October 2015 Capitol Hill Housing Board Meeting Keys and Addenda Reminder: Dinner begins at 5:45. The meeting starts promptly at 6 PM. We recognize that staff must improve the process by which resolutions are presented to the board. To that end, we are introducing a new document that we have adapted from Seattle City Council. In short, this form allows staff to provide background and context for resolutions in a systematic way. We use it tonight for Resolution 2015-08. Consent Agenda, Disclosures and recusals: The consent agenda including September 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 Omnivorous results and other matters. Presentation and Discussion: EcoDistrict, Sustainability and Community Development Joel Sisolak and Chris Persons will lead a discussion on the current activities of the EcoDistrict, our sustainability efforts and current thinking regarding the intersection and overlap between this work and the community development work being considered as a part of the community development partnership model. (See Ecodistrict document and CDP Document) AfricaTown CHH has a long history of working in the Central District. In recent months that involvement has grown. The acquisition and development of Liberty Bank, the acquisition and management of Squire Park Plaza and the management and pending acquisition of Union-James and Harvey have led to a significant deepening of involvement in this community. Further, as the local CDC in the CD has waned in capacity, we have begun working with local organizations. A few months ago we were asked if CHH supported AfricaTown. Subsequently, AfricaTown leader Wyking Garrett was invited to present AfrikaTown to the CHH board of directors. Tonight we want to take up the question: do we support AfricaTown. Attached please find additional information about the history and goals of AfricaTown. 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. Rob Schwartz, Board Secretary and Miranda Vargas CHH Volunteer Coordinator will make a presentation to the board and seek volunteers for the NEAR program, a job mentoring program for CHH residents piloted successfully by a Seattle University executive leadership class that Rob participated in.
46
Embed
October 2015 - Capitol Hill Housingcapitolhillhousing.org/downloads/board/packets/2015-10-CHH-Board-Packet.pdfOctober 2015 Capitol Hill Housing Board Meeting Keys and Addenda Reminder:
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
October 2015 Capitol Hill Housing Board Meeting Keys and Addenda
Reminder: Dinner begins at 5:45. The meeting starts promptly at 6 PM. We recognize that staff must improve the process by which resolutions are presented to the board. To that end, we are introducing a new document that we have adapted from Seattle City Council. In short, this form allows staff to provide background and context for resolutions in a systematic way. We use it tonight for Resolution 2015-08. Consent Agenda, Disclosures and recusals: The consent agenda including September 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 Omnivorous results and other matters. Presentation and Discussion: EcoDistrict, Sustainability and Community Development Joel Sisolak and Chris Persons will lead a discussion on the current activities of the EcoDistrict, our sustainability efforts and current thinking regarding the intersection and overlap between this work and the community development work being considered as a part of the community development partnership model. (See Ecodistrict document and CDP Document) AfricaTown CHH has a long history of working in the Central District. In recent months that involvement has grown. The acquisition and development of Liberty Bank, the acquisition and management of Squire Park Plaza and the management and pending acquisition of Union-James and Harvey have led to a significant deepening of involvement in this community. Further, as the local CDC in the CD has waned in capacity, we have begun working with local organizations. A few months ago we were asked if CHH supported AfricaTown. Subsequently, AfricaTown leader Wyking Garrett was invited to present AfrikaTown to the CHH board of directors. Tonight we want to take up the question: do we support AfricaTown. Attached please find additional information about the history and goals of AfricaTown. 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. Rob Schwartz, Board Secretary and Miranda Vargas CHH Volunteer Coordinator will make a presentation to the board and seek volunteers for the NEAR program, a job mentoring program for CHH residents piloted successfully by a Seattle University executive leadership class that Rob participated in.
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. Mayoral appointment. As you know, the Mayor has authority to select three members of our board and has identified a candidate to fill the seat currently held by Rob Schwartz. Rob’s renewal has been with the City since April. Historically (at least in the last 8 years) the Mayor’s office has routinely selected candidates that we have presented to them. If Rob is not selected for this seat, we will move him into a CHH seat. We are also presenting Frank Alvarado to the Mayor’s office as an alternative. Frank has served on the Finance and Asset Management Committee for a year and has been involved in CHH events. His full resume is attached. We want to update the Board on a current public records request that we are fulfilling. Finance: The finance committee presents its regular report and dashboard through August 2015 and will outline budget assumptions and process for the upcoming months. We will also present a resolution to the board for their consideration and potential vote. This resolution changes the Rules and Regulations allowing the CEO and Deputy Director to establish banking relationships. CHH maintains around 140 separate bank accounts. Currently, per the Rules and Regulations, all bank accounts must be approved by the Board treasurer. This vestige of management is outdated considering our size and sophistication of our financial management. Asset Management and Acquisitions: Staff will update the Board on the Acquisition of Union-James and Harvey. 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. September Board Minutes c. Tenant Complaint Resolution Log (None) 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 (at meeting)
3. CDP Overview and EcoDistrict Activities 4. AfricaTown Background (handout at meeting) 5. NEAR program information 6. Memo to Board regarding Board emeritus seat 7. Frank Alvarado Resume
Upcoming Meetings and Events Please let Chris or Michael Know if you’d like additional information on any event or meeting. Monday, Oct 12
CHH Board Meeting Monday, Oct 26 CHH Executive Committee Tuesday, Oct 27 CHH Foundation Board Meeting
8. August 2015 Finance Report and Statements and Asset Management Report 9. Resolution 2015-08: Amendment of the CHH Rules And Regulations
1. Resident Engagement (Abers) 2. NEAR: Job mentoring program (Vargas, Schwartz) Attachment 5 3. Proposed Board emeritus seat Attachment 6 4. Mayoral appointment and executive committee 5. New Board Candidate Attachment 7 6. Public records request
7:15 Finance Report (O’Donnell, Wallis)
1. Financial summary, cash management report: August 2015 Attachment 8 2. Resolution 2015-08: Amendment of the CHH Rules And Regulations
Article IV Section 2 Regarding Bank Accounts Attachment 9 3. Budget timeline and assumptions
7:20 Asset Management and Acquisitions (Lange, Persons)
1. Update on Union James and Harvey 7:25 Real Estate Development Discussion (Persons, Elkerton)
1. Verbal update 7:30 Adjourn (Quaintance)
THIS PAGE INTENTIONALLY LEFT BLANK
CAPITOL HILL HOUSING REGULAR MEETING October 12th 2015
6:00 – 7:45 PM Regular Meeting 12th Ave Arts Pike Pine Meeting Room
1620 12th Avenue, Seattle
CONSENT ITEMS
MINUTES AND REPORTS
1. August 2015 Board Meeting Minutes (attached for adoption) 2. Committee Reports and Minutes (attached for acceptance) 3. Tenant Communications Tracking (None) DONATIONS, TRANSACTIONS OVER $10,000 OR 1-YEAR, AGREEMENTS WITH PUBLIC ENTITIES
Blended
Date Contract with: Amount Purpose
July 14, 2015 NW Seed $15,000.00 CHH - Community solar research, pro forma development, implementation plan
GP ACTIVITIES (information only)
Discrete
Date Contract With: Amount Purpose
September 1, 2015 Firepower $9,000.00 12AA - Service contract for Siemens XLS
Fire Alarm System
September 22, 2015 Alba Pro Painting $97,882.00 SPP- exterior painting of wood
Members Present: Alice Quaintance, Heyward Watson, Cathy Hillenbrand, Bob Fikso, Rachel Ben-Shmuel,
Robert Schwartz, Dana Behar, Liz Dunn, Paul Breckenridge.
Absent: Michael Malone, Matt Rowe, B.G. Nabors-Glass, Paige Chapel, Drew Porter, Sharron O’Donnell.
Staff Present: Chris Persons, Jill Fleming, Michael Seiwerath, Deena Wallis, Brad Lange, Billie Abers, Katie Porter,
Kirk McClain (taking Minutes), Anne Hurt.
Call to Order: The September 15th regular meeting of the Capitol Hill Housing board of Directors was called to order by Chair, Alice Quaintance at 6:02 pm when a quorum was reached. A motion to approve the Consent Agenda and the August draft Minutes was made by Rachel Ben-Shmuel, seconded and passed unanimously. Disclosures and recusals: No disclosures or recusals were made. Public Comment No members of the public were present. Foundation Update Omnivorous Ticket sales are on pace with previous year. CHH will hit budget goal but is down from last year. 12 Avenue Arts Awards Round Up – CHH won the 2015 ULI Global Excellence Award to be presented in October. 12th Ave Arts has also been nominated for three other awards:
1. People’s choice award from City of Seattle for excellence in Urban Design, 2. Affordable Housing Finance Magazine – 12th Ave Arts is a finalist for best Urban Project which also
makes 12th Ave Arts a finalist for best facility in the nation. 3. SMR Architects has nominated 12th Ave Arts for Seattle AIA Honor Awards
Presentation and Discussion CHH Real Estate Development and Acquisition Policy. Chris distributed an updated Real Estate Acquisition Policy to the Board and explained changes he made to the policy. A motion to approve Real Estate Development and Acquisition Policy was made by Rob Schwartz, seconded and passed unanimously. Strategic Initiatives - Chris also reviewed the Strategic Vision Framework adopted in July 2015 and introduced the six strategic initiatives developed by staff. These included the Community Development Partners concept as well as various ways to sustain affordable rents for future projects without using tax-credits or public money. Strategic Planning next steps: build out tasks beneath each initiative, develop work plan, and quarterly tracking.
Executive Committee and Board Resident Engagement and Board Process - Billie Abers reported on the progress to fill the Resident Board position. Seventeen candidates submitted applications. Three candidates were not eligible. Of the 14 remaining candidates, five were selected to be interviewed by the CEO and Board Chair. Finance Report FAM – Deena reported on the Finance and Asset Management committee meeting. The Finance report indicates that CHH’s vacancy loss rate year to date was 2.9% which is better than industry average. The committee also reviewed the cash forecast for 2016. A Motion to accept Finance and Asset Management Report was made, seconded and passed unanimously. Asset Management and Acquisitions - Harvey process and review of language from August motion. Chris discussed language of the motion. Based on conversations with Seattle Office of Housing the resolution should be amended to read that CHH staff is authorized to enter into MOU or purchase and sale agreements with CADA. New development policies will guide CHH on how to proceed forward. Motion to amend resolution 2015-08 to give Chris authority to enter into a MOU or purchase and sale agreements with CADA was made, seconded and passed unanimously. Brad reported that CHH, Environmental Works and Rafn recently toured the Harvey property. Katie Porter also attended the tour. CHH anticipates a signed agreement/MOU in October with development and pricing options from Environmental Works and Rafn. Real Estate Development Discussion - Katie Porter reported that CHH closed on construction financing for the Haines Apartments in September 2014 and converted to permanent financing in September 2015. CHH currently has 2 pipeline project applications with the City of Seattle and the State. Chris reported that he and Greg Elkerton had been in negotiations with Gerding Edlen about our MOU with them. We are currently working through fee-split negotiation and a completion schedule. Gerding Edlen has provided CHH with a letter of intent indicating our selection as their partner. Meeting was adjourned at 7:15PM Attested, _______________________________ Robert P. Schwartz, Secretary September 15, 2015
Property Management Committee Members: Rob Schwartz (Chair), Heyward Watson, Mitchell Belcher, Chasten Fulbright and Kristin Ryan Staff: Billie Abers, Katrina McMillian
October 2015
Property Management Committee members, Rob Schwartz (Chair), Heyward Watson, met by phone with Billie Abers, Director of Property Management and Katrina McMillian, Senior Portfolio Manager, on October 6, 2015. The committee reviewed the report and discussed current property management activities and policies. Capital Projects—current The interior painting of the Seneca is complete. We are in the process of getting proposals for common area flooring. The fire alarm system upgrade at the Helen V has been pushed back to mid-October due to permitting. The bids for the installation of ductless heat pumps at the Brewster are in and contracts signed. Work should begin in late October. Resident Services
In September Resident Services provided 39 Households with direct one-on-one services.
Distributed $2658 in rental assistance.
Held 11 community events
Assisted 13 residents with registering to vote and had over 100 households complete “pledge to vote” cards for the upcoming general election
Conducted flu shot drives at the El Nor and Elizabeth James House and provided shots to 23 residents
Provided 8 residents with financial education
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, we are waiting for HUD approval to take over management.
Building Operations From the Finance report: Year to date August, 2015 Blended Operating Statement. Vacancy loss for the portfolio was 2.7% for the first eight 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. The committee reviewed the rent increase assumptions for 2016.
THIS PAGE INTENTIONALLY LEFT BLANK
Capitol Hill Housing
Operating Statement
For the period ending: 8/31/2015
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
Blended Melrose 30 146,787 154,079 -5% 138,348 126,767 -9% 4,612 8.4% 8.9% 4.8% (17,095) 100% 98% Y Y 70 1.73 1.58 1.95 $69,631 $28,085 Windows need to be reserved, higher than budgeted vacancy loss
Blended Miller Park 12 90,599 92,231 -2% 64,270 68,303 6% 5,356 2.2% 2.5% 8.5% 4,229 100% 98% Y Y 38 1.16 1.39 0.99 $175,612 $29,859
Blended Park Hill 30 237,210 241,254 -2% 166,730 172,216 3% 5,558 3.1% 4.7% 2.1% 26,874 99% 98% Y 70 1.76 1.44 2.38 $32,854 $65,641 $25,000
Discrete Harrison 19 221,603 217,901 2% 147,193 131,706 -12% 7,747 2.0% 0.1% 2.9% (11,681) 100% 98% Y Y 82 1.10 1.03 1.03 $29,961 $73,412 Reflects real estate taxes for the year, we have paid 1/2
Discrete HUD Helen V 38 270,101 269,975 0% 157,437 158,959 1% 4,143 1.5% 1.1% 1.9% 22,576 98% 92% Y Y 85 1.41 1.39 1.03 $263,111 $107,732
Discrete The Jefferson 40 327,425 323,519 1% 192,928 176,285 -9% 4,823 2.1% 2.5% 1.0% (1,850) 70% 72% Y 43 1.02 part yr 1.14 $55,962 $211,000 $12,000 reserves in transit
Discrete Unity Village 30 180,266 185,465 -3% 127,561 142,928 11% 4,252 2.1% 2.2% 2.2% 39,083 97% 90% Y - ** N/A * * CHH took over management 8/1/2015
M:\Admin\Board\PACKETS\2015 Packets\10 15\Word and other docs\August 2015 Dashboard.xlsx
THIS PAGE INTENTIONALLY LEFT BLANK
MEMORANDUM
To: Capitol Hill Housing Board of Directors
From: Michael Seiwerath, Executive Director, Capitol Hill Housing Foundation
CC: Christopher Persons
Re: October 2015 Fundraising and External Relations Update
GRANTS AND DONATIONS
The Foundation received a grant of $65,000 from the Bullitt Foundation for the Capitol Hill EcoDistrict. This is the 4th time in 5 years that the Capitol Hill EcoDistrict has received funding the Bullitt Foundation.
We received a grant of no less than $10,000 from the Seattle Foundation from their Basic Needs program. The Seattle Foundation is soliciting additional funding support from Seattle Foundation Fundholders, so the final grant award amount may increase. We expect to hear word of the final size of the award by the end of October.
We submitted grant requests for $75,000 to the National Endowment for the Arts for phase 2 of the Capitol Hill Arts District; a request of $5,000 to Washington Federal Bank for general operating support.
Fall Giving Campaign
The year-end giving campaign will include a donor solicitation letter that will be mailed the week of Thanksgiving, as well as a series of targeted emails. Major gift solicitations will continue through the fall.
AWARDS
12th Avenue Arts has won the Urban Land Institute Global Award for Excellence. Chris Persons, Dean Kralios from SMR Architects, and former CHH staff member David Dologite were in San Francisco to receive the award. The actual award will be available in early 2016, and an additional copy of the award will be presented to the city of Seattle.
12th Avenue Arts was awarded Second Place in the Midrise Category in the City of Seattle’s first People's Choice Award honoring excellence in urban design.
12th Avenue Arts has been nominated for the American Institute of Architects (AIA) Seattle Honor Awards.
The Haines Apartments has been nominated for the National Affordable Housing Management Association (NAHMA) Community of Quality award, asking the NAHMA board to recognize our
outstanding financial and physical site management, our success in improving the property, and the impact our work has had on the residents of the building.
EVENTS
Omnivorous
The fifth annual Omnivorous was held on September 24 at the Summit Event Center on Capitol Hill. The event was a success in many ways. 226 guests bought tickets – the largest number of tickets yet sold. Sponsorship crested at $33,500, the highest sponsorship total we’ve seen. And perhaps most impressively, Omnivorous 2015 saw the largest total spontaneous giving during the ‘Raise the Onion’ segment of the evening , totaling $41,300. We fell short of our goals in a single category – leadership gifts pledged in advance of the event declined from $91,150 in 2014 to $44,500 this year. Regardless, the event raised just over $139,000 for Capitol Hill Housing’s resident services program. And despite the slight decrease from 2014 total giving, the amount we raised was well over our budgeted goal of $101,000. The event was produced with a great deal of volunteer support, most notably from the Event Committee, co-chaired by CHHF Board member Deirdre Doyle and friend of the organization Julie Little. Other volunteers from the community included CHHF Board members Josephine Wong and Dani Cone, and Frank Alvarado, Mananger of the Capitol Hill Housing branch of Homestreet Bank.
The event served as a kick off for our revitalized recurring donations program, now called the “Perennial” program, in which donors are encouraged to give a donation of a fixed size each month for a time period of their choosing. Three individuals availed themselves of this program at Omnivorous, committing to gifts of $50 per month.
We have begun planning for 2016. As part of that plan we will take stock of the many lessons learned from this event over its five-year history, and will create a strategy to grow any event in size, number of guests, and dollars raised.
Media coverage this month included an article on the Capitol Hill Seattle blog catching up with CHH leading up to Omnivorous. The Capitol Hill Times covered Omnivorous as well.
The Pike-Pine pedestrian streets pilot results were written about by the CHS blog and the Capitol Hill Times.
CAPITOL HILL HOUSING FOUNDATION 2015 Budget Overview
As of 10/6/2015
Unrestricted Budget
Income Source 2015 Goal 2015 Actual % to Goal
Government $ 20,000 $ 32,000 160.0%
Foundation $ 219,917 $ 194,598 88.5%
Corporate $ 89,250 $ 181,837 203.7%
Individual $ 118,000 $ 111,435 94.4%
Events & Sponsorships $ 143,500 $ 150,805 105.1%
TOTAL $ 590,667 $ 670,675 113.5%
Restricted Budget
Income Source 2015 Goal 2015 Actual % to Goal
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)
Income Source 2015 Goal 2015 Actual % to Goal
Government $ 20,000 $ 32,000 160.0%
Foundation $ 319,917 $ 285,598 89.3%
Corporate $ 89,250 $ 181,837 203.7%
Individual $ 143,000 $ 111,435 77.9%
Events & Sponsorships $ 143,500 $ 150,805 105.1%
TOTAL $ 715,667 $ 761,675 106.4%
12th Avenue Arts Capital Campaign Overall GOAL : $4.6 M
Goal Pledged
TOTAL $4,600,000 $4,691,177
THIS PAGE INTENTIONALLY LEFT BLANK
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, October 6th at 5:30pm. PDC members in attendance were Alice and Bob; CHH
staff members in attendance were Greg.
October 2015
CURRENT PROJECTS
1. 12th Avenue Arts (88 units/arts/commercial/office):
Pelmeni Dumpling Tzar is opening this month.
2. Haines
The building converted to permanent financing and staff is preparing a plan for “Phase 2” of the rehab.
After that, the building will switch to property management.
3. Union & 24th (Liberty Bank Building):
The environmental consultant is working on the environmental remediation process, which includes the
demolition of the existing building and additional site characterization. Staff submitted funding
applications to the City and State in September.
4. Broadway TOD B-North Site:
Staff submitted funding applications to the City and State in September.
POTENTIAL PROJECTS
5. Harvey Apartments
CHH is continuing negotiations for potential acquisition of the Harvey. Staff is working with
Environmental Works to explore various renovation/redevelopment options.
THIS PAGE INTENTIONALLY LEFT BLANK
SUSTAINABILITY and PLANNING
MONTHLY REPORT TO
CAPITOL HILL HOUSING PDA BOARD
October 12, 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.
*Executive Committee member
PROGRAM DEVELOPMENT
Grants We received $65,000 from the Bullitt Foundation. This is the 4th year in a row that they’ve supported the EcoDistrict. We also received a commitment (still need to sign a contract) from the Department of Ecology (Public Participation Grant) of $54,000 to support our Recycling Champion Program and develop a Waste Management Plan for CHH. We have requests pending with King County Metro, Seattle City Council, TransitCenter, and the Loom Foundation.
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 We are participating in the interview for a Rose Fellow who we expect to begin working at CHH in January. There are 3 finalists for the position. Roughly 50 percent of the Fellow’s 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 ranking and prioritization of projects after 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 awaiting notice about funding for this project from TransitCenter, King County and the City of Seattle.
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 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 Community Feedback period for the Pedestrian Streets Pilot is coming to a close. The EcoDistrict and City of Seattle held 2 community meetings, have received approximately 300 online survey responses, and have conducted over a dozen in depth interviews with stakeholders. This feedback will be presented to the Mayor’s Office later this year to help them make a final decision about the future of this street management concept. A final report summarizing the project and neighborhood feedback will be completed later this year.
Housing Affordability and Livability Agenda Analysis We have been in ongoing conversation with City departments and elected about how the EcoDistrict could help advance the goals of the Mayor’s HALA Agenda. We presented our proposal to the PLUS Committee in August and hope to receive funding from the City to partner with departments on several implementation strategies related to renter engagement and parking.
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.
CAPITOL HILL ARTS DISTRICT
Capitol Hill Art Walk Happy Hour The first ever Art Walk happy hour was a success. The second Thursday event returns August 13th from 5-6pm, with live painting in the lobby.
Satellite Seattle Centered on Capitol Hill, Satellite Seattle was an art event that took place concurrently with the official Seattle Art Fair. August 1 brought two events of Satellite Seattle to 12th Avenue Arts- video projection in the lobby and projection mapping on the exterior of the building.
Visibility and Wayfinding Staff is continuing conversations with the city about the Arts District logo’s design and possible use on city property.
ECODISTRICT LEADERSHIP
Capitol Hill EcoDistrict Steering Committee The September 11 meeting focused on our proposed work with the City of Seattle related to the HALA recommendations.
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 will re-start 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 is currently drafting a detailed project scope for Renter Engagement. The Equity and Engagement Working Group will review this draft scope for the Renter Engagement project at their next meeting and discuss 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 will be 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.
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 will be leading (no pun intended) a conversation about expanding LEAD to Capitol Hill.
OTHER COMMUNITY DEVELOPMENT WORK
South 12th Research and community engagement for this project is ongoing. We are in the process of a recruiting for a position to help with outreach to East African businesses.
GREENING CHH
Resource Conservation We are piloting WegoWise in 5 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 10 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.
Community Development Partners Concept Paper September 2015 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.
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 directly or through CDP, 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
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 CHH 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.
THIS PAGE INTENTIONALLY LEFT BLANK
MISSION: To support CHH residents with one-on-one mentorship from professionals in the Seattle
community by providing personal and supportive guidance on residents’ job and career goals.
GOALS:
1. CHH residents seeking employment are better equipped to attain and retain sustainable employment.
2. Improve the employment readiness, status, and income of CHH residents.
3. Strengthen community relationships by connecting CHH residents with Seattle professionals working in a wide range of fields.
4. Volunteer mentors will be educated about the challenges and barriers our residents face and will use this knowledge to reduce barriers to employment in their own workplaces and to advocate for affordable housing and economic justice beyond the CHH community.
THE PROGRAM: Volunteer Mentors will review and assess resident interests, skills, work history and
employment goals. Residents will develop their interests, learn what opportunities are available in their
field of interest/skill, polish resume building skills, prepare for the interview process, and gain assistance
in applying to jobs and networking. Mentor sessions are designed to provide personalized and individual
services, where the resident is at the helm and the volunteer is a navigator.
KEY VOLUNTEER RESPONSIBILITIES:
Emphasize relationship-building conversations to create a trusting mentor relationship
Review and assess resident interests, skills, work history and employment goals
Create concrete short and long term steps toward goal-achievement and hold resident accountable to said steps
Provide constructive feedback and guidance about resumes, applications, interview skills, and navigating the work environment
Guide residents to additional employment or educational resources
COMMITMENT:
Minimum of three, weekly to biweekly sessions with one resident (can be ongoing)
Initial 2-hour volunteer orientation and quarterly skills trainings
DESIRED (but not required) SKILLS:
Previous mentor or advocacy experience
Experience in human resources, personal management or with hiring
Active listening and other “soft” skills
Flexible problem-solving skills and ability to think outside the box
Approachable, compassionate, and open-minded
Passion for affordable housing and economic justice issues
IF YOU ARE INTERESTED IN VOLUNTEERING WITH NEAR, PLEASE CONTACT:
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.
THIS PAGE INTENTIONALLY LEFT BLANK
FRANK F. ALVARADO III 1125 E OLIVE STREET, UNIT 211 • SEATTLE, WA 98122
Experienced professional with a successful twelve year banking career Financial industry expertise in sales, operations, lending, and compliance Ability to perform as an individual contributor and in a team ensuring organizational goals are attained Proactive in establishing and developing relationships resulting in an strong community and network Logical thinker with a strong analytical thought process resulting in meaningful and efficient organizational solutions Successful in highly competitive environments where service and leadership are core values Effective manager with the knowledge and experience to train, direct, and motivate a team
C A R E E R E X P E R I E N C E HomeStreet Bank 03/2013 – Present Branch Manager – Seattle, Washington
Responsible for opening the 23rd bank location in Capitol Hill including the hiring, onboarding and training for new team members Responsible for the growth of the branch with a focus on consumer and deposit balances through account acquisition Empowered to make decisions which are both best for the bank and the client to achieve an amazing client experience Initiate concepts to marketing for business development with a focus on activities that resonate to the neighborhood residents and businesses Integrate into neighborhood communities through different forums resulting in creating a presence for the HomeStreet brand Lead, coach and develop the team to achieve personal goals ultimately resulting in overall growth for the branch
Responsible for reviewing and maintaining the profitability of a financial center through a Profit and Loss analysis resulting in a revenue generating branch
Managed $120 million in assets between deposit and investments accounts ensuring balance retention Anticipate year over year changes of an established financial center with a focus on increasing relationships and deposit balances resulting in
an average growth of $8 million per year Provides daily coach to the team to create awareness of the current performance of the financial center and uncover opportunities that lead
to stronger relationships Developing and implementing Chase Private Client, a program developed to attract and retain high balance clients
P H I L A N T H R O P I C & P R O F E S S I O N A L A F F I L I A T I O N S Community Lunch on Capitol Hill Board of Director, Vice President 02/2014 – Present
Provides governance and support with a team of 11 board members Successfully campaigned and fundraised for the organization resulting in an additional weekly meal, increased salaries at $15/hour for all
employees and five months of reserves Flying House Productions Board of Director 06/2014 – Present
Provides governance and support with a team of 15 board members Finance Committee – responsible for the preparation and monthly evaluation of the budget currently resulting in a positive fiscal year balance
Capitol Hill Housing (CHH) Committee Member 02/2014 – Present Finance & Asset Management Committee – responsible for providing guidance on financial and asset related items Omnivorous Planning Committee – responsible for providing support on various tasks resulting in a successful fundraiser
Capitol Hill Chamber of Commerce Committee Member 05/2013 – 08/2015 Clean & Safe Committee – responsible for providing support and guidance on issues directly affecting the safety of Capitol Hill
Greater Seattle Business Association Committee Member 03/2013 – Present Ongoing participation on the GSBA Scholarship Selection Committee
Alpha Kappa Psi Professional Business Fraternity Southwest Regional Director 09/2001 – 12/2010 Manage and lead a staff of 34 volunteers including hiring, promoting, and firing Supervise 28 student chapters in three states totaling more than 1,500 people Manage budget of $8,000 to use for professional development activities Attend seminars and courses presented by the Fraternity focusing on numerous topics including: leadership, management, human resources,
fundraising and marketing
E D U C A T I O N Arizona State University – Tempe, Arizona B.S., Finance 08/1998 – 05/2003
Graduate of the W.P. Carey, College of Business – Cumulative GPA: 3.10 NHTV Breda University of Applied Sciences – Breda, Netherlands 05/2000 – 10/2000
Specialization in Recreation and Tourism Management
P R O F E S S I O N A L D E V E L O P M E N T Washington Bankers Association – Branch Manager Development Program 10/2014 – 03/2015
Monthly interactive program designed for retail branch managers with a desire to deepen existing skills and introduce leadership practices resulting in the preparation to executive level advancement
ArtsFund – Board Leadership Training Program 10/2014 – 11/2014 Weekly program designed to equip committed volunteers to be highly effective board members with an emphasis on the arts but is applicable
to any nonprofit
T E C H N I C A L P R O F I C I E N C I E S Microsoft Windows 10 and previous editions Microsoft Office 365 and previous editions
FINANCE AND ASSET MANAGEMENT COMMITTEE REPORT AND MINUTES
The Finance and Asset Management Committee met Tuesday, October 6, 2015 4th, 2015. Committee members Drew Porter (by phone) and Frank Alvarado and Paige Chapel met with Brad Lange Director of Asset Management, and Deena Wallis-York, Director of Finance. Dinah Thoreson, Paige Chapel and Sharron O'Donnell were unable to attend.
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 2015-08 and Board Summary. The committee felt comfortable recommending the resolution to the Board for adoption.
The next Finance and Asset Management committee meeting will be November 3rd, 2015.
Items in italic have not been changed from the prior Comments and Analysis report.
Comments and Analysis re: August 31, 2015 CHH Blended Balance Sheet
Unrestricted Cash position remained strong at $1.0 million as the end of August and has decreased $264K 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. This is a normal swing in cash and 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 $933K due to construction in progress (CIP) work on Hazel Plaza of approximately $817K and Notes Payable increased $613K for Hazel Plaza work financing.
Notes Payable have decreased by $1,718 million due to 12th
Avenue Arts $2.163 million pay down on 12th
Avenue Arts note payable from a contribution by the Capitol Hill Foundation and $921K Hazel Plaza work financing.
Net Asset year end forecast by management believes the will at a minimum meet the original budget of positive net assets of $530K or exceed it. This forecast does not take into consideration the sale of Fire
Station 7, as its timing is uncertain, but is anticipated to be by year-end.
Comments and Analysis re: Year to date August 31,2015 Blended Operating Statement
Tenant Rent is $16K favorable to budget or .33%.
Commercial Rent & NNN is $(2.6K) or .28% unfavorable to budget due to the later occupancy of commercial tenants in the 12thAA building than was anticipated when the budget was created. An adjustment correcting the recording of rent from tenant rent to commercial rent was made in June.
Vacancy & Concessions is $(5K) or 2.91% unfavorable 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 is working to remain within budget for the remainder of the year.
Property Management Fees is $34K or 4.11% favorable to budget
Development Fees/Ecodistrict Revenue is $(214K) or 18.01% unfavorable. 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. Management believes this is a timing difference and will meet budget by year-end. 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 is $(91K) 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 $20K unfavorable to budget and is anticipated to be a timing difference which will resolve itself 4
th Quarter of 2015.
Grants & Donations are $2.085 million favorable to budget. In June the City of Seattle Office of Housing provided a grant of $151K for operating support of the CADA properties (Union James Apartments and Harvey Apartments). This was used to offset expenses that were unfavorable. 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 anticipate din the budget.
Other income is favorable to budget $21K and is anticipated to remain favorable for the year.
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.
Vacancy loss for the portfolio was 2.7% for the first eight 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.
Compliance, Taxes & License is unfavorable $23K or 30%, The variance is due to timing. Real Estate taxes
were paid in full yet budgeted spread over the year.
Debt service is unfavorable $(2.218 million) or 169.67% unfavorable which includes the quarterly payments of $20,163 on the 12
th Avenue Arts bridge loan. Payments on the bridge loan have not been budgeted in the
operating budget as they are paid either from interest income earned by the leverage lender or from capital grants from the Capitol Hill Housing Foundation. The 12
th Avenue Arts loan of $2.163 million was paid.
Insurance is unfavorable to budget by $6K or 4%. This is a timing variance as some policies are paid in full during March while others are spread evenly over the coverage period.
Payroll, Taxes and Benefits is under budget by $74K or 2.77% as the 2015 budget included several new FTEs which have not yet been hired. As staff are hired the favorable variance is not anticipated to continue to increase and will 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 staff are 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.
Repairs and Maintenance is $35K favorable to budget or 3.82%. $15K in revenue has been received from the Seattle Public Utilities for retrofitting of toilets in the Villa Apartments recorded as revenue.
Total Assets 71,389,424 71,644,176 72,208,084 70,697,010 70,404,009 (818,660)
LGIP Capitol Hill Housing Reserves 2,185,044 Total LGIP 2,185,044
Oppenheimer EJSH Escrow 32,476 Oppenheimer EJSH Reserves 100,279 Oppenheimer Mary Ruth Manor Escrow 10,641 Total Oppenheimer 143,396 US Bank 18th Ave Apartments Reserves 104,220 Total USBank 104,220
BofA Fleming Apts LP Reserves 43,598 BofA Seneca Reserves - Total BofA 43,598 Total Restricted - CHH Blended Components ^^^Hl,452,018
LGIP Capitol Hill Housing Board Designated Reserves 1,287,314 Total Designated ^^^Hl,287,314
Union Bank Capitol Hill Housing EQII 94,554 Total Union Bank 94,554 Chase Holden Vista (Quantum) Operating Checking 3,264 Total Chase 3,264 SterlingBank Holden Vista (Quantum) Savings - Total SterlingBank -
Cash Various Petty Cash - CHHIP 4,095 Total Petty Cash 4,095
Banner Berneva Operating Checking 6,608 Banner Seneca Operating Checking 184,963 Banner Hazel Plaza Construction - Total Banner 191,571
Total Unrestricted - CHH Blended Components ~^^^Bl,040,852 Total All Cash - CHH Blended Components 6,780,185
ance & Accourting\Board reports\2015\August reports for the October 2015 meeting\ August Board meeting report 2015 Cash i Report Totals by Bank (3) xlst AUG 15
Bank _________ _______ Discrete Component Unit ______ ___________________ Type ___________________ _____ Balance
Chase Harrison Reserves 138,305
Chase Oleta Reserves 141,504
Chase Woodland Park Ave LLC Reserves 136,985
Chase AAA Securitv Deposit 5,359
Chase AAA Reserves 30,011 Total Chase 452,164
KevBank Broadwav & Pine Reserves 264,797
KevBank Broadwav & Pine Securitv Deposit 23,744
KevBank El Nor LP Reserves 703,301
KevBank El Nor LP Capital Reserves 155,193
KevBank El Nor LP Securitv Deposit 8,346
KevBank Harrison Securitv Deposit 18,526
KevBank Helen V Apts LLC Reserves 372,014
KevBank Helen V Apts LLC Securitv Deposit 6,967
KevBank Holidav Apts Securitv Deposit 20,642
KevBank Jefferson & 12th Reserves 269,672
KevBank Jefferson & 12th Securitv Deposit 38,947
KevBank Oleta Securitv Deposit 22,812
KevBank Pantaaes Apts LLC Securitv Deposit 27,125
KevBank Silvian Securitv Deposit 5,592
KevBank SOPI / Unitv Villaae Reserves 167,254
KevBank SOPI / Unitv Villaae (Quantum) Securitv Deposit 13,651
KevBank Woodland Park Ave LLC Securitv Deposit 12,698
KevBank 12th Avenue Arts Housina Securitv Deposit 80,792
El Nor 55 376,507 368,901 2% 261,573 273,578 4% 4,756 0.3% 2.6% 26,849
Harrison at 15th 19 221,603 217,901 2% 147,193 131,706 -12% 7,747 0.1% 2.9% (11,681)
1340 4,299,629 4,339,152
2,601,225 2,541,525
536,396
CHH Board Proposal
Purpose:
The purpose of this resolution is to modify Article IV Section 2 Regarding Bank Accounts of the CHH
Rules and Regulations.
Charter or Rules and Regulations Modification:
o Does this Resolution change the Charter or Rules and Regulations? Yes NO
o If yes, you need to give notice to the Board 15 days prior to the proposed change.
o Changes to the Charter or Rules and Regulations must use the strike out format so change is
clear to reader.
General Description and Purpose: Please provide a general outline of the proposal, why this is being
recommended, risk assessment, cost, proposed funding and any operational impact.
This resolution will continue to allow management at CHH to efficiently manage the banking
arrangements at CHH, its affiliates and third party managed organizations.
CHH currently has over 140 bank accounts at seven financial institutions (Key Bank, US Bank, JP Morgan
Chase, Banner, LGIP (Local Government Investment Pool), Union and Bank of America. Many loan
agreements require reserve accounts (operating, replacement) to be placed at the lending organization
bank. More than half of our buildings have individual operating accounts, security deposit accounts, and
reserve accounts.
In order to efficiency mange the financial institution transactions this resolution authorizes the Chief
Executive Officer and Deputy Director/Chief Financial Officer to approve the addition and cancellation of
accounts as necessary to conduct day to day business. This will improve efficiency, flexibility and day to
day business needs as changes are necessary. Ultimately at some institutions management anticipates
being able to have Master Banking Agreements which will further streamline changes. This takes a non-
value added required authorization from the Treasurer (Board Member) previously needed to approve
such transactions and moves it to Leadership at CHH.
New financial institution business arrangements will continue be Board approved for new loan
agreements, new investments, depository accounts and starting a new financial institution relationship.
In addition, the bank signers’ titles have been changed to reflect the current position titles for both the
Board of Directors and the Leadership team at CHH.
Internal controls will remain strong.
o Accounting staff that reconcile bank accounts do not have authorization to do wire transfers,
ach (automated clearing house) transfers, sign checks, print checks or transfer funds from one
account to another.
o Accounting staff who can transfer money from one account to another do not do bank
reconciliations and cannot approve transfer without their supervisor signature
o Accounting staff that can enter ACH payments cannot approve their own entry which must be
approved by their immediate supervisor.
o Wire transfer approvers and check signers cannot sign checks or approve wire transfer paid to
them. Wire transfers are originated by someone in the accounting team(who are not authorized
to approve the wire transfer) prior to being presented to the signer for signature and sent to the
financial institution. The financial institution further calls the signer to verify the wire transfer.
Organizational requirements of resolution: Please identify any changes to the organization structure, management,
Board requirements or other changes necessary to complete this Board resolution.
The Board members indicated in the resolution and the CHH Leadership members by title need to be
available to co-sign and sign authorization of financial transactions as outlined in the resolution.
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?
The bank resolution does not require any incremental funding other than the bank fee costs already
budgeted in the operating budget as approved by the Board for 2015. It is anticipated that bank
fees/charges will continue to be budgeted annually in the budget.
Pros:
This authorization will improve CHH management’s ability to address changing financial services needs
without taking the time of the Board on routine matters. It is the opinion of management that internal
controls remain strong with this change. CHH Finance staff regularly conducts a risk assessment of
internal controls and beliefs this will not increase our risk factors in cash management.
Con: (Risk assessment)
None identified.
Follow-up or continued reporting requirements to the Board:
This section of the Rules and Regulations will need to be modified as titles of Board Officers or
Management Leadership team changes.
ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE
CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION
RESOLUTION NO. 2015-08
AMENDMENT OF THE CHH RULES AND REGULATIONS ARTICLE IV SECTION 2 REGARDING BANK ACCOUNTS
WHEREAS the Board is authorized to conduct the business of Capitol Hill Housing Improvement
Program; and WHEREAS Article XI of the Charter provides for the Board to amend the Rules and Regulations at
any regular meeting by majority vote with at least 15 days prior notice of the proposed amendments which shall take effect ten days after filing same with City Clerk or immediately upon unanimous approval; and
WHEREAS appropriate notice was given to the Board on September 28, 2015; and WHEREAS Article IV Section 2 of the Rules and Regulations of Capitol Hill Housing Improvement
Program addresses who may establish bank accounts and defines the check signers for the Board; and
WHEREAS it is necessary for the efficient conduct of business to allow the Executive Director and Deputy Director/Chief Financial Officer to manage the opening and closing or accounts and to clarify who is authorized to sign checks while maintaining appropriate internal controls over disbursements, IT IS HEREBY RESOLVED that Article IV Section of the Rules and Regulations is amended to read as follows:
a. The Treasurer, Executive Director and the Deputy Director/Chief Financial Officer are authorized to establish banking services and relationships including establishing new accounts or closing accounts and other banking services necessary to efficiently conduct business. The Treasurer shall establish and maintain necessary savings and checking accounts.
b. All checks and withdrawals from any Program account in excess of an amount set from time to time by the Board by resolution must be signed by two of the following: the Chair, Vice Chair, Treasurer, Secretary, Executive Director, Chief Operating Officer, Deputy Director/Chief Financial Officer or Director of Real Estate and Impact Investments. All other such checks or withdrawals must be signed by one of the above. However, no person to whom a check or withdrawal is payable may sign that check or withdrawal.
CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (”CHH”) and that the foregoing Resolution was duly adopted at a meeting of the Board of Directors of CHH held on October 12, 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 12th day of October, 2015. By_____________________________________ Its_____________________________________