AN ORDINANCE relating to low-income housing, modifying the allocation of funds among programs funded by the 1986 Housing Levy; abandoning and reappropriating funds under the 1997 Adopted Budget; authorizing amendments to the Administrative and Financial Plan for the Large Family Program; and authorizing related agreements.

WHEREAS, Ordinance 112904 (the "Levy Ordinance") submitted to the voters of The City of Seattle in 1986, and the voters approved, a Housing Levy collected in 1987-1994 for the purpose of subsidizing construction, rehabilitation and preservation of low income housing; and

WHEREAS, certain funds appropriated in the 1994 Adopted Budget for the Mixed-Income New Construction component of the Small Family Levy Program remain unexpended and unobligated; and

WHEREAS, there is a need for funds to replace public housing being demolished at Holly Park; and

WHEREAS, the Levy Ordinance provided that the City Council could make changes in programs, and in the allocation of funds among programs, in light of changes in housing conditions; and

WHEREAS, on April 8, 1997, the City's Housing Levy Oversight Committee voted to recommend that the City reprogram the funds described herein from the Small Family Levy Program to the Large Family Levy Program; Now, Therefore,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The appropriation made in the 1997 Budget (originally appropriated and carried forward from the 1994 Adopted Budget) of DHHS to the Mixed-Income New Construction component of the Small Family Levy Program is reduced in the amount of Five Hundred Ninety Thousand Four Hundred Twenty-one and No/00 ($590,421.00) and that amount is reappropriated and reallocated to the Large Family Levy Program.

Section 2. The 1993-94 Administrative and Financial Plan for the Large Family Program is amended to add the following language to page 7, Section 3:

Funds may be used to redevelop units located in garden communities. Densities may be higher at these project sites, although the overall redevelopment goals include replacing some of the low-income units off-site, thus reducing the overall numbers of low-income units within the garden communities.

Section 3. The Director of Housing and Human Services is authorized to enter into such agreements and amendments to existing agreements with the Seattle Housing Authority, and to take such other actions, as she shall deem necessary or appropriate to implement the intent of this Ordinance.

Section 4. The City Council finds that there has been a change in housing conditions since the adoption of the Levy Ordinance in 1986 that warrants the change in allocations set forth above. The changed condition is the need to replace obsolete units at Holly Park with new large family units.

Section 5. The City shall disperse no funds until the City has adopted by ordinance, and the City and the Seattle Housing Authority have executed, a Memorandum of Agreement as described in Resolution 29579.

Section 6. Any act consistent with the authority hereof and prior to the effective date hereof is hereby ratified and confirmed.

Section 7. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 1997, and signed by me in open session in authentication of its passage this _____ day of _________________, 1997. ___________________________________ President of the City Council

Approved by me this _____ day of _______________, 1997. ___________________________________ Norman B. Rice, Mayor

Filed by me this _____ day of __________________, 19____. ___________________________________ City Clerk 111709.DOC 6/2/97 HRT:GBH -v. 5