File #: 24-0883    Version: 1
Type: resolution Status: Passed
File created: 10/18/2024 In control: City Council
Agenda date: 10/29/2024 Final action: 10/29/2024
Title: Approval of a Resolution Authorizing Submission of a Connecting Housing to Infrastructure Program Grant Application for the Behavioral Health Resources B&B Apartments Project
Attachments: 1. 10-29-24 signed resolution M-2574, 2. Resolution

Title

Approval of a Resolution Authorizing Submission of a Connecting Housing to Infrastructure Program Grant Application for the Behavioral Health Resources B&B Apartments Project

 

Recommended Action

Committee Recommendation:

Not referred to a committee. 

 

City Manager Recommendation:

Move to approve a Resolution authorizing submission of a Connecting Housing to Infrastructure Program grant application for the Behavioral Health Resources B&B Apartments Project.

 

Report

Issue:

Whether to approve a Resolution authorizing submission of a Connecting Housing to Infrastructure Program grant application for the Behavioral Health Resources B&B Apartments Project

 

Staff Contact:

Jacinda Steltjes, Affordable Housing Program Manager, Office of Community Vitality/Housing and Homeless Response, 360.753.8482

 

Presenter(s):

None - Consent Calendar Item.

 

Background and Analysis:

B&B Apartments

The Project involves the redevelopment of the B&B Apartments, located at 2104 State Ave. NE. The current 8-unit apartment building will be demolished and replaced with 19 units of newly constructed affordable housing, serving individuals with incomes up to 50% of Area Median Income, who are struggling with mental health and substance use disorders. Four of the 19 apartments will be reserved for individuals who are homeless. All residents of the new project will have the opportunity to receive supportive services through BHR's extensive outpatient programs and Valley View Health Care services. A relocation plan is in place for the current tenants while new construction is occurring and none of the current tenants will be displaced by the Project. The total project cost is $7,426,484.

 

Connecting Housing to Infrastructure Program (CHIP)

The CHIP grant opportunity is offered by the Washington State Department of Commerce. The grant supports the development of affordable housing by paying for water, sewer and stormwater utility improvements and/or waived system development charges for new affordable housing units. Cities, counties or utility districts may apply in partnership with a housing developer. The maximum award amount is $1,000,000 this year. Olympia will request $267,583 for BHR’s B&B Apartments project. This request is based off a third-party cost estimate of the costs required to construct new and connect to existing infrastructure.

 

The City has successfully been awarded two CHIP grants in past years and is submitting a second CHIP grant proposal this year for the LIHI Franz Anderson Permanent Supportive Housing project. Staff has communicated to BHR and BHR understands that if Dept. of Commerce requires the City to prioritize its CHIP proposals the City will prioritize LIHI’s project due to the amount and type of funding committed to the project.

 

Climate Analysis:

The project is seeking funding from the Washington State Department of Commerce’s Housing Trust Fund. This funding source will be needed to construct the project. The funding source requires that all new construction comply with the Evergreen Sustainable Development Standards (ESDS).

 

The ESDS is a building performance standard required of all affordable housing projects or programs receiving capital funds from the Housing Trust Fund. The ESDS aligns Washington State’s affordable housing investment strategies with environmentally responsible building practices. Green building improves the economics of managing affordable housing and promotes environmental quality while enhancing quality of life for residents. The ESDS was developed in compliance with RCW 39.35D.080 and contains criteria that safeguard health and safety, increase energy and water efficiency, promote sustainable living, and preserve the environment. In the creation of the ESDS, technical experts in the field of sustainable development were chosen to meet and recommend the best existing green building standard; they chose Green Communities. Modifications were needed in order to accommodate the diversity of projects funded by the Housing Trust Fund and to focus the criteria on building practices, codes, climate and communities in Washington State. The ESDS has been reviewed by Housing Trust Fund stakeholders with widespread agreement that this standard is the best first step for affordable sustainable development in Washington State. 

 

Additionally, the project is supported by the City through a discounted purchase price. It will be subject to City code requiring electrification of the building.

 

Equity Analysis:

The project will add 19 units of affordable housing and supportive services for households with incomes between 30% and 50% of area median income. The City is currently updating its Comprehensive Plan. The process includes a Housing Element which outlines how the City will plan to accommodate projected population growth with housing that is affordable to households at a variety of income levels. According to data prepared by Thurston Regional Planning Council, Thurston County needs 8,431 new housing units by 2045 to accommodate households with incomes between 30% and 50% area median income. Of these 8,431 units, 3,174 are projected to be needed in Olympia.

 

The project is located roughly .14 miles from an Intercity Transit bus stop served by routes 62A, 62B, and 66 and a quarter mile from Ralph’s Thriftway.

 

Neighborhood/Community Interests (if known):

Affordable housing is a top community concern.

 

Financial Impact:

Applying for the grant on behalf of the project will not have an impact on the City of Olympia.

 

Options:

1.                     Approve the Resolution authorizing the submission of a CHIP grant application in the amount of $267,583 for the Behavioral Health Resources B&B Apartment Project

2.                     Approve the Resolution authorizing the submission of a CHIP grant application with amendments.

3.                     Do not approve the Resolution authorizing the submission of a CHIP grant application for the Behavioral Health Resources B&B Apartment Project

 

Attachments:

Resolution