CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

AN ORDINANCE relating to the redevelopment of Yesler Terrace by the Housing Authority of the City of Seattle; authorizing the Mayor to execute an amendment to the Yesler Terrace Cooperative Agreement with the Housing Authority of the City of Seattle that was authorized by Ordinance 123961; authorizing the Director of Housing to implement the Cooperative Agreement as amended; and ratifying and confirming certain prior acts.

WHEREAS, the Housing Authority of the City of Seattle (“SHA”) has received a $30 million grant from the U.S. Department of Housing and Urban Development under the Choice Neighborhoods Initiative to partially fund the redevelopment of the public housing community known as Yesler Terrace in Seattle’s First Hill neighborhood into a mixed-income mixed-use community in partnership with public and private entities; and

WHEREAS, on September 21, 2012, the City and SHA signed the Yesler Terrace Cooperative Agreement (“Cooperative Agreement”), in which SHA committed to produce 561 units of Replacement Housing (as defined in the Cooperative Agreement) and 290 units of housing for households with incomes up to 60 percent of median income (“60% of AMI Housing”), and the City committed Office of Housing funds to assist with development of this housing; and

WHEREAS, Office of Housing (“OH”) funding is subject to the Housing Funding Policies adopted by Ordinance 124298, which state: “To the extent consistent with the Yesler Terrace Cooperative Agreement, OH may review and approve funding applications separate from the selection process described in subsections A and C of this section for SHA housing developments in Yesler Terrace Phase I and II, up to a maximum of $7.62 million in City funding”; and

WHEREAS, the Cooperative Agreement specifies an Office of Housing contribution not to exceed $2.4 million for a project developed in Phase I and an Office of Housing contribution in 2014 not to exceed $5.220 million for Phase II, with up to $1.8 million available in 2014 and up to $3.42 million available in 2016; and

WHEREAS, the Cooperative Agreement specifies city funding would be used to support Phase II replacement housing and 60% of AMI Housing units on block 2 and block 6; and

WHEREAS, SHA completed the housing project in Phase I, with the Office of Housing awarding $2.4 million for 118 units of Replacement Housing and 60% of AMI Housing; and

WHEREAS, SHA completed a housing project in Phase II on Block 2, with the Office of Housing awarding $1.8 million for 83 units of replacement housing and 60% AMI housing; and

WHEREAS, SHA completed a housing project, Hoi Mai Gardens, in Phase II on Block 6 with no City funding because the project closed on permanent financing in December of 2015, in advance of Cooperative Agreement authority for Office of Housing funding; and

WHEREAS, SHA proposed an alternate housing project, and the Office of Housing concurs that this project is ideal for contribution of the balance of Office of Housing funding authorized in the Cooperative Agreement; and

WHEREAS, the proposed project, Red Cedar, is located on Block 8 and the Office of Housing funding contribution would occur in 2017, and therefore the Director of Housing has proposed an amendment to the Cooperative Agreement to authorize funding for the project; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Mayor is authorized to execute, for and on behalf of The City of Seattle, an amendment, substantially in the form attached to this ordinance as Exhibit A, to the Yesler Terrace Cooperative Agreement dated September 21, 2012 (“Cooperative Agreement”), with the Housing Authority of the City of Seattle.

Section 2. The Director of Housing is authorized to implement the terms of the Cooperative Agreement for Phase II funding as amended pursuant to this ordinance.

Section 3. The execution by the Mayor of the Cooperative Agreement and any actions pursuant to the authority of this ordinance after its passage and prior to its effective date are ratified and confirmed.

Section 4. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ________ day of _________________________, 2017, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2017.

____________________________________

President ____________ of the City Council

Approved by me this ________ day of _________________________, 2017.

____________________________________

Edward B. Murray, Mayor

Filed by me this ________ day of _________________________, 2017.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)