TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

I. AFFORDABLE HOUSING OPENING AND UNDER CONSTRUCTION 6

II. FUNDS AWARDED IN 2021 12

III. PROJECTS FUNDED IN 2021 16

IV. HOUSING INVESTMENTS THROUGHOUT SEATTLE 25

V. NEW RENTAL HOUSING FUNDED IN 2021: FUNDING PRIORITIES & CHARACTERISTICS 33

VI. DEMOGRAPHICS OF HOUSEHOLDS SERVED, BY PROGRAM 34

MORE INFORMATION 38

OFFICE OF HOUSING

ANNUAL INVESTMENTS REPORT 2021

EXECUTIVE SUMMARY

New investment strategies, paired with exceptional levels of state and federal funding,

create and sustain an unprecedented number of affordable rental and for-sale homes in 2021

The impacts of the coronavirus pandemic have underscored, more than ever, the link between health and housing stability. The pandemic's economic fallout and disproportionate effect on the well-being of communities of color has underscored the interconnectedness of housing stability and racial equity. Investing in permanent affordable housing is one of the most critical actions our City performs to address homelessness and public health, prevent residential displacement, and reverse historic and ongoing harms to communities of color as a result of institutionalized discriminatory policies and practices.

The Office of Housing's Annual Investments Report provides a comprehensive look at the City of Seattle's production and preservation of affordable housing through the Office of Housing's direct investment of tax revenue, proceeds from developer payments, and special funding. This year's report recaps financial activity and associated production numbers for investments made under four programs: Rental Housing, Homebuyer, Home Repair, and Weatherization. It also provides information on a category of spending unique to 2020 and 2021: emergency rental assistance in response to the economic impacts of the coronavirus pandemic.

For the second year in a row, the Office of Housing ran three rental housing funding rounds, including a new rolling funding round for rapid acquisition that remains open into 2022. Given the unique real estate market conditions brought about by the pandemic and the exceptional availability of state and federal funding to supplement local funding in 2021, the Office of Housing pursued a new rapid acquisition investment strategy. Under that strategy, OH supported the acquisition of five recently-completed market-rate apartment buildings, which facilitated the lease-up of 260 new rent- and income-restricted homes in a matter of months, greatly accelerating the timeline for creating new homes compared to traditional affordable housing development.

City capital investments also supported acquisition of large development sites for future rental housing, development of permanently affordable for-sale housing, and the stability of existing low-income residents through OH's home repair and weatherization programs. All are featured in this report along with, as noted above, information on expenditures for pandemic-responsive emergency rental assistance. Information on 2021 activity for other OH spending programs, such as operating and maintenance support, down payment assistance for first-time homebuyers, foreclosure prevention, and homelessness prevention and rapid rehousing, appear in a companion report on the Seattle Housing Levy.

As in past years, Section VI of this report describes how City investment in affordable housing infrastructure advances racial equity. Affordable housing investment promotes racial equity and fair access to housing. People of color, particularly African Americans and American Indian and Alaskan Natives, are more likely to experience housing cost burden, displacement, and homelessness. Affordable housing is a critical way for the City to address these and other long-standing racial disparities that exist both in Seattle and across the county. Each of the housing programs discussed in this report makes special efforts to reach people of color and immigrant and refugee communities. Fifty-seven percent of the households in City-funded rental housing are led by a person of color, and 17 percent of all renter households are Hispanic. Forty-five percent of the households served by the City's homebuyer programs are led by a person of color.

Housing equity is also advanced through City location priorities for housing investment. Seattle housing policies emphasize a balanced approach that ensures housing choice and affirmatively furthers fair housing. Some investments promote new affordable housing options in neighborhoods where low-income residents, including many people of color, face the risk of displacement due to rising rents and gentrification. This affordable housing helps sustain cultural communities and enables residents to stay in their neighborhoods as transit and other improvements are made. Seattle housing policies also promote investments in higher cost areas where many opportunities are available, including schools, transportation, and amenities. Section IV of this report provides a series of maps illustrating how housing investments align with transit access, areas rich in amenities, areas at high risk for displacement, and more.

Affordable housing is a critical cornerstone for broader equitable community development. By supporting housing development organizations grounded in communities that have historically been harmed by institutionalized racist policies and practices, the Office of Housing continues to demonstrate its commitment to racial equity through housing justice. Of the 12 housing development organizations supported through 2021 investments in new rental housing development, five are explicitly rooted in, led by, and serve communities of color. Another three housing development organizations are led at the highest level by people of color.

Through investments over the past 40 years, Seattle now has over 15,600 City-funded rental housing units in operation across 328 buildings. In 2021, 489 new City-funded rental housing units were placed in service and welcomed renters, and 21 new City-funded permanently affordable homes were built and sold to low-income first-time homebuyers. An additional 5,400 City-funded affordable apartments and 179 permanently affordable for-sale homes are under development (i.e., under construction, in permitting, or preparing for permitting) and will be completed in the coming years. Each home represents safety and stability for an individual or family, a step toward creating more inclusive communities throughout Seattle, and a victory for housing justice.

New Housing Opening and Under Construction

The City's longstanding track record of investment helps secure a steady supply of new affordable homes.

In 2021, seven OH-funded rental housing buildings were opened, providing 489 affordable rent- and income-restricted homes. Two OH-funded homeownership developments were completed, with 21 permanently affordable homes sold to income-eligible first-time homebuyers.

Prior- and current-year OH funding awards will culminate in 43 newly completed rental buildings comprising over 5,400 new affordable apartments in 2022 and the coming years. Prior- and current-year OH funding awards will yield 179 new permanently affordable for-sale homes across 11 homeownership developments.

City-Funded Affordable Rental Housing

Recently Opened (2017-2021) and Under Development

2021 Housing Investments

Even as prior-year funding was delivering completed affordable housing in 2021, OH funding programs set a new cohort of affordable homes in motion. For the second year in a row, OH replaced its once-a-year notice of funding availability with three separate funding rounds, in order to adapt to shifting real estate market conditions and take advantage of unique affordable rental housing development, acquisition, and preservation opportunities throughout the year. In addition to offering spring and fall funding rounds, OH created a Rapid Acquisition program that, in partnership with the Washington State Department of Commerce, supports the purchase of newly constructed, private market buildings to provide affordable housing on an accelerated timescale. Funds awarded for preservation of existing affordable rental housing and development of for-sale housing for first-time homebuyers also combined to make 2021 a year of unprecedented investment activity.

Rental Housing Program: This program funds production and preservation of rental housing that will serve low-income Seattle residents for a minimum of 50 years.

$138 million awarded for rental housing production

1,551 new affordable rental apartments will be produced through those awards

$15 million to preserve 359 permanent supportive housing units

$24.4 million acquisition loans to secure three sites that will support future development of 657 new rental units

Homeownership Program: This program funds the development of new for-sale housing stock that will be sold to low-income, first-time buyers at affordable prices for a minimum of 50 years.

$5.78 million for permanently affordable homeownership development

50 new permanently affordable for-sale homes at four sites

The Office of Housing also made investments to stabilize low-income homeowners and improve the environmental sustainability and performance of existing affordable housing stock. Investment in OH's longstanding home repair and weatherization programs provided direct service to achieve these safety, health, and affordability outcomes for housing owners and renters.

Home Repair Program: This program funds critical health and safety repairs, helping low-income homeowners preserve what is often their greatest financial asset and remain in their homes.

Approximately $830,000 provided as loans and grants

59 low-income homeowners assisted

Weatherization Program: This program funds energy conservation and related indoor air quality improvements, enhancing health and living conditions and lowering utility bills for low-income homeowners and renters

$4 million in grant funds expended

Completed upgrades in 112 single family homes, which includes 30 oil-to-electric heating system conversions under new Clean Heat Program.

Completed upgrades in 5 affordable apartment buildings, with a total of 370 affordable units

Beyond capital investment in housing development and preservation, the Office of Housing manages several ongoing programs funded by the Seattle Housing Levy and, in 2021, continued to administer special emergency rental assistance funds through programs initiated in 2020 as part of the City of Seattle's COVID-19 pandemic relief efforts.

Finally, OH also administers several programs that promote the inclusion of affordable set-aside units in otherwise market-rate buildings.

Multifamily Tax Exemption Program: This program provides multifamily building owners a property tax exemption in exchange for a set-aside of units affordable to low- and middle-income households for up to 12 years.

The Office of Housing issued Final Certificates of Tax Exemption for 19 market-rate multifamily rental housing properties with 494 rent- and income-restricted MFTE units. Eight permanently affordable for-sale homes were also issued Final Certificates of Tax Exemption. Tax exemptions for properties with Final Certificate issued in 2021 became effective on January 1, 2022.

Between January 1, 2010 - December 31, 2022, the cumulative amount of foregone property tax revenue in Seattle, due to the deferral of the new construction value for active MFTE properties, is $146.7 million. For 2022 alone, $65.9 million of tax savings for MFTE property owners is shifted to be an additional tax burden for non-exempt taxpayers. Due to MFTE, the additional amount of property tax paid in 2022 by each homeowner, assuming the home has the median value of $760,000 for Seattle, is approximately $72.

Mandatory Housing Affordability Performance Option: Under a program that requires most new real estate development to contribute to production of new affordable housing, developers may choose to make a payment to support the housing investments described in this report or choose to pursue the performance option, under which they create affordable set-aside units in otherwise market-rate buildings.

One building using the performance option was placed in service in 2021 (7 MHA units out of a total 95 units), bringing the total number of performance option buildings placed in service since MHA was implemented to 6.

Developers made commitments for construction of 95 additional MHA performance units (out of 1,286 total units) in 13 new buildings in 2021, a sharp increase from prior years.

Supplementary Reports on Housing Programs and Investments

Three supplementary reports are produced and published simultaneously with this Investment Report.

1. Seattle Housing Levy: Seattle's voter-approved $290 million, 7-year levy made its fifth round of funding awards in 2021. This report covers Levy performance in relation to adopted goals and affordability requirements for each of the five Levy-funded programs, including several spending programs not addressed in this report: operating and maintenance support for OH-funded buildings, down payment assistance for first-time homebuyers, foreclosure prevention, and homelessness prevention services.

2. Mandatory Housing Affordability and Incentive Zoning: This report compiles information on both the voluntary and mandatory programs, including information on participating properties and resulting production of affordable housing, as required in the Council-adopted OH Housing Funding Policies.

3. Multifamily Tax Exemption Program: Participating multifamily buildings can receive a property tax exemption on residential improvements in exchange for placing income and rent restrictions on 20 or 25 percent of the units. This annual report is required under Ordinance 124877 and addresses data points such as housing production and tax impacts.

I. AFFORDABLE HOUSING OPENING AND UNDER CONSTRUCTION

Seven OH-funded rental housing projects leased up and began operations in 2021, comprising 489 new affordable apartments. Twenty-one OH-funded permanently affordable for-sale homes were also completed in 2021, and homes were sold to low-income first-time homebuyers.

Table 1: OH-Funded Housing Opened in 2021

Project name

Project Sponsor

Neighborhood Description

Rental Apartments

Filipino Community Village

Filipino Community of Seattle, HumanGood

Rainier Valley 93 studio and one- and two-bedroom apartments for extremely low-, very low-, and low-income seniors and senior-led households

Encore Apartments

GMD

Belltown 60 studio and one-bedroom apartments for low-income individuals

Kristin Benson Place

Plymouth Housing

Uptown 91 studio and one-bedroom apartments for formerly homeless individuals

George Fleming Place

Low Income Housing Institute

Othello 92 studio, one-, two, and three-bedroom apartments for extremely low-, very low-, and low-income families and individuals

Rise at Yancy Street

Transitional Resources

West Seattle 44 units of permanent supportive housing for formerly homeless individuals with significant supportive services needs

Clay Apartments

Low Income Housing Institute

West Seattle 75 units of permanent housing for veterans and formerly homeless individuals with limited supportive services needs

Broadway Hall Apartments

Low Income Housing Institute

Capitol Hill 34 units of permanent housing for formerly homeless individuals with limited supportive services needs

Permanently Affordable For-Sale Homes

Lake City Townhomes Phase 1

Habitat for Humanity Seattle-King County

Lake City 8 resale-restricted, permanently affordable four-bedroom townhomes for low-income first-time homebuyers

South Park Cottages

Habitat for Humanity Seattle-King County

South Park 13 resale-restricted, permanently affordable two-bedroom cottages for low-income first-time homebuyers

Table 2: OH-Funded Housing Under Development and Under Construction

Prior- and current-year OH funding awards will culminate in 43 newly completed rental buildings comprising over 5,400 new affordable apartments in the coming years. Prior- and current-year OH funding awards will yield 179 new permanently affordable for-sale homes across 11 homeownership developments. The buildings and homes listed below were either under construction or preparing for permitting and construction as of December 31, 2021.

Project Name

Project Sponsor

Neighborhood Description

(Shading indicates projects funded in 2021)

Rental Apartments

12th and Spruce

Plymouth Housing

First Hill 100 units of permanent supportive housing serving individuals experiencing chronic homelessness

?l?al

Chief Seattle Club

Pioneer Square 75 units for a mix of extremely low-, very low-, and low-income individuals with an emphasis on urban native people experiencing homelessness

Africatown Plaza

Africatown Community Land Trust / Community Roots Housing

Central District 75 units for a mix of extremely low-, very low-, and low-income individuals with an emphasis on urban native people experiencing homelessness

Ballard Crossing PSH

Inland Group / Plymouth Housing

Ballard 79 units of permanent supportive housing serving individuals experiencing chronic homelessness

Beacon Hill Apartments

Sea Mar Community Health Centers

Beacon Hill 39 studio apartments for women experiencing chronic homelessness with an emphasis on Latinx women and women of color

Bitter Lake PSH

DESC

Bitter Lake 100 units of permanent supportive housing serving individuals experiencing chronic homelessness

Boylston Apartments

Low Income Housing Institute

Capitol Hill 55 studio apartments serving individuals experiencing homelessness

Broadway Urbaine

TAP Collaborative

Capitol Hill 100 studio and one-bedroom apartments and live-work units for individuals with low incomes

Bryant Manor

FAME Housing Association

Central District 58 two-, three-, and four-bedroom apartments for families with extremely low incomes

Cedar Crossing Apartments

Bellwether Housing / Mercy Housing Northwest

Roosevelt 245 studio, one-, two-, and three-bedroom apartments for a mix of extremely low-, very low-, and low-income individuals and families

DESC Woodland

Woodland

Fremont 100 units of permanent supportive housing serving individuals experiencing chronic homelessness

Eclipse Fremont Apartments

GMD

Fremont 87 studio and one- and two-bedroom apartments for very low- and low-income families and individuals; 66 additional unrestricted units

El Centro Columbia City

El Centro de la Raza

Columbia City 87 one-, two-, and three-bedroom apartments for families and individuals with low, very low, and extremely low incomes

Elizabeth Thomas Homes

FAME/Equity Alliance of Washington / Catholic Housing Services

Rainier Beach 119 studio and one-, two-, and three-bedroom apartments for very low- and low-income families and individuals

Ethiopian Village

Ethiopian Community in Seattle / HumanGood

Rainier Beach 89 studio and one-bedroom apartments for older adults with extremely low, very low, and low incomes, with an emphasis on East African community

Flourish on Rainier

Bellwether Housing

Rainier Beach 185 studio, one-, two-, three-, and four-bedroom apartments for families and individuals with low and very low incomes

Goldfinch

Chief Seattle Club

Fremont 63 units of permanent supportive housing serving individuals experiencing homelessness and individuals with low incomes, with a focus on American Indian and Alaska Native elders

Good Shepherd Housing

Low Income Housing Institute

Central District 102 studio apartments for individuals experiencing homelessness and individuals with extremely low and very low incomes

Grand Street Commons

Mount Baker Housing Association

Mount Baker 204 studio, one-, two-, and three-bedroom apartments for families and individuals with low and very low incomes

Green Lake PSH

DESC

Green Lake 124 units of permanent supportive housing for individuals experiencing chronic homelessness

Harvard Hall Apartments

Low Income Housing Institute

Capitol Hill 69 studio apartments serving individuals experiencing homelessness

Hobson Place II

DESC

North Rainier 92 units of permanent supportive housing serving individuals experiencing homelessness

Lam Bow Apartments

Seattle Housing Authority

Delridge 79 one-, two-, and three-bedroom apartments for families and individuals with extremely low and very low incomes

Maddux Apartments

Mount Baker Housing Association

Mount Baker 165 studio, one-, two-, and three-bedroom apartments for very low- and low-income families and individuals

Martina Apartments

Inland Group / Catholic Housing Services

Greenwood 66 units of permanent supportive housing serving individuals experiencing chronic homelessness

MLK Mixed Use

Low Income Housing Institute

Othello 147 studio, one-, two-, and three-bedroom apartments for young adults experiencing homelessness, and families and individuals with very low and extremely low incomes

Mount Zion Senior Housing at 19th

Mount Zion Housing Development

Central District 61 studio and one-bedroom rental apartments for low-income seniors

Nesbit Family Housing

Low Income Housing Institute

Licton Springs 117 studio, one-, and two-bedroom apartments, and three-bedroom townhomes for families and individuals with extremely low and very low incomes

New Hope Family Housing

New Hope Community Development Institute

Central District 86 studio, one-, two-, and three-bedroom apartments for families and individuals with low, very low, and extremely low incomes

North Lot

SCIDpda

Chinatown-International District,

North Beacon Hill 153 studio, one-, two-, and three-bedroom apartments for individuals and families with very low incomes

Northaven III

Northaven / HumanGood

Northgate 85 studio and one-bedroom apartments for extremely low-, very low-, and low-income senior individuals and couples

Polaris at Lake City

Inland Group

Lake City 257 studio, one-, two-, and three-bedroom apartments for very low- and low-income families and individuals

Polaris at Rainier Beach

Inland Group

Rainier Beach 305 units for low-income families and individuals, with 20% set aside for people with disabilities

Pride Place

Community Roots Housing

Capitol Hill 118 units for low-income and extremely low-income seniors with an emphasis on the LGBTQ community

The Rise on Madison

Bellwether Housing / Plymouth Housing

First Hill 248 studio, one-, two-, and three-bedroom apartments for low-income families and individuals, and 112 units of permanent supportive housing for seniors who have experienced chronic homelessness

Sacred Medicine House

Chief Seattle Club

Lake City 117 units for extremely low-, very-low, and low-income individuals with an emphasis on urban native people experiencing homelessness

Sawara Apartments

Seattle Housing Authority

Yesler Terrace 113 one-, two-, three-, and four-bedroom apartments for families and individuals with low incomes

St. Luke's Affordable Housing

Bridge Housing Corporation

Ballard 85 studio, one-, two-, and three-bedroom apartments for families and individuals with low and very low incomes

Uncle Bob's Place

InterIm Community Development Association

Chinatown-International District 126 studio, one-, two, and three-bedroom apartments for families and individuals with low incomes

Via 7

Mount Baker Housing Association

Rainier Beach 220 studio, one-, two-, and three-bedroom apartments for individuals and families with very low incomes

Willow Crossing

GMD

Othello 213 one-, two-, and three-bedroom apartments for families and individuals with low incomes

Yesler Family Housing

Seattle Chinatown International District PDA / Community Roots Housing

Yesler Terrace 158 studio, one-, two-, and three-bedroom apartments for families and individuals with extremely low and low incomes

YouthCare South Annex

Community Roots Housing

Capitol Hill 84 studio and one-bedroom apartments for young adults experiencing homelessness and young adults with very low and extremely low incomes

Permanently Affordable For-Sale Homes

Capitol View

Habitat for Humanity

Capitol Hill 13 resale-restricted, permanently affordable condominiums through renovations to a 1901 apartment building

Copper Pines

Habitat for Humanity

Loyal Heights 7 resale-restricted, permanently affordable townhomes for low-income first-time homebuyers

Corvidae

Habitat for Humanity / Frolic

Columbia City 2 limited equity cooperative homes, within a project of 10 total, for low-income first-time homebuyers

Highland Terrace

Habitat for Humanity

Highland Park 12 resale-restricted, permanently affordable two-bedroom cottages for low-income first-time homebuyers

Lake City Townhomes Phase 2

Habitat for Humanity

Lake City 8 resale-restricted, permanently affordable four-bedroom townhomes for low-income first-time homebuyers

Olympic Ridge

Habitat for Humanity

Central District 17 resale-restricted, permanently affordable one and two-bedroom condo units for low-income first-time homebuyers

PAHO

Homestead Community Land Trust / Edge Developers

Phinney Ridge 19 resale-restricted, permanently affordable one, two, and three-bedroom condo units for low-income first-time homebuyers

Phinney Condos

Homestead Community Land Trust / Edge Developers

Phinney Ridge 19 resale-restricted, permanently affordable one, two, and three-bedroom condo units for low-income first-time homebuyers

Trenton Townhomes

Habitat for Humanity

Westwood 4 resale-restricted, permanently affordable three- and four-bedroom townhomes for low-income first-time homebuyers

U-Lex at Othello Square

HomeSight

Othello 68 limited equity cooperative homes for low-income first-time homebuyers

Village Gardens

Homestead Community Land Trust

Leschi 10 resale-restricted, permanently affordable three-bedroom townhomes for low-income first-time homebuyers plus 6 unrestricted townhomes

II. FUNDS AWARDED IN 2021

The Office of Housing awarded $153 million in 2021 to build, acquire, and preserve 1,910 affordable rental homes in neighborhoods across Seattle. These investments support a spectrum of housing types for low-income residents, including supportive housing for those experiencing homelessness and apartments for low-income individuals and families.

Table 3: Rental Housing Program Funds Awarded

New production, reinvestment, and preservation

Fund Source 2021 Funding Awarded Description

Seattle Housing Levy $15.2 M The voter-approved Seattle Housing Levy avails approximately $29 million per year for the rental housing program. In 2020, a pilot initiative accelerated Levy resources, by designating two years of Rental Production and Preservation into a single year. As a result, the total Levy funds awarded in 2021 for rental production and preservation was markedly smaller than in previous years.

Seattle Mandatory Housing Affordability (MHA) payments $50.0 M In areas subject to MHA requirements, residential and commercial developers' make financial contributions toward affordable housing in cases when they do not opt to pursue a performance option.

Seattle Incentive Zoning / Bonus payments $0.4 M Residential and commercial developers whose developments received permits prior to MHA implementation continue to make payments to the City under the Incentive Zoning program.

Other local funds, including Seattle Payroll Expense Tax $71.4 M The Seattle Payroll Expense Tax is a business excise tax applicable to business with a local annual payroll of at least $7,386,494 in the prior calendar year.

Federal funds, which may include HOME, CLFR, or other $16 M The HOME Investment Partnerships Program (HOME) provides formula grants to states and municipalities to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing.

Coronavirus Local Fiscal Recovery Funds (CLFR), a part of the American Rescue Plan Act (ARPA), provide local governments resources to support households, businesses, and public services impacted by the pandemic.

Total $153.0 M

OH awarded an additional $5.78 million to develop 33 permanently affordable homes for first-time homebuyers. OH's Home Repair Program provided nearly $830,000 in loans and grants to low-income homeowners to address critical health, safety, and structural issues. OH's HomeWise Weatherization Program expended $4 million to provide energy efficiency and indoor air quality improvements in affordable apartment buildings serving low-income renters and single-family homes with low-income owners.

Table 4: Homeownership Development Funds

Permanently affordable, resale-restricted for-sale housing

Fund Source 2021 Funding Description

Seattle Housing Levy $4.08M The 7-year Seattle Housing Levy dedicates $14.3 million to a variety of homeownership programs, including development of new permanently affordable for-sale housing and downpayment assistance loans for income-qualified first-time homebuyers

Mandatory Housing Affordability (MHA) payment $1.70M A portion of the developer payment proceeds under the MHA program (see description above, under Rental Housing) is intended for development of permanently affordable, resale-restricted for-sale housing.

Total $5.78M

Table 5: Home Repair Program Funds

Fund Source 2021 Funding Description

Seattle Housing Levy (program income) $394,236 Loans made with 1995 Levy home repair loan repayments

Community Development Block Grant $284,310 Loans made with CDBG home repair loan repayments

Seattle Housing Levy $151,451 Grants made with 2016 Levy funding

Total $829,997

Table 6: Low-Income Weatherization Program Funds

Fund Source 2021 Funding* Description

Seattle City Light $1.69M Energy efficiency improvements to electrically heated homes and apartments in Seattle City Light's service area

Seattle Housing Levy (program income) $0.15M Oil to electric heat conversions; funding comes from 1995 Housing Levy home repair loan repayments

Washington State Capital Budget $0.79M Energy efficiency, asthma reduction and indoor air quality improvements in homes and apartments; funding is provided through the State Energy Matchmaker Program

Federal $1.20M Energy efficiency and indoor air quality improvements in homes and apartments; funding from Department of Health and Human Services, Department of Energy, and Bonneville Power Administration

Puget Sound Energy $0.26M Energy efficiency and health and safety improvements for gas heated buildings

Total $4.09M

* Indicates capital funds expended in 2021. Grants may have been awarded in an earlier year.

Emergency Rental Assistance

In 2021, the City continued its work to administer emergency rental assistance to provide stability for renters with low incomes who were economically impacted by the COVID-19 pandemic.

To distribute available funds, the City employed a three-pronged strategy that reached more than 6,300 Seattle renters whose housing stability was jeopardized by the pandemic's economic impacts. This approach to program implementation emphasized efficient and trusted partnerships, through:

a direct contract with United Way of King County, building on their strong foundation of existing eviction prevention work;

innovative delivery by the Seattle Office of Housing's direct support to nonprofits that operate city-funded affordable housing; and

intentionality with respect to communities who were most negatively impacted by COVID-19, through direct engagement with community-based organizations, including agencies led by and serving BIPOC, immigrant, and refugee communities.

By the end of 2021, approximately $27.6 million in rental assistance had been paid out to 6,355 households. For households served from October to December 2021, of those who provided such data 53% lived in a home that had children. The three-program strategy ensured that federal funding could be quickly disbursed in a streamlined yet equitable manner: across the Community-Based Organizations, United Way, and Office of Housing programs, about 63% of rental assistance recipients identified as people of color, and 17% of Hispanic ethnicity.

Capital Funds Leveraged

Rental Housing Development: Of the City's total capital investment in rental housing production and reinvestment, $138 million is dedicated to new housing development. This $138 million in OH investment will result in a total investment of $572 million in new low-income housing, not including funds that pay for ground floor commercial or community spaces. The $434 million that augments City funding derives from multiple sources, with the largest being private activity bonds and private equity investment through the federal Low-Income Housing Tax Credit program, both of which are administered by the Washington State Housing Finance Commission.

Homeownership Development: Development of homeownership housing typically leverages between $4 and $5 per dollar spent of City funding. The homebuyer's mortgage, borrowed from a conventional mortgage lender, and their down payment amount constitutes the largest share of that leverage, averaging roughly two-thirds of the cost of each home. Other subsidy sources include State Housing Trust Fund, Federal Home Loan bank and HUD's Self-Help Homeownership, Program (SHOP) along with philanthropic and volunteer labor contributions.

III. PROJECTS FUNDED IN 2021

Table 7: Rental Housing, New Development Projects, 2021

Project Name

Project Sponsor

Neighborhood Project

Description Restricted Units Capital Funding (City Only, $M)

Total Levy MHA Total City Levy MHA Other

DESC Woodland

DESC

Fremont Construction of permanent supportive housing (studio apartments) serving individuals who are disabled and experiencing chronic homelessness (0-30% AMI)

Robust on-site supportive services provided 100 100 -- 10.7 10.7 -- --

Sawara Apartments

Seattle Housing Authority

Yesler Terrace Construction of one-, two-, three-, and four-bedroom apartments serving families and individuals with incomes up to 30% and 60% AMI

Funding for this project fulfills Office of Housing commitments in Yesler Terrace Cooperative Agreement

Participant in Housing Development Consortium's Exemplary Building Program, which explores new technologies and practices to enhance energy efficiency of affordable housing buildings 113 113 -- 3.5 3.5 -- --

Grand Street Commons

Mount Baker Housing Association

Mount Baker Construction of studio, one-, two-, and three-bedroom apartments serving families and individuals with incomes up to 50% and 60% AMI

Located two blocks from future Judkins Park light rail station on remediated brownfield site, within a larger mixed-income, mixed-use community 204 -- 204 14.4 -- 2.3 12.1

Beacon Hill Apartments

Sea Mar Community Health Centers

Beacon Hill Acquisition of newly constructed studio apartments serving women experiencing chronic homelessness (0-30% AMI), with a focus on Latinx women and women of color

On-site case management services with access to Sea Mar Community Health Center's specialized and culturally responsive supportive services 39 -- 39 5.4 -- 5.4 --

Boylston Apartments

Low Income Housing Institute

Capitol Hill Acquisition of newly constructed studio apartments serving individuals experiencing homelessness (0-30% AMI and up to 50% AMI)

On-site case management services 55 -- 55 9.1 -- 5.6 3.5

Broadway Hall Apartments

Low Income Housing Institute

Capitol Hill Acquisition of newly constructed studio apartments serving individuals experiencing homelessness (0-30% AMI and up to 50% AMI)

On-site case management services 34 -- 34 6.5 -- 3.0 3.5

Harvard Hall Apartments

Low Income Housing Institute

Capitol Hill Acquisition of newly constructed studio apartments serving individuals experiencing homelessness (0-30% AMI and up to 50% AMI)

On-site case management services 69 -- 69 11.6 -- 7.7 3.9

Broadway Urbaine

TAP Collaborative

Capitol Hill Construction of studio and one-bedroom apartments and live-work units serving individuals with incomes up to 60% AMI

Ground-floor uses include retail space 100 --- 100 4.0 -- 3.0 1.0

El Centro Columbia City

El Centro de la Raza

Columbia City Construction of one-, two-, and three-bedroom apartments serving families and individuals with incomes up to 30%, 50%, and 60% AMI

Development will include Church of Hope community church and a child development center managed by El Centro de la Raza 87 -- 87 11.6 -- 4.5 7.1

MLK Mixed Use

Low Income Housing Institute

Othello Construction of studio, one-, two-, and three-bedroom apartments serving young adults experiencing homelessness, families, and individuals with incomes up to 30% and 50% AMI

Development will include an early learning center managed by Refugee Women's Alliance (ReWA) 147 -- 147 11.3 -- 4.5 6.8

New Hope Family Housing

New Hope Community Development Institute

Central District Construction of studio, one-, two-, and three-bedroom apartments serving families and individuals with incomes up to 30%, 50%, and 60% AMI

New Hope Missionary Baptist Church has been a presence in the Central District since 1949; this development leverages existing church-owned property and may use additional density provided by Ordinance 126445 86 -- 86 13.4 -- 5.6 7.8

St. Luke's Affordable Housing

Bridge Housing Corporation

Ballard Construction of studio, one-, two-, and three-bedroom apartments serving families and individuals with incomes up to 50% and 60% AMI

St. Luke's Episcopal Church has been a presence in Ballard for over 130 years; this development leverages existing church-owned property and may use additional density provided by Ordinance 126445 85 -- 85 9.7 -- 4.0 5.7

YouthCare South Annex

Community Roots Housing

Capitol Hill Construction of studio and one-bedroom apartments serving young adults experiencing homelessness and young adults with incomes up to 30%, 50%, and 60% AMI

Development will include 30,000 square foot facility for YouthCare's Workforce Development HUB, which will provide education and employment training services for young adults 84 -- 84 9.7 -- 4.0 5.7

Goldfinch

Chief Seattle Club

Fremont Acquisition of permanent supportive housing (studio apartments) serving individuals experiencing homelessness and individuals with low incomes (0-30% and up to 50% AMI), with a focus on American Indian and Alaska Native elders

Chief Seattle Club will provide culturally relevant supportive services for Native elders through on-site case management 63 -- -- 11.2 -- -- 11.2

Keiro Site

Africatown Community Land Trust

Central District Acquisition of former Keiro Nursing and Rehabilitation Center for future development of rental housing serving individuals and families with incomes up to 60% AMI

Prior to development, the site's interim use is as a 125-unit shelter for individuals experiencing homelessness 285 -- -- 5.8 -- -- 5.8

Total New Development 1,551 213 990 $138.0 M $14.2 M $50.0 M $74.2 M

Table 8: Rental Housing, Reinvestment and Preservation, 2021

Project Name

Project Sponsor

Neighborhood Project

Description Restricted Units Capital Funding (City Only, $M)

Total Levy MHA Total City Levy MHA Other

Union Hotel

DESC

Pioneer Square Interior and exterior health and safety updates, replacement of obsolete building systems in building constructed in 1905

Building currently provides studio apartments and on-site supportive services to individuals who have experienced homelessness (0-30% AMI) 50 -- -- 1.0 -- -- 1.0

NP Hotel & Eastern Hotel

InterIm Community Development Association

Chinatown-International District Safety, sustainability, and operational efficiency updates to two historic buildings constructed in the early 1900s

Buildings currently provide studios, one-, two-, and four-bedroom apartments serving families and individuals with incomes up to 30%, 40%, and 50% AMI 107 -- -- 2.9 -- -- 2.9

Jensen Block

Low Income Housing Institute

South Lake Union Repair exterior stairs

Building currently provides studio and one-bedroom apartments to individuals with incomes up to 30% and 40% AMI 30 -- -- 2.0 -- -- 2.0

Pacific Apartments

Plymouth Housing

Downtown Rehabilitation of historic building, originally constructed in 1916, to support long-term building operation

Conversion of single-room occupancy units to studios 88 88 -- 8.1 0.5 -- 7.6

Plymouth on Stewart

Plymouth Housing

Downtown Emergency repair of sidewalk in public right-of-way adjacent to building 84 84 -- 1.0 0.5 -- 0.5

Total Reinvestment and Preservation 359 172 -- $15.0 M $1.0 M -- $14.0 M

Table 9: Rental Housing, Short-Term Financing, 2021

Project Name

Project Sponsor

Neighborhood Project

Description Restricted Units Capital Funding (City Only, $M)

Total Levy MHA Total City Levy MHA Other

Aurora Heights Housing

Low Income Housing Institute

Bitter Lake Acquisition of a site for future development of affordable apartments serving individuals earning a range of incomes up to 30%, 50%, and 60% AMI 350 350 -- 6.0 6.0 -- --

Clay Apartments

Low Income Housing Institute

Capitol Hill Acquisition of a newly constructed multifamily residential building to rapidly serve veterans and individuals experiencing homelessness 75 75 -- 11.9 11.9 -- --

Thunderbird Site

Mt. Baker Housing Association

Rainier Beach Acquisition of a transit-oriented site for future development of affordable apartments serving families and individuals earning at or below 60% AMI 232 232 -- 6.4 6.4 -- --

Total Short-Term Financing 657 657 -- $24.3 M $24.3 M -- --

Table 10: Homeownership Program, New Development Projects, 2021

Project Name

Project Sponsor

Location Project

Description Total Funded Units Levy

Units MHA

Units Capital Funding ($M)

Total City $ Levy $ MHA $ Other $

PAHO

Homestead Community Land Trust and Edge Community Developers

Phinney Ridge New construction of 19 resale-restricted, permanently affordable one-, two-, and three-bedroom condo units for low-income first-time homebuyers 19 19 -- 1.9 1.9 -- --

Corvidae

Habitat for Humanity, Seattle-King County and Corvidae

Columbia City 2 limited equity cooperative homes, within a project of 10 total homes, for sale to low-income first-time homebuyers 2 2 -- 0.2 0.2 -- --

Habitat 15th Highland Park

Habitat for Humanity, Seattle-King County

Westwood-Highland Park New construction of 12 resale-restricted, permanently affordable two-bedroom cottages for low-income first-time homebuyers 12 12 -- 1.3 1.3 -- --

Habitat 14th

Habitat for Humanity, Seattle-King County, Green Canopy

Capitol Hill New construction of 17 resale-restricted, permanently affordable one- and two-bedroom condo units for low-income first-time homebuyers 17 -- 17 1.7 -- 1.7 --

Total 50 33 17 $5.1 $3.4 $1.7 --

Table 11: Home Repair Program, Loans and Grants, 2021

Type of Assistance Project Description Awards Made* Total Funding Average Assistance

Loans Repairs that address critical health, safety, and structural integrity issues. Typical repairs include roof replacements, side sewers, plumbing, and electrical work. 0% interest loans, with option for deferred payment for some borrowers. Homeowners often also receive additional grants for weatherization improvements. 37 $678,546 $18,339

Grants Repairs that address immediate health, safety, and structural integrity issues, and repairs needed to access weatherization grants. Grants are provided to owners unable to access a home repair loan. 23 $151,451 $6,585

Total 60 $829,997

*The 60 awards shown above supported 59 households, as one household participated in two transactions in 2021.

Table 12: Low-Income Weatherization Program, Completed Single-Family Projects, 2021

Project Name Owner Project Description Units Funding

Single-Family Home Weatherization Low-income homeowners citywide Energy efficiency and indoor air quality upgrades at single-family homes, such as insulation, air sealing, new heating systems, hot water heaters, and bathroom fans

Average grant amount: $16,534 82 $1,355,761

Single-Family Oil-to-Electric Conversions Low-income homeowners citywide Convert single-family homes from oil furnaces to efficient electric heat pump systems 30 $366,715

Single-Family Weatherization Total 112 $1,722,476

Table 13: Low-Income Weatherization Program, Completed Multifamily Projects, 2021

Project Name Owner Project Description Units Funding

Morrison Hotel DESC Boiler replacement, centralized ventilations systems, energy recovery venting, upgraded exhaust fans and efficient LED lighting 215 $839,911

Stone Way Apartments Bellwether Housing Redesigned and installed energy recover ventilation system and efficient LED lighting 70 $125,545

Kerner Scott House DESC Efficient LED Lighting & ductless heat pumps 40 $79,835

3904 MLK SEED Air Sealing, ventilation, ductless heat pumps & heat pump water heaters 33 $272,954

Cascade Shelter Project Cascade Shelter Project Insulation, air sealing, window replacements, ductless heat pumps & ventilation upgrades 12 $192,700

Multifamily Weatherization Total 370 $1,510,946

IV. HOUSING INVESTMENTS THROUGHOUT SEATTLE

Housing equity and equitable development are advanced through City location priorities for housing investment. Seattle housing policies direct investments to neighborhoods where low-income residents, including many people of color, face displacement due to rising rents and gentrification. This affordable housing helps sustain cultural communities and enables residents to stay in their neighborhoods as transit and other improvements are made. Seattle housing policies also direct investments to higher cost areas where many opportunities are available, including schools, transportation, and amenities.

OH prioritizes investments in locations that:

Provide access to frequent transit

Provide access to opportunity

Advance equitable development goals and address displacement

Serve needs of residents

In addition, for purposes of investing payment funds from the Mandatory Housing Affordability program, OH considers a project's proximity to areas where development activity has generated payment contributions.

The following maps and table illustrate how the location of OH-funded affordable housing addresses City priorities.

Map A: Rental Housing Investments

Map B: Homeownership Investments

Map C: Location Within Urban Center/Urban Village Boundaries

Table 14: OH Investments by Urban Center/Urban Village

Map D: Access to Frequent Transit Service

Map E: Access to Opportunity Index

Map F: Displacement Risk Index

Map A: Rental Housing Investments

OH funds production and preservation of rental housing that will serve low-income Seattle residents for a minimum of 50 years.

Map B: Homeownership Investments

OH creates opportunities for first-time homebuyers through investments in permanently affordable homes as well as down payment assistance loans.

Map C: Location Within Urban Village Boundaries

OH prioritizes investments throughout the city, including in Seattle's most amenity-rich neighborhoods in terms of transit, schools, parks, retail and other services, in alignment with the City's Urban Village strategy.

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Table 14: OH Investments by Urban Center/Urban Village

For new development of affordable rental and for-sale housing

Urban Center and Urban Village Groupings1 Projects Funded in 2021

Project Name(s) Funded Units Total City $M

12th Avenue, Capitol Hill, Eastlake, First Hill Boylston Apartments (55 rental)

Broadway Hall Apartments (34 rental)

Broadway Urbaine (100 rental)

Harvard Hall Apartments (69 rental)

Olympic Ridge (17 for-sale)

Sawara (113 rental)

YouthCare South Annex (84 rental) 455 rental

17 for-sale $44.4 rental

$1.7 for-sale

23rd & Union-Jackson, Madison-Miller Keiro Site (285 rental)

New Hope Family Housing (86 rental) 371 rental $19.2 rental

Admiral, Morgan Junction, South Park, West Seattle Junction, Westwood-Highland Park Highland Terrace (12 for-sale) 12 for-sale $1.3 for-sale

Aurora-Licton Springs, Bitter Lake Village

Ballard, Crown Hill, Greenwood-Phinney Ridge PAHO (19 for-sale)

St. Luke's Affordable Housing (85 rental) 85 rental

19 for-sale $9.7 rental

$1.9 for-sale

Belltown, Chinatown-ID, Commercial Core, Denny Triangle, Pioneer Square

Columbia City, Mt. Baker, North Beacon Hill, Othello, Rainier Beach Corvidae (2 for-sale)

El Centro Columbia City (87 rental)

Grand Street Commons (204 rental)

MLK Mixed Use (147 rental) 438 rental

2 for-sale $37.3 rental

$0.2 for-sale

Fremont, Green Lake, Wallingford DESC Woodland (100 rental)

Goldfinch (63 rental) 163 rental $21.9 rental

Lake City, Northgate

Queen Anne, Uptown

Ravenna, Roosevelt, University District

South Lake Union

Total 1,551 rental

33 for-sale $138.0 rental

$5.1 for sale

1 These geographic areas are defined in the Council-adopted Housing Funding Policies. Investments made outside urban center and urban village boundaries are grouped with the nearest urban center or village.

Map D: Access to Frequent Transit Service

Access to transit is a priority for all OH investments, as transportation costs are second only to housing costs for most low-income households and many low-income households do not own a car. In particular, OH prioritizes locations near high-capacity transit and light rail station areas, both existing and planned.

Map E: Access to Opportunity Index

OH prioritizes investments in locations that afford low-income residents the greatest access to opportunities such as jobs, quality education, parks and open space, and services.

Map F: Displacement Risk Index

OH prioritizes locations that support community development investments in low-income communities, including neighborhoods where marginalized groups have historic roots or access to culturally relevant business and services, and locations where low-income residents have a high risk of displacement.

V. NEW RENTAL HOUSING FUNDED IN 2021: FUNDING PRIORITIES & CHARACTERISTICS

New rental housing projects funded in 2021 include both population-specific housing and buildings that are open to any income-eligible resident. The projects serve the range of populations prioritized in the OH Housing Funding Policies adopted by City Council. Projects sponsored by organizations grounded in Black, Indigenous, and People of Color (BIPOC) communities also reflect Citwyide racial equity goals.

Homeless individuals and families: Seven buildings will provide 375 apartments serving people experiencing homelessness, with varying levels of on-site supportive services offered;

Seniors and people with disabilities: One building (DESC Woodland) will provide 100 apartments serving people with multiple special needs, and one building (Goldfinch) will provide 63 apartments for seniors, with a focus on American Indian and Alaska Native elders;

Low-wage working families and individuals: Nine buildings and one site for future affordable housing development will provide 1,176 apartments to serve a range of household incomes and family types;

Support for project sponsors grounded in BIPOC communities: Of the 12 development sponsors supported through 2021 investments in new rental housing development, five are explicitly rooted in, led by, and serve communities of color. Africatown Community Land Trust, Chief Seattle Club, El Centro De La Raza, New Hope Community Development Institute, and Sea Mar Community Health Centers are deeply embedded in the communities they serve and are committed to providing culturally-specific housing and services that are responsive to their communities' unique needs. Another three development sponsorsSeattle Housing Authority, Low Income Housing Institute, and Mount Baker Housing Associationare led at the highest level by people of color.

VI. DEMOGRAPHICS OF HOUSEHOLDS SERVED, BY PROGRAM

Rental Housing

In 2020, the year of the latest available data , 14,552 OH-funded affordable apartments were in operation. This number includes apartments that were newly placed in service in 2020, and thus had not been in operation for a full year at the time of data collection. This housing served 15,819 resident households over the course of the year.

Race / ethnicity: 57% of households reporting demographic information (89% of total households served) are led by a person of color; 17% of all households served are led by an individual who identified as Hispanic.

Low-Income households:

o 72% Extremely Low-Income (up to 30% AMI)

o 19% Very Low-Income (31% - 50% AMI)

o 8% Low-Income/Moderate Income (51% - 80% AMI)

Special needs: 42% of all renter households served (6,708 households) were identified as having a head of household with special needs; 18% of those heads of household were identified as having multiple special needs.

Selected 2021 Income Levels

AMI = Area Median Income

30% AMI 50% AMI 60%AMI

Single Person $24,300 $40,500 $48,600

3-person Household $31,250 $52,100 $62,500

Special Needs Households Served

6,708 households (of 15,819 total renter households), 2020

Homebuyer Assistance

OH has provided purchase assistance for first-time homebuyers since the early 1990's, using Housing Levy proceeds, federal grants, and other fund sources. Households with incomes up to 80% AMI are eligible, although some homeownership development organizations chose to serve a lower-income population. In recent years, OH has increasingly funded the development of new permanently affordable for-sale housing, which is available at an affordable price upon initial sale and resale for eligible home buyers for at least 50 years.

Home purchase assistance promotes more diverse and equitable neighborhoods, and provides opportunity for households with lower incomes, and for racial and ethnic groups with lower rates of homeownership, to access greater housing stability and build intergenerational wealth. Demographic data is based on 347 first-time homebuyers assisted over the course of the past two housing levies.

Home purchase assistance has been provided to:

Race / ethnicity: 45% of homebuyers reporting demographic data identified as people of color or of Hispanic ethnicity

Low-income households:

o 1% Extremely Low-Income (up to 30% AMI)

o 40% Very Low-Income and Low-Income (31% - 60% AMI)

o 59% Low-Income/Moderate Income (61% - 80% AMI)

Home Repair

The Home Repair program assists low-income homeowners to make critical repairs that address safety concerns or threats to their homes' physical condition. The program also acts as an important anti-displacement tool, enabling low-income homeowners to stay in their homes even in the face of a cracked side sewer or a failing roof. Forms of financial aid include loans to homeowners with incomes up to 80% AMI and grants to homeowners with incomes up to 50% AMI.

In 2021, the program provided 37 loans and 23 grants to 59 homeowners (one household participated in two transactions).

Race / ethnicity: 45% of those homeowners reporting demographic data identified as people of color or of Hispanic ethnicity

Low-income households:

o 58% Extremely Low-Income (up to 30% AMI)

o 18% Very Low-Income (31% - 50% AMI)

o 7% Low-Income (51% - 60% AMI)

o 17% Low-Income/Moderate Income (61% - 80% AMI)

Weatherization Grants

The Weatherization Program provides grants for energy conservation and indoor air quality improvements, resulting in lower energy bills and healthier homes. Assistance is available for low-income homeowners up to 80% AMI. In rental housing at least half the residents must be low-income, generally up to 60% AMI. Household eligibility requirements and allowable uses of funds vary somewhat depending on the fund source used. Demographic data of households served is reported for buildings that passed inspections in 2021 but not necessarily reaching the point of project completion.

Multifamily Housing

Program investments in multifamily buildings orient primarily to subsidized housing properties, including buildings owned and operated by nonprofit or other mission-driven housing providers, Seattle Housing Authority, and King County Housing Authority. These investments improve residents' living conditions, reduce operating costs for housing providers, and help preserve the buildings for the long-term.

Demographic analysis reflects data for approximately 773 renter households:

People of Color: 85% of reporting households

Low-income households (94 Households did not report):

o 2% Extremely Low-Income (up to 30% AMI)

o 37% Very Low-Income (31% - 50% AMI)

o 59% Low-Income (51% - 60% AMI)

o 2% Low-Income/Moderate Income (61% - 80% AMI)

Single Family Homes

In 2021, OH staff inspected and approved energy efficiency and health and safety upgrades at 52 single family homes, most of which were owner-occupied. Residents of these homes, all of whom were low-income, benefit from improved health and quality of life, lower utility bills, and home upgrades that will improve the durability and sustainability of their homes.

Demographic analysis reflects data for approximately 52 single-family households:

People of color: 50% of reporting households

Low-income households (10 households did not report):

o 33% Extremely Low-Income (up to 30% AMI)

o 19% Very Low-Income (31% - 50% AMI)

o 15% Low-Income (51% - 60% AMI)

o 33% Low-Income/Moderate Income (61% - 80% AMI).

MORE INFORMATION

For more information, contact the City of Seattle Office of Housing or visit www.seattle.gov/housing.

Office: Seattle Municipal Tower

700 Fifth Avenue, Suite 5700

Seattle, WA 98104

Mail: City of Seattle Office of Housing

PO Box 94725

Seattle, WA 98124-4725

Phone: 206.684.0721

Email: housing@seattle.gov