Form revised December 9, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Office of Housing	Laura Hewitt Walker 4-0429 Dan Foley 4-0585 Rick Hooper 4-0338	Janet Credo 4-8687

Legislation Title:

AN ORDINANCE relating to transferable development rights (“TDR”); authorizing the purchase by the City of TDR from a low-income housing project at 1921 3^rd Avenue in Seattle; authorizing related agreements and acceptance of a deed; and ratifying and confirming prior acts.

· Summary of the Legislation:

This legislation authorizes the City to purchase 26,704 square feet of Housing TDR certified for Haddon Hall Apartments located at 1921 3^rd Avenue in Belltown. The owner of Haddon Hall, Plymouth Housing Group, will be using the sales proceeds to renovate the building and preserve 53 units of housing that will remain affordable for another 50 years for people with incomes less than 50% of the area median income.

· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

Plymouth Housing Group has agreed to sell the City 26,704 square feet of Housing TDRs certified for the lot located at 1921 3^rd Avenue (Haddon Hall Apartments) at $19.50 per square foot for a total price of $520,728. The sales proceeds will be used to renovate Haddon Hall Apartments, with the scope of work including new hot and cold water supply and waste, new gas fired hot water boiler and circulating pump, new carpet and pad in all units, new bathrooms and kitchens (including flooring), and new paint throughout the building. The property is owned by Plymouth Housing Group and the upgrades will only require over-the-counter permits. Tenants will not need to be relocated off-site during the renovation, as it will be done in “stacks” of five units at a time. Tenants in the affected stack will be relocated to comparable vacant units within the building until work on their units are complete, at which time they will be moved back to their original units. Total project costs are approximately $1.8 million. The sale of TDR is one of two funding sources for the renovation; the other is Plymouth’s Building Hope Capital Campaign.

As of August 31, 2005, the City’s TDR Bank Fund, (#16430), had a fund balance of $1,338,188. After purchase of Haddon Hall’s TDR, approximately $817,460 will remain for other housing TDR purchases by the City. The City plans to assist preservation of a building located in the heart of the International District in part through purchase of TDR in early 2006. In addition, we are aware of two brick walk-up apartment buildings in Downtown Seattle that may be at risk of being redeveloped and may be acquired by non-profit housing developers in order to preserve both the structures and their long-term housing affordability. The TDR Program could also help with those preservation efforts.

· Please check one of the following:

_ __ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

_X__ This legislation has financial implications. (Please complete all relevant sections that follow.)

Appropriations: 

Fund Name and Number	Department	Budget Control Level*	2005 Appropriation	2006 Anticipated Appropriation
N/A
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: 

The Office of Housing has 2005 budget authority for $1 million in subfund 16430.  An additional $1 million is included in the 2006 Proposed Budget, which is anticipated to be adopted at the end of November 2005.

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2005 Revenue	2006 Revenue
N/A
TOTAL

Notes: not applicable

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: 

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2005 Positions	2005 FTE	2006 Positions**	2006 FTE**
	N/A
	TOTAL

*   List each position separately

** 2006 positions and FTE are total 2006 position changes resulting from this legislation, not incremental changes. Therefore, under 2006, please be sure to include any continuing positions from 2005

Notes:

· Do positions sunset in the future?  (If yes, identify sunset date):

No

Spending/Cash Flow:

Fund Name and Number	Department	Budget Control Level*	2005 Expenditures	2006 Anticipated Expenditures
TDR Bank Fund	Office of Housing	16430		$520,728
TOTAL

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes:

See notes on page 2

· What is the financial cost of not implementing the legislation?

Plymouth Housing Group plans to fund the Haddon Hall Apartments renovation with TDR sale proceeds and their Building Hope Capital Campaign. If City Council does not authorize the City to purchase TDR certified for this building, then in order for the project to move forward, Plymouth will need to (1) try to sell the TDR to a private commercial developer (if timing does not work they might need a bridge loan from the City or bank); or (2) increase their capital campaign goals (currently $52 million—72% of which has been raised as of 10/1/05); or (3) seek other Office of Housing funding.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives?

See above.

· Is the legislation subject to public hearing requirements: 

No.

· Other Issues

None.

Please list attachments to the fiscal note below:

None.