
PROGRAMIFEASmn.rI'Y SUBCOMMI'ITEE OF THE HOUSING TRUST FUND 18
THE NEED 18
SUBCOMMITI'EE OBSERVATIONS 19
RECOMMENDATIONS 20
Housilll-Trust Fund 9O-Day CommillOe Report 10 the- Mayor Page I
iAPPENDICES 21
AFFORDABLE HOUSING FUNDING OPTIONS 22
.011lER SOURCES OF REVENUE: A SPECIAL PROPERTY TAX LEVY PER RCW 84.52.105. 23
i80USING TRUST FuND CRITERIA WORKSHEET 24
'.~ HOUSIJI/G TRUST FUND CRITERIA 25
"ow MUCH FUNDING IS NEEDED PER YEAR TO BE EFFECTIVE? 28
.OUSING OPTIONS FOR SEATTLE REsmENTS wrm LOw AND MODERATE INCOME 29
tIousing Trust Fund 9O-Day Commil1leeReport 10 the Mayor Page 2
REPORT SUMMARY
A Bainbridge Island Housing Trust Fund (RTF) would be a pennanent source of locally
controlled money dedicated to increasing affordable housing opportunities exclusively for
projects on Bainbridge Island. This can be accomplished through providing grants and
'loans for construction and rehabilitation projects, operation of non-profit organizations,
.and assistance for financial hardship. The Housing Trust Fund Mayor's 90-Day
Committee proposes that a Housing TrustFund could be an effective way for Bainbridge
Island to leverage other funding and resources to help reach its affordable housing goals.
. The Comprehensive Plan's Howlng Element-Enabllng Language
Developing a Housing Trust Fund specifically addresses the implementation of Goal 1,
Policy 4 of the Housing Element within the Comprehensive Plan, which states:
"The City .recognizes the need to provide financing assistance for affordable
housing. Accordingly, the City will actively pursue funds that may include,
but are not limited to, councilmanic bonds, general obligation bonds, real
estate excise tax, grants, and other available resources. These funds may be
used to establish a Housing Trust Fund which will be used for purchasing
land, for assisting with financing, and for providing infrastructure to support
affordable housing on Bainbridge Island. "
Housing trust funds are often used to develop capacity within an organization and help non-
profit developers gain control of building sites. Funds also help leverage other sources of
funding that could otherwise not be considered. Grants most often require matching funds
and proof of other financial support.
A housing trust fund can be used to provide the most critical and difficult to come by
'financing for non-profit developers of affordable housing. Unlike for-profit developers,
non-profits rarely have reserve funding to provide the initial fmancing in order to get a
project underway. However, funds are generilly available to for-profit developers if the
'funding contribution is necessary to make the project feasible.
The Mayor's 9O-Day Committee (the "Committee") for a Housing Trust Fund considered
'the following key elements:
1) Source of revenue
2) How the-fund is to be administered
3) What types of programs will be supported
4) How citizens can participate
,Potential Revenue Sources:
'The Revenue Source Subcommittee, used the expertise of the City of Bainbridge Island
iFinance Director, Ralph Eells and the documented experience of other housing trust
ifunds across the country to define potential revenue sources available for the Housing
Trust Fund. Their study suggests a combination of revenue sources to include: (1) fees
Housing Trust Fund 9O,Day CommillOe Report 10 the Mayor
Page 3
from planning and building permits, (2) specific housing-related business contributions,
and (3) matching funding from the City's general fund. These revenue sources would
yield an estimated annual RTF contribution of $293,000 to $337,000.
Administration of the Trust Fund
The Health, Housing and Human Services Council (HHHSC) has provided a su~cessful
model for the annual distribution of funds to local organizations from a City source.
Another model is the ARCH Housing Trust Fund that serves Bellevue and other Eastside
jurisdictions. The Administration Subcommittee proposes a hybrid of the two models.
The RTF administration of the fund would be the official City body responsible for
setting funding criteria, reviewing applications and monitoring use of funds. This
recommendation is presented in considerable detail within the report.
Potentia' Programs Supported
The H1F can be a flexible instrument in helping the City meet its affordable housing goals.
Most importantly, the RTF may be targeted to meet the varying needs of today's and
tomorrow's low and moderate income renter and owner households. Each new funding
round or each year, the Citizen's Advisory Board may review the uses of the funds and the
targeted income groups and suggest changes that reflect the needs in the community. An
. initial focus of the RTF program could be down payment assistance for low and moderate
income home buyers. Serving these populations in this manner would facilitate affordable
housing development as currently required by the Municipal Code. The implementatian of
the RTF would demonstrate a coordinated program by addressing the demand-side of
housing (Bainbridge families) as well as the supply-side (the developerlbuilder).
Partnerships
A Housing Trust Fund opens doors to a great number of partnerships. The RTF would
provide a diverse number of resources, programs and organizations the incentive to
working together toward a common goal. The Mayor's Committee members are the
foundation of those partnerships representing many of the players in housing. The local
partners provide the human infrastructure for a sustainable and substantial Housing Trust
Fund. Also, the activities of the RTF Committee have caught the interest of the
Washington State Finance Commission, a potential partner and revenue source to
complement the sources raised through the RTF. News of this opportunity will be
forthcoming shortly.
THE REPORT
The cost of housing on Bainbridge Island, whether rental or for-purchase, is out of reach
of most of the existing Island' workers. In order to afford to work on the Island, either a
household depends upon another income for household expenses, the household has been
fortunate enough to have purchased a home many years ago when housing prices were
affordable to moderate and lower income households. they receive some sort of subsidy
and live in the small number of subsidized units on the Island, or they have been lucky
Housin. Trust Fund 9O-Day Commi~ Report to the Mayor
Pase 4
enough to find one of the infrequently vacant affordable housing units. Presently, new
households, whether singles or families, do not have these opportunities.
· The targets of the Housing Trust Fund are those households which depend on an
Island-based income to support their home. The targets of the Housing Trust Fund are
those households on which the Island depends upon as clerks, teachers, public
employees, wait staff, artists, crafts people, skilled workers... In short, those people
who make the Island run day to day in an interesting and economically viable way.
· Housing affordability is a essential to Island businesses.
· Housing affordability is essential to maintaining cultural, social and economic'
diversity on the Island.
The Committee set out on its investigation of what kind of housing trust fund would be
appropriate on Bainbridge Island with a clear idea of the guiding principles stated in the
Bainbridge Island Comprehensive Plan. Both the Committee and subsequently the mayor,
city council, and the public will need to have a very clear understanding of the purpose of
the Housing Trust Fund.
Mis.lon of the Housing Trust Fund
The Housing Trust Fund 9O-Day Committee was given the task of developing the
framework for a local source and use of funding for affordable housing. The mission of
the Housing Trust Fund is too complement existing city ordinances concerning affordable
housing, encourage development of moderate and lower income housing and to provide
funding for income groups not serviced by other funding sources currently available.
Commlttefllllembers
We benefit from a great deal of expert advice both from those on the Committee and
those individuals we invited to inform us on various issues. The Committee was made up
of a broad cross section of those in our community so that many of the talents of our
community might have an opportunity to contribute to this effort and that a variety of
ideas and issues could be examined and debated more fully.
Representatives on the Committee were:
Ralph Eells, Director of Finance, City of Bainbridge 1$1and; Joan Holcomb, Helpline
House; Karen Kline, Health, Housing and Human Services Council; Ed Kushner,
Windermere Real Estate, Bainbridge Island;'Jack MacArthur, President of the Chamber
of Commerce; Rod McKenzie, Land Developer, Bainbridge Island; Susan Millan,
Housing Planner, City of Bainbridge Island; Lynn Nordby, Administrator, City of
Bainbridge Island; Gretchen Novasio, Housing Resources Board; Preston Prince, Kitsap
County Consolidated Housing Authority; Gamie Quitslund, Housing Resources Board
(HfF Committee Chairperson); Chelle Roberts, Housing Resources Board Coordinator;
Stephen Rowley, Bainbridge Island School District; Dee Taylor, Washington State
Finance Commission; John Teising and Ross Thomas, Washington Mutual Bank
Bainbridge Island; Roger Waid. Kitsap County Consolidated Housing Authority; Charles
Wenzlau, Wenzlau Architects.
Housinl Trust Fund 9O-0ay Committee Report 10 the Mayor
Page S
Special guests/advisors to the Housing Trust Fund: Mary Brooks, Housing Trust Fund
Project; Lee Desta, Community Builder, U. S. :Department of Housing and Urban
Development; Art Sullivan, Executive Director, A Regional Coalition for Housing
. (ARCH), BeUevue, W A .
At the first meeting of the Committee, the group divided into three subcommittees to deal
with three components of the housing trust fund: (1) Revenue Source, (2) Administration
. and (3) Program (targets) and Feasibility.
. REVENUE SOURCE
RfwfllJue Source GoIII.
Key to any HTF is a revenue source. City HTFs are a challenge compared to that of a
state-based HTF simply due to the more limited array and amount of revenue sources
available to cities. While fmding an appropriate dedicated funding sources is the most
difficult part of the Housing Trust Fund development process, once found, housing trust
funds typically leverage other funding dollars for projects at the rate of $5 for every $1
dollar provided by the trust
The Revenue Source Subcommittee invented a unique program suited singularly to
Bainbridge Island which combines voluntary contributions with public funds. The '
voluntary contributions are from those involved in the market-rate housing production
and sales that have made such an impact of the Island: lending institutions, real estate
companies and possibly others is then matched by a contribution from the City. The
City's match would flow from the general fund in addition to an increase in the planning
and building fees charged to developers. Currently, the City charges only a fraction of the
cost of administering the planning program. Other cities, using similar fees for affordable
. hOUSing, have proven the nexus between the rising cost of market rate housing-from
which developers profit-and the increasing difficulty in providing affordable housing to
those in the moderate and lower income ranges. Yet, the Committee recognized that many
others in the community contribute to the high cost of housing and benefit from its
presence on the Island.
Other sources of revenue which spread the cost across more of the community other than
those developing new housing are being investigated (e.g., business and occupation tax,
business license tax, condominium conversion fee, demolition fee, special property tax
levy).
Voluntary Revenue ContrIbution.
Part of the search for revenue sources lead the Committee to ask about the kinds of
contributions that could come from sources other than those from the public coffers. The
reasoning behind this search was that many other individuals and businesses benefit
directly from the development, refinancing, and resale of housing. In other communities,
where there are neighborhoods left out of the general economic health of the broader
Housin. Trust Fund 9O-Day Committee Report 10 the Mayor
Page 6
'community, lenders are required, by federal law, to demonstrate their reinvestment into
their local community by servicing loans in those neighborhoods. There is no particular
neighborhood that has been neglected or discriminated against in terms of lending on
Bainbridge Island. However, there exists a lack of lower and moderate-income housing
units for which to provide financing.
One of the first steps toward gathering a variety of revenue sources is educating the public
of the community responsibility for affordable housing and the benefits of affordable
housing.
It is essential that the source of funding reflect the ideal of fairness in sharing the cost of
all housing. The businesses on the Island are major benefactors from low cost housing:
they employ individuals earning their rent and mortgage payments in the service sector on
the Island.
Rev..". Soures SubcommitIH Recommendations
The following consideration of several substantive and permanent funding sources for the
City of Bainbridge Island Housing Trust Fund, the Subcommittee recommends the
proposed revenue sources outlined below. Taken as a whole, these sources represent a
combination of private and public sources and their selection is based on the rationale
that, in any given community, the rising cost of housing is directly related to population
growth and development pressures in that community. Thus, just as the case is often
made in the context of "impact fees", a case can be made here that significant sources of
the funding for a housing trust fund should be monies generated directly in relation to
growth and development activity.
Surcharges on Planning, Land Use and Building Permits
This proposal contemplates the establishment by ordinance of a unifonn set of surcharges
on all planning, land use and building permits required by the City of Bainbridge Island.
The individual permitting activities are listed in the attachment together with a statement
of fees collected by COBI through September of this year and an annualized estimate of
these fees for 1998.
At present the City's fees for such serviceS, by statute, .cannot exceed the cost of
providing them. Under the City's current fee structure, approximately 50% of the cost of
planning and land use services and about 75% of the cost of building permit services are
covered by fees. Thus, the amount of a surcharge which the City can impose is limited to
approximately 50% on planning and land use services and approximately 25% on
building permit services.
In recognition that a schedule of surcharges at these levels would push the outer limit of
what is possible, we are recommending a schedule which is less aggressive: 25% on
planning and land use services fees and 12.5% on building permit fees. Applying these
hypothetical surcharge levels of 25% and 12.5% to the fees generated at current activity
levels, the additional revenue which the City could generate and make available to the
" Houaing Trust Fund 9O-Day Committee Report 10 the Mayor
Page 7
HTF through the budgeting process would be approximately $161,000 (For details, see
appendix: Affordable Housing Funding Options).
Tran.-:tion-based Voluntary Contribution from Individuals and
BusiItesMI. Directly R.11Ited to R_I EsfBta Activities
This proposal contemplates that, at each "point" in a real estate transaction (a "point"
being defined as a sale of a property, closing of a loan, completion of an appraisal or
inspection, issuance of a policy of title insurance or home owner's insurance, etc.). the
individual or business involved would make a voluntary contribution to the HTF. Such
amounts would be determined by the contributors and paid into the HTF periodically or
in conjunction with some annual event such as the renewal of business licenses.
As an example, here is a list of the hypothetical contributions which might be generated
from the close of the sale of just one single family residence:
Listing Agency
Selling Agency
Escrow Office
Lender*
Appraiser
Property Inspector
Titl~ Insurance Company
Homeowner's Insurance
TOTAL
$50
$50
$25
$25 *
$10
$10
$25
$25
$220
* Washington MutuallBainbridge Island has already committed to this contribution and
conversations with other individuals and businesses are underway.
Given that, in recent years there have been between 300 and 400 residential sales per year
in Bainbridge Island, the total monies generated annually for the HTF by this proposal
could be in the range of $66,000 to $88,000 annually.
'I Housing Trusl Fund 9O-Day CommillOe Report 10 the Mayor
Page 8
Mstching Funds from COSI GfIIHInIl Fund
This proposal contemplates that the monies generated by. the volunteer contribution
outlined above be matched on a I: 1 basis by the City of Bainbridge Island from General
Fund revenue sources. Assuming that the estimate of voluntary monies is valid, this
proposal could also generate between $66,000 and $88,000 per year.
The combination of these sources, at present activity levels, could generate annual
revenue in the range of:
@ 300 sales
@ 400 sales
'.
Planning and Land Use Surcharges)
Building Pennit Surcharges)
Voluntary Contributions
COBI Matching Funds
$107,000
$54,000
$66,000
$66,000
~:
\
\
. $107,000
$54,000 .
$66,000 .
$66,000
~-O' 1<-'
C'.:C
-; ,j~~, ,"
TOTALS
$293,000
'<
"--- -
$337,000
Con.u:ler8tJons for Future Public Revenue Source
The Subcommittee further recommends that, within five years, these revenue sources be
supplemented with revenue generated from special affordable housing levy financing
passed by the electorate of Bainbridge Island (See appendix concerning a special property
tax levy per RCW 84.52.105).
ADMINISTRATION
The Administration Subcommittee used the model provided by ARCH: A Regional
Coalition for Housing. ARCH has an affordable housing delivery system that has worked
. in this re&ion and in the existing housing climate. More importantly, the components of
the administratioR demonstrated by ARCH closely resemble a successful model of fund
administration in use on the Island by the Health, Housing and Human Services Council.
The Administration Subcommittee understood the importance of accountability of
funding uses, low-cost administration (as well as self-sufficiency) and continued diverse
community participation. Central to the model is use of existing City staff and other
existing support agencies such as the Kitsap County Consolidated Housing Authority. .
Below is an organization chart depicting the line of control and advisory relationships of
the required functions. It is assumed that the HTF will be starting with a limited operating
budget and therefore the City should provide certain functions from departments already
in existence such as accounting and planning.
I See the appendices for the proposed individual sources for the planning and building fees: "Affordable
Housing Funding Options."
Housing Trust Fund 9O-Day Committee Report 10 the Mayor
Page 9
.
The Administration Subcommittee recommends that technical assistance consulting is
utilized on an as-needed basis and the City-employed planning staff person (a housing
planner) coordinate between such a technical consultant and the rest of the HTF
organization.
IBainbridae Island City Council .-:~ '\, , .
t_......_ 1'1', ~ r
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Executive Committee
. Mayor, City Administrator, Member of the .
City Council, Citizen-At-Large 1(=--
,
Administrative Prop-am Coordination CODlDlunity
Services City Housing Planner Advisory Board
Accounting and an Performed by
I.
Legal Independent HHHSC
Etc. Development Consultant
Provided by COBI
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Administration 0tJt811: Houlllntl Trust Fund Lending Crlterls
The purpose of the Bainbridge Island Housing Trust Fund (HTF) is to create and preserve
affordable housing for low and moderate income households. In special circumstances
middle income households may also be assisted.2
The HrF application includes a number of criteria that are used by the Community
Advisory Board to complete its evaluation and recommendations. The purpose of the
lending criteria is to allow applications to be evaluated for feasibility and timeliness,
prioritized for funding, and establish conditions for funding. This report summarizes the
criteria used to evaluate applications for HrF.
St;hedu,. ..d Revlfiw PrOCflllB
. The HrF conducts one funding round each year. The typical schedule for the funding
, round has applications due in March, Executive Committee recommendations completed
in May and Council action in June.
An initial screening of applications is conducted by staff to determine the completeness of
each application, with applicants informed of additional information needed. Applications
Zpor the purpose oCtile Bainbrid,e Island'Trust FlInd the Seattle MSA median income. as defined by HUD,
wiIl be used.* .
Housing TllIIl Fund 9O-Day Committee Report 10 the Mayor
Page 10
that are very incomplete may not be given further consideration that round. HTF staff
,prepares a summary of the submitted applications which is forwarded to Community
Advisory Board.
The final staff reports are forwarded to the Community Advisory Board (CAB) for their
review and funding recommendation. The CAB will appoint a subcommittee which w~ll
be comprised of professional expertise in housing, lending or related areas. The CAB will
always contain members who have professional expertise in mortgage underwriting, and
development of housing (e:g., for-profit residential developer, not-for-profit affordable
housing developer).
As vacancies occur, the CAB will maintain expertise in these areas. In this way, financial
~xpertise will be available in reviewing applications prior to referral to the Executive
Committee. The CAB will always include at least three members with private lending or
residential development professional background. CAB reviews eac;:h application and
identifies any issues which require clarification of further review/research. During the
$econd meeting, the CAB will prioritize the applications and issue a funding
recommendation, and recommend conditions to be met before funds can be expended.
These recommendations will be voted for approval by CAB.
The Executive Committee receives the funding recommendation from Health, Housing
~d Human Services Committee. The Executive Committee is comprised of the M~or,
City Administrator, member of City Council, a Citizen at Large. The Committee reviews
the CAB recommendation and approves it -- with or without modification.
The Executive Committee recommendations are then forwarded to BI City Council.
Council approval is required for a funding allocation to be made.
If the City Council approves funding for a project, the Program Coordin~tor provides
administrative assistance with preparing contracts and monitoring projects.
'f;omp/fllen... of AppNcstlons
.1An initial screening will be performed to detennine the completeness of each application.
trhe HTF application form requests infonnation to help measure how projects meet
Fogram criteria. Information requested in applications is described in more detail below.
Projects that 'are deemed incomplete may be'rejected without further consideration.
"'..;c Eligibility
trbe Housing Trust Fund has established some basic guidelines that all proposals must
pleet. These include:
Eligible Applicant
i. Non-profit organizations
. Private for-profit organizations
. Public housing authorities
Housing Trust Flind 9O-Day Commillee Report 10 the Ma~
Pace 11
'. Public development authorities
Partnerships involving combinations of the above groups are encouraged, especially in
the case where a private for-profit organization applies for funding.
Income Served
Use of the RTF must be directed towards eligible beneficiaries -- households with
incomes up to 95% of the Area Median Income (AMI) adjusted by household size as
defined by HUD for the Seattle MSA. In some cases, the beneficiaries may have incomes
at or below 120% of AMI.
Use of Funds
There is a wide range of eligible uses of RTF. These include acquisition, construction,
rehabilitation, and others. If CDBG funds are used project must comply with any CDBG
'restrictions (e.g., not available to for profit developers, constraints on using for
construction costs).
. Feasibility
:Once a complete application is received, it will be reviewed in further detail. The overall
intent is to detennine whether the project will be capable of accomplishing established
!,oals in a reasonable time frame, or whether assumptions/omissions made by the
;proponent cast doubt on project feasibility.
; Development budget
Applicants provide detailed breakdowns of development costs, including: acquisition,
;constructionlrehabilitation, professional services, finance, site development and others.
Issues which may be evaluated from this infonnation include:
. Completeness-any line items missing from the budget breakdown, including
inappropriate contingency for the type of project.
. Do any of the line itemsappeal' to stand out (too high or too low)
. Are the overall per unit costs reasonable
'. Are the RTF per unit costs reasonable
. How do the Costs compare with other projects with, similar type work
'. Are the RTF costs eligible for CDBG fun~ use
lOperations Budget
jThe purpose of this budget is to show all the costs associated with the daily operation and
lmanagement of the project after it is completed, such as staff, supplies, insurance,
,professional services, utilitieS, repairs, reserves and the like. Key issues include:
'. Completeness - are all of the costs included, or are important items missing
. Is the vacancy rate built into the rent income project appropriate
. Are there "rainy day" fuIids (operating reserves and replacement reserves)
. Housing Truat Fund 9O-Day CommillOe Report 10 the Mayor
Page 12
. Do the costs provided appear reasonable
· Continuity - will the budget support their needs years down the road
. Is the debt service less than the net operating income
. Is there a positive cash flow (e.g., For projects with private debt is there an
appropriate debt coverage ratio).
Support Services Budget
For some projects, support services are an integral part of the housing program. In these
cases information is requested on the support services budget. The purpose of this budget
is to identify all the casework, assessment, counseling, training/seminar, and other
support services, which are provided by the sponsor or by another agency (for or in
cooperation with the sponsor). These may be provided on or off-site. Key issues to
evaluate include:
.
. Does the support services budget account for all services provided.
. Are the fullding sources for the support services realistic.
. Is funding for support services potentially available on an ongoing basis? IT not, what
plans are there in the event a specific funding sources is lost.
Funding Sources/Commitment
In this section, the applicant identifies the amounts and sources of all the funds required
for development of the project. The applicant also provides the cUITent status of the funds
-- whether they have been approved (or not) for the project. Key issues include:
. Does the total of all sources equal the total of the development budget.
. Does the ratio of HTF dollars to other dollars seem high/have other potential sources
of.funding been reasonably assumed.
. Are private funding sources included at a reasonable level
. Is it realistic to expect other public funding sources to commit at the level indicated
. Does the schedule for the commitment of other funds seem timely
. Is there too much dependence upon a single funding source
Organization/T eam
A successful project starts with a sponsor who is experienced and well organized. When
appropriate, the sponsor may pull in other player for the team to help with the project, as
well as to operate it after construction. By knowing who is involved in project
development, and who will be involved in operating the project after construction, it will
be easier to evaluate the potential success of the proposal. Key issues include:
. Are the key team members identified -- do they have the right experience
. Does the sponsor have experience developing projects like the proposal. IT not, have
they brought in members to the team that have appropriate experience
. Is the construction manager identified - does she/he have experience
Housing Trust Fund 9Q-Day Commiaee Report to the Mayor
Page 13
· For providing housing-related social services, are the agencies/individuals identified
and do they have the appropriate skills
. Will the proposal have the potential to increase the capacity of a local organization,
thus increasing the area's overall organization capacity to provide affordable housing
Management Plan
This section addresses tenant selection, tenant interaction with management decision-
making (such as tenant councils, apartment manager, etc.), tenns of occupancy, routine
facility maintenance, and (if emergency or transitional housing) what are the support
service provision for the proposal. key issues to look for include:
. Are the daily and overall management provision clearly set forth and sound
. Do the provision (including if appropriate the availability of services) seem
appropriate for the type of facility
. If support services are included, how are they integrated into the project
. Do the tenants have reasonable provisions for management interaction
Site ControVSite Issues
Does the applicant have the "right" to use the property as proposed? This evaluation also
includes the appropriateness of the site for the proposed use. Key issues include:
. Is there fonnal site control (e.g., ownership, binding option or purchase agreement)
. Does the agreement allow sufficient time for the project to secure all fmancing,
permits, etc.
. Is the proposed use allowed under local land use regulations:
. Is the site appropriate for the proposed use (e.g., is there access to necessary services
for residents)
.
DisplacementlRelocation
This section only applies to "existing" residential units, and not new construction. It also
does not apply to vacant units. If existing tenants are displaced or have to be relocated,
they may be eligible for financial compensation. The key issues include:
. Will temporary or permanent displacement/relocation occur
. Is there a reasonable plan to address any potential displacement/relocation ,
. Have all reasonable efforts been made to avoidlreduce displacement/relocation
Timeliness
Addresses whether the components of the application can" individually and collectively,
be delivered in an appropriate time frame. Also if the application is premature to be
requesting funding. (Note: Other communities have created local funding programs with
several public funders to provide predevelopment loans. One purpose of such a program
is to provide some funding so that projects can address some basic issues before
requesting funds from public funders) Key issues include:
Housinl Trust Fund 9O-Day Commitlice Report 10 the Mayor
Page 14
. What are the time frames for commitment of funding sources
. Does site control cover all the time frames for funding commitment
. How soon will the project be ready to go
. If a project is relatively early in the process, does making a commitment now help the
project in any way (e.g., help to secure other funding)
. Are there any warning flags which suggest possible delay. If so, have they been
accounted for, or could they adversely affect the proposal.
Priority For Funding
Once applications are determined to be feasible, they are then evaluated against several
, other overall objectives of the HTF. This procedure is especially important when the total
IITF funds requested by an applicant exceeds the total HTF available. This evaluation can
help make the qecision about whether proposals should be funded at 'the current time.
Level of Affordability
The applicant must identify the income targets (expressed as a percentage of Seattle MSA
median income) of the intended tenants. Key issues to evaluate include:
. Are the intended tenants low or moderate income (no more than 95% of area median
income)
. If middle income (up to 120% AMI), what special circumstances justify the proposal
. Are the proposed rents (including utilities) affordable to the proposed tenants
. If applicable, comparison of proposed rents to existing rents in the project
. Comparison of proposed rents to average rents in the project's local area
Duration of Affordability
The applicant must propose a specific time period for which rents will remain affordable
to targeted tenants. The key issue here is:
. Will the applicant provide a duration of at least 30 years? Shorter time periods maybe
allowed, but the preference is fora minimum of 30 years.
Consistency with Bainbridge Island Housing Needs/Goals
The City of Bainbridge Island has housing g981s, policies and objectives set forth in its
Comprehensive Plan. Proposals are evaluated for consistency with these policies. In
addition the IITF has established a long term objective that funds be distributed
proportionally between several types of housing. If certain types of housing have
disproportionately been funded in previous rounds, the application packet will state a
preference for under funded types of housing. Key issues include:
. Is the project consistent with local housing goals and policies
. Has the community already taken some steps to help initiate the proposal, or
expressed support for the proposal
Housing Trust Fund 9O-Day Committee Report 10 the Mayor
Page IS
Underwriting
Underwriting criteria provide the documentation and other information necessary to
ensure that funds are not made available until certain conditions are met, therefore
minimizing the likelihood a project will not be completed as finally proposed. It can also
provide protections to maximize the city's ability to protect its long term interests in the
property. This can include items such as maintaining Affordability, property maintenance,
and repayment or recapture of city funds. Finally, underwriting criteria will determine in
what form funds will be made available (e.g., grant, loan, or deferred loan). Some
underwriting criteria will determine in what form funds will be made available (e.g.,
grant, loan, or deferred loan). Some underwriting criteria will be standard to all projects
while others may be developed to address specific unique issues for a certain project.
These underwriting criteria are incorporated into the funding contract, promissory notes
and/or regulatory agreements. Key criteria include
Cost/Funding Confirmations
Most projects begin with a series of cost estimates, that suffice for conceptualizing and
preliminary review . Yet before funds are actually committed to a project, costs are
verifIed. AppraisaVpurchase - sales agreements, appraisals, inspection reportslbids, and
the like, give certainty to costs - and confidence that there won't be any financial surprises
down the road. To the extent confmning information (e.g., appraisal) are not provided
with the application, there will be conditions included in the contract that this information
needs to be provided prior to receiving local funds. Key issues include:
. Are the cost conftrmations current
. Who petfonned the confinnations
. Do the confIrmations verify the proposed project
Land Development Issues
Applicants are required to provide information conftrming that the proposed use is
allowed (letter from permits, etc.), and any potential significant site constraints identified
and, if applicable, addressed. Types of reports that can be required include:
. Inspection report
. HazardsIW etIands survey
. Soil test
. Zoning verification
Form of Assistance (loan/grant)
Funds can be given to the applicant in the form of a grant, or repaid over time in the form
of a straight or 'deferred' loan. In recommending the form of assistance issues include:
. Does the project have enough cash flow initially to make loan repayments
immediately,
Housilll Trust FuRd 9O-Day CommillOe Report 10 the Mayor
Page 16
. Does the project have the potential to increase cash flow in the fuwre, thus allowing
repayment at some fuwre point in time, or when certain cash flow standards are
achieved (e.g., net cash flow is greater than a predetermine % of gross income)
. Would loan repayment affect Affordability in the project
. Is a project serving certain types of a households that funds should be made available
as a grant (e.g., transitional housing, very low income families, handicapped
individuals)
Formal Agreements
Legal agreements (contracts, promissory notes, regulatory agreements) are used to
. formalize the financial relationship between the lender: (local jurisdiction) and the
recipient, governing the award of lITF dollars. Key elements of these agreements include:
Contract:
. List conditions (as described above) that must be met prior to releasing funds (e.g.
other funding commitments, pennits, final budgets)
. All funding conditions must be m~t before funds are released
. Any significant revision to the scope of work or budget must be submitted for review
and approval of staff
. Establishes time frames in which key steps must be completed, or funding reservation
can be withdrawn unless an extension is approved by staff
. Establishes timing/procedures for drawing funds. (In what proportion local fundS will
be drawn relative to other finding sources. For example, for private developers,
developer funds may be expected to be spent proportionally to local funds)
. City can recapture funds if not used for intended purposes
Promissory Note:
. Establishes any terms for repayment of funds
. Secured by recorded deed of trust.
. City can cure defaults on any 'senior' loans
. Subordinates city loan to 'senior' loans (typically private loans)
. Funds made available as a non-recourse loan to applicant
Regulatory Agreerpent:
. Recorded agreement that establishes the levels and terms of Affordability
. SpecifICS projects monitoring/reporting obligations
. IT ownership project, establishes process for resale, and how to calculate future
affordable price
Housing Trust Fund 9O-Day CommillOe Report 10 the Mayor
Pace 11 .
PROGRAMJFEASIBIUTY
Progrsm/F..lblNty Subcommittee of the Housing Trust Fund
The ProgramlFeasibility Subcommittee was charged with making recommendatiQns !
about the target population, eligibility and what kinds of projects/programs the funds
should support. The City of Bainbridge Island Comprehensive Plan Housing Element
(1994) established affordable housing needs on the Island. The data and conclusions of
the Housing Element fonn the foundation for our recommendations.
The Need
'. A need assessment was done by Kitsap County in 1993. Based on that assessment, the
County recommended 2,900 affordable housing units (rental and purchase) on
Bainbridge Island. Please refer to pages 1,2,3 of the Housing Element
. Ross Thomas provided our ProgramlFeasibility Subcommittee with demographics for
the Island from 1997. This data showed that 45.7% of Island citizens make less than
$49,000 a year. This number represents 3,104 households. Given the current incomes
of existing households of the Island, 29% of the total households could qualify to buy
only 6.5% of the existing housing stock on the Island. In other words. 93.5% of the
housing stock is out of reach to most moderate and middle income households.
. If rental units were available, the market price for 2-bedroom rental units in the City
Center of Winslow would range from $625-$850 per month. The market prices for
three bedroom rental units in Winslow would range from $950-$1200.
Based on 30% of income spent on housing, the 10.33% of households who make up
to $15,000 income per year could afford $375 per month rent. 8.5% of our population
could afford $375 to $625 per month on rent. 10.6% could afford $624 to $850 per
month on rent. It is in this range that households could find market rate units. The
housing needs assessment denotes that there is an almost zero vacancy rate in rent
assisted units (around 2%'overall according to Trends).
. The ProgramlFeasibility Subcommittee saw the nccd and it is great. The
Comprehensive Plan recommends an adcJitional 550 multi-family rental units by the
year 2012. The majority of the 550 should be affordable to moderate and lower
inCome households. Currently, there are 73 guaranteed affordable rental units (less
senior housing). This includes projects by HRB and KCCHA. There are a number of
market rate rental units on the Island that are affordable to moderate. and lower
income households. We have anecdotal evidence from Helpline House, HRB and
KCCHA that corroborate the continuing need for affordable housing. The
Subcommittee was unable to detennine the number of accessory dwelling units
available'
J{ousing Trust Fund 9O-Day Commi_ Report 10 the Mayor
Page 18
. Types of projects and programs the HTF is proposed to support based on identified
need in the community: (a) preservation of existing affordable housing stock, (b)
rental units - singles and large households, (c) first time home buyers-funding to
support education and identify loan sources, (d) education to promote development of
affordable housing by attracting developers, encourage lenders to participate in
affordable housing financing, to inform those in need and to gain community support.
. Other criteria: (a) allows for affordability in the future, (b) design consistent with
Island values, (c) create conservation of energy efficient homes to improve
affordability, (d) environmentally friendly home design and function.
Subcommittee Observations
There are two gaps between recorxunended housing-cost related guidelines for Kitsap
County and Bainbridge Island. One gap is the difference in median household income on
the Island as compared to Kitsap County. Bainbridge Island's median income ($54,337) is
13% higher than the median income of Kitsap County ($48,100). The County guidelines
are used to generate funds from affordable housing grants. For the purpose of the Housing
Trust Fund, and perhaps other affordable housing programs initiated by the City,
Bainbridge Island incomes and housing costs correlate more closely to SeattlelKing
County rather than Kitsap County. Using SeattlelKing County figures makes home
ownership opportunities more feasible to develop given high land costs.
The second gap is the difference median home values between jurisdictions. In 1997, the
median home value in Kitsap County was $136,000, whereas the median home value in
the same year on Bainbridge Island was $229,077. Moreover, developers tell us that
development costs are 15% higher on the Island compared to the County: These factors,
in addition to the high cost of land on Bainbridge Island make it difficult for developers
and non-profits to build affordable housing.
In today's economy, a full-time employee must make more than double minimum wage
to affordable an average two-bedroom rental in our state's urban areas. The
PrograrnsIFeasibility Subcommittee interviewed Island stores, Day Road businesses,
Sateway, Thriftway, Bainbridge Island Police, the City and the School District employees
and discovered that half of these people live off-Island. Of course, we cannot detennine if
the location of their housing is by choice or affordability. People with median incomes for
Bainbridge Island cannot afford to buy here and people with moderately low incomes
cannot afford to rent here. Amazingly, there are some households who manage to find
housing despite rising housing costs. The Subcommittee's study found that 25% of Island
household malce $25,000 or less per year. More study is needed to learn more about the
condition of the housing, its age, tenancy and cost burden to such households (See
appendix: "Housing Options for Seattle Residents with Low and Moderate Income").
Housing Trust Fund 9().Day Committee Report 10 the Mayor
Page 19
Recommendations
In general, linkages to other Island affordable housing-related programs should be
encouraged and supported. Affordable housing is linked to the local economic,
environmental and community health, and should be linked to a broader range of policy
decisions to support affordable housing goals.
The Program/Feasibility Subcommittee and the Committee as a whole debated the issue
of target populations and the types of programs the Housing Trust Fund could support at
each of its meetings. One exercise, presented in detail in the appendices, helped the
Committee identify and prioritize who would be assisted through the HTF and how (see
appendices: Housing Trust Fund Criteria Worksheet and Ranked Housing Trust Fund
Criteria).
. Findings
. Target population of the HTF is the median income level and below.
. The majority of the HTF would pay to assist development of new, affordable units.
. The HTF would pay to provide opportunities to potential home buyers to purchase
permanent affordable homes.
. Eligibility for HTF dollars: (a) non-profit organizations, (b) developers, (c)
recommend that HTF fund be used to leverage other funding sources to assist
developers in creating affordable units.
The Program/Feasibility Subcommittee suggests that the Housing Trust Fund initially
assist affordable housing by:'
. Providing down payment assistance to for-purchase units created through the
Affordable Housing Ordinance (whether rental or for-purchase and at the income-
level required per unit). For example, the HTF could provide down payment
assistance up to $10,000 per unit for low, moderate or middle income home owners.
. Rehabilitation loans for low-income households (up to $5,(00)
. A final key issue for the Housing Trust Fund to evaluate is the amount of funding needed
to effectively serve the development and preservation of affordable housing. The
Committee asked the question: How much money each year is necessary to support and
sustain a lITF7 Given the goals set forth in the Comprehensive Plan, production thus far,
due to the Affordable Housing Ordinance (BIMC 18.90), and other infonnation available
it is possible to estimate the potential need. the revenue sources may not provide all that
is need to create all the affordable housing needed on the Island, the amount provided by
the HTF could help leverage this amount. The amount needed will depend on the range of
loans and grants and the specific income levels of households to be served in any given
year. However, as an estimate, the funding needed to serve 50 households per year with a
down payment and rehabilitation loan/grant program, as mentioned above, could be in the
range of $285,000 to $375,000. These estimates are a reasonable goal given the revenue
sources identified by the Committee (For detail, see appendix: How much funding is
needed per year to be effective?).
HOusing Trust Fund 9O-Day Commillee Report 10 the Mayor
Page 20
APPENDICES
; Housing Trust Fund 9O-Day Committee Report 10 the Mayor
Page 21
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Other sources of revenue: a special property tax levy per RCW 84.52.105.
"In 1993, the Washington Legislature passed a bill that enables a county, city or town to
impose additional regular property tax levies of up to 50 cents per thousand dollars of
assessed value of property in each year for up to ten consecutive years to finance affordable
housing for very low income households [for BI: very low = $22,800 for a 4-person
household]. It requires a majority of the voters of the taxing district voting on a ballot
proposition that authorizes the levy" (Current Topicsfrom the Housing Trust Fund Project,
August 1996, p.17).
84.52.105 AtJordable housing levies authorized-Declaration of
emeraency and plan required. (1) A county, city, or town may impose additional
regular property tax levies of up to fifty cents per thousand dollars of assessed value of
property in each year for up to ten consecutive years to finance affordable housipg for
very low-income households when specifically authorized to do so by a majority of the
voters of the taxing district voting on a ballot proposition authorizing the levies. If both a
county, and a city or town within the county, impose levies authorized under this section,
the levies of the last jurisdiction to receive voter approval for the levies shall be reduced
or eliminated so that the combined rates of these levies may not exceed fifty cents per
thousand dollars of assessed valuation in any area within the county. A ballot proposition
authorizing a levy under this section must conform with RCW 84.52.054.
(2) The additional property tax levies may not be imposed until:
(a) The governing body of the county, city, or town declares the existence of an
emergency with respect to the availability of the housing that is affordable to very low-
income households in the taxing district; and
(b) The governing body of the county, city, or town adopts an affordable housing
financing plan to serve as the plan for expenditure of funds raised by a levy. authorized
under this section, and the governing body determines that the affordable housing
financing, plan is consistent with either the locally adopted or state-adopted
comprehensive housing affordability strategy, required under the Cranston-Gonzalez
national affordable housing act (42 U.S.C. Sec. 12701, et seq.), as amended.
(3) For purposes of this section, the term "very .low-income household" means a
single person, family. or unrelated persons living together whose income is at or below
fifty percent of the median income, as detem'1ined by the United States department of
housing and urban development, with adjuSbnents for household size, for the county
where the taxing district is located.
(4) The limitations in RCW 84.52.043 shall not apply to the tax levy authorized in
this.
tfousing TNSI Fund 9O-Day Commiuee Report 10 the Mayor
Page 23
Howing Trwt Fund Criteria Worksheet
Income Criteria:
Extreme Low Income = 30% and below AMI
Very Low Income = 30% to 50% AMI
Low Income = 50% to SO% AMI
Moderate Income ,: SO% to 9S% AMI
Middle Income,: 9S'lL to I2O'lL AMI
Criteria MuItipIler* Extreme Very Low Moderate MIddle
Low Low Income Income Income
Income Income S01ro to SO'lL to !IS'lL to
3O'lL 8DcI 3O'lLto SO'll> !IS'lL 120%
below SO'lL
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Mods . Com 'vc Plan li_ S S 24 24 40 32
Ease in IIIOlIitoriu S S IS IS 25 20
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years
Proximity to public tral1Sportation, or, S 10 S 24 40 32
deve1olll11Alnl includes comoonent .'
Providel a contiDllum of 9 9 27 27 45 36
Provides education concerning affordable 10 10 10 30 SO 40
hOllSin.
Provides affordable housing in an area with few 10 10 '10 30 SO 40 -
existiRJI affordable OIllIOrlWlitiea
Provides affordable housing to several income 10 10 10 30 SO 40
levels witllin a sintrle de
bililV witb neillbborbood 10 10 10 30 SO 40
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Grant fundlnll 10 10 30 30 SO 40
Lonll-tenn loan S .S 24 24 40 32
Brid2e (.bort-term) loan fundln2 10 10 30 30 SO 40
Promotes mixed-income housing
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50
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Housing Trusl Fund 9O-Day Committee Report 10 the Mayor
Page 24
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Housing Options for Sattle Residents with Low and Model'8te Income
The next page illustrates what is affordable to the various income levels. There is a gap
between what working people can earn on the Island and the cost housing available.
While generated for Seattle for 1997, the next page applies to income levels appropriate
tor Bainbridge Island in 1998.
"ouaing Trust Fund 9O-Day Committee Report 10 the Mayor
Page 29
How much funding is needed per year to be effective?
The following are examples of possible funding scenarios that could be considered upon
implementation of the Housing Trost Fund.
For 50 units per year:
A combination of $10,000 and $5,000 loans or grants. The variation of the loan/grant
from SO% to 100% is meant to reflect the possible variation in need per households
served.
Scenario 1 Scenario 2
Down payment Program
25 loans/grants reserved for up to $10,000 $250,000
(maximum amount)
-OR- 13 loans/grants @ 100% and $130,000
12 loans/grants @ 50% $60,000
. Subtotals $250,000 $190,000
: Rehaltilltation Program
'25 loans/grants reserved for up to $5,000 $125,000
(maximum amount)
.-OR- 1310anslgrants @ 100% and $65,000
1210anslgrants @ 50% $30,000
lSubtotals $125,000 $95,000
,Grand Total $375,000 $285,000
'The funding needed to serve 50 households per year with a down payment and
irehabilitation loan/grant program could be in the range, of $285,000 to $375,000.
1H00000g Trust Fund 9O-Day CommillOe Report 10 the Mayor
Page 28
Provides affordable housing in an area with few existing affordable opponunities for Very Low Income
Provides affordable housing in an area with few existing affordable opponunities for Extremely Low
Income
Provides affordable housing to several income levels within a single development for Very Low Income
Provides affordable housing to several income levels within a single development for Extremely Low
Income
Compatibility with neighborhood for Very Low Income
! Compatibility with neighborhood for Extremely Low Income
Provides home ownership opponunities for Very Low Income
Provides home ownership opportunities for Extremely Low Income
Demonstrates high degree of leverage of other funding sources for Extremely Low Income
Grant funding for Extremely Low Income
Bridge funding for Extremely Low Income
Preserves existing affordable housing for Extremely Low Income
j Makes existing housing more affordable for Extremely Low Income
.' Recognizes existing housing need for Extremely Low Income
, Promotes mixed-income housing for Extremely Low Income
'Provides rental opportunities for Middle Income
; Provides education concerning affordable housing for Extremely Low Income
i~re 019
'Provides a continuum of housing for Extremely Low Income
~af8
, eel a CP Goal for Very Low Income
jProximity to transponation for Very Low Income
'lLong-tenn loan funding for Extremely Low Income
e.' 7
payment assistance to i1lC01l1C qualified Very Low Income
". . payment assistance to income qualified Extremely Low Income
tOft 01 ,
. viro1lll1entaIly friendly for Very Low Income
~vironmentally friendly for Extremely Low Income
~nitoring Extremely Low Income
$ousing Trust Fund 9O-Day Commiaee Report to the Mayor
Page 27
Provides education concerning affordable housing for Low Income
, Provides affordable housing in an area with few existing affordable opportunities for Low Income
; Provides affordable housing to several income levels within a single development for Low Income
Compatibility with neighborhood for Low Income
Provides home ownership opportunities for Low Income
Demonstrates high degree of leverage of other funding sources for Low Income
Grant funding for Low Income
I Bridge funding for Low Income
- Preserves existing affordable housing for Low Income
; Preserves existiDl affordable housing for Very Low Income
, Makes existing housing man: affordable for Low Income
'Makes existing housing more affordable for Very Low Income
l RecogDizes existing housing need for Low Income
: Recognizes existing housing need for Very Low Income
: Promotes ItIixed-income housing for Low Income
· Promotes mixed-income housing for Very Low Income
; EnvirotunentalI, friendly for Micldle Income
,Ie_ur ~ .
) Down peymentusistance to income qualified Middle Income
jJcore ., 1.7
1Provides a continuum of housing for Low Income
:Provides a continuum of housing for Very Low Income
"Score 16 25
lEase in mOnitoring for Moderate Income
l~'" ., ~
~Meet a CP Goal for Low Income
-,Proximity to transportation for Low Income
lLong-tenn loan flmding for Low Income
~Long-tenn loan funding for Very Low Income
!Meet a CP Goal for Extremely Low Income
=.,21
;, payment usistance to income qualified Low Income
~:'m:itoring for Middle Income
jprovide rental opportunities for Moderate Income
!:o::tally friendly for Moderate Income
; viromnentally friendly for Moderate Income
~ 1615
.. in monitoring Low Income
~ in monitoring Very Low Income
t::s9f10
;.pennanendy affordable housiDl for 30 years for Very Low Income
~reates pennancady affordable housing for 30 years for Extremely Low Income
,!Proximity to transportation for Extremely Low Income
IfProvides education concerning dordable housing for Very Low Income
iHousing TIllS! Fund 9O-Day CommillOe Report 10 the Mayor
Page 26
Ranked Hou.lng TlU$t Fund Criteria
. HIm. PrioritY (~l"e of SO)
j CreateS permanently affordable housing for 30 years for Moderate Income
Provides education conccming affordable housing for Moderate Income
Provides affordable housing in an area with few existing affordable opportunities for Moderate Income
Provides affordable housing to several income levels within a single development for Moderate Income
Compatibility with neighborhood for Moderate Income
Provides home ownership opportunities for Modcratl:l Income
Provides rental opportunities for Extreme Low Income
Demonstrate high degree of leverage of other funding sources for Moderate Income
Grant funding for Moderate Income
Bridge funding for Modcratl:l Income
, Preser"oleS existing affordable housing for Modcratl:l Income
Makes existing housing more affordable for Moderate Income
Recogaizes existing houIing Deed for Moderate Income
Promotes mixed-income housiDg for Moderate Income
,Score ~ 45
, Provide continuum of housing for Moderate Income
i Score _ 40
~ Meet a CP Goal for Moderate Income
i Creates permanently affordable housing for 30 years for Middle Income
,! Proximity to transportation for Moderate Income
1 Provides oduc:ation cOnceming affordable housing Middle Income
1 Provides affordable bousiDl in an area with few existing affordable opportunities Middle Income
! Provides affordable bousing to several income levels within a single development Middle Income
tCompatibility with neighborhood Middle Income
1 Provides bome ownership opportunities for Middle Income
1 Provides rental opportunities for Low Income
Preserves existing affordable housing for Middle Income
~Makes existing housing more affordable for Middle Income
!I.ecogaizes existing housing IlCleCI for Middle Income
:Promotes mixed-income housing for Middle Income
JProvidea rental opportunities for Very Low Income .
,jDemOIlltrateS hilb degree of leverage of other funding sources for Middle Income
!Grant funding for Middle Income
jBridge funding for Middle Income
'Long-term loan funding for Moderate Income
~"36
, videa a continuum of housing for Middle Income '
't're ol35 '
: wn payment assistance to iDcome qualified Moderate Income
tore ol32
'. eel a CP Goal for Middle Income
jProximity to trauportation for Middle ,Income
!Long-term loan funding for Middle Income
~ eanently affordable housing for 30 years for Low Income
~OUIing Trust Fund 9O-Day CommillOe Report 10 the Mayor
Page 2.5
-<).1l.
~\\~
November 13, 1998 <
y-
for
The Bain · . Island
Housing. Trust Fund
AOO-pay Mayor's Committee Report
REPORT SUMMARY
....... ~ :, .,: - or':' ... .......... ,. ....-:. . .".{
3
THE COMPREHENSIVE PLAN'S HOUSING ELEMENT-ENABLING LANGUAGE 3
POTENTIAL REVENUE SOURCES: 3
ADMINISTRA TION OF THE TRUST FUND 4
POTENTIAL PROGRAMS SUPPORTED 4
PARTNERSHIPS 4
THE. REPORT 4
MISSION OF THE HOUSING TRUST FUND 5
COMMITTEE MEMBERS 5
REVENUE SOURCE 6
REVENUE SOURCE GOALS 6
VOLUNTARY REVENUE CONTRIBUTIONS 6
REVENUE SOURCE SUBCOMMnTEE RECOMMENDATIONS 7
SURCHARGES ON PLANNING, LAND USE ~ BUILDING PERMITS 7
TRANsACTION~BASED VOLUNTARY CONTRmUTION FROM INDIVIDUALS AND BUSINESSES
DIRECTLY RELATED TO REAL ESTATE ACTIVITIES 8
MATCHING FUNDS FROM-COBI GENERAL FuND 9
CONSIDERATIONS FOR FUTURE PUBLIC REVENUE SOURCE 9
ADMINISTRATION 9
ADMINISTRA TION DETAIL: HOUSING TRUST FUND LENDING CRITERIA 10 .
SCHEDULE AND REVIEW PROCESS 10
COMPLETENESS OF APPLICATIONS 11
BASIC ELIGIDILITY 11
FEASmILITY 12
. PRIORITY FOR FUNDING 15
. UNDERWRITING 16
PROGRAMlFEASmILITY -18
PROGRAM./FEASIDILITY SUBCOMMIlTEE OF THE HOUSING TRUST FUND
THE NEED .
SUBCOMMITrEE OBSERVATIONS
RECOMMENDA TIONS
. 18
18
19
20
Housing .Trust Fund 90-Day Committee Report to the- Mayor
Page 1
APPENDICES
21
AFFORDABLE HOUSING FUNDING OPTIONS 22
OTHER SOURCES OF REVENUE: A SPEC~L PROPERTY TAX LEVY PER RCW 84.,52.105. 23
HOUSING TRUST FUND CRITERIA WORKSHEET 24
RANKED HOUSING TRUST FUND. CRITERIA 2S
How MUCH FUNDING IS NEEDED PER YEAR TO BE EFFECTIVE? 28
HOUSING OPTIONS FOR SEATTLE REsIDENTS WITH Low AND MODERATE INCOME 29
Housing Trust ,Fund 90-Day Committee .Report to the Mayor Page 2
REPORT SUMMARY
A Bainbridge Island Housing Trust Fund (HTF) would be a permanent source of locally
controlled money dedicated to increasing affordable housing opportunities exclusively for
projects on Bainbridge Island. This can be accomplished through providing grants and
-loans for construction and ~ehabilitation projects, operation of non-profit organizations,
and assistance for financial hardship. The Housing Trust Fund Mayor's 90-Day - ~
Committee proposes that a Housing Trust.Fund could be an effective way for Bainbridge
Island to leverage other funding and resources to help reach'its affordable housing goals. ,
, The Comprehensive Plan's Housing Element-Enabling. Language
Developing a Housing Trust Fund specifically addresses the implementation of Goal 1-,
Policy 4 of the Housing Element wiQIin the Comprehensive Plan, which states:
liThe City recognizes the need to provide financing assistance for afford~ble
housing. Accordingly, the City will actively pursue funds that fl?ay include,
but are not Iiniited to, councilmanic bonds, general obligati.on bonds, real
estate excise tax, grants, and other available resources~ These funds may be
used to establish a Housing Trost Fund which will be used for purchasing
land, for assisting with financing, and for providing infrastructure to support
affordable housing on Bainbridge Island. II
Housing trust funds are often used to develop capacity within an organization and help non-
profit developers gain control of building sites. Funds also help leverage other sources of
. funding that could <;>therwise not be considered. Grants most often require matching funds
and proof of other financial support.
A h9using trust fund can be used to provide the most critical and difficult to come by
financing' for non-profit developers of affordable housing. Unlike for-profit developers,
non-profits rarely have reserve funding to provide the initial financing in 'order to get a
project underway. However, funds are generally available to for-profit developers if the
funding contribution i~ necessary to make the project feasible.
The Mayor's 90-Day' .Committee (the "Committee") for a Housing Trust Fund considered
the following key elements:
1) Source of revenue .
2) How the' fund is to be administere,d
3) What types of programs 'will be supported
4) How citizens can p~icipate
Potential Revenue Sources:
The Revenue Source Subcommittee, used .the expertise of the City of Bainbridge Island
Finance Director, Ralph Eells and the documented ~xperience of other housing trust
funds across the co~ntry to define potential revenue sources available for the Housing
Trust Fund. Their study suggests a combination of revenue sources to include: (1) fees
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 3
from planning and building permits, (2) specific housing-related business contributions,
and (3) matching funding from the City's general fund~ These revenue sources would
. yield an estimated annual HTF contribution of $293,000 to $337,OOO~
Administration of the Trust Fund
The Health, Housing and Human Services Council (HHHSC) has provided a suc;:cessful
model for the annual distribution of funds to local organizations from a City source~
Another model is the ARCH Housing Trust Fund that serves Bellevue and other Eastside
jurisdictio,ns. The Administration Subcommittee proposes a hybrid of the two models~
The. RTF administration of the fund would be the official City body responsible for
setting funding criteria, reviewing applications and monitpring use of funds.. This
recommendation is presented in considerable detail within the report..
Potential Programs Supported
The HTF can be a flexible instrument in helping the City meet its affordable housing goaIs~
Most importantly, the RTF may be targeted to meet the varying needs of today' s and
tomorrow's low and moderate income renter and owner households~ Each new funding _
round or each year, ~e Citizen's Advisory Board may review the uses of the funds and the
targeted income groups and suggest changes that reflect the needs in the community. An
" initial focus of the RTF program could be down payment assistance for low and moderate
income home buyers~ Serving these populations in this 'manner would facilitate affordable
housing development as currently required by the Municipal Code~ The implementati0n of
the HTF would demonstrate a coordinated program by addressing the demand-side of
housing (Bainbridge families) as well as the supply-side (the developer/builder)~
Partnerships
A Housing Trust Fund opens doors to a: great number of partnerships. The RTF would
provide a diverse number of resources, programs and organizations the incentive to
working together toward a conunon goa1~ The Mayor's Committee members are the
foundation of those partnerships representing many. of the players in housing. The local
partners provide the human infrast~cture for a sustainable and substantial Housing Trust
Fund. Also, the activities of the RTF Committee have caught the interest of the
Washington St~te Finance Commission, a potential partner and revenue source to
complement the sources raised through the HTF~ New~. of this opportunity will be
forthcoming shortly..
THE REPORT
The cost of housing on Bainbridge Island, whether rental or for-purchase, is out of reach
of most of the existing Island " workers. In order to afford to work on the Island, either a
household depends upon another income for household expenses, the household has been
fortunate enough to have purchased a home many years ago when housing prices were
affordable to moderate and lower income households, they receive some sort of subsidy
and live in the small number of subsidized units on the Island, or they have been lucky
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 4
enough to find one of the it:lfrequ~ntly vacant affordable housing units. Presently, new
households, whether singles or families, do not have these opportunities~
· The targets of the Housing Trust Fund are those households which depend on an
Island-based income to support their home~ The targets of the Housing Trust Fund are,
those households on which the Island depends upon as clerks, teachers, public
employees" wait staff, artists, crafts people, skilled workers. ~ ~ In short, those people
who make the Island run day to day in an interesting and economically viable way ~
· Housing affordability is a essential to Island businesses~
· Housing affordability is essential to maintaining cultural, social and economic
diversity on the Island~
The Committee set out on its investigation of what kind of housing trust fund would be
appropriate on l?ainbrldge Island with a clear idea of the guiding principles stated in the
Bainbridge Island Comprehensive Plan. Both the Committee and subsequently the mayor,
~ity council, and the public will need to have a very clear understanding of the purpose of
the Housing Trust Fund.
Mission of the Housing Trust Fund
The Housing Trust Fund 90-Day Committee was given the task of developing the
framework for a local source and use of funding for affordable housing.. The mission of
the Housing Trust Fund is too complement existing city ordinanc~s concerning affordable
housing, encourage developm~nt of moderate and lower income housing and to provide
funding for income groups not serviced by other funding sources currently available~
Committee Members
We benefit from a great deal of expert advice both from those on the Committee and .
those individuals we invited to inform us on various issues. The Committee w~ made up
of a broad cross section of those in oUf.community so that many of the talents of our
community might have an opportunity to contribute to this effort and that a variety of
ideas and issues could be examined and debated more fully.
Representatives on the Committee were:
Ralph Eells, Director of Finance, City of Bainbriqge Island; Joan Holcomb, Helpline
House; Karen Kline, Health, Housing and Human Services Council; Ed Kushner,
Windermere Real Estate, Bainbridge Isl~nd;:Jack MacArthur, President of the Chamber
of Commerce; Rod McKenzie, Land Developer, Bainbridge Island; Susan Millan,
Housing Planner, City of Bainbridge Island; Lynn Nordby, Administrator, City of
Bainbridge Island; Gretchen Novasio, Housing Resources Board; Preston Prince, Kitsap
County Consolidated Housing Authority; Garnie Quitslund, Housing Resources Board
(HTF Committee Ch~rperson); Chelle Roberts, Housi~g Resources Board Coordinator;
Stephen Rowley, Bainbridge Island School District; Dee Taylor, Washington State
Finance Commission; John Teising and Ross Thomas, Washington Mutual Bank
Bainbridge Island; Roger Waid; Kitsap County Consolidated Housing Authority; Charles
Wenzlau, Wenzlau Architects.
Housing Trust Fund 90.Day ,Committee Report to the Mayor
Page 5
Special guests/advisors to the Hous~.ng Trust _Fund: Mary Brooks, Housing Trust Fund
Project; Lee Desta, Community Builder, U~ s. Department of Housing and Urban
Development; Art Sullivan, Executive Director, A Regional Coalition for Housing
(ARCH), Bellevue, W A .
At the first meeting of the' Committee; the group d.ivided. into three subcommittees to deal
with three components of the housing trust fund.: (1) Revenue Source, (2) Ad-ministration
. and (3) Program (targets) and Feasibility.
,REVENUE SOURCE
-Revenue Source Goals
Key to any RTF is a revenue source. City HTFs are a challenge compared to that of a
state-based RTF simply due to the more limited array and amount of revenue sources
available to ~ities. While finding an appropriate dedicated funding sources is the most
difficult part of the Housing Trust Fund development process, once found, housing trust
funds typically leverage other funding dollars for projects at the rate of $5 for every $1
dollar provided by the trust.
The Revenue Source Subcommittee invented a unique program suited singularly to
Bainbridge Island which combines voluntary contribu.tions with public funds. The . ~.
voluntary contributions are from those involved in the market-rate housing production
and sales that have made such an impact of the Island: lending institutions, real estate
companies and possibly others is then matched by a contribution frqrn the City. The "
City's match would flow from the general fund in addition to an increase ~n the planning
and building fees charged to developers. Currently, the City charges only a fraction of the
cost of acJrninistering the planning program. Other cities, using similar fees for affor~able
. housing, have proven the nexus between the rising cost of market nite housing-from
which developers profit-and the increasing difficulty in providing affordable housing to
those in the moderate and lower income ranges. Yet, the Committee recognized that many
others in the community contribute. to the high cost of housing and benefit from its
presence on the Island. .
Other sources of revenue which spread the cost across more of the community other than
those developing new housing are being investigated (e.g., business and occupation tax,
business license tax, condominium conversion fee, demolition fee, special property tax
Ievy)~
Voluntary Revenue Contributions
Part of the search for revenue sources lead the Committee to ask about the kinds of
contributions that could come from sources other than those from the public coffers.. The
reasoning behind this search was that.many other individuals and businesses benefit
directly from the development, refinancing, and resale of housing~ In other communities,
where there are" neighborhoods left out of the gen'eraI economic health of the broader
Housing Trust Fund 90- Day Committee Report to the Mayor
Page 6
community, lenders are required, by federal law; to demonstrate their reinvestment into
their local community by servicing loans in those neighborhoods. There is no particular
neighborhood that has been neglected or discriminated against in terms of lending on
Bainbridge Island. However, there exists a lack of lower and moderate-income housing
units for which to provide financing.
One of the first steps toward gathering a variety of revenue sources is educating the public
of the community responsibility for affordable housing and the benefits of affordable
housing.
Itis essential that the source of funding reflect the ideal of fairness in sharing the cost of
all housing. The businesses on the Island are major benefactors from low cost housing:
they employ individuals earning their rent and mortgage payments in the service sector on
the Island.
Revenue Source Subcommittee Recommendations
. The following consideration of several substantive and permanent funding sources for the
City of Bainbridge Island Housing Trust Fund, the Subcommittee recommends the
proposed revenue sources outlined below. Taken as a whole, these sources represent a
combination ~f private and public sources and their selection is based on the rationale
that, in any given community, the rising cost of housing is directly related to population
growth and development pressures in that community. Thus, just as the case is often.
made in the context of "impact fees", a case can be made here that significant sources of
the funding for a housing trust fund should be monies generated directly in relation to
growth and development activitY6
Surcharges on Planning, Land Use and Building Permits
This proposal contemplates the establishment by ordinance of a uniform set of surcharges
on all planning, land use and building permits required by the City of Bainbridge Island.
The individual permitting activities are listed in the attachment together with a statement
of fees collected by COBI through September of this year and an annualized estimate of
these fees for 1998. .
At present the City's fees for such services, by statute, .cannot exceed the cost of
providing them. Under the City's current fee structure, approximately 50% of the cost of .
planning and land use services and about 75% of the cost of building permit services are
covered by fees. Thus, the amount of a surcharge which the City can impose is limited to
. approximately 50% on planning and land use services and approximately 25% on
building permit services~
In recognition that a schedule of surcharges at these levels would push the outer limit of
what is possible, we are recommending a schedule which is less aggressive: 25% on
planning and land use services fees and 12.5% on building permit fees. Applying these
hypothetical surcharge levels of 25% and 12.5% to the fees generated at current activity
levels, the additional revenue w~ich the City could generate and make available to the
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 7
HTF through the budgeting process would be approximately -$161,000 (For details, see
appendix: Affordable Housing Funding Options).
Transaction-based Voluntary Contrib,ution from Individuals and
Businesses Directly Related to Real Estate Activities
This proposal contemI?lates that, at each "point" in a, real estate transaction (a "point"
being.defined as a sale of a property, closing of a loan, completion of an appraisal or
inspection, issuance of a policy of title insurance or home owner's insurance, etc~). the
individual or 'business involved would make a voluntary contribution to the RTF. Such
amounts would be detennined by the contributors and paid into the HTF periodically or
in conjunction with some' annual event such as the renewal of business licenses.
As an example, here is a list of the hypothetical contributions which might be generated
from the close of the sale of just one single family residence:
Listing Agency
S,elling Agency
Escrow Office
Lender *
, Appraiser
,Property Inspector
Titl~ Insurance Company
Homeowner's Insurance
TOTAL'
$50
$50
$25
$25 *
$10
$10
$25
$25
$220
, * Washington MutuallBainbridge Island has already committed to this contribution and
conversations with other individuals and businesses are ,un~erway~
Given that, in recent years there have been between 300 and 400 residential sales per year
in Bainbridge Island, the total monies generated annually for the HTF by this proposal
could be in the range of $66,000 to $88,000 annually. ",
Housing Trust Fund 90MDay Committee Report to the Mayor
Page 8
Matching Funds from COBI General Fund
This proposal contemplates that the monies generated by.the volunteer contribution
outlined above be matched on a 1: 1 basis by the City of Bainbridge Island from General
Fund revenue sources~ Assuming that the estimate of voluntary monies is valid, this
proposal could also generate between $66,000 and $88,000 per year.
The .coqlbination of these s~urces, at present activity levels, could generate annual
revenue in the range of:
@ 300 sales
@ 400 sales
\"
Planning and Land Use Surchargesl
Building Permit Surcharg~sl
Voluntary Contributions.
COBI Matching Funds
$107,000 / ' $107,000
$54,000 $54,000 ~
$66.000~'-\ $66,000.
$66,000 \, $66,000'
S- (,,, rt-.i
"-:: "2: Jj(~
TOTALS
$293,000
\.
~-_.~.
$337,000
Considerations for Future Public Revenue Source
The Subcommittee fu,rther recommends that, within five years, these revenue sources be
supplemented with revenue generated from special affordable housing levy financing
passed by the electorate ,of Bainbridge Island (See appendix concerning a special property
tax levy ,per RCW 84~52.1 05).
ADMINISTRATION
The Administration Subcommittee used the model provided by ARCH: A Regional
Coalition for Housing~ ARCH has an affordable housing delivery system that has worked
- in this region and in the existing housing climate. More importantly, the components of
the administration demonstrated by ARCH closely resemble a successful model of fund
administr,ation in use on the Island by the Health, Housing and Human Services Council.
The Administration Subcommittee understood the imp~ortance of accountability of
funding uses, low-cost administration (as well as self-sufficiency) and continued diverse
community participation. Central to the model is use of existing City staff and other
existing support agencies such. as the Kitsap County ~onso]idated Housing Authority ~. ,
Below is an organization chart depicting the line of control and advisory relationships of
the required functions. It is assumed that the RTF will be starting with a limited operating
budget and therefore the City should provide certain functions from departments already
in existence such as accounting 8:nd planning.
I See the appendices for the proposed individual sources for the planning and building fees: "Affordable
Housing Funding Options~n
Housing Trust Fund 90.Day Committee Report to the Mayor
Page 9
The Administration Subcommittee recommends that technical assistance consulting is
utilized on an as-needed basis and the City-employed planning staff person (a housing
planner) coordinate between such a technical consultant and the rest of the- RTF
or gani zati 0 n .
Bainbridge Island City Council
...(.~\""'"iI.""""''''''''''''
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Executive Committee
r Mayor, City Administrator, Member of the
City Council, Citizen-At-Large
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Administrative
Services
Program Coordination
Community
Advisory Board
Accounting
Legal
Etc.
Provided by COBI
City Housing Planner
and an
Independent
, Development C'onsultant
Performed by
HHHSC
'.Administration Detail: Housing Trust Fund Lending Criteria
'The purpose of the Bainbridge Island Housing Trust Fund (HTF) is to create and preserve
affordable housing for low and moderate income households~ In special circumstances
middle income households may also be assisted.2
The HTF application includes a number of criteria that are used by the Community
Advisory Board to complete its evaluation and recommendations. The purpose of the
lending criteria is to allow applications to be evaluated for feasibility and timeliness,
prioritized for funding, and establish conditions for funding. This report summarizes the
criteria used to evaluate applications for HTF.
Schedule and Review Process
. The RTF conducts one funding round each year. The typical schedule for the funding
round has applications due in March, Executive C~mmittee recommendations completed,
in May and Council action in June.
An initial screening of applications is conducted, by staff to determine the completeness of
each application, with applicants informed of additional.information needed. Applications
2For the purpose of the Bainbridge Island'Trust Fund the Seattle MSA median income, as defined by HUD,
will be used~""" - .
Housing Trust Fund 90~Day Committee Report to the Mayor
Page 10
that are very incomplete may not be given.further consideration that round. HTF staff
prepares a summary of the submitted applications which is forwarded to Community
Advisory Board~
The final staff reports are forwarded to the Community Advisory Board (CAB) for their
review and funding recommendation~ The CAB will appoint a subcommittee which wi,ll
be comprised of professional expertise in housing, lending or related areas~ The CAB will
always contain members who have professional expertise in mortgage underwriting, and
development of housing (e~g., for-profit residential developer, not-for~profit affordable
housin.g developer).
As vacancies occur, the CAB will maintain expertise in these areas. In this way, financial
expertise will be available in reviewing applications prior to referral to the Executive
Committee. The CAB will always include at least three members with private lending or
reside~tial development profes.sional background. CAB reviews ea9h ap'plication and
identifies any issues which require clarification of further review/research6 During the
second meeting, the CAB will prioritize the applications and issue a funding
recommendation, and recommend conditions to be met before funds can be expended.
These recommendations will be. voted for approval by CAB~
The Executive Committee receives the funding recommendation from Health, Housing
and Human Services Committee. The Executive Committee is comprised of the Mayor,
City Administrator, member of City Council, a Citizen at ~arge. The Committee reviews
the CAB recommendation and approves it -- with or without modification~
The Executive Committee recommendations are then forwarded to BI City Council.
Council approval is required for a funding allocation to be made.
If the City Council approves funding for a project, the Program Coordin~tor provides
, administrative assistance with preparing contracts and monitoring projects.
Completeness of Applications
An initial screening will be peIformed to determine the completeness of each application~
The HTF application form requests information t<? help measure how projects meet
program criteria. Information requested in ap.plications is described in more detail below ~
Projects that.are deemed incomplete may be~Tejected YJithout further consideration.
Basic Eligibility
The Housing Trust Fund has establi.shed some basic guidelines that all proposals must
meet These include:
Eligible Applicant
. Non-profit organizations
· Private .for-profit organizatio.ns
. P~blic housing authorities
Housing Trust Pund 90-Day Committee Report to the Mayor
Page t 1
. L
· Public development authorities
Partnerships involving combinations of the above _groups are encouraged, especially in
the .case where a private for-profit organization applies for funding.
Income Served
Use of the RTF must be, directed towards eligible_ beneficiaries -- households with
incomes up to 95%:of the Area Median Income (AMI) adjusted by household size as
defined by HUD for the Seattle MSA. In some cases, the'beneficiaries may have incomes
at or below 120% of AMI.
Use of Funds
There is a wide range of elig~ble uses of RTF. These, include acquisition, construction,
rehabilitation, and-.others. IfCDBG funds are used project, must comply with any CDBG
restrictions (e.g., not available to for profit developers, constraints on ,using for
construction costs).
Feasibility ,
Once a complete application is received, it will be reviewed in further detaiL The overall
intent is to determine whether the project will be capable of accomplishing established
goals in a reasonable time frame, -or whether assumptions/omissions made by the
proponent cast doubt on project feasibility.
Developm,ent budget
Applicants provide detailed breakdowns of development costs, including: acquisition,
construction/rehabilitation, professional services, finance', site development and others.
Issues which may be evaluated from this information include:
· Completeness-any line items missing from the budget breakdown, including
inappropriate contingency for the type of project.
· Do any of the line items ,appear to stand out (too high or too low)
· Are the overall per unit costs reasonable
· Are the HTF per unit costs reasonable
· How 'do the Costs compare with other projects -with~similar type work
· Are the RTF cos'ts -eligible for CDBG fun~~' use
Operations Budget
The purpose of this budget is to show all the costs associated with the daily operation and
management of the project after it is complete.d, such as staff, supplies, insurance,
professional services, utilities, repairs, reserves and the like. ~ey issues include: '
· Completeness - are all of the costs included, or are important items missing
· Is the vacancy fate built into the rent income project appropriate
· Are there "rainy day" funds (operating reserves and replacement reserves)
Housing Trust Fund 90- Day Committee Report to the Mayor
Page 12
· Do the costs provided appear reasonable
· Continuity - will the budget support their needs years down the road
· Is the debt service less than the net operating income
· Is there a positive cash flow (e.g., For projects with private debt is there an
appropriate debt coverage ratio).
Support Services Budget
For some projects, support services are an integral part of the housing program. In these
cases information is requested on the support services budget. The purpose of this budget
is to identify all the casework, assessment, counseling, training/seminar, and other
support services, which are provided by the sponsor or by another agency (for or in
cooperation with the sponsor). These may be provided on or off-site. Key issues to
evaluate include:
.
· Does t~e support services budget account for all services provided.,
· Are the funding sources for the support service~ realistic~
· Is funding for support services potentially available on an ongoing basis? If not, what
plans are there in the event a specific funding sources is lost.
Funding Sources/Co,mmitment
In this section, the applicant identifies the amounts and sources of all the funds required
for development of the project The applicant also provides the current status of the funds
-- whether they have been approved (or not) for the project Key issues include: '
· Does the total of all sources equal the total o.f the development budget
· Does the ratio of HTF dollars to other dollars seem high/have other potential sources
of. funding been reasonably assumed.
· Are private funding sources included at a reasonable level
· Is it realistic to expect other public funding sources to commit at the level indicated
· Does, the schedule for the commitment of other funds seem timely
.. Is there too much dependence upon a single funding source
Organization/Team
A successful project starts with a sponsor who is experienced and well organized. When
appropriate, the sponsor may pull in other player for the team to help with the project, as
well as to operate it after construction. By knowing who is involved in project
development, and who will be involved in operating the project after construction, it will
be easier to evaluate the potential success of the proposal. Key issues include:
· Are the key team members identified -- do they have the right experience'
· Does the sponsor have experience developing projects like the proposal. If not, have
they brought in members to the team that have appropriate experience
· Is the construction manager identified -- does she/he have experience
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 13
· For proyiding h0using-related social services, 'are the agencies/individuals identified
, and do they have the appropriate sldlls
· Will the proposal have the potential to increase the capacity of ' a local organization,
thus increasing the area's overall organization capacity to provide affordable housing
Management Plan
This section addresses tenant ~election, tenant interaction with managemen~ decision-
making (such as tenant councils, apartment manager, etc.), terms of occupancy, routine
facility maintenance, and (if emergency or transitional housing) what are the support
service pr,?vision for the proposaL key issues to look for -include:
· Are the dally and overall management provision clearly set forth and sound
· Do the provision (including if appropriate the availability of services) seem
appropriate, for the type <?f facility ,
· If support services are included, how are they integrated into the. project
· Do the tenants have reasonable' provisions for management interaction
Site Control/Site Issues
Does the applicant have the IIright" to use the property as proposed? This evaluation also
includes the appropriateness of the site for the proposed use~ Key issues include:
· Is there formal site control (e.g~, ownership, binding option or purchase agreement)
· Does the agreement allow sufficient ti~e for the project to secure all financing;
permits, etc.
· Is the proposed use allowed under local land use regulations:
· Is the site appropriate for the proposed use (e.g., is there access to necessary services
for residents) ,
.
Dis p'lacemenVRelocation
This section only applies to lIexistingJl residential units, and not new construction. It also
does not apply to vacant units. If existing tenants are displaced or have to be'relocated,
they may be eligible for financial compensation. The key issues include:
· Will temporary or permanent displacement/relocation occur
· Is 'there 'a reasonable plan to address a~y potential displacement/relocation
· Have all reasonable efforts been made to avoid/reduce displacement/relocation
Timeliness
Addresses whether the components of the application can" individually and collectively,
be delivered in an appropriate time frame. Also if the application is premature to be
. req.uesting funding. (Note: Other communities have created local funding programs with
severai public funders to provide predevelopment loans. One purpose of such a program
is to provide some funding so that projects can address some basic issues before
reques~ing funds from public funders) Key issues include:
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 14
· What are the time frames for commitment of funding sources
· Does site- control cover all the time frames for funding commitment,
· How soon will the project be ready to go
· If a project is relatively early in the process, does making a commitment now help the
project in any way (e~g., help to secure other funding)
· Are there any warning flags which suggest possible delay. If so, have they been
accounted for, or could theY,adversely affect the proposal.
Priority For Funding ,
Once applications are determined to be feasible, they are then evaluated against several
other overall objectives of the HTF. This procedure is especially important when the total
'HTF funds requested by an applicant exceeds th~ total RTF available. This evaluation can
help make the eJecision about whether proposals should be funded at ~the current time.
Level of Affordability
The applicant must identify th~ income targets (expressed as a percentage of Seattle MSA
median income) of the intended tenants. Key issues to evaluate include:
· Are the intended tenants low or moderate income (no more than 95% of area median
income)
· If middle income (up to 120% AMI), what special circumstances justify the proposal
· Are the proposed rents (including utilities) affordable to the proposed tenants
· If applicable, comparison of proposed rents to existing rents in the project
· Comparison of proposed rents to average rents in the project's local area
Duration of Affordability
The ~pplicant must propose a specific time period for which rents will remain affordable
to targeted tenants~ The key issue here is:
· Will the applicant provide a duration of at least 30 years? Shorter time periods maybe
allowed, but the preference is for.a minimum of 30 years~
Consistency with Bainbridge 1~land Housing Needs/Goals
The City of Bainb~idge Island has housing gpals, policies and objectives set. fo~h in its
Comprehensive Plan.. Proposals are evaluated for consistency with these policies.. In
addition the HTF has established a long term objective that funds be distributed
proportionally between several types of housing. If certain types of housing have
disproportionately been funded in previous rounds, the application packet will state a
preference for under funded types of housing.. Key issues include:
· Is the project consistent with local housing goals and policies
· Has the community already taken some steps to help initiate the proposal, or
expressed support for the proposal
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 15
Underwriting
Underwriting .criteria provide the documentation and other ,information necessary to
ensure that funds are not made available until certain conditions are met, therefore
minimizing the likelihood a project will not be completed as finally proposed~ It can also
provide protections to maximize ,the city's ability to protect its long, term interests in the
property ~ This can include items such as maintaining Affordability, property maintenance,
and repayment or recapture ~f city funds~ Finally, underwriting criteria will determine in
what form funds will be made available.(e.g., grant, loan, or deferred loan). Some
underwriting criteria w'ill determine in what form funds will be made available (e.g",
grant, loan, or deferred loan). Some underwriting criteria will be standard to all projects'
while others may be developed to address ~pecific unique issues for a certain project
These underwriting criteria are incorporated into the funding contract, promissory notes
and/or regulatory agreements. Key criteria include.
Cost/Funding Confirmations
Most projects begIn with a series of cost estima~es, that suffice for conceptualizing and
preliminary review " Yet before funds are actually committed to a project, costs are
verified. AppraisaVpurchase - sales agreements, appraisals, inspection reports/bids, and
the like, give certainty to costs - and confidence that there wontt be any financial surprises
down the road. To the extent confirming information (e.g., appraisal) are not provided
with the application, there will be conditions included in the contract that this information
needs to be provided prior to receiving local funds. Key issues include:
· Are the cost confirmations current
· Who performed the confirmations
· Do the c9nfirmations verify the proposed project
Land Development Issues
Applicants are required to provide information confirming that the proposed use is
allowed (letter from permits, etc.), and any potential significant site constraints identified
and, if applicable, addressed. Types of reports that can be required include:
· Inspection report
· Hazards/W etlands survey
· ,Soil test
· Zoning verification
Form of Assistance (loan/grant)
Funds can be given to the applicant in the form of a grant, or repaid over time in the form
of a straight or 'deferred'-loan. In recommending the form of assistance issues include:
· ' Does the .project have enough cash flow initially to make loan repayments
immediately,
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 16
· Does the project have the potential to increase cash flow in the future, thus allowing
repayment at some future point in time, or when certain cash flow standards are
achieved (e~g., net cash flow is greater than 'a predetermine % of gross income)
· Would loan repayment affect Affordability in the project
· Is a project serv.ing certain types of a households that funds should be made available'
as a grant (e.g~, transitional housing, very low income families, handicapped
~ndividuals)
Formal Agreements
Legal agreements (contracts, promissory notes, regulatory agreements) are used to
formalize the financial relationship between the lender: (local jurisdiction) and the
recipient, governing the award of RTF dollars.. Key elements- of these agreements include:
Contract:
· List conditions (as described above) tnat must be met prior to releasing funds (e~g.
other funding commitments, permits, final,budgets)
· All funding conditions must be m~t before funds are released
· Any significant revision to the scope of work or budget must be submitted for review
and approval of staff'
· Establishes time' frames in which key steps must be completed, or funding reservation
can be withdrawn unless an extension is -approved by staff
· Establishes timing/procedures for drawing funds. (In what proportion local funds will
be drawn relative to other finding sources. For example, for private developers,
developer funds may be expected to be spent proportiot:1ally to local funds)
· City can recapture funds if not used for intended .purposes
Promissory Note:
· Establishes any terms for repayment of funds
· Secured by recorded deed of trust
· City can cure defaults on any .seniort loans
· Subordinates city loan to 'seniort loans (typically private loans)
· Funds made available as a non-recourse loan to applicant
Regulatory AgreeJTlent:
· Recorded agreement that establishes the levels and terms of Affordability
· Specifies projects monitoring/reporting obligations
· If ownership project, establishes process for resale, and how to calculate future
affordable price
Housing Trust Fund 90.0ay Committee Report to the Mayor
Page 17 .
PROGRAM/FEASIBiliTY
Program/Feasibility Subcommittee of the Housing Trust Fund
The Program/Fe'asibility Subcommittee was charged with making recommendations
about the target population, eligibility and what kinds of projects/programs the funds
should support The City of Bainbridge Island Comprehensive Plan Housing Element
, (1994) established affordable housing needs on the Island~ The data and conclusions of ,
the Housing Element form the foundation for our recommendations.
The Need
· A ,need assessment was done by Kitsap County in 1993~ Based on that assessment, the
County recommended 2,900 affordable housing units (rental and purchase) on
Bainbridge Island. Please refer to pages 1, 2, 3 of the Housing Element
· Ross Thomas provided OUf Program/Feasibility Subcommittee with demographics for
the Island from 1997. This data showed that 45.7% of Island citizens make less than
$49,000 a year. This number represents 3,104 households. Given the current incomes
of existing households of the Island, 290/0 of the total households could qualify to buy
only 6.5% of the existi~g housing stock on the Island~ In other words, 93.5% of the
housing stock is out of reach to most moderate and middle income households~
· If rental units were available, the market price for 2-bedroom rental units in the City
Center of Winslow would range from $625-$850 per 'month. The market prices for
three bedroom rental units in Winslow would range from $950~$1200.
Based on 30% of income spent on.housing, the 10.33% of households who make up
to $15,000 income per year could afford $375 per month rent 8~5% of our population
could afford $375 to $625 per month oil rent. 10.6% could afford $624 to $850 per
month on rent. ,It is in this range that households could find market rate units. The
housing needs asses~ment denotes that there is an almost zero vacancy rate in rent
assisted units (around ,2%~overall according to Trends).
· The ProgramIFeasibility Subcommittee saw the need and it is great The
Ct?!TIpre~ensive Plan recommends an adqitional 550 multi-family rental unit,s by the
year 2012. The maJority of the 550 should be affordable to moderate and lower
income households. _ Currently, there are 73 guaranteed affordable rental units (less
senior housing). This includes ,projects by HRB and KCCHA. There are a number of
market ~ate rental units on the Island that are affordable to moderate, and lower
income households. We have anecdotal evidence from Helpline House, HRB and
KCCHA that corroborate the continuing need for affordable housing~ The
Subcommittee was unable to determine the number of accessory dwelling units
available .
Housing Trust Fund 90- Day Committee Report to the Mayor
Page 18
· Types of projects and programs the RTF is proposed to support based on identified
need in the community: (a) pr~servation of existing affordable housing stock, (b)
rental units - singles and large households, (c) first time home buyers-funding to
support education and identify loan sources, Cd) education to promote development of
affordable housing by attracting,developers, encourage lenders to participate in
affordable housing financing, to inform those in need and to gain community support
· Other criteria: (a) allows for affordability in the future, (b) design consistent with
Island values, (c) create conservation of energy efficient homes to improve
affordability; Cd) environmentally friendly home design and function.
Subcommittee Observations
There are two gaps between recommended housing-cost related guidelines for Kitsap
County and Bainbridge Island. One gap is the difference in median household income on
the Island as compared to Kitsap County~ Bainbridge Island's median income ($54,337) is
, 13% higher than the median income of Kitsap County ($48, 100)~ The County guidelines
are used to generate funds from affordable housing grants~ For the purpose of the Housing
Trust Fund, and perhaps other affordable housing programs initiated by the City,
Bainbridge Island incomes and housing costs correlate more closely to SeattlelKing
County rather than Kitsap County. Using S~attlelK.ing County figures makes home
ownership opportunities more feasible to develop given high land costs.
The second gap is the difference median home values between jurisdictions. In 1997, the
median home value in Kitsap County was $136~OOO, whereas the median home value in
the same year on B.ainbridge Island was $229,077. Moreover, developers tell us that
development costs are 15% higher on the Island compared to the County: These factors,
in acldition to the high cost of land on Bainbridge Island make it difficult for developers
an'd non-profits to build affordable housing.
In today's economy, a full-time employee must make more than double minimum wage
to affordable an average two-bedroom rental in our state's urban areas~ The
Programs/Feasibility Subcommittee interviewed Island stores, Day Road businesses,
Safeway, Thriftway, Bainbridge Island Police, the City and the School District employees
and discovered that half of these people live olf-Island~ Of course, we cannot determine if
the location of their housing is by choice or affordabillty. People with median incomes for
'Bainbridge Island cannot afford to buy here.and people wit~ moderately low incomes
cannot afford to rent here. Amazingly, there are some households who manage to find
housing despite rising housing costs~ The Subcommittee's study found that 25% of Island
household make $25,000 or less per year. More study IS needed to learn more about the
condition of the housing, its age, tenancy and cost burden to such households (See
appendix: "Housing Opt~ons for Seattle Residents with Low and Moderate Income").
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 19
Recommendations
In general, linkages to other Island affordable hou.sing-related programs should be
encouraged and supported~ Affordable housing is linked to the local economic,
environmental and community health, and should be linked to a broader range of policy
decisions to support affordable housing goals.
The PrograrnlFeasibility Subcommittee and the ,Committee as a whole debated the issue
of target populations and the types of programs the Housing Trust Fund could support at
each of its meetings~ One exercise, presented in detail in the appendices, helped the
Committee identify and prioritize who would be assisted through the RTF and how (see
appendices: Housing Trust Fund Criteria Worksheet and Ranked Housing Trust Fund
Cri teri a) ~
Findings
· Target population of the RTF is the median income level and below ~
. The majority of the HTF would pay to assist development of new, affordable units.
· The RTF ~ould pay to provide opportunities to potential home buyers to purchase
permanent affordable homes~
· Eligibility for RTF dollars: (a) non-profit organizations, (b) developers, (c)
recommend that HTF fund be used to leverage other funding sources to assist
developers in creating affordable units.
The ProgramIF~asibility Subcommitt,ee suggests that the Housing Trust Fund initially
assist affordable housing ~y: .
· Proyiding down payment assistance to for-purchase units created through the
Affordable Housing Ordinance (whether rental or for-purchase and at the income-
level required per unit). For example, the RTF could provide down payment
assistance uP.to $10,000 per unit for low, moderate or middle income home owners~
· Re.habilitation loans for low-income households (up to $5,000)
. A final key issue for the Housing Trust Fund to evaluate is the amount of ftinding.'needed
to effectively serve the development and preservation of affordable housing. The
Committee asked the question: How ~uch money each year is necessary to support and
sustain a RTF? -Given the goals set forth in the Comprehensive Plan, production thus far,
due to the Affordable Housing Ordinance (Bllv1C 18.90), and other information available
it is possible to estimate the potential need. The revenue sources may not provide all that
is need to create all the affordable housing needed on the Island, the amount provided by
the HTF could ,help leverage this amount. The amount needed will depend on the range of
loans and grants and the specific income levels of households to be served in any given
year~ However, as an estimat~, the funding, needed to serve 50 ~ouseholds per year with a
down payment a~d rehabilitation loan/grant program, as mentioned above, could be in the
range of $285,000 to $375,000. These estimates are a reasonable goal given the revenue,
sources identified by, the Committee (For detail, see appendix: How much funding is
needed' per_ year to be effective?).
Housing Trust Fund 90~Day Committee Report to the Mayor
Page 20
APPENDICES
Housing Trust Fund 90.Day Committee Report to the Mayor
Page 21
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. Other sources of revenue: a special property tax levy per RCW 84.52. 105.
"In 1993, the Washington Legislature passed a bill that enables a county, city or town to
impose additional regular property tax levies of up to 50 cents per thousand dollars of
assessed value of property in each year for up to ten consecutive years to finance affordable
housing for very low _ income households [for BI: very low = $22,800 for a 4-person
household]. It requires a majority of the voters of the taxing district voting on a ballot
proposition that authorizes the levy" (Current Topicsfrom the Housing Trust Fund Project,
,-August 1996, p~ 17)9
84.52.105 Affordable housing levies authorized-Declaration of
emergency _and plan required. (1) A .county, city, or town may impose additional
regular property tax levies of up to fifty cents per thousand d~llars of assessed value of
property in each year for up to ten consecutive years to finance affordable housing for
very low-income households when specifically authorized to do so by a majority of the
voters of the taxing district voting on a ballot proposition authorizing the levies~ If both a
county, and a city or town within the county, impose levies authorized under this section,
the levies of the last jurisdiction to receive voter approval for the levies shal.l be reduced
or eliminated so that the combined rates of these levies may not exceed fifty cents per
thousand dollars of assessed valuation in any area within the county. A ballot proposition -
authorizing a levy under this section must conform with RCW 84.52~054"
(2) The additional property tax levies may not be imposed until: .
(a) The governing body of the county, city, or town declares the existence of an
emergency with respect to the availability of the housing that is affordable to very low-
income households in the taxing district; and
(b) The governing body of the county, city, or town adopts an affordable housing
finandng plan to serve as the plan for expenditure of funds raised by a levy. authorized
under this section, and the governing body determines that the affordable housing
financing. plan is consistent with either the locally adopted or state-adopted
comprehensive housing affordability strategy, required under the Cranston-Gonzalez'
national affordable housing act (42 U.S.C. Sec. 12701, et seq.), as amended. .
(3) For purposes of this section, the term "yery Jow-income household" means a
single person, family, or unrelated persons living together whose income is at or below
fifty percent of the median income, as detentiined by the United States department of
housing and urban development. with adjustments for household size, for the county
where the taxing district is located.
(4) The limitations in RCW 84.52.043 shall not apply to the tax levy authorized in
this ~
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 23
Housing Trust Fund Criteria Worksheet
Criteria
Income Cd teria:
Extreme Low Income;:::: 30% and below AMI
Very Low Income:::: 300/0 to 50% AMI
Low Income = 50% to 80% AMI
Moderate lucorne:::: 80% to 95% AMI
Middle Income = 95% to 120% AMI
Multiplier* Extreme Very
Low Low
IncoDle IncoD1e
30% and 30% to
below 50%
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Meets a Comprehensive Plan goal
Ease in monitorin,2
Creates permanently affordable housing for 30
years
.Proxi mi ty to public transportation, or,
development includes transportation component
Provides a continu urn of housing
Pro vides education concerning affordable
housing
Provides affordable housing in ~ area with few
.existing affordable opportunities
Provides affordable housing to several income
levels wi thin a single development
Compatibili ty with neighborhood
Environmentally friendly
8 8 24
5 5 15
10 10 10
8 10 8
9 9 27
10 10 10
10 10 .10
10 10 10
10 10 10.
6 6 6
Low Moderate Middle
Income Income Income
50% to 80% to. 95% to
80% 950/0 120%
- ..
.. -- .. .
- -. ..-3:>:_:.._.._:~-.: ~i5. ~'4:
24 40 32
15 25 20
30 50 40 +-
24 40 32
. .
27 45 36
30 50 40
30 50 40 -
30 50 40
30 50 40
18 18 30
.4'
40
28
. - . - :~J;t~.ijWl. , ~.'.
'Rank:-otinc9meJi~y~f(1~SJ:::' ..
Provides rental opportunities
-. '.':.'
. .; : -.
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SO 40
10
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Demonstrates high degree of leverage of other
fundin sources
Grant fundin
, Lon -tenn loan fundin
Brid' e (short...term) loan fundin
10
10
8
10
10
. 8
10
30
.24
30
4. 2 1
40 20 10
3' ..---.~ 4
30 50 40
30 50 40
24 40 32
30 .50 40
.- : : ;)\\.)/j/)(n:D:()ll$btRtt~)1:~{/j:}~~:~:jrt{mu~:?:~~~:r::t:~ ):)::1 :';', ;} .:.: ;.: :
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Preserves existing affordable housing I 0 1 0 30 30 50 40
Makes existin~ housin~ more affordable 10 1 0 30 30 50 40
Reco gnizes exi sting housi ng need 10 10 30 30 50 40
Promotes mixed-income housing 10 10 30 30 50 40
. Housing .Trust Fund 90-Day Committee Report to the Mayor
Page 24
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Housing Options for Seattle Residents with Low and Moderate ,Income
The next page illustrates what is ~ffordable to the various income levels. There is a gap
between what working people can~'eam on, the Island and the cost housing available. '
While generated for Seattle for 1997, the -next page applies to income levels appropriate
for Bainbridge Island in 1998.
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 29
How much funding is needed per year to be effective'?
, The following are exalJ'lples of po.ssi~le funding scenarios that could be considered upon
implementation of the Housing Trust Fund.
For 50 units per year:
A combination of $10,000 and $5,000 loans o~ grants. The variation of the loan/grant
from 50% to 1000/0 is meant to reflect the possible variation in need per households
served. .
Down payment Program
25 loans/grants reserved for up to $19,000
(maximum amount)
-OR- 13 loans/grants @ 100% and
. 12 loans/grants @ 50%
Subtotals
Scenario 1 Scenario 2
$250,000
$130,000
$60,000
$250,000 $190,000
Rehabilitation Program
25 loans/grants reserved for up to $5,000
(maximum amouqt)
-OR- 13 l~ans/grants @ 100% and
12 loans/grants @ 50%
Subtotals
$125,000
Grand Total
$375,000
$65,000
$30,000
$95,000
$285,000
.$125,000
The funding needed to serve 50 households per year with a down payment and
rehabilitation loan/grant program could be in the range. of $285,000 to $375,000.
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 28
Provides affordable hous~~g in an area with few'existing affordable opportunities for Very Low Income'
Provides affordable housing in an area with few existing affordable opportunities for Extremely Low
Income ' _
Provides affordable housing to several income levels within a single development for Very Low Income
Provides affordable housing to several income levels within a single development for Extremely Low
Income
Compatibility with neighborhood for Very Low' Income
Compatibility with neighborhood for Extremely Low Income
Provides home ownership opportunities for Very Low Income
Provides home ownership opportunities for Extremely Low Income
Demonstrates high degree of leverage of other funding sources for Extremely Low Income
Grant funding for Extremely Low Income
Bridge funding for Extremely Low Income
Preserves existing affordable housing for Extremely Low Income
Makes existing housing more affordable for Extremely Low Income
Recognizes existing housing need for Extremely Low Income
Promotes mixed~income housing for Extremely Low Income
Provides rental opportunities for Middle Income
Provides education concerning affordable housing for Extremely Low Income
Score of 9
Provides a continuum of housing for Extremely Low Income
Score of 8
Meet a CP Goal for Very LC?w Income
Proximity to transportation for Very Low Income
. Long-term loa~' funding for Extremely Low Income
Score of7
Down payment assistance to income qualified Very Low Income
Down payment assistance to income qualified Extremely Low Income
Score of 6
EnyironmentaUy friendly for Very Low Income
Environmentally friendly for Extremely Low Income
Score of 5
Ease in monitoring Extremely ~ow'Income
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 27
Provides education concerning affordable housing for Low Income
Provides affordable housing in an area with few ,exi,stin~ affordable opportunities for Low Income
Provides ~ffordable housing to several income levels within a single deveJopment for Low lncom'e
Compatibility with neighborhood for Low Income
Provides home ownership opportunities for Low Income
Demonstrates high degree of leverage of other funding s.o\lrces for Low Income
Grant funding for Low Income
Bridge funding for Low Income
Preserves existing affordable housing for Low Income
Preserves existing affordable-housing for Very Low Income
Makes 'existing housing ~ore affordable for Low Income
Makes existing housing' more affordable for Very Low Income
Recognizes existing housing need for Low Income
Recognizes existing housing need for Very Low Income
Promotes mixed-income housing for Low Income
Promotes mixed-income housing for Very Low Income
Environmentally friendly for Middle Income
Score of 28
Down payment assistance to income qualified Middle Income
Score of 27 ,
Provides a continuum of housing for Low Income
Provides a continuum of housing for Very Low Income
Score of 25
Ease in monitoring for Moderate Income
Sco-re of 24
Meet a CP Goal for Low Income
Proximity to transportation for Low Income,
Long-term loan funding for Low Income
Long-term loan funding for Very Low Income
Meet a CP Goal for Extremely Low Income
Score of 21
Down payment assistance to income qualified Low Income
Score of 20
Ease in monitoring for Middle Income
Provide rental opportunities for Moderate Income
Score of 18
Environmentally friendly for Moderate Income
Environmentally friendly. for Moderate Income
Score of 15
Ease in monitoring Low Income
Ease in monitoring Very Low Income
Score of 10
Creates permanently affordable housing for 30 years for Very Low Income
Creates permanently affordable housing for 30 years for Extremely Low Income
Proximity to transportation for Extremely Low Income
Provides education concerning affordable housing for Very Low Income
Housing Trust Fund 90.0ay Committee Report to the Mayor
Page 26
Ranked Housing Trust Fund Criteria
Hi1!hest Priority (Score of 50)
Creates permanently affordable housing for 30 years for Moderate Income
Provides educatiQn c'onceming affordable housing for Moderate Income
Provides affordable housing in an area with few existing affordable opportunities for'Moderate Income
Provides affordable housing to several income levels within a single development for Moderate Income
Compatibility with neighborhood for Moderate Income'
Provides home ownership opportunities for Moderate Income
Provides rental opportuniti~s for Extreme Low Income
Demonstrate high degree of leverage of other funding sources for Moderate Income
Grant funding for Moderate Income
Bridge funding for Moderate Income
PreserveS existing affordable housing for Moderate Income
Makes existing housing more affordable for Moderate Income
Recognizes existing housing need for Moderate Income
Promotes mixed-income housing for Moderate I~come
Score of 45
Provide continuum of housing for Moderate Income
Score of 40
Meet a CP .Goal for Moderate Income
Creates permanently affordable"housi.ng for 30 years for Middle Income
Proximity to transportation for Moderate Income
Provides education concerning affordable housing Middle Income
Provides affordable housing in an area with few existing affordable opportunities Middle Income
Provides affordable housing to several income levels within a single development Middle Income
Compatibility with neighborhood Middle Income
Provides home ownership opportunities for Middle Income
. Provides rental opportunities for Low Income
Preserves existing affordable housing for Middle Income
Mak~s existing housing more affordable for Middle Income
Recognizes existing housing need for Middle Income
, Promotes mixed-income housing for Middle Income
Pro.vides rental opportunities for Very Low Income
Demonstrates high degree of leverage of other funding sources for Middle Income
Grant funding for Middle Income
Bridge funding for Middle Income
Long-term loan funding for Moderate Income
Score of 36
Provides a continuum of housing for Middle Income ;'
Score of 35 -
Do~n payment assistance to income qualified Moderate Income
Score of 32
Meet a CP Goal for Middle Income
Proximity to transportation for Middie Income
Long-term loan funding for Middle Income
Score of 30
Creates permanently affordable housing for 30 years for Low Income
Housing Trust Fund 90-Day Committee Report to the Mayor
Page 25