Drafter
Clerk 09/02/2004
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A MOTION pertaining to funding for the redevelopment of Park Lake Homes, a King County Housing Authority facility located in the urban unincorporated community of White Center.
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WHEREAS, the King County Housing Authority ("KCHA") is an important regional organization as it provides a broad range of federally and locally financed housing programs that serve a variety of housing needs in King County, and
WHEREAS, the Park Lake Homes Community was originally developed in the 1940s and during its useful life, served as affordable housing for King County residents at low to moderate income levels, and
WHEREAS, the King County Housing Authority has begun a major redevelopment and revitalization project of the existing Park Lake Homes public housing community to be known as "Greenbridge," and
WHEREAS, the Greenbridge development represents a complete redevelopment of the Park Lake Homes facility including new buildings, replacement of existing infrastructure including streets, water lines, sanitary sewers, storm drainage and other utilities, and
WHEREAS, upon completion, Greenbridge will provide for nine hundred to one thousand one hundred residential housing units in a mix of housing types that will serve existing residents as well as other area very low and low income households, and
WHEREAS, in addition to housing, Greenbridge will include community-oriented uses, which will likely include a branch library, community center, youth and family facilities, Head Start and child care facility, sheriff's office, food bank and neighborhood level retail uses, and
WHEREAS, Greenbridge was planned under King County's demonstration ordinance, Ordinance 14662, and serves as a pilot project to showcase innovative approaches to land development and incorporation low-impact design and affordable housing, and
WHEREAS, the KCHA was successful in securing a thirty-five million dollar federal Housing and Urban Development ("HUD") Hope VI grant to off-set the one hundred ninety-eight million dollar anticipated project cost, and
WHEREAS, in 2001 the county committed ten million dollars in county capital funds to demonstrate to HUD local commitment in the KCHA's Hope VI grant and redevelopment application: the local commitment proved to be instrumental in KCHA receiving the Hope VI grant, and
WHEREAS, in 2005 the county will provide eight million dollars in funds for capital infrastructure development and provide another two million dollars in housing funds at such time as residential construction begins, and
WHEREAS, the various county departments including, but not limited to, roads, water and land resources and parks and open space, have budgeted capital funds in the current year as well as over the next several years in their respective capital improvement programs in anticipation of making a funding contribution to the Greenbridge development, and
WHEREAS, the Joint Recommendation Committee of the King County Consortium recognizes the significance of the Greenbridge project and has therefore recommended that it receive priority funding, and
WHEREAS, the KCHA plans to begin infrastructure development beginning in 2005 and therefore has a strong financial need to receive all county capital funds as soon as possible, and
WHEREAS, HUD provides eligible Community Development Block Grant ("CDBG") communities the opportunity to borrow and loan federal funds for community development projects, and
WHEREAS, the county is amenable to providing KCHA with a majority of its capital contribution in 2005 and therefore will seek to finance its commitment by securing a HUD Section 108 loan and a Float loan, and
WHEREAS, the county will repay borrowed funds through its various departmental capital improvement funds;
NOW THEREFORE, BE IT MOVED by the King County Council:
A. The metropolitan King County council directs the county executive to initiate immediately upon passage of this motion, the loan application process for those loan listed below and to negotiate with HUD the terms and conditions of those loans. The county executive shall endeavor to transmit to council for approval the loan documents at the earliest possible date.
1. For the Section 108 loan, as a participating government in the CDBG program, the county shall exercise its option to borrow HUD funds to finance Greenbridge capital infrastructure improvements. The loan, secured by the county's annual CDBG allocation and, if necessary other forms of collateral, shall be for a term not to exceed ten years. The Section 108 funds loaned to the KCHA shall be forgiven provided that KCHA spends the funds in a manner consistent with subsection B.1. and 2. of this motion.
2. If any participating county department or departments prefer to borrow funds over a short period of time, which is two and a half years or less, the county, utilizing its allocated, but unspent CDBG funds, shall make available float loan funds to pay for the cost of Greenbridge capital infrastructure projects. As with the Section 108 loan, the participating department or departments shall repay the loan through annual payments from their CIP. The float loan funds loaned to the KCHA shall be forgiven provided that KCHA spends the funds in a manner consistent with subsection B.1. and 2. of this motion.
B. The council requests that the county executive work with the KCHA to negotiate the terms and conditions of loans in accordance with the following:
1. The KCHA shall only expend funds provided by the county to defray the cost of capital infrastructure or other allowable expenses associated with the Greenbridge project consistent with HUD loan terms and conditions; and
2. Statutory county funding source restrictions associated with each of the participating departments.
3. The funds may not be used for offsite improvements or other capital projects that do not directly fund eligible Greenbridge capital expenditures.
C. The executive shall prepare and transmit with each loan document forwarded for council approval, capital budget detail that clearly depicts the type of loan, the amount of the loan and which county departments shall be responsible for contributing toward its annual debt payment and in what amounts. The council directs the office of management and budget to include the appropriate capital budget information in the 2005 county budget.
D. Except for the two million dollars in DCHS approved grants of housing funds, the 108 loan and float loan funds contributed to KCHA represent the entirety of the county's matching commitment to Greenbridge as represented to HUD, as long as the eight million dollars is all for capital investments, and does not include payment of
interest on the float loan or the 108 loan and does not include fees and costs paid for the advance of funds to the project.