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HomeMy WebLinkAboutPK05-089 - Original - King County - Regional Affordable Housing Program (RAHP) - 01/01/2004 ecords M efilefNif KENT Document WASHINGTON CONTRACT COVER SHEET This is to be completed b the Contract Manager prior to submission to City Clerks Office. All P Y portions are to be completed, if you have questions, please contact Mary Simmons, City Clerks Office. Vendor Name: / `-�'�'�' Vendor Number: �� JD Edwards Number Contract Number: �KOS- I This is assigned by Mary Simmons Description: =i'� ieG � Detail: Project Name: Contract Effective Date: Termination Date: Contract Renewal Notice(Days): Number of days required notice for termination or renewal or amendment Contract Manager: Department: Abstract: S PubOc\Recordsmonagement\Forms\ContractCmer\ADCL7832 07/02 M1=S REGIONAL AFFORDABLE HOUSING PROGRAM INTERLOCAL COOPERATION AGREEMENT An Agreement for the use of SHB 2060 Local Low-Income Housing Funds in King County THIS AGREEMENT is entered into between King County, a municipal corporation and political subdivision of the State of Washington,hereinafter referred to as the"County", and the City of Kent hereinafter referred to as the"City", said parties to the Agreement each being a unit of general local government of the State of Washington. RECITALS WHEREAS,the King County Countywide Planning Policies, hereinafter referred to as the"CPPs",developed pursuant to the Washington State Growth Management Act,have established standards for cities to plan for their share of regional growth and affordable housing; and WHEREAS,to implement the CPPs,the King County Growth Management Planning Council appointed a public-private Housing Finance Task Force in 1994, hereinafter referred to as the"HFTF",to recommend potential fund sources for affordable housing for existing low- income residents and for meeting the affordable housing targets for future growth; and r WHEREAS the HFTF recommended a document recording fee as a source of regional dollars for low-income housing development and support, and recommended that representatives of the County, Cities and the housing community work together to make decisions about the use and administration of such a fund; and WHEREAS in March 2002, Substitute House Bill 2060,hereinafter referred to as SHB 2060,was passed by the Washington State Legislature and was signed into law by the Governor as Chapter 294, 2002 Washington Laws in April 2002, and was effective on June 13,2002. SHB 2060 provides, in large part, that: A surcharge of ten dollars per instrument shall be charged by the county auditor for each real property document recorded,which will be in addition to any other charge authorized by law; After retention of up to five percent(5%) for collection administration, forty percent(40%)of the revenue will be transmitted monthly to the state treasurer, and sixty percent(601/6) of the revenue will be retained by the county and deposited into a fund that must be used by the county and its cities and towns for housing projects or units within housing projects that are affordable to very low-income households at or below fifty percent(501116) of the area median income. The local portion of the funds must be allocated pursuant to an interlocal agreement between the county and the cities within the county that is consistent with countywide and local RAHP ICA/Page 2 housing needs and policies, and pursuant to the eligible activities listed in the SHB 2060 legislation; and WHEREAS, existing Interlocal Cooperation Agreements or Joint Agreements between King County and cities in the King County Community Development Block Grant Consortium, hereinafter referred to as the"CDBG Agreements", and/or existing Interlocal Cooperation Agreements between King County and cities in the King County HOME Investment Partnerships Program Consortium,hereinafter referred to as the"HOME Agreements", are not modified by this Regional Affordable Housing Program Agreement; and WHEREAS, the City and King County agree that affordable housing is a regional issue, that cooperation between the Cities and the County is beneficial to the region, and that a regional approach to utilizing the SHB 2060 funds will allow those funds to be used in the most productive manner; and WHEREAS,it is mutually beneficial and desirable to enter into a cooperative agreement in order to administer the SHB 2060 revenue as a regional fund, as authorized by the Intergovernmental Cooperation Act,RCW 39.34, and, as required by SHB 2060; NOW,THEREFORE,IN CONSIDERATION OF THE FOREGOING CIRCUMSTANCES AND IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN,THE PARTIES AGREE AS FOLLOWS: RAHP ICA/Page 3 i r I. Definitions and Interpretation. Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise. "Joint Recommendations Committee"or"JRC"means the inter jurisdictional body developed pursuant to the CDBG Agreements and the HOME Agreements. The JRC is currently composed of five(5) Cities' representatives and four(4)King County representatives. The King County Executive appoints the four County representative seats. The King County Consortium's HOME-only cities rotate one of the City representative seats, and the Suburban Cities Association selects the four remaining City representative seats. A small city representative is a priority for one of the four remaining City seats. JRC members are appointed for a term two years,with the exception of the alternating HOME-only cities' seat,which revolves every year. "HOME Working Group"means the staff work group consisting of staff representatives from participating Cities and from the County that work together to recommend annual capital fund allocations for housing projects and related policies to the inter jurisdictional Joint Recommendations Committee. "2060 Planning Group"means the planning group consisting of staff representatives from the Cities, from the County, and from the housing community that worked together between August 2002 and October 2002 to develop guidelines for the local portion of the SHB 2060 funds, pursuant to the recommendations of the HFTF. RAHP ICA/Page 4 R II. General Agreement The purpose of this agreement is to establish the"Regional Affordable Housing Program", hereinafter"RAHP",to be administered by King County in cooperation with Cities and Towns within the County that choose to participate in the program. The local portion of SHB 2060 revenue shall be administered as a regional fund by the King County Housing and Community Development Program in a manner that is consistent with countywide and local housing needs and policies. The City and the County agree to cooperate in undertaking RAHP activities. III. General Administration,Distribution and Use of the RAHP. A. Expansion and role of the JRC. The JRC shall be the body that reviews and adopts annual RAHP fund allocations and related allocation polices, consistent with the King County Council-adopted RAHP Guidelines,the Consolidated Housing and Community Development Plans of the King County Consortium and the City of Seattle, and other local housing plans, as applicable. The membership of the JRC, as authorized by the CDBG and HOME Agreements, and as defined herein, shall be expanded to include an appointment from the City of Seattle. The Seattle JRC representative will attend meetings that concern the SHB 2060 fund and will be entitled to vote solely on SHB 2060 issues and not on other King County Consortium RAHP ICA/Page 5 F i matters coming before the JRC. The Seattle representative shall be an elected official, department director or comparable level staff. B. Incorporation by reference of certain amendments to the King County Consortium's CDBG and HOME Agreements. CDBG and HOME Agreement Cities and the County agree to convene a special working group in 2003 to recommend changes and/or expansion of the representation of cities on the JRC in the CDBG and HOME Agreements. The special working group shall make recommendations on the constitution of the JRC in time for CDBG and HOME Agreement cities to reach agreement on amendments by December 31, 2003. Amendments made to the CDBG and HOME Agreements concerning the representation of cities on the JRC,shall be incorporated by reference into this RAHP Agreement and the RAHP Guidelines. Amendments to the CDBG and HOME Agreement cities'representation on the JRC shall not alter the City of Seattle's seat on the JRC for RAHP purposes. C. Expansion of the HOME Working Group. The HOME Working Group, as defined herein, shall be expanded to include an appointment from the City of Seattle's Office of Housing, and shall be re-named the"RAHP/HOME Working Group". Seattle staff will be entitled to participate solely in making SHB 2060 program recommendations and not in other King County Consortium matters coming before the RAHP/HOME Working Group. Each city that participates in the RAHP is entitled to have a staff person on the RAHP/HOME Working Group. RAHP ICA/Page 6 r D. Role of the RAHP/HOME Workin Group. The RAHP/HOME Working Group shall make annual RAHP fund allocation and related allocation policy recommendations to the JRC. The RAHP/HOME Working Group recommendations shall be consistent with the King County Council-adopted RAHP Guidelines,the Consolidated Housing and Community Development Plans of the King County Consortium and the City of Seattle, and other local housing plans, as applicable. Pursuant to the RAHP Guidelines,the RAHP/HOME Working Group shall examine the percentages of RAHP funds distributed to the subregions of the County following the 2004 and 2005 funding rounds, and shall recommend actions to achieve geographic equity by the time the RAHP Agreement expires in 2006. City and County staff will work together to take actions to achieve geographic equity in the distribution of RAHP funds. E. Administration of RAHP Programs. The King County Housing and Community Development("HCD')Program staff shall distribute RAHP funds pursuant to the allocations adopted annually by the JRC, and shall administer the program pursuant to the RAHP Agreement and the King County Council-adopted RAH? Guidelines, attached hereto as Exhibit#1. King County HCD staff shall provide the RAHP/HOME Working Group,the JRC, and participating jurisdictions with an annual report that provides information about the capital housing projects that were awarded RAHP funds in that year; in addition to RAHP 1CA/Page 7 the status of capital housing projects that were awarded RAHP funds in a prior year(s). King County HCD staff shall invite the staff of participating cities to be involved in a focus group to further develop the RAHP Operations and Maintenance ("O&M') Fund, and to be on the review panel that will recommend O&M funding awards to the JRC. F. Administrative Costs. King County agrees to pay the costs of administering the Regional Affordable Housing Program. No portion of the sixty percent(601/o) of the SHB 2060 revenue retained by King County in a fund for the RAHP shall be utilized for RAHP administration. G. Interest on the RAHP Fund. Interest accrued on the sixty percent (60%) of the SHB 2060 revenue retained by King County in a fund for the RAHP shall remain with the RAHP fund and will be distributed to projects according to the subregional allocation target formula found in the RAHP Guidelines, attached as Exhibit 1. H. Sub-Regional Geographic Equity. The parties intend that the RAHP funds shall be awarded to projects throughout King County in a fair and equitable manner over the duration of this agreement. Equity is to be achieved through sub-regional allocation targets, as follows: A fixed percentage of RAHP local funds will be allocated to sub- RAHP ICA/Page 8 regions of the County by the end of this 4-year Agreement, as specified by a formula contained in the RAHP Guidelines, attached hereto as Exhibit #1. I. General Use of Funds. The local portion of the SHB 2060 revenue shall be utilized to meet regional housing priorities for households at or below 50%of area median income, as established in the RAW Guidelines, attached hereto as Exhibit#1. J. Compliance with Fair Housing Laws. Parties to this agreement must take actions necessary to ensure compliance with the Federal Fair Housing Act, as amended, the Americans with Disabilities Act of 1990, and other applicable state and local fair housing laws. IV. Agreement Duration This Agreement shall remain in full force and effect through December 31, 2006,when this agreement will expire. The 2060 Planning Group will re-convene in the spring of 2006 to evaluate the RAHP and to recommend whether the RAHP Guidelines and the RAHP Interlocal Agreement should be re-negotiated or renewed in their current formats. V. General Matters and Recordina A. No separate legal or administrative entity is created by this Agreement. Neither the JRC,the RAHP/HOME Working Group,nor the 2060 Planning Group are RAHP ICA/Page 9 anticipated to acquire or to hold any real or personal property pursuant to this Agreement. Any personal property utilized in the normal course of the work of such bodies shall remain the property of the person or city initially offering such personal property for the use of any such body. B. Pursuant to RCW 39.34.040,this Agreement shall be filed with the King County Auditor. CITY OF KENT KING COUNTY,WASHINGTON Q4;V ;VT AQ�� � Si ature of 'e Executive Officer $onims, C Executive JIM WHITE, MAYOR Name and Title(printed) 2> t l as Date: /()- 7—O� Date: Approved as to Form: k;�f� (? . Z4,6-e-� Signature of City Attorney Signature of osecuting Attorney Date: /C0- 3 - ®c3 Date: �- 0 RAHP ICA/Page 10 EXHIBIT 1 Regional Affordable Housing Program Guidelines Regional Affordable Housing Program Guidelines Guidelines for the Administration and Allocation of SHB 2060 Local Low-Income Housing Funds In King County A. Introduction The provisions of Substitute House Bill 2060 became effective in Washington State on June 13,2002. SHB 2060 created a document recording fee on certain documents to be utilized for low- income housing. Administration of the fund is shared between local governments and the State The local portion of SHB 2060 funds is to be administered pursuant to a cooperative agreement between the County and the Cities and Towns within the County. The work of the Housing Finance Task Force("HFTF'), appointed by the King County Growth Management Planning Council in 1994, led to the passage of SHB 2060. In recognition of the recommendations made by the HFTF, a SUB 2060 Planning Group was invited to come together to produce guidelines for the King County SHB 2060 funds. The King County SHB 2060 Planning Group' is made up of City representatives, County City representatives included staff from the cities of: Bunen,Tukwila,Kent,Federal Way,Redmond,Kirkland, Issaquah,Shoreline,Covington,Seatac,Auburn,Seattle,Bellevue and ARCH Housing organization representatives included staff from the following: Seattle-King County Housing Development Consortium,Impact Capital,South King County Multi-Service Center,Hopelink,Fremont Public Association, Seattle Habitat for Humanity,South King County Habitat for Humanity,Friends of Youth,The Salvanon Army, Community Psychiatric Clinic,Lifelong Aids Alliance,St.Andrews Housing Group,Housing Resource Group, 4 representatives and representatives from a variety of private housing organizations in King County. The King County SHB 2060 Planning Group strongly favored a regional low-income housing fund source administered by King County. The planning group worked hard to achieve a regional fund, and the Regional Affordable Housing Program Guidelines are the result of that work. B. Duration of the Guidelines The Regional Affordable Housing Program ("RAHP') Guidelines shall take effect after adoption by the King County Council, and shall remain in effect through December 31, 2006. In the spring of 2006 the King County 2060 planning group shall be reconvened to evaluate the RAHP, and to make recommendations as to whether the RAHP guidelines should be amended or should remain in the current format. C. Decision-Making Structure and Regional Allocation Method 1. Approving Body EDVP,YWCA,Mental Health Housing Foundation,Rental Housing Association,Highline-West Mental Health, Valley Cities Counseling,Seattle Emergency Housing Service,Common Ground,Vietnam Veterans Leadership Program RAHP Guidelines/Page 2 The inte&risdictional Joint Recommendations Committee(JRC), as defined in the RAHP Interlocal Cooperation Agreement,hereinafter"RAHP Agreement"shall be the body that reviews and adopts RAHP funding allocations and related allocation policies. The JRC will be expanded,pursuant to the RAHP Agreement,to include representation from the City of Seattle on RAHP matters. Allocations and related policies adopted by the JRC must be consistent with these RAHP Guidelines,the Consolidated Plans of the King County Consortium and the City of Seattle, and other local housing plans, as applicable. 2. Annual Fund Allocation Recommendations The existing HOME Working Group, as defined in the RAHP Agreement, shall be renamed the RAHP/HOME Working Group and shall be expanded to include a staff representative from the City of Seattle. City of Seattle staff will participate solely in making RAHP recommendations. The RAHP/HOME Working Group will work together to make RAH? fund allocation recommendations and related allocation policy recommendations to the JRC: • King County HCD staff will review all RAHP applications and make preliminary funding recommendations on them. RAHP Guidelines/Page 3 • Cities staff will review applications for projects in their jurisdiction and make preliminary recommendations on those applications. • Cities staff will receive information on all RAHP applications to review prior to the meeting of the RAHP/HOME Working Group at which final funding recommendations are formulated for transmittal to the JRC. • RAHP/HOME Working Group participants will meet together to make annual RAHP funding recommendations to the JRC,and at other times during the year, as necessary, to discuss RAHP issues and make recommendations to the JRC. 3. Subregional Allocation Targets The RAHP Fund will be a flexible fund that can address regional and Subregional housing needs. The fund will use subregional allocation targets as a means to achieve geographic equity in the distribution of SHB 2060 funds by December 31,2006,the date that these guidelines and the RAHP Agreements expire. a. Subregional Areas: 1) City of Seattle Subregion 2) North/East Subregion—north and east urban and rural areas,including 34%of unincorporated King County, Z Percent of unincorporated King County attributed to the North/East and South Subregions is based on the 2000 census data for households in the unincorporated portions of the King County Community Planning Areas,as listed in the 2002 Annual Growth Report. RAHP Guidelines/Page 4 3) South Subregion—south urban and rural areas,including 66%of unincorporated King County b. Formula for Subregional Allocation Targets Each subregion will have a targeted percentage of the RAH? funds,including the interest on the RAHP funds, allocated to projects within the subregion over the 4-year period of the RAHP Guidelines and the RAHP Agreement. Each subregion will receive allocations to projects within the subregion that are equal to or greater than 95%, of the subregions' allocation target by December 31, 2006. The formula for allocating RAHP funds to the subregions is as follows: • One half of the RAHP funds shall be targeted for allocation amongst the three subregions based on each subregion's relative share of total existing need for affordable housing. Existing need shall be determined by the percentage of low- income households paying more than 30%of their income for housing in the subregion, according to the 2000 U.S. Census data3. • One half of the RAHP funds shall be targeted for allocation amongst the three subregions based on the subregions'growth targets for future need, as established through the Growth Management Planning Council. Future need shall be RAHP Guidelines/Page 5 r determined by the subregions'relative share of total future need for affordable housing in the County. A subregion's relative share of future need is the percentage of the subregion's affordable housing target for low-income households relative to the cumulative affordable housing target for low-income households of all jurisdictions in the County,including unincorporated King County . When the U.S. Census data has been broken down in the form needed to determine the subregional target percentages,it will be applied to the formula specified above in order to calculate the actual targets. The actual target percentages will be presented to the JRC for their approval to insert them into the RAHP Guidelines. c. RAHP/HOME Working Group to Monitor Subregional Allocation Targets The RAHP/HOME Working Group will monitor the subregional distribution of RAHP fiords every allocation cycle. Following the 2004 and 2005 RAHP allocation cycles the working group will determine if any subregion(s)has received allocations below 95% of the subregion's allocation target. 3 King County demographers are working to break down the 2000 U.S Census Data in the form that is needed to develop the subregional allocation target percentages The percentage of a subregion's target relative to the cumulative target is derived by averaging the target percentages of the jurisdictions within that subregion. For each jurisdiction,the target percentage is calculated in the following manner:the number of households that a jurisdiction must plan for,per the 2002-2022 Countywide Planning Policy(CPP)Growth Target,is multiplied by.24 or.20(depending on the ratio of low wage jobs to tow cost housing for the jurisdiction in Appendix 3 of the CPPs),that number is then divided by the cummulative RAHP Guidelines/Page 6 If any subregions have received allocations under 95%of their target allocation after the first two funding cycles,the working group will adjust the allocation targets of such subregion(s)in the third and/or fourth funding cycles, as needed. In addition,the Working Group will propose strategies and actions,for review by the JRC,that are designed to increase the percentage of RAHP funds,spent in those subregion(s). Staff of the jurisdictions that are parties to the RAHP Agreement will work to implement actions that will aid in achieving geographic equity in RAHP allocations by December 31, 2006. D. Use of the RAHP Funds 1. RAHP Priorities • Ton Priority: Capital funds for the acquisition,rehabilitation and/or new construction of eligible housing projects or units within housing projects. New construction is not eligible if the low-income housing vacancy rate for all of King County exceeds 10%5 • Second Priority: Building operations and maintenance funds for transitional housing projects or transitional units within housing projects that were built with Housing affordable housing target for low-income households of all King County jurisdictions,including unincorporated King County. s The low-income housing vacancy rate for each county will be established by the State,pursuant to the SHB 2060 legislation RAHP Guidelines/Page 7 e Trust Fund dollars, and that require a supplement to the rental income in order to cover ongoing operating expenses. • 'Third Priority: Operating funds for emergency shelters and licensed overnight youth shelters. • Last priority: Rental assistance vouchers to be administered by a local housing authority in conformity with the Section 8 program. 2. RAHP Eligibility Eligible Housing Types • Capital Funds: permanent rental or ownership housing projects or units within housing projects,transitional housing projects or transitional units within housing projects,emergency shelters and licensed overnight youth shelters or shelter space within a housing project. • Operating and Maintenance Funds: transitional housing projects, emergency shelters and licensed overnight youth shelters. Eligible Populations Served • All projects or units funded with RAHP funds must serve households at or below 50%of area median income • Families RAHP Guidelines/Page 8 • Homeless families and individuals, including youth • Special needs populations,including seniors • Disabled households or households with a disabled member Eligible Applicants • Nonprofit organizations • Housing Authorities • Local governments • For-profit entities are only eligible for capital funds in the top priority. This is due to the language of the SHB 2060 legislation,which restricts operations and maintenance funds to projects"built with Housing Trust Funds". For-profit entities are not eligible for WA State Housing Trust Funds. Eligible use of RAHP Funds -eligible uses of funds are subject to the RAHP priorities listed above. Capital funds: • Acquisition of land for a housing project or units in a project that will serve eligible population(s). • New construction of a housing projector units in a project that will serve eligible population(s). • Acquisition of a housing projector units in a project that will serve eligible population(s). RAH?Guidelines/Page 9 r • Rehabilitation of a housing projector units in a project that will serve eligible population(s). • Capitalization of a maintenance replacement reserve in connection with a capital investment—applicants may be new housing projects that will serve eligible populations, as well as existing6 housing projects that serve eligible populations. • Rental assistance voucher program for housing projects or units within housing projects administered by a housing authority. Operations and Maintenance(O&M)Funds: • Ongoing building operations and maintenance expenses that cannot be covered by the rental income of the housing project; building O&M expenses must be directly related to running the building(s) and cannot include services(see section E.1. below for more information about the O&M fund program). • Rental assistance vouchers to be administered by a local housing authority in conformity with the Section 8 program- F. RAHP Administration The RAHP funds shall be administered as a regional fund by the King County Housing and Community Development(HCD)Program. 6 Existing projects are housing projects or units in projects that already served eligible population(s)and already existed as of the date of application for funds. RAHP Guidelines/Page 10 r 1. RAHP Capital Funds RAHP capital funds will be administered by the King County HCD's Housing Finance Program(HFP), in conjunction with other fund sources administered by HFP. The HFP will staff the RAHP/HOME Working Group and work with staff of the participating cities in King County to develop RAHP funding allocation recommendations and related policy recommendations for JRC review and adoption. The HFP will distribute RAHP funds through contracts pursuant to the allocations adopted by the JRC, and will generate an annual RAHP report that provides information about the projects that received funding in the current year, as well as the status of projects awarded RAHP funds in prior year(s). By request of the 2060 Planning Group,the HFP staff will apply the terms of the King County Housing Opportunity Fund("HOF")to RAHP contracts,with the exception of the following: • to the extent that there are differences between the HOF guidelines and RAHP guidelines,the RAHP guidelines will apply; • a financial match by the local government where a housing project is to be located is not required,but is encouraged. RAHP Guidelines/Page 11 • RAHP funds will have no maximum subsidy per unit,but will be limited to 50%of the total development cost of a project. 2. RAHP Operations and Maintenance Find The local RAHP O&M fund will be administered through the King County HCD Program's Homeless Housing Programs ('HHI'') Section. The local portion of SHB 2060 funds to be used as O&M for transitional housing projects and emergency shelters will be 16%of the anticipated average amount of local SHB 2060 dollars($2.2 million)7. In order to hold the RAHP O&M fund steady so that multi-year commitments can be awarded to eligible projects, the O&M portion of the fund will be held at$352,000 per year(16%of the total $2.2 million average) for the duration of the RAHP Guidelines. As the total local portion of SHB 2060 funds collected fluctuates from year to year, the O&M portion will remain at $352,000 and the remainder of the local portion will be available for the other priorities. The priority for RAHP O&M funds will be existing projects that the Washington State O&M fund is unlikely to support. The priorities for the State O&M fund are new housing 7 The percentage of local SHB 2060 funds set aside for O&M was determined by the 2060 Planning Group,which worked together to balance O&M needs and other priority needs in the County. Given the fact that 40%of the locally collected funds are sent to the State of Washington solely for O&M use,and the fact that King County projects can apply for the State O&M funds,the 2060 Planning Group felt that local O&M needs and other priority needs are adequately balanced at this percentage. RAHP Guidelines/Page 12 projects that are simultaneously applying for WA State Housing Trust Fund capital funds and shelters receiving Emergency Shelter Assistance Program("ESAP') funds. Therefore, the local RAHP O&M fund will prioritize existing transitional housing projects and shelters that do not receive ESAP funds. Following the adoption of the RAHP Guidelines and the RAHP Agreement by the jurisdictions in King County that elect to participate in the RAHP, the HHP will convene a focus group of city staff and stakeholders to further develop the parameters of the RAHP O&M fund and the RAHP O&M Request for Proposals. The RAHP O&M funds will be awarded in multi-year commitments and will have minimum and maximum grant amounts,however, the minimum and maximum amounts and other O&M fund details will be determined by the O&M focus group and will be reviewed by the JRC. The HHP will invite city staff and other stakeholders to participate on the panel to review applications for the RAHP O&M funds. The review panel will recommend O&M fund awards to the JRC for final adoption. RAHP Guidelines/Page 13 F