18 CHH Board Meeting March...3 Board Packet Sections 1. Meeting Keys, p. 5-7 2. Board Agenda, p. 11 3. March 2018 Finance Report, January Statements and Asset Management Report, p

CHH Board Meeting

March 2018

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SECTION 1:

Meeting Keys

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March 2018 Capitol Hill Housing Board Meeting Keys and Addenda

Reminder: Dinner begins at 5:45. The meeting starts promptly at 6 PM. We will enter into executive session as needed pursuant to RCW 42.30.110. Introductions, Consent Agenda, Disclosures and Recusals, and Mission Moment: Board and staff make brief introductions. The consent agenda will be moved for adoption. Board members will review items on the agenda and make any necessary disclosures and recusals. The Chair will draw a name and a Board member will be asked to take a moment to discuss the importance of their work with CHH. Public Comment: The Chair will ask any members of the public present for comment not to exceed 5 minutes per individual or 15 minutes combined.

Presentation and Discussion 2017 Review/2018 Look Ahead: Chris will present a brief overview of our accomplishments and challenges over the past year as well as an outlook for 2018. Refresher on LIHTC Entities: Chris will present a brief overview of the ownership structure of the LIHTC entity that will be created for the re-syndication and redevelopment of Eighteenth Ave, Ponderosa and El Nor Apartments.

Finance and Asset Management Financial Summary: The Finance and Asset Management Committee presents its regular report and dashboard through January 2018. Annual Capital Improvement Budget: Brad will present the annual capital budget, required by charter which outlines capital repair projects in the pipeline for the current year. Total estimated cost for 2018 Capital improvements is $9.16M. The Board will be asked to adopt this budget. Park Hill Resolutions: Last month Chris presented on a proposal to transition rents at the Park Hill Apartments to serve a workforce level affordability (80%-120% of AMI). The property will have no external regulatory restrictions upon pay off of the City loan. Staff recommend repositioning rents to generate increased revenue which will allow us to service debt to execute significant repairs and upgrades on the building. As in previous dispositions, no residents will be forced to leave, all residents will be compensated for leaving, and we will attempt to place every resident in another CHH property. The cash flow also helps the general health of the portfolio. Furthermore, this income level is not currently being served by the market or subsidized housing and is well within our mission. Consistent with CHH policies on the Use of Physical Assets, staff request the adoptions of Resolution 2018-03- Park Hill Repositioning and 2018-04 Park Hill Financing. Please review the Memorandum on the Park Hill for greater detail.

Real Estate Development Suspension of Board Meeting to Convene CHDA Board Meeting: We are asking the Board to authorize the formation of the ownership entities for the Resyndication and development of our existing properties Eighteenth Avenue, Ponderosa, and El Nor. The new ownership entity will be Ponderosa LLLP, which will consist of two members 1) CHH as interim majority limited partner (99.99% ownership) and 2) Ponderosa LLC whose sole member will be CHDA. The CHDA Board (an affiliated supporting nonprofit) will authorize the creation of the entities as well allowing CHH to become manager of Ponderosa LLC.

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The CHH Board will suspend its meeting to call to order the meeting of the CHDA board to pass their resolution. Upon completion of this task the CHDA board will adjourn and the CHH board will resume its meeting. Resolution 2018-05— Entry into and Management of Bonanza Ownership Entities: This resolution authorizes CHH to a) become the manager of the Ponderosa LLC, b) become the interim limited partner (to be replaced by the LIHTC investor) and c) cause the entity (Ponderosa LLLP) to acquire the properties. Real Estate Development Updates: The Board will enter executive session as appropriate to discuss certain current real estate activities. We will enter into executive session pursuant to RCW 42.30.110. (1)(b) [executive sessions are allowed] To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price.

Executive Committee and Governance Convention Center Agreement: As reported last month, CHH has been involved as part of a Community Package Coalition in the negotiations with the Washington State Convention Center regarding appropriate benefits to be delivered to the community in exchange for a street and alley vacation and development nexus. Our group executed an MOU last fall and are now negotiating a final contract. There is no obligation to CHH except to not oppose the convention center. Because of the timing of board approvals of the various signers, we are seeking signing authorization from the Board prior to the contract’s final drafting. Rebranding: There will be no verbal update. The staff and rebranding committee has hired DEI Creative to lead this portion of the rebranding process. Next steps entail additional stakeholder interviews and surveys. These results will be presented and discussed at the June Boards retreat. Returning Board Members and Slate of Officers: There will be no verbal update. The Board will elect returning Board members and a slate of officers at their April meeting. A list of these is included in the packet. CEO annual review process: This portion of the meeting will be taken in executive session per RCW 42.30.110 (1)(g) “To review the performance of a public employee”.

Upcoming Meetings and Events

Please let Chris or Sarah know if you’d like additional information on any event or

meeting.

Mar 12 CHH Board Meeting Mar 26 Executive Committee Meeting

Apr 9 CHH Board Meeting Apr 24 Foundation Board Meeting

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Board Packet Sections 1. Meeting Keys, p. 5-7 2. Board Agenda, p. 11 3. March 2018 Finance Report, January Statements and Asset Management Report, p. 15-21 4. Capital Projects Budget, p. 25-26 5. Park Hill Repositioning Report, p. 29-34 6. Resolution No. 2018-03: Park Hill Repositioning, p. 37-40 7. Resolution No. 2018-04: Park Hill Financing, p. 43-46 8. Resolution No. 2018-05: Entry Into and Management of Bonanza Ownership Entities, p. 49-53 9. Convention Center Term Sheet, p. 57-62 10. Rebranding Consultant, p. 65-68 11. Returning Board Members and Slate of Officers, p. 71 12. Consent Agenda and Attachments, p. 73

a. Contracts and Expenditures, p. 75 b. February Board Minutes Draft, p. 77-80 c. Tenant Communications Log, p. 81 d. Property Management Report and Minutes, p. 83-85 e. Property Management Dashboard, p. 87 f. Memo from the CHH Foundation, p. 89-92 g. Property Development Report and Minutes, p. 93 h. Joint Board Development Committee Report and Minutes, p. 95 i. Community Development Committee Report and Minutes, p. 97-98 j. Executive Committee Report and Minutes, p. 99-100

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SECTION 2:

Board Agenda

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CAPITOL HILL HOUSING BOARD March 12, 2018

6:00 PM – 7:45 PM Regular Meeting 12th Ave Arts Pike-Pine Room

1620 12th Avenue, Seattle

AGENDA

6:00 Call to Order (Hillenbrand) – 5 min total

1. Introductions, welcome 2. Approve consent agenda Sec. 12, Page 73 3. Disclosures and recusals 4. Mission moment

6:05 Public Comment (Not to exceed 5 minutes per individual or 15 for combined speakers) 6:10 Presentation and Discussion – 25 min total

1. 2017 Review/2018 Look Ahead (Persons et al) – 20mins Presentation 2. Refresher on LIHTC Entity Formation – 5 mins Presentation

6:35 Finance and Asset Management – 20 min total

1. Finance report (Porter, Gibson) a. Financial summary, cash management report:

January 2018 Financial Statements – 5 min Sec. 3, Page 13 2. Capital Projects Budget (Lange) – 5 min Sec. 4, Page 23 3. Park Hill Resolutions (Lange) – 10 mins

a. Park Hill Overview Sec. 5, Page 27 b. Resolution 2018-03 - Park Hill Repositioning Sec. 6, Page 35 c. Resolution 2018-04 - Park Hill Refinancing Sec. 7, Page 41

6:55 Pipeline Review and Project Introductions (Wilkening) – 25 min total

1. Suspension of Board Meeting to Convene CHDA Board Meeting – 5 mins 2. Resolution 2018-05 Entry into and Management of Bonanza Ownership

Entities – 10 mins Sec 8, Page 47 3. Real Estate Development Update – 10 mins

The Board will enter executive session to consider the acquisition of a site when public knowledge would cause a likelihood of increased price

7:20 Executive Committee and Governance – 25 mins total 1. Convention Center Agreement – 5 mins Sec. 9, Page 55 2. Update on rebranding Sec. 10, Page 63 3. Returning Board Members and Slate of Officers Sec. 11, Page 69 4. CEO annual review process (Hillenbrand, McQuade) – 20 mins

This portion of the meeting will be taken in executive session per RCW 42.30.110 (1)(g) “To review the performance of a public employee”

7:45 Adjourn (Hillenbrand)




SECTION 3:

March 2018

Finance Report

January Statements and

Asset Management Report SE

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MARCH 2018 FINANCE & ASSET MANAGEMENT BOARD REPORT AND MINUTES

(Includes minutes from March Audit Committee meeting)

Finance & Asset Management Committee Members: Drew Porter, Frank Alvarado, Robert Schwartz

Audit Committee Members: Frank Alvarado, Robert Schwartz, Drew Porter

Staff Liaisons to the Board: Brad Lange, Greg Gibson

(BOLD indicates those members in attendance)

Date, time and location of meeting: Tuesday March 6, 2018 4-5:30 pm Malden conference room

Financial Position Summary: The only significant shift to the balance sheet for January 2018 is an increase

in unrestricted cash and an increase in notes payable due to the closing of the HPN predevelopment/

capacity building loan on January 30th. At closing, CHH received the first draw of $625,000.

The operating statement through the first month of the year showed an operating surplus that exceeds

budget by $220,000. This is primarily due to timing factors as $125,000 in deferred developer fees and

accrued partnership management fees, originally budgeted for paydown in Q3 of 2018, were paid in

January. In addition, expenses were under budget due to decreased office remodel costs and timing

differences between budget and actual expenditures for consulting and repair and maintenance.

Minutes:

Audit Committee Presentation: Andrew Prather and Patrick Lewis from Clark Nuber presented the required

pre-audit communication to the Finance Committee whose members in attendance also comprise the audit

committee. In addition to the required communications related to the CHH consolidated audit, Clark Nuber

noted that the 2017 affiliate entity audits were mostly complete. To date, the audit has gone well and

resulted in very few audit adjustments.

Financial Review: The committee reviewed the monthly financial reports and the monthly financial ratio

analysis. The rolling twelve-month cash forecast was also reviewed. Comments and Analysis regarding the

January Balance Sheet and Operating Statement are included as annotations in the attached statements. As

part of this review, the committee also discussed the 2018 budget and reviewed anticipated variances

identified by management.

The committee reviewed the Property Management dashboard report

Vacancy loss for the portfolio is 2.5% for the first month of 2018. The rolling 12-month vacancy for the

portfolio is 2.2%. Vacancy loss for 2016 was 2.8%. Vacancy loss for 2015 and 2014 was 2.8% and 3.8%

respectively. The committee discussed specific buildings which attributed to the increase in vacancy

percentage over the prior month.

Oleta Year 15: Management anticipates that the Year 15 transaction for the Oleta Apartments Limited

Partnership, originally expected to occur on December 31, 2016, will occur in 2018. The transaction continues

to be delayed pending resolution of the state excise tax issue, which is now in active discussion as part of the

state legislative session. Note: The Helen V was expected to complete the year-15 investor exit on 12/31/17,

but is now pending resolution of the above excise tax issue as well.


Capital Projects budget: Brad reviewed the 2018 capital projects budget as well as the capital projects

committee charter with the group. The FAMC members recommend that the Board of Directors vote to

accept the 2018 capital projects budget as presented.

Park Hill Repositioning: Brad reviewed the Park Hill repositioning memo with the committee. CHH is seeking

to reposition the Park Hill to provide workforce housing that will also generate additional cash flow to the

Organization. Additional cash flows will provide support for the broader portfolio and funding for

organizational operations. CHH will have the ability to reposition this building as the City loan agreement

expires March 28, 2018, at which time the income restrictions currently in effect will no longer be required.

The committee discussed the repositioning and recommends that the Board of Directors vote to move

forward with the repositioning project, including acceptance of board resolutions to move forward with re-

financing.


Capitol Hill Housing

Blended Balance Sheet

01.31.2018

unaudited

12.31.2017

unaudited

Change from

prior month

12.31.2016

audited*

12.31.2015

audited*

Assets

Unrestricted Cash 2,485,621 2,037,757 447,864 1 1,549,568 1,402,774

Accounts Receivable 710,420 729,127 (18,707) 605,408 340,450

Prepaids & Other Current Assets 309,285 339,267 (29,982) 2 145,836 160,196

Contributions/Grants Receivable 0 0 0 71,138 44,520

Due from Affiliates 5,025,034 5,088,549 (63,515) 3 5,591,990 4,975,743

Board Designated Operating Reserve 1,000,000 1,000,000 0 1,000,000 1,000,000

Board Designated Opportunity Reserve 568,985 567,083 1,902 651,507 643,976

Restricted Cash 6,163,737 6,135,901 27,836 4 5,605,330 4,558,940

Notes Receivable from Affiliates 15,322,710 15,322,710 0 15,411,829 16,381,921

Land 20,633,757 20,633,757 0 14,643,757 12,634,826

Buildings, Improvements & Equipment 72,800,379 72,741,898 58,481 5 72,923,292 60,719,596

Accumulated Depreciation (39,476,841) (39,294,696) (182,145) 6 (37,093,003) (31,527,724)

Lease Receivable 817,531 817,531 0 890,908 912,402

Investment in LPs/LLCs 1,517,257 1,524,495 (7,238) 1,534,145 640,472

Other Assets (1,506) (5) (1,501) 0 187,682

Total Assets 87,876,369 87,643,374 232,995 83,531,705 73,075,774

Liabilities

Notes Payable 59,122,854 58,495,383 627,471 7 52,278,219 43,777,452

Accrued Interest Payable 4,421,436 4,421,436 0 4,406,834 3,914,328

Accounts Payable & Accrued Liabilities 3,686,905 3,858,150 (171,245) 8 4,859,505 4,011,248

Tenant Security Deposit Liability 575,574 579,612 (4,038) 562,478 501,478

Total Liabilities 67,806,769 67,354,581 452,188 62,107,036 52,204,506

Net Position 20,069,600 20,288,793 (219,193) 21,424,669 20,871,268

Total Liabilities and Net Assets 87,876,369 87,643,374 232,995 83,531,705 73,075,774

* Internal presentation, certain amounts netted for audit presentation

Significant balance sheet changes from prior month

1)

2)

3)

4)

5)

6)

7)

8) Routine fluctuation in accrued payable balances based on timing of payroll and accounts payable check run relative to month-end

Change due to routine amortization of monthly pre-paid expense items. Note: balance includes $200K sponsorship loan deposit for

Liberty Bank commercial.

HPN capacity building and predevelopment loan closed on January 30th and the first draw of $615K was deposited into the CHH

operating account. Predevelopment expenses for LBB of $50K were also paid in January to be refunded through February draw.

Monthly transfer of replacement reserve contributions.

Change is primarily due to capitalization of CHH office remodel expenses and capitalization of Lake City predevelopment interest.

HPN loan closed then end of January - total draw received in January was $625K (closing costs subtracted from net cash received in

tick mark 1 above).

Change in the "due from affiliates" line item is primarily the result of fluctuations in the timing of paydowns on due-to/from balances

offset by the recording of additional predevelopment expenditures.

Change due to current month depreciation.

CHH balance sheet as of 1.31.2018.xlsx


Capitol Hill Housing Improvement Program

Statement of Revenues and Expenditures - Unaudited

From 1/1/2018 Through 1/31/2018

Year to Date

Actual

Year to Date

Budget

Year to Date

Budget

Variance Variance Pct Total Budget

Budget

Remaining

Revenue

Tenant Rent

Residential tenant revenue 814,118 820,484 (6,366) -0.78% 9,845,808 9,031,690

Commercial rent and NNN 191,744 157,970 33,774 1 21.38% 1,873,845 1,682,101

Parking, laundry and other 17,427 17,230 197 1.14% 205,606 188,179

Res vacancy and concessions (19,638) (28,195) 8,557 2 -30.35% (323,646) (304,008)

Total Tenant Rent 1,003,651 967,489 36,162 3.74% 11,601,613 10,597,962

Other Operating Revenue

Property Management Fees 129,122 132,788 (3,666) -2.76% 1,593,451 1,464,329

Partnership Management Fees 130,000 20,736 109,264 3 526.93% 610,180 480,180

Development Fees 25,000 0 25,000 4 0.00% 706,000 681,000

Acctg, Leasing & Compliance Fees 68,927 73,036 (4,109) -5.63% 876,428 807,501

Other Operating Revenue 0 4,300 (4,300) -100.00% 67,798 67,798

Total Other Operating Revenue 353,049 230,860 122,189 52.93% 3,853,857 3,500,808

Other Revenue

Grants & Donations (2,450) 3,947 (6,397) -162.07% 882,570 885,020

Interest Income 5,087 1,500 3,587 239.13% 180,710 175,623

Other Income (non-operating) 554,524 554,724 (200) -0.04% 569,174 14,650

Total Other Revenue 557,161 560,171 (3,010) 77.12% 1,632,454 1,075,293

Total Revenue 1,913,861 1,758,520 155,341 8.83% 17,087,924 15,174,063

Expenses

Accounting, Audit & Legal 61,295 52,420 (8,875) -16.93% 517,518 456,223

Administrative Expenses 53,618 81,062 27,444 5 33.86% 483,991 430,373

Board Expense 0 558 558 100.00% 6,700 6,700

CHH Occupancy Expense 22,280 23,633 1,353 5.73% 343,690 321,410

Compliance, Taxes & License 12,670 12,562 (108) -0.86% 220,639 207,969

Consulting 3,096 22,458 19,362 6 86.21% 227,603 224,507

Debt Service 196,955 204,178 7,223 3.54% 2,642,878 2,445,923

Insurance 24,800 25,764 964 3.74% 309,171 284,371

Leasing/Compliance Expense 20,612 20,612 0 0.00% 247,344 226,732

Miscellaneous Financial Expense 585 625 40 0.00% 16,043 15,458

Other Operating Expense 0 427 427 100.00% 2,390 2,390

Payroll, Taxes and Benefits 558,967 561,052 2,085 0.37% 6,732,624 6,173,657

Partnership Mgmt Fee Expense 12,345 12,345 0 0.00% 138,812 126,467

Property Mgmt Fee Expense 90,221 90,221 0 0.00% 1,142,655 1,052,434

Repair and Maintenance 129,568 144,622 15,054 7 10.41% 1,613,862 1,484,294

Technology 9,928 18,601 8,673 46.63% 230,093 220,165

Training, Dues, Subscriptions 10,118 10,425 307 2.94% 150,480 140,362

Utilities 119,385 108,731 (10,654) 8 -9.80% 1,362,165 1,242,780

Total Expenses 1,326,443 1,390,296 63,853 4.59% 16,388,658 15,062,215

Operating Surplus (Deficit) B4 Reserves 587,418 368,224 219,194 59.53% 699,266

Reserve Contributions

Replacement Reserve (42,871) (42,811) (60) 0.14% (492,311) (449,440)

Operating Reserve (4,007) (4,007) 0 0.00% (43,084) (39,077)

Other Reserve (2,869) (2,869) 0 0.00% (34,424) (31,555)

Total Reserve Contributions (49,747) (49,687) (60) 0.12% (569,819) (520,072)

Operating Surplus (Deficit) 537,671 318,537 219,134 68.79% 129,447 See note


Note

1)

2)

3) Deferred partnership management fees for Helen V of $100K were paid in January. Paydown was originally budgeted for September

4)

5)

6)

7)

8)

Variance Discussion (Greater than $10K and 5%)

Total office expansion costs of $75K were budgeted all in January. A portion of the expense was recorded in December 2017 and a

small portion will be paid in February, 2018. Total project is expected to be under budget.

12AA commercial NNN of $35k billed in Jan for Q4 2017, budget includes quarterly billings every three months starting in March.

The trend of low vacancy rates continues from prior year. Average vacancy for the portfolio was approximately 2.5% for January as

compared to a budgeted portfolio average of approximately 3% (varies depending on building history).

$25K paydown of deferred developer fee at Jefferson that was originally budgeted $10K in February and $15K in August

Budget includes several URM studies, which are in process and will be billed in February along with $8,300 in "community partner"

expenses. Actual expense incurred in January was $0; however, February invoice will make up this difference.

A portion of the variance resulted from decreased vacancy and unit turnover during Jan, which lead to unit turnover costs for repair

and maintenance coming in under budget. We anticipate this variance to decrease as we move into completion of season work.

Water, sewer and gas is over budget for most buildings. The usage is high in January as compared to prior years. While the budget

was adjusted to reflect seasonality, we believe some of this is still the result of timing differences that will correct throughout the

year.

Original board approved budget assumed CHH would assume ownership of the Harvey in January, 2017. As of 2/28/2018, no

acquisition has occurred; accordingly, the operating results and budget totals for the Harvey are not included in the above report.

This represents the difference between the final board approved budget and the total budget column above.

Date: 3/2/2018, 5:47 PM Page: 2


Ratio Analysis

Calculations

CHHIP Operating Cash Balance: CHH main operating account balance at month end - prior 3 years

Receivable as a % of GPR: Measures how effective the Organization is at collecting rent charged to tenants

Calculation: Month end balance of tenant receivables accounts by site / total monthly gross potential rent

Target: Less than 2.0% of GPR outstanding at month end

Self Sufficiency Ratio: Measures the Organization's ability to cover operating expenses with operating revenues

Calculation: Total operating expenses / total operating revenue less developer fees (grant income = prior 12 month avg)

Target: 100% = Operating revenues are sufficient to cover operating expenses

Days Operating Cash: Measures the c ash on hand to cover operating expenses based on current spend rate

Calculation: Month end operating cash balance / Avg expense per day (prior 3 months)

Target: 2 months operating cash on hand

Leverage Ratio: Measures the ratio of assets funded through debt relative to other sources (operatings/grants etc)

Calculation: Total liabilities at month end / end of month net position

Target: 2.5 - 4: 4.0 maximum ratio

30

35

40

45

50

55

60

65

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Days Operating Cash

2.90

3.00

3.10

3.20

3.30

3.40

3.50

Leverage Ratio

1.0%

1.5%

2.0%

2.5%

3.0%

Receivable as a % of GPR

-200,000

0

200,000

400,000

600,000

800,000

February March April May June July August September October November December January

CHHIP Operating CashPrior Year 2 Prior Year 1 Current Year

80%

90%

100%

110%

120%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Self Sufficiency Ratio



Finance Dashboard

Year to Date at January 31, 2018

Blended Component Units:

Affordable

Units

Market

Units

Total

Units Actual Budget Var % Actual Budget Var % Actual Budget Variance

Berneva Colby 12 12 818 779 5% 777 700 -11% 37 45 8.5% 2.1% 8.5% 1.4% (624) (154) (470)

Boylston Howell Colby 30 30 891 947 -6% 767 725 -6% 8 39 0.2% 0.8% 0.2% 0.8% 2,903 5,818 (2,915)

Bremer Asia 49 49 765 766 0% 657 513 -28% 13 52 2.0% 2.6% 2.0% 2.6% (3,876) 3,260 (7,136)

Brewster Colby 35 35 752 705 7% 444 516 14% 17 78 3.0% 6.5% 3.0% 6.8% 8,600 4,434 4,166

Broadway Colby 3 2 5 1,125 1,076 4% 671 625 -7% 0.0% 0.0% 0.0% 0.2% 1,095 1,084 11

Burke Gilman Gardens Dianne 15 15 1,105 1,052 5% 686 745 8% 13 24 0.0% 0.7% 0.0% 0.7% 5,661 3,989 1,672

Byron Wetmore Colby 12 12 953 962 -1% 602 829 27% 54 0.0% 1.1% 0.0% 1.1% 3,632 1,018 2,614

Casa di Cinque Dianne 3 2 5 1,387 1,347 3% 581 781 26% 0.0% 0.0% 0.0% 0.0% 2,730 1,254 1,476

Centennial Scott B. 21 9 30 946 1,008 -6% 547 496 -10% 15 42 7.0% 2.8% 7.0% 2.7% 1,465 4,870 (3,405)

Devonshire Scott B. 62 62 807 794 2% 528 564 6% 19 49 0.1% 1.9% 0.1% 2.3% 8,845 5,800 3,045

Eighteenth Avenue Dianne 9 9 1,015 1,136 -11% 848 780 -9% 97 96 11.7% 3.3% 11.7% 2.5% (2,197) (497) (1,700)

El Nor Asia 55 55 888 893 -1% 1,028 776 -32% 25 71 2.3% 3.0% 2.3% 2.8% (17,754) (3,616) (14,138)

Elizabeth James Scott B. 60 60 860 855 1% 603 583 -3% 17 53 1.7% 1.5% 1.7% 1.5% 2,646 2,117 529

Fleming Asia 36 36 730 786 -7% 489 532 8% 57 8.5% 0.9% 8.5% 0.3% (1,506) (1,010) (496)

Four Ten Colby 6 6 816 784 4% 523 528 1% 4 23 0.0% 1.5% 0.0% 1.8% 926 704 222

Four Twelve Colby 12 12 1,345 1,289 4% 871 927 6% 0.0% 0.0% 0.0% 0.6% 4,400 1,606 2,794

Fredonia Dianne 7 5 12 2,488 2,454 1% 774 1,034 25% 11 29 0.0% 2.0% 0.0% 2.0% 14,279 10,746 3,533

Gilman Court Valencia 25 25 1,159 1,146 1% 855 884 3% 10 49 0.0% 0.8% 0.0% 1.1% 6,256 5,217 1,039

Harrison at 15th Colby 19 19 1,914 1,881 2% 940 947 1% 0.0% 0.2% 0.0% 0.1% 7,750 6,979 771

Hazel Plaza Scott B. 16 16 2,205 2,124 4% 842 773 -9% 0.0% 0.2% 0.0% 0.2% 9,908 9,934 (26)

Holden Vista Asia 16 16 1,202 1,202 0% 974 935 -4% 84 6.2% 6.0% 6.2% 5.5% 3,058 3,685 (627)

Joe Black Apartments Colby 24 24 1,159 1,129 3% 1,370 1,011 -35% 0.0% 1.4% 0.0% 1.7% (8,421) (536) (7,885)

John Carney Asia 27 27 734 717 2% 480 544 12% 9 68 0.0% 1.4% 0.0% 1.4% 3,384 1,204 2,180

Larned Asia 33 33 932 902 3% 571 628 9% 9 32 0.0% 1.9% 0.0% 1.9% 10,107 7,219 2,888

Lincoln Court Colby 29 29 848 846 0% 512 526 3% 7 58 1.6% 2.1% 1.6% 2.3% 1,167 704 463

Mary Ruth Manor Scott B. 20 20 1,894 1,987 -5% 855 903 5% 23 114 4.0% 2.9% 4.0% 3.6% 5,352 6,240 (888)

Maxwell Colby 4 4 971 947 3% 573 624 8% 0.0% 0.0% 0.0% 0.4% 1,086 787 299

Melrose Colby 30 30 741 758 -2% 548 722 24% 11 45 4.9% 1.7% 4.9% 1.8% 2,590 (2,107) 4,697

Miller Park Dianne 12 12 1,035 1,006 3% 846 717 -18% 11 45 0.0% 1.0% 0.0% 1.6% (476) 731 (1,207)

Park Hill Scott B. 20 10 30 1,256 1,203 4% 666 782 15% 29 68 0.0% 3.8% 0.0% 3.8% 12,365 7,301 5,064

Ponderosa Dianne 23 23 777 771 1% 640 627 -2% 0.0% 0.1% 0.0% 0.1% 1,936 2,109 (173)

Seneca Colby 32 32 898 911 -1% 700 744 6% 28 0.0% 0.2% 0.0% 0.2% 1,190 192 998

Union James Dianne 24 24 222 480 -54% 270 305 12% 23 83 7.0% 6.7% 7.0% 6.9% (1,902) 1,363 (3,265)

Villa Valencia 62 62 1,013 1,018 -1% 567 646 12% 26 54 2.1% 1.5% 2.1% 1.4% 8,150 3,605 4,545

94,725 96,050 (1,325)

Discrete Component Units:

Broadway Crossing Scott B. 44 44 864 950 -9% 781 798 2% 51 75 0.0% 0.5% 0.0% 1.7% (2,428) 571 (2,999)

Fremont Solstice Valencia 18 18 938 958 -2% 493 843 42% 10 26 0.0% 0.4% 0.0% 0.4% 2,397 (3,087) 5,484

Haines AAA Dianne 30 30 895 948 -6% 758 858 12% 55 137 7.8% 3.7% 7.8% 3.5% (19,572) (4,209) (15,363)

Helen V Scott B. 38 38 1,502 1,516 -1% 816 725 -13% 16 95 5.0% 3.3% 5.0% 3.7% 14,810 18,786 (3,976)

Holiday Scott B. 30 30 959 966 -1% 766 592 -29% 29 73 3.1% 1.4% 3.1% 1.9% (5,038) 365 (5,403)

Jefferson Housing Dianne 40 40 1,050 1,117 -6% 797 778 -2% 16 43 4.9% 1.0% 4.9% 0.6% (6,459) (3,019) (3,440)

Oleta Colby 34 34 810 793 2% 510 577 12% 35 60 0.8% 3.2% 0.8% 3.4% 1,506 (1,351) 2,857

Pantages Scott B. 49 49 863 875 -1% 863 694 -24% 18 37 0.0% 0.7% 0.0% 0.8% (7,674) 1,260 (8,934)

Silvian Valencia 32 32 1,014 980 3% 646 714 10% 16 77 0.0% 0.4% 0.0% 0.5% 1,895 (1,377) 3,272

Squire Park Plaza Valencia 31 29 60 1,691 1,666 2% 557 626 11% 17 48 4.6% 4.5% 4.6% 4.5% 26,100 20,460 5,640

Twelfth Avenue Arts Valencia 88 88 945 946 0% 574 499 -15% 12 36 2.5% 1.4% 2.5% 1.6% 128 6,850 (6,722)

Unity Village Asia 30 30 799 815 -2% 982 724 -36% 14 83 5.6% 5.5% 5.6% 5.2% (6,577) 1,634 (8,211)

(912) 36,883 (37,795)

Portfolio Totals: 1307 57 1364 1,378,217 1,389,415 -1% 931,979 916,258 2% 20 57 2.5% 2.2% 2.5% 2.3% 93,813 132,933 (39,120)

Explanation of select properties with high vacancies or large vacancy increases:

Eighteenth Avenue - one vacancy in January; a 2-bdr unit that requires new flooring and countertops (hard turn). Waitlist challenges

Berneva- one vacancy in January (filled in early February)

Centennial - three vacancies in January (all were filled in February)

Fleming - Four vacancies in January (one filled halfway in the month and the rest were filled in February)

Holden Vista - one vacancy in January; a 2-bdr unit that requires new wall painting and countertop+bathtub repair (hard turn). March move-in scheduled

Union James - two vacancies in January, both required carpet and blinds cleaning

Haines - two vacancies in January, one filled in February. Waitlist challenges

Unity Village - two vacancies in January, one 1-bdr (hard turn) and one 2-bdr with higher rents

Portfolio

Manager

12 MO

Rolling

2018

YTD

2017

Vacancy

2018

Jan.

Monthly

YTD 2018

Op expenses B4 Debt

Cost Per Unit

2018 YTD Cash Flow

after debt and reserves

YTD 2018

Income Per Unit

YTD

Avg.

Total

Turn

Days

YTD

Avg.

Make

Ready

Days

M:\Finance & Accounting\@Secured\Dashboard\2018\01-18-Finance dashboard.xlsx




SECTION 4:

Capital Projects Budget

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Capitol Hill Housing Improvement Program

Capital Projects Policy and Budget

May 5, 2015

Purpose:

The purpose of the Capital Projects Policy is to set forth the framework for determining the priority andfinancing strategy for capital projects for the existing Capitol Hill Housing (CHH) portfolio.

Definition and Goals:

It is the goal of CHH to maintain the real estate portfolio in good repair for the useful life of each asset.Capital projects are defined as items that are beyond the scope of normal property operations. Theymay require additional financing or construction management oversight. Examples would be roofreplacement, window replacement, new siding, tuckpointing, replacement of major building equipment,remodeling or reconfiguration of common areas, etc.

The dollar amount limitation for Capital Projects is generally $10,000 for small buildings (ten or fewerunits) and $50,000 for large buildings (eleven or more units.) Projects below this size limit will fall undernormal property management operations. Any complex or unusual projects will be evaluated on a caseby case basis. It is possible that a major project may not be considered a capital project, e.g.replacement of common area carpet in a large building may be over the dollar threshold but this isconsidered normal property operations and would not fall under this policy.

Capital Project Budget Process

The budget will be developed by the Director of Asset Management, Director of Property Management,Director of Finance, Portfolio Managers, Facility Manager and Construction Manager, collectively theCapital Projects Team (Team). The Team will meet in the fourth quarter to plan the Capital Projects forthe next year. The Director of Asset Management will be responsible for developing a budget that willinclude the projects, estimated cost, potential funding sources, and priority. This draft budget will bereviewed and approved by the Finance and Asset Management Committee. The Finance and AssetManagement Committee will make recommendations to the CHH Board. Staff will periodically updatethe Finance and Asset Management committee on the status of the items and any changes to thebudget.


2018 Capital Projects Budget2/28/2018

Per the CHH Charter, an annual capital projects budget is to be approved by the board. This budget is intended to summarize capital projects at CHH buildings that will be undertaken during the year.

Building Capital Project Estimated Cost Funding Source

Replacement

Reserves

2/12/18

Operating

Reserves

2/12/18 Priority

Difficulty of

Execution

Helen V Roof 80,000$ Reserves 234,770$ 111,786$ Medium Low

Park Hill* Window sill repair, stairwell windows 100,000$ Building cash flow and reserves 75,314$ 104,817$ High Low

Miller Park Roof 80,000$ Reserves 194,000$ 37,982$ Medium Low

Elizabeth James Roof, solar, efficiency upgrades 700,000$ Incentive reimb, new loans, grants 115,063$ -$ Medium Medium

Seneca Exterior sealent repair 125,000$ Reserves 227,074$ 5,618$ High Medium

Union James Site drainage, replace downspouts, hallways 125,000$ Reserves, resid recpts, and cash on hand 50,046$ -$ High Low

Villa Recoat exterior, sealant work, leak repair 210,000$ Reserves, cash on hand and CHH funds 114,615$ 15,822$ High Medium

Holden Vista Replace electrical panels 60,000$ Reserves, cash on hand, refinance? 67,220$ -$ High Medium

Boylston Howell Exterior envelope replacement, roof 2,600,000$ Bank debt, city investment, syndication? 80,040$ 21,539$ High High

Gilman Court Roof, siding, windows, cabinets 3,000,000$ Reserves/Cash flow/refi 81,340$ 7,282$ High Medium

Fleming Tuckpoint 80,000$ Bank debt, city investment? 59,397$ 14,692$ High High

John Carney Siding replacement, windows 2,000,000$ Bank debt, city investment? 1,658$ 56,367$ High High

Total 9,160,000$

Color Code

Green -- property has ability to pay for capital item from reserves or refinance proceeds

Yellow-- property can pay for some of capital item from reserve or refinance proceeds

Red-- property will require extraordinary funding or funds from CHH general account to pay for capital needs

* repositioning of building is under consideration by Board


SECTION 5:

Park Hill Repositioning

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Page 1

Park Hill

Meeting the Need for Workforce Housing While Strengthening the Portfolio

March 12, 2018

Introduction: Capitol Hill Housing (“CHH”) is seeking to reposition Park Hill to provide workforce housing,

generate additional funds to rehabilitate and upgrade the building, and to create additional cash flow to

support the broader portfolio and organizational operations.

Property Summary

Background: Park Hill is a 30-unit, three story building built in 1907 and acquired by Capitol Hill Housing

in 1986. To finance the acquisition and rehabilitation of Park Hill at the time, CHH borrowed $410,000

from the City of Seattle. The City loan will mature on March 28, 2018, and the loan balance (plus accrued

interest) will become due. The loan agreement with the City will also expire at this time. CHH additionally

borrowed $680,000 from Washington Mutual Bank (now Chase) in 2000. The Chase note is serviced in

monthly installments and has a final payment on October 1, 2030.

Need for Workforce Housing: “Workforce” housing (typically defined as housing serving incomes

between 60% and 120% of area median income) has been identified as a critically under met need in

Capitol Hill. Households within this population (incomes ranging from $40,300 - $80,600 for an individual)

are increasingly caught between earning too much to qualify for housing assistance but not enough to

afford rent in the high-cost neighborhoods of Seattle. A sample of occupations that fall in this salary range

include teachers, police officers, firefighters, nurses, and many employees of Capitol Hill Housing.

Compounding this shortage is the added shortage of family-sized apartments in Capitol Hill.

CHH Policy Guidance: Park Hill provides CHH an opportunity to fulfill its goal of expanding family-sized

workforce housing while also strengthening the broader portfolio and operations. With the expiration of

the City loan agreement in March, CHH will have the opportunity to reposition Park Hill towards serving a

workforce population. The reposition will support the additional debt Park Hill needs to improve the

physical sustainability of the building (current capital needs outweigh reserves available to pay). CHH has

crafted policies specifically for this purpose. Per our “Policy Framework for Use of Physical Assets” (June

2006), CHH outlined three primary reasons when considering a redeployment of the organization’s assets:

1) to reduce losses on properties where buildings are not breaking even

2) to address the need for a large capital investment in excess of reserves in a building

3) to generate capital to invest in new projects

Name: Park Hill

Address: 1300 East Union Street

Seattle, WA 98122

Units: 30 total; 3- Studios, 10- 1 Bed, 14- 2

Bed, 3- 3 Bed

Rent levels: 20 units at 50% AMI, 10 at market

Built/Renov: 1907/1988

Land Area: 12,458 SF

Building Area: 37,010 Gross, 24,888 Net per KCR

Zoning: NC3-65

Demographics: SEE EXHBIT C


Page 2

This Framework provided guidance during CHH’s past successful asset dispositions. Below is brief

summary of each:

The Tiltsonian: January 7, 2015, Board approved sale of The Tiltsonian for a minimum of $800,000. Listed

property at $900,000. Four offers received—two included escalation clauses that increased price to

$961,000. Four of the five residents relocated to CHH buildings—two at The Broadway, one at Boylston

Howell and one at Seneca. Fifth resident was over income for most CHH units and went elsewhere. All

Tiltsonian residents received a resident relocation compensation package (between $4,500 - $5,500).

Buyer completed an extensive renovation (over $250,000) and rented units at market. Net proceeds from

sale of $718,761 were deposited into Board designated Opportunity Reserve which was used to

participate in joint purchase of Squire Park Plaza with Jonathan Rose Companies.

Fire Station Seven: CHH shared office space with Environmental Works and Country Doctor. Acquired

from the City in 1986. CHH and Country Doctor sold their shares to Environmental Works in 2015 for a

gain of $351,0000.


Page 3

The Elizabeth Dean Wells: The sale of Elizabeth Dean Wells closed in August 2012 with a purchase price

of $780,000. One of the five units was vacant when the property was listed. Residents of the building

received $4,500 - $5,000 as relocation compensation. One household remained as property caretakers.

Proceeds from the sale, a total of $514,723,73, deposited to CHH Opportunity Reserve.

Relocation Program: The Tiltsonian disposition in particular serves as a model for the relocation program

CHH will implement with Park Hill:

• Property Management will work individually with the residents (Resident-centric)

• Residents offered a CHH unit that they are qualified for when it becomes available

• Residents will have access to CHH Resident Services Manager

• Residents will receive the following relocation funds:

o Studio - $4,000

o One bedroom - $4,500

o Two bedrooms - $5,000

o Three bedrooms - $5,500

• Additional relocation funds based off length of tenure will also be provided (~ $100 per year)

• Residents who do not want to move will be allowed to remain at the Park Hill

Summary of Impact: Repositioning Park Hill towards serving a workforce population will bring benefits to

the building itself and to CHH’s broader operations:

• Serves population that is being underserved and pushed out of neighborhood

• Renovations will improve the physical sustainability of the building

o 2017 Portfolio Assessment saw a decline in portfolio-wide physical sustainability

• Park Hill is a potential “Unreinforced Masonry Building” (URM), which could require substantial

seismic retrofitting

o Reposition could support seismic retrofits for other URM buildings in portfolio

• Increased cash flow from Park Hill strengthens our double bottom line (see Exhibit A)

• Repositioning provides buffer against loss of property tax-exemption

o If more than 50% of units are occupied by residents with incomes over 50% of AMI, tax-

exemption fully expires (currently at 47%, or 14 units)


Page 4

Exhibit A

*Net Present Value of cash flow (after debt service and reserve payments) was calculated using an 8% discount

factor

$75

$100

$125

$150

$175

$200

$225

$250

2017

Proforma

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Th

ou

san

ds

Park Hill

Annual Net Cash Flow Comparison*

Workforce Reposition Status Quo

Scenario: Reposition to Workforce

• 30 units at 90% AMI

• $700,000 of renovation costs

• Stabilized cash flow: Year 2

o Year 2: $178,000

o Total NPV: $1.300 million

Scenario: Status Quo

• 20 units at 50% AMI

• 10 units at market

• $260,000 of renovation costs

• Stabilized cash flow: Year 2

o Year 2: $102,000

o Total NPV: $780,000


Page 5

Exhibit B

Rent Comparison by Development

12AA(1)

Park Hill(2)

Broadcast

Apts. Pike

Motorworks

Studio $883 $1,472 n/a from $1,931

1 Bed $955 $1,580 from $2,125 from $2,491

2 Bed $1,121 $1,879 from $3,700 from $3,440

3 Bed n/a $2,141 n/a n/a

1) 12AA rents reflect 60% AMI restrictions, net of utility allowance

2) Rents for Park Hill reflect affordability at 90% AMI, net of utility allowance

3) “Private” rents reflect average of Broadcast and Pike Motorworks

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Studio 1 Bed 2 Bed 3 Bed

Rent Comparison by Unit Type

12AA Park Hill Private


Page 6

Exhibit C

Park Hill Demographic Summary

Average member count per unit 2

Head of household average age 47

Dependents average age 12

Average resident tenure 8 years

Disabled residents 4

Elderly residents 5

Average bedroom sq. ft. 965

Average income (restricted units) $27,961

Average restricted rent (net of utility allowance) $840

Qualified low-income units 16

Over-income qualified units 4

Market rate units 10


SECTION 6:

Resolution No. 2018-03:

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CHH Board Resolution 2018-03

Overview: Authorization of new rent levels at Park Hill

Purpose: To allow staff to set rents at Park Hill between 60 and 120% of Area Median Income.

Type of Resolution/Motion:

o Is this a formal resolution? ☒ Yes ☐ No

o Are we requesting a motion from the floor? ☒ Yes ☐ No

o Has this resolution been presented to a Board Committee?: ☒ Yes ☐ No

o If so, which committee or committees?: Discussed with the Finance and Asset Management

Committee

Charter or Rules and Regulations Modification:

o Does this Resolution change the Charter or Rules and Regulations? ☐ Yes ☒ No

o If yes, you need to give notice to the Board 15 days prior to the proposed change.

o Changes to the Charter or Rules and Regulations must use the strike out format so change is clear to

reader.

General Description and Purpose: Requesting authorization to change rent levels at Part Hill to be

affordable to households making between 60 and 120% of the Area Median Income.

Organizational requirements of resolution: No new requirements.

Financial cost of the resolution: Relocation of existing residents estimated to cost $84,000 to be paid by

new loan.

Pros: Help meet the need for workforce housing on Capitol Hill. Will strengthen the financial position of

the organization. Will address capital needs of the building. Will mitigate exposure to increased real

estate taxes.

Cons: Will result in loss of 20 apartments with rents at 50% of the Area Median Income.

Further Board Action or Reporting:

o Is further action required from the Board or a Board Committee? ☐ Yes ☒ No

o Is further reporting required to the Board or a Board Committee? ☐ Yes ☒ No

If yes, please describe:




1

RESOLUTION

ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS

OF

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM,

A WASHINGTON PUBLIC CORPORATION

(Park Hill Apartments Repositioning)

RESOLUTION 2018-03

BACKGROUND

WHEREAS, Capitol Hill Housing Improvement Program, a Washington public corporation (“the

Corporation”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal

Code Ch. 3.110. As such, it is a political subdivision of the State of Washington with an area of operation

focused on the Capitol Hill community of the City of Seattle;

WHEREAS, the purpose of the Corporation shall be to assist homeowner, property owners, residential

tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their

homes, property and neighborhood, and to provide additional housing, cultural, social and economic

opportunities and facilities;

WHEREAS, the Corporation is the owner of a residential apartment project known as Park Hill Apartments

located at 1300 E. Union Street., Seattle, WA 98122 (the “Project”);

WHEREAS, the Project is a 30 unit building and has been operated with 20 units affordable to persons

who make 50% of the Area Median Income and 10 units have been unregulated;

WHEREAS, the Corporation desires to reposition the property to workforce housing with rents between

60 and 120% of the Area Median Income;

WHEREAS, the Corporation will materially benefit from the repositioning of the Project, both as the

project manager, overseeing the rehabilitation and receiving a project management fee and through ownership

of the Project;

WHEREAS, the Corporation deems it to be in the best interest of the Corporation to execute such

documents and to take such actions as may be required to facilitate the repositioning of the Project.

NOW, THEREFORE, BE IT RESOLVED by the Board of the Corporation as follows:

RESOLUTIONS

1. RESOLVED that the Corporation is authorized, empowered and directed to execute and deliver

such documents as may be required for the Corporation to change the affordability levels of rent

charged at the Project..

2. FURTHER RESOLVED that the Corporation is authorized, empowered and directed to undertake

such further acts and to execute and deliver such other documents as may be deemed reasonably

necessary or proper in order to carry into effect any of the provisions of these Resolutions;

provided, however, that no such acts and things shall materially change the economic terms of

the transactions described herein.


2

3. FURTHER RESOLVED that any and all documents hereby authorized to be executed on behalf of

the Corporation are authorized to be executed or taken by any two of the following individuals or

their duly appointed successors (the “Authorized Representatives”):

Name: Title:

Catherine Hillenbrand Chair

Robert Schwartz Vice Chair

Frank F. Alvarado III Secretary

Drew Porter Treasurer

4. Any two Authorized Representatives are authorized, empowered and directed to take such further

action on behalf of the Corporation, as such Authorized Representatives may deem necessary to

effectuate the foregoing.

CERTIFICATE

I, Frank F. Alvarado III, certify that I am the Secretary of Capitol Hill Housing Improvement

Program (the "Corporation) and that the foregoing Resolutions were duly adopted at a meeting of the Board

of Directors of the Corporation held on March 12, 2018, in accordance with the Charter and Rules and

Regulations of the Corporation upon proper notice and at which time a quorum was present and that the

above named officers are officers of the Corporation and occupy the position set opposite their name.

Dated _________________, 2018 By:______________________________

Name: Frank F. Alvarado III

Title: Secratary


SECTION 7:


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Overview: Authorization of New Loan for Park Hill from Banner Bank

Purpose: To obtain new loan with Banner Bank for $1,850,000.



o Are we requesting a motion from the floor? ☐ Yes ☒ No


o If so, which committee or committees?: Discussed with the Finance and Asset Management

Committee




o Changes to the Charter or Rules and Regulations must use the strike out format so change is clear to

reader.

General Description and Purpose: Proceeds from this loan will be used to retire existing debt and fund

capital improvements to the building.

Organizational requirements of resolution: No new requirements.

Financial cost of the resolution: Loan fee of 1% and ongoing interest and principal payments paid from

building cash flows.

Pros: Pay off maturing debt and fund capital improvements at the building.

Cons: Will require payment of prepayment penalty of approximately $67,000 on Chase loan .


o Is further action required from the Board or a Board Committee? ☐ Yes ☒ No

o Is further reporting required to the Board or a Board Committee? ☐ Yes ☒ No

If yes, please describe:




1

RESOLUTION

ADOPTED AT A MEETING OF


OF



(Park Hill Apartments Financing)

RESOLUTION 2018-04

BACKGROUND

WHEREAS, Capitol Hill Housing Improvement Program, a Washington public corporation (“the

Corporation”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal

Code Ch. 3.110. As such, it is a political subdivision of the State of Washington with an area of operation

focused on the Capitol Hill community of the City of Seattle;

WHEREAS, the purpose of the Corporation shall be to assist homeowner, property owners, residential

tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their

homes, property and neighborhood, and to provide additional housing, cultural, social and economic

opportunities and facilities;

WHEREAS, the Corporation is the owner of a residential apartment project known as Park Hill Apartments

located at 1300 E. Union Street., Seattle, WA 98122 (the “Project”);

WHEREAS, the Corporation desires to pay off a loan with the City of Seattle and a loan with Chase Bank

that encumber the Project;

WHEREAS, the Corporation desires to renovate the Project to extend its useful life with proceeds from a

construction phase loan (“Construction Phase Loan”) and a term loan (“Term Loan”) in the amount of up to

$1,825,000 from Banner Bank (the “Bank”) to be secured by the Project. The Construction Phase Loan together

with the Term Loan shall be the “Banner Loan”.

WHEREAS, a condition of the Banner Loan to the Corporation is that the Corporation guaranty the

Construction Phase Loan and certain nonrecourse carve-outs under the Term Loan and further execute and

deliver the Hazardous Waste Warranty and Indemnification Agreement.

WHEREAS, the Corporation will materially benefit from the renovation of the Project, both as the project

manager, overseeing the rehabilitation and receiving a project management fee and through continuing to serve

as the property manager and owner of the Project;

WHEREAS, the Corporation deems it to be in the best interest of the Corporation to execute such

documents and to take such actions as may be required to facilitate the closing of the Banner Loan.

NOW, THEREFORE, BE IT RESOLVED by the Board of the Corporation as follows:

RESOLUTIONS

1. RESOLVED that the Corporation is authorized, empowered and directed to execute and deliver

such documents as may be required for the Corporation to guaranty the Construction Phase Loan

and the nonrecourse carve-outs under the Term Loan, including but not limited to the Commercial


2

Guaranty, substantially in the form attached hereto and the Hazardous Waste Warranty and

Indemnification Agreement.

2. FURTHER RESOLVED that the Corporation is authorized, empowered and directed to undertake

such further acts and to execute and deliver such other documents as may be deemed reasonably

necessary or proper in order to carry into effect any of the provisions of these Resolutions;

provided, however, that no such acts and things shall materially change the economic terms of

the transactions described herein.

3. FURTHER RESOLVED that any and all acts authorized pursuant to these Resolutions and

performed prior to the passage of these Resolutions are hereby ratified and affirmed, that these

Resolutions shall remain in full force and effect and the Bank may rely on these Resolutions until

written notice of their revocation shall have been delivered to and received by the Bank. Any such

notice shall not affect any of the Corporation's agreements or commitments in effect at the time

notice is given.

4. FURTHER RESOLVED, Corporation has considered the value to itself of the Banner Loan to

Borrower, and the Corporation represents to the Bank that the Corporation is benefitted by the

Banner Loan.


the Corporation are authorized to be executed or taken by any two of the following individuals or

their duly appointed successors (the “Authorized Representatives”):

Name: Title: Signature:

Catherine Hillenbrand Chair ____________________

Robert Schwartz Vice Chair ____________________

Frank F. Alvarado III Secretary ____________________

Drew Porter Treasurer ____________________

6. Any two Authorized Representatives are authorized, empowered and directed to take such further

action on behalf of the Corporation, as such Authorized Representatives may deem necessary to

effectuate the foregoing.

CERTIFICATE

I, Frank F. Alvarado III, certify that I am the Secretary of Capitol Hill Housing Improvement

Program (the "Corporation) and that the foregoing Resolutions were duly adopted at a meeting of the Board

of Directors of the Corporation held on March 12, 2018, in accordance with the Charter and Rules and

Regulations of the Corporation upon proper notice and at which time a quorum was present and that the

above named officers are officers of the Corporation and occupy the position set opposite their name.

Dated _________________, 2018 By:______________________________

Name: Frank F. Alvarado III

Title: Secretary


SECTION 8:


Entry Into and

Management of Bonanza

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Overview: 18th/Ponderosa/El Nor Re- syndication aka “Bonanza”

Purpose: Allow CHH to become manager of Bonanza GP LLC entity. Allow the partnership to acquire the

property. (As well as allow CHH to become the interim Limited Partner)



o Are we requesting a motion from the floor? ☐ Yes ☒ No


If so, which committee or committees?: Property Development Committee




o Changes to the Charter or Rules and Regulations must use the strike out and underline format so

change is clear to reader.

General description and purpose: This is a companion resolution to a resolution adopted by CHDA that

authorizes the creation of the ownership entities for the syndication project. This resolution authorizes

CHH to be the manager of the LLC become the initial Limited Partner of the LLLP and to allow for the

Partnership to acquire the properties.

Organizational requirements of resolution: None

Financial cost of the resolution: The cost of filing the resolutions will be a corporation filing fee through

the state of Washington which is $240 per entity. There will also be costs for legal fees for the

preparation and filing of the entities payable at closing.

Pros: Passing the resolution for entity formation allows us to engage HUD review for the re-syndication.

Cons: None.


o Is further action required from the Board or a Board Committee? ☒ Yes ☐ No

If yes, please describe: Property development committee will continue to discuss the re-syndication

and there will be future board votes around this re-syndication/refinancing effort.

o Is further reporting required to the Board or a Board Committee? ☒ Yes ☐ No

If yes, please describe: Property development committee will continue to discuss the re-syndication.




1

RESOLUTION ADOPTED AT A MEETING OF


OF



(Resyndication)

RESOLUTION 2018-05

WHEREAS, Capitol Hill Housing Improvement Program, a Washington public corporation

(“CHH”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal Code

Ch. 3.110;

WHEREAS, the purpose of CHH shall be to assist homeowner, property owners, residential tenants

and residents of the Capitol Hill community and such other communities as may be approved by the Board, in

preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide

additional housing, cultural, social and economic opportunities and facilities;

WHEREAS, CH Development Association, a Washington nonprofit corporation (“CHDA”), was

organized to support and carry out the purposes of CHH.

WHERAS, CHH is the current owner of real property located at 1532 18th Avenue, Seattle,

Washington (“1532 Site”), and is the sole member of Ponderosa at Madison LLC, a Washington limited

liability company, which is the owner of real property located at 1600 18th Avenue (“1600 Site”). CHH is

also the general partner of El Nor Limited Partnership, a Washington limited partnership, which is the

owner of real property located at 117 18th Avenue, Seattle, Washington (“117 Site”). The 1532 Site, the

1600 Site, and the 117 Site are collectively referred to herein as the “Property”.

WHEREAS, CHH desires to participate in the development and rehabilitation of the Property as low

income housing (the “Project”) and will serve as the developer of the Property.

WHEREAS, CHDA desires to form Bonanza GP LLC, a Washington limited liability company (the

“Company”) of which CHH will serve as the manager of the Company and CHDA will serve as the member

of the Company.

WHEREAS, CHDA desires to form Bonanza LLLP, a Washington limited liability partnership (the

“Partnership”), to own and operate the Project. CHH will serve as the initial limited partner of the Partnership

and the Company will serve as the general partner of the Partnership.

WHEREAS, the Board of CHH deems it to be in the best interest of CHH to take all actions reasonably

necessary to (i) serve as a developer of the Property; (ii) serve as the manager of the Company; and (iii) act as

the initial limited partner of the Partnership.

NOW, THEREFORE, BE IT RESOLVED by the Board of CHH as follows:


2

RESOLUTIONS

1. RESOLVED that CHH in its individual corporate capacity is authorized, empowered and directed

to serve as the Manager of the Company and to enter into, execute, and deliver all such documents

as may be required or advisable to be admitted to the Company;

2. RESOLVED that CHH in its individual corporate capacity is authorized, empowered and directed

to serve as the initial limited partner of the Partnership and to enter into, execute, and deliver all

such documents as may be required or advisable to be admitted to the Partnership;

3. RESOLVED that CHH in its capacity as the Manager of the Company, and as the Initial Limited

Partner of the Partnership, is authorized, empowered and directed to execute and deliver such

documents as may be required for the Partnership to acquire the Property;

4. FURTHER RESOLVED that CHH is authorized, empowered and directed to undertake such

further acts and to execute and deliver such other documents either in its individual corporate

capacity or as the manager of the Company, and/or as the Initial Limited Partner of the Partnership,

as may be deemed reasonably necessary or proper in order to carry into effect any of the

provisions of these Resolutions;

5. FURTHER RESOLVED that any and all acts authorized pursuant to these Resolutions and

performed prior to the passage of these Resolutions are hereby ratified and affirmed,


CHH are authorized to be executed or taken by any one of the following individuals or their duly

appointed successors (the “Authorized Representatives”):

Name: Title: Signature:

Catherine Hillenbrand Chair ____________________

Robert Schwartz Vice Chair ____________________

Frank F. Alvarado III Secretary ____________________

Drew Porter Treasurer ____________________

Chris Persons Chief Executive Officer __________________

7. Any one Authorized Representative is authorized, empowered and directed to take such further

action on behalf of the Corporation, as such Authorized Representative may deem necessary to

effectuate the foregoing; and

8. All acts taken by CHH prior to the date hereof and in furtherance of the foregoing are hereby

ratified and affirmed.


3

CERTIFICATE

I, ________________, certify that I am the ___________of Capitol Hill Housing Improvement

Program (“CHH”) and that the foregoing Resolutions were duly adopted at a meeting of the Board of

Directors of the Corporation held on __________________, 2018, in accordance with the Charter and Rules

and Regulations of the Corporation upon proper notice and at which time a quorum was present and that

the above named officers are officers of the Corporation and occupy the position set opposite their name.

Dated _________________, 2018 By:______________________________

Name: ___________________________

Title: _____________________________




SECTION 9:

Convention Center

Term Sheet SEC

TIO

N 8

SE

CTI

ON

9










SECTION 10:

Rebranding Consultant

SEC

TIO

N 8

SE

CTI

ON

10




PROJECT PROPOSAL

Research, Messaging, Visual Identity, Website


1 / 08 / 2018


ABOUT DEI

SMALL BUT MIGHTY

DEI Creative is a boutique graphic and interactive firm located in the heart of Seattle. Recognized for award-winning design, DEI is a fiercely creative family of designers, developers, and producers who love bringing brands to life.

Over the years DEI has had the opportunity to work on a wide variety of projects, but our niche is certainly in the development of brand identities, print collateral, and websites for community-focused companies and products—from residential and commercial developments, to neighborhood organizations, to the iconic Pike Place Market. We understand that effective design is about storytelling, and take pride in our ability to design befitting, innovative, print and interactive tools that truly connect with the intended audience.

Furthermore, while approaching each project with over a decade of experience, we believe that it is our collaborative creative process that sets us apart. Because we are a small firm (by design), we are flexible. And we have found that good relationships and communication with our clients results in the highest level of work.

To learn more about DEI, including bios of our team members and the services we offer, we encourage you to check out our website at DEICreative.com


SAMPLE WORK Pike Place Market Foundation Brand development, website content strategy, design and development, print and advertising design. pikeplacemarketfoundation.org

Pike Place Market Gift Guide Messaging, brand development, website content strategy, design and development. pikeplacemarket.org/giftguide

Pike Place Market Marketfront Campaign Messaging, brand development, print and advertising design. deicreative.com/project/holy-mackerel

Choice Teas Website content strategy, design and development. choiceorganicteas.com

Mithun Website content strategy, design and development. mithun.com

Under One Roof Brand development, website content strategy, design and development, print design. seattle.gov/underoneroof

Under One Roof Brand development, website content strategy, design and development, print and advertising design visitballard.com

Relay Website content strategy, design and development, print design. relayrestaurantgroup.com

Seattle Cider Company Brand development, website content strategy, design and development, print and advertising design. seattlecidercompany.com


SAMPLE WORK


SECTION 11:

Returning Board Members

and

Slate of Officers

SE

CT

ION

8

SE

CT

ION

11




April 2018 Slate of Officers Rob Schwartz Chair Drew Porter Vice Chair Frank Alvarado Treasurer Derrick Belgarde Secretary Cathy Hillenbrand Previous Chair Returning Board Members (whose terms expire in April) Cathy Hillenbrand 4th Term Drew Porter 3rd Term Rob Schwartz 3rd Term b.g. Nabors-Glass 2nd Term Eric Snow 2nd Term (Mayoral Appointment)




SECTION 12:

Consent Agenda

and

Attachments

SEC

TIO

N 8

SE

CTI

ON

12




CAPITOL HILL HOUSING REGULAR MEETING March 12, 2018

6:00 – 7:30 PM Regular Meeting 12th Ave Arts Pike Pine Meeting Room


CONSENT ITEMS

MINUTES AND REPORTS 1. February 2018 Draft Board Meeting Minutes (attached for adoption) 2. Tenant Communications Tracking (attached for review) 3. Committee Reports and Minutes (attached for acceptance) 4. 2018 Board Calendar (attached for acceptance)

DONATIONS, TRANSACTIONS OVER $10,000 OR 1-YEAR, AGREEMENTS WITH PUBLIC ENTITIES

None.




CHH Board Minutes February 2018 1

REGULAR BOARD MEETING MINUTES Pike-Pine Room


February 12, 2018 Members Present: Frank Alvarado, Derrick Belgarde, Paul Breckenridge, Bob Fikso, Chasten Fulbright, Cathy Hillenbrand, Drew Porter, Alice Quaintance, Rob Schwartz Members Absent: Dana Behar, Rachel Ben-Shmuel, Shalimar Gonzales, Michael Malone, b.g. Nabors-Glass, Eric Snow, Selomé Teshome Staff Present: McCaela Daffern, Jill Fleming, Greg Gibson, Michelle Lambert, Dylan Locati, Stacey McQuade, Chris Persons, Michael Seiwerath, Sarah Shoemake (taking minutes), Joel Sisolack, Heyward Watson, Jeremy Wilkening The meeting was called to order by Cathy Hillenbrand at 6:00 pm. Board and staff members introduced themselves and noted something they would do if they had all the time in the world. Cathy asked the Board if there were any requests to pull items from the Consent Agenda before voting. A motion to approve the Consent Agenda was made by Frank F. Alvarado III, seconded by Bob Fikso, and passed unanimously. Call for Nominations: Cathy gave an update on the Call for Nominations for the Emerging Leader Fellow position, which was distributed in mid-January. She noted that the deadline was extended to Friday, March 30th in an attempt to gain a larger applicant pool. Sarah will email the updated Call for Nominations to the full Board to continue to distribute. Disclosures and recusals: Frank F. Alvarado III abstained from voting on Resolution 2018-02: Authorization to enter into MOU with YouthCare (South Annex), due to a potential conflict of interest. Mission moment: Frank was chosen for the mission moment, and briefly explained why the CHH mission is important to him. He noted that he connects to and deeply believes in our mission because he experienced homelessness as a child. He appreciates that our services engage and support our residents beyond giving people a place to live, with the assistance of Resident Services. Public comment: There were no members of the public present.



Presentation and Discussion The Impact of Deep Partnerships: Chris presented on our deep partnership work in the community. Joel Sisolak and McCaela Daffren from the EcoDistrict were invited to the meeting to answer specific questions regarding our sustainability work. Chris reminded the Board that community development work and partnering in community is deeply embedded in the culture and core purpose of Capitol Hill Housing. This work has expanded in recent years both in depth of partnering and geography. Chris explained that there are hard costs associated with these partnerships, for which it is difficult to find funding. Some costs include extended work with WMBE consultants and creating a new “Community Liaison” staff position. Chris mentioned that we will have a deeper conversation regarding this topic at the upcoming Board Retreat. The Park Hill Repositioning Introduction: Chris presented on the Park Hill, which is a Capitol Hill building with 30 units that CHH has owned since 1986. The building has ten units that are rented at “sub-market” rents (between market and 60% affordable). Staff proposes transitioning all of the Park Hill units to submarket units consistent with the 2006 Use of Physical Assets policy and 2014 Disposition procedures. This transition meets the need for workforce housing, generates capital for deferred maintenance, and generates revenue to support other CHH priorities. There will be a resolution at the March Board meeting regarding this project. Various Board members asked questions about the specifics of the transition. Chris, Jill, and Dylan answered questions and reminded the Board that we previously went through similar processes with the Tiltsonian and Elizabeth Dean Wells buildings. No tenants will be involuntarily displaced. Convention Center Expansion: Chris explained that CHH has been part of the Community Package Coalition, a group of small community organizations negotiating public benefits related to the multibillion dollar Convention Center expansion project. McCaela has put in a tremendous amount of work to secure funding from the developer for 519 affordable units for people below 65% AMI (equaling $29 million). A term sheet was executed late last year and CHH was a signatory on that document. Chris noted that we have, somewhat surprisingly, been asked to sign a contract formalizing the term sheet. Although we are reluctant to execute a formal contract, we are reviewing it and wish to introduce the matter to the Board in case we need to request formal approval at the March Board meeting.

Finance and Asset Management

Finance and Asset Management Report: Greg and Drew presented the FAM Report and dashboard through December 2017. Greg explained that we finished the year with a surplus of $412,000, which exceeded the budgeted operating surplus by $335,000. Greg mentioned that the Board will be asked to adopt the annual capital budget at the March Board meeting. He reported that the State Auditor presented the 2016 accountability audit. It was a clean audit with no findings. A management letter was issued regarding a one-time bonus of $125 paid to all employees in 2016.



Greg noted that audit season has begun and is going well. He plans to schedule Audit Committee meetings adjacent to the March and May FAM Committee meetings. A motion to approve the February Finance and Asset Management Report was made by Drew Porter, seconded by Frank F. Alvarado, III, and passed unanimously. Resolution 2018-01: Authorization of Line of Credit from Banner Bank: Greg explained that the resolution will renew an existing operating line of credit with Banner Bank for $500,000. This is the organization’s normal operating credit line, and none of the terms changed. A similar resolution has been passed the last few years to renew the line of credit. The interest rate floats at prime. A motion to approve Resolution 2018-01: Authorization of Line of Credit from Banner Bank was made by Rob Swartz, seconded by Drew Porter, and passed unanimously.

Property Management Presentation

Property Presentations: Heyward presented on the following properties: Jefferson, Squire Park Plaza, and Union James. He noted the size of the buildings, the AMI make up, resident demographics, and current issues.

Executive Committee and Governance

Updates on rebranding and partnership discussions: Chris and Michael gave an update on rebranding, and noted that we are in the process of interviewing firms. Per RCW 42.30.110(b), the CHH Board entered into an executive session to consider the acquisition of real estate when public knowledge of such consideration would cause a likelihood of increased price. The session began at 7:19 pm. The Board exited the executive session at 7:21 pm.

Real Estate Development

Resolution 2018-02: Authorization to enter into MOU with YouthCare (South Annex): Jeremy reminded the Board that CHH was asked to participate in this project as the affordable housing developer. The site is currently owned by Seattle Central College. The deal could create up to 50 units of housing and will support a small number of beds and services for homeless youth, run by YouthCare. This is an initial resolution to enter into an MOU with Youth Care. A motion to approve Resolution 2018-02: Authorization to enter into MOU with YouthCare (South Annex) was made by Chasten Fulbright, seconded by Paul Breckenridge, and passed unanimously. The meeting was adjourned by Cathy Hillenbrand at 7:35 pm.



Attested, ________________________________________ Frank F. Alvarado III, Secretary March 12, 2018


Tenant Communications Tracking

February 2018

Building Issue Status Resolution

Cal Anderson Slow Maintenance

Responses

Open: Slow maintenance response: common area lights out including parking lot light, upstairs neighbor's toilet running, fire alarm testing, revocation of permission to enter for reschedule of unit's annual inspection on 12/15/17, HVAC vents are not clean (photo provided), heaters only get warm; not hot and thermostat is only on/off switch.

12th AA Wants CHH to enforce non-

smoking policy

Open: Resident made a request on May 5, 2017 to have CHH enforce a non-smoking policy, remove all chemical air fresheners from the common spaces, and permit resident hallways windows to stay permanently open to increase airflow. CHH in an earlier letter let the resident know that hallway fans would be installed. Resident has purchased an air filter machine and mask at her discretion without approval or consent from CHH. Portfolio Manager will respond to this request and unauthorized purchase. Sr. Director of PM will investigate ADA rules around smoke from outside the building and CHH responsibility.

Broadway Crossing Contesting charges

for lock replacement

Open: Notice will be sent to Residents concerning funds owned for locks replaced by July 15, 2017. 1/23/2017 - tenant served 10-day for balance owed for broken locks from 12/2015 ($608.95). 12/9/2015 - Tenant indicated to HA that they would be filing a grievance with Heyward. 10/11/2016 - Tenant served 10-day for payment of damages. Residents have not submitted a grievance for lock charges as of 3/09/2017. Letter sent offering to settle all charges for $411.00 5/3/2017.




MARCH 2018 PROPERTY MANAGEMENT BOARD REPORT AND MINUTES

Property Management Committee Members: B.G. Nabors-Glass, Chasten Fulbright, Derrick Belgarde Staff Liaisons to the Board: Heyward Watson, Dianne Moreland (BOLD indicates those members in attendance)

Date, time and location of meeting: March 6, 2018 -1:00 – 2:00 PM Belmont Conference Room Date, time and location of next meeting: April 3, 2018 -1:00 –2:00 PM Belmont Conference Room

Current Capital Projects in Process/Pending:

• Villa Apartments: The design work for installation of commercial water meters and cost estimates are completed. The Project Approval will be presented at the next available Operations Meeting for approval followed by the release of RFP for the project. Latest Update: Bids to install water meters for commercial tenets to let by March 23rd.

• Haines: The building is scheduled to replace piping and fixtures for all 30 bathrooms in the building that was originally built in 1905. The building went through kitchen renovations back in 2014. The piping project is scheduled to last 5 months. CHH has contractor on board, as well as an architect and is waiting for the financial approval form the lender. Update: Partial financing has been approved by Chase and further gap financing is being sought through Asset Management. Work started on the bathroom pumping stacks on 1/8/18. Work is being performed stack by stack and work on each stack will take approximately 5 weeks. There are five pumping stacks. Latest Update: The bathroom repumping is schedule and budget and should be completed by the end May 2018.

• The Bremer: The rebuilding of approximately 20 cast concrete window sills began on December 04, 2017.The work shall be completed within two months (weather permitting). The completion of the project will reduce water intrusion and increase the safety of our tenants that are danger of the crumpling window sills. As the numbers on the Bremer are coming in the costs have risen to $115,000 for the overall project costs: Therefore, the building project approval will be resubmitted to the OPS Teams. The Bremer window sill replacement project is moving forward as planned. However, additional window headers will be added to the scope of work. Latest Update: The window sill replacement project is on schedule and should be completed before April 30th.

Resident Services Activity for January 2018 Resident Services Events (HUD)

• 12 events Kelley Ross Senior Drug Education Program

• 2 Oral Health Presentations

• 18 total participants Service Referrals

• 29 Referrals Non-Referral Check-ins (Relationship Building)

• 18 RSC meetings with residents Rental Assistance

• 20 residents applied for rental assistance • 13 residents attended the Financial Fitness Workshop • 12 residents received rental assistance


Third Party Management

• CHH is in continued discussions with SHA in response to their RFP for property management services for Bayview Tower. We are moving forward with transitioning the management to CHREMS with a new target date of April 1, 2017. In process of negotiating the management fee with SHA. The target date for transitioning the property management to CHREMS is now July 1, 2017. CHH has received a draft LOI from SHA and continues to negotiate several points. Update: CHH has signed Letter of Interest with Seattle Housing Authority for management of Bayview and returned LOI to SHA for final approval. Update: CHREMS and SHA has a signed LOI for management of Bayview Tower with transition tentatively set for September 1, 2017. Update: The tentative date for CHH to assume management of Bayview Towers is October 1, 2017. Update: The tentative date for CHH to assume management of Bayview Tower in now November 1, 2017 due SHA slow processing. Update: The management transition of Bayview Tower to CHH by November 1st is questionable. It appears that January 1, 2018 is a more probable date. Update: CHH has informed SHA that transition of Bayview Tower will occur on January 1, 2018 at the earliest. Update: CHH has notified SHA that commencement of property management activities for Bayview Tower will not start until renewal of the HAP Contract is approved by HUD, HUD grants approval of the Management Agreement and Management Plan between CHH and SHA. The estimated date for commencement of Property Management duties for Bayview Tower is May 1, 2018. Latest Update: Awaiting Seattle Housing Authority signature on HUD Approval Agreement.

• CHREMS: No additional updates currently. Building Operations From the Finance report: Year to date December 31, 2018 Blended Operating Statement. In summary:

• Portfolio YTD vacancy is 2.5%.

• 12 month rolling vacancy is 2.2%

• January monthly snapshot vacancy is 2.5%

Facilities: MSP Update Report:

This report represents work orders by classification completed January 2018 year to date and compared to previous year.

Work Order Classification: 2018 2017 Compared: EMERGENCY 118 156 INSPECTION 229 239 PREVENTATIVE 12 3 ROUTINE 94 96 TENANT REQUEST 319 249 UNIT TURN 49 40

Totals: 821 756


Leasing & Occupancy Board Report Information: 1/1/2018 – 1/31/2018

Phone Calls

Phone calls 120

On average calls last 5-20 minutes. Estimated time spent returning calls:

Estimated Minutes per Month hours Work Days

Low 5 mins. 600 10 1.25

High 20 mins 2,400 40 5

Front Desk

Signed in 87

Denials and Withdrawals

Denials 19

Withdrawals 5

60 days or > Vacancy Non-HUD

Building Average # of Units to-date

Reason

Bremer 112 1 Water damage caused by upper unit.

Brewster 92 1 First applicant no-show, two denials; one over income, relisted. Carpet replaced.

Broadway Crossing 66 1 Over-income.

Fleming 71 1 Mutual termination of unit due to consistent late rent.

Squire Park 64 1 Rec’d app and override by Scott P; will swap to be in compliance. Reposted; unit cleaned; blinds measured, carpets cleaned; launched. Hold unit for staff

Squire Park 60 3 Unit painted and relaunched at market rate.

Unity Village 77 2 Hard unit turn. Replaced carpet and cabinets, repainted. Eviction due to consistent late payments. New Site Manager. Unit cleaned, carpet replaced, and full unit turn; launched. Tenant received housing voucher that did not cover that bldg./unit and gave notice.

60 days or > Vacancy HUD

Building Average # of Units to-date

Reason

18th Ave. 97 1 2 new name ups sent. One refusal, one unable to contact, one pending viewing. Previously, 15 name-ups sent. Hard turn; Replaced flooring, countertops, and range.

Haines 331 1 New move in 2/28. Three denials. Unit placed on hold. 59 name ups sent.

Mary Ruth Manor 169 1 13 name ups sent, 4 denials, 1 withdrawal. Hard unit turn, including blinds, lighting, toilet, flooring, carpet, and cabinets.

*Applicants have 72 hours to enter in to a lease agreement, move-in must occur within 14 days.





Property Management Dashboard

Year to Date at January 31, 2018

Blended Component Units:

Total

Units Actual Budget Var % Actual Budget Var % Actual Budget Variance

Berneva Colby 12 818 779 5% 777 700 -11% 37 45 8.5% 2.1% 8.5% 1.4% (624) (154) (470)

Boylston Howell Colby 30 891 947 -6% 767 725 -6% 8 39 0.2% 0.8% 0.2% 0.8% 2,903 5,818 (2,915)

Bremer Asia 49 765 766 0% 657 513 -28% 13 52 2.0% 2.6% 2.0% 2.6% (3,876) 3,260 (7,136)

Brewster Colby 35 752 705 7% 444 516 14% 17 78 3.0% 6.5% 3.0% 6.8% 8,600 4,434 4,166

Broadway Colby 5 1,125 1,076 4% 671 625 -7% 0.0% 0.0% 0.0% 0.2% 1,095 1,084 11

Burke Gilman Gardens Dianne 15 1,105 1,052 5% 686 745 8% 13 24 0.0% 0.7% 0.0% 0.7% 5,661 3,989 1,672

Byron Wetmore Colby 12 953 962 -1% 602 829 27% 54 0.0% 1.1% 0.0% 1.1% 3,632 1,018 2,614

Casa di Cinque Dianne 5 1,387 1,347 3% 581 781 26% 0.0% 0.0% 0.0% 0.0% 2,730 1,254 1,476

Centennial Scott B. 30 946 1,008 -6% 547 496 -10% 15 42 7.0% 2.8% 7.0% 2.7% 1,465 4,870 (3,405)

Devonshire Scott B. 62 807 794 2% 528 564 6% 19 49 0.1% 1.9% 0.1% 2.3% 8,845 5,800 3,045

Eighteenth Avenue Dianne 9 1,015 1,136 -11% 848 780 -9% 97 96 11.7% 3.3% 11.7% 2.5% (2,197) (497) (1,700)

El Nor Asia 55 888 893 -1% 1,028 776 -32% 25 71 2.3% 3.0% 2.3% 2.8% (17,754) (3,616) (14,138)

Elizabeth James Scott B. 60 860 855 1% 603 583 -3% 17 53 1.7% 1.5% 1.7% 1.5% 2,646 2,117 529

Fleming Asia 36 730 786 -7% 489 532 8% 57 8.5% 0.9% 8.5% 0.3% (1,506) (1,010) (496)

Four Ten Colby 6 816 784 4% 523 528 1% 4 23 0.0% 1.5% 0.0% 1.8% 926 704 222

Four Twelve Colby 12 1,345 1,289 4% 871 927 6% 0.0% 0.0% 0.0% 0.6% 4,400 1,606 2,794

Fredonia Dianne 12 2,488 2,454 1% 774 1,034 25% 11 29 0.0% 2.0% 0.0% 2.0% 14,279 10,746 3,533

Gilman Court Valencia 25 1,159 1,146 1% 855 884 3% 10 49 0.0% 0.8% 0.0% 1.1% 6,256 5,217 1,039

Harrison at 15th Colby 19 1,914 1,881 2% 940 947 1% 0.0% 0.2% 0.0% 0.1% 7,750 6,979 771

Hazel Plaza Scott B. 16 2,205 2,124 4% 842 773 -9% 0.0% 0.2% 0.0% 0.2% 9,908 9,934 (26)

Holden Vista Asia 16 1,202 1,202 0% 974 935 -4% 84 6.2% 6.0% 6.2% 5.5% 3,058 3,685 (627)

Joe Black Apartments Colby 24 1,159 1,129 3% 1,370 1,011 -35% 0.0% 1.4% 0.0% 1.7% (8,421) (536) (7,885)

John Carney Asia 27 734 717 2% 480 544 12% 9 68 0.0% 1.4% 0.0% 1.4% 3,384 1,204 2,180

Larned Asia 33 932 902 3% 571 628 9% 9 32 0.0% 1.9% 0.0% 1.9% 10,107 7,219 2,888

Lincoln Court Colby 29 848 846 0% 512 526 3% 7 58 1.6% 2.1% 1.6% 2.3% 1,167 704 463

Mary Ruth Manor Scott B. 20 1,894 1,987 -5% 855 903 5% 23 114 4.0% 2.9% 4.0% 3.6% 5,352 6,240 (888)

Maxwell Colby 4 971 947 3% 573 624 8% 0.0% 0.0% 0.0% 0.4% 1,086 787 299

Melrose Colby 30 741 758 -2% 548 722 24% 11 45 4.9% 1.7% 4.9% 1.8% 2,590 (2,107) 4,697

Miller Park Dianne 12 1,035 1,006 3% 846 717 -18% 11 45 0.0% 1.0% 0.0% 1.6% (476) 731 (1,207)

Park Hill Scott B. 30 1,256 1,203 4% 666 782 15% 29 68 0.0% 3.8% 0.0% 3.8% 12,365 7,301 5,064

Ponderosa Dianne 23 777 771 1% 640 627 -2% 0.0% 0.1% 0.0% 0.1% 1,936 2,109 (173)

Seneca Colby 32 898 911 -1% 700 744 6% 28 0.0% 0.2% 0.0% 0.2% 1,190 192 998

Union James Dianne 24 222 480 -54% 270 305 12% 23 83 7.0% 6.7% 7.0% 6.9% (1,902) 1,363 (3,265)

Villa Valencia 62 1,013 1,018 -1% 567 646 12% 26 54 2.1% 1.5% 2.1% 1.4% 8,150 3,605 4,545

94,725 96,050 (1,325)

Discrete Component Units:

Broadway Crossing Scott B. 44 864 950 -9% 781 798 2% 51 75 0.0% 0.5% 0.0% 1.7% (2,428) 571 (2,999)

Fremont Solstice Valencia 18 938 958 -2% 493 843 42% 10 26 0.0% 0.4% 0.0% 0.4% 2,397 (3,087) 5,484

Haines AAA Dianne 30 895 948 -6% 758 858 12% 55 137 7.8% 3.7% 7.8% 3.5% (19,572) (4,209) (15,363)

Helen V Scott B. 38 1,502 1,516 -1% 816 725 -13% 16 95 5.0% 3.3% 5.0% 3.7% 14,810 18,786 (3,976)

Holiday Scott B. 30 959 966 -1% 766 592 -29% 29 73 3.1% 1.4% 3.1% 1.9% (5,038) 365 (5,403)

Jefferson Housing Dianne 40 1,050 1,117 -6% 797 778 -2% 16 43 4.9% 1.0% 4.9% 0.6% (6,459) (3,019) (3,440)

Oleta Colby 34 810 793 2% 510 577 12% 35 60 0.8% 3.2% 0.8% 3.4% 1,506 (1,351) 2,857

Pantages Scott B. 49 863 875 -1% 863 694 -24% 18 37 0.0% 0.7% 0.0% 0.8% (7,674) 1,260 (8,934)

Silvian Valencia 32 1,014 980 3% 646 714 10% 16 77 0.0% 0.4% 0.0% 0.5% 1,895 (1,377) 3,272

Squire Park Plaza Valencia 60 1,691 1,666 2% 557 626 11% 17 48 4.6% 4.5% 4.6% 4.5% 26,100 20,460 5,640

Twelfth Avenue Arts Valencia 88 945 946 0% 574 499 -15% 12 36 2.5% 1.4% 2.5% 1.6% 128 6,850 (6,722)

Unity Village Asia 30 799 815 -2% 982 724 -36% 14 83 5.6% 5.5% 5.6% 5.2% (6,577) 1,634 (8,211)

(912) 36,883 (37,795)

Portfolio Totals: 1364 1,378,217 1,389,415 -1% 931,979 916,258 2% 20 57 2.5% 2.2% 2.5% 2.3% 93,813 132,933 (39,120)

Portfolio

Manager

12 MO

Rolling 2018 YTD

2017

Vacancy

2018

Jan.

Monthly

YTD 2018

Op expenses B4 Debt

Cost Per Unit

2018 YTD Cash Flow

after debt and reserves

YTD 2018

Income Per Unit

YTD

Avg.

Total

Turn

Days

YTD

Avg.

Make

Ready

Days

M:\Admin\Board\PACKETS\2018 Packets\03.2018\Originals\Committee Reports\FINAL of 01-18-PM dashboard for March board report.xlsx




March 2018 FUNDRAISING AND COMMUNICATIONS MEMORANDUM

To: Capitol Hill Housing Board of Directors CC: Christopher Persons From: Michael Seiwerath

Grants and Donations Recent weeks have again brought significant grant and donation activity. We received commitments of:

• $5,000 from the Muckleshoot Charitable Fund for Resident Services support

• $10,000 from Wells Fargo for general operating

• A February conversation with Cat Martin of the JPMorgan Chase Foundation resulted in a funding commitment which was welcome, but significantly less than Chase’s 2017 commitment, and less than the Foundation had budgeted for the current year. In 2018 JPMorgan Chase will grant CHH a total of $25,000, of which $15,000 will support leadership training with the Pomegranate Center, and $10,000 will support the CHH Annual Community Forum.

CHH and CHHF staff along with partners from Gay City, POCAAN and Entre Hermanos met with representatives of King County Communities of Opportunity during a site visit in support of our consortium proposal for implementing an LGBTQ Health and Resiliency Agenda on Capitol Hill.

Individual giving commitments, including commitments from Board and Staff members total $97,000 to date in 2018. We have received significant sponsorship commitments for all three of our 2018 events – Top of the Town, Omnivorous and the Community Forum. We have received $134,500 in sponsorship commitments for 2018, vs. a total annual goal of $256,000. The Foundation is now at 34.4% of our annual unrestricted fundraising goal.

Capital Campaign In February the capital campaign steering committee selected the campaign name “Rise Together.” This name was selected for its aspirational call to action, and its reference to the well-understood aphorism, “A rising tide lifts all boats.” Pyramid Communications has produced a draft of the Rise Together case for support, and we expect to have the case and logo finalized by mid-April. As part of the campaign objective to build organizational capacity, staff from each Rise Together organization will participate in a group training from the Pomegranate Center on facilitating community engagement in public processes. The two-day training will occur April 30 and May 1. We made important progress on two grant opportunities. The CHH Foundation is acting as the Fiscal Sponsor for Africatown CLT in a recently submitted request to the City Office of Planning & Community Development’s Equitable Development Initiative (EDI) Fund, requesting $1 million


https://www.seattle.gov/opcd/ongoing-initiatives/equitable-development-initiative

in capital funding for Africatown Plaza, and $75,000 in capacity building support for Africatown CLT. The EDI Fund is dedicated to making investments in neighborhoods that support those most in need, with objectives that include advancing economic opportunity; preventing residential, commercial and cultural displacement; and building on local cultural assets. In February CHH Foundation staff and Sherry Collier of the Africatown CLT Board of Directors met with representatives of the Key Bank Foundation. Key Bank has supported our most recent concept paper requesting $250,000 for community development and capacity building in the Central District, and has officially invited CHH and Africatown CLT to apply. The campaign has tabled our consortium request to the Norcliffe Foundation until later this year when a higher percentage of campaign funds have been committed. Events

Top of the Town is set for Thursday May 3 at the Hotel Sorrento. Our keynote speaker will be Ijeoma Oluo, a Seattle-based Writer, Speaker, and Internet Yeller whose work has appeared in The Guardian, The Stranger, New York Magazine, Huffington Post, and more. She is also a columnist at The Seattle Globalist. Her writing covers social justice, misogyny, intersectionality, online harassment, and the Black Lives Matter movement. In 2015 Ms. Oluo was named one of the most influential people in Seattle by Seattle Magazine. Tickets will go on sale shortly, and we encourage Board members to buy their tickets quickly as the event WILL sell out. There are still sponsorship opportunities at most levels. Board members with an interest in sponsoring the event, or those who have connections with organizations that may be interested, should be in touch with Joshua Okrent, [email protected]. The Annual CHH Community Forum is set for Thursday May 24 at the Summit Event Space on Capitol Hill. This year, the Forum asks the question “In a rapidly changing city, what is the role of Capitol Hill in supporting the health and livelihoods of LGBT people?” The event is being produced with multiple partner organizations working in LGBTQ-related fields, will feature speakers from the local LGBTQ community, and will invite attendees to participate in a data walk aimed at connecting abstract data on the neighborhood with people’s lived experience. As always, the Community Forum will be free and open to the public. There are still sponsorship opportunities at all levels. Board members with an interest in sponsoring the event, or those who have connections with organizations that may be interested, should be in touch with Joshua Okrent, [email protected] Save the Date for Omnivorous, on Thursday October 11 at Washington Hall in the Central District. Communications

Major communications activities include:

• Developing materials to support the lease-up process around Liberty Bank Building and preparation for announcement of commercial tenants;

• Managing hiring process for a new Communications Associate and Grant Writer position and developing recruitment video;

• All communications/marketing support for Donor Thank You Event, Top of the Town, Community Forum; potential B-North groundbreaking;

• Communications support for Community Package Coalition.


http://www.ijeomaoluo.com/about

Rebranding We considered 14 firms for our potential rebranding work and ended up getting eight responses to our request for proposals. We narrowed our list down to four final candidates and conducted in-person interviews throughout the month of February. We have selected a firm with which we’d like to partner on the first phase of work, DEI Creative. Phase I work will include an examination of the strengths and weaknesses of our current brand and name, interviews with stakeholders, an electronic survey and recommendations about whether a potential rebrand is necessary.

Here are the outcomes from Phase I which we expect to have before the June 14th Board Retreat.

Outcomes:

• Interviews with CHH stakeholders and others who have gone through the re-brand process

• Recommendations on strengths and weaknesses of current brand & messaging

• Examination of awareness of different aspects of CHH brand (Public Development Authority status, EcoDistrict work, etc.) among key audiences

• Market analysis & comparison to peers and competitors

• Quantitative data points and analysis of this research

• Clear scope and timeline for full re-brand and/or website redevelopment Media Jill Fleming was interviewed by the Daily Journal of Commerce and provides a great overview of our work as well as the landscape for affordable housing in Seattle. We spoke with the Seattle Times and Crosscut about the urgent need for action around unreinforced masonry (URM) buildings. CHH has several buildings that are potential URMs, as we work to identify the scale of necessary retrofits are explaining the challenging situation facing nonprofit developers faced with a mandate to retrofit. Africatown Plaza was highlighted in a story in Geekwire that focuses on the unique partnership with Africatown and Forterra. Plans for a groundbreaking at the Capitol Hill light rail station are beginning to take shape, as reported in CHS Blog. They also reported on the Only in Seattle grant we received which will help support a variety of our community development work in Capitol Hill. Our work on parking usage was cited in Seattle Transit Blog as the City considers greater parking reform.

Date Title Outlet

1-Feb Council diving into citywide mandatory housing affordability program Capitol Hill Times

9-Feb Spring groundbreaking planned for Capitol Hill Station development Capitol Hill Seattle Blog

12-Feb Neighbours alley lined up for ‘pedestrian-friendly, safer’ design Capitol Hill Seattle Blog

15-Feb ‘This is an urgent issue’: Seattle makes little progress on buildings that can kill in earthquakes

Seattle Times

16-Feb Tech investors back novel fund to protect urban land and fight gentrification in Seattle

Geekwire

22-Feb Survey -- Capitol Hill Housing Daily Journal of Commerce

26-Feb Seattle's earthquake-prone affordable housing needs $79M fix Crosscut

26-Feb City Pushes for Apartments Without Onsite Parking Seattle Transit Blog


http://deicreative.com/project/holy-mackerel/

http://deicreative.com/project/holy-mackerel/

http://www.djc.com/news/re/12108604.html

https://www.seattletimes.com/seattle-news/times-watchdog/seattle-makes-little-progress-on-buildings-that-can-kill-in-earthquakes/

https://crosscut.com/2018/02/79-million-dollars-seattle-earthquake-proof-affordable-housing

https://www.geekwire.com/2018/tech-investors-back-novel-fund-protect-urban-land-fight-gentrification-seattle/

http://www.capitolhillseattle.com/2018/02/spring-groundbreaking-planned-for-capitol-hill-station-development/

http://www.capitolhillseattle.com/2018/02/neighbours-alley-lined-up-for-pedestrian-friendly-safer-design/

https://seattletransitblog.com/2018/02/23/city-pushes-apartments-opposed-lack-onsite-parking/

http://www.capitolhilltimes.com/Content/News/News/Article/Council-diving-into-citywide-mandatory-housing-affordability-program/26/337/5492

http://www.capitolhillseattle.com/2018/02/spring-groundbreaking-planned-for-capitol-hill-station-development/

http://www.capitolhillseattle.com/2018/02/neighbours-alley-lined-up-for-pedestrian-friendly-safer-design/





http://www.djc.com/news/re/12108604.html

https://crosscut.com/2018/02/79-million-dollars-seattle-earthquake-proof-affordable-housing

https://seattletransitblog.com/2018/02/23/city-pushes-apartments-opposed-lack-onsite-parking/

2018 Capitol Hill Housing Budget and Actuals

Updated March 5, 2018

Unrestricted Budget

Income Source 2018 Goal 2018 Actual % to Goal

Government $ 66,710 $ 66,710 100.0%

Foundation $ 182,150 $ 5,000 2.7%

Corporate $ 201,750 $ 10,339 5.1%

Individual $ 206,000 $ 97,352 47.3%

Events & Sponsorships $ 212,500 $ 134,500 52.5%

TOTAL $ 912,610 $ 313,900 34.4%

Restricted Budget Income Source 2018 Goal 2018 Actual % to Goal

Government $ $ - 0.0%

Foundation $ 60,000 $ 35,000 58.3%

Corporate $ - $ - 0.0%

Individual $ 50,000 $ - 0.0%

Events & Sponsorships $ $ - 0.0%

TOTAL $ 110,000 $ 35,000 31.8%

Combined Budgets (Restricted & Unrestricted) Income Source 2018 Goal 2018 Actual % to Goal

Government $ 66,710 $ 66,710 100.0%

Foundation $ 242,150 $ 40,000 16.5%

Corporate $ 201,750 $ 10,339 5.1%

Individual $ 256,000 $ 97,352 38.0%

Events & Sponsorships $ 256,000 $ 134,500 52.5%

TOTAL $ 1,022,610 $ 348,900 34.1%

Grants to CHH

2018 Goal 2018 Actual Difference

RSC Grants to CHH $ 111,980 $ $ -

Sustainable Communities Grants to CHH $ 183,230 $ $ -

General Operating Grants to CHH $ 430,000 $ $ -

Total Unrestricted Grants to CHH $ 725,210 $ $ -

Restricted Grants to CHH $ 110,000 $ $ -

TOTAL $ 835,210 $ $ -


MARCH 2018 PROPERTY DEVELOPMENT BOARD REPORT AND MINUTES Property Development Committee Members: Paul Breckenridge, Liz Dunn, Dana Behar, Rachel Ben-Shmuel, Bob Fikso, Andrew Brand Staff Liaisons to the Board: Chris Persons, Jill Fleming, Jeremy Wilkening, Walter Zisette Date, time and location of meeting: March 6, 2018, 5:30-6:40pm Belmont Conference Room Date, time and location of next meeting: April 3, 2018, 5:30-6:30pm Belmont Conference Room The Property Development Committee discussed two current projects, with one having the potential to acquire additional real estate, and committee members shared one potential new project. We first discussed the Annex site, which is currently owned by Seattle Central. This project would be a partnership with Youth Care. Walter Zisette gave a brief overview of the project and current status of it. Right now, there is a lot of effort at the State level to find funding to cover the high acquisition price for the site. We further discussed a staff level concern of how to make the project pencil with a high land cost. The committee agreed that this project needs to be within reasonable costs on the eventual redevelopment of the site even with the State funds covering the gap and praised the partnership with Youth Care. Per RCW 42.30.110(g), the CHH Board PDC went into an executive session to consider the acquisition of real estate when public knowledge of such consideration would cause a likelihood of increased price. The session began at 6:15 pm. The Committee exited the executive session at 6:35 pm. After this, Rachel mentioned that the mayor’s staff is leading an effort to examine all City owned property as a means to support development or fund (via sale) affordable housing in the City and she suggested CHH get more involved in this process. Jeremy agreed to talk bring this up with Chris and our Leadership Team.




MARCH 2018 JOINT BOARD DEVELOPMENT COMMITTEE BOARD REPORT AND MINUTES Joint Board Development Committee Members: Cathy Hillenbrand (PDA Chair), Margaret Pak Enslow (Foundation Secretary), Shalimar Gonzales (PDA Member), Randy Robinson (Foundation Member) Staff Liaisons to the Board: Michael Seiwerath, Stacey McQuade, Sarah Shoemake Date, time and location of meeting: N/A Date, time and location of next meeting: March 14, 2018, 4-5pm Belmont Conference Room The Joint Board Development Committee did not meet in the month of February. During the month, the Committee continued to advance its ongoing projects, including:

a. Foundation and PDA Emerging Leader Call for Nominations: The Call for Nominations were distributed in January. There have been nine applications received so far for the Emerging Leader position, and one for the Foundation Board. The applications are due via email to Sarah by Friday, March 30th. The Committee will review the applications and choose the top few candidates to meet with Cathy and Chris. The top candidate will be invited to attend the April Board meeting.




MARCH 2018 COMMUNITY DEVELOPMENT COMMITTEE BOARD REPORT Committee members: Selome Teshome, Eric Snow and Rachael Steward CHH Sustainability and Planning Staff: Joel Sisolak, Alex Brennan, McCaela Daffern Date, time and location of meeting: N/A Date, time and location of next meeting: TBD The Community Development Committee (CDC) has not met since the Board’s last meeting. During the past month, staff continued to advance projects. EcoDistrict Updates:

• Certification: The Capitol Hill EcoDistrict is registered to become one of the first certified ecodistricts in North America. We are working on certification documents with a goal of submittal by mid-2018.

• Housing and Health: An advisory committee has been meeting since July 2017 to advise development of LGBTQ-affirming senior housing at 14th and Union. CHH received a grant from LISC to support work on LGBTQ health in 2017-18 and applied with partners for additional support from Communities of Opportunity. Unfortunately, the senior housing project was not selected for OH funding in this past round. The role of the Capitol Hill neighborhood in promoting LGBTQ health and culture will be the focus of the May 24 Community Forum.

• District Shared Parking: Policy recommendations from the EcoDistrict’s shared parking work are part of a package of parking reforms currently before the Seattle City Council.

• ORCA Affordable MF Passport Program: Funding from SDOT for passes in the 3 buildings ended December 31. We are working with King County on an expansion of the program to serve low income transit riders in other neighborhoods across the county. CHH recently received support for this work via a YCC grant from Communities of Opportunity (Best Starts for Kids). Joel will present the program to the King Co Sustainable Cities Roundtable on March 15.

• Pike/Pine Protected Bike Lane: SDOT has brought protected bike lane from 2nd up to 6th Avenue. We continue to support efforts to bring a protected bike lane all the way up the hill to Broadway and farther. Funding for this extension is included in the package of mitigations negotiated with the WSCC as part of the street vacation process for the WSCC expansion, which will be coming before City Council soon. The timing of improvements to the Pike Pine Corridor are still uncertain and will likely need to be coordinated with the Pike Pine Renaissance Plan.

• Washington State Convention Center Addition: CHH has helped to lead a coalition of housing, active transportation, and open space advocates to support a “community package” of public benefits from this project. The term sheet has been signed by Pine Street Group and the coalition partners in what Mayor Burgess called an “historic agreement.” It includes $29M for affordable housing, $10M for the Pike-Pine protected bike lane, $1.5M for a feasibility study to lid Interstate-5, among other benefits. We are reviewing a contract intended to formalize the term sheet. Public benefits will be considered by City Council starting in April. In addition, House Bill 2015 was approved by the legislature in March, ensuring receipt of some of the public benefits funding much earlier than originally anticipated. This bill also creates a new, permanent source of funding


http://www.kingcounty.gov/depts/health/partnerships/RFP.aspx

for King County for affordable housing.

• Capitol Hill Neighborhood Design Guidelines: CHH staff is working with the City of Seattle (OPCD and DCI) to convene community stakeholders in a process to update the Capitol Hill Neighborhood Design Guidelines. We co-hosted a community open house in November 2017, the was extremely well attended. We will co-host another open house May 30th.

• Capitol Hill Renter Initiative: We had a great Valentine’s Day themed meeting in February, writing “love letter” postcards to decision makers.

• Mandatory Housing Affordability (MHA): The City Council’s Citywide MHA upzone hearing for District three will be April 16. CHH is supporting staff interested in engaging in the hearings process. CHH is also supporting the continued work of the Renter Initiative on MHA.

• OIS funding and associated projects: CHH and the Capitol Hill Chamber were awarded funding for our combined proposal to coordination of neighborhood social services to address homelessness, connecting neighborhood business districts with the MHA process and impacts of the upzones on Broadway and Pike Pine, updated urban design guidelines for the Capitol Hill urban village, and create a new business improvement district. We are still waiting on a funding decision regarding redesign of the alley between Broadway, Harvard, Pike, and Pine.

Work Outside Capitol Hill

• The Sustainability and Planning (S&P) team is working with CHH Real Estate Development (RED) staff and the CDC to strengthen and expand S&P’s role in supporting RED projects and local communities outside of the Capitol Hill neighborhood. The S&P team played a significant role in CHH’s response to the RFP from King County and Seattle for the ETOD at Northgate. We are currently hiring a Community Liaison to increase our capacity in this area.


MARCH 2018 EXECUTIVE COMMITTEE BOARD REPORT AND MINUTES Executive Committee Members: Cathy Hillenbrand (Chair), Rob Schwartz (Vice Chair), Drew Porter (Treasurer), Frank Alvarado (Secretary), Alice Quaintance (Immediate Past Chair) Staff Liaisons to the Board: Stacey McQuade, Chris Persons, Sarah Shoemake (taking minutes) (BOLD indicates those members in attendance) Date, time and location of meeting: February 26, 2018 5-6:30pm Belmont Conference Room Date, time and location of next meeting: March 26, 2018 5-6:30pm Belmont Conference Room Minutes: Meeting began at 5:03 pm. 1. Lead Items

a. CEO Review 360 Review: Per RCW 42.30.110(g), the CHH Executive Committee entered into an executive session to review the performance of a public employee. The session began at 5:03 pm. The Committee exited the executive session at 6:03 pm.

b. Review of CEO’s 2017 Workplan and Results: Per RCW 42.30.110(g), the CHH Executive

Committee entered into an executive session to review the performance of a public employee. The session began at 6:03 pm. The Committee exited the executive session at 6:30 pm.

c. Annual Board Calendar: Chris mentioned that the Annual Board Calendar would be included in the Consent agenda for the March meeting, which outlines the planned discussion topics of each committee and full board meeting for the year.

2. External Relations, Community Programs, Board Issues:

a. Park Hill Resolutions: Chris reminded the Board about the proposal to reposition the Park Hill building as a workforce affordable building, as presented to the Committee in January, and the full Board in February. He mentioned that there are limited buildings without regulatory agreements where we would be able to make this transition. We will utilize the 2006 Policies for Use of Physical Assets to guide this transaction. Chris noted there will be a memo and two resolutions regarding this project at the March Board meeting.

b. Board Committee Assignments Update: Chris mentioned that he and Sarah have begun scheduling meetings with each board member who might change committees as of April 2018. The slate of returning board members whose terms are up this year includes Cathy, Rob, Bob, b.g., and Drew. Chris anticipates that everyone will agree to be re-appointed for another three-year term. The slate of officers and renewing board members will be presented at the March board meeting, and will be voted upon in April. Eric Snow’s term will also be up in April, however he needs to be re-appointed by the Mayor. Chris reminded the Committee that he will continue to have full, active board membership until City Council says otherwise. Sarah will reach out to Kenny Pitman at the Mayor’s office regarding Eric’s re-appointment.


c. Emerging Leader: Sarah updated the Committee on the status of the Call for Nominations for the Emerging Leader position on the Board. She mentioned that we have received eight candidate applications so far, and the deadline is March 30th.

d. Affiliations/Partnering/Asset Management: Chris gave an update on the partnership discussions.

e. Board Resolutions: Chris mentioned the two resolutions in the upcoming March full Board meeting will be in regard to the Park Hill repositioning and financing.

3. Development and Acquisitions a. Helen V/14th & Union Update: Chris reminded the Committee that the 14th & Union project did

not receive funding from the Office of Housing in the Fall funding round. Chris and Jill met with OH to discuss this as well as the ramifications for the rest of our pipeline, and are planning to meet with the Mayor. He also mentioned that the 14th & Union Advisory Committee meet in early February to discuss the lack of funding and next steps.

Meeting adjourned at 6:40 pm.


Documents

18 CHH Board Meeting March...3 Board Packet Sections 1. Meeting Keys, p. 5-7 2. Board Agenda, p. 11 3. March 2018 Finance Report, January Statements and Asset Management Report, p