WHEREAS, the Seattle Housing Authority (SHA) received $47.1 Million HOPE VI Revitalization Demonstration Project Implementation Grant from the US Department of Housing and Urban Development (HUD) toward redeveloping the 102-acre Holly Park distressed public housing site in Southeast Seattle as a mixed-income redevelopment in partnership with existing residents; and

WHEREAS, Holly Park is within the Enterprise Community designation and will receive a portion of that grant award; and

WHEREAS, Resolution 29479, adopted by the Seattle City Council on November 12, 1996, affirmed the City of Seattle's intent in the future to make capital contributions to the redevelopment of Holly Park and directed the development of the City's financial contribution plan; and

WHEREAS, Capital Facilities Bond Program, Community Development Block Grant, Cumulative Reserve Fund, Enterprise Community Grant, General Fund, HOME, 1995 Low-income Housing Levy and Urban Renewal Fund as potential funding sources for City's contribution to Holly Park Phase I redevelopment were considered in preparing the financial plan; and

WHEREAS, guiding principles in developing the financial plan included minimizing financial impact on any one potential resource, giving greater consideration to funding resources with remaining balances, and funding resources that meet Holly Park project cash flow needs over three years, and contribute to families and individuals earning less than 55% of the area median income; and

WHEREAS, the Executive has proposed that Seattle Public Utilities and the Department of Housing and Human Services provide for certification and funding of certain water and sewer infrastructure extensions that serve residences of very low-income households: NOW THEREFORE

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

Section 1. The City Council hereby approves and adopts the finance plan shown in Exhibit A that identifies the sources, amount, and allocation schedule for the City contribution for Phase I of the Holly Park redevelopment project of not to exceed SIX MILLION THREE HUNDRED THOUSAND DOLLARS ($6,300,000).

Section 2. The funds approved in the finance plan shown in Exhibit A shall not be released by the City until the City has adopted by ordinance, and the City and the Seattle Housing Authority have executed, a Memorandum of Agreement ("MOA") between the City and the Seattle Housing Authority that includes provisions consistent with the following conditions.

Community facilities shall be fully developed as proposed in Phase I.

Funding for Phase I shall be released in stages according to a disbursement table consistent with the timeframe and intent of the table in Exhibit 1 of this resolution, and contingent upon satisfaction of the annual targets for replacement housing required by Attachment A of Resolution 29578.

Any savings generated or additional funds identified shall be used to address the following priorities: replacement housing; community facilities; and consideration of reduction of possible City contribution in Phases II and III.

The Council shall receive reports regularly and in addition as soon as practicable upon discovery of significant deviation from the redevelopment proposal. Reports shall include information on project performance, schedule, finance, budget, adjustments, forecasts, redesign, value engineering, copies of applications for funding, status of sale of tax credits, replacement housing production, apprenticeship utilization, wage rates and W/MBE compliance, and any variance from approved project plans.

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 of Resolution 29578.

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 of Resolution 29578. 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 of Resolution 29578.

All replacement housing must be provided and remain in use at their required affordability levels as established in Attachment A of Resolution 29578 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 of Resolution 29578). 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 of Resolution 29578); 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.

The MOA should identify and include any necessary changes to City funding conditions to make them compatible with other fund sources, so long as those funding conditions do not conflict with the conditions and intent contained in this Resolution or Resolution 29578. The MOA should also include additional details as appropriate and should define any key terms.

The MOA and ordinance approving it shall be presented to the Council no later than July 31, 1997.

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 Exhibits: A. City Finance Plan to Contribute to Holly Park Redevelopment Phase I B. Holly Park Phase I City Contributions and Uses Exhibit A City Financial Plan to Contribute to Holly Park Redevelopment Phase I

1997 1998 1999 Total City Contribution Home Program Homeowner 500,000 500,000 1,000,000 (MHPK) Homeowner 30,000 211,355 242.315

1986 Levy 590,421 590,421

General Fund 801,579 801,579

Utility Support 500,000 900,000 400,000 1,800,000

CFB Program 202,685 1,000,000 1,202,685

Urban Renewal 413,000 413,000

Enterprise Community 250,000 250,000

Total City Contribution By Year 2,004,264 2,684,381 1,611,355 6,300,000

Exhibit B: Holly Park Phase I City Contributions and Uses

SOURCE AMOUNT USE HOME Program (C.B. 111712) $1, 242,315 Down payment assistance to lowincome first-time home buyers.

1986 Housing Levy (C.B. 111709) $590,421 Construction of very-low-income housing units.

General Fund $801,579 Very-low-income housing, public infrastructure or community facilities.

Utility funds (C.B. 111714) $1,800,000 Public infrastructure serving very-low-income residences.

Capital Facilities Bond Program, Concert Hall Bonds, and General Fund (C.B. 111710) $1,203,685 Very-low-income housing

Urban Renewal Closeout Subaccount (C.B. 111711) $413,000 Very-low-income housing.

Enterprise Community Grant from HUD $250,000 Community learning facilities.

TOTAL $6,300,000 29579.DOC RR: MKD:GBH Ver. 3 6/2/97