Fiscal Note

Department:	Contact Person/Phone:	DOF Analyst/Phone:
OH	Eric Pravitz/4-0362	Janet Credo/4-8687

Legislation Title:

AN ORDINANCE relating to affordable housing development; authorizing an agreement with the Washington State Department of Community, Trade and Economic Development and the acceptance by the City of One Hundred Ninety Thousand Dollars ($190,000) thereunder; authorizing a grant to HomeSight to support development of housing for low-income buyers; increasing the 2003 Budget of the Office of Housing by making an appropriation conditioned on receipt of State funds; and ratifying and confirming prior acts, all by a vote of three-fourths of the members of the City Council.

Summary of the Legislation:

This legislation will authorize OH to enter into an agreement with the Washington State Department of Community, Trade and Economic Development to administer a grant for HomeSight’s Davis Place condominium project, a pilot project to demonstrate that commercially viable, affordable and attractive high-density residential projects can be built in urban growth areas. OH will disburse the grant funds subsequent to successful completion of tasks set forth in the Scope of Work within the Interlocal Agreement between CTED and the City (Exhibit A of the Ordinance).

Appropriations (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Appropriation	2004 Anticipated Appropriation
Low Income Housing Subfund (16440)	OH	Housing (XZ1BI)	$190	0
TOTAL			$190	0

* This is line of business for operating budgets, and program or project for capital improvements

This $190,000 state grant to the City will serve mainly as a pass through grant to Homesight as the contractor for services to complete the project. The City will retain a portion of the grant for administration.

Expenditures (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Expenditures	2004 Anticipated Expenditures
Low Income Housing Subfund (16440)	OH	Housing (XZ1BI)	$190	0
TOTAL			$190	0

* This is line of business for operating budgets, and program or project for capital improvements

The CTED grant will provide $175,000 for project costs and $15,000 to the City for administration. The project budget is broken down as follows:

Total award from CTED: $190,000

DCLU for tasks designated in this scope of work: $5,000

SDOT for tasks designated in this scope of work: $5,000

OH for tasks designated in this scope of work: $5,000

HomeSight for costs of the project to the City (land acquisition and permitting)

In order to install upgraded exterior finishes and landscaping $175,000

The City of Seattle will execute an agreement with HomeSight, and consultants for those tasks for which they are responsible and for which they are being compensated by funding from CTED through the City of Seattle under the Interlocal Agreement attached as Exhibit A of the ordinance.

Anticipated Revenue/Reimbursement (in $1,000’s):

Fund Name and Number	Department	Revenue Source	2003 Revenue	2004 Revenue
Low Income Housing Subfund (16440)	OH	Grant Award - DCTED	$190	0
TOTAL			$190	0

Total Permanent Positions Created or Abrogated Through Legislation, Including FTE Impact; Estimated FTE Impact for Temporary Positions:

Fund Name and Number	Department	Position Title	2003 FTE	2004 FTE
N/A
TOTAL

Do positions sunset in the future?

N/A

Background

This legislation will authorize OH to enter into an agreement with the Washington State Department of Community, Trade and Economic Development to accept and administer a grant in the amount of $190,000 to fund the activities of HomeSight, in a pilot project to demonstrate that commercially viable, affordable and attractive high-density residential projects can be built in urban growth areas. OH will disburse the grant funds subsequent to successful completion of tasks set forth in the Scope of Work within the Interlocal Agreement between CTED and the City (Exhibit A of the Ordinance).

The financial cost of not implementing the legislation

Loss of a $190,000 grant.

Possible alternatives to the legislation which could achieve the same or similar objectives

Without the grant, certain improvements to the Davis Place condominium project design would not occur.

Is the legislation subject to public hearing requirements

No.

Other Issues

The CTED grant will provide funds to enhance the quality of the Davis Place condominium project, contributing to the redevelopment of the Jackson Place community.