Form revised: December 6, 2011

 

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

DOF Analyst/Phone:

Office of Housing

Maureen Kostyack/5-0986

Jeanette Blankenship/5-0087

 

Legislation Title:

An ordinance relating to housing for low-income households, amending housing policies in the 2012-2013 Administrative and Financial Plan for 2009 Housing Levy Programs, which also apply to other funds used for housing, and in the 2009-2012 Consolidated Plan for Housing and Community Development, and ratifying and confirming certain prior acts.

 

·         Summary of the Legislation:

The Seattle Office of Housing is proposing to amend the Housing Levy Administrative and Financial Plan (A & F Plan) to be consistent with adopted 2012 budget allocations for the Housing Levy, and to amend the A & F Plan and the Consolidated Plan for Housing and Community Development (Consolidated Plan) to implement requirements of the Yesler Terrace Cooperative Agreement.  In addition, the legislation makes limited changes to the rental housing and homebuyer policies.

 

·         Background:  

The Seattle Office of Housing (OH) is proposing amendments to the A & F Plan as follows:   

 

a)      Fund transfer.  The Council-adopted 2012 Budget transferred $165,000 from the Housing Levy administrative category to the Rental Preservation & Production Program.  The amendment will revise the Levy Funding Plan to conform to that budget decision.

 

b)     Rental Housing Program.  Under current policy OH considers an agency’s performance on previously funded projects when awarding funding for new projects.  The Plan amendment will establish procedures for an agency to resolve any contract compliance findings, and for OH to determine whether the agency is in good standing on prior loans.  An agency that receives a compliance finding must correct the deficiency, or take actions to remedy according to a plan acceptable to OH, to be eligible to apply for funding for a new project.

 

c)      Yesler Terrace redevelopment.  The Yesler Terrace Cooperative Agreement makes conditional commitments of Rental Housing Program funds for replacement housing and other low-income housing in Phases I and II of Yesler Terrace redevelopment.  The A&F Plan amendments will enable OH to fund these projects consistent with Cooperative Agreement.  The amendments include a waiver to income limits for relocated Yesler Terrace residents, flexibility on tenant rent policy for replacement housing units to allow consistency with HUD requirements, flexibility related to OH’s application process, and related definitions.

 

d)     Homebuyer assistance.  Based on recent program experience, nonprofit organizations

have requested changes to lending guidelines.  Plan amendments would increase the maximum loan amount for resale-restricted homes, and would allow homebuyers up to 80% of AMI who are participating in “sweat equity” programs to count their mandatory volunteer time toward OH’s required cash contribution.

 

In addition, the Office of Housing is proposing to amend the development siting policy in the Consolidated Plan to exempt development of Yesler Terrace Replacement Housing.  The policy restricts development of extremely low-income housing in areas of over-concentration.  The exemption is needed to allow replacement housing development to proceed, in advance of planned market rate housing development, so there will  be opportunities for residents who must relocate to stay at Yesler Terrace.  

 

_X__   This legislation does not have any financial implications.  

 

Note:  While the legislation does not have a direct impact financial impact, OH is unable to spend $165,000 in rental housing program funds until the A&F Plan conforms with the 2012 budget.

 

·         List attachments to the fiscal note below:

 

None

 

Other Implications: 

 

a)      Does the legislation have indirect financial implications, or long-term implications?

No.

 

b)     What is the financial cost of not implementing the legislation? 

OH would be unable to allocate $165,000 for rental housing projects.

 

c)      Does this legislation affect any departments besides the originating department? 

No. 

 

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

No alternatives are identified.

 

e)      Is a public hearing required for this legislation? 

No.

 

f)       Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

No.

 

g)      Does this legislation affect a piece of property?

The legislation affects funding for specific parcels at Yesler Terrace as provided in the Yesler Terrace Cooperative Agreement.

 

h)     Other Issues:

 

List attachments to the fiscal note below:

 

            None