Title
Approval of 2020 Home Fund Capital Award Recommendation
Recommended Action
Committee Recommendation:
Move to authorize the Home Fund Advisory Board’s recommendation to issue Family Support Center of South Sound an award letter of $1 million for the creation of 62 new homes for homeless children and their families as well as survivors of domestic violence.
Report
Issue:
Whether to authorize staff to proceed with a conditional award letter for the 2020 funding application for permanent housing with supportive services on Olympia’s westside.
Staff Contact:
Cary Retlin, Home Fund Manager, Community Planning and Development, 360.570.3956
Presenter(s):
Cary Retlin, Home Fund Manager
Background and Analysis:
Home Fund Advisory Recommendation:
The Olympia Home Fund Advisory Board unanimously recommends awarding Family Support Center of South Sound $1 million for the creation of 62 new homes for homeless children and their families as well as survivors of domestic violence. An award letter drafted by staff (attached) would accompany future applications for funds and make this project more competitive against similar projects in other jurisdictions. If all funds are awarded and other award letter criteria are met staff would draft a contract for your review and approval.
Impact of this Award:
This project will help create 62 new homes for homeless children and their families as well as survivors of domestic violence. If this project were completed today, the units could be immediately filled with households with children in the Coordinated Entry system, those in shelter and other prioritized homeless families. In the first year, it is expected that this project will serve 209 children, parents and survivors of domestic violence. This housing plans to be fully occupied by March 2023.
Background of the Home Fund:
The Olympia Home Fund was created in 2018 by a sales tax levy approved by Olympia voters. Proceeds from the Home Fund account will be used to construct affordable and supportive housing and related purposes; including mental and behavioral health facilities, costs for operations, maintenance, delivery and evaluation of mental health programs and services, or housing-related services, as allowed by RCW 82.14.530.
2020 Home Fund Capital Award Criteria:
The Home Fund Advisory created criteria for the 2020 award based on the 2018 sales tax levy approved by Olympia voters. The Criteria included:
• Construct new affordable housing units, shelter beds, or treatment beds in Thurston County Washington. Construction can include conversion of existing market rate units into affordable housing.
• Provide housing to households earning no more than 50 percent of area median income (AMI). Beyond the minimum 50 percent AMI requirement, applicants are strongly encouraged to include as many units as possible that are affordable to households with incomes below 50% AMI.
• Provide housing, treatment, or shelter for targeted vulnerable household types including:
o Seniors
o Single adults who are chronically homeless and have a disability
o Families with children
o Unaccompanied youth or young adults
o Survivors of domestic violence
o Veterans
• Reduce homelessness in Thurston County’s most vulnerable homeless households through referrals from a Thurston County Coordinated Entry provider. Proposals should articulate what levels of service and operating subsidies would likely be necessary for the project to be successful and any partnerships have been or will need to be established to successfully operate the homeless units.
• Demonstrate readiness to begin construction based on occupancy date and other measures.
• Provide integrated supportive services at the housing, shelter or treatment facility after construction.
• Demonstrate efficiency in development costs to maximize the impact of City and other public and private fund sources. This priority will be evaluated through per-unit costs and a review of the project budget.
Background on application criteria and Request for Proposal Process:
Based on that criteria an RFP was posted in February on the City website and on the Builders Exchange webpage. The RFP legal notice was posted in the Olympian. One qualifying application was received before the deadline of March 2. The Home Fund Advisory Board members reviewed the application and met to discuss its merits and challenges at their March 11 meeting. That discussion resulted in a unanimous funding recommendation to Council for this application.
Neighborhood/Community Interests (if known):
Affordable housing development and homelessness are of high interest to the community. Siting of affordable housing projects are also of high interest to the public and neighborhoods.
Options:
1. Approve 2020 Home Fund Advisory Board award for Family Support Center of South Sound for $1 million.
2. Direct staff to take other action.
3. Do not take action related to the Home Fund Advisory Board recommendation.
Financial Impact:
The Home Fund would obligate $1 million for construction costs related to the project based on the terms set in the award letter.
The total construction cost for this project is $15.7 million. Other funders that this project will rely on includes Thurston County ($372,000) the Washington State Housing Trust Fund ($3.3 million) and federal Low Income Housing Tax Credits authorized by the Washington State Housing Finance Commission $10 million. Local contributions will make applications for state and federal awards much more competitive.
Attachments:
Request for Proposal
Family Support Center Application
Draft Award Letter