CHH Board Meeting August 2016

CHH Board Meeting

August 2016

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SECTION 1:

Meeting Keys

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August 2016 Capitol Hill Housing Board Meeting Keys and Addenda

Reminder: Dinner begins at 5:45. The meeting starts promptly at 6 PM. NOTE: In response to results from the Board survey, updates and routine reports are now in the consent agenda as part of the department reports. Board members may remove items from the consent agenda for discussion and clarification. The intent of this change is to focus Board attention on higher level strategic and action items. Consent Agenda, Disclosures and Recusals: The consent agenda will be moved for adoption. Board members will review items on the agenda and make any necessary disclosures and recusals.

Presentation and Discussion Financial vocabulary: Deena will review some helpful financial vocabulary for understanding CHH finances.

Finance and Asset Management Financial summary: The finance committee presents its regular report and dashboard through June 2016. Preview Oleta Year-15 resolutions: As we have done before with our tax credit properties that have reached the end of the 15 year compliance period, we will work with the investor limited partner to transfer the LP interest to CH Development Association, a CHH affiliate. In addition, we have been advised by legal counsel to make a capital contribution to the existing partnership, which will then pay off a loan due to CHH.

Executive Committee and Board Board survey action items and next steps: Jill will present a memo to the Board outlining action items in response to results of the recent Board survey. Filling Seat 14 (Heyward’s seat) update: Cathy will update the Board on our conversations with Sheila Edwards-Lange. Introduction to resolution authorizing work outside of Capitol Hill: In reviewing our Charter recently, Jill and Chris noted language requiring Board approval for “projects or activities outside of Capitol Hill.” This resolution will provide such authorization.

Property Development

B-North Resolution: The Board will be asked to vote on a resolution authorizing predevelopment spending of up to $1,400,000. In addition to authorizing increased spending, the resolution also authorizes certain other actions necessary now that Gerding Edlen and Sound Transit have signed the Disposition and Development Agreement.

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White Center: As previously reported, staff has prepared and will be entering into a nonbinding LOI with community agencies and King County to redevelop a 4.5 acre site in White Center. Per CHH Real Estate Development and Acquisition policies, staff is formally introducing the project to the Board for further discussion and a voice vote. This voice vote is not the formal resolution that approves staff moving forward with full development but ensures early Board buy in. Helen V parking lot: Helen V is also approaching Year 15, prompting us to explore more fully development of the surface parking lot which is part of the site. Walter will present some initial thoughts on what we could do there. Board Packet Sections 1. Meeting Keys, p. 5-6 2. Board Agenda, p. 9 3. June 2016 Finance Report and Statements and Asset

Management Report, p. 13-33 4. Board Survey Action Items & Next Steps Memo,

p. 37-38 5. Introduction to Resolution Authorizing Work

Outside of Capitol Hill, p. 41 6. Resolution 2016-12: B-North Predevelopment

Spending Authorization p. 45-49 7. Capital Campaign Concept Draft, p. 53-54 8. Consent Agenda and Attachments, p. 57-80

a. Contracts and Expenditures, p. 57 b. July Board Minutes, p. 59-62 c. Tenant Communications Log, p. 63 d. Property Management Report and Minutes,

p. 65-66 e. Property Management Dashboard, p. 67 f. Memo from the CHH Foundation, p. 69-71 g. Property Development Report and Minutes,

p. 73-75 h. Community Programs & External Relations Report and Minutes, p. 77-78 i. Executive Committee Report and Minutes, p. 79-80

Upcoming Meetings and Events

Please let Jill or Michael know if you’d like additional information on any event or meeting. Monday, August 8

CHH Board Meeting Monday, August 29 Executive Committee Monday, September 12 CHH Board Meeting Thursday, September 29 Omnivorous (@ The Summit)

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SECTION 2:

Board Agenda

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CAPITOL HILL HOUSING BOARD August 8, 2016

6:00 PM – 7:30 PM Regular Meeting 12th Ave Arts Pike-Pine Room

1620 12th Avenue, Seattle

AGENDA

6:00 Call to Order (Hillenbrand)

1. Approve consent agenda Sec. 8, Page 57 2. Disclosures and recusals

6:05 Public Comment (Not to exceed 5 minutes per individual or 15 for combined speakers) 6:10 Presentation and Discussion (Wallis-York)

1. Financial vocabulary 6:20 Finance and Asset Management

1. Finance Report (Porter, Wallis-York) a. Financial summary, cash management report: June 2016 Sec. 3, Page 13 b. Preview Oleta Year-15 resolutions

6:30 Executive Committee and Board (Fleming, Hillenbrand)

1. Board survey action items and next steps Sec. 4, Page 37 2. Filling Seat 14 update 3. Introduction to resolution authorizing work outside of Capitol Hill Sec. 5, Page 41

6:45 Property Presentations (Fleming, Watson)

1. Helen V, Park Hill, Lincoln Court PowerPoint 6:55 Property Development (Fleming, Elkerton, Zisette)

1. Resolution 2016-12: B-North Predevelopment Spending Authorization Sec. 6, Page 45 2. White Center voice vote 3. Helen V parking lot

7:25 Community Programs and External Relations (Fleming)

1. Introduction of Capital Campaign 2016 Sec. 7, Page 53 7:30 Adjourn (Hillenbrand)

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SECTION 3:

Finance & Asset

Management Report, and

June 2016 Statements

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August 2016 FINANCE & ASSET MANAGEMENT BOARD REPORT AND MINUTES Finance & Asset Management Committee Members: Drew Porter, Frank Alvarado, Paige Chapel, Dinah Thoreson, Robert Schwartz Staff Liaisons to the Board: Deena Wallis-York, Brad Lange, Jill Fleming, Scott Matthews (BOLD indicates those members in attendance) Date, time and location of meeting: August 2, 2016 4-5pm Pike/Pine Room Date, time and location of next meeting: September 6th, 2016 4-5pm Pike/Pine Room Minutes: The committee reviewed the monthly financial reports. The blended reports now include Union James, El Nor and Harrison at 15th. The purchase of the Liberty Bank Building land is included on the balance sheet effective June 30th, 2016. The internal control weakness has been addressed with communication on any financial instruments being presented to finance prior to signing to ensure timely and accurate recording of financial transactions. Finance is working with external auditors to address this issue. The twelve month cash forecast was reviewed. The committee reviewed the Oleta Apartments Limited Partnership Year 15 resolutions. The resolutions and coversheet will be presented at the September 2016 Board meeting for adoption. A discussion occurred concerning the contribution to Oleta Apartments Limited Partnership by Capitol Hill Housing in the amount of $909K from the Board Designated Reserve. This will be used by Oleta Apartments Limited Partnership to repay the $909K owed to CHHIP. This will enable Oleta Apartments Limited Partnership to pay in full the note owed. It is anticipated the cash will take one week to be repaid to the Board Reserve. It is anticipated these transactions will occur in September 2016. The committee reviewed the 2016 watch list. A discussion of the Operational Leadership team efforts to review this list and develop a process to improve vacancy in HUD buildings ensued. The committee reviewed the Banner Bank loan offer letter to fund $408K for upgrades and repairs to the 412 Apartment in the Central Area of Seattle, which has 12 units. The committee recommended that management continue to work with Banner Bank to secure the financing. The Central City Affordable Housing Board will have to meet to approve the loan agreement. Capitol Hill Housing is the sponsor of this building. The Board resolution to increase the pre-development/development activities for B-north will be presented at the Board meeting. The limit will be increased to $1.4 million. The final agreements between Sound Transit, Gerding Edlen, and Capitol Hill Housing are being negotiated. Current negotiations on the Completion Guaranty have Gerding Edlen fulfilling an Unconditional Guaranty of Completion, the net worth covenant of at least $30,000,000 and Capitol Hill Housing the liquidity covenant, which is $1.3 million in liquid assets. The Finance and Property Development teams will look at alternatives such as a letter or credit or maintaining cash that meets this requirement. This will be reported at the September Finance and Asset Management and Acquisitions committee meeting. Page 13

The committee listened to the idea of increasing our line of credit with Banner or another institution to locate low cost pre-development and development financing. The committee also listened to the idea of a purchase card to earn fees and to extend cash use for 30 days. Finance will continue to explore financial instruments and report back to the committee. The committee was provided an update on the Harvey acquisition. The phase 2 environmental investigation is in process. We are waiting for approval of the transaction from the Department of Commerce. The Harrison and El Nor property liquidation was completed March 31, 2016. These properties are now blended component units. Management anticipates that year 15 for the Oleta Apartments Limited Partnership will be completed in December 2016. The $2.7 million loan for Mary Ruth Manor was signed on April 19, 2016. This is a construction loan that will convert to a permanent loan upon completion of work. The Oppenheimer loan was paid off in full in the amount of $509K. The committee reviewed the idea of explaining variable costs, step costs, sunk costs, controllable costs and fixed costs with the Board of Directors and agreed that a short financial explanation would be a good idea. The Director of Finance will solicit recommendations from attendees of the Board meeting on other topics. The September Board meeting will have a presentation on discrete and blended component units. Items in italic have not been changed from the prior Comments and Analysis report. Comments and Analysis re: June 30, 2016 CHH Blended Balance Sheet Unrestricted Cash position remained stable at $1.9 million. Due from Affiliates decreased $(124K) primarily due to GAAP lease adjustment, changes in payroll advances, payments of some deferred development fees and short term advances. Restricted cash decreased $278K Land increased $560k due to the recording of the Liberty Bank Building purchase. Buildings, Improvements & Equipment increased $844K. Accumulated Depreciation increased $933K Notes payable increased $837K primarily due to the recording of the note payable for the Liberty Bank purchase. Net Asset Position reflects a GAAP presentation and has increase of $715K. The Board Presentation of the balance sheet is presented on the accrual basis following standard generally accepted accounting principles (GAAP).

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Comments and Analysis: Year to date June 30, 2016 Real Estate Modified Cash Income Statement Tenant Revenue is $28K favorable to budget or 1% primarily driven by higher commercial rents than anticipated in the original budget. This variance is anticipated to continue. Other operating revenue is $310K favorable to budget or 23% driven by $312K timing difference based on the collection of prior year development fees earlier than anticipated in the budget. Total other revenue is $166K favorable to budget or 62% Interest received is $45K higher than anticipated in the budget. Grants and donations have been received earlier than anticipated in the budget. CHHIP was selected by LISC and received $160K in new funding. We anticipate a favorable $160K to budget at year end in this category. A new unbudgeted position was hired to manage the four grants awarded, which is completely paid from the grant. An additional $100K will be used to offset a portion of the unfavorable forecast for payroll, benefits and taxes as discussed below. Vacancy loss for the portfolio is 3.1% for year to date 2016. Vacancy loss for 2015 and 2014 was 2.8% and 3.8% respectively. For budget purposes we assumed vacancy rates ranging from 3-5% depending on the building. Early in the year, smaller buildings impact vacancy loss more than later in the year. Debt service is favorable $139K or 11%. In April 2016 we refinanced with Beneficial State Bank to pay off Mary Ruth Manor’s Oppenheimer loan and to provide capital for necessary repairs at Mary Ruth Manor. A year end forecast will be provide with the July 2016 financials to determine if the favorable variance is timing or budget related. Insurance is ($22K) or -15% unfavorable. Management anticipates that this line item will end the year approximately $22K unfavorable. The final base insurance was $19K higher than anticipated in the budget. Due to loan agreements we had to purchase terrorism insurance on two of our properties (Villa and Haines) which was not anticipated in the budget. Other operating expenses are $36K favorable to budget or 3%

Management anticipates $95K to be charged to this line item prior to year-end for recruitment consulting and development consulting costs which are not included in the base budget.

Compliance, Taxes and Licenses are favorable to budget by $26K. Please note that $19K of the favorable variance is related to a refund we received on property taxes for Harrison and 15th which was not anticipated in the budget. Please note that in July this $19K will be in revenue and not expenses.

Management will continue to monitor the items in other operating expenses looking for opportunities to find expenditure savings to offset unfavorable variances.

Payroll, taxes and benefits are ($34K) unfavorable to budget or -1%

Due to unanticipated pay increases driven by new hiring to date and adjustments to existing staff pay, our 2016 budget anticipated $82K less in payroll, taxes and benefits than we are currently spending.

Management anticipates we will need to pay approximately $28,000 more than budget for future hires to attract solid candidates.

Management hired one full time equivalent to manage the LISC grants we were awarded. This position is fully funded and will increase total grant revenue as noted above. In addition $100K is anticipated to be used to offset the negative budget variance in payroll, taxes and benefits.

In total management anticipates a negative payroll to budget variance of $165,000 based on current payroll activity. The net negative payroll to budget variance considers the revenue increase is $55K.

Additionally we will experience approximately $110K in recruitment and consulting costs for the open positions. This will impact the other operating expenditure costs as noted above. Page 15


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6.30.2016

Board

Presentation

12.31.2015

Board

Presentation

Format Based on

Audited Numbers

12.31.2014

Board

Presentation

Format Based on

Audited Numbers

12.31.2013

Audited

12.31.2012

Audited

Variance from

Year End with

same blended

entities

Percentage

Change

Assets

Unrestricted Cash 1,936,504 1,402,774 1,311,115 1,360,596 1,226,012 533,730 38%

Accounts Receivable 367,637 340,450 180,173 59,063 50,806 27,187 8%

Prepaids & Other Current Assets 170,794 160,196 151,459 206,923 110,523 10,598 7%

Contributions/Grants Receivable - 44,520 95,124 32,250 46,125 (44,520) -100%

Due from Affiliates 4,851,960 4,976,316 5,051,801 3,185,542 2,801,124 (124,356) -2%

Board Designated Operating Reserve 1,000,000 1,000,000 1,186,145 816,483 615,391 0 0%

Board Designated Opportunity Reserve 647,533 643,976 - - 3,557 1%

Restricted Cash 4,280,538 4,558,940 4,095,433 3,761,648 3,715,726 (278,402) -6%

Notes Receivable from Affiliates 16,319,562 16,381,921 16,395,903 16,403,826 16,480,020 (62,359) 0%

Land 13,194,826 12,634,826 12,634,826 13,576,257 13,576,257 560,000 4%

Buildings, Improvements & Equipment 61,564,170 60,719,599 58,932,348 56,713,903 53,760,686 844,571 1%

Accumulated Depreciation (32,461,066) (31,527,724) (29,626,713) (26,859,942) (23,470,745) (933,342) 3%

Lease Receivable 912,402 912,402 932,136 951,476 983,031 0 0%

Investment in LPs/LLCs 641,010 640,472 660,566 316,764 316,934 538 0%

Other Assets 181,017 187,679 207,765 172,221 192,119 (6,662) -4% Total Assets 73,606,887 73,076,347 72,208,084 70,697,010 70,404,009 530,540.00 1%

Liabilities

Notes Payable 44,614,300 43,777,452 45,585,641 46,822,225 48,357,295 (836,848) -2%

Accrued Interest Payable 3,913,284 3,914,328 3,943,677 3,730,045 3,530,973 1,044 0%

Accounts Payable & Accrued Liabilities 4,355,318 3,970,204 3,168,439 2,343,484 2,844,920 (385,114) -10%

Tenant Security Deposit Liability 525,689 501,478 434,290 391,750 329,270 (24,211) -5%

Total Liabilities 53,408,591 52,163,462 53,132,047 53,287,507 55,062,458 (1,245,129) -2%

Net Position 20,198,297 20,912,885 19,076,037 17,409,503 15,341,551 714,588 3%

Total Liabilities and Net Assets 73,606,888 73,076,347 72,208,084 70,697,010 70,404,009 (530,541) -1%

Note: El Nor, Harrison and Union James are included in the report.

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YTD Modified Cash Income Statement

Capitol Hill Housing Blended Units

As of 6.30.2016

Year to Date

Actual

Year to Date

Budget

Year to Date

Budget

Variance

Variance

Pct Total Budget

Budget

Remaining

Revenue

Tenant Revenue 5,196,497 5,168,105 28,392 0.54% 10,391,992 5,195,495

Other Operating Revenue

Property Management Fees 683,352 697,911 (14,560) (2.08)% 1,395,823 712,471

Development Fee 312,575 0 312,575 0.00% 441,000 128,425

Other Operating Revenue 698,740 686,033 12,708 2% 1,442,065 743,325

Total Other Operating Revenue 1,694,667 1,383,944 310,723 22% 3,278,888 1,584,221

Other Revenue

Grants & Donations 330,660 229,063 101,598 44.35% 630,000 299,340

Interest Income 85,138 40,000 45,138 112.84% 160,000 74,862

Other 19,748 52 19,695 100% 110 (19,638)

Total Other Revenue 435,546 269,115 166,431 61.84% 790,110 354,564

Total Revenue 7,326,710 6,821,164 505,546 7% 14,460,990 7,134,280

Operating Expenses

Debt Service 1,098,344 1,237,562 139,219 11% 2,439,284 1,340,941

Insurance 174,922 152,471 (22,451) (14.72)% 306,787 131,865

Other Operating Expense 1,045,341 1,081,407 36,065 3% 2,095,449 1,050,107

Payroll, Taxes and Benefits 2,632,674 2,598,950 (33,724) (1.29)% 5,300,829 2,668,155

Property Mgmt Fee Expense 463,144 463,214 70 0.01% 928,928 465,784

Repair and Maintenance 662,266 815,041 152,776 18.74% 1,649,143 986,878

Utilities 642,003 632,810 (9,192) (1.45)% 1,266,642 624,639

Total Operating Expenses 6,718,693 6,981,455 262,762 34.59% 13,987,062 7,268,369

Operating Surplus (Deficit) B4

Reserves

608,017 (160,291) 768,308 126% 473,928 (134,089)

Reserve Contributions

Replacement Reserve (242,630) (242,736) 107 (0.04)% (485,473) (242,843)

Operating Reserve (13,692) (13,692) 0 0.00% (27,384) (13,692)

Other Reserve (2,300) (2,300) 0 0.00% (4,600) (2,300)

Total Reserve Contributions (258,622) (258,728) 106 (0.04)% (517,457) (258,835)

Operating Surplus (Deficit) 349,395 (419,019) 768,414 1 (43,529) (392,924)

This report includes Union James, Harrison at 15th and El Nor.

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Entity Bank CHH Blended Component Unit Type Balance

260 Chase Larned Reserves 60,252

285 Chase 412 Reserves 105,203 290 Chase Holden Vista Security Deposit -

Total Chase 165,455

100 KeyBank Capitol Hill Housing Security Deposit 281,290

100 KeyBank Capitol Hill Housing - SoundFamilies Restricted Savings 50,626

255 KeyBank Hazel Plaza Reserves 134,278

255 KeyBank Hazel Plaza Security Deposit 2,478

260 KeyBank Larned Security Deposit 28,970

270 KeyBank Byron Wetmore Reserves 36,091

270 KeyBank Byron Wetmore Security Deposit 7,894

285 Key Bank 412 Security Deposit 4,237

290 KeyBank Holden Vista Reserves 57,283

290 KeyBank Holden Vista Security Deposit 3,591

295 KeyBank Mary Ruth Manor Reserves 162,983

295 KeyBank Mary Ruth Manor Security Deposit 6,027

305 KeyBank EJSH Security Deposit 11,720

335 KeyBank Fleming Apts LP Security Deposit 21,433

315 KeyBank Gilman Court LP Reserves 91,715

315 KeyBank Gilman Court LP Security Deposit 19,531

345 KeyBank Villa Apts LP Reserves 112,122

345 KeyBank Villa Apts LP Security Deposit 43,342

350 KeyBank El Nor LP Security Deposit 8,008

350 KeyBank El Nor LP Reserve 291,929

350 KeyBank El Nor LP Capital Reserves 182,798

355 KeyBank 18th Ave Apartments Security Deposit 1,915

360 KeyBank Harrison Security Deposit 19,871 400 KeyBank Ponderosa Reserves 380,903

400 KeyBank Ponderosa Security Deposit 3,487

449 KeyBank 12th Avenue Arts Master Tenant LLC Security Deposit 67,596

470 Key Bank Union James Security Deposit 4,741

470 Key Bank Union James Reserves 35,932

Total KeyBank 2,072,791

280 Banner Berneva Reserves 6,380

330 Banner Seneca Reserves 236,383

330 Banner Seneca Security Deposit 19,496

Total Banner 262,260

100 LGIP Capitol Hill Housing Reserves 1,995,682

Total LGIP 1,995,682

305 Oppenheimer EJSH Escrow 29,377

305 Oppenheimer EJSH Reserves 128,146

295 Oppenheimer Mary Ruth Manor Escrow -

Total Oppenheimer 157,523

360 Chase Harrison Reserves 139,612

Total Chase 139,612

355 US Bank 18th Ave Apartments Reserves 116,188

Total USBank 116,188

335 BofA Fleming Apts LP Reserves 53,584

Total BofA 53,584

Total Restricted - CHH Blended Components 4,963,094

100 LGIP Capitol Hill Housing Board Designated Reserves 1,647,533

Total Designated 1,647,533

100 Union Bank Capitol Hill Housing EQII 274,380

Total Union Bank 274,380

100 KeyBank Capitol Hill Housing M/M Savings 3,012

100 KeyBank Capitol Hill Housing Payroll 1,800

100 KeyBank Capitol Hill Housing Operating Checking 604,892

110 KeyBank Capitol Hill Dev. Assoc Operating Checking 3,956

160 KeyBank Capitol Hill Real Estate Mgmt Services Operating Checking 43,239

255 KeyBank Hazel Plaza Operating Checking 27,493

260 KeyBank Larned Operating Checking 51,830

270 KeyBank Byron Wetmore Operating Checking 23,342

285 KeyBank 412 Operating Checking 24,424

290 KeyBank Holden Vista Operating Checking 26,839

295 KeyBank Mary Ruth Manor Operating Checking 68,555

295 Beneficial States Bank Mary Ruth Manor Construction Op 163,841

305 KeyBank EJSH Operating Checking 61,552

335 KeyBank Fleming Apts LP Operating Checking 28,612

315 KeyBank Gilman Court LP Operating Checking 49,543

345 KeyBank Villa Apts LP Operating Checking 69,603

350 KeyBank El Nor LP Operating Checking 167,000

355 KeyBank 18th Ave Apartments Operating Checking 19,893

360 KeyBank Harrison Operating Checking 37,564

400 KeyBank Ponderosa Operating Checking 23,775

448 KeyBank 12th Ave Arts Development Operating Checking 21,723

449 KeyBank 12AA Master Tenant LLC Operating Checking 80,634

465 KeyBank Union & 24th Construction 15,536

470 KeyBank Union James 40,887

Total KeyBank 1,659,546

100 Cash Various Petty Cash - CHHIP 100

Total Petty Cash 100

CHH

CASH IN BANK

FOR THE MONTH ENDING: JUNE 2016

8/2/2016 9:42 AM M:\Finance & Accounting\Board reports\2016\June report for the August 2016 FAM\ Copy of 2016 Cash Report Totals by Bank (3).xlsx JUN 16 Page 1 of 2

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CHH

CASH IN BANK

FOR THE MONTH ENDING: JUNE 2016

280 Banner Berneva Operating Checking 8,687

330 Banner Seneca Operating Checking 239,243

465 KeyBank Union & 24th Construction -

Total Banner 247,930

Total Unrestricted - CHH Blended Components 1,936,504

Total All Cash - CHH Blended Components 8,301,679

Bank Discrete Component Unit Type Balance

365 Chase Oleta Reserves 151,292

405 Chase Woodland Park Ave LLC Reserves 135,278

455 Chase AAA Security Deposit 5,690

455 Chase AAA Reserves 618,290

Total Chase 910,550

390 KeyBank Broadway & Pine Reserves 290,157

390 KeyBank Broadway & Pine Security Deposit 25,330

370 KeyBank Helen V Apts LLC Reserves 263,628

370 KeyBank Helen V Apts LLC Security Deposit 7,057

410 KeyBank Holiday Apts Security Deposit 18,131

425 KeyBank Jefferson & 12th Reserves 269,289

425 KeyBank Jefferson & 12th Security Deposit 40,404

365 KeyBank Oleta Security Deposit 22,922

380 KeyBank Pantages Apts LLC Security Deposit 27,589

385 KeyBank Silvian Security Deposit 5,933

415 KeyBank SOPI / Unity Village Reserves 179,306

415 KeyBank SOPI / Unity Village Security Deposit 13,678

405 KeyBank Woodland Park Ave LLC Security Deposit 12,162

440 KeyBank 12th Avenue Arts Housing Security Deposit 83,319

440 KeyBank 12th Avenue Arts Housing Reserves 564,054

447 KeyBank 12th Avenue Arts Associates LLC 12AA Key CDE Controlled Account 0

445 KeyBank 12th Avenue Arts Associates LLC 12AA HEDC Fee Reserve Account 220,334

445 KeyBank 12th Avenue Arts Associates LLC 12AA Key Fee Reserve Account 322,813

460 KeyBank Squire Park Plaza Security Deposit 63,037

460 KeyBank Squire Park Plaza Reserves 27,795 Total KeyBank 2,429,143

445 Bank of NY Mellon Trust Co 12th Avenue Arts Associates LLC 12AA 108 Loan Guaranteed Loan Funds Account 23,506

445 Bank of NY Mellon Trust Co 12th Avenue Arts Associates LLC Escrow 689

Total Bank of NY Mellon Trust Co 24,195

410 UnionBank Holiday Reserves 174,646

Total UnionBank 174,646

380 US Bank Pantages Apts LLC Reserves 563,963

385 US Bank Silvian Reserves 480,860 Total USBank 1,044,823

Total Restricted - Discrete Components 4,583,357

455 Chase AAA Operating Checking 30,753

455 Chase AAA Construction 15,868

Total Chase 46,620

365 KeyBank Oleta Operating Checking 32,726

370 KeyBank Helen V Apts LLC Operating Checking 47,598

380 KeyBank Pantages Apts LLC Operating Checking 39,573

385 KeyBank Silvian Operating Checking 41,429

390 KeyBank Broadway & Pine Operating Checking 50,967

405 KeyBank Woodland Park Ave LLC Operating Checking 17,245

410 KeyBank Holiday Apts Operating Checking 36,341

415 KeyBank SOPI / Unity Village Operating Checking 26,627

425 KeyBank Jefferson & 12th Construction 241

425 KeyBank Jefferson & 12th Operating Checking 96,082

440 KeyBank Twelfth Avenue Arts Res Operating Checking 214,969

440 KeyBank Twelfth Avenue Arts Housing LLP 12AA Housing-Construction Checking 199,661

445 KeyBank 12th Avenue Arts Associates LLC 12AA Commercial-Construction Ckg 19,904

445 KeyBank 12th Avenue Arts Associates LLC 12AA Commercial Operating (Debt Service) 324,328

460 KeyBank Squire Park Plaza Operating Checking 256,153 Total KeyBank 1,403,844

Total Unrestricted - Discrete Components 1,450,465

Total All Cash - Discrete Components 6,033,822

Total All Cash - CHH Blended Components 8,301,679

Total All Cash 14,335,500

TOTALS BY BANK

Key Bank 7,565,324$

Chase 1,122,625$

Banner 510,189$

US Bank 1,161,011$

Union Bank 449,027$

Bank of America 53,584$

LGIP 3,643,215$

Other and Petty 181,818$

TOTAL CASH 14,686,793$

8/2/2016 9:42 AM M:\Finance & Accounting\Board reports\2016\June report for the August 2016 FAM\ Copy of 2016 Cash Report Totals by Bank (3).xlsx JUN 16 Page 2 of 2

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Capitol Hill HousingFinance Dashboard

Blended Component Units: Units Actual Budget Var % Actual Budget Var %

cost per

unit

2016

YTD

2015

Vacancy

after

reserves

Holden Vista 16 101,913 113,497 -10% 101,851 77,328 -32% 6,366 14.4% 15.1% (19,412)

Union James 24 121,314 111,566 0% 77,330 73,086 0% 3,222 10.0% 9.8% 15,854

Gale Place 24 143,331 145,937 -2% 101,741 120,085 15% 4,239 7.8% 3.0% 21,430

Hazel Plaza 16 124,609 132,021 -6% 64,049 69,001 7% 4,003 7.2% 2.3% (4,533)

Four Twelve 12 84,264 89,046 -5% 68,911 81,823 16% 5,743 6.9% 9.4% 8,153

Ponderosa 23 99,464 101,033 -2% 98,884 91,119 -9% 4,299 5.3% 0.8% (6,663)

Four Ten 6 26,577 26,630 0% 21,129 18,296 -15% 3,522 4.8% 1.5% 448

Gilman Court 25 148,482 144,559 3% 108,294 122,881 12% 4,332 4.8% 1.2% 19,425

Miller Park 12 66,427 69,317 -4% 45,011 50,196 10% 3,751 4.6% 3.0% 4,993

Bremer 49 206,259 206,323 0% 137,852 131,867 -5% 2,813 4.4% 2.4% 14,140

Lincoln Court 29 132,578 135,518 -2% 82,089 77,636 -6% 2,831 4.4% 2.3% (5,922)

Byron Wetmore 12 63,349 66,380 -5% 56,427 59,196 5% 4,702 3.8% 6.1% (1,678)

John Carney 27 107,093 107,465 0% 79,751 80,107 0% 2,954 3.3% 2.2% 6,592

Centennial 30 163,832 161,544 1% 70,424 87,002 19% 2,347 3.2% 1.4% 32,733

Burke Gilman Gardens 15 90,659 88,878 2% 62,032 67,827 9% 4,135 3.1% 5.0% 1,860

Devonshire 62 279,358 276,967 1% 191,095 196,225 3% 3,082 2.8% 2.4% 28,432

Elizabeth James 60 297,477 298,952 0% 193,703 203,395 5% 3,228 2.6% 1.7% 27,684

Melrose 30 120,246 121,116 -1% 86,035 93,312 8% 2,868 2.5% 7.7% 15,067

Fredonia 12 140,326 146,226 -4% 77,899 85,417 9% 6,492 2.4% 4.7% 24,869

Harrison at 15th 19 181,507 170,548 6% 98,465 97,599 -1% 5,182 2.4% 0.8% 18,509

Brewster 35 150,592 141,767 6% 92,921 99,599 7% 2,655 2.2% 2.4% 45,072

Boylston Howell 30 157,233 150,822 4% 106,774 112,838 5% 3,559 2.1% 1.6% (12,470)

Mary Ruth Manor 20 123,371 148,435 -17% 86,636 91,216 5% 4,332 2.1% 2.2% (7,838)

Fleming 36 160,025 157,157 2% 95,167 103,763 8% 2,644 2.0% 3.8% 17,096

Park Hill 30 205,036 197,380 4% 116,445 129,004 10% 3,882 1.8% 3.3% 56,681

Berneva 12 57,152 51,727 10% 50,151 43,927 -14% 4,179 1.7% 0.6% 450

El Nor 55 286,863 281,691 2% 209,560 221,673 5% 3,810 0.7% 0.2% 14,126

Villa 62 352,179 345,586 2% 219,467 226,005 3% 3,540 0.3% 2.9% 19,627

Broadway 5 30,342 29,334 3% 16,654 21,503 23% 3,331 0.0% 2.5% 6,638

Casa di Cinque 5 37,163 36,163 3% 17,683 28,672 38% 3,537 0.0% 4.9% 16,368

Eighteenth Avenue 9 59,655 58,539 2% 33,497 27,879 -20% 3,722 0.0% 0.2% 3,937

Larned 33 121,286 130,725 -7% 125,689 124,537 -1% 3,809 0.0% 1.9% (9,363)

Maxwell 4 21,545 20,880 3% 19,882 17,832 -11% 4,970 0.0% 0.0% (1,379)

Seneca 32 165,605 161,678 2% 114,754 121,924 6% 3,586 0.0% 0.0% 20,123

4,627,110 4,625,401 3,128,253 3,253,767 371,049

Discrete Component Units:

Haines AAA 30 141,306 148,273 -5% 145,030 111,533 -30% 4,834 6.5% 1.7% (44,674)

Squire Park Plaza 60 572,904 588,320 -3% 261,811 229,853 14% 4,364 4.5% 8.2% 128,998

Pantages 49 244,628 245,392 0% 223,570 182,692 -22% 4,563 4.1% 1.4% (32,160)

Unity Village 30 141,416 149,670 -6% 126,662 128,172 1% 4,222 3.9% 2.0% 8,196

Silvian 32 181,720 182,439 0% 134,712 124,437 -8% 4,210 3.8% 3.6% (12,100)

Helen V 38 200,781 207,257 -3% 134,561 126,649 -6% 3,541 3.3% 1.2% (1,338)

Fremont Solstice 18 99,998 102,698 -3% 72,247 75,282 4% 4,014 2.0% 0.3% (2,982)

Holiday 30 167,801 165,605 1% 81,446 98,036 17% 2,715 1.8% 2.2% 21,748

Oleta 34 156,315 152,651 2% 86,589 99,589 13% 2,547 1.7% 2.8% 18,136

Jefferson Housing 40 249,190 250,166 0% 134,488 144,318 7% 3,362 1.4% 2.2% 13,213

Twelfth Avenue Arts 88 474,772 469,442 1% 233,388 240,608 3% 2,652 0.9% 1.6% 43,009

Broadway Crossing 44 221,378 210,498 5% 152,121 164,778 8% 3,457 0.7% 0.8% 32,569

1364 2,852,208 2,872,410 1,786,624 1,725,946 172,615

Income YTD Op expenses B4 Debt 2016 Op 2016 CF

Year to Date at June 30, 2016

M:\Finance & Accounting\Dashboard\2016\6-16 Finance dashboard.xlsPage 21

Watch List Criteria

7/21/2016

2015 Debt Cover

Ratio < 1.15

2014 Net Income

after Debt Service

< 0

2015 Net Income

after Debt Service

< 0

Net Income after Debt

Service < 0 last two

years

2015 Vacancy Loss > 5% 2016 YTD Vacancy Loss

> 5% (through May)

Net Income after

Debt Service

Growth < 3% YOY

"Red Dot" on 2015

Portfolio

Assessment

"Unhappy

Quadrant" on

2015 Portfolio

Assessment

Proposed

Watch List

Properties

Berneva Boylston Howell Berneva Boylston Howell Burke Gilman Gardens Bremer Berneva Berneva Fremont Solstice Berneva

Boylston Howell Elizabeth James Boylston Howell Fremont Solstice Byron Wetmore Four Ten Boylston Howell Boylston Howell Boylston Howell

Fremont Solstice Fleming Fremont Solstice Lincoln Court Four Twelve Four Twelve Bremer Byron Wetmore Byron Wetmore

Harrison at 15th Fremont Solstice Holden Vista Holden Vista Gale Place Brewster Fleming Fleming

Helen V (1.14) Lincoln Court Lincoln Court Melrose Gilman Court Byron Wetmore Four Ten Fremont Solstice

Lincoln Court Miller Park Union James Hazel Plaza Devonshire Gale Place Gale Place

Oleta Holden Vista Elizabeth James John Carney Holden Vista

Miller Park Fleming Maxwell Lincoln Court

Union James Four Ten Park Hill Oleta

Four Twelve Union James

Fremont Solstice

Gale Place

Gilman Court

Hazel Plaza

Holden Vista

Lincoln Court

Melrose

Miller Park

Oleta

Park Hill

Seneca

Unity Village

Villa

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Page 23

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Page 27

RESOLUTION 2016-___

ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS OF

CH DEVELOPMENT ASSOCIATION

(Oleta Apartments)

BACKGROUND

CH Development Association, a Washington nonprofit corporation ("CHD"), was organized for,

among other purposes, the fostering of the development of housing for low income households

and to support and carry out the purposes of Capitol Hill Housing Improvement Program, a

Washington public corporation (“CHH”).

CHH is the general partner of Oleta Apartments Limited Partnership, a Washington limited

partnership (the “Partnership”), which is the owner of a residential apartment project known as

Oleta Apartments located at 1816 Bellevue Avenue, Seattle, Washington (the “Property”).

NEF Assignment Corporation, an Illinois not-for-profit corporation (“NEF”), is the limited

partner in the Partnership and holds a 99.99% interest in the Partnership (the “Limited Partnership

Interest”).

CHH has assigned certain rights to purchase the Limited Partnership Interest to CHD. CHD

desires to acquire the Limited Partnership Interest. NEF has agreed to transfer its Limited

Partnership Interest to CHD for no consideration.

RESOLUTIONS

In furtherance of the foregoing, the Board of Directors of CHD hereby resolve as follows:

CHD is hereby authorized, directed and empowered to execute and deliver such

documents and to take such actions as may be necessary to acquire the Limited

Partnership Interest and to offer such indemnities to NEF as may be reasonably required

as a condition of the transfers.

Any and all documents hereby authorized to be executed on behalf of CHD are authorized to

be executed or taken by any two of the following individuals or their duly appointed

successors (the “Authorized Representatives”):

Name: Title:

Catherine Hillenbrand President

Drew Porter Vice President/Treasurer

Liz Dunn Director

Paige Chapel Secretary

Page 28

Following its admission into the Partnership, CHD shall take such steps as is necessary to

permit CHH, as general partner of the partnership to use reserves of the Partnership to pay

transaction costs incurred in connections with the transactions contemplated herein.

Any two Authorized Representatives are authorized, empowered and directed to take such

further action on behalf of CHD, as the Authorized Representative may deem necessary to

effectuate the foregoing.

All acts taken by CHD prior to the date hereof and in furtherance of the foregoing are hereby

ratified and affirmed.

[CERTIFICATE APPEARS ON THE FOLLOWING PAGE]

Page 29

OFFICER CERTIFICATE

I, ________________, certify that I am the ___________of CHD and that the foregoing

Resolutions were duly adopted at a meeting of the Board of Directors of CHD held on

_________________, 2016, in accordance with the Articles of Incorporation and Bylaws of the

CHD upon proper notice and at which time a quorum was present.

Dated ___________________ 2016 By:_____________________________

Page 30

RESOLUTION 2016-___

ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS OF

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM

(Oleta Apartments)

BACKGROUND

Capitol Hill Housing Improvement Program, a Washington public corporation ("CHH") was

organized for the purpose, among others, of developing and operating low income housing.

CHH is the general partner of Oleta Apartments Limited Partnership, a Washington limited

partnership (the “Partnership”), which is the owner of a residential apartment project known as

Oleta Apartments located at 1816 Bellevue Avenue, Seattle, Washington (the “Property”).

NEF Assignment Corporation, an Illinois not-for-profit corporation (“NEF”), is the limited

partner in the Partnership and holds a 99.99% interest in the Partnership (the “Limited Partnership

Interest”).

CHH has assigned certain rights to purchase the Limited Partnership Interest to CH Development

Association, a Washington nonprofit corporation (“CHD”), an affiliate of CHH. CHD, whose

sole corporate member is CHH, desires to acquire the Limited Partnership Interest. NEF has

agreed to transfer its Limited Partnership Interest to CHD for no consideration.

CHH, in both its individual capacity, as the general partner of the Partnership and as the sole

corporate member of CHD, desires to execute such documents and to take such actions as may be

required to facilitate the transfer of the Limited Partnership Interest to CHD.

RESOLUTIONS

In furtherance of the foregoing, the Board of Directors of CHH, in its individual capacity, as the

general partner of the Partnership, and as the sole corporate member of CHD, hereby resolves as

follows:

CHH is hereby authorized, directed and empowered to execute and deliver such documents

and to take such actions as may be necessary to facilitate the transfer of the Limited

Partnership Interest to CHD.

CHH is hereby authorized, directed and empowered to execute and deliver such

documents and to take such actions as may be necessary to facilitate the review and

approval of such transfer by the project’s lenders and the Washington State Housing

Finance Commission, if required.

CHH hereby approves and authorizes the acquisition by CHD, of the Limited Partnership

Interest.

CHH is authorized and directed to take such steps as may be necessary to pay out of the

operating reserves of the Partnership, the costs incurred by CHH and CHD in connection

Page 31

with the transactions contemplated herein, including but not limited to legal fees, excise

taxes due on the transactions, and other transaction costs.

Any and all documents hereby authorized to be executed on behalf of CHH are authorized to

be executed or taken by any two of the following individuals or their duly appointed

successors (the “Authorized Representatives”):

Name: Title:

Catherine Hillenbrand Chair

Robert Schwartz Vice Chair

Selomé Teshome Secretary

Drew Porter Treasurer

Any two Authorized Representatives are authorized, empowered and directed to take such

further action on behalf of CHH in its individual capacity, as general partner of the

Partnership or as the corporate member of CHD, as such Authorized Representatives may

deem necessary to effectuate the foregoing.

All acts taken by CHH prior to the date hereof and in furtherance of the foregoing are hereby

ratified and affirmed.

[CERTIFICATE APPEARS ON THE FOLLOWING PAGE]

Page 32

CERTIFICATE

I, ________________, certify that I am the ___________of Capitol Hill Housing

Improvement Program and that the foregoing Resolutions were duly adopted at a meeting

of the Board of Directors of CHH held on ________________, 2016, in accordance with

the Charter and Rules and Regulations of the Corporation upon proper notice and at

which time a quorum was present.

Dated ___________________ 2016 By:_____________________________

Page 33


Page 34

SECTION 4:

Board Survey Action Items &

Next Steps Memo SEC

TIO

N 4

Page 35


Page 36

Memorandum August 4, 2016 TO: CHH Board FROM: Chris Persons RE: Board survey action items and next steps In May and June of 2016 the Board responded to a survey focused on board and board meetings success. This memo outlines follow up to the results of the survey (which have been presented to the Board) including action items and next steps.

1. Hold one-on-one meetings with some board members who expressed specific concerns questions and based on specific comments.

a. Identify who to have meetings with (Chris, Jill, Cathy and Kiley) b. Schedule meetings (Kiley) [note: one meeting has been held] c. Report back to executive committee on general success of the meetings (Chris and

Cathy) d. To be completed by end of calendar year

2. Board survey (Demographic, contact, areas of expertise)

a. Create a survey to identify various board member skills [Complete] b. Board members complete survey [In process] c. Assemble results with the Board management spreadsheet (Kiley) d. Share with Board and leadership team by September

3. Continue to reach out to board members early in key decision making processes.

a. Using the board skills matrix, create a culture of asking for board input (consultation) on specific items, e.g. LOI review, building design, community engagement.

b. Follow the real estate development process and ensure that board members are consulted early in project life cycle

c. Call board members who have missed committee or board meetings to ensure they are fully aware of key pending decisions

4. Schedule a luncheon with newer board members (and others) to review CHH history, strategic

plan, organizational structure and finances. a. Schedule a luncheon for newer board members in September (Kiley and Jill) b. Create an agenda (E-Team and consult with L-Team) c. Schedule every six months thereafter (Kiley)

5. Clarify board role—do an ARCI (Approve, Recommend, Consulted, Informed) model for major

decisions. a. Create draft model (Jill) [Complete] b. Vet with L-team [Complete] c. Get approval from Executive Committee (Chris and Jill, July) d. Consult with Board (Jill, August)

Page 37

https://en.wikipedia.org/wiki/Responsibility_assignment_matrix#ARCI_.28decisions.29

6. Put more agenda items in consent agenda

a. Eliminate program updates at board meetings (Chris) [Complete and ongoing] b. Use Keys to direct board members to important items in the consent agenda

i. Hyperlink to previous reports/resolutions on website ii. Remind people to read through packet in Keys and opening e-mail

c. Include updates in consent agenda (Chris and Kiley) [Complete and ongoing] d. Remind board members to read the monthly staff reports(Kiley and Chris) [Ongoing] e. Review each board meeting immediately to determine which elements could be

improved for both level of conversation and time management (Chris, Cathy, Jill and Kiley) [Starting in September Ongoing)

7. Review committee meeting regularity. a. Review list of committees at E-Team, L-Team and E-Committee (Jill and teams, by

September) b. Determine if any committees can meet less regularly (Jill and E-Committee, by October) c. Recommend to E-Committee then Board (Jill and E-Committee, by November)

8. Continue to build in resident perspectives.

a. Invite new residents to join PMC (Heyward, by October) b. Continue with periodic property/resident reports at board meetings (Jill), [Ongoing]

i. c. Support the board/resident position (Chris, Heyward and Alice), [Ongoing] d. Schedule a lunch in August/September (Jill, Alice, Heyward and Derrick) e. Figure out additional ways to build in resident perspective (Heyward, Jill Alice, and

Derrick, by November) i. Periodically invite resident(s) to board meetings to share story

ii. Do a second round of Resident board outreach to identify pool of potential resident board members and residents to serve on committees

iii. Board tours of buildings and invite board members to building events, e.g. BBQs iv. Add resident services report to consent agenda

9. Design and begin holding quarterly president's round table discussions a. Create agenda (Jill and L-team, by October) b. Schedule (Kiley, November)

10. Invite Key staff to board meetings (L-Team) [Ongoing]

11. Create staff profile to share with board/Create board profile to share with staff in CEO message

a. Identify board members and staff and write profiles (Kiley, by October)

12. Continue inviting Board Members to All Staff Meetings (Kiley and Melissa) [Ongoing] a. Identify Board members to invite to Fall ASM (Kiley, Melissa and ASM planning team)

Page 38

SECTION 5:

Introduction to Resolution

Authorizing Work Outside of

Capitol Hill

SEC

TIO

N 5

Page 39


Page 40

Seattle Municipal Code:

3.110.170 - Scope of activities—Constraint.

B. If authorized by its charter to do so, a public corporation may undertake projects and

activities or perform acts outside the limits of the City only in those areas of another jurisdiction

whose governing body by agreement with the City consents thereto.

(Ord. 103387 § 17, 1974.)

CHH Charter:

ARTICLE XIII

MISCELLANEOUS

Section 1. Geographic Limitation.

The Program may conduct activities outside the Capitol Hill community and outside the

City of Seattle upon prior authorization or concurrence of the Board as described in Article VII,

Section 3.

ARTICLE VII

Section 3. Powers of the Board.

1. Concurrence Required. Prior authorization or concurrence of the Board by resolution

shall be necessary for any of the following transactions:

f. Any project or activity located outside of the Capitol Hill community upon a

determination by the Board that such project or activity will further the purpose of the

Program; provided that if such project or activity is also located outside the limits of the City of

Seattle, the governing body of the jurisdiction in which such project or activity is located must

also, by agreement with the City, consent thereto.

Page 41


Page 42

SECTION 6:

Resolution 2016-12: B-North

Predevelopment Spending

Authorization

SEC

TIO

N 6

Page 43


Page 44

CHH Board Resolution 2016-12 Overview: Broadway TOD: Assignment of Disposition and

Development Agreement, Waive Feasibility, Predevelopment Expenditures, Formation of Ownership

Entity

Purpose: To move forward with full development of the Broadway TOD Project as a co-developer with

Gerding Edlen Development Company, LLC (GED).

Type of Resolution/Motion:

o Is this a formal resolution? ☒ Yes ☐ No

o Are we requesting a motion from the floor? ☐ Yes ☒ No

o Has this resolution been presented to a Board Committee?: ☒ Yes ☐ No

If so, which committee or committees?: Property Development Committee

Charter or Rules and Regulations Modification:

o Does this Resolution change the Charter or Rules and Regulations? ☐ Yes ☒ No

o If yes, you need to give notice to the Board 15 days prior to the proposed change.

o Changes to the Charter or Rules and Regulations must use the strike out format so change is clear to

reader.

General Description and Purpose: Approves CHH acceptance of the assignment of the Sound Transit

DDA and PSA from GED, authorizes moving forward with full development activities and spending up to

$1,400,000 in predevelopment costs, waives Feasibility Contingency under the PSA, and forms a LIHTC

ownership entity.

Organizational requirements of resolution: None

Financial cost of the resolution: Up to $1,400,000 predevelopment costs (to be repaid at the close of

permanent financing) and assumption of the obligations of the DDA, including a Completion Guaranty.

Pros: Allows the project to move forward with full development activities. Predevelopment costs include

architecture costs, permit fees, predevelopment costs to the general contractor, among other expenses.

Cons: The project is moving forward now, under a DDA with Sound Transit, prior to public financing

commitments expected in December. This risk is mitigated by the strong political will and previous

commitment by the City (under a Development Agreement between the City and Sound Transit) to see

this project move forward for the creation of low income housing at a TOD site.

Page 45

Further Board Action or Reporting:

o Is further action required from the Board or a Board Committee? ☒ Yes ☐ No

If yes, please describe: The Board may need to authorize specific predevelopment loan agreements, as

may be required by certain lenders. The PDC will need to authorize submittal of a Due Diligence Notice

to Sound Transit, waiving contingencies under the PSA. The Board will also need to give final approval

for acquisition of the site and closing of all financing prior to construction.

o Is further reporting required to the Board or a Board Committee? ☒ Yes ☐ No

If yes, please describe: Staff must present Due Diligence findings to the PDC, prior to authorization

of a Due Diligence Notice (waiving contingencies) under the PSA.

Page 46

ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION

RESOLUTION NO. 2016-12

Broadway TOD: Accept Assignment of a Disposition and Development Agreement

Waive Feasibility under PSA Predevelopment Expenditures Formation of Ownership Entity

WHEREAS the Portland-based company Gerding Edlen Development Company, LLC (“GED”) was

selected by Sound Transit to develop all four sites around the Broadway light rail station and Sound Transit approved GED’s selection of Capitol Hill Housing (“CHH”) as their non-profit development partner on the B-North site at 923 E. John Street (the “Site”), which will provide approximately 86 new units of affordable housing with commercial space on the ground floor (the “Project”); and

WHEREAS pursuant to Resolution 2015-06 related to the Project, the CHH Board of Directors

has previously authorized the CEO to (1) contract for consultant and other predevelopment costs up to $100,000; (2) enter into a Development Agreement with GED for the co-development of the Site; (3) submit applications for public and private financing; and (4) enter into a Purchase and Sale Agreement for the Site; and

WHEREAS Sound Transit and GED have executed a Disposition and Development Agreement

(DDA) and a Purchase and Sale Agreement (PSA) to sell the Site for the purpose of developing the Project; and

WHEREAS; GED intends to assign the rights and obligations of “Developer” under the DDA to

CHH or an affiliate of CHH, with approval by Sound Transit; and WHEREAS, GED intends to assign the rights and obligations of the PSA for the Site to CHH or an

affiliate of CHH for the purpose of developing the Project; and

WHEREAS, CHH desires to enter into a Co-Development Agreement with GED, which will identify and allocate responsibilities for day-to-day project management, financing, construction management, design, entitlements, schedule and budget, decision-making, and fees earned; and

WHEREAS, CHH intends to enter into certain guarantees and indemnities with lenders and

investors with respect to the financing of the Project, and also wishes to jointly enter into a Completion Guarantee with GED in favor of Sound Transit, at close of financing, pursuant to the DDA; and

Page 47

WHEREAS, CHH desires to move forward with full development activities and incur costs necessary to develop the Project;

NOW, THEREFORE, BE IT RESOLVED by the Board of Capitol Hill Housing as follows:

(1) CHH is authorized, empowered and directed to accept the assignment of the Disposition and Development Agreement (DDA) between Gerding Edlen (GED) and Sound Transit, and assume all rights and obligations thereunder, including jointly entering into a Completion Guarantee with GED in favor of Sound Transit, at close of financing, pursuant to the DDA.

(2) CHH is authorized, empowered and directed to deliver a Due Diligence Notice to Sound Transit,

per the Purchase and Sale Agreement (PSA) to be assigned to CHH, giving CHH’s approval or disapproval of the conditions of the Site (including but not limited to financing, engineering, environmental, structural, geotechnical, or other feasibility), prior to expiration of the Due Diligence Period in the PSA, and with prior review and approval by CHH’s Property Development Committee.

(3) CHH is authorized, empowered and directed to form a new legal ownership entity, with CHH as

a controlling interest, to develop and own the Project.

(4) CHH is authorized, empowered and directed to expend up to One Million Four Hundred Thousand Dollars ($1,400,000) in predevelopment costs for the development of the Project, per the attached Exhibit A: Broadway TOD Predevelopment Budget and Development Timeline, and to secure all necessary financing to achieve the foregoing.

(5) CHH’s Chief Executive Officer is authorized, empowered and directed to sign all agreements,

contracts, legal documents, predevelopment loan documents, or otherwise take all other actions as necessary to effectuate the foregoing.

CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (”CHH”) and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of CHH held on 13th day of January 2016, in accordance with the Charter and Rules and Regulations of CHH upon proper notice and at which time a quorum was present. DATED the _________ day of _______________ 2016 By______________________________________ Its_____________________________________

Page 48

Exhibit A: Broadway TOD Predevelopment Budget and Development Timeline

Estimated Costs: Acquisition (Earnest Money, Escrow) $150,000 Architecture/Engineering $700,000 Consulting (Market Study, Environ, Geo, GC Services, etc.) $200,000 Legal $50,000 Permitting $200,000 Miscellaneous (Lender fees, interest, etc.) $100,000 TOTAL Costs $1,400,000 Estimated Sources: Impact Capital Phase II $750,000 EQII and/or bank LOC $500,000 Impact LOC $150,000 TOTAL Sources $1,400,000 Estimated Development Timeline: Start design and permitting: August 2016 Apply for City, State and County funding: September 2016 City, State and County funding awards: December 2016 MUP issued: October 2017 Building permit issued: May 2018 Close financing: May 2018 Start construction: May 2018 Finish construction: September 2019

Page 49


Page 50

SECTION 7:

Capital Campaign

Concept Draft SEC

TIO

N 7

Page 51


Page 52

300 Homes

3 Communities

1 Campaign

The Seattle area is facing an affordability crisis unprecedented in our lifetimes. Every neighborhood has faced dramatic increases in rents and home sale prices, and finding a place to live is increasingly out of reach for many of our neighbors. Community non-profits are similarly under pressure, and struggle to retain quality space in the neighborhoods they serve.

Capitol Hill Housing is leading a coordinated campaign to bring and preserve affordable apartments to different communities. Partnering with neighborhood community groups, as well as a large regional developer, CHH is providing innovative solutions to Seattle affordable housing crisis across neighborhoods.

The organization is spearheading an $8.XX Million capital campaign, which will leverage nearly $100 Million in other support to create and preserve more than 300 homes and a longtime center for the arts.

THE HOMES

Liberty Bank Building 115 New Affordable Apartments At the site of the nation’s first African American owned bank west of the Mississippi, CHH is developing a mixed-use building with 115 desperately needed apartments. Liberty Bank Building will honor the legacy of the Central District and Include new commercial space that will house locally owned businesses.

Homes at the Capitol Hill Light Rail Station 90 New Affordable Apartments As a key successful example of keeping Capitol Hill affordable, CHH is developing 90 apartments at John and 10th Avenue. Rising above the new light rail station, this building is part of a broader partnership with Gerding Edlen, a well-respected for-profit developer building market rate apartments and commercial space. These new residents will have lower transportation costs, and easy access to jobs, school, and services. CHH

Page 53

is targeting this building to be Ultra-Efficient Affordable Housing, Seattle’s first deep green affordable apartment building.

White Center Community Hub (working name) 93 New Affordable Apartments The White Center Community Resource Center will transform the site of an aging King County building into a vital new home for community based non-profits and residents. The development will have approximately 90 affordable apartments, and be an expanded and improved space for the White Center Food Bank, increased programming space for Southwest Youth and Family Services, and the headquarters of the White Center Community Development Association.

Boylston-Howell Apartments 30 affordable apartments preserved It is easier to preserve than to create affordable housing. Pursing this strategy, CHH will rehabilitate the Boylston-Howell, a well-loved building which provides very rare affordable two and three bedroom apartments, allowing families to live in central Capitol Hill. Funds will allow for the full residing of the building, plus other energy efficiency improvements, ensuring it remains a quality home for decades to come.

Keeping the arts on Capitol Hill 10,000+ square feet of arts space Pike Pine is the Northwest’s epicenter of cutting edge arts creation, as well as the region’s first official Arts District. However, most of the beloved presenting arts organization on Capitol Hill rent their homes, and face the grave danger of being displaced. CHH is exploring the purchase of a classic Pike Pine warehouse building housing an arts non-profit, so that organizations, artists and audiences can remain in the neighborhood.

LEADERSHIP

The 300 homes campaign will be led by Capitol Hill Housing, and involve deep collaboration with partner community organizations. A volunteer capital campaign committee will be formed, with three co-chairs- each representing Capitol Hill, the Central Area, or White Center.

Page 54

SECTION 8:

Consent Agenda and

Attachments SEC

TIO

N 8

Page 55


Page 56

CAPITOL HILL HOUSING REGULAR MEETING August 8, 2016

6:00 – 7:30 PM Regular Meeting 12th Ave Arts Pike Pine Meeting Room


CONSENT ITEMS

MINUTES AND REPORTS 1. July 2016 Draft Board Meeting Minutes (attached for adoption) 2. Tenant Communications Tracking (attached for review) 3. Committee Reports and Minutes (attached for acceptance)

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

Blended

Date Bldg/entity Contract with: Amount: Purpose

May 16, 2016 CHH MRSC $0

Access to small works

roster provided in

accordance with state

law.

June 15, 2016 Mary Ruth

Manor Comcast $0

Ongoing Comcast

contract

Page 57


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REGULAR BOARD MEETING MINUTES Pike-Pine Room


July 11, 2016 Members Present: Frank Alvarado, Dana Behar, Derrick Belgarde, Paul Breckenridge, Paige Chapel, Bob Fikso, Cathy Hillenbrand, Drew Porter, Rob Schwartz, Eric Snow, Selomé Teshome Members Absent: Rachel Ben-Shmuel, Liz Dunn, Michael Malone, b.g. Nabors-Glass, Alice Quaintance Staff Present: Kiley Dhatt (taking minutes), Jill Fleming, Michelle House, Michelle Lambert, Scott McEachran, Stacey McQuade-Reum, Chris Persons, Michael Seiwerath, Joel Sisolak, Deena Wallis-York, Heyward Watson, Gail Williams, Walter Zisette The meeting was called to order by Cathy Hillenbrand at 6:01 pm. Cathy asked for a moment of silence for the tragic shootings that took place last week. Board and staff introduced themselves. Cathy observed that there were three problems in the consent agenda – one in the Contracts and Expenditures Report, one in the June Board Minutes Draft, and one in the Community Programs and External Relations Committee Board Report. She pulled these three items out of the consent agenda for correction and a separate vote. A motion to approve the Consent Agenda – minus the Contracts and Expenditures report, the June 2016 Board Minutes Draft and the Community Programs and External Relations Committee Board Report – was made by Dana Behar, seconded by Drew Porter, and passed unanimously. A motion to correct and approve the following items from the Consent Agenda was made by Rob Schwartz, seconded by Dana Behar, and passed unanimously:

Correct the amount listed for the Sherwin Williams contract in the Contracts and Expenditures Report on page 59 to read “$23,478”;

Correct the June 2016 Board Minutes Draft on page 67 to include SCIDpda as a partner on the Resilient Communities grant; and

Correct the Board members and staff listed as “present” in the Community Programs and External Relations Committee Board Report on page 81.

Disclosures and recusals: There were no disclosures or recusals.

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Public Comment: Laurie McEvers, a resident of the El Nor building, gave public comment. Laurie voiced two major complaints: a lack of transparency about her place on the HUD subsidized housing waiting list, and excessive noise in her building due to poorly insulated walls and floors. Laurie explained that while she is very grateful to have an affordable place to live, she feels that the issues with the building should have been disclosed before she signed her lease. Laurie stated that the living conditions seem substandard to her. She noted that her building’s residents are primarily elderly people who don’t speak English as a first language, and because of this they may not feel empowered to complain about the condition of the building. Lastly, Laurie shared that while she was looking for a unit to rent, she had difficulty finding out information about particular buildings. Very little information is available online and she could not always get building managers to call her back.

Presentation and Discussion Financial analysis: Deena Wallis-York presented a comprehensive financial analysis to the Board. This included key financial activities impacting CHH financial statements from 2010 to 2015, and a sensitivity analysis. This data was included on a meeting handout. A big takeaway from this analysis was the need for CHH to grow our portfolio. One way to manage the problem of rising costs and a limited ability to raise rents is to include more market rate units in future developments and acquisitions. Another important takeaway is the importance of earning developer fees as soon as possible.

Finance Report

Finance and Asset Management Report: Drew Porter presented the Finance and Asset Management report to the Board. The FAM reviewed a portfolio unit turnover analysis, essentially to understand why residents leave CHH housing. Our turnover rates are much lower than for market rate housing. A motion to accept the monthly Finance and Asset Management report was made by Rob Schwartz, seconded by Bob Fikso, and passed unanimously.

Executive Committee and Board Sabbatical preparation: Chris Persons presented the sabbatical plan developed by executive-level staff to redistribute Chris’s responsibilities during his sabbatical, which begins August 1 and runs through October 31. The plan revolves around the understanding that Jill Fleming cannot do both her job and Chris’s job for three months, so the plan delegates some of Chris’s and Jill’s responsibilities to other individuals. Near the end of the three month period, the executive team will meet to assess the success of the sabbatical. Chris stated that this is a tremendous opportunity, and thanked the staff and Board for allowing him to take advantage of it. Resolution 2016-10: Following the discussion of the sabbatical plan, Cathy called for a vote on the resolution appointing Jill Fleming Acting CEO in Chris Persons’s absence during his sabbatical. A motion to approve Resolution 2016-10: Appointing Jill Fleming Acting CEO Effective August 1 was made by Bob Fikso, seconded by Dana Behar, and passed unanimously. Electing new Board Secretary: Selomé Teshome exited the room for this portion of the agenda. Chris explained that Selomé has the skillset and engagement to serve well as the Board Secretary. While she is fairly new, Board leadership feels that she would be a great asset to the Executive Committee. Chris noted

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that additionally, if we are serious about diversity on our Board and its leadership, we need to create pipelines to leadership for minorities. The Executive Committee recommends Selomé to the Board for the Secretary position. Bob Fikso asked whether the Board Secretary has significant duties outside of attending Executive Committee meetings. Chris responded that the Secretary also signs minutes and resolutions, and has some additional signing duties, but no other significant time commitments. A motion to elect Selomé Teshome as CHH Board Secretary was made by Drew Porter, seconded by Paul Breckenridge, and passed with one abstention (Selomé Teshome, who was not in the room during the vote). Filling Seat 14, discussion and vote: Now that Heyward Watson has left the Board to join CHH staff, we have an opening in a mayor-appointed seat. The Board is empowered to make a recommendation to the Mayor for filling this seat. Chris Persons explained that he has told Sheila Edwards Lange, new President of Seattle Central College, that she is under consideration for the role. Both Sheila and the Mayor would have to agree to it before this appointment could take place. Board survey: Chris shared in-depth results of the Board self-assessment survey that was administered prior to the June Board retreat.

Property Presentations

412, Byron Wetmore, Gale Place: As part of an initiative to get Board members better acquainted with residents and the CHH portfolio, Jill Fleming presented a report on 412, Byron Wetmore and Gale Place apartments. Resolution 2016-11: Chris explained that Joe Black, long-time site manager of Gale Place and Byron Wetmore, has always been a leader in this organization. He always has questions, and they are always pertinent and challenging. He has been an absolute fixture in his neighborhood; he has worked on gang- and drug-related issues in the community; and he is the type of person who embodies our organization’s values. Joe, about to turn 75, will retire at the end of the month. CHH staff leadership is asking the Board to approve a resolution renaming the Gale Place Apartments in his honor. Frank Alvarado pointed out that the resolution overview states that the FAM and Property Management committees were presented with the resolution, but this was not the case. Chris agreed to amend the overview to reflect that the resolution was only presented to the Executive Committee prior to its presentation to the full Board. A motion to approve Resolution 2016-11: Renaming the Gale Place Apartments the “Joe Black Apartments” was made by Selomé Teshome, seconded by Drew Porter, and passed unanimously.

Property Development White Center: Chris gave an update on White Center Public Health Space project. We are close to finalizing a Letter of Intent with the community partners. At the August meeting, Board members will receive some background information on this project. The purpose of sharing this information is not to give final approval of the project, but to demonstrate initial buy-in. Sharing this information early is also in line with the initiative to bring development projects to the attention of Board members early enough to make use of their expertise.

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Preview of B-North Resolution: Chris shared a preview of a resolution authorizing additional spending on the Capitol Hill TOD B-North project. This resolution will likely come to the Board for approval in August or September of this year. The meeting was adjourned by Cathy Hillenbrand at 7:42 pm.

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Tenant Communications Tracking

August 8, 2016

Building Issue Status Resolution

12th Ave Arts

Tenant believes that site manager is deliberately harassing him by sending repair crews to his apartment.

Open: Portfolio Manager is in the process of writing a response for review by the Director of Property Management.

Elizabeth James

Tenant claims that CHH has been unresponsive to requests for information. Closed

Property Management responded with requested information. CMS closed the file.

Larned

Tenant filed a $5,000 claim against CHH with small claims court for failure to enforce terms of lease agreement against noisy neighbors.

Open: Court date is 8/28/16.

Unity Village

Tenant claimed discriminatory acts against her based on national origin and disability.

Open: CHH filed a response with the King County Office of Civil Rights.

Cal Anderson

Tenant complained regarding the use of the common storage closet.

Open: Tenant did not show up to the scheduled meeting, and has not rescheduled.

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August 2016 PROPERTY MANAGEMENT BOARD REPORT AND MINUTES Property Management Committee Members: B.G. Nabors-Glass, Chasten Fulbright, Derrick Belgarde Staff Liaisons to the Board: Jill Fleming, Heyward Watson, Dianne Moreland (BOLD indicates those members in attendance) Date, time and location of meeting: August 2, 2016 12-1pm Belmont Conference Room Date, time and location of next meeting: September 8, 2016 1:30 – 2:30 pm Belmont Conference Room Completed Capital Projects:

No completed projects to report this month.

Current Capital Projects In Process/Pending

Mary Ruth Manor rehab is running smoothly. All the exterior demolition has been completed, the structural upgrades are almost complete, and the windows for the first building were delivered last week. Currently we are running several weeks ahead of schedule and under budget.

We are in the process of developing a scope of work to replace the roofs at Helen V, Ponderosa and Holden Vista.

We are in the process of reviewing the bids for the replacement of the windows, intercoms and entry doors at the Brewster.

We are in the process of assessing the boilers at the Elizabeth James House and the El Nor for replacement options in 2016.

Resident Services

In July Resident Services provided 38 Households with direct one-on-one services.

Distributed $1400.00 in rental assistance.

Held 10 community events including a trip to the Ballard Locks for residents of the El Nor.

Presented to the Transit Riders Union on the Transit Pass Pilot Program, and were featured on KEXP.

Resident Services Specialist Grace Brower has moved on to a position in Olympia, WA and will be missed. The goal is to fill her position as soon possible.

Third Party Management

CHH is still in discussion with SHA in response to their RFP for property management services for Bayview Tower. We are moving forward with transitioning the management to CHH with a target date of October 1, 2016.

Building Operations From the Finance report: Year to date June 30, 2016 Blended Operating Statement.

Vacancy loss for the portfolio was 3.1% for year to date 2016. Vacancy loss for 2015 and 2014 was 2.8% and 3.8% respectively. For budget purposes we assumed vacancy rates ranging from 3-5% depending on the building. Early in the year, smaller buildings impact vacancy loss more than later in the year.

There were 28 vacant units on June 30, 2016, two of which with no active applicants.

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Vacancies (building/average days vacant YTD): HUD buildings

412 – 86

Four vacancies in a 12 unit building. Also, we held one unit for the family from the Union James after the shooting who ended up declining the transfer. Elizabeth James House - 64

Two of the units were hard turns, including reasonable accommodation requests prior to move in. The third unit was held for a transfer from the Ponderosa, the fourth and fifth had a total of 15 denials. Cal Anderson - 80

Third party referral staffing change multiple requests. Three denials for three units. Hazel Plaza – 83

Two units, went through 29 applicants to find qualified/interested applicant. Helen V - 71

Three units, had to mail out 10 letters before a qualified applicant. One unit had a heavy turn. Holden Vista - 70

Four units, went through 36 applicants to find qualified/interested applicants. Mary Ruth Manor – 153

One vacant unit, had to mail out 20 letters before a qualified applicant. Ponderosa – 101

Two vacancies. Mailed out 86 letters for applicants. Silvian - 98

Four units, applicant slow in producing necessary documents. Mailed out 60 letters for applicants. Union James – 145

Six vacancies. One unit was a reasonable accommodation transfer, unit required handicap modifications prior to move-in. 5 denials over 3 units. Went through 25 applicants to find current. Non-HUD buildings

Bremer - 94

Six vacancies, we processed a total of 19 applications before approving the six move-ins. Byron Wetmore - 98

One unit, 30 days to turn due to unit condition, two denials prior to 3rd applicant being approved. Fremont Solstice – 92

One vacancy, hard turn of an eviction. YWCA unit with three denials prior to approval of 4th referral. Gale Place - 106

We have had 4 out of the 24 units vacate. One unit was a kitchen fire and had major repairs, we have had a total of 14 denials/withdrawals for these 4 units. Harrison – 116

One vacancy, third file was approved. Lincoln Court - 65

Five vacancies, five denials between 2 units. Melrose - 113

Two units, we had 3 denials prior to qualified applicant, next to construction, lowered rent. Pantages –99

Five vacancies. Four are third party referral, 1 withdrew and 3 denials. Unity Village- 78

Staff turnover and files left in disorder.

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Capitol Hill Housing

Operating Statement

For the period ending: 06/30/2016

Benchmarks

98% Excellent

95% Good

90% Poor

98% Excellent

95% Good

90% Poor

<30 days Excellent

45 days Good

60+ days Poor

1.15 excellent

1.05 good

<1.0 concern

1.15 excellent

1.05 good

<1.0 concern

1.15 excellent

1.05 good

<1.0 concern

Frequency YTD YTD YTD YTD YTD YTD Monthly YTD M M YTD 2016 A A A

Type HUD Buildings Units Actual Inc Budget Var %

Actual Exp

(before debt

service) Budget Var %

Op exp/unit -

YTD (Before

Res)

2016 YTD

Vac Loss

Vac

07/2015-

06/2016

2015 vac

loss

Cash Flow after

reserves and

debt service

Occupancy

Rate

Occupancy Rate

12 mth trend

Repl Res

Y or N

Op Res

Y or N

Average Unit

Turnaround Time

DCR 2015

Actual

DCR 2014

Actual

DCR 2013

Actual

Reserve Balance -

06/31/2016

Operating Reserve

Balance 06/31/2016

Cash budgeted into

CHH budgetComments

Blended Berneva 12 57,152 51,727 10% 50,151 43,927 -14% 4,179 1.7% 1.3% 0.6% 450 92% 99% Y 48 2.28 1.61 2.18 $1,512 $6,184

Blended Boylston Howell 30 157,233 150,822 4% 106,774 112,838 5% 3,559 2.1% 1.5% 1.6% (12,470) 97% 98% Y 47 0.93 0.98 1.09 $65,571 $15,897 One time annual debt service payment

Blended Bremer 49 206,259 206,323 0% 137,852 131,867 -5% 2,813 4.4% 3.6% 2.4% 14,140 99% 96% Y 74 1.47 1.60 1.25 $122,617 $53,469 $15,000

Blended Brewster 35 150,592 141,767 6% 92,921 99,599 7% 2,655 2.2% 1.9% 2.4% 45,072 92% 98% Y Y 47 3.09 2.30 3.20 $324,608 $31,315 $15,000

Blended Broadway 5 30,342 29,334 3% 16,654 21,503 23% 3,331 0.0% 2.5% 2.5% 6,638 100% 97% Y Y 30 2.65 1.82 1.76 $21,178 $8,578

Blended Burke Gilman Gardens 15 90,659 88,878 2% 62,032 67,827 9% 4,135 3.1% 3.3% 5.0% 1,860 100% 97% Y Y 57 1.79 1.42 0.88 $91,995 $33,533 One time annual debt service payment, reserves in transit, $10,000

Blended Byron Wetmore 12 63,349 66,380 -5% 56,427 59,196 5% 4,702 3.8% 3.7% 6.1% (1,678) 100% 97% Y Y 98 1.65 4.64 1.35 $33,784 $2,927 One time annual debt service payment

Blended Casa di Cinque 5 37,163 36,163 3% 17,683 28,672 38% 3,537 0.0% 4.6% 4.9% 16,368 100% 95% Y *** *** *** $21,896 $11,882 $5,000

Blended Centennial 30 163,832 161,544 1% 70,424 87,002 19% 2,347 3.2% 2.7% 1.4% 32,733 100% 98% Y Y 42 1.39 1.22 1.12 $46,161 $22,960

Blended Devonshire 62 279,358 276,967 1% 191,095 196,225 3% 3,082 2.8% 3.2% 2.4% 28,432 98% 97% Y 59 4.17 7.57 4.56 $172,287 $31,903 $35,000

Blended HUD Eighteenth Avenue 9 59,655 58,539 2% 33,497 27,879 -20% 3,722 0.0% 0.0% 0.2% 3,937 100% 100% Y 1.29 1.15 1.14 $108,933 $866 $866

Blended HUD El Nor 55 286,863 281,691 2% 209,560 221,673 5% 3,810 0.7% 0.4% 0.2% 14,126 97% 100% Y Y 48 1.84 1.67 1.69 $540,370 $182,880

Blended HUD Elizabeth James 60 297,477 298,952 0% 193,703 203,395 5% 3,228 2.6% 2.6% 1.7% 27,684 98% 97% Y Y 64 1.37 0.88 1.51 $128,170 $0

Blended Fleming 36 160,025 157,157 2% 95,167 103,763 8% 2,644 2.0% 1.6% 3.8% 17,096 100% 98% Y Y 43 1.36 0.79 1.06 $43,158 $10,932

Blended Four Ten 6 26,577 26,630 0% 21,129 18,296 -15% 3,522 4.8% 3.9% 1.5% 448 100% 96% Y 51 ** ** 2.49 $82,720 $38,286

Blended HUD Four Twelve 12 84,264 89,046 -5% 68,911 81,823 16% 5,743 6.9% 8.2% 9.4% 8,153 92% 91% Y Y 87 ** ** 2.30 $106,502 $0

Blended Fredonia 12 140,326 146,226 -4% 77,899 85,417 9% 6,492 2.4% 4.6% 4.7% 24,869 100% 96% Y Y 39 1.68 1.37 1.54 $27,168 $90,699 $30,000

Blended Gale Place 24 143,331 145,937 -2% 101,741 120,085 15% 4,239 7.8% 5.2% 3.0% 21,430 100% 95% Y 107 1.34 2.14 1.97 $19,042 $53,548

Blended Gilman Court 25 148,482 144,559 3% 108,294 122,881 12% 4,332 4.8% 3.1% 1.2% 19,425 98% 97% Y Y 56 1.47 1.78 1.75 $66,886 $5,681

Blended Harrison at 15th 19 181,507 170,548 6% 98,465 97,599 -1% 5,182 2.4% 2.0% 0.8% 18,509 100% 98% 116 1.03 1.03 1.10 $52,893 $78,291

Blended HUD Hazel Plaza 16 124,609 132,021 -6% 64,049 69,001 7% 4,003 7.2% 3.9% 2.3% (4,533) 90% 97% Y 83 1.21 ** ** $136,011 $0 Vacancy

Blended HUD Holden Vista 16 101,913 113,497 -10% 101,851 77,328 -32% 6,366 14.4% 12.4% 15.1% (19,412) 87% 87% Y 71 - 1.71 0.51 $57,894 $0 Vacancy and repair and maintenance

Blended John Carney 27 107,093 107,465 0% 79,751 80,107 0% 2,954 3.3% 2.2% 2.2% 6,592 93% 98% Y Y 50 1.81 1.31 1.35 $42,532 $44,434 $5,000

Blended Larned 33 121,286 130,725 -7% 125,689 124,537 -1% 3,809 0.0% 0.5% 1.9% (9,363) 100% 99% Y Y ** ** ** $41,129 $19,950 Commercial Space Leasing Consultant

Blended Lincoln Court 29 132,578 135,518 -2% 82,089 77,636 -6% 2,831 4.4% 3.8% 2.3% (5,922) 97% 96% Y Y 65 0.99 0.69 1.09 $19,375 $3,875

Blended HUD Mary Ruth Manor 20 123,371 148,435 -17% 86,636 91,216 5% 4,332 2.1% 2.2% 2.2% (7,838) 100% 98% Y 153 1.63 1.22 2.11 $164,971 $0

Blended Maxwell 4 21,545 20,880 3% 19,882 17,832 -11% 4,970 0.0% 0.0% 0.0% (1,379) 100% 100% Y 4.30 3.51 2.51 $16,223 $20,056

Blended Melrose 30 120,246 121,116 -1% 86,035 93,312 8% 2,868 2.5% 4.5% 7.7% 15,067 98% 96% Y Y 113 1.43 1.95 1.73 $48,006 $45,384

Blended Miller Park 12 66,427 69,317 -4% 45,011 50,196 10% 3,751 4.6% 3.6% 3.0% 4,993 100% 97% Y Y 44 1.33 0.99 1.16 $183,338 $31,037

Blended Park Hill 30 205,036 197,380 4% 116,445 129,004 10% 3,882 1.8% 2.1% 3.3% 56,681 97% 98% Y 62 2.37 2.38 1.76 $74,173 $90,914 $25,000

Blended HUD Ponderosa 23 99,464 101,033 -2% 98,884 91,119 -9% 4,299 5.3% 2.7% 0.8% (6,663) 91% 98% Y 101 *** *** *** $271,856 $0

Blended Seneca 32 165,605 161,678 2% 114,754 121,924 6% 3,586 0.0% 0.0% 0.0% 20,123 100% 100% Y Y 2.57 2.67 2.82 $231,541 $5,614 Reserves in transit $23,500

Blended HUD Union James 24 121,314 111,566 0% 77,330 73,086 0% 3,222 10.0% 10.0% 9.8% 15,854 96% 90% 146 N/A $36,632 $0

Blended Villa 62 352,179 345,586 2% 219,467 226,005 3% 3,540 0.3% 1.3% 2.9% 19,627 98% 99% 1.31 1.46 1.24 $101,308 $13,435

4,627,110 4,625,401 3,128,253 3,253,767 371,049

Discrete Broadway Crossing 44 221,378 210,498 5% 152,121 164,778 8% 3,457 0.7% 0.8% 0.8% 32,569 100% 99% 2.37 1.27 1.37 $184,848 $107,871

Discrete Fremont Solstice 18 99,998 102,698 -3% 72,247 75,282 4% 4,014 2.0% 0.8% 0.3% (2,982) 96% 99% Y 92 0.98 0.96 1.32 $55,239 $80,781

Discrete HUD Haines AAA 30 141,306 148,273 -5% 145,030 111,533 -30% 4,834 6.5% 3.5% 1.7% (44,674) 100% 98% Y Y 60 3.57 * * * $96,073 $523,885 Plumbing and insurance reimbursements pending

Discrete HUD Helen V 38 200,781 207,257 -3% 134,561 126,649 -6% 3,541 3.3% 2.5% 1.2% (1,338) 100% 98% Y Y 71 1.14 1.03 1.16 $232,464 $33,383 Reserves in transit, $53,000

Discrete Holiday 30 167,801 165,605 1% 81,446 98,036 17% 2,715 1.8% 1.1% 2.2% 21,748 93% 99% Y Y 38 1.39 1.07 1.00 $47,363 $128,464

Discrete Jefferson Housing 40 249,190 250,166 0% 134,488 144,318 7% 3,362 1.4% 1.6% 2.2% 13,213 100% 99% Y 51 1.20 1.14 1.02 $59,232 $211,569

Discrete Oleta 34 156,315 152,651 2% 86,589 99,589 13% 2,547 1.7% 2.4% 2.8% 18,136 97% 97% Y Y 58 1.30 0.84 1.02 $152,287 $0

Discrete Pantages 49 244,628 245,392 0% 223,570 182,692 -22% 4,563 4.1% 2.6% 1.4% (32,160) 96% 97% Y Y 98 1.82 1.52 1.47 $388,552 $173,874

Blended HUD Silvian 32 181,720 182,439 0% 134,712 124,437 -8% 4,210 3.8% 4.2% 3.6% (12,100) 97% 96% Y 97 1.56 1.10 1.45 $322,082 $161,461 Drawing down on cash in checking

Discrete Squire Park Plaza 60 572,904 588,320 -3% 261,811 229,853 14% 4,364 4.5% 5.9% 8.2% 128,998 99% 95% 93 * $29,430 $0

Discrete Twelfth Avenue Arts 88 474,772 469,442 1% 233,388 240,608 3% 2,652 0.9% 1.6% 1.6% 43,009 99% 99% Y 23 1.88 **** **** $132,904 $435,366

Discrete Unity Village 30 141,416 149,670 -6% 126,662 128,172 1% 4,222 3.9% 2.9% 2.0% 8,196 93% 97% Y 78% ** ** ** $65,556 $110,471

1364 2,852,208 2,872,410 1,786,624 1,725,946 172,615

* not calculated due to CHH minority position

** no debt service

*** no debt

**** interim financing in place

M:\Admin\Board\PACKETS\2016 Packets\08 16\Originals\Property Management Dashboard August 2016.xlsx

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Page 68

August 2016 FUNDRAISING AND COMMUNICATIONS MEMORANDUM

To: Capitol Hill Housing Board of Directors CC: Jill Fleming From: Michael Seiwerath

Grants and Donations

The Seattle Foundation Communities of Opportunity awarded $75,000 to a coalition that includes CHH as well as Centerstone, Seattle Chinatown International District Preservation and Development Authority, and InterIm. CHH is allocated $15,000 for our program work.

We received a commitment of funding from the Sustainable Communities Funders, a new coalition of funders that includes the Bullitt Foundation, the Loom Foundation a Social Venture Partners. The Sustainable Communities Funders awarded $50,000 to the partnership of CHH, Centerstone, and Seattle Chinatown International District Preservation and Development Authority. As the lead partner, CHH will use $10,000 for our program work.

With these two new commitments, we have exceeded our goal for foundation funding for this year.

We have received record commitments of $36,500 in sponsorship support for Omnivorous 2016. KeyBank has returned as a signature “King Salmon” supporter at the $10,000 level. And we have received significant sponsorship support from Heritage Bank, HomeStreet Bank and others.

Events

Omnivorous Omnivorous 2016 is quickly taking shape. The event will take place on Thursday September

29 at the Summit Event Center on Capitol Hill. Restaurants committed to date include BaBar, Bakery

Nouveau, Bar Ferd’nand, Caffe Vita, Chavez, Gnocchi Bar, Hello Robin, High 5 Pie, Lionhead, Mamnoon,

Marjorie, Oola Distillery, Plum Bistro, Quinn’s, Rione XIII, Rumba, Single Shot, Tallulah’s, Tango, Terra

Plata, and The Tin Table.

Tickets for Omnivorous are available at BIT.LY/OMNIVOROUS2016

We’ve received commitments from 10 “Top Bananas” and are looking for 10 more who can commit to

each bringing 8 guests to Omnivorous. This bunch of strong supporters serve as our virtual table

captains, spreading the word about this fantastic event and reaching out to a community of guests and

donors. Currently committed Top Bananas include Frank Alvarado, Shari Brown, Deirdre Doyle, Grace

Kim, Laura Miller, Margaret Pak Enslow, Julie Little, Drew Porter, Randy Robinson, Michael Seiwerath,

Ellen Taussig and Josephine Wong.

If you are interested in being a Top Banana please be in touch with Joshua Okrent at

[email protected].

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mailto:[email protected]

Communications Our development at the Capitol Hill Light Rail Station at site B-North was featured prominently in the news this month:

CHS Blog covers the signing of an initial agreement between Sound Transit and Gerding Edlen [LINK]

Capitol Hill Times publishes an interview with Chris with his thoughts on the neighborhood [LINK]

CHS Blog mentions B-North as an example of creative ways to bring affordable housing to the Hill [LINK]

Capitol Hill Times Editorial calls B-North “the shining light” of the new construction at the light rail station. [LINK]

The Urbanist mentions CHH as an example of a PDA in describing the I-123 campaign [LINK]

Capitol Hill Times covers the safe consumption SAFE SHAPE Exhibit at 12th Ave Arts [LINK]

Capitol Hill Times mentions tickets for Omnivorous are on sale [LINK]

CHS Blog on Sound Transit board decision and next steps for B-North [LINK]

Seattle Daily Journal of Commerce on Sound Transit board decision and next steps for B-North [LINK]

The Urbanist on Sound Transit board decision and next steps for B-North [LINK]

Capitol Hill Times covers CHH presenting ULI Award to City of Seattle [LINK]

CHS Blog covers CHH presenting ULI Award to City of Seattle [LINK]

Puget Sound Business Journal on Sound Transit board decision and next steps for B-North [LINK]

Curbed Seattle on Sound Transit board decision and next steps for B-North [LINK]

Page 70

http://www.capitolhillseattle.com/2016/07/developers-finally-reach-key-milestone-in-capitol-hill-station-retail-housing-project/

http://www.capitolhilltimes.com/2016/07/capitol-hill-housing-ceo-weighs-in-on-seattle/

http://www.capitolhillseattle.com/2016/07/churches-and-parking-garages-capitol-hills-reps-in-olympia-get-creative-in-drive-to-create-affordable-housing-in-seattle/

http://www.capitolhilltimes.com/2016/07/editorial-can-central-co-op-make-case-for-light-rail-location/

https://thenorthwesturbanist.com/2016/07/19/vote-no-on-seattle-initiative-123/

http://www.capitolhilltimes.com/2016/07/vocal-wa-shapes-discussion-around-supervised-drug-consumption-spaces/

http://www.capitolhilltimes.com/2016/07/tickets-on-sale-for-capitol-hill-housings-omnivorous-fundraiser/

http://www.capitolhillseattle.com/2016/07/2-65m-deal-for-affordable-housing-site-puts-capitol-hill-station-development-in-motion/

http://www.djc.com/news/re/12091595.html

https://www.theurbanist.org/2016/07/29/sound-transit-news-dump-capitol-hill-station-land-sale-more-double-deckers-and-new-lrv-manufacturer-selected/

http://www.capitolhilltimes.com/2016/07/capitol-hill-housing-shares-urban-land-institute-award-with-city/

http://www.capitolhillseattle.com/2016/07/capitol-hill-housing-shares-development-award-with-city/

http://www.bizjournals.com/seattle/news/2016/07/29/2-6m-sound-transit-deal-keeps-small-part-of-big.html

http://seattle.curbed.com/2016/7/29/12326240/sound-transit-capitol-hill-affordable-housing-station

2016 Capitol Hill Housing budget and actuals

Updated August 2, 2016

Unrestricted Budget

Income Source 2016 Goal 2016 Actual % to Goal

Government $ 66,000 $ 10,000 15.2%

Foundation $ 154,917 $ 160,239 103.4%

Corporate $ 177,000 $ 151,458 85.6%

Individual $ 150,000 $ 93,406 62.3%

Events & Sponsorships $ 156,500 $ 137,500 87.9%

TOTAL $ 704,417 $ 551,273 78.4%

Restricted Budget


Government $ 15,000 $ - 0.0%

Foundation $ - $ - 0.0%

Corporate $ - $ - 0.0%

Individual $ 25,000 $ 25,000 100.0%

Events & Sponsorships $ - $ - 0.0%

TOTAL $ 40,000 $ 25,000 62.5%

Combined Budgets

(Restricted & Unrestricted)


Government $ 81,000 $ 10,000 12.3%

Foundation $ 154,917 $ 160,239 103.4%

Corporate $ 177,000 $ 151,458 85.6%

Individual $ 175,000 $ 118,406 67.7%

Events & Sponsorships $ 156,500 $ 137,500 87.9%

TOTAL $ 744,417 $ 577,602 77.6%

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AUGUST 2016 PROPERTY DEVELOPMENT BOARD REPORT

Property Development Committee Members: Paul Breckenridge, Alice Quaintance, Liz Dunn, Dana Behar, Rachel Ben-Shmuel, Bob Fikso, Andrew BrandStaff Liaisons to the Board: Chris Persons, Jill Fleming, Walter Zisette, Jaebadiah Gardner, Jess Blanch (The names of members present at committee meeting of August 2 appear in boldface.) Meeting time & location: August 2nd 2016, 5:30-6:30pm, Belmont Conference Room Next meeting time & location: September 6th 2016, 5:30-6:30pm, Belmont Conference Room Development Phase

Liberty Bank Building:

MOU with Community Partners signed;

MUP intake took place on July 20;

DD set completed July 20;

A work plan to identify specific roles and responsibilities among community partners (including CHH) is now being draft for review in late August.

Construction estimate (residential & commercial completed July 12.

David V. Skyke (rezone consultant) to submitted rezone narrative for review by July 14th

Art curator RFP published July 25 – proposals due August 25.

Regina Glenn engaged as WMBE consultant to assist with WMBE and apprentice procurement through construction.

Current Schedule: o Design Review Recommendation Second Meeting – Sept. 22 o DRB published decision – 11/09/2016 o MUP Decision – Nov. 2016 o Lender/Investor Selection – Nov. 2016 o Apply for LIHTC – Nov. 2016 o Contract Rezone Decision – Feb. 2017 o Building Permit Issuance – March 2017. o Close on Financing – March 2017 o Construction Start March/April 2017. o Complete Construction – June 2018

Predevelopment Phase

Broadway TOD B-North Site:

On July 28 the Sound Transit Board passed a Motion to execute a Disposition and Development Agreement (DDA) and a Purchase and Sale Agreement with GED for Site B-North. These documents anticipate that GED will assign it’s interests and responsibilities to CHH, and it is our intent to assume these within the next six weeks.

The ST Board will pass a similar motion for the other three TOD sites on August 25.

Staff negotiated a Completion Guarantee with ST that will be jointly signed by GED and CHH at the property closing.

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Staff is working with legal counsel to finalize a Co-Development Agreement between GED and CHH, which outlines the responsibilities, fees, decision-making, and other issues. Our intent is to sign this agreement in the next two weeks.

Staff is negotiating a contract with Schemata Workshop for full architectural services.

Staff is presenting to the PDC and the Board a Resolution which: o Reaffirms prior CHH Board Resolutions for this project, authorizing CHH to:

Negotiate and enter into a Development Agreement with GED for the co-development of B-North, with CHH as the lead.

Prepare and submit applications for public and private financing. Enter into a PSA for acquisition of the site.

o Authorizes CHH to accept the assignment of the Disposition and Development Agreement (DDA) between GED and ST.

o Authorizes CHH to deliver a Due Diligence Notice to ST within 90 days following execution of the DDA, approving or disapproving the conditions of the site (title, soils, environmental, etc.).

o Authorizes CHH to pay for predevelopment costs of up to $1.4m per a Predevelopment Budget Estimate.

o Authorizes creation of a CHH-controlled LIHTC ownership entity (LLC or LLLP)

The current project schedule (as reflected in the signed DDA): o Start design and permitting: August 2016 o Apply for City, State and County funding: September 2016 o City, State and County funding awards: December 2016 o MUP issued October 2017 o Building permit issued May 2018 o Close financing: May 2018 o Start construction: May 2018 o Finish construction: September 2019

White Center Public Health Property

The King County Public Health Center is a potential project that involves the development of approximately 4.5 acres of land located in White Center. It will be a mixed use project working in partnership with the White Center Food Bank, White Center CDA, King County Public Health, and Southwest Youth and Family Services.

LOI between CHH & White Center community partners and King County now in signature process.

Environmental Works engaged to conduct community development program charrette on August 22.

Harvey Apartments

Approvals have been obtained for CHH to assume outstanding debt on the Harvey – from the City & from the lender, WCRA. Now awaiting similar approval from the Dept. of Commerce.

Phase II environmental testing now underway – focus is on decommissioning 2,000 gallon underground heating oil tank.

Acquisition closing on the property anticipated in August or September.

According to the terms of the agreement with the City, CHH has until late 2018 to determine the feasibility of redeveloping the Harvey site.

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Concept/Pipeline Projects

Helen V Apts.

The proposed project is to create a 98-unit senior housing community at Helen V, in two parts: 1. Modernize and significantly rehabilitate the current 38-units of HUD subsidized housing; 2. Create at least 60 new units in the parking area;

The combined unit mix for both parts would include20 1-bdrm units & 78 studio units

Underlying rents would be set at <30% AMI (48 units) and <50% AMI (50 units).

Street level commercial uses will be a part of the project.

Current Project Activities

A preliminary project concept is being presented to City OH staff on Wednesday, the 3rd.

Staff is evaluating options for submitting an application to OH and King County in September. A Helen V application would not compete with a B-North application (also being submitted this Fall). Should the Helen V not be awarded in funding through the 2016 NOFA, CHH would propose prioritizing the project for funding in 2017.

Preliminary deal structure to be distributed at committee meeting. New Hires for PD

Director Position Update

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AUGUST 2016 COMMUNITY PROGRAMS AND EXTERNAL RELATIONS BOARD REPORT AND MINUTES Community Programs and External Relations Committee Members: Cathy Hillenbrand, Eric Snow, Selome Teshome (BOLD indicates those members in attendance)

Staff Liaisons to the Board: Michael Seiwerath, Joel Sisolak Additional Staff: Alex Brennan, McCaela Daffern Recent meeting: August 2th 2016, 1:00- 2:00pm, Belmont Conference Room Next meeting: September 6th 2016, 1:00- 2:00pm, Belmont Conference Room Community Development Partners

Section 4 Funding: CHH staff and LISC national are finalizing the list of 2016 HUD Section 4 grants in the market.

Staff is seeking a consultant to manage the grant program short term, and revising the job description for the Program Manager position.

EcoDistrict Current Projects:

Pedestrian Streets Pilot: The City of Seattle continues to solicit feedback on the next phase of this pilot. CHH staff began outreach to Pike/Pine businesses in July. In August, staff will perform a nighttime safety and access sidewalk audit of the area with business owners and City staff.

Land Use Review Committee (LURC): This year, we began providing a consistent location for

monthly PPUNC meetings as well as staff support to PPUNC’s chair to build the organization’s

capacity to review more development projects in an expanded geographic footprint once the

LURC is formed. We continue to work with PPUNC to identify opportunities for integration and

continued collaboration.

Affordable Solar: We are anticipating an RFP from Seattle City Light to fund renewable projects. We are considering an application to fund a project on the El Nor. NW SEED has received funding from The Sustainable Communities Fund to drive advocacy on affordable solar in Olympia.

District Shared Parking: No new update.

Parking Benefit District (PBD): Staff submitted a memo to the Sustainability and Transportation (S+T) Committee expressing a continued desire to pilot a PBD in Capitol Hill. We have met with CMs O’Brien, Burgess, Bagshaw and Johnson as follow up to an SDOT memo released in July. The S+T Committee is expected to take up the subject at an Aug or Sept meeting.

Dumpster Removal: No new update.

Capitol Hill Renter Initiative (CHRI): Staff has been working with an initial cohort of 50+ Capitol Hill renters, including 5 CHH renters, to participate in this program, developing leadership skills and building relationships. In the last month, 32 of our renters met with Kathy Nyland, Director of the Department of Neighborhoods, our mailing list swelled to 132, and our Facebook group grew to 92 people. We partnered with the Punk Rock Flea Market, the Vera Project, and the Capitol Hill Block Party on recruitment. A small group toured a microhousing development in the neighborhood. In July, we began planning for the Renter Summit on September 24th in earnest. In August, we will be tabling at the Capitol Hill Garage Sale to recruit new participants. We are

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also encouraging renters to testify at an upcoming City Council hearing on Source of Income Discrimination legislation and will continue Renter Summit planning efforts.

RENEW: No new update.

HomeFree: CHH has signed an MOU to be one of the 5 national pilot sites. We are incorporating HomeFree into work on Liberty Bank Building and B-North.

EcoDistrict Index: No new update.

Affordable Transit Pass Program: No new update.

Recycling Champions Program: This program will recruit residents in 10 buildings for a 1 year commitment to support their neighbors in reducing waste. Stipends will be paid with funding from the Margola Fund. Recology Cleanscapes will partner on this project and do pre- and post-project waste audits in the 10 buildings plus 3 “control buildings.” Our summer work study intern is focused on developing the curriculum and job description for this program.

EcoDistrict working group reports:

Equity and Engagement Working Group: This working group is assisting staff with programming for the Renter Summit and recruiting greater diversity to the EcoDistrict Steering Committee.

Land Use and Development Working Group: This working group is exploring the feasibility of revising the Capitol Hill Neighborhood Design Guidelines to better reflect EcoDistrict values and is assisting with LURC development and implementation.

Capitol Hill Arts District:

The V2 space hosted a July art walk, which attracted more than 1,000 guests, and included CHH staff representing

Racial Equity:

Board and staff discussed the recent White Fragility workshop and next steps for the committee furthering this work

Committee Membership

Board and staff discussed possible new members for the Community Programs and External Relations committee. It was agreed that any new committee member should help drive CHH’s racial equity work.

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AUGUST 2016 EXECUTIVE COMMITTEE BOARD REPORT AND MINUTES Executive Committee Members: Cathy Hillenbrand (Chair), Rob Schwartz (Vice Chair), Drew Porter (Treasurer), Selomé Teshome (Secretary), Alice Quaintance (Immediate Past Chair), Staff Liaisons to the Board: Chris Persons, Jill Fleming, Kiley Dhatt (taking minutes) Guest: Jeremy Wilkening, candidate for Director of Real Estate Development position (BOLD indicates those members in attendance) Date, time and location of meeting: July 25, 2016 5-6pm Belmont Conference Room Date, time and location of next meeting: August 29, 2016 5-6pm Belmont Conference Room Minutes: Meeting began at 5:02 pm. 1. Lead Items (45 minutes)

a. Board Survey follow up on to do list: Chris reviewed a draft memorandum detailing how CHH leadership will follow up on the Board survey results. Cathy noted that Jill should probably be included in the memo so that progress is made while Chris is on sabbatical; Chris agreed. Chris explained that results from the information, demographics and expertise survey are still trickling in.

Chris paused the agenda to introduce Jeremy Wilkening, an out-of-state candidate for the Director of Real Estate Development position. Committee members introduced themselves to Jeremy and Jeremy shared some background on himself.

b. ARCI: Jill shared a draft of the Board ARCI matrix (Approver, Recommends, Consulted, Informed), which is a mechanism for tracking the level of Board involvement in various items. Board members suggested edits to fix a couple of incomplete or missing items on the matrix. Rob suggested adding colors to the matrix to make it easier to read.

c. CHH Resolution for working outside of Capitol Hill: Chris explained that soon the Board will be presented with a resolution that would approve our work outside of Capitol Hill. Though we are already doing a good amount of work outside of Capitol Hill, which the Board has approved piecemeal, this proposed resolution would state the authority to work outside of the neighborhood more explicitly and broadly. The working language for the resolution says that the Board approves the work outside of Capitol Hill that is consistent with the strategic plan of the organization. Chris shared language from Seattle Municipal Code and the CHH Charter that confirms the Board’s authority to undertake projects outside of Capitol Hill. Chris noted that in order to work outside the City of Seattle, in addition to Board concurrence, we also need the other city’s consent. Chris clarified that he doesn’t want to change the Board Charter. Rob stated that this resolution needs some checks – such as including in a “whereas” clause that CHH staff always keeps the Board apprised of its activities, both inside and outside of the CH community. The rest of the Executive Committee agreed.

d. RED staffing update: We have two strong candidates that have interviewed for the Director of Real Estate Development Position.

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e. Capital Campaign: Chris shared a draft of messaging for the 2016/17 capital campaign. The goal for the campaign is $8 million.

2. External Relations, Community Programs, Board Issues (15 minutes):

a. Board Annual Agenda: Jill noted that we do not have focused topics for the next several Board meetings. Jill will approach staff to see if there is a relevant presentation, and will keep the Executive Committee apprised if a presentation is added to the August Board meeting.

b. August Board Meeting: Chris reviewed the draft agenda for the August Board Meeting.

c. Filling Board Seat 14: Alice has spoken to Sheila Edwards Lange, who has expressed interest in joining our Board. However, Speaker Frank Chopp mentioned to Chris that since there is interest in a partnership between CHH and Seattle Central College on development, it may appear to be a conflict of interest. Committee members discussed this issue, and ultimately decided that the next step is a frank conversation with Sheila about the board seat in light of potential CHH/SCC partnerships.

3. Development and Acquisitions (30 minutes):

a. Harvey, LBB, White Center: We have a signed MOU with our Liberty Bank Building partners. Regarding the purchase of the Harvey, we are back under contract. We have City and lender approvals, and are still waiting on State approval and phase II environmental feasibility. We are still working on an LOI with our community partners on the White Center project. More information on this project will be shared at the August Board meeting.

b. B-North Predevelopment Resolution: Chris shared some draft language that will eventually make its way into a new spending resolution for B-North. Rob noted that it has been a long time since he saw the financing details on this project. Chris suggested having Greg Elkerton give the Board a quick, high-level refresher on funding sources for the project at the August meeting. The Executive Committee agreed.

Meeting adjourned at 6:19 pm.

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Documents

CHH Board Meeting August 2016