october 2013 · 7. pamela banks bio and resume 8. resolution 2013‐09: berneva refinance 9....

October 2013 Capitol Hill Housing Board Meeting Keys and Addenda

The agenda for the October meeting is long. There are six resolutions for the board to consider and act on. Please plan to attend for 2 hours. We will attempt to move through the agenda quickly as most are relatively routine items. Pamela Banks will be joining us for the majority of the meeting. Disclosures and recusals: Board members will review items on the agenda and make any necessary disclosures. Finance: The finance committee presents its regular report and introduces our 2014 Budget assumptions. We will face a 2014 with relatively flat revenue projections and significant increases in personnel expenses. The 2013 Qtr. 2 Dashboard is attached to your packet. We will present a brief update on our newly written financial policies in anticipation of a vote at the November board meeting. We have been offered an EQ2 loan from Union Bank. An EQ2 is an equity‐like product with lower than market interest and very flexible terms. We were approached by Union as one of their strong partners. Unlike a line of credit, an EQ2 investment is made in its entirety at close. Staff has identified a number of uses within our portfolio and predevelopment activities to effectively deploy this investment. The board will be asked to adopt Resolution 2013‐08. Executive Committee: Chris will update on board recruitment and the board will be asked to elect Pamela Banks to position 9, Resolution 2013‐13. Also, Resolution 2013‐12 to re‐elect Matt, Sharron, Rachel and Paige will be presented for action. These actions will take place at the end of the meeting. Asset Management: Staff will present two Resolution 2013‐09 and Resolution 2013‐10 for the refinance of the bank loans on the Berneva and Seneca respectively. Berneva’s loan is due with a balloon payment. Staff is recommending refinancing through Banner Bank. Their terms will provide significant extra cash flow in the building. The Seneca refinance also through Banner Bank will allow for some needed improvements. Staff will brief the board on Fredonia commercial space and the Denny Substation. We will present the board with an example or two of the building action plans that are being created as a part of our overall project assessment activities being led by Brad Lange. Presentations: Chris will update the board on the strategic planning process for 2013 tying in our retreat work with our strategic initiatives.

Upcoming Meetings and Events

Monday, Oct 14 CHH Board Meeting Wednesday, Oct 23 Fall All Staff Meeting (Board members welcome!) Monday, Oct 28 CHH Executive Committee Meeting Tuesday, Oct 29 CHH FOUNDATION Board Meeting Sunday, Nov 10 Urban League Annual Event Tuesday, Nov 12 CHH Board Meeting

NOTE DATE

Real Estate Development Discussion: The board will consider and be asked to support Resolution 2013‐11 which will allow us to acquire a property that we considered several months ago. We will make a presentation on the property in executive session pursuant to RCW 42.30.110 (b) and (c). Staff will also brief the board on other real estate and community work. Foundation Update: Michael will review the current status of the capital campaign and present the results of Omnivorous. Board Packet Attachments 1. Meeting Keys & Agenda 2. Consent Agenda and Attachments

a. Contracts and Expenditures b. September Board Minutes c. Asset Management Report and Minutes d. Asset Management dashboard e. Memo from the CHH Foundation f. Real Estate Development Report and minutes g. Executive Director Report

3. Finance Statements August 2013 4. Budget Assumptions 5. 2013 Quarter 2 Dashboard 6. Resolution 2013‐08: Union Bank EQ2 Loan 7. Pamela Banks Bio and Resume 8. Resolution 2013‐09: Berneva Refinance 9. Resolution 2013‐10: Seneca Refinance 10. Building Action Plans (presented at meeting) 11. Resolution 2013‐11: Mt. Baker TOD Project Authorization, Feasibility and Country Doctor

Partnership12. Resolution 2013‐12 Regarding Re‐electing Matt Roewe, Sharron O’Donnell, Paige Chapel and

Rachel Ben‐Shmuel to the PDA Board 13. Resolution 2013‐13 Regarding Electing Pamela Banks to the PDA Board

CAPITOL HILL HOUSING BOARD October 14, 2013

6:00 –8:00 PM Regular Meeting Admissions and Alumni Building

Seattle, WA

AGENDA 6:00 Call to Order (Lloyd)

1. Approve Consent Agenda Attachment 2 2. Disclosures and recusals

6:05 Public Comment (Not to exceed 15 minutes for combined speakers) 6:10 Treasurer and Finance Committee Report (O’Donnell & Fleming)

1. Financial Summary, Cash Management Report: August 2013 Attachment 3 2. Budget Assumptions Attachment 4 3. CHH Quarterly Dashboard Attachment 5 4. Financial Policies Verbal 5. EQ2 Resolution 2013‐08 Attachment 6

a. Identified potential uses

6:30 Executive Committee & Executive Director Report (Lloyd & Persons) 1. Board Seat Update Attachment 7 2. 2014 Board Seats Handout

6:45 Asset Management

1. Berneva Refinance Resolution 2013‐09 Attachment 8 2. Seneca Refinance Resolution 2013‐10 Attachment 9 3. Fredonia Commercial Space (Abers) Verbal 4. Denny Substation Update (Wong/Persons) Verbal 5. Building Action Plans Handout

7:15 Foundation and Communications Update (Seiwerath)

1. Campaign Update and Omnivorous Verbal

7:25 Real Estate Development Discussion (Dologite/Persons) 1. Resolution 2013‐11 Mt. Baker TOD Project Authorization, Feasibility and Country Doctor

Partnership Attachment 11 2. 12th Avenue Arts Update Verbal 3. Jefferson Wage Claim Wrap Up Verbal 4. Central Area work Verbal

7:45 Additional Resolutions

1. Resolution 2013‐12 Regarding Re‐electing Matt Roewe, Sharron O’Donnell, Paige Chapel and Rachel Ben‐Shmuel to the PDA Board Attachment 12

2. Resolution 2013‐13 Regarding Electing Pamela Banks to the PDA Board Attachment 13

7:55 Adjourn (Lloyd)

THIS PAGE INTENTIONALLY LEFT BLANK

CAPITOL HILL HOUSING BOARD MEETING AND ANNUAL MEETING

October 14, 2013 6:00 – 8:00 PM

Seattle University A&A Community Room Seattle, WA

CONSENT ITEMS

MINUTES AND REPORTS 1. September 2013 Board Meeting Minutes (attached for adoption) 2. Committee Reports and Minutes (attached for acceptance)

DONATIONS, TRANSACTIONS OVER $10,000 OR 1‐YEAR, AGREEMENTS WITH PUBLIC ENTITIES

Date Bldg/entity Contract with: Amount: Purpose

September 1,

2013 Hazel Plaza HUD $171,936.00

Annual Funding

Renewal (20 year

contract)

September 9,

2013

Gilman

Court Froula $16,550.00

Replace recalled fire

sprinkler heads (both

common area units)

September 20,

2013

Gilman

Court Newton Highlands, LLC $233,026.00

New lease for new

owners at Gilman Court

GP ACTIVITIES (information only)

Date Contract with: Amount Purpose

September 20, 2013

Reidel Roofing $21,210.00 Removal and replacement of existing roof under new heat pumps for the Fleming

October 2, 2013 ECCO $12,172.00 10% cost for installation of heat pumps for the Fleming

September 2013 Board Minutes

Capitol Hill Housing Regular Board Meeting

Seattle University A&A Room Seattle, WA 98122

September 16, 2013

Members Present: Alice Quaintance, Brian Lloyd, Andy Read, Catherine Hillenbrand, Drew Porter, Sharron O’Donnell, Farin Houk, Robert Schwartz, Rachel Ben-Shmuel, Paige Chapel Staff Present: Jill Fleming, David Dologite, Chris Persons, Josephine Wong, Billie Abers, Michael Seiwerath, Melissa Blankenship (taking minutes) Absent: Michael Malone, Dana Behar, Liz Dunn,Matt Roewe . 1. Agenda & Minutes: The September 16th meeting of the Capitol Hill Housing Board of Directors was called to order by Chair Brian Lloyd at 6:04 PM. Brian Lloyd pulled the Asset Management Committee minutes from the consent agenda. A motion to approve the Consent Agenda minus the Asset Management Committee minutes was made, seconded and passed unanimously. A correction to the Asset Management Committee Minutes was made to the last sentence of the paragraph regarding the Brewster in the Building Operations section. The final sentence should read, Public comments will be taken September 23rd on the Pontius Avenue Street vacation. A motion to approve the amended AMC minutes was made, seconded and passed unanimously. 2. Disclosures and recusals: Catherine Hillenbrand disclosed her involvement in Capitol Hill TOD discussions with the city and the community. Public comment: No public comment. 3. Treasurer and Finance Committee Report: Sharron presented the Treasurer and Finance Report. Our financial position looks positive and we are projected to end the year ahead of budget. The state auditor is scheduled to come in the middle of October. Jill has been updating our financial policies and our intent is to bring in a final draft to the November meeting for board approval. A motion to approve the Finance Report was made, seconded, and passed unanimously. 4. Budget Calendar: Brian stated that in October we will hear budget assumptions for 2014 and in November we will receive a draft for review. In December a full budget will be presented for approval. 5. Executive Director Report: Pamela Banks who is the CEO of the Urban League is very interested in joining the board. Chris and Brian have a meeting scheduled with her on October 1 and we hope to have her nomination on the agenda in November. There are four board members who were up for election in April. According to our Charter all three are still board members in good standing. Chris will connect with them and we will need to re-elect them at the October board meeting.


Page 2 of 3

Leadership Management Team Retreat: The role of the Leadership team has been redefined and we spent a lot of time discussing how the team would best serve the organization as a whole. We reviewed a draft charter and identified some items of merit and substance for the Leadership team to address. We focused on risk analysis and reviewed the strategic initiatives. We then discussed as a larger team how to continue to make CHH a great place to work and build the strongest possible team consistent with Strategic Initiative 2. In order to maintain continuity from the Board retreat, we invited Melora Hiller to facilitate. After we synthesize all of the information, a full presentation will be made to the board. Resolution 2013-06: Chris presented a resolution which will allow CHH to avoid maintaining an index of public records. CHH has never maintained an index and no one has ever asked us for one but they are required for public entities under the RCW unless the local board adopts a resolution and determination stating that keeping an index would be unnecessary and burdensome RCW 42.56.070 (4). We have consulted with our attorney’s in drafting this resolution. A motion to approve Resolution 2013-06 was made, seconded and passed unanimously. 6. Asset Management: Proposal for Fredonia Commercial Space: Chris referenced the Canterbury commercial lease negotiations matrix attached in the board packet and noted that the results demonstrate Billie’s excellent negotiations with the tenant. Billie reported that we have come to an LOI agreement with the new tenants. The final lease terms are noted on the matrix. Current tenants’ lease is up December 31st 2013. 7. Denny Substation Update: Josephine reported that a meeting was held with Phil West, Deputy Superintendent where ongoing operations mitigation of the street vacation was discussed. We are preparing our objections to the street vacation of Pontius Avenue at this time. We’re continuing our meeting with NBBJ, the architect for SCL, concerning landscaping and how to incorporate the Brewster into the future park plan. Chris added that the negotiations concern two main issues, public benefit in response to the street vacation and construction mitigation in response to the massive construction that will be occurring next to the Brewster. We are suggesting that the city donate parcel 3 to affordable housing as a pblic benefit. We’ve had a conversation with Mike O’Brian the energy chair on the Seattle City Council and they are aware of our request. Our objection to the street vacation is technically a formality but if we don’t do it we lose the opportunity to take any action in the future. Brad Lange conducted tenant surveys on a number of our buildings and one tenant has already expressed that they will be moving out when the substation is installed. Josephine has been in contact with Plymouth Housing and they also object to the street vacation. 8. Firestation 7: Marcus and Millichap approached Chris with a party who is interested in buying the building. Environmental Works is a friend of our organization and has been our partner on many projects and we have no intention of pressuring them. We have yet to see any offer from anyone for the building. 9. Resolution 2013-07: Jill presented the details of this resolution regarding refinancing the HUD Section 8 Loan for the Hazel Plaza with traditional debt from Banner Bank. A motion to approve Resolution 2013-07 was made, seconded and passed unanimously. Brian Lloyd called the meeting into Executive Session per RCW 42.30.110(b) at 7:15pm for a presentation by GGLO on the Capitol Hill TOD. The board came out of executive session at 7:46pm. 10. Foundation: Michael presented an overview of the current status of the Capital Campaign and introduced Omnivores which are individuals giving new gifts. We are raising a kebab during the giving portion of Omnivorous. We have Laura Michalek as our Master of Ceremonies again this year.


Page 3 of 3

11. Real Estate Development

a. 12th Avenue Arts update: David reported that we have strong interest from retailers and two interested restaurants. We have an LOI with Three Dollar Bill Cinema as our first office tenant.

b. Jefferson Wage Claim: David reported that we have received the final paperwork from the drywall subcontractor and the city is prepared to close out the claim.

c. Central area update: We have been meeting with business owners and residents in the area. We have a focus group for 24th and Union re-development that we are convening. We are looking into an “Only in Seattle” grant in conjunction with the Urban League as well.

The meeting was adjourned at 8:00pm. Attested, _______________________ Brian Lloyd, Chair September 16, 2013

ASSET MANAGEMENT REPORT AND MINUTES

Asset Management Committee Members: Alice Quaintance (Chair), Farin Houk, Rachel Ben‐Shmuel, Rob Schwartz. Staff: Billie Abers, Brad Lange, Josephine Wong

October 2013

The Asset Management Committee met October 7th, 2013 at 5:00pm. Alice Quaintance (Chair), Farin Houk, Rachel Ben‐Shmuel and Rob Schwartz met with Josephine Wong, COO , Billie Abers, Director of Property Management, Brad Lange, Asset Manager and Dianne Moreland, Portfolio Manager. The committee reviewed the report and discussed current asset management and property management activities. Current Asset Management Hazel Plaza –We are currently working toward loan closing and we are also in the process of choosing the architect for renovation work. Portfolio assessment –Action plans are complete on eleven buildings and in process on ten additional buildings. Multi property syndication/resyndication –Portfolio under consideration includes Boylston Howell, Bremer and John Carney. Property Development is doing a deeper analysis to verify the feasibility of a syndication of this grouping of buildings. Berneva –Key Bank has given an extension on the existing loan through November 15, 2013. Key Bank is working on a proposal for a new loan for the property. Seneca—Staff is reviewing proposals for a new loan to retire existing bonds. Anticipate resolution for November Board meeting and closing in December. Capital Projects—current The City of Seattle has awarded the contract for the installation of the heat pumps at the Fleming to ECCO. The roof at the Fleming is due for replacement in 2014.Due to weather at this time we could not coordinate a full tear off and replacement, so we are doing a partial replacement of the roof in the locations where the heat pumps will be placed and we will complete the roof replacement next summer. We selected Eltec for the elevator modernization and cab replacement at the Elizabeth James House. We are working with the residents to gather their list of needs during the elevator downtime of 4 to 6 weeks. Work is scheduled to start in February 2014. The exterior tuck‐pointing at the Larned is completed. The roof replacement at the Villa started on September 2013. The replacement is scheduled to complete by the end of October 2013, weather dependent. We are working with the weatherization department at the city to evaluate the Bremer and Oleta for

installation of heat pumps.

Building Operations

From the Finance report: Year to date CHH August 31, 2013 Blended Operating Statement Vacancy loss for year to date 2013 was 3.2% across the portfolio compared to 3.5% year to date 2012. Vacancy loss for the year 2012 was 3.4% and 3.9% for 2011. For 2013 and 2012 budget purposes we assumed vacancy rates ranging from 3 – 5 % depending on the building. The market vacancy in the Puget Sound area rose slightly from 3.8% to 4.0%. This was published by Dupre & Scott in September 23, 2013. The CHH portfolio is consistently beating the industry average. The building’s occupancy rate for the month of August is 98% and it is at 97% for the twelve month rolling average. At the end of September 2013, we have 10 vacant units, and that is less than 1% of the portfolio. The Brewster is right next to the construction zone of the Denny substation. We continue to meet with SCL, their design team and with Phil West, Customer Service and Energy Delivery Officer. We are working on a list of items for construction mitigation. We will schedule our third meeting with Phil West at the end of October, and the next meeting with NBBJ, the architects, will be on Nov. 18th. There is a design open house on Oct 9th at 5.30pm held by SCL at Seattle BioMed. All the residents at the Brewster have been informed of the open house. We have entered into a signed LOI with Dave Meinert and Jason Lajuenesse for the commercial space at the Fredonia. Dave and Jason will be contacting the current owner, Stephanie, to discuss purchasing of name and any useable equipment. The focus group made up of staff, community and board members will be facilitated by Paige Chapel and is scheduled for October 23rd at 3:30p.m. Zoom Language Center at the Gilman Court has changed ownership. The new lease was signed with Newton Highlands LLC on September 19th, 2013. 2014 Building budgets and assumptions: The rent increases for the portfolio is underway in preparation for the 2014 building budgets. The increase for the portfolio in 2014 is an average of 2%. Like previous years, some buildings had minimal increases due to what the units and the market will bear and some buildings had a larger increase where the rents have been kept really low and we are still trying to catch up to where they should be. For the building budgets, the range of vacancy assumptions was from 3% to 5% depending on the building. We are still trying to finalize what the estimated of increase in medical benefit will be. It was an average of 4.4% increase in utilities and we use a 5% increase on other expense line items off of 2013 actual expenditures Resident Services We continue to assist CHH residents in accessing services. We held our last few summer events with BBQs at three of our properties (Helen V, Park Hill, and Fremont Solstice). Combined, there were a total of 41 residents in attendance.

Capitol Hill Housing

Operating Statement

For the period ending: 8/31/2013

Benchmarks

98% Excellent95% Good90% Poor

98% Excellent95% Good90% Poor

<14 days Excellent21 days Good30+ days Poor

1.15 excellent1.05 good<1.0 concern



Frequency YTD YTD YTD YTD YTD YTD Monthly YTD M M YTD 2013 A A A

Type HUD Buildings Units Actual Inc Budget Var % Actual Exp Budget Var %

Op exp/unit - YTD (Before

Res)YTD Vac

LossYTD Vac

2012 2012 VacCash Flow after

reservesOccupancy

Rate

Occupancy Rate

12 mth trend

Repl ResY or N

Op ResY or N

Average UnitTurnaround Time

DCR 2012Actual

DCR 2011 Actual

DCR 2010 Actual

Comments

Blended HUD 18th Ave 9 76,133 73,749 3% 41,174 48,408 15% 4,575 0.5% 0.0% 0.0% 5,220 100% 100% Y 1.02 1.19 1.03

Blended 410 Apts 6 32,107 32,279 -1% 19,407 24,663 21% 3,234 4.1% 0.0% 0.5% 5,965 100% 97% Y 66 3.03 2.56 1.23

Blended HUD 412 Apts 12 116,088 113,077 3% 70,451 88,833 21% 5,871 0.4% 2.8% 1.4% 21,816 100% 98% Y 14 2.38 2.14 0.89

Blended Berneva 12 69,218 67,428 3% 43,857 52,503 16% 3,655 0.0% 1.1% 1.1% 10,555 100% 99% Y Y 1.22 0.20 0.69

Blended Boylston Howell 30 180,945 178,957 1% 146,882 126,340 -16% 4,896 3.8% 3.4% 3.0% (30,616) 100% 97% Y Y 74 1.08 1.11 1.26 One time debt service payment, $19,000 reserves submitted

Blended Bremer 49 247,528 249,801 -1% 164,603 162,465 -1% 3,359 4.2% 4.1% 3.7% 11,913 93% 96% Y Y 64 1.46 1.08 0.92

Blended Brewster 35 183,517 178,535 3% 113,979 133,781 15% 3,257 2.8% 8.7% 7.7% 24,626 93% 96% Y Y 46 1.64 2.21 1.37

Blended Broadway 5 35,573 34,582 3% 27,393 26,102 -5% 5,479 3.0% 0.0% 0.0% 1,766 100% 98% Y 17 2.78 1.99 1.58

Blended Burke Gilman Gardens 15 111,114 109,799 1% 76,665 86,093 11% 5,111 1.2% 1.0% 0.8% 6,287 100% 99% Y Y 54 1.89 1.77 1.42

Blended Byron Wetmore 12 74,095 77,575 -4% 67,088 70,092 4% 5,591 10.3% 3.5% 4.5% (2,840) 97% 91% Y 98 2.97 3.39 4.12

Blended Casa di Cinque 5 36,018 34,834 3% 21,296 26,587 20% 4,259 0.0% 2.5% 5.1% 10,714 100% 95% Y

Blended Centennial 30 187,222 185,493 1% 96,135 104,034 8% 3,204 3.6% 4.2% 4.4% 10,148 97% 96% Y Y 40 1.13 0.99 0.99

Blended Devonshire 62 336,356 340,639 -1% 243,359 237,981 -2% 3,925 5.1% 2.6% 2.5% 15,966 96% 96% Y Y 44 7.14 2.64

Blended HUD Elizabeth James 60 387,467 374,066 4% 230,768 241,598 4% 3,846 0.6% 1.0% 1.1% 43,250 98% 99% Y 37 1.67 1.64 1.41

Blended Fredonia 12 163,126 158,823 3% 91,215 89,567 -2% 7,601 0.6% 0.7% 0.5% 21,886 92% 97% Y Y 47 1.60 1.44 1.28

Blended Gale Place 24 174,519 171,947 1% 130,508 136,758 5% 5,438 3.5% 2.0% 3.2% 17,076 100% 96% Y 90 1.51 1.71 1.46

Blended Gilman Court 25 186,854 183,302 2% 140,966 144,352 2% 5,639 1.5% 4.3% 5.0% (1,345) 97% 97% Y Y 59 1.55 0.97 1.22

Blended HUD Hazel Plaza 16 100,297 96,333 4% 70,413 76,979 9% 4,401 0.6% 0.7% 0.5% 21,442 100% 100% Y 6.04 1.04

Blended HUD Holden Vista 16 110,904 106,555 4% 92,458 83,760 -10% 5,779 1.4% 6.3% 7.9% (2,236) 1.20 1.98 3.57 3rd party management

Blended John Carney 27 129,200 130,331 -1% 92,234 98,876 7% 3,416 3.5% 3.2% 3.3% 9,253 96% 97% Y Y 48 2.07 1.68 1.48

Blended Larned 33 145,532 148,692 -2% 144,524 133,652 -8% 4,380 3.3% 1.9% 2.7% (5,839) 99% 95% Y Y 90

Blended Lincoln Court 29 170,307 170,035 0% 88,833 94,532 6% 3,063 1.5% 3.3% 2.9% 7,864 100% 99% Y Y 27 1.09 0.85 0.89

Blended HUD Mary Ruth Manor 20 158,403 153,155 3% 99,261 112,469 12% 4,963 0.8% 3.1% 4.3% 40,499 100% 98% Y 31 1.37 1.16 0.96

Blended Maxwell 4 26,405 25,469 4% 19,616 24,226 19% 4,904 3.6% 0.0% 0.0% 2,702 100% 98% Y 30 2.41 2.22 1.23

Blended Melrose 30 153,051 143,347 7% 106,503 116,073 8% 3,550 4.7% 4.0% 4.8% 10,942 93% 95% Y Y 51 1.58 1.25 1.20

Blended Miller Park 12 80,662 83,935 -4% 61,609 62,856 2% 5,134 5.6% 4.2% 4.8% (3,061) 100% 94% Y Y 63 1.39 1.85 1.19

Blended Park Hill 30 227,931 220,183 4% 158,832 158,768 0% 5,294 1.1% 2.0% 3.3% 26,372 100% 98% Y 79 1.44 1.19 1.55

Blended HUD Ponderosa 23 128,319 123,444 4% 127,601 114,807 -11% 5,548 2.2% 1.7% 1.3% (9,278) 96% 99% Y 36

Blended Tiltsonian 5 29,434 30,357 -3% 23,311 24,672 6% 4,662 7.5% 0.0% 3.2% 499 100% 93% Y 64 2.00 2.67 2.16

Blended Villa 62 433,461 439,733 -1% 249,516 283,153 12% 4,024 3.2% 9.1% 7.3% 34,600 99% 97% Y Y 58 1.22 1.26 1.27

710 4,491,785 4,436,456 3,060,455 3,184,979 306,146

Discrete Broadway Crossing 44 325,973 264,966 23% 220,860 214,264 -3% 5,020 3.7% 3.6% 3.5% (10,285) 98% 95% Y Y 119 1.64 1.91 1.27 Reserves requests of $12,000 submitted

Discrete HUD El Nor 55 364,243 352,127 3% 247,852 265,936 7% 4,506 0.2% 2.5% 2.5% 35,024 100% 99% Y 87 1.30 1.53 1.63

Discrete Fleming 36 180,324 175,307 3% 108,394 123,825 12% 3,011 5.5% 7.3% 7.3% 17,015 97% 94% Y Y 71 1.01 1.10 0.67

Discrete Fremont Solstice 18 142,947 135,086 6% 94,870 101,981 7% 5,271 0.0% 2.9% 2.4% 7,479 100% 99% Y Y 1.34 1.43 1.13

Discrete HUD Haines 30 197,172 183,983 7% 129,587 127,707 -1% 4,320 0.5% 6.2% 4.8% 24,843 100% 98% 38 part yr

Discrete Harrison 19 217,781 214,623 1% 117,201 132,178 11% 6,168 0.0% 3.4% 2.5% 14,383 100% 100% Y Y 1.03 1.01 0.75

Discrete HUD Helen V 38 265,582 257,461 3% 148,443 154,005 4% 3,906 0.9% 3.1% 3.9% 26,811 98% 97% Y Y 72 1.39 0.91 0.75

Discrete Holiday 30 197,245 198,831 -1% 115,967 122,140 5% 3,866 5.9% 2.9% 3.2% (4,388) 96% 95% Y 60 0.94 0.79 Rehab yr

Discrete Jefferson 40 320,906 322,191 0% 172,657 174,422 1% 4,316 1.7% N/A 1.2% 85,328 55 part yr

Discrete Oleta 34 189,913 188,311 1% 115,537 120,091 4% 3,398 3.8% 7.3% 6.5% 3,833 96% 96% Y Y 49 1.03 1.02 0.89

Discrete Pantages 49 306,815 307,001 0% 221,190 221,551 0% 4,514 2.8% 1.9% 2.0% 696 97% 96% Y Y 77 1.76 2.24 2.09

Discrete Seneca 32 206,014 200,367 3% 139,486 159,910 13% 4,359 1.2% 1.5% 1.8% 29,706 97% 98% Y Y 53 2.84 1.65 1.42

Discrete HUD Silvian 32 232,060 228,641 1% 215,556 156,599 -38% 6,736 3.9% 4.5% 3.4% (61,575) 100% 97% 75 1.68 1.93 1.81 Use of operating cash

Discrete Unity Village 30 175,874 174,495 1% 119,109 147,977 20% 3,970 4.4% 3.6% 3.6% 48,467 N/A N/A N/A 3rd party management

487 3,322,850 3,203,390 2,166,711 2,222,585 217,337

M:\Admin\Board\Packets\2013 Packets\10 13\Asset Management August 2013 Dashboard.xlsx

MEMORANDUM

To: Capitol Hill Housing Board of Directors

From: Michael Seiwerath, Executive Director, Capitol Hill Housing Foundation

CC: Christopher Persons

Re: October 2013 CHH Foundation Update

GRANTS AND DONATIONS

Recent contributions include $7,500 operating grant from KeyBank. Recent grant submissions include a $50,000 request to Enterprise for resident engagement work on sustainability and a $10,000 request to Real Networks Foundation for the Resident Services program.

INDIVIDUAL GIVING With the Omnivorous “raise the kabob” supporting the capital campaign this year instead of general operations, there is still much work to be done to reach the 2013 Individual Giving goal. Excluding projected board gifts, the remaining goal is $24,000. The individual giving committee is committed to working with both boards to meet this goal. The fall giving letter will be mailed in late November, and we are focusing more on major gifts this year. The strategy will involve the process of beginning to turn major capital campaign donors into annual donors. Sustaining Circle Thank You event The evening of January 15th, 2014 will be the first Sustaining Circle level donor event, thanking donors who have made contributions of $2,500 or more to support CHH or the capital campaign. Chihuly Studios is donating use of the Chihuly Boathouse in North Lake Union for the event. Donors who have given $2,500 can expect an invitation this fall.

EVENTS

Omnivorous The strategy of focusing the “raise the kabob” on funding 12th Avenue Arts was a success. In August and September $222,000 in seeded capital support was raised. The night of the event, an additional $30,000 was raised, bringing the total raise the kabob to $252,000. Ticket sales and sponsorship, which raised an additional $42,995, supported general CHH operations and the event expense. This fell short of the $50,000 budgeted. In total 221 tickets were sold, up 38 from last year, though three fewer VIP tickets were sold. There has been general consensus of having Omnivorous return in 2014, and we are budgeting for next year’s raise the paddle to support a core CHH program (not a capital expense).

CAPITAL CAMPAIGN We are now very close to meeting the campaign goal for 12th Avenue Arts. Gifts and pledges that were made in August and September culminated in $252,000 of support at the Omnivorous event. With these contributions, we now have only $55,000 remaining towards the current capital campaign goal of $4.6 Million. Daily we are working to secure these final funds. When this goal is met, we’ll announce the success of the campaign and close it. Between the close of the campaign and the opening of the building, we will continue to focus on a few grant sources and prospects for funds. These resources will make it possible to add features of the building that had been cut for budgetary reasons, allowing us to better serve the residents and community in the building. 12th Avenue Arts Potential Funding Sources Overall GOAL : $4.6 M

Goal Pledged To raise TOTAL $4,600,000 $4,544,260 $55,740

CAPITOL HILL HOUSING FOUNDATION 2013 Budget Overview As of October 8, 2013

Unrestricted Budget

Income Source Goal Actual % to Goal

Government $ - $ - NA

Foundation $ 75,200 $ 75,167 100.0%

Corporate $ 120,950 $ 123,095 101.8%

Individual $ 77,000 $ 47,614 61.8%

Events & Sponsorships $ 113,000 $ 116,570 103.2%

TOTAL $ 386,150 $ 362,445 93.9%

Restricted Budget



Foundation $ 30,000 $ 40,000 133.3%

Corporate $ 30,000 $ - 0.0%

Individual $ - $ - 0.0%

Events & Sponsorships $ - $ - 0.0%

TOTAL $ 60,000 $ 40,000 66.7%

Combined Budgets

(Restricted & Unrestricted)



Foundation $ 105,200 $ 115,167 109.5%

Corporate $ 150,950 $ 123,095 81.5%

Individual $ 77,000 $ 47,614 61.8%

Events & Sponsorships $ 113,000 $ 116,570 103.2%

TOTAL $ 446,150 $ 402,445 90.2%

REAL ESTATE DEVELOPMENT BOARD REPORT

Development Committee Members: Brian Lloyd, Cathy Hillenbrand, Liz Dunn, Matt Roewe, Dana Behar,

Bob Fikso; Staff: David Dologite, Katie Porter, Alex Brennan, Joel Sisolak

The Property Development Committee met on Tuesday, October 1st at 4:30pm. PDC members in

attendance were Cathy Hillenbrand (Chair), Brian Lloyd and Matt Roewe. CHH staff members Katie Porter,

Alex Brennan, Joel Sisolak, and David Dologite were in attendance.

October 2013

CURRENT PROJECTS

1. 12th Avenue Arts (88 units/arts/commercial/office):

Last Month: The PT slab for the first floor has been completed and the second floor slab is nearly

complete. The project remains on schedule. Staff has signed an LOI with Three Dollar Bill Cinema for

one of the remaining office suites and is negotiating a lease with them. A second arts group is

interested in the remaining office space and has submitted additional financial plans. Staff is

reviewing. The retail space continues to be marketed by our broker.

Current report (Prior Month):

Residential

Construction completion: 19% (16%)

Contingency expended: 32% (28%)

Commercial

Construction completion: 42% (33%)

Contingency expended: 67% (52%)

The south end of the second floor slab is complete, with the remainder of the second floor to be

completed end of first week of October. The 30 foot high theater walls are in process. Concrete is

due to be completed before end of year. The project remains relatively on schedule, with under a

week lost due to rain delays. Staff is negotiating a lease with Three Dollar Bill Cinema. A strong LOI

for the restaurant space has been received from a group with a 20 year operating history with an

existing restaurant in Seattle. An LOI for a lunch-time eatery for two of the remaining three retail

bays is expected in mid-October.

2. 12th Avenue Meets Broadway:

The King County Child and Family Justice Center Neighborhood Advisory Committee had two meetings

on September 12 and 17. Alex Brennan represents Capitol Hill Housing on the Committee. Additional

members include Ann Schuessler, Bill Zosel, Brie Gyncild, Derek Harn, Enana Kassa, Joy Jacobson,

Lara Branigan, Luzviminda Carpenter, Michael Lanthier, and Michaela Blau. Initial areas of focus will

include compliance with the pedestrian overlay, transportation planning, and open space. Disposition

of surplus property and the potential for putting conditions on that sale of that property will be

discussed later in the process.

The 12th Avenue Stewards will be applying for a small and simple grant to fund design work for a new

woonerf on Remington Ct, celebration of the grand opening of the James Ct Woonerf and 12th Avenue

Square Park and planting of a missing tree at 12th Avenue between Spring and Marion Streets.

3. Capitol Hill EcoDistrict:

An initial list of performance targets for the EcoDistrict was reviewed with the EcoDistrict Steering

Committee (EDSC). After a second review at the October 11 EDSC meeting, a list of proposed targets

will be presented to the Capitol Hill community for public comment. We are currently designing the

public comment process. The performance targets are divided under three headings: 1) the

environmental district, addressing energy, water and waste; 2) the livable district, addressing

affordability, equity, social capital, cultural vitality; and 3) the connected district, addressing

transportation. Once adopted, the targets will inform all future projects associated with the EcoDistrict.

The EcoDistrict hosted a spot for PARK(ing) Day in front of Cupcake Royale with a cider press and

information about our new neighborhood fruit tree map. We served over 100 cups of cider. We also

coordinated with 3 other neighborhood spots.

We submitted a statement of interest to King County’s Right-Sized Parking Initiative for funding to

develop transportation demand management and parking pricing strategies for our buildings and scope

a shared parking district in Pike Pine.

We are developing grant proposals to Enterprise Community Partners to support additional EcoDistrict

work. They funded us for $40,000 in 2012-3.

The Capitol Hill EcoDistrict signed a memorandum of association with the Seattle 2030 District to

address our relationship and responsibilities on Capitol Hill.

October 1, 2, and 3 we are overseeing over 20 volunteers as they count bicycle and pedestrian traffic

at 8 locations on Capitol Hill and 12th Avenue. These counts will help us measure walking and biking

performance over time. The Broadway Cycle Track will be receiving an electronic bicycle counter in

January and we are working on securing funding for a dashboard that would display the bicycle traffic

count as each rider passes the counter.

POTENTIAL PROJECTS

4. Haines

Staff submitted funding applications for the Haines to the City of Seattle, the Housing Trust Fund, and

King County. We will hear back from these sources in the next two to three months.

We are still negotiating with DPD to understand the extent of the changes we must make because this

project was determined to be a substantial alteration. As of right now we are proposing to install fire

alarms, fire sprinklers, and some seismic upgrades in the basement.

We are preparing documentation in order to select a general contractor, applicants will submit by the

end of October.

5. Sound Transit - Transit Oriented Development (TOD):

The Sound Transit Board approved the Development Agreement. Next steps for the Champion will be

to work with Sound Transit on process for community involvement in the RFP process. In addition,

the Champion will be advocating on how the appraisal of the sites is going to work, given the

limitations imposed by the Development Agreement and need to incentivize delivery of community

benefits.

Staff will be working with the Champion to craft a training workshop to help prepare new and current

steering committee members for their roles in the upcoming RFP process.

6. Central District:

The focus group went well. There were almost a dozen participants who discussed their thoughts on

the project at 24th and Union. Comments included:

- In general people wanted family housing without excluding seniors.

- They were not opposed to a building that was 65’ high and parking was not a serious concern.

- There was interest in doing an art project or providing community space that illustrated the cultural

and community history of the site.

Staff is in negotiations with an architectural firm to help us prepare a landmark application.

7. Yesler Terrace:

Vulcan is awaiting response from SHA on their phasing proposal.

8. Jorve: Jorve has a serious interest in a sale. Staff has confirmed that Country Doc remains

interested. The site is approximately 2 acres and utilized for Jorve Roofing’s administration offices, a

machine shop and roofing materials storage. The machine shop is currently leased to another

business. Country Doc is interested in re-using and converting the existing buildings for use as a

community health clinic, on one half of the site. The other half of the site would be redeveloped as

affordable housing. Acquisition funding is available in part from the WSHFC’s Land Acquisition

Program, which is available for longer term acquisition periods. In addition to the LAP funding, staff

would apply to the City of Seattle TOD fund.

Resolution 2013-XX: We are presenting the attached resolution at this month’s Board meeting. It

will authorize entering into a Purchase Option Agreement with the Sellers of Jorve Roofing, with a

financing contingency that will require future Board authorization to terminate, and the expenditure

of up to $35,000 for pre-development/feasibility costs.

Report of the Executive Committee and Executive Director Minutes of the Executive Committee Meeting September 30, 2013

The executive committee held its regular meeting which started at 5 PM and ended at 6:30 PM. Brian Lloyd, Cathy Hillenbrand, Alice Quaintance and Sharron O’Donnell were in attendance with Chris Persons on staff. No members of the public were in attendance.

1. Board Development and Board Matters

Chris addressed that Brian and he would be meeting with Pamela Banks the following morning but that she had agreed to join the board. We both see this as a strategic move as CHH moves ahead at 24th and Union.

Chris discussed the agenda for the upcoming October Board meeting: I. CHH Building Action Plans II. Strategic Planning 2013 III. 2014 Budget Assumptions IV. Dashboard V. Real Estate Updates

2. HR and Personnel

New office design update: Chris displayed version 9 of the new office layout that is final. Staff and design team continue to work on details, furniture and colors.

Chris reported that health insurance costs are projected to increase 28% if we make no changes in our plan. This equates to an approximate budget hit to CHH of over $100,000.

HDC has a leadership development program to which CHH has nominated 2 staff members. CHH participates in the program which is designed for more junior staff who are advancing into leadership roles.

3. Asset Management & Property Management

Fredonia commercial proposal: The LOI has been finalized and negotiations on the lease are with the tenant’s attorney. The focus group is scheduled and Paige Chapel has agreed to facilitate.

Denny Substation: Staff filed the formal objection to the street vacation of Pontius. Negotiations continue on both immediate construction mitigation and public benefit provisions for the street vacation.

Broadway: Chris mentioned that staff was beginning the process of valuation of the Broadway in anticipation of a potential conversion to an affordable home ownership model. This created a lengthy discussion about the impetus behind any disposition and how any disposition would fit into a portfolio‐wide scheme. Chris assured the board that this was early testing of the concept and that any final decision of the board would be made within a broad portfolio context that is under development.

4. Finance and Administration

CHH and a number of other PDA’s from across the state are meeting with the new State Auditor Troy Kelley. It is our hope to continue to educate the auditor about the unique standing of the PDA and move our relationship to an increasingly positive

footing. This meeting is being organized by Gerry Johnson and Pacifica Law Group which represents many PDA’s.

CHH staff is also scheduling a meeting with our attorneys at Pacifica to continue to improve our understanding of public records requirements as we have come under continued requests from one individual which are increasingly onerous and combative.

We have been offered an EQ2 loan from Union Bank. An EQ2 is an equity‐like product with lower than market interest and very flexible terms. We were approached by Union as one of their strong partners. Unlike a line of credit, an EQ2 investment is made in its entirety at close. Staff has identified a number of uses within our portfolio and predevelopment activities to effectively deploy this investment. Committee members were concerned about our ability to deploy this capital and requested that staff present a list of potential uses to the full board.

Jill has written new finance policies that Chris has reviewed with the Finance Committee and which will be presented at the November board meeting for adoption.

5. Property Development Update

The committee was updated on real estate activities.

6. CHH Foundation & External Relations( 5 minutes)

The committee reviewed the informal results of the Omnivorous Fundraiser and where that leaves us with the Campaign. Chris updated the committee on the leadership change process at Housing Development Consortium.

Chris updated the executive committee on the merger between Bellwether Housing and Common Ground.

Sue Cary will receive the friend of housing award at the annual Housing Washington Conference.

Capitol Hill Housing 2014 Key Budget Assumptions

As of October 14, 2013 Revenue:

Rent increase – 2% overall, similar to last year

Vacancy assumption – ranges between 3% and 5% depending on building, based on current experience and market conditions

Property management fees – minimal increase

Cash flow from properties not determined yet

Developer fees for new/in process/recently completed projects:

12th Avenue Arts $900,000 Haines $50,000

Expenses:

CHH office staff payroll increased by $83,000 2% merit pool for salary increases

2% retirement plan contribution

18% increase in health insurance premiums (after plan modifications) for

second year in a row. We continue to experience higher claims than average.

Dental insurance premiums flat

Property insurance 10% increase at renewal 3/1/14

Utility increases range from 1.4% (natural gas) to 10% (water)

2013 Capitol Hill Housing Dashboard Second Quarter

PORTFOLIO HEALTH

Current

YTD

Previous

Year End

Same

period last

year

Industry

Average

Current

YTD

Previous

Year End

Same

period last

year

Industry

Average

3.50% 3.40% 3.60% 3.80% 3,367$ 6,292$ 3,200$ 6,175$

Current

YTD

Previous

Year End

Same

period last

year

Current

YTD

Last

Quarter

Same

period last

year

CHH

Benchmark

8.10% 18.50% 8.30% 11.9% 9.2% 10.8% 5%

2010 2011 2012

2013 2012 2013 2012 205,885$ 256,968$ 593,409$

‐ 7 ‐ 1

STAFF AND BOARD ENGAGEMENT

2010 2011 2012

CHH

Benchmark

13.0% 11.0% 11.0% 12.0%

OPERATIONS & FUND DEVELOPMENT

2010 2011 2012

CHH

Benchmark

1.09 1.23 1.50 1.20

Vacancy Expense Per Unit

Move Outs Ratio AR as % of GPR

Debt Coverage Ratio Portfolio Cash Flow (NOI)

Buildings <1.1 Buildings <1.0

Staff Turnover

Current Ratio

0

2

4

6

8

10

12

14

16

jan feb mar apr may jun jul aug sep oct nov dec

Board Attendance

total board members

quorum

attendance

$276,815

$359,811 $381,709 $386,150

$192,030 $193,075

2010 2011 2012 2013 goal 2013 YTD Target Pace

Unrestricted Foundation Revenue

2010 2011 2012

Portfolio Cash Flow (NOI)

2013 Capitol Hill Housing Dashboard Second Quarter

YEAR 2011 2012 2013 2014 2015 2016 2017

beginning balance 1102 1132 1197 1188 1276 1276 1351

Unity Village 30

12th and Jefferson 40

12th Ave Arts 88

CH TOD 75

SCCC

Haines 30

Yesler Terrace

M&A

Other Projects ‐5 ‐9

total in year 30 65 ‐9 88 0 75 0

ending balance 1132 1197 1188 1276 1276 1351 1351

actual 30 65

REAL ESTATE AND PIPELINE

Predevelopment Risk

Q3 Q4 Q1 Q210,855$

10,855$

Discounted Exposure 305,944$ 42,000$ ‐$

Gross Exposure 879,813$ 1,276,901$ ‐$

‐200

0

200

400

600

800

1000

1200

1400

1600

2011 2012 2013 2014 2015 2016 2017

annual production

beginning and ending balance

Unit Production Chart

RESOLUTION ADOPTED AT A MEETING

OF THE BOARD OF DIRECTORS

OF CAPITOL HILL HOUSING IMPROVEMENT PROGRAM,

A WASHINGTON PUBLIC CORPORATION

RESOLUTION 2013‐08 Union Bank EQ2

WHEREAS, Capitol Hill Housing Improvement Program (CHH) expects to add more buildings and

housing units to its portfolio consistent with its mission; and

WHEREAS, CHH has existing buildings and housing units in its portfolio with short and medium term financing and capital improvement needs; and WHEREAS, low cost financing is necessary to cover the cost of predevelopment work, capital improvements; and refinancing of existing debt; WHEREAS, Union Bank, a California bank with lending and tax credit investments in several CHH properties, is able to provide Equity Equivalent (“EQ2”) financing for working capital to selected community development organizations; and WHEREAS, Staff will seek Board approval for any predevelopment or other costs funded by the EQ2; NOW, THEREFORE, BE IT RESOLVED by the Board of the Capitol Hill Housing Improvement Program as follows:

(1) The CHH Executive Director is authorized and directed to apply for EQ2 financing from Union Bank in the amount of $250,000 for working capital associated with projects to be designated.

(2) The basic loan terms are as follows:

Term: up to 60 months

Interest rate: 2.5%

Extension Terms: up to three, one (1) year renewals

Collateral value: Unsecured (3) The CHH Executive Director is authorized to negotiate other loan terms necessary to meet

CHH’s needs and finalize administrative and procedural terms for loan disbursement and administration, and to approve final EQ2 documents.

(4) Any two officers of CHH are authorized to execute all necessary documents related to the EQ2.

CERTIFICATE

I, ____________________, certify that I am the ________________of Capitol Hill Housing Improvement Program (CHH) and that the foregoing Resolution 2013‐08 was duly adopted at a meeting of the Board of Directors of CHH held on October 14, 2013, in accordance with the Charter and Rules and Regulations of the Corporation upon proper notice and at which time a quorum was present.

Dated October 14, 2013

By:_____________________________

Its: _____________________________

President & CEO, Pamela Banks

BACK TO THE BASICS: 2012-2013

I am the second woman in 82 years to hold the position of President & CEO of the Urban League of Metro Seattle. Recognizing this feat, I am determined to get back to the core message of the league by assisting disenfranchised people in the community - not with a handout but with a hand up. We are here to be a conduit for change within our beloved Seattle community. Last year, the League provided 1,500 families with a bevy of housing resources that prevented foreclosures and kept them in their homes. We need to get back to that level of community engagement.

I am deeply rooted in the community and believe passionately in education and partnership. We must work together to sever the umbilical cord from our children to prisons; this cannot be done alone, but it is achievable through collaboration, innovation and leadership. Reviving our education program is top priority - correctional institutions (prisons) are planning jail beds according to 3rd grade reading levels - this is not the legacy we can tolerate leaving behind for our children. With this in mind, I look forward to working with our

corporate sponsors, partnering organizations and community members in making a positive impact by getting BACK TO THE BASICS!

PRESIDENT & CEO at a Glance

Lifetime community organizer Served 30 years working for the city of Seattle. Director of Community Outreach & Senior policy advisor for Mayor Greg Nickels. Public Relations Manager for Housing & Human Services Strategic Advisor for the Department of Transportation Program Manager for the Department of Neighborhoods Team member; Designed and implemented the City of Seattle’s Youth Violence Prevention Initiative

(SYVPI)

Seattle-area Urban League hires city problem-solver as CEO

Pamela Banks, the newly selected CEO for the Urban League of Metropolitan Seattle, is currently a program manager for the city's Department of Neighborhoods and in 30 years as a city employee has worked under five mayors.

By Bob Young

After a national search, the Urban League of Metropolitan Seattle found its new CEO locally, hiring longtime city employee Pamela Banks to rebuild the civil-rights group.

Now a program manager for the city's Department of Neighborhoods, Banks was outreach director for former Mayor Greg Nickels. She also was his community "problem solver" during light-rail construction in South Seattle, which disrupted hundreds of small businesses.

In a statement, the League touted Banks' community roots, penchant for getting programs funded and reputation for working with diverse constituencies.

"She's got a great history in the community. She has a lot of great ideas and enthusiasm," said Walle Ralkowski, board chairman of the Urban League.

Banks (formerly Pamela Green) said she's looking forward to restoring the league's health and relevance. "I really feel this is my path. I was meant to be here," she said Tuesday.

Financially strapped, the Urban League sold its three-story, 101-year-old headquarters at East Yesler Way and 14th Avenue for $2.7 million in January, with the proceeds mostly going to pay off debts. The league will remain in the building as a tenant for at least three years.

The league was hurt by a drop in government funding and fallout from last year's Seattle Public Schools scandal, in which state auditors found the schools might have wasted money — including in a contract with the Urban League — in trying to help minority firms get school-construction work. The league's staff shrank from 40 employees to 10, as contracting and education programs were shut down. Its former CEO James Kelly and then acting CEO Tony Benjamin resigned. Only the league's housing program remains in operation.

Ralkowski said he expects Banks to secure funding to establish new education, employment and health services.

A local search committee, which included former NAACP President Lacy Steele, City Councilmember Bruce Harrell and KCTS-TV's Enrique Cerna, selected Banks from a pool of three finalists, all local. A panel from the National Urban League agreed she was the best candidate.

Banks will start in June. Her salary will be $72,000 — almost $25,000 less than she made at the city last year. But she said the position is such a good fit for her — both in timing and responsibility — that the pay cut is worth it.

During her 30 years at the city, Banks worked under five mayors. She was the Department of Neighborhoods' district coordinator in Southeast Seattle for six years. She has also served on the board of the Rainier Valley Chamber of Commerce and was a founding member of the Garfield High School Foundation. She considers Earl Richardson, head of the nonprofit SouthEast Effective Development, a mentor.

Banks, 52, lives in the Central District, less than a mile from Urban League headquarters. To be more relevant, she says, the league needs to reach out to cities in South King County, where many African-American families have moved. In her first 90 days on the job, she expects to focus on fundraising, rebuilding the board of directors, and program development.

She says she wants to use her relationships in government, business and the community to "bring credibility back to the league."

"Pamela has a very good innate knowledge of the community, so she'll be able to deal with the league's different constituencies," said former Mayor Norm Rice. "I think she has a big challenge in restoring confidence. But I think she's quite capable of doing that."

City Council President Sally Clark worked alongside Banks in the Department of Neighborhoods. Clark praised Banks' organizing skills above all: "To hire someone of Pamela's caliber and energy shows a renewed commitment by the Urban League to its importance in the city."

Bob Young: 206-464-2174 or [email protected]

ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION

RESOLUTION NO. 2013‐09

NEW LOAN SECURED BY BERNEVA APARTMENTS

WHEREAS, Capitol Hill Housing Improvement Program (the Program) is a public corporation organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730‐755, and Seattle Municipal Code Ch. 3.110. As such, it is a political subdivision of the State with an area of operation focused on in the Capitol Hill community in the City of Seattle; and

WHEREAS, the purpose of the Program shall be to assist homeowners, property owners,

residential tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities; and

WHEREAS, in 1992 the Program acquired and began the rehabilitation of a building located at

535 17th Ave E, Seattle Washington 98112 known as Berneva Apartments (The Project); and WHEREAS, the Project was financed by Housing Authority of the City of Seattle Low‐Income

Housing Assistance Revenue Bond, 1992, Series A (CHHIP Berneva Project) (the Bonds) WHEREAS, the Bonds mature October 1, 2013 and this maturity has been extended to

November 15, 2013; WHEREAS, the Program desires to refinance the property to pay off the existing Bonds; and WHEREAS, the Program has obtained a Letter of Interest from Banner Bank for a loan of

$150,000 to be secured by the property; and WHEREAS, Article VII, Section 3 of the Program Charter states that “Prior authorization or

concurrence of the Board by resolution shall be necessary for … (b) The contracting of debts, issuance of notes, debentures or bonds, and the mortgaging or pledging of corporate assets to secure the same”;

NOW, THEREFORE, BE IT RESOLVED by the Board of the Capitol Hill Housing Improvement

Program as follows: (1) The CHH Executive Director is authorized and directed to sign the Letter of Interest with

Banner Bank. The basic loan terms proposed are as follows:

Term: 10 years

Interest Rate: Fixed for the first five years of the loan at 4.50%. The interest rate will re‐adjust after 60 months based upon the five year Federal Home Loan Bank of Seattle (FHLB) index plus 2.50% with an interest rate floor of 4.5%. The FHLB index is the bullet fixed rate which can be found at http://www.fhlbsea.com/Rates

Payments: Monthly payments of principal and interest, each in an amount necessary to fully amortize the fully disbursed loan over 25 years, plus one twelfth of the annual estimated real property taxes (if any) and annual hazard/liability insurance premiums.

Prepayment: Any prepayment during years one and six of the loan term will be subject to a prepayment penalty of 3% of the amount prepaid, during years two and seven, the prepayment penalty will be 2% of the amount prepaid; during years three, four, five and eight, nine and ten the prepayment penalty will be 1% of the amount prepaid. The prepayment penalty will be waived if Bank is given right of first refusal to match a bona fide offer by a qualified lender to finance a Low Income Housing Tax Credit transaction to be secured by the subject financing.

Amortization:25 years

Security: First deed of trust lien on the Project and an assignment of leases and rents.

(2) The CHH Executive Director is authorized to negotiate other loan terms necessary to meet

CHH’s needs and finalize administrative and procedural terms for loan disbursement and administration, and to approve final loan documents.

(3) Any two officers of CHH are authorized to execute all necessary documents related to the loan.

CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (“the Program”) and that the foregoing Resolution was duly adopted at a meeting of the Board of Directors of the Program held on the 14th day of October 2013, in accordance with the Charter and Rules and Regulations of the Program upon proper notice and at which time a quorum was present. DATED the 14th day of October 2013. By______________________________________ Its_____________________________________

ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE



NEW LOAN SECURED BY SENECA APARTMENTS

WHEREAS, Capitol Hill Housing Improvement Program (the Program) is a public corporation organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730‐755, and Seattle Municipal Code Ch. 3.110. As such, it is a political subdivision of the State with an area of operation focused on in the Capitol Hill community in the City of Seattle; and

WHEREAS, the purpose of the Program shall be to assist homeowners, property owners,

residential tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities; and

WHEREAS, in 1997 the Program acquired and began the construction of a building located at

1214 E Boylston Ave, Seattle Washington 98101 known as Seneca Apartments (The Project); and WHEREAS, in 2013 the property went through Year 15; and WHEREAS, the existing financing requires a letter of credit that expires December 4, 2013, and

the current letter of credit is not renewable; WHEREAS, the Program desires to refinance the property to pay off the existing bonds and

perform minor renovations; and WHEREAS, the Program has obtained a Letter of Interest from Banner Bank for a loan of

$900,000 to be secured by the property; and WHEREAS, Article VII, Section 3 of the Program Charter states that “Prior authorization or

concurrence of the Board by resolution shall be necessary for … (b) The contracting of debts, issuance of notes, debentures or bonds, and the mortgaging or pledging of corporate assets to secure the same”;

NOW, THEREFORE, BE IT RESOLVED by the Board of the Capitol Hill Housing Improvement

Program as follows: (1) The CHH Executive Director is authorized and directed to sign the Letter of Interest with

Banner Bank. The basic loan terms proposed are as follows:

Term: 10 years

Interest Rate: Fixed for the first five years of the loan at 4.25%. The interest rate will re‐adjust after 60 months based upon the five year Federal Home Loan Bank of Seattle (FHLB) index plus 2.50%. The FHLB index is the bullet fixed rate which can be found at http://www.fhlbsea.com/Rates

Payments: Monthly payments of principal and interest, each in an amount necessary to fully amortize the fully disbursed loan over 30 years, plus one twelfth of the annual estimated real property taxes (if any) and annual hazard/liability insurance premiums.

Prepayment: Any prepayment during years one and six of the loan term will be subject to a prepayment penalty of 3% of the amount prepaid, during years two and seven, the prepayment penalty will be 2% of the amount prepaid; during years three, four five and eight nine and ten the prepayment penalty will be 1% of the amount prepaid. The prepayment penalty will be waived if Bank is given right of first refusal on any future Low Income Housing Tax Credit financing.

Amortization:30 years

Security: First deed of trust lien on the Project and an assignment of leases and rents.

(2) The CHH Executive Director is authorized to negotiate other loan terms necessary to meet CHH’s needs and finalize administrative and procedural terms for loan disbursement and administration, and to approve final loan documents.

(3) Any two officers of CHH are authorized to execute all necessary documents related to the loan.

CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (“the Program”) and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of the Program held on the 14th day of October 2013, in accordance with the Charter and Rules and Regulations of the Program upon proper notice and at which time a quorum was present. DATED the 14th day of October 2013. By______________________________________ Its_____________________________________

RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS


A WASHINGTON PUBLIC CORPORATION (Mt. Baker TOD)

Resolution 2013-11

Page 1 of 5

RESOLUTION 2013-11

Mt. Baker TOD Project Authorization, Feasibility and Country Doctor Partnership WHEREAS, Capitol Hill Housing Improvement Program (CHH) was created by the City of Seattle to assist persons in the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and the Capitol Hill community; and

WHEREAS, it is in the furtherance of the purpose of CHH to promote the development of decent affordable housing and the revitalization of Seattle neighborhoods; and

WHEREAS, CHH will respond to opportunities outside its area of service when the project is consistent with the following criteria:

CHH will be able to support the property for the long term, The project’s proximity contributes to property management efficiency, CHH is invited by a recognized neighborhood based organization, CHH has uncommitted staff capacity, And the project is competitive for public funding; and

WHEREAS, CHH is authorized to work outside of the Capitol Hill Community upon

determination by the Board that each activity will further the purposes of the Program; and

WHEREAS, CHH was previously contacted by local community health care provider Country Doctor with which Capitol Hill Housing shares a long history in order to establish a strategic partnership to develop the project; and

WHEREAS, CHH was previously approached with an opportunity to construct and own a multifamily property at 3211 and 3201 Martin Luther King Jr. Way South in the Rainier Valley




Resolution 2013-11

Page 2 of 5

neighborhood of Seattle which is within ½ mile of CHH properties Gale Place and Byron Wetmore; and WHEREAS, construction of the Project will provide up to approximately seventy-two units of affordable housing for low and moderate income family households and a health and dental clinic owned and operated by Country Doctor for predominantly low income people in the Mt. Baker light rail station area; and

WHEREAS, it is in the interests of the Rainier Valley community, and in the furtherance of the purpose of CHH, to promote the development of decent, affordable housing and health related services for low income people; and NOW, THEREFORE, BE IT RESOLVED by the Council of the Capitol Hill Housing Improvement Program (CHH) as follows: (1) The CHH Council hereby finds and determines that the Project will enhance the stock of affordable housing in the Rainier Valley community for persons of low and moderate income. (2) The CHH Council hereby further finds and determines that a partnership with Country Doctor on the Project will further the creation of affordable housing and health care services consistent with the North Rainier Neighborhood Plan Update of 2010. (3) The CHH Council further finds that construction of the Project will further CHH efforts to partner with communities to create housing that is affordable and accessible to transit.




Resolution 2013-11

Page 3 of 5

(4) The CHH Council therefore specifically finds and determines that construction and operation of the project will further the purpose of CHH and is therefore within the power and authority granted to CHH by its Charter. (5) The CHH Executive Director is authorized and directed, to:

(a) Fully execute a Purchase and Sale Agreement as recommended by the Property

Development Committee with appropriate contingencies

(b) Make application for predevelopment financing from the Impact Capital and/or other appropriate sources of short-term financing to finance acquisition of the project and related costs;

(c) Utilize up to $35,000 from Impact Capital line of credit for pre-development

feasibility costs described in the attached Predevelopment Budget. The Executive Director is authorized to execute all necessary documents for such purpose;

(d) Contract for consultant services as outlined in the attached Budget or as may be

necessary to investigate the project's feasibility;

(e) Make applications for long term public Land Acquisition Program funding from the Washington State Housing Finance Commission, City of Seattle TOD financing, and, if needed, Rainier Valley Community Development Fund site acquisition and financing;

(f) Represent CHH in obtaining project financing, including public and private

lenders, and equity investors;




Resolution 2013-11

Page 4 of 5

(g) Form limited partnerships or limited liability companies as necessary to utilize financing and to be owner of the property; and

(h) Enter into a Memorandum of Understanding with Country Doctor for the purpose

of developing a portion of the site as a community health clinic with Country Doctor as Master Tenant of the community health clinic.

(i) Assign the Purchase and Sale Agreement to a Limited Liability Company or

Limited Partnership of which the CHH is the sole member or general partner; and

(j) Authorize staff to remove all Purchase and Sale Agreement feasibility contingencies except the final financing contingency, which may only be removed by the Council or the Property Development Committee.




Resolution 2013-11

Page 5 of 5

CERTIFICATE

I, ________________, certify that I am the ___________of Capitol Hill Housing Improvement Program (CHH) and that the foregoing Resolution 2013-11 was duly adopted at a meeting of the Board of Directors of CHH held on October 14, 2013, in accordance with the Charter and Rules and Regulations of the Corporation upon proper notice and at which time a quorum was present.

Dated October 14, 2013

By:_____________________________

Its: ___________________________

RESOLUTION

ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS OF


Re‐electing Matt Roewe, Sharron O’Donnell,

Paige Chapel and Rachel Ben‐Shmuel to the PDA Board


WHEREAS The Capitol Hill Housing Improvement Program (The Program) is a public corporation organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730‐755, and Seattle Municipal Code Ch. 3.110. As such, it is a political subdivision of the State with an area of operation focused on in the Capitol Hill community in the City of Seattle; and

WHEREAS the purpose of the Program shall be to assist homeowners, property owners, residential tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities; and

WHEREAS the Program Charter Article VII authorizes the Board to nominate certain board members for City Council Confirmation; and

WHEREAS the Program Rules and Regulations set forth the qualifications for Board membership;

and WHEREAS the Board of Directors has found that the following nominees meet the qualifications

for Board membership;

NOW THEREFORE BE IT RESOLVED THAT THE BOARD OF DIRECTORS OF THE CAPITOL HILL HOUSING IMPROVEMENT PROGRAM HEREBY nominates:

Position Board Member Term Seat Type Term Expires CH Resident

Position 4 Paige Chapel Fourth Council April 2016 Yes

Position 7 Rachel Ben‐Shmuel Second Council April 2016 No

Position 8 Matt Roewe Second Council April 2016 No

Position 10 Sharron O’Donnell Second Council April 2016 No

FURTHER RESOLVED that the CEO of Capitol Hill Housing is hereby authorized and directed to submit the aforementioned names PROMPTLY to City Council for Confirmation.

CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (”CHH”) and that the foregoing Resolution was duly adopted at a meeting of the Board of Directors of CHH held on 10th day of September 2012, in accordance with the Charter and Rules and Regulations of CHH upon proper notice and at which time a quorum was present. DATED the 14th day of October 2013. By_______________________________________ Its_____________________________________

RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF


Electing Pamela Banks to the PDA Board


WHEREAS The Capitol Hill Housing Improvement Program (The Program) is a public corporation organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730‐755, and Seattle Municipal Code Ch. 3.110. As such, it is a political subdivision of the State with an area of operation focused on in the Capitol Hill community in the City of Seattle; and

WHEREAS the purpose of the Program shall be to assist homeowners, property owners, residential tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities; and

WHEREAS the Program Charter Article VII authorizes the Board to nominate certain board members for City Council Confirmation; and

WHEREAS the Program Rules and Regulations set forth the qualifications for Board membership;

and WHEREAS the Board of Directors has found that the following nominee(s) meet the

qualifications for Board membership;

NOW THEREFORE BE IT RESOLVED THAT THE BOARD OF DIRECTORS OF THE CAPITOL HILL HOUSING IMPROVEMENT PROGRAM HEREBY nominates:

Position Board Member Term Seat Type Term Expires CH Resident

Position 9 Pamela Banks First Council April 2017 No

FURTHER RESOLVED that the CEO of Capitol Hill Housing is hereby authorized and directed to submit the aforementioned names PROMPTLY to City Council for Confirmation. CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (”CHH”) and that the foregoing Resolution was duly adopted at a meeting of the Board of Directors of CHH held on October 14th 2013 in accordance with the Charter and Rules and Regulations of CHH upon proper notice and at which time a quorum was present. DATED the 14th day of October 2013. By_______________________________________

Its_____________________________________

october 2013 · 7. pamela banks bio and resume 8. resolution 2013‐09: berneva refinance 9....

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