we will be meeting at the a&a room at seattle …...that deal closed late last year. in the ......

November 2015 Capitol Hill Housing Board Meeting Keys and Addenda

Reminder: Dinner begins at 5:45. The meeting starts promptly at 6 PM. WE WILL BE MEETING AT THE A&A ROOM AT SEATTLE UNIVERSITY IN DECEMBER Consent Agenda, Disclosures and recusals: The consent agenda including October minutes will be moved for adoption. Board members will review items on the agenda and make any necessary disclosures and recusals. External Relations and Community Programs Update Michael Seiwerath will update the board on foundation and community activities. Presentation and Discussion: 2016 Budget Projections. Without any significant developer fee identified for 2016 our current draft budget shows a significant deficit for next year. This follows what should turn out to be a robust 2015 with strong rent, development and philanthropic income. A negative 2016 will precede a strong 2017-18 that should see at least one and possibly two tax credit financed developments and their accompanying fees. We are facing a bad year sandwiched between some very strong years. Staff is continuing to refine these projections and will provide a full report with recommendations in December. Due to these complications, a final 2016 budget may not be ready until January. This serves to underscore the great risk we take in relying so much on developer fees to support on-going organizational operations. Union James and Harvey. We have entered into two separate purchase and sale agreements with CADA for the acquisition of these properties. We continue to view the Union James as a relatively straightforward acquisition of an operating site-based Section 8 subsidized property. With 24 units and strong management we expect this project to do okay. The Harvey is a different proposition. The building is in poor condition and operates consistently at a loss. We have viewed the Harvey as a development opportunity and have been spending great effort analyzing a number of scenarios that we will present to the board. We anticipate recommending final board action at the December meeting. Our conversations regarding the CADA properties go back to early 2011 when we were contemplating a partnership with CADA in the redevelopment of the Harvey and with an eye to acquiring a stake in Squire Park Plaza. At that time, CADA decided to partner with LIHI and LIHI took over management of CADA’s properties. That arrangement did not go well and in 2014 CADA put SPP up for sale. We partnered with Jonathan Rose Companies to acquire SPP investing about $350,000 of our own resources. That deal closed late last year. In the conversations around acquiring SPP we continued to have conversations about partnering with CADA and acquiring their remaining properties. This was part of our strategic planning going back even to 2011. Entering an MOU with CADA was mentioned in our 2011 report to the board on annual strategic accomplishments.

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Resolution 2015-09: Union James Acquisition Staff will be asking the Board to adopt the attached resolution empowering staff to move forward with the acquisition of this development pending removal of final contingencies by the FAM. The Union James is a two building project comprising 24 units currently owned by the Central Area Development Association which we have been managing for over a year. Details of this project may be given in executive session. Community Development Partners Update: CHH has been pursuing CDP since March of this year. The board voted to support this concept in the context of the strategic plan adoption earlier this fall. Chris will give an update on this work. Executive Committee: Billie will update the Board on staff recommendations regarding our resident engagement work. Billie will also update the Board on the process that has been implemented to select a replacement for the resident board seat. Resolution 2015-10: Central District Support. Following up on last month, Chris will present a resolution on support for the Central District. We are introducing a Board Emeritus seat. This seat, the corollary to the Emerging Leader seat, will allow a retiring board member to retain a deep involvement in Board activities without holding voting or other formal Board rights. Please see attached memo. Chris will present different board development scenarios which hinge on the Mayoral selection as reported last month. Finance: The finance committee presents its regular report and dashboard through September 2015. Resolution 2015-11: Renewal and Increase Banner Bank Operating Line of Credit. Staff will present a resolution which has been approved by the Finance and Asset Management Committee authorizing the renewal and increase of our existing line of credit with Banner Bank from $250,000 to $500,000. Real Estate Development Discussion: Staff will provide a verbal update on existing development activities. Board Packet Attachments 1. Meeting Keys & Agenda 2. Consent Agenda and Attachments

a. Contracts and Expenditures b. October Board Minutes c. Tenant Communication Tracking

Upcoming Meetings and Events Please let Chris or Michael Know if you’d like additional information on any event or meeting. Monday, Nov 9

CHH Board Meeting Monday, Nov 23 CHH Executive Committee Dec 2 – Dec 4 Housing Partnership Network semiannual meeting (San Antonio) Monday, Dec 14 CHH Board Meeting (A&A Community Room Seattle U)

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d. Property Management Report and Minutes e. Property Management dashboard f. Memo from the CHH Foundation g. Real Estate Development Report and minutes h. Sustainability and Planning Report i. Executive Committee Minutes

3. Resolution 2015-09: Union James Acquisition and cover sheet 4. Community Development Partners Concept Paper 5. Resolution 2015-10: Central District and cover sheet 6. Memo to Board regarding Board emeritus seat 7. September 2015 Finance Report and Statements and Asset Management Report 8. Resolution 2015-011: Banner Bank Line of Credit Resolution and cover sheet 9. 2015 State Audit Report

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CAPITOL HILL HOUSING BOARD November 9, 2015

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

1620 12th Avenue, Seattle

The December 14, 2015 Board Meeting will be held at the A&A Community room at Seattle U

AGENDA 6:00 Call to Order (Quaintance)

1. Approve consent agenda Attachment 2 2. Disclosures and recusals 3. Introduce Frank Alvarado

6:05 Public Comment (Not to exceed 5 minutes per individual or 15 for combined speakers) 6:15 External Relations and Community Programs Update

1. Michael will update on foundation and community activities. 6:20 Presentation and Discussion

1. 2016 Budget Projections (Persons, Fleming) Handout 2. Update on Union James and Harvey (Persons, Elkerton, Lange) Presentation

a. Resolution 2015-09: Union James Acquisition Attachment 3 3. Community Development Partners Update (Persons) Attachment 4

7:05 Executive Committee and Board (Persons/Quaintance)

1. Resident Engagement (Abers) 2. Resolution 2015-10: Central District (Persons) Attachment 5 3. Proposed Board emeritus seat (Persons, Quaintance) Attachment 6 4. Mayoral appointment and executive committee (Persons, Quaintance) Handout

7:15 Finance Report (Porter, Wallis)

1. Financial summary, cash management report: September 2015 Attachment 7 2. Resolution 2015-11: Banner Bank Line of Credit Resolution Attachment 8 3. State Audit Update Attachment 9

7:25 Real Estate Development Discussion (Persons, Elkerton)

1. Verbal updates on Liberty Bank and the Capitol Hill TOD 7:30 Adjourn (Quaintance)

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CAPITOL HILL HOUSING REGULAR MEETING November 9th. 2015

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


CONSENT ITEMS

MINUTES AND REPORTS 1. October 2015 Draft Board Meeting Minutes (attached for adoption) 2. Committee Reports and Minutes (attached for acceptance) 3. Tenant Communications Tracking (attached for review)

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

Discrete

Date Bldg/entity Contract with: Amount: Purpose

October 1, 2015 Broadway

Crossing Argus $14,400

4 times per week

janitorial, 12 month

contract, automatically

renewed for successive

12 Month periods.

Blended

October 28,

2015 Devonshire 2 Year laundry leasse $0

October 28,

2015

Burke

Gilman

Gardens

2 year laundry lease $0

October 13,

2015

Villa Goodbye Graffiti $2148 4 patrols monthly,

12month rolling

contract to month to

month

GP ACTIVITIES (information only) None

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1

Regular Board Meeting

October 12, 2015

6:00 PM – 7:30 PM Regular Meeting

12th Ave Arts Pike-Pine Room


Members present: Alice Quaintance, Bob Fikso, Heyward Watson, Rachel Ben-Shmuel, Cathy Hillenbrand,

Paige Chapel, Robert Schwartz, Drew Porter, Dana Behar, Paul Breckinridge, BG Nabors-Glass.

Staff present: Chris Persons, Jill Fleming, Greg Elkerton, Michael Seiwerath, Melissa Blankenship, Brad

Lange, Elliot Swanson, Miranda Vargas, Joel Sisolak, Deena Wallis, Anne Hurt, Kirk McClain (taking

Minutes). Guest present: None

Members of the Public Present: Randall Lindsey

Absent: Matt Rowe, Liz Dunn, Sharron O’Donnell, Michael Malone.

Call to Order: The October 12th regular meeting of the Capitol Hill Housing Board of Directors was called to order by Chair, Alice Quaintance at 6:03 when a quorum was reached. A Motion was made by Alice Quaintance to approve the consent agenda. The motion was seconded and passed unanimously. Disclosures and recusals: None Announcements: CHH 12AA celebrated our 1st Anniversary. Public Comment: CHH resident Randall Lindsey spoke about maintenance issues at the Ponderosa Apartments and his view that a full-time on-site manager was needed there. External Relations, Community Programs and Capitol Hill Housing Foundation Update Michael reported that the Foundation sponsored Omnivorous event raised $140K. The resident speaker was very moving. Event expenses were low because the venue and food were donated, total expense were approximately $17K. Omnivorous is neighborhood oriented and has a community building aspect to it as well as fundraising. Presentation and Discussion EcoDistrict, Sustainability, and Community Development Partners: Chris reported that over the last several months, the idea to use EcoDistrict as a framework for community development event has grown.

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2

Joel discussed Sustainability and Planning Department including greening CHH portfolio. The goal is to establish a green building strategy that includes developing high-performance buildings, reducing operating costs at our existing buildings, reducing the environmental impact of our buildings, and improving resident engagement. Joel talked about benchmarks and tracking of our buildings performance based upon Seattle 2030 District goals. Recently EcoDistrict received $54,000 in funding through department of ecology related to waste management. Joel also discussed working with resident services in a partnership with Ecology Cleanscapes to develop a waste-management plan for 12AA and other properties.

Staff is currently discussing how the EcoDistrict work integrates with our community development work and the Community Development Partners (CDP) concept. The CDP concept is moving forward. Several community organizations are interested in CDP. Chris has had several discussions with organizations regarding how the CDP concept might work. AfricaTown: Chris proposed that the Board consider the objectives of Africa Town and possible ways CHH could support its objectives. The Board expressed comfort for a statement supporting goals consistent with those enunciated by AfricaTown without calling out any specific organization and asked for a formal resolution by the November Board meeting. Executive Committee and Board Resident Engagement: Postponed NEAR Job mentoring program: Miranda Vargas made a call for volunteers for the NEAR program. Robert Schwartz reported he was on the board of CHH for 3 years before he had any significant contact with CHH residents. Robert, Elliot Swanson and the first group of volunteers worked with 14 residents – three of those residents obtained employment as a result of the job coaching program. The success of the program created a demand for expansion. As a result CHH hired Miranda Vargas to coordinate volunteers for NEAR. She is working with Elliot Swanson to expand the NEAR program. Proposed Board Emeritus seat: Postponed. Mayoral appointment and executive committee: Chris reminded the Board that the Mayor has direct appointment authority for three members of our Board. The Mayor’s office has suggested Eric Snow as the next mayoral Board appointment. That seat is currently held by Robert Schwartz. CHH offered the Mayor’s office an alternate choice: Frank Alvarado. Frank brings diversity to board and is a member of the Latino and LGTBQ communities. A Motion was made by Paige Chapel to propose Frank Alvarado as a candidate for CHH Board. The Motion seconded and passed unanimously with one abstention by Robert Schwartz. Public records request: Melissa Blankenship reported that Dennis Saxman submitted a Public Records Request of CHH on September 9th, 2015. CHH will provide documents including emails, texts, and documents to Mr. Saxman on or before October 23rd. Chris mentioned that we are obligated by state law to provide the requested information. CHH could be fined for not providing the information.

Finance and Asset Management Report

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3

Drew Porter reported that the committee had reviewed the monthly report and moved to accept the report which passed unanimously. Budget timeline and assumptions: Next Finance Committee meeting there will be a draft of the budget to present to the Board. In December a final budget will be presented to Finance and Asset Management group. The new Capital budget will be presented in January 2016. Deena reviewed the proposed amendment to the Rules and Regulations modifying procedures for establishing bank accounts and allowing for certain staff to establish accounts.

A Motion was made by Cathy Hillenbrand to approve Resolution 2015-08: Amendment of the CHH

Rules and Regulations Article IV Section 2 Regarding Bank Accounts. The Motion was seconded and

passed unanimously.

Asset Management and Acquisitions Update on Union James and Harvey: Brad Lange reported that CHH is currently analyzing various remodel options on the Harvey property. Environmental Works has provided architectural renderings for redevelopment options. RAFN has provided estimates for the costs of those options. CHH is working on Purchase and Sale Agreements for both Union James and the Harvey properties Real Estate Development Discussion CH TOD: Greg reported on the progress of the Liberty Bank site. We are waiting to hear back from the City of Seattle Office of Housing with the first round of questions regarding our NOFA application. We did find asbestos contamination in the interior of building. Building will be demolished in approximately two weeks. We are now in the architectural selection process. B-North: We are in a holding pattern while Gerding Edlin negotiates terms of the Master Development Agreement for the entire site with Sound Transit. We are awaiting questions from the City on this NOFA application as well. Meeting Adjourned at 7:31 PM DATED the 12th day of October 2015. By_____________________________________ Its_____________________________________

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Tenant Communications Tracking

November 9, 2015

Building Issue Status Resolution

Silvian

Tenant is upset that she received a 10-day notice for inappropriate behavior.

Responded to tenant advising that the 10-day notice gives her the opportunity to request a meeting with staff. Open

Centennial

Tenant expressed her concern over a large rent increase.

Responded to tenant, offered to meet in person and discuss. Open

Fredonia

Tenant expressed her concern over rent increase. Closed

Rent increase stayed the same, market unit

Fleming

Tenant expressed his concern over a large rent increase. Closed

Reviewed rent increase, move in rent and current income, cut rent increase in half.

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Property Management Committee Members: Rob Schwartz (Chair), Heyward Watson, Mitchell Belcher, Chasten Fulbright and Kristin Ryan Staff: Billie Abers, Katrina McMillian

November 2015

Property Management Committee members, Heyward Watson and Kristin Ryan, met with Jill Fleming, Deputy Director, by telephone, on November 3, 2015. The committee reviewed the report and discussed current property management activities and policies. Capital Projects—current The fire alarm system upgrade at the Helen V is in progress and scheduled to be completed by the end of November. The bids for the installation of ductless heat pumps at the Brewster are in and contracts signed. Due to an electrical upgrade work should begin in late November. The water intrusion repairs on the Villa patio will be complete by the end of November. Exterior painting at the Squire Park Plaza is in progress and scheduled to be complete by the end of November, weather permitting. The HVAC installation in the commercial spaces will begin after the contractor has obtained the permits. Resident Services

· In October Resident Services provided 35 Households with direct one-on-one services. · Distributed $3177 in rental assistance. · Held 9 community events. · Launched the Navigating Employment with Assistance and Resources vocational program,

training 7 senior level professionals to serve as job coaches for CHH residents. 5 additional volunteers have been recruited, and more are needed!

· Hired Kirk McClain as a full time Resident Services Coordinator, helping to expand services to 6 additional HUD buildings.

· Committed to increasing Grace Brower’s Resident Services responsibilities, by moving her into a full time position.

· Distributed 50 tickets to residents for the Sounders recent playoffs victory.

Third Party Management

The remaining CADA buildings, Union/James and Harvey, are third party managed.

We responded to an RFP for SHA in September for Bayview Tower, we are waiting for a response.

We have signed a management agreement with Plymouth to manage the Cal Anderson House, CHREMS took over management November 2, 2015.

Building Operations From the Finance report: Year to date September, 2015 Blended Operating Statement. Vacancy loss for the portfolio was 2.6% for the first nine months of 2015. Vacancy loss for 2014 and 2013 was 3.8% and 2.7%. For budget purposes we assumed vacancy rates ranging from 3-5% depending on the building.

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Capitol Hill Housing

Operating Statement

For the period ending: 9/30/2015

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 2015 A A A

Type HUD Buildings Units Actual Inc Budget Var %Actual Exp (before debt service)Budget Var %

Op exp/unit -

YTD (Before

Res)

2015 YTD

Vac Loss

Vac

9/2014-

9/2015 2014 Vac

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 2013

Actual

DCR 2012

Actual

DCR

2014 Actual

Reserve Balance -

6/30/2015

Operating Reserve

Balance 6/30/2015

Cash budgeted into

CHH budgetComments

Blended HUD 18th Ave 9 88,338 85,963 3% 45,096 46,732 4% 5,011 0.2% 0.2% 0.0% 2,589 100% 100% Y 1.14 1.02 1.15 $90,894 $866

Blended 410 Apts 6 40,005 39,002 3% 24,888 27,543 10% 4,148 1.8% 1.4% 0.0% 7,614 85% 99% Y 27 2.49 3.03 * $71,645 $30,670

Blended HUD 412 Apts 12 125,877 131,837 -5% 98,147 107,980 9% 8,179 7.6% 11.1% 8.8% 16,018 88% 89% Y 105 2.30 2.38 * * $90,680

Blended Berneva 12 79,290 77,056 3% 55,279 65,842 16% 4,607 0.1% 1.1% 2.7% 13,213 100% 99% Y Y 65 2.18 1.22 1.61 $9,158 $5,528

Blended Boylston Howell 30 222,280 219,929 1% 174,021 168,627 -3% 5,801 1.7% 2.2% 1.0% (19,446) 100% 97% Y Y 39 1.09 1.08 0.98 $55,631 $14,766 Annual debt service payment in May

Blended Bremer 49 310,240 302,307 3% 177,159 194,632 9% 3,615 1.4% 1.5% 1.6% 51,482 100% 99% Y Y 47 1.25 1.46 1.60 $106,913 $32,173 $15,000

Blended Brewster 35 214,160 209,907 2% 134,419 127,795 -5% 3,841 2.6% 3.6% 3.4% 32,628 99% 96% Y Y 55 3.20 1.64 2.30 $496,417 $30,618 $15,000

Blended Broadway 5 42,589 44,038 -3% 22,837 28,270 19% 4,567 3.4% 7.5% 9.1% 9,175 100% 92% Y 57 1.76 2.78 1.82 $14,620 $3,553

Blended Burke Gilman Gardens 15 129,977 130,784 -1% 78,552 100,534 22% 5,237 4.6% 5.2% 3.2% 22,197 98% 95% Y Y 94 0.88 1.89 1.42 $95,245 $26,808

Blended Byron Wetmore 12 90,358 93,899 -4% 85,009 84,125 -1% 7,084 7.0% 5.3% 4.4% (5,475) 100% 95% Y 101 1.35 2.97 4.64 $39,787 $5,815 $7k in construction consulting fees for siding repairs

Blended Casa di Cinque 5 47,112 47,624 -1% 27,433 35,639 23% 5,487 4.9% 3.8% 0.0% 15,528 80% 97% Y - *** * * $21,828 $11,845 $5,000

Blended Centennial 30 232,497 220,731 5% 110,987 126,313 12% 3,700 0.7% 0.6% 3.1% 26,667 100% 100% Y Y 19 1.12 1.13 1.22 $37,904 $16,808

Blended Devonshire 62 412,209 401,047 3% 301,658 287,645 -5% 4,865 1.3% 2.1% 2.9% 22,881 96% 98% Y Y 56 4.56 7.14 7.57 $342,455 $10,187 $35,000

Blended HUD Elizabeth James 60 447,434 432,061 4% 282,209 301,069 6% 4,703 1.1% 1.8% 6.1% 11,468 98% 98% Y 83 1.51 1.67 0.88 $95,167

Blended Fleming 36 224,301 220,483 2% 145,430 146,804 1% 4,040 5.0% 6.6% 7.7% 7,213 100% 94% Y Y 72 1.06 1.01 0.79 $32,462 $5,609

Blended Fredonia 12 208,272 197,776 5% 121,717 107,081 -14% 10,143 2.5% 1.9% 0.8% 29,835 92% 98% Y Y 60 1.54 1.60 1.37 $54,988 $70,867 $30,000

Blended Gale Place 24 214,583 202,923 6% 174,658 166,680 -5% 7,277 2.4% 2.3% 2.4% 9,455 100% 98% Y 79 1.97 1.51 2.14 $24,019 $41,945

Blended Gilman Court 25 216,115 209,645 3% 163,084 157,983 -3% 6,523 0.7% 1.0% 0.9% 2,088 100% 99% Y Y 28 1.75 1.55 1.78 $56,975 $4,585

Blended HUD Hazel Plaza 16 159,930 160,325 0% 102,369 82,999 -23% 6,398 3.0% 4.3% 7.7% (4,060) 100% 96% Y 87 ** * * $111,340 $0 Rehab expenses paid out of operating

Blended HUD Holden Vista 16 113,622 125,037 -9% 137,753 106,245 -30% 8,610 14.4% 11.4% 5.7% (45,391) 94% 93% Y 31 0.51 1.20 1.71 $66,586 CHH took over management 8/1/2015, a lot of deferred maintenance

Blended John Carney 27 157,457 154,935 2% 105,444 111,765 6% 3,905 2.3% 4.2% 4.9% 18,622 100% 96% Y Y 79 1.35 2.07 1.31 $37,261 $36,192 $5,000

Blended Larned 33 184,546 186,025 -1% 160,881 167,272 4% 4,875 2.6% 3.5% 3.7% 15,786 100% 96% Y Y 60 ** * * $34,378 $17,779

Blended Lincoln Court 29 200,901 199,618 1% 118,615 116,102 -2% 4,090 1.3% 2.0% 3.4% (2,346) 97% 98% Y Y 37 1.09 1.09 0.69 $3,626 $725

Blended HUD Mary Ruth Manor 20 185,359 178,981 4% 120,347 130,644 8% 6,017 1.3% 2.6% 4.9% 20,101 100% 98% Y 77 2.11 1.37 1.22 $143,213

Blended Maxwell 4 31,933 30,860 3% 18,514 24,560 25% 4,629 0.0% 0.0% 0.0% 8,853 100% 100% Y 2.51 2.41 3.51 $14,615 $13,005

Blended Melrose 30 164,888 173,339 -5% 153,565 142,554 -8% 5,119 8.9% 8.8% 4.8% (17,450) 92% 91% Y Y 77 1.73 1.58 1.95 $69,631 $28,085 Reserves in transit $24,000

Blended Miller Park 12 101,887 103,760 -2% 72,539 76,793 6% 6,045 2.2% 1.7% 8.5% 4,510 100% 98% Y Y 38 1.16 1.39 0.99 $175,612 $29,859

Blended Park Hill 30 268,019 271,411 -1% 185,496 193,688 4% 6,183 4.4% 3.4% 2.1% 33,597 97% 98% Y 69 1.76 1.44 2.38 $32,854 $65,641 $25,000

Blended HUD Ponderosa 23 152,339 147,121 4% 111,622 135,048 17% 4,853 1.0% 1.8% 5.7% 24,104 100% 98% Y 64 *** * * $256,126

Blended Seneca 32 243,946 237,641 3% 166,836 178,366 6% 5,214 0.0% 0.4% 2.6% 29,588 100% 100% Y Y 2.82 2.84 2.67

Blended Villa 62 525,353 509,569 3% 291,701 307,615 5% 4,705 3.1% 4.0% 3.4% 63,423 97% 95% Y Y 80 1.24 1.22 1.46 $127,877 $11,804

5,835,818 5,745,632 3,968,268 4,054,946 404,467

Discrete 12AA 88 717,793 722,260 -1% 354,301 350,112 -1% 4,026 1.4% 3.6% 3.6% 216,152 96% 98% 27 * * * $78,096 $435,366

Discrete Broadway Crossing 44 320,427 314,732 2% 229,685 243,252 6% 5,220 0.6% 1.3% 4.8% 37,130 100% 97% Y Y 36 1.37 1.64 1.27 $156,199 $103,506

Discrete HUD El Nor 55 424,449 415,013 2% 290,778 307,457 5% 5,287 0.3% 0.8% 2.6% 34,650 100% 99% Y 93 1.69 1.30 1.67 $514,795 $182,390

Discrete Fremont Solstice 18 147,948 151,386 -2% 112,365 107,207 -5% 6,243 0.7% 5.5% 7.4% (10,777) 100% 95% Y Y 136 1.32 1.34 0.96 $56,488 $78,908 Projected rents are $5k under budget, maintenance is higher than budgeted

Discrete Haines (new) 30 219,966 217,317 1% 194,573 156,786 -24% 6,486 2.3% 1.7% 0.0% 14,798 100% 98% 38 * * * $30,011

Discrete Harrison 19 247,316 245,138 1% 164,554 147,682 -11% 8,661 0.1% 1.2% 2.9% (14,178) 100% 99% Y Y 82 1.10 1.03 1.03 $29,961 $73,412 Not fully exempt from real estate taxes

Discrete HUD Helen V 38 303,972 303,721 0% 175,257 178,696 2% 4,612 1.0% 1.2% 1.9% 4,220 100% 99% Y Y 85 1.41 1.39 1.03 $263,111 $107,732

Discrete Holiday 30 246,993 240,980 2% 125,410 138,673 10% 4,180 2.6% 4.5% 6.2% 24,790 100% 95% Y 68 1.00 0.94 1.07 $39,246 $128,080

Discrete Oleta 34 228,252 221,757 3% 128,793 139,367 8% 3,788 2.2% 2.2% 8.2% 15,102 94% 97% Y Y 45 1.02 1.03 0.84 $139,251

Discrete Pantages 49 371,729 373,025 0% 385,997 262,996 -47% 7,877 1.6% N/Av 3.8% (97,154) 100% 98% Y Y 33 1.47 1.76 1.52 $494,208 $168,618 Repair and maintenance to reserve

Discrete HUD Silvian 32 272,223 270,004 1% 181,675 181,973 0% 5,677 2.6% 2.8% 3.6% (1,205) 97% 97% Y 97 1.45 1.68 1.10 $291,194 $157,990

Discrete Squire Park Plaza 60 767,187 833,606 -8% 365,842 278,600 31% 6,097 8.2% 8.2% 2.5% 148,052 91% 92% 76 * * * * $8,175

Discrete The Jefferson 40 369,335 363,959 1% 211,530 197,774 -7% 5,288 2.3% 2.1% 1.0% 4,578 99% 98% Y 40 1.02 part yr 1.14 $55,962 $211,000

Discrete Unity Village 30 204,665 208,648 -2% 154,167 160,765 4% 5,139 2.8% 2.5% 2.2% 40,660 97% 91% Y - ** N/A * *

1340 4,842,254 4,881,546 3,074,926 2,851,339 416,818

M:\Admin\Board\PACKETS\2015 Packets\11 15\September 2015 Property Management Dashboard.xlsx

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MEMORANDUM

To: Capitol Hill Housing Board of Directors

From: Joshua Okrent, Senior Manager of Fund Development, Capitol Hill Housing Foundation

CC: Christopher Persons, Michael Seiwerath

Re: November 2015 Fundraising and External Relations Update

GRANTS AND DONATIONS

As anticipated recently, we received a grant of $10,000 from the Seattle Foundation from their Basic Needs program. This grant was not included in the budget for 2015 and with this award we have reached our goal for institutional giving for the year.

We submitted an LOI for $100,000 to the Washington Women’s Foundation for creation of Community Development Partners.

Fall Giving Campaign

The year-end giving campaign will include an appeal letter the week of Thanksgiving, as well as a series of targeted emails and personal outreach. On December 1 from 4:30 – 5:30pm, members of the CHH Foundation board will meet to form a “phone bank” during which we will follow up with donors who made gifts in the last two years, but who have not yet made a gift in 2015. Members of the CHH board are invited to join in this one hour session. If you would like to join, email Simone Hamilton at [email protected]

AWARDS

The Haines Apartments has been recognized as a National Affordable Housing Management Association (NAHMA) Community of Quality. The NAHMA board recognized our site management, our success in improving the property, and the impact our work has had on the residents of the building. Receiving this status allows The Haines to compete for a national Exemplary Development award, which we will be submitting later this month.

CAPITOL HILL HOUSING FOUNDATION BOARD

At the October CHH Foundation board meeting, candidate Laura Miller was voted on to the board of directors. Laura Miller is a partner/broker at Gibraltar, a real estate services firm. Laura has extensive experience in commercial leasing on Capitol Hill, including the leasing of the commercial spaces in 12th Avenue Arts. More information on Laura is here.

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COMMUNICATIONS & EXTERNAL RELATIONS

Media coverage this month:

Pedestrian streets:

http://www.capitolhillseattle.com/2015/09/what-counting-every-pikepine-pedestrian-on-a-summer-night-reveals/

http://www.capitolhillseattle.com/2015/10/sawant-and-banks-throw-barbs-and-take-a-few-hits-in-district-3-debate/

http://www.seattlemet.com/articles/2015/10/5/fizzoct515

http://www.seattlemet.com/articles/2015/10/26/the-capitol-hill-street-closure-controversy

Shared parking: http://www.capitolhillseattle.com/2015/10/proposals-could-bring-shared-parking-to-capitol-hill-give-neighborhoods-a-slice-of-meter-funds/ Letter of support for HALA signed by CHH (item 3): http://www.seattlemet.com/articles/2015/10/21/murray-amends-wage-law-to-meet-union-demand

ULI Award for 12th Avenue Arts: https://www.djc.com/news/re/12082601.html

We also received several congratulatory notes from partner organizations on Facebook.

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CAPITOL HILL HOUSING FOUNDATION 2015 Budget Overview

As of 11/3/2015

Unrestricted Budget

Income Source 2015 Goal 2015 Actual % to Goal

Government $ 20,000 $ 22,000 110.0%

Foundation $ 219,917 $ 204,598 93.0%

Corporate $ 89,250 $ 182,761 204.8%

Individual $ 118,000 $ 122,663 104.0%

Events & Sponsorships $ 143,500 $ 152,805 106.5%

TOTAL $ 590,667 $ 684,828 115.9%

Restricted Budget


Government $ - $ -

Foundation $ 100,000 $ 100,000 100.0%

Corporate $ 0 $ - 0.0%

Individual $ 25,000 $ - 0.0%

Events & Sponsorships $ 0 $ - 0.0%

TOTAL $ 125,000 $ 100,000 80.0%

Combined Budgets

(Restricted & Unrestricted)


Government $ 20,000 $ 22,000 110.0%

Foundation $ 319,917 $ 304,598 95.2%

Corporate $ 89,250 $ 182,761 204.8%

Individual $ 143,000 $ 122,663 85.8%

Events & Sponsorships $ 143,500 $ 152,805 106.5%

TOTAL $ 715,667 $ 784,828 109.7%

12th Avenue Arts Capital Campaign

Overall GOAL : $4.6 M

Goal Pledged

TOTAL $4,600,000 $4,691,177

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REAL ESTATE DEVELOPMENT BOARD REPORT

Property Development Committee (PDC) Members: Paul Breckenridge, Alice Quaintance, Liz Dunn, Matt

Roewe, Dana Behar, Rachel Ben-Shmuel, Bob Fikso, Andrew Brand; Staff: Greg Elkerton, Katie Porter

The PDC met on Tuesday, November 3rd at 5:30pm. PDC members in attendance were Rachel, Bob,

Andrew, and Paul; CHH staff members in attendance were Katie and Greg.

November 2015

CURRENT PROJECTS

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

The one-year warrantee inspection with Walsh Construction revealed minor issues, which are being

addressed. After construction delays, Pelmeni Dumpling Tzar is hoping to open in November.

2. Haines

Staff completed a Capitol Needs Assessment of the property incorporating an expected plan for a

“Phase 2” of the rehab, which will likely not begin until 2017.

3. Union & 24th (Liberty Bank Building):

The existing bank building was demolished at the end of October, after asbestos abatement and the

removal and storage of the vault door and brickwork which will be incorporated into the new building.

Further soil tests were taken and the environmental consultant is working on additional site

characterization and a plan of action to be presented to the Department of Ecology later this year. We

are hopeful that the remediation costs might be substantially below original estimates. Staff responded

to several follow-up questions from the City and State regarding the funding application we submitted

in September. Six architectural firms were selected from CHH’s Architect Roster to submit proposals

for full architectural services for the design, permitting, and construction monitoring of the building.

We plan to select an architect and begin design work in January in order to rezone the property from

four stories to six stories.

4. Broadway TOD B-North Site:

Staff responded to several questions from the City and State regarding the funding application we

submitted in September. Gerding Edlen, our development partner, is still negotiating a Term Sheet

with Sound Transit for the development of the entire TOD site.

POTENTIAL PROJECTS

5. Harvey Apartments

CHH entered into a PSA with CADA for the potential acquisition of the Harvey. Staff is working with

Environmental Works and RAFN Construction to explore the feasibility of various

renovation/redevelopment options, costs, and financing structures.

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SUSTAINABILITY and PLANNING

MONTHLY REPORT TO

CAPITOL HILL HOUSING PDA BOARD

November 9, 2015

Staff: Joel Sisolak, Sustainability Director, Alex Brennan, Senior Planner, McCaela Daffern, Sustainability

Manager

EcoDistrict Steering Committee: Neelima Shah (co-chair)*, Mike Mariano (co-chair)*, Matthew Combe*,

Julie West, Cathy Hillenbrand*, Alicia Uhlig, Charles Bowers, Clayton Smith, Erik Rundell, Erika Melroy,

Heather Burpee, Ian Siadak, Janet Shull, Joe David, Julie West, Lauren Rochholz, Leon Garnett, Liz Dunn,

Michelle Caulfield, Michelle Hippler, Mike Archambault, Chasten Fulbright, Whitney Fraser, Kaleb Miller.

*Executive Committee member

PROGRAM DEVELOPMENT

Grants We submitting an application with the Capitol Hill Chamber for Only In Seattle funding from the Office of Economic Development for 2016. We are pursuing funding from King County Metro, Seattle City Council, and the Loom Foundation. We did not receive funding from TransitCenter.

Sponsorship We continue to reach out to businesses to request sponsorship. At the September 11 Steering Committee meeting, Michael Seiwerath spoke to the EcoDistrict Steering Committee to request support in reaching our $20,000 goal.

Staffing Jess Blanch was hired as our Rose Fellow for 2016-18. Roughly 35 percent of her time will be devoted to EcoDistrict and other Sustainability-related work.

2016 Work Plan The EcoDistrict staff is drafting a 2016 work plan. Next steps include taking the draft scopes through our new Equity Questionnaire. We look forward to presenting a draft work plan to the Steering Committee in November.

ECODISTRICT PROJECTS

Community Solar We awarded a contract to NW SEED to analyze the feasibility of expanding the community solar program onto other buildings. A final report of their findings will be ready in December.

District Shared Parking We are reexamining scope and timeline based on not receiving TransitCenter funding and new funding opportunities related to transit demand management and local policy analysis.

Dumpster Removal We are working under an Only in Seattle contract to explore waste management alternatives to the current placement of waste and recycling dumpsters on streets and sidewalks within the EcoDistrict. We are

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documenting the problem and are working with the Capitol Hill Chamber, SPU, SDOT, haulers, property owners and local retailers on developing a series of mitigation strategies.

Pedestrian Streets Pilot The EcoDistrict and City of Seattle held 2 community meetings, have received 272 online survey responses, and have conducted over a dozen in depth interviews with stakeholders. A final report summarizing the project and neighborhood feedback will be presented to the Mayor’s Office in late November to help them make a final decision about next steps for this concept.

Housing Affordability and Livability Agenda Analysis We have been in ongoing conversation with City departments and elected officials about how the EcoDistrict could help advance the goals of the Mayor’s HALA Agenda. Seattle City Councilmember Burgess sponsored a green sheet to support our shared parking work and a Statement of Legislative Intent to instruct SDOT to identify a legal and policy path forward for piloting a Parking Benefit District in the EcoDistrict.

Land Use Review Committee (LURC) Now that the LURC charter is drafted, we are working on developing a draft job description to be used in recruiting potential committee members this fall. The Land Use and Development Working Group is leading this effort. We are looking at the expansion of the Washington State Convention Center as a possible early point of focus for the LURC.

ECODISTRICT LEADERSHIP

Capitol Hill EcoDistrict Steering Committee The November meeting will focus on our draft 2016 work plan and evaluate the effectiveness of the working group structure with an eye to retooling the working groups for next year.

Waste and Behavior Working Group The Waste and Behavior WG is focused on developing a resident engagement program, which will operate as a partnership between Capitol Hill Housing and Recology Cleanscapes. With funding from Ecology now anticipated, the working group has re-started its work.

Equity and Engagement Working Group The Equity and Engagement WG refined the equity questionnaire they developed for reviewing all new EcoDistrict initiatives. This WG also will be assuming a significant role in the development and implementation of the renter engagement program.

Land Use and Development Working Group This WG reviewed zoning topics that could be part of a future planning process as well as LURC development and implementation. EcoDistrict and DPD staff will work on 2016 project scoping.

COMMUNICATIONS & ENGAGEMENT

Renter Engagement Staff has drafted a project scope for Renter Engagement. The Equity and Engagement Working Group reviewed this draft scope for the Renter Engagement project at their last meeting and discussed roles for group members and staff. We are also pursuing additional funding opportunities.

Resource Media Resource Media is a Bullitt Foundation grantee that will be providing some communications and branding support for the EcoDistrict. We are working with them on strengthening the messaging around the EcoDistrict, especially as it relates to residents/renters in the neighborhood. We also will be considering a renaming of the Capitol Hill EcoDistrict.

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http://www.resource-media.org/

Capitol Hill Community Council The Community Council held a well-attended meeting on Law Enforcement Assisted Diversion (LEAD), a pilot program to divert low level drug and prostitution offenders from incarceration to treatment, housing, and other services that has been highly successful in other parts of Seattle. Building off of this successful meeting, the Council, with our support, is leading (no pun intended) a conversation about expanding LEAD and another human services program Multi-Disciplinary Team (MDT), to Capitol Hill.

OTHER COMMUNITY DEVELOPMENT WORK

South 12th Research and community engagement for this project is ongoing. We have signed a contract with a community engagement consultant finalize several projects related to engaging East African businesses in this corridor.

GREENING CHH

Resource Conservation We are piloting WegoWise in five of our properties for monitoring the energy and water use.

Waste Reduction Plan Now that the Public Participation Grant has been awarded, staff is beginning to develop a waste Reduction Plan that guides the reduction of waste and toxins generated by the construction of new CHH buildings, the operation and maintenance of existing CHH properties, and CHH-sponsored events. The plan will also include strategies to encourage the use of recycled and reclaimed materials, promote recycling and food waste composting, and ensure proper disposal of hazardous materials.

Recycling Champion Program Staff is developing a plan to pilot a resident engagement program in ten CHH properties to support our tenants in reducing the waste and toxins in their homes. This pilot will be implemented in partnership with Recology CleanScapes and in collaboration with CHH Resident Services staff. This fall, staff will perform waste audits in the pilot buildings and develop the curriculum and incentive for the resident Recycling Champions.

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DRAFT: Agenda Executive Committee Minutes October 26, 2015 1620 12th Ave Suite 205: Belmont Room 5:00-6:05 PM

1. Lead Items Harvey and CADA Properties: Three board members and a number of staff toured Harvey and RAFN and Environmental Works have been hired to perform site analysis. Union James are increasingly under control with our property management services and the departure of tenants who were at the center of drug dealing and gang activity. 2. External Relations, Community Programs, Board Issues Board development updates Emerging Leader: Chris discussed several scenarios regarding how to maneuver board candidates into place while we wait for the Mayoral selection to be made. Resident Board Interviews: Chris and Alice have narrowed down the candidate pool to two: Signe Predmore and Derrick Belgrade. Chris has requested references from both candidates. Will conduct one more interview with both candidates and make a decision. CD Resolution: Chris presented a resolution based on supporting activities in the Central District that support the African American community and received feedback from the committee. Chris Sabbatical Plan – Chris has submitted his application for Sabbatical. A committee of board and staff will be established per the policy to review the request. Relationship between CHH and Publically Displayed Theater Promotional Material: The committee discussed the ramifications of perceived offensive content in theater posters being connected to the CHH brand. The theaters have artistic freedom which is documented in their lease. The question of whether publically displayed material affixed to the building is covered in the terms of the lease was discussed without a definitive resolution. Staff are uncomfortable crossing that line and being put into the position of monitoring theater content even in the case of offensive posters. The consensus of staff leadership is to not cross that line unless there is an undetermined large amount of complaints in a particular instance. Finance, Property Management, Asset Management, Acquisitions and Administration Staff Survey: Chris reviewed the results of a staff survey that indicate general satisfaction with the workplace and direction of the organization. The Chair announced an Executive Session at 6:27 PM exiting session at 6:37. The committee came out of Executive Session at 6:35 PM Meeting Adjourned at 6:35 PM

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CHH Board Proposal: Resolution 2015-09: Union James Acquisition

Purpose: Brief description To authorize CHH to acquire Union James Apartments. The purchase price will be

the assumption of the existing debt on the property.

Charter or Rules and Regulations Modification:

o Does this Resolution change the Charter or Rules and Regulations? Yes X 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: Please provide a general outline of the proposal, why this is being recommended, risk

assessment, cost, proposed funding and any operational impact

CHH will acquire the Union James Apartments, a two building, 24 unit project from CADA. The purchase

price is the assumption of the current debt, comprised of a loan from the City of Seattle with a 9/30/15

balance of $1,157,192, and a loan from Chase Bank with a 9/30/15 balance of $941,990, for a total

purchase price of $2,099,182 or$ 87,466 per unit. CH REMS has been managing this property since

10/1/15, and staff are familiar with the operations of the property. If CHH completes this acquisition it

will ensure the preservation of 24 affordable housing units in the Central District.

The Board has been briefed on this and other projects that are part of a set of work we have been

pursuing in the Central District for the past 3 years culminating with the purchase of Squire Park Plaza

and 24th and Union. These buildings add to our stock of Section 8 properties and are easily managed as

a part of a growing Central District portfolio. We made recent presentations to the board in August of

2014 and March of 2015 demonstrating the mission and strategic fit of acquiring these properties.

Organizational requirements of resolution: Please identify any changes to the organization structure, management, Board

requirements, discussion of best practices and internal control or other changes necessary to complete this Board resolution.

None

Financial cost of the resolution: Please identify the cost associated with this resolution; indicate if the cost is annual or on-going or

time commitment. Please identify the funding sources (rents/operations, external grant, use of Board Authorized reserves or other). Please

indicate the likelihood of the funding source and if an on-going what would happen should the funding source be inadequate. If the proposal

provides positive net assets (margin) what is the recommended use of funds. If this is an investment in the infrastructure of the organization

what is the expected payback period and how was that calculated. What if any cost associated if we do not take this action?

Since we have been managing the project through our CH REMS subsidiary, we have adequate staff

capacity to manage the property. The property has a Section 8 contract that will subsidize the operation

of the property. The 2016 budgeted Net Operating Income after reserves from the property is $98,410.

If we do not purchase the property it is unknown who would operate it going forward as the current

ownership is winding down operations.

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CHH Board Proposal: Resolution 2015-09: Union James Acquisition

Pros: (Solutions solved) The acquisition of Union James by CHH will ensure the preservation of 24 units of

affordable housing in the Central District and will provide positive cash flow to CHH.

Con: (Risk assessment) The property has had some challenges with residents but these have been addressed

by the outstanding efforts of our property management team.

Follow-up or continued reporting requirements to the Board: None

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ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS OF THE CAPITOL HILL HOUSING IMPROVEMENT PROGRAM,

A WASHINGTON PUBLIC CORPORATION

RESOLUTION 2015-09

Union James Acquisition Resolution

WHEREAS, Capitol Hill Housing Improvement Program (CHH) was created by the City of Seattle to assist persons of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities and; WHEREAS, the Program may provide these services, activities and facilities outside these boundaries with approval of the PDA Board of Directors; and

WHEREAS, it is in the interests of the Capitol Hill community, and in the furtherance of the purpose of CHH, to promote the development of decent, affordable housing; and WHEREAS, CHH has previously identified an opportunity to purchase a two building project, the Union located at 981 20

th Ave and James at 2101 E. James Street in the Central District neighborhood (the

“Project”) which can provide such affordable housing; and WHEREAS, the acquisition of the Project will provide 24 units of affordable housing for very low- income households; and WHEREAS, CHH has entered into a Purchase and Sale Agreement dated October 15, 2015, for purchase of the Project; and WHEREAS, after review of the property’s physical condition, financials, loan documents, regulatory agreements, title reports and other documentation, CHH desires to purchase the Property. NOW, THEREFORE, BE IT RESOLVED by the Board of Capitol Hill Housing as follows:

(1) The CHH Council hereby finds and determines that the acquisition will enhance and preserve the stock of affordable housing in the Central District community for persons of low income.

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(2) The CHH Council therefore specifically finds and determines that acquisition and operation of the project will further the purpose of CHH and is therefore within the power and authority granted to CHH by its Charter. (3) The CHH Executive Director is authorized and directed, to: (a)Assume the current loans encumbering the property; (b) Form and enter any limited partnerships or limited liability companies as necessary to utilize financing and to be owner of the property; and (c) Assign the Purchase and Sale Agreement to a Limited Liability Company or Limited Partnership of which CHH is a member; And (d) Authorizes staff to approve the removal of all Purchase and Sale Agreement feasibility contingencies except the final assumption of financing contingency. (e) The final contingency may be removed by Board or Finance and Asset Management Committee action.

CERTIFICATION

I, ____________________, certify that I am the ________________of Capitol Hill Housing Improvement Program (CHH) and that the foregoing Resolution 2015-09 was duly adopted at a meeting of the Board of Directors of CHH held on November 9, 2015 in accordance with the Charter and Rules and Regulations of the Corporation upon proper notice and at which time a quorum was present.

Dated November 9, 2015

By:_____________________________

Name: __________________________

Title: ____________________________

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1

Community Development Partners Concept Paper September 2015 (Updated 11/5/15) This paper is intended to provide a brief overview of a concept that CHH is exploring as part of its 2015 strategic planning effort. A full business plan will be written prior to Board approval and launch. Background Over the last 5 years CHH has become more strategic about working in communities other than Capitol Hill. We have made several attempts to form collaborations, partnerships and even merge with other Community Development Corporations (CDCs) with the purpose of expanding services in other communities while increasing and strengthening our real estate portfolio. We have watched two neighborhood based organizations in Seattle become virtually defunct at the same time they rejected our offers to partner and support their ongoing operations. Those neighborhoods no longer have viable community organizations focused on equitable growth. We believe CHH has been hindered in its desire to partner with local organizations because of our place-based name and the perception that we are narrowly focused. In fact we have varying degrees of involvement in multiple Seattle neighborhoods. Organizations we have approached seem to feel threatened by CHH’s proposed role and have been unwilling to relinquish control of portfolios that have faded under weak management. There also appears to be a “we can do it” attitude contrary to the fiscal realities on the ground. Furthermore, the sentiment that CHH is “coming into our neighborhood to take over” has been an apparent factor. In the case of one entity with which we had had long discussions of partnering, our offer of reasonably compensated support was ultimately rejected. Because of that entity’s continued fiscal decline, we have now purchased one of their properties and are managing and, with City support, pursuing ownership of their others—there could have been a better outcome had a partnership been agreed to. The trend of failing CDC’s is one that we are witnessing nationally. From 2002 to 2010, the number of CDCs dropped from 8,400 to approximately half that. At the same time, one Community Development Financial Institution (CDFI) in Seattle that had focused on building the capacity of community based organizations has become far less active in that line of business. While their own capacity and staffing has declined dramatically. Opportunity CHH sees an opportunity to partner with community based organizations (CBOs) and sees a significant need to help build local capacity for growing equitable communities. We also see an opportunity to build a self-sustainable and well managed portfolio of affordable housing and community facilities regionally. To take advantage of the opportunities and meet the significant need for local community development capacity, CHH has begun to explore the formation of a new entity to facilitate partnership and capacity building support. We are giving this entity the descriptive working title Community Development Partners (CDP). Community Development Partners would be a staffed, non-profit entity and would be a CDFI or own a CDFI and would be affiliated with CHH under a separate board of directors. CDP would partner with local CBO’s in their own communities to build organizational capacity toward equitable community development. The depth of the partnership would vary depending on the strength of the local entity. Working with the community based organization, at their own request or at the request of institutional funders, CDP would perform a needs and priorities assessment to determine the formation and depth of partnership. A contract would be created to manage the relationship and clearly delineate respective roles.

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2

Context and Case Example CHH is studying the national CDC system to understand if this model is being utilized in other markets. We do know anecdotally that larger CDC’s are beginning to work with smaller ones behind the scenes by lending their development and management capacity while the on-the-ground work is performed by the CBO. We also note that one large California based affordable housing developer operates a CDFI which they deploy as a means to enter new markets. However, this entity is not a CDC.

Case Example: Two CDCs have been operating in adjacent neighborhoods for about 10 years. One owns and operates approximately 130 units of housing and at least one community facility. The other has no real estate portfolio. The first, CDC A, once had a staff of 20 and an annual operating budget of $4 million but has fallen on very hard times, has no full-time staff and is largely board operated. Its real estate is third party managed. They currently have a 15% ownership stake in a 30-unit building owned and operated by CHH. The other, CDC B, has also seen its funding drop and has been forced to lay off many staff. CDC B holds a 5% ownership stake in the same 30-unit property and earns an annual fee for resident services. Community Development Partners is asked by institutional funders and public agencies to assist. Working with the CBOs, it is determined that it is best for the two CDCs to merge but CDC A declines. The primary City funding agency puts significant pressure on CDC A and their assets and the assets of CDC B are merged into a new single entity; their boards are merged and the new entity serves the two communities. Primary ownership and management of the portfolio is shifted to CHH through CDP. This consolidation of

CDP

CHH

CBO CBO

Community Development Partners provides support, staffing, financing and can be the conduit for other services provided by CHH.

Community Based Organization deeply rooted in community provides services to residents and pursues equitable growth.

Capitol Hill Housing develops real estate, provides back-office support, and manages properties. CHH manages CDP.

Affordable housing or community facility owned and operated by CHH in partnership with the CBO.

COMMUNITY DEVELOPMENT

PARTNERS DIAGRAM

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3

management and ownership creates important economies of scale. Working closely with the new CDC, a real estate development project in one of the neighborhoods is pursued by CHH staff. Ownership for new and existing properties is established at a 95%/5% ratio. The new CDC provides services to the residents of the properties and is the primary relationship with local community groups. CDP assists in setting up an ecodistrict for the community, which is operated by the new CDC. Working through CDP, CHH assumes management of the new CDC’s finances and takes on grant writing work for the CDC. CHH absorbs some existing staff into its finance and fund development departments. Those employees see their salaries and benefits increase as members of a larger organization. CDP provides a grant and loan to assist with community staff training and development. The new CDC will share in revenue from well performing real estate operations as well as a significant development fee from the new project. The new CDC is also able to attract place based funding previously denied them because of their partnership with CDP. The number of staff employed on community activities increase significantly. In this case example, the CDCs are in very difficult financial circumstances and require a great deal of support from CDP and CHH. Other cases may have different levels of involvement. Timeline Although rooted in earlier concepts and our history as a CDC, the CDP concept most recently emerged from a staff planning meeting in the spring of 2015. Staff has vetted this concept with national community development leadership and local funders and has been given encouragement to pursue the idea. The CHH board has formally voted to move forward with the study and creation of CDP pending final resolution to incorporate. 2016 would be the year for fully executing the creation of the new entity and implementing its use in one neighborhood.

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CHH Board Proposal: Resolution 2015-10 Central District

Purpose: This resolution establishes our support for activities in the Central District of Seattle

which create opportunity for African American culture and economic success especially while

working with local organizations.


o Does this Resolution change the Charter or Rules and Regulations? Yes

NO


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: This resolution follows a number of discussions at the board

level about activities in the Central District that are intended to preserve and help grow a hub

for the African American community in that neighborhood. It responds to a specific request for

our support of “AfricaTown.” And whereas it does not call out any specific organization, it does

support the general principles and goals of this movement.

Organizational requirements of resolution: Although we currently have no formal

requirement to do so, this may become more common as we formally align ourselves with

efforts in other neighborhoods.

Financial cost of the resolution: None

Pros: This resolution helps to clarify our focus in the community while responding to the

concerns and goals of many members of the Central District.

Con: Not everyone agrees with the goals of the AfricaTown movement and so we could

experience some reputation risk, although I think it is small.

Follow-up or continued reporting requirements to the Board: On going reporting about our

work in the CD.

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ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS OF THE CAPITOL HILL HOUSING IMPROVEMENT PROGRAM,

A WASHINGTON PUBLIC CORPORATION

RESOLUTION NO. 2015-10

Central District

WHEREAS the Capitol Hill Housing Improvement Program (The Program) recognizes and honors the legacy of African American life and culture emanating from the Central District for over a century; and

WHEREAS the Program also recognizes that the Central District community has been culturally diminished over the past thirty years losing long-time residents, locally owned businesses and a sense of African American community; and

WHEREAS many members of the African American community desire to stem displacement and to maintain and build a hub for the African American community that celebrates the rich culture and spirit of the African Diaspora, providing employment and economic empowerment opportunities; and

WHEREAS the Program has increased its activities within the Central District community with the acquisition and development of new properties and growing involvement in community development activities;

Now therefore be it RESOLVED that the Board of Directors of the Capitol Hill Housing

Improvement Program hereby: 1) Supports local efforts that build African American community, culture, employment and

education in the Central District, and

2) Authorizes and directs the CEO of The Program to commit resources toward activities and programs which effectuate these goals especially in partnership with local organizations.

3) Assures that CHH will use best efforts to procure local and minority owned products and

services. CERTIFICATION I Robert P. Schwartz, certify that I am the Secretary 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 9th day of November 2015, in accordance with the Charter and Rules and Regulations of CHH upon proper notice and at which time a quorum was present. DATED the 9th day of November 2015. By_____________________________________ Its_____________________________________

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1402 third avenue, suite 200 T 206 329-7303

seattle, WA 98101 F 206 329-1857

www.capitolhillhousing.org

MEMORANDUM To: CHH Board of Directors From: Chris Persons, CEO Date: September 2015 Re: DRAFT Emeritus Board Position Background This memo sets forth the policy and procedures for the Emeritus Board Position. Program Goal and Outline The Emeritus Board Position allows CHH to retain the strategic leadership of an exiting Board member. There may be different circumstances when the Board would want to maintain a formal ongoing relationship with a former Board member without that individual seated in a full-rights seat. The Emeritus Board Position will retain a seasoned leader on the CHH board. An Emeritus Board member will serve a one-year term and may be re-elected annually. The Emeritus Board (EBM) position is advisory and is provided no voting rights, nor does the attendance of that Board member count toward quorum. The Board member filling the EBM position will have access to all conversations and information the board considers and will be encouraged and expected to engage in those conversations. The EBM has no rights of board membership beyond what is detailed in this policy. An EBM candidate will be presented to the Executive Committee and then to the full Board for election. The EBM position is the 17th Board roster position and only one position is currently provided by this policy.

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CAPITOL HILL HOUSING November 2015

FINANCE AND ASSET MANAGEMENT COMMITTEE REPORT AND MINUTES

The Finance and Asset Management Committee met Tuesday, November 3, 2015. Committee members Drew Porter, Dinah Thoreson (by phone), Frank Alvarado, Sharron O'Donnell and Paige Chapel met with Brad Lange Director of Asset Management, Deena Wallis-York Director of Finance and Jill Fleming Deputy Director and CFO.

The committee reviewed the monthly financial report, year-end forecast for operations and the CHH rolling operating cash projection. The committee discussed the bank resolution 2015-09 to renew and increase our line of credit with Banner Bank and Board Summary. The committee felt comfortable recommending the resolution to the Board for adoption. A preview of the 2016 budget, assumptions and cash flow was discussed. The potential of a second EQII with Key Bank for development costs was discussed. The purchase agreements for the Harvey and Union James properties were discussed.

Prior to the Finance and Asset Management meeting, the State of Washington Auditors Rae Woodside and Anastassia Kavanaugh presented their report to Finance and Asset Management team. In attendance were Drew Porter, Dinah Thoreson (by phone), Frank Alvarado, Paige Chapel and Sharron O'Donnell who met with Deena Wallis-York Director of Finance, Jill Fleming Deputy Director and CFO and Chris Persons CEO. The State of Washington had no findings.

The next Finance and Asset Management committee meeting will be December 8, 2015.

Items in italic have not been changed from the prior Comments and Analysis report.

Comments and Analysis re: September 30, 2015 CHH Blended Balance Sheet

Unrestricted Cash position remained strong at $1.3 million as the end of September and has decreased $8K since December 31, 2014. A payment of $100K to the Board designated LGIP was made during the year. Roofing construction of $115K was made for Park Hill and Devonshire. Management continues to anticipate that cash will be sufficient for 2015 operating needs.

Board Designated Operating Reserve has been restated to show the Board Designated Opportunity Reserve separately in accordance with the adoption of the new reserves policies in February 2015. The total in Board Designated reserves increased $100K which was for the 2014 net asset contribution as directed by the Board.

Land, Buildings, Improvements & Equipment increased by $962K due to work on Hazel Plaza.

Notes Payable have decreased by $1,762 million primarily due to 12th

Avenue Arts $2.163 million pay down on 12

th Avenue Arts note payable from a contribution by the Capitol Hill Foundation. Notes payable increased

by $921K Hazel Plaza to finance work completed.

Net Asset year end forecast by management believes the will at a minimum meet the original cash adjusted income and expense budget of positive net assets of $530K or exceed it. This forecast does not take into consideration the sale of Fire Station 7 which is anticipated to be November 16

th, and will generate $300K in

net asset and cash. The Board Presentation of the balance sheet is presented on the accrual basis following standard generally accepted accounting principles (GAAP). The current net position has increased $1.16 million.

Comments and Analysis re: Year to date September 30, 2015 Blended Operating Statement

Tenant Rent is $22K favorable to budget or .41%.

Vacancy & Concessions is $11K or 5.81% favorable to budget. Earlier in the year a $33K negative adjustment to commercial lease concessions was recorded. Management anticipates that as the commercial tenants occupy the Twelfth Avenue Arts building the commercial lease concessions will not increase. Property Management staff has done tremendous work to meet their budget by focusing on turnovers. Property Management Fees is $38K or 4.11% favorable to budget.

Page: 43

Partnership Management Fees are $(19K) or 12.41% unfavorable this is a timing difference which will be adjusted in the fourth quarter of 2015..

Development Fees/Ecodistrict Revenue is $187K favorable or 15.57% favorable. This includes $200K in developer fees for the commercial portion of the Twelfth Avenue Arts, budgeted for 2014 but not received until January 2015. The fee had been budgeted at $300K in 2014. The fee was reduced due to increases in costs. Additional developer fees of $244K were received in September 2015 and another $75K is anticipated by year end for the AAA (Haines) project.

Other Fees are $(95K) unfavorable and will be less than budgeted in 2015 as the disposition fee for the Tiltsonian of $48K was received in December, 2014.

Other Operating revenue is $30K unfavorable to budget and is anticipated to be a timing difference which will resolve itself 4

th Quarter of 2015.

Grants & Donations are $2.149 million favorable to budget. Neither the grant from City of Seattle nor the expenses were anticipated in the original budget. In June 2015 the Capitol Hill Housing Foundation made an award to Capitol Hill Housing in the amount of $355K. In addition a grant of $2.311 million was received which was primarily used to pay off the note payable for 12

th Ave Arts. In September of 2015 Neighborhood

works awarded Capitol Hill Housing a grant of $90K to assist in the purchase of the two CADA properties, this grant was not anticipated in the budget nor were the fees associated with the purchase anticipated.

Interest Income is favorable by $123K which is interest income earned by the leverage lender and used to

pay the quarterly payment on the 12th Avenue Arts bridge loan.

Other income is favorable to budget $21K and is anticipated to remain favorable for the year.

Vacancy loss for the portfolio was 2.6% for the first nine months of 2015. Vacancy loss for 2014 and 2013 was 3.8% and 2.7%. For budget purposes we assumed vacancy rates ranging from 3-5% depending on the building.

CHH Occupancy Expense is $24K or 10.51 favorable to budget which is a timing difference for some

shared costs in the 12th AA building.

Compliance, Taxes & License is unfavorable $(21K) or 27.68%unfavorable, The variance is due to timing. Real Estate taxes were paid in full yet budgeted spread over the year.

Debt service is unfavorable $(2.234 million) or 152.97% unfavorable which includes the quarterly payments of $20,163 on the 12

th Avenue Arts bridge loan. Payments on the bridge loan were not budgeted in the

operating budget as they are paid from interest income earned by the leverage lender. The interest income was not budgeted and was used to pay the quarterly bridge loan payments. The 12

th Avenue Arts loan of

$2.163 million was paid from capital grants from the Capitol Hill Housing Foundation.

Payroll, Taxes and Benefits is under budget by $55K or 1.63% as the 2015 budget included several new FTEs which were budgeted to be hired in the first of the year but not hired until later. As staff are hired the favorable variance will continue to decrease. An unbudgeted FTE is being added to the finance team. The costs for the new position are offset by delayed hiring and changes in staffing in other departments due to the recent re-organization. Administrative staffing is projected to be $60K favorable at year end. Property management site staff have been unfavorable and is anticipated to continue to be unfavorable for the rest of the year.

Page: 44

Operating Surplus (Deficit) B4

Reserves

1,273,407 1,005,525 267,882 26.64% 985,060 (288,347)

CHH Blended Income Statement 2015

January 1, 2015 to September 30, 2015

Year to Year to Date Year to Date Date Budget Variance Budget Actual Budget Variance Pct Total Budget Remaining

Tenant Rent 5,487,412 5,464,755 22,657 0.41% 7,286,340 1,798,928

Commercial Rent & NNN 1,024,543 1,025,279 (735) (0.07)% 1,367,038 342,495

Parking, Laundry & Other 156,569 156,252 318 0.20% 208,335 51,766 Vacancy & Concessions (181,522) (192,719) 11,197 (5.81)% (256,959) (75,437)

Total Tenant Revenue 6,487,002 6,453,566 33,436 0.52% 8,604,754 2,117,752

Property Management Fees 971,565 933,181 38,384 4.11% 1,244,241 272,676

Partnership Management Fees 136,997 156,411 (19,414) (12.41)% 208,548 71,551 Development Fees/EcoDistrict Revenue 1,384,702 1,198,072 186,630 15.57% 1,233,661 (151,041)

Acctg, Leasing & Compliance Fees 495,359 536,523 (41,164) (7.67)% 715,364 220,005

Other Fees 0 95,121 (95,121) (100.00)% 107,995 107,995

Other Operating Revenue 0 30,000 (30,000) (100.00)% 40,000 40,000

Total Other Operating Revenue 2,988,622 2,949,308 39,314 1.33% 3,549,809 561,187

Grants & Donations 2,505,199 355,875 2,149,324 603.95% 474,500 (2,030,699)

Interest Income 123,407 0 123,407 0.00% 0 (123,407)

Other Income 22,418 1,554 20,864 1,342.57% 2,072 (20,346)

Total Other Revenue 2,651,024 357,429 2,293,595 641.69% 476,572 (2,174,452)

Total Revenue 12,126,649 9,760,303 2,366,346 24.24% 12,631,135 504,486

Operating Expenses

Accounting, Audit & Legal 250,701 278,353 27,652 9.93% 371,137

Administrative Expenses 213,397 214,272 875 0.40% 285,695 72,298

Bad Debt 37,795 27,855 (9,939) (35.68)% 37,140 (655)

Board Expense 3,215 4,350 1,135 26.09% 5,800 2,585

CHH Occupancy Expense 205,043 229,149 24,106 10.51% 305,532 100,489

Compliance, Taxes & License 98,935 77,483 (21,452) (27.68)% 141,971 43,036

Consulting 40,021 27,547 (12,474) (45.28)% 36,730 (3,291)

Debt Service 3,694,359 1,460,353 (2,234,007) (152.97)% 1,892,264 (1,802,095)

Insurance 197,488 192,550 (4,938) (2.56)% 256,734 59,246

Leasing/Compliance Expense 164,512 163,970 (542) (0.33)% 218,627 54,115

Miscellaneous Financial Expense 0 9,045 9,045 100.00% 12,060 12,060

Other Operating Expense 108 2,250 2,142 95.20% 3,000 2,892

Payroll, Taxes and Benefits 3,309,959 3,364,844 54,885 1.63% 4,486,459 1,176,500

Partnership Mgmt Fee Expense 70,125 88,973 18,848 21.18% 118,631 48,506 Property Mgmt Fee Expense 619,324 637,141 17,817 2.79% 849,521 230,197

Repair and Maintenance 1,043,860 1,046,331 2,471 0.23% 1,385,108 341,248

Technology 66,194 84,946 18,752 22.07% 113,262 47,068

Training, Dues, Subscriptions 61,857 67,123 5,266 7.84% 88,748 26,891 Utilities 776,349 778,243 1,893 0.24% 1,037,656 261,307

Total Expenses 10,853,241 8,754,778 (2,098,464) (23.97)% 11,646,075 792,834

Page: 45

Year to Date Actual

Year to

Date

Budget

Year to Date

Budget

Variance

Variance Pct

Total Budget

Budget Remaining

Replacement Reserve (323,226) (320,930) (2,296) 0.71% (427,907) (104,681)

Operating Reserve (18,180) (17,280) (900) 5.21% (23,040) (4,860)

Other Reserve (2,700) (2,700) 0 0.00% (3,600) (900)

Total Reserve Contributions (344,106) (340,910) (3,196) 0.94% (454,547) (110,441)

Net Income (Loss) 929,301 664,615 264,686 39.82% 530,513 (398,788)

This is a modified income statement to reflect cash transactions for debt service. CHH Blended Income Statement Page 2

Page: 46

Capitol Hill Housing Balance Sheet

M:\Finance & Accounting\Board reports\2015\September reports for the November 2015 meeting\9.30.2015 balance sheet.xlsx10/30/2015

12.31.2014 Board Current Year Presentation

through Prior Month Format Based on 12.31.2013 12.31.2012 Variance from

9.30.2015 8.31.2015 Audited Numbers Audited Audited year end

Assets

Unrestricted Cash 1,302,457 1,046,335 1,311,115 1,360,596 1,226,012 (8,658)

Accounts Receivable 136,964 135,329 180,173 59,063 50,806 (43,209)

Prepaids & Other Current Assets 127,142 189,403 151,459 206,923 110,523 (24,317)

Contributions/Grants Receivable 15,000 15,000 95,124 32,250 46,125 (80,124) Due from Affiliates 4,300,565 4,423,609 5,051,801 3,185,542 2,801,124 (751,236)

Board Designated Operating Reserve 1,100,987 1,100,814 1,186,145 816,483 615,391 (85,158)

Board Designated Opportunity Reserve 186,500 186,500 - -

186,500

Restricted Cash 4,551,759 4,452,018 4,095,433 3,761,648 3,715,726 456,326

Notes Receivable from Affiliates 16,393,532 16,393,803 16,395,903 16,403,826 16,480,020 (2,371) Land 12,634,826 12,634,826 12,634,826 13,576,257 13,576,257 -

Buildings, Improvements & Equipment 59,894,911 59,864,944 58,932,348 56,713,903 53,760,686 962,563

Accumulated Depreciation (30,989,350) (30,840,233) (29,626,713) (26,859,942) (23,470,745) (1,362,637) Lease Receivable 932,136 932,136 932,136 951,476 983,031 -

Investment in LPs/LLCs 660,566 660,566 660,566 316,764 316,934 -

Other Assets 192,701 194,374 207,765 172,221 192,119 (15,064)

Total Assets 71,440,696 71,389,424 72,208,084 70,697,010 70,404,009 (767,388)

3,110,146

Liabilities

Notes Payable 43,823,580 43,867,318 45,585,641 46,822,225 48,357,295 (1,762,061) Accrued Interest Payable 3,924,561 3,924,561 3,943,677 3,730,045 3,530,973 (19,116)

Accounts Payable & Accrued Liabilities 2,959,643 2,930,187 3,168,439 2,343,484 2,844,920 (208,796)

Tenant Security Deposit Liability 496,127 493,345 434,290 391,750 329,270 61,837

Total Liabilities 51,203,911 51,215,411 53,132,047 53,287,507 55,062,458 (1,928,136)

Net Position 20,236,785 20,174,013 19,076,037 17,409,503 15,341,551 (1,160,748)

Total Liabilities and Net Assets 71,440,696 71,389,424 72,208,084 70,697,010 70,404,009 767,388 10.21.2015

Page: 47

CHH

CASK IN BANK

FOR THE MONTH ENDING: SEPT 2015

CHH

CASH IN BANK

Bank __________ CHH Blended Component UnitTypeBalance

Chase Lamed Reserves 54.637 Chase 412 Reserves 94.332 Chase Holden Vista Security Deposit . Total Chase 148.989 KevBank Capitol Hill Housina Security Deposit 270.696 KevBank Carilol Hill Housinn - RnundFamilies Restricted Savinas 55.118 KevBank Hazel Plaza Reserves 118.786 KevBank Hazel Plaza Security Deposit 2.592 KevBank Larned Security Deposit 14.642 KevBank Bvron Wetmore Reserves 36.964 KevBank Bvron Wetmore Security Deposit 7.775 Kev Bank 412 Security Deposit 4651 KevBank Holden Vista Reserves 68 358 KevBank Holden Vista Security Deposit 3 595 KevBank Marv Ruth Manor Reserves 200 346 KevBank Marv Ruth Manor Security Deoosit 5 998 Kev8ank E.ISH Security Deoosit 10 969 KevBank Flemina Ants LP Securitv Deoosit 20 767 Kev8ank Gilman Court I P Reserves 84 138 Kev8ank Gilman Court LP Securitv Deoosit 20 68? KevBank Villa Apts LP Reserves 140 107 KevBank Villa Apts LP Securitv Deoosit 4? 138 KevBank 18th Ave Apartments Securitv Deoosit 1 975 KevBank Ponderosa Reserves 353.952 KevBank Ponderosa Securitv Deposit 3 570 KevBank 12th Avenue Arts Master Tenant LLC Security Deposit 67 588 Total KevBank 1,535,352

Banner Bemeva Reserves 14 837 Banner Bemeva Securitv Deposit

8anner Seneca Reserves 753 593 8anner Seneca Securitv Deoosit 19496 Total Banner 287.925

LGIP Capitol Hill Housino Reserves 2.277.822 Total LGIP 2.277,822

Opoenheimer E.ISH Escrow 36.057 Oooenheimer EJSH Reserves 105.337 Oooenheimer Marv Ruth Manor Farrow 11.270 Total Oooenheimer 152,664 US Bank 18th Ave Apartments Reserves 105.428 Total USBank 105,428

BofA Flemina Acts LP Reserves 43.598 BofA Seneca Reserves

Total BofA 43,598 Total Restricted • CHH Blended Components 4,551,759

LGIP Capitol'Hill Housino Board Designated Reserves 1.287.487 Total Deelanated 1.287,487

Union Bank Capitol Hill Housino EQII 94.562 Total Union Bank 94.582 Chase Holden Vista (Quantum! Ooeratina Checkina 8 972 Total Chase 8.972 SlerlinaBank Holden Vista (Quantum) Savinas

Total SterllnaBank .

KevBank Capitol Hill Housino M/M Savinos 3011 KevBank Cacitol Hill Housino Ooeratina Checkina 353 067 KevBank Capitol Hill Dev. Assoc Ooeratina Checkina 7 046 KevBank Cacitol Hill Real Estate Mamt Services Ooeratina Checkina 51.222 KevBank Hazel Plaza . Ooeratina Checkino 33 625 KevBank Lamed Ooeratina Checkino 43331 KevBank Bvron Wetmore Ooeratina Checkino • 4296 KevBank 412 Ooeratina Checkino 70 947 KevBank Holden Vista Ooeratina Checkina 13787 KevBank Marv Ruth Manor Ooeratina Checkina 77 147 KevBank E.ISH Ooeratina Checkina 11 854 KevBank Flemina Acts LP Ooeratina Checkina 71 748 KevBank Gilman Court LP Ooeratina Checkina 19.628 KevBank Villa ADLS I P Ooeratina Checkina 124.774 KevBank 18lhAve Apartments Oneratina Checkina 15.781 KevBank Ponderosa Ooeratina Checkina 66.209 KevBank Haines Ooeratina Checkina _ KevBank 12th Ave Arts Develooment Ooeratina Checkina 62.739 KevBank 12AA Master Tenant LLC Ooeratina Checkina 117.361 Total KevBank 997,573

Cash Various Pettv Cash-CHHIP 2.200 Total Pettv Cash 2.200

Banner Bemeva Ooeratina Checkina 5.574 Banner Seneca Ooeratina Checkina 193.584 Banner Hazel Plaza Construction

Total Banner 199.158

Total Unrestricted - CHH Blended Components 1.302.465 Total All Cash - CHH Blended Components 7,141,712

Page: 48

FOR THE MONTH ENDING: SEPT 2015

Bank __________ ______ Discrete Component Unit ________ ___________________ Type ___________________ ____ Balance

Chase Harrison Reserves 139 225

Chase Oleta Reserves 142 590

Chase Woodland ParkAve LLC Reserves 137 657

Chase AAA Security Deoosit 5.475

Chase AAA Reserves 611.654 Total Chase 1.036,601

KevBank Broadwav & Pine Reserves 267.330

KevBank Broadwav & Pine Security Deoosit 23.744

KevBank El Nor LP Reserves 706.051

KevBank El Nor LP CaDital Reserves 155.193

KevBank El Nor LP Security Deposit 8 346

KevBank Harrison Security Deoosit 18 526

KevBank Helen VAntsI 1C Reserves 374.197

KevBank Helen VAntsI 1C Securitv Deoosit 7 038

KevBank Holidav Acts Securitv Deoosit 20642

KevBank Jefferson & 12th Reserves 270 910

KevBank Jefferson & 12th Securitv Deoosit 39 327

KevBank Oleta Securitv Deoosit 22 664

KevBank Pantaaes Acts LLC Securitv Deoosit 27 523

KevBank Sllvlan Securitv Deoosit 5 592

KevBank SOPI/Unitv Villaoe Reserves 171 525

Kev8ank SOPI / Unitv Villaoe (Quantum) Securitv Deoosit 13 650

Kev8ank Woodland Park Ave LLC Securitv Deoosit 12 698

KevBank 12th Avenue Arts Housino Securitv Deoosit 79 424

Kev8ank 12th Avenue Arts Housino Reserves 526 110

Kev8ank 12th Avenue Arts Associates LLC 12AA HE DC CDE Controlled Account

KevBank 12th Avenue Arts Associates LLC 12AA Kev CDE Controlled Account 0

KevBank 12th Avenue Arts Associates LLC 12AA HEDC Fee Reserve Account 250 516

KevBank 12th Avenue Arts Associates LLC 12AA Kev Fee Reserve Account 395 183

KevBank Sauire Park Plaza Securitv Deoosit 51 349

KevBank Sauire Park Plaza Reserves 13 080 Total KevBank 3.447.539

Bank of NY Mellon Trust Co 12th Avenue Arts Associates LLC 12AA 108 Loan Guaranteed Loan Funds Account 23.506

Bank of NY Mellon Trust Co 12th Avenue Arts Associates LLC Escrow 33.689 Total Bank of NY Mellon Trust Co 57.195

UnionBank Holidav Reserves 170.434 Total UnionBank 170,434

US Sank Pantaaes Acts LLC Reserves 670.272

LIS Bank Silvian Reserves 456.928 Total USBank 1,127.200

Total Restricted - Discrete Comoonents 5,838.968

Chase AAA Ooeratna Checkino 41,724 Total Chase 41,724

KevBank FI NnrIP Ooeratina Checkina 162.080

KevBank Harrison Ooeratna Checkina 27.291

KevBank Oleta Ooeratna Checkina 25910

KevBank Helen VADts LLC Ooeratina Checkina 21.006

KevBank Pantaaes Acts LLC Ooeratna Checkina 54 690

KevBank Rilvian Ooeratina Checkina 99.533

KevBank Broadwav & Pine Ooeratina Checkina 42 614

KevBank Woodland ParkAve LLC Ooeratina Checkina 8 355

KevBank Holidav Acts Ooeratna Checkina 37.238

KevBank SOPI / Unitv Villaoe IQuantum) Ooeratna Checkina 70 822

KevBank Jefferson & 12th Conslmction 241

KevBank Jefferson & 12th Ooeratna Checkina 81 524

KevBank Twelfth Avenue Arts Res Ooeratna Checkina 344 699

KevBank Twelfth Avenue Arts Housina LLP 12AA Housina-Construction Checkina 201 427

KevBank 12th Avenue Arts Associates LLC 12AA Commercial-Construction Oka 16 192

KevBank 12th Avenue Arts Associates LLC 12AA Commercial Ooeratina (Debt Service) 13? 253

KevBank Rauire Park Plaza Ooeratna Checkina 144 66?

KevBank Union and 24th Ooeratna Checkina . Total KevBank 1,470.536

Total Unrestricted • Discrete Components Total All Cash • Discrete Components Total All Cash • CHH Blended Components Total All

Cash

1,512,260

7,351,228

7,141.712

14.492,939

TOTALS BY BANK

Key Bank S 7,450,999

Chase $ 1,236,266

Banner 3 487,084

USBank $ 1,232,628

Union Bank $ 264,996

Bank of America $ 43,598

LGIP $ 3,666,309

Other and Petty $ 212,059 TOTAL CASH $ 14,492,939

Page: 49

Income YTD Op expenses B4 Debt

2015 Op

cost per 2015 2014

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

Holden Vista 16 113,622 125,037 -9% 137,753 106,245 -30% 8,610 14.4% 5.7%

Melrose 30 164,888 173,339 -5% 153,565 142,554 -8% 5,119 8.9% 4.8%

412 Apts 12 125,877 131,837 -5% 98,147 107,980 9% 8,179 7.6% 8.8%

Byron Wetmore 12 90,358 93,899 -4% 85,009 84,125 -1% 7,084 7.0% 4.4%

Fleming 36 224,301 220,483 2% 145,430 146,804 1% 4,040 5.0% 7.7%

Casa di Cinque 5 47,112 47,624 -1% 27,433 35,639 23% 5,487 4.9% 0.0%

Burke Gilman Gardens 15 129,977 130,784 -1% 78,552 100,534 22% 5,237 4.6% 3.2%

Park Hill 30 268,019 271,411 -1% 185,496 193,688 4% 6,183 4.4% 2.1%

Broadway 5 42,589 44,038 -3% 22,837 28,270 19% 4,567 3.4% 9.1%

Villa 62 525,353 509,569 3% 291,701 307,615 5% 4,705 3.1% 3.4%

Hazel Plaza 16 159,930 160,325 0% 102,369 82,999 -23% 6,398 3.0% 7.7%

Brewster 35 214,160 209,907 2% 134,419 127,795 -5% 3,841 2.6% 3.4%

Larned 33 184,546 186,025 -1% 160,881 167,272 4% 4,875 2.6% 3.7%

Fredonia 12 208,272 197,776 5% 121,717 107,081 -14% 10,143 2.5% 0.8%

Gale Place 24 214,583 202,923 6% 174,658 166,680 -5% 7,277 2.4% 2.4%

John Carney 27 157,457 154,935 2% 105,444 111,765 6% 3,905 2.3% 4.9%

Miller Park 12 101,887 103,760 -2% 72,539 76,793 6% 6,045 2.2% 8.5%

410 Apts 6 40,005 39,002 3% 24,888 27,543 10% 4,148 1.8% 0.0%

Boylston Howell 30 222,280 219,929 1% 174,021 168,627 -3% 5,801 1.7% 1.0%

Bremer 49 310,240 302,307 3% 177,159 194,632 9% 3,615 1.4% 1.6%

Devonshire 62 412,209 401,047 3% 301,658 287,645 -5% 4,865 1.3% 2.9%

Lincoln Court 29 200,901 199,618 1% 118,615 116,102 -2% 4,090 1.3% 3.4%

Mary Ruth Manor 20 185,359 178,981 4% 120,347 130,644 8% 6,017 1.3% 4.9%

Elizabeth James 60 447,434 432,061 4% 282,209 301,069 6% 4,703 1.1% 6.1%

Ponderosa 23 152,339 147,121 4% 111,622 135,048 17% 4,853 1.0% 5.7%

Centennial 30 232,497 220,731 5% 110,987 126,313 12% 3,700 0.7% 3.1%

Gilman Court 25 216,115 209,645 3% 163,084 157,983 -3% 6,523 0.7% 0.9%

18 th Avenue 9 88,338 85,963 3% 45,096 46,732 4% 5,011 0.2% 0.0%

Berneva 12 79,290 77,056 3% 55,279 65,842 16% 4,607 0.1% 2.7%

Maxwell 4 31,933 30,860 3% 18,514 24,560 25% 4,629 0.0% 0.0%

Seneca 32 243,946 237,641 3% 166,836 178,366 6% 5,214 0.0% 2.6%

5,835,818 5,745,632 3,968,268 4,054,946

Discrete Component Units:

Squire Park Plaza 60 767,187 833,606 -8% 365,842 278,600 31% 6,097 8.2% 2.5%

Unity Village 30 204,665 208,648 -2% 154,167 160,765 4% 5,139 2.8% 2.2%

Holiday 30 246,993 240,980 2% 125,410 138,673 10% 4,180 2.6% 6.2%

Silvian 32 272,223 270,004 1% 181,675 181,973 0% 5,677 2.6% 3.6%

Haines (new) 30 219,966 217,317 1% 194,573 156,786 -24% 6,486 2.3% 0.0%

The Jefferson 40 369,335 363,959 1% 211,530 197,774 -7% 5,288 2.3% 1.0%

Oleta 34 228,252 221,757 3% 128,793 139,367 8% 3,788 2.2% 8.2%

Pantages 49 371,729 373,025 0% 385,997 262,996 -47% 7,877 1.6% 3.8%

12 th Avenue Arts 88 717,793 722,260 -1% 354,301 350,112 -1% 4,026 1.4% 3.6%

Helen V 38 303,972 303,721 0% 175,257 178,696 2% 4,612 1.0% 1.9%

Fremont Solstice 18 147,948 151,386 -2% 112,365 107,207 -5% 6,243 0.7% 7.4%

Broadway Crossing 44 320,427 314,732 2% 229,685 243,252 6% 5,220 0.6% 4.8%

El Nor 55 424,449 415,013 2% 290,778 307,457 5% 5,287 0.3% 2.6%

Harrison at 15th 19 247,316 245,138 1% 164,554 147,682 -11% 8,661 0.1% 2.9%

1340 4,842,254 4,881,546

3,074,926 2,851,339

{1} $110,000 in reserves approved for October distribution - exterior paint completed at Pantages

{1}

2015

CF after

reserve

s

(45,391)

(17,450)

16,018

(5,475)

7,213

15,528

22,197

33,597

9,175

63,423

(4,060)

32,628

15,786

29,835

9,455

18,622

4,510

7,614

(19,446)

51,482

22,881

(2,346)

20,101

11,468

24,104

26,667

2,088

2,589

13,213

8,853

29,588

404,467

148,052

40,660

24,790

(1,205)

14,798

4,578

15,102

(97,154)

216,152

4,220

(10,777)

37,130

34,650

(14,178)

416,818

M:\Finance & Accounting\Board reports\2015\September reports for the November 2015 meeting\Copy of 9-15-Finance dashboard.xls

Capitol Hill Housing

Finance Dashboard Year to Date at

September 30, 2015

Page: 50

CHH Board Authorization Line of Credit Banner Bank Resolution 2015 -11

Purpose: Renew annual Line of Credit at Banner Bank with an increase in line to $500,000 from

$250,000. All terms remain the same including interest cost and line fee based on amount of

the loan.


o Does this Resolution change the Charter or Rules and Regulations? Yes NO


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: The line of credit at Banner Bank is up for its annual renewal.

We recommend increasing the line from $250,000 to $500,000. The annual cost to the

organization for this line increase is $1,250 in fees. Interest remains at prime and only charged

for dollars advanced (used).

Organizational requirements of resolution: The Board of Directors approves loans and the Finance

and Asset Management Committee recommend financial resolutions to the Board after review.

Financial cost of the resolution: The fees associated with the increase in the line of credit are

$1,250 annually. The total maximum fees are $2,500. Interest is charged at prime only if we

advance money. In 2016 it is anticipated that cash management will be a priority since no

major development fees from projects are anticipated. Management recommends that we

increase our line of credit to ensure we have consistent cash to meet our obligations. In 2015

the line was used for $200K advance. It was paid in full in October 2015.

Pros: Ensures management access to funds to ensure all obligations are met timely. If cash flow

provides sufficient funds the line does not need to be used. If needed interest is only charged

on funds used.

Con: Extra cost associated with the interest charged on line of credit. Management has less

pressure to manage cash as these funds are available for use.

Follow-up or continued reporting requirements to the Board: When the line of credit instrument

comes up for annual review, or sooner if we seek a change in terms, the Finance and Asset

Committee will review terms and authorize use of the loan funds for cash management of

Capital Hill Housing.

Page: 51

ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION

RESOLUTION NO. 2015-11

AUTHORIZATION OF LINE OF CREDIT FROM BANNER BANK

WHEREAS, Capitol Hill Housing Improvement Program (the Program) is a public corporation

organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal Code Ch. 3.110. As such, it is a political subdivision of the State with an area of operation focused on in the Capitol Hill community in the City of Seattle; and

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

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

WHEREAS, it is deemed prudent financial practice to have funds available to cover potential

short term operational needs and cash flow timing differences; and WHEREAS, the Program has obtained a Line of Credit Loan from a commercial bank from time to

time; and

WHEREAS, Article VII, Section 3 of the Program Charter states that “Prior authorization or concurrence of the Board by resolution shall be necessary for … (b) The contracting of debts, issuance of notes, debentures or bonds, and the mortgaging or pledging of corporate assets to secure the same”;

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

Program as follows: (1) Two CHH board officers are authorized and directed to sign the Promissory Note and other

necessary documents. The basic loan terms proposed are as follows:

Borrower: Capitol Hill Housing, a public corporation organized as a political subdivision of the State of Washington with an area of operation focused on the Capitol Hill community in the City of Seattle and whose liabilities shall be satisfied exclusively form the assets and properties of the corporation.

Term: Approximately One Year with an annual renewal

Amount: $500,000

Collateral: None

Guarantors: None

Loan Fee: No more than $2,500 or 1/2 per cent

Interest Rate: Prime rate

Page: 52

Payments: Interest due monthly, principal balance and any outstanding interest due on maturity date.

CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (“the Program”) and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of the Program held on the 9th day of November, 2015 in accordance with the Charter and Rules and Regulations of the Program upon proper notice and at which time a quorum was present. DATED the 9th Day of November, 2015. By______________________________________ Its_____________________________________

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Page: 54

we will be meeting at the a&a room at seattle …...that deal closed late last year. in the ......

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