WHEREAS, the Holly Park Redevelopment Plan (HOPE VI plan), developed through extensive collaboration including participation of Holly Park residents, the greater Southeast Seattle Community, and the City, envisions and embraces a major community revitalization effort predicated on eliminating an isolated, very large concentration of very low income housing at Holly Park; and

WHEREAS, the Housing Authority of the City of Seattle ("SHA"), in partnership with Holly Park residents, other community representatives, and City staff, is now preparing to construct the first phase of a multi-phased project to redevelop the 102-acre Holly Park distressed public housing site in Southeast Seattle as a mixedincome community; and

WHEREAS, the SHA submitted its HOPE VI plan to the U.S. Department of Housing and Urban Development (HUD) in 1995, including a request for the maximum grant amount of $50 million, 400 project-based Section 8 rent subsidy certificates, and a $25 million Development fund request as leverage to produce up to 500 off-site replacement units; and

WHEREAS, HUD approved the HOPE VI plan in 1995 with its original goals for replacement housing, including the 400 project-based section 8 rental-support certificates, and subsequently funded the Plan with $47.1 million and 250 new tenant-based section 8 rental assistance vouchers, and approved the demolition plan for Holly Park; and

WHEREAS, the 104th Congress of the United States repealed HUD's replacement housing requirements for public housing redevelopment, and eliminated all funding for new public housing development and replacement, and further eliminated the provision of any new projectbased Section 8 rental-support certificates, significantly impacting the redevelopment project's budget; and

WHEREAS, the City affirmed, by Resolution 29303 adopted March 11, 1996, its support for the Holly Park redevelopment and established framework principles to guide City decisions, including the principle of pursuing a variety of off-site housing replacement options that reduce the geographic concentration -and assure no net loss of -very low income housing stock and units within the City of Seattle; and

WHEREAS, the Holly Park Board of Governors, in collaboration with Holly Park residents, have approved a plan that would demolish the existing 871 deteriorated public housing units and construct on site 1200 new units of mixed income housing, community facilities, parks, open spaces and other public infrastructure; and

WHEREAS, the SHA has adopted a phased relocation plan for Holly Park residents in compliance with the Uniform Relocation Act, assuring that every family currently living at Holly Park will not be displaced, and will be counseled in their native language, offered an unprecedented range of relocation options, relocated, and rehoused at the expense of the SHA; and

WHEREAS, the SHA and the Holly Park Board of Governors presented to the City Council at its Business Meeting of October 28, 1996 and to its Health, Housing, Human Services, Education and Libraries Committee meeting of November 5, 1996, a housing replacement plan that would, over the course of an anticipated eight-year demolition and redevelopment period, pursue a variety of housing replacement options that reduce the geographic concentration of extremely low income households; and

WHEREAS, the City stated its intent in Ordinance 118039 to make capital contributions to the redevelopment of Holly Park, and City Council Resolution 29479 adopted November 12, 1996 affirms the City's intent to contribute funds toward the capital construction costs of Phase I, totaling Six Million Three Hundred Thousand Dollars ($6,300,000), and requires a finance plan to establish the sources of funding; and

WHEREAS, in October 1996 HUD issued streamlined regulations specifying the contents of a Residential Antidisplacement and Relocation Assistance Plan for projects assisted by local jurisdictions using certain federal housing and community development funds; and

WHEREAS, the City Council's Committee of the Whole held meetings on April 21, May 5, May 27, and June 2, 1997 to discuss the proposed replacement housing plan; the Committee of the Whole held a public hearing on May 22, 1997, to hear public testimony on the proposed replacement housing plan and the proposed redevelopment of Holly Park; on May 27 and June 2, 1997, the Committee of the Whole met to consider possible alternatives to the proposed replacement housing plan; and the Committee of the Whole recommended the full Council accept an alternative replacement housing plan that would provide one-for-one replacement of housing units for families with incomes at or below 30% of median income; and

WHEREAS, the Council strongly urges SHA to use experienced developers to develop the home ownership portion of Holly Park; Now, Therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:

Section The City accepts the Holly Park Replacement Housing Plan attached to this resolution as Attachment A.

Section 2. SHA shall be required to implement the Replacement Housing Plan consistent with the conditions set forth in this Resolution and the Memorandum of Agreement ("MOA") between the City and SHA to be adopted by ordinance pursuant to Resolution 29579.

Section 3. Implementation of the Replacement Housing Plan shall include the following conditions:

SHA shall be responsible for satisfaction of the replacement housing targets for number of units or rental assistance and related affordability levels as identified in Attachment A.

SHA shall be responsible for meeting annual production targets for each year in Phase I and overall production targets for Phases II and III as identified in Attachment A. Prior to approval of City contribution, if any, for funds for Phases II and III, similar annual production targets shall be established for Phases II and III based on the overall Phase II and III production targets as identified in Attachment A.

All replacement housing must be provided and remain in use at their required affordability levels as established in Attachment A for a minimum of forty (40) years from the date of initial occupancy, subject to review in ten (10) years or if federal operating subsidies are reduced or withdrawn.

Non-profits shall be the developers, in partnership with SHA, of the 221 off-site units produced with additional funding and rent subsidies (as identified on Attachment A). Non-profits may be permitted to use City funds to ensure affordability of the units serving families with incomes at 50% of median income; however, for Phase I, such funds shall be limited to no more than $4 million, any increase above this amount shall be subject to Council approval. SHA shall be responsible for providing the additional funds to bring the affordability levels of those units down from 50% of median income to 30% of median income; no use of additional City funds shall be permitted to bring the affordability down from 50% of median income to 30% of median income. SHA shall also be responsible for providing 221 transferable operating subsidies or project-based Section 8 certificates to bring the affordability of the 221 units down from 30% of median income to 0-30% of median income, subject to final HUD approval. The MOA shall establish the appropriate funding mechanism for these units.

SHA may be the developer of the 62 additional units onor offsite (as identified on Attachment A); however, SHA shall not be allowed to use City funds for the production of those units. If another developer is selected to produce some or all of those units, the same restrictions on City funds sources shall apply.

Section 4. The City affirms the objectives of the Replacement Housing Plan to provide housing options including stock and units for very low income households in other geographic areas of the city and to reduce the geographic concentration of very low income rental housing at Holly Park as significant to the revitalization of Southeast Seattle. The City further offers its help to the SHA in seeking HUD approval necessary to enable the plan to address Seattle objectives, with specific emphasis on securing new project-based Section 8 certificates in exchange for existing transferable operating subsidies.

Section 5. The City further acknowledges the challenges the SHA faces as a result of curtailed federal funding for public housing development, and encourages the SHA to aggressively pursue additional funds and development of new partnerships to maximize the leveraging resources for Holly Park replacement housing. The City also strongly encourages SHA to seek non-housing funds from the state, particularly from community and economic development fund sources, in lieu of some or all of the state funds SHA has requested from housing-related fund sources.

Section 6. The Executive is directed to explore further opportunities for Holly Park replacement housing partnerships, including but not limited to the strategies described in the Replacement Housing Plan.

Section 7. This Resolution is specifically directed to the unique housing resources and community revitalization circumstances of the Holly Park Redevelopment, and does not intend to represent citywide replacement housing policy.

Section 8. SHA shall also implement the Holly Park Replacement Housing Plan consistent with the City's Residential Antidisplacement and Relocation Assistance Plan ("RARAP") for Holly Park as set forth below and adopted herein. The City's RARAP for Holly Park is as follows:

(1) The SHA shall take reasonable steps to minimize displacement of families and individuals from their homes and neighborhoods as more fully set forth in its adopted relocation plan as approved by HUD and attached to this Resolution as Attachment B, with any modifications hereafter approved by HUD;

(2) the SHA shall provide relocation assistance in accordance with 24 CFR 42.350; and

(3) the SHA shall provide replacement housing in accordance with the terms of this Resolution and Attachment A but in any event in compliance with 24 CFR 42.375.

Adopted by the City Council the _____ day of _____________, 1997, and signed by me in open session in authentication of its adoption this _____ day of ________________, 1997. ________________________________________ President of the City Council

THE MAYOR CONCURRING: ______________________________ Norman B. Rice, Mayor

Filed by me this ______ day of _________________, 1997. ________________________________________ City Clerk Attachments: A. Holly Park Replacement Housing Plan B. Holly Park Relocation Plan sa:sa:GBH 6/2/97 29578.DOC (Ver. 2)