2017 CHH Board Meeting April April 2017 Meeting · 2017-04-06 · April 2017 CHH Board Meeting April ... We will present a slate of returning Board members whose current terms are

CHH Board Meeting

April 2017

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SECTION 1:

Meeting Keys

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April 2017 Capitol Hill Housing Board Meeting Keys and Addenda

Reminder: Dinner begins at 5:45. The meeting starts promptly at 6 PM. Consent Agenda, Disclosures and Recusals: The consent agenda will be moved for adoption. Board members will review items on the agenda and make any necessary disclosures and recusals. Kiley Dhatt will present our annual report to the Board regarding Section 4 of the Rules and Regulations which delineates our responsibilities for public accountability and communication.

Presentation and Discussion Garage Technology: As part of our EcoDistrict work, staff has been pursuing a district shared parking strategy that would minimize the need for new structured parking and make it easier for people to find parking, thereby minimizing construction, environmental impact and vehicle miles of travel (VMT). As part of this effort, CHH has been working with the University of Washington and together we have created a new technology that could allow a parking system to sense a car’s presence in a parking stall and make that information known to an end parking user. We are in early conversation about who owns this technology and who has rights to use and monetize. Chris mentioned this to the Board last month and this month Alex Brennan will provide a detailed introduction on the topic. Later in the year, staff may be asking the Board to approve the creation of a new legal entity which would have certain rights to this technology. Strategic Initiatives: In advance of our impending Board retreat, Chris will present a review and overview of our existing Vision Framework and our current initiatives. We will also be asking the Board to approve a modest change to the Vision Framework adding the word “affordable” in the prognostication “Our real estate portfolio will be the greenest [affordable] portfolio in the Pacific Northwest.” Africatown: We will enter into executive session pursuant to RCW 42.30.110 (1)(b) [executive sessions are allowed] To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price.

CHH Branding and Service Area update: Chris will give a brief update on the progress of next steps in this work, including a report back from our conversation with legal counsel and scheduled meeting with a City Council advocate on this issue. Partnership discussion: We will enter into executive session pursuant to RCW 42.30.110 (1)(b) [executive sessions are allowed] To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price. Capital Campaign Framework: Michael will briefly present a framework for the “300 Homes” capital campaign currently under consideration and study.

Executive Committee Board Development: We will present a slate of returning Board members whose current terms are up in April, but we will be asking the Board to renew each. This slate includes Dana Behar, Paul Breckenridge, and Mike Malone.

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Board Committee: We will present a proposal for reducing the meeting frequency of certain Board committees while improving the quality of monthly reporting and making the meetings more strategic rather than staff reporting out.

Finance and Asset Management

Financial summary: The finance committee presents its regular report and dashboard through February 2017. Resolutions: Jill will present two financing resolutions for approval, one regarding the 412 Apartments and one regarding the Liberty Bank Building bond inducement. DOF Update: We have an ongoing search for the Director of Finance and have had a couple successful interviews. Jill will give a brief update. Doomsday Report: The Board asked staff to prepare a financial projection based on no new real estate development after B-North. This is in process and will be presented at the May meeting.

Property Presentations Staff will be making a presentation about Hazel Plaza, Melrose and Mary Ruth Manor apartments.

Real Estate

Jeremy will provide a scan of our full development pipeline. Board Packet Sections 1. Meeting Keys, p. 5-6 2. Board Agenda, p. 9 3. CHH Vision Framework, p. 13 4. Capital Campaign Framework, p. 17-30 5. Returning Board Members, p. 33 6. Board Committee Reorganization Proposal, p. 37-40 7. February 2017 Finance Report and Statements and Asset

Management Report, p. 43-49 8. Resolution 2017-06: 412 Apartments Financing (cover

sheet will be a handout), p. 53-54 9. Resolution 2017-07: LBB Bond Inducement (cover sheet

will be a handout), p. 57-62 10. Property Action Plans, p. 65-70 11. Consent Agenda and Attachments, p. 73-101

a. Contracts and Expenditures, p. 73 b. March Board Minutes Draft, p. 75-77 c. Tenant Communications Log, p. 79 d. Property Management Report and Minutes, p. 81-83 e. Property Management Dashboard, p. 85 f. Memo from the CHH Foundation, p. 87-90 g. Property Development Report and Minutes, p. 91-93 h. Community Programs & External Relations Report and Minutes, p. 95-97 i. Executive Committee Report and Minutes, p. 99-101

Upcoming Meetings and Events Please let Chris or Michael know if you’d like additional information on any event or meeting. April 10 CHH Board Meeting April 18 CHH Annual meeting April 21 First Place Fish Fry April 24 CHH Executive Committee April 25 CHHF Board Meeting April 26 Spring All Staff Meeting April 27 Top of the Town May 30-June 2 HPN Detroit June 15 Board Retreat

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SECTION 2:

Board Agenda

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CAPITOL HILL HOUSING BOARD April 10, 2017

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

1620 12th Avenue, Seattle

AGENDA

6:00 Call to Order (Hillenbrand)

1. Approve consent agenda Sec. 11, Page 73 2. Disclosures and recusals 3. Public Accountability Report (Dhatt) Handout

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

1. Garage Technology (Persons, Brennan) Presentation 2. Strategic Initiatives & Vision Framework (Persons) Sec. 3, Page 13 3. Africatown Discussion

6:30 Updates 4. CHH Branding and Service Area (Persons) 5 mins Update 5. Partnership discussion (Persons) 5 mins Update

In executive session 6. Capital Campaign Framework (Seiwerath) Sec. 4, Page 17

6:55 Executive Committee and Board (Persons, Hillenbrand)

1. Board development (Persons, Hillenbrand) Presentation a. Voting on 2017 Returning Slate Sec. 5, Page 33

2. Board Committee Reorganization Proposal Introduction Sec. 6, Page 37

7:05 Finance and Asset Management 1. Finance Report (Fleming)

a. Financial summary, cash management report: February 2017 Sec. 7, Page 43 2. Resolution 2017-06: 412 Apartments Financing (Fleming) Sec. 8, Page 53 &

Handout 3. Resolution 2017-07: LBB Bond Inducement (Fleming) Sec. 9, Page 57 &

Handout 4. Director of Finance Update (Fleming) Update

7:15 Property Presentations

1. Hazel Plaza, Melrose, Mary Ruth Manor Sec. 10, Page 65 7:25 Real Estate

1. Pipeline Overview (Wilkening) 7:30 Adjourn (Hillenbrand)

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SECTION 3:

CHH Vision Framework

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Capitol Hill Housing Strategic Vision Framework: Updated April 2017

Core Purpose To build vibrant and engaged communities.

Big Goal Reinvent Community Development.

Core Values We believe in each person’s right to a safe, affordable, quality home.

We act with integrity in our lives and with passion for our work.

We cultivate a strong, diverse team that leads with its commitment to excellence and innovation.

We responsibly steward our properties and protect the environment.

We are caring and respectful of all residents, staff, community partners, and neighbors.

We honor diversity and integrate a wide range of perspectives into our work.

Vivid Description We will be recognized as a role model for other Community Development Corporations as we expand our

community development and affordable housing work regionally through partnerships with neighborhood

organizations. We will develop and build communities that are environmentally responsible, culturally rich and

socially just. Our real estate portfolio will be the greenest affordable portfolio in the Pacific Northwest.

We are grounded by our deep roots on Capitol Hill. Capitol Hill is an ideal laboratory for piloting innovative

approaches to community development such as the EcoDistrict and the Capitol Hill Arts District. We will share

these and other successful models with communities nationwide.

Creating and preserving affordable housing will remain central to our work. We will be financially resilient,

operating at a scale that frees us from reliance on developer fees for ongoing operations. Using impact investments

and philanthropy we will pioneer new and more competitive ways of funding our work that are less dependent on

public subsidy.

We create homes where our residents can thrive. In partnership with neighborhood organizations, we will work

across disciplines, including education, health care, social services and transportation to develop resources to enrich

the lives of residents and to strengthen the social fabric of each community we serve.

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SECTION 4:

Capital Campaign

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300 Homes

Framework for a Collaborative

Capital Campaign

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Contents

The Big Picture Page 2

Asset Scan Page 4

Campaign Goals & Outcomes Page 6

Opportunity & Challenges Page 8

Campaign Prospects Page 9

Campaign Structure Page 10

Fundraising Structure Page 11

Timeline Page 12

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The Big Picture

From its inception the 300 Homes campaign concept has been driven by the following

understandings:

The affordability crisis demands coordinated solutions;

Funders are interested in broad solutions and new partnerships;

Beyond creating buildings, collaboration provides opportunities to bring communities

together around common cause

The 300 Homes Campaign is comprised of three main projects:

Liberty Bank Building 115 New Affordable Apartments

At the site of the nation’s first African American owned bank west of the Mississippi, CHH is

developing a mixed used building with 115 apartments. This building will honor the history of the

Central District and include new commercial space for locally owned businesses.

Community Partners: Africatown, Black Community Impact Alliance, Centerstone

o Public and private financing secured

o Breaking ground June 2017

o 18-month construction timeline

o Total development cost $31 million

o Fundraising goal $700,000

o Major gifts: Wyncote Foundation NW $200,000 confirmed; Key Bank $200,000+ pending

Capitol Hill Light Rail Station Homes 90+ New Affordable Apartments

Rising above the new light rail station, this is targeted to be Seattle’s first deep green affordable

apartment building. CHH’s role is part of a broader partnership with Gerding Edlen, a well-

respected for-profit developer.

Community Partners: Capitol Hill TOD Champions

o Public funding secured, private funding late 2017

o Breaking Ground 2018

o 18-month construction timeline


o Fundraising Goal $1.2 million

White Center Community Resource Center up to 93 New Affordable Apartments

This project will transform the site of an aging King County building into a new home for

community based nonprofits and residents. In addition to the affordable apartments, the Center

will house an expanded White Center Food Bank, increased programming space for Southwest

Youth and Family Services, and the headquarters of the White Center Community Development

Association. The co-location of homes with services strengthens the neighborhood fabric as a

whole.

Community Partners: Southwest Youth and Family Services, White Center CDA, White Center

Food Bank

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o Early planning stages

o Projected groundbreaking 2019

o Projected completion 2020/2021


o Fundraising goal $3.5 million- very early estimate

Additionally, Capitol Hill Housing will do preservation work on an existing building with 30

apartments and is exploring an opportunity to preserve affordable arts space on Capitol Hill

through acquisition of an existing building.

The overall project budget is projected at $106 million with a capital campaign goal of $8.1

million, which includes $670,000 in fundraising expenses.

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Asset Scan

Project partners all have significant assets that they bring to a collaborative campaign. The

following are some of the key organizational strengths that will provide effective support for a

campaign:

Southwest Youth and Family Services

o An experienced development director

o Access to the SVP network of donors and advisors

o Support from Communities of Opportunity

o Strong relationships with Bank of America, Judy Pigott, Martha Kongsgaard, Heidi

Stolte, Medina Foundation, Satterberg Foundation, Alaska Airlines

o A community-based board including members from Starbucks and Boeing as well as

members with communications expertise

o Previous capital campaign experience

o A strong commitment to serving immigrant and refugee populations

o Data collection

White Center Food Bank

o Major donors with a dedication to the mission

o Strong volunteer and community support

o Staff energy around growth potential

o 40+ year history

o Strong ties with the 34th District

o PR support from local news sources

o Strong relationships with US Bank, Nucor Steel, Communities of Opportunity, King

County, Feeding America, Northwest Harvest, Rotary, Kiwanis

o Recognized as a leader in community advocacy, public health, homelessness


o Data collection

White Center CDA

o Strong and established relationships with the community

o Partnerships with many institutions including the school district, King County, City

o More than 80% of staff are White Center residents and POC

o Hold signature community events on a quarterly basis

o Data collection through community surveys

o Leadership development opportunities for staff and board

o Work done with an anti-racist lens

o Operates as a place-based organization


o Sustainability after 10 years of foundation support

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Capitol Hill Housing

o Strong and experienced staff

o Two effective boards (PDA and Foundation)

o Previous successful capital campaign

o Institutional and philanthropic support

o Strong financial expertise

o Track record of successful projects

o Experience working in multiple communities

o Early funder buy-in

o Relationships with elected officials

Centerstone

o History and longevity in the community

o Historically Black organization that has adapted and endured for 53 years

o Stewards of a large amount of resources (6M annually) from the federal government and

private sources

o Help to build capacity in smaller organizations through proficiency in managing

resources

o Have re-built social capital with the community and elected officials

o Strong relationship with NW Area Foundation as a grantee and as a partner on issues in

the Black community

o Qualitative data gathering in the community in a respectful way – Study on the State of

Black Washingtonians

o Convener role, trusted translator enabling unlikely groups to partner effectively

o Direct service programs – rental assistance program, energy assistance program and

food bank (serving 15,000 annually)

Africa Town

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Campaign Goals and Outcomes

Each partner organization anticipates that participation in a collaborative campaign will provide

positive impact and has a vision for how their organization will be different after completion of a

successful campaign.

White Center CDA:

o A strong White Center community that deepens feelings of connection and pride in how

the community has grown

o Creation of a different way to do community development

o Support partner organizations in growth and mutual learning

o Widening the circle of engagement and involvement within the community

o Remove silo’s in order to highlight interconnectedness in community development work

o Use the project to give the community a sense of their own inherent power

White Center Food Bank:

o Be in a strong position to promote the connections between food and hunger mitigation

with the Food Bank’s larger public health mission

o Create opportunities for growth, raising awareness, and serving more people

o Support broader efforts around hunger and reducing poverty in White Center

Southwest Youth and Family Services

o Overcome the “service desert” that is South King County

o Be able to meet the needs of people seeking services

o Provide a central location in the community for accessing services


o Support other communities to leverage CHH’s strengths to build capacity

o Build relationships and partnerships for future projects

o Build skills in partnering with other organizations and communities

o Be viewed as an expert and problem solver in these types of partnerships

o Make our portfolio and the neighborhoods we work in more green

Centerstone

o Learn how to carry out a successful capital campaign to purchase current facility

o Develop greater proficiency in project management for a campaign including good

internal communication practices

o Expand fundraising strategies to include a capital campaign

o Increase fundraising sophistication to develop multi-year plans

Africa Town

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In addition to individual organizational goals for the campaign there are clear over-arching goals

that are shared by all participants:

o There are common needs to build capacity around fund development that can lead to

more robust fundraising programs after a campaign

o Organizations want to know how to better maintain capital assets, including establishing

maintenance funds to avoid emergencies

o Enhanced project management skills

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The Opportunity

The partner organizations have identified what unites them in this effort to undertake a multi-

project, three neighborhood capital campaign:

o Similar long-term strategic visions

o Shared values around cultivating and preserving community

o Shared dedication to ensuring economically diverse communities

o Common constituencies

o Interest in addressing larger public and community health concerns through housing and

services

o Concern about not keeping up with the pace of the problems caused by lack of

affordability

o Dedication to creating a bigger safety net

There are a number of reasons to consider nonprofit collaboration. A collaborative effort can

help each organization to better respond to complex and/or broad issues. As an article in the

Foundation Center blog cites, “If various groups work in a similar field, but the mission of each

tackles a slightly different aspect of that field, working together can allow the organizations to

address multifaceted issues that are larger than any of their particular missions, and achieve a

broader purpose than could be accomplished alone.”

The Challenges

A collaborative enterprise of this scale presents some challenges that need to be acknowledged

and addressed. A key unknown identified by the working group is federal policy and budget

changes, and any resulting decisions that may have impact on this project. The concerns range

from “tax reform” changes that may affect housing financing to whether donors may be

redirecting philanthropic resources to other issues under attack. At this stage there is no solid

information about what these potential impacts of the new administration may be.

The campaign will naturally be phased as each project is at a different stage of development.

This likely means that the role of partners will ebb and flow to some extent throughout the life of

the campaign which means levels of engagement will likely vary.

Other challenges include the complexities ranging from scheduling group meetings, to sharing

funder information, to making decisions collectively. It is not surprising that simply having more

people involved will present some logistical maneuvering. However in regard to the dynamics of

establishing a high functioning collaboration, research points to a number of helpful guidelines:

o Allow extra time to fully discuss all aspects of the collaboration

o Build trust among participating members

o Address all concerns openly and respectfully

o Every participant must clearly articulate what they want to get out of the collaboration

o Support board education throughout the process

o Establish a shared understanding of the values that knit participants together

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Campaign Prospects

The following is a preliminary list of campaign funding prospects based upon existing

relationships held by the partner organizations:

o Alaska Airlines

o Paul G. Allen Family Foundation

o Norman Archibald Charitable Foundation

o Boeing Company

o Boeing Employee Community Fund

o Children Count Foundation

o City of Seattle Office of Arts and Culture

o 4Culture Cultural Facilities

o Eureka Foundation

o Bill & Melinda Gates Foundation

o Joshua Green Foundation

o Home Street Bank

o Horizons Foundation

o Key Bank Foundation

o Key Bank Neighbors Program

o Medina Foundation

o Microsoft

o M.J. Murdock Charitable Trust

o Norcliffe Foundation

o PACCAR Foundation

o SAFECO

o Satterberg Foundation

o Schaar & Whelpton Foundation

o Seattle Foundation

o Stolte Family Foundation

o Starbucks

o Stuart Foundation

o US Bank

o Washington State Building Communities Fund

o Washington State Building for the Arts Fund

o Wells Fargo Community Development

o Wyncote Foundation NW

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Collaborative Campaign Structure

Working Group

The strength of this campaign will derive from the shared commitment and purpose of each

partner organization in accomplishing the whole aim of the campaign. A dedicated working

group with staff representation from each partner organization is key to the effective functioning

of the campaign as well as remaining true to the guiding principles behind the campaign. The

working group will be responsible for:

o Assigning responsibilities

o Clarifying expectations around outcomes and benefits

o Determining the joint fundraising plan and assigning the lead organization for specific

funding proposals or solicitations

o Serving as liaison to each board

o Overseeing the campaign plan implementation

Campaign Volunteers

The number of partner organizations suggests a more streamlined approach to utilizing

campaign volunteers. We will recruit three campaign co-chairs, one from each neighborhood, to

bring visibility and credibility to the campaign and to assist with outreach and fundraising.

Additionally, each organization will recruit volunteers who can play specific roles in their

individual fundraising efforts:

o Supporting outreach to foundations and corporations

o Supporting major donor cultivation

o Introducing new prospects

o Supporting the community phase of the campaign

o Hosting cultivation events

o Driving attendance to campaign events


o Lead on housing development for each project

o Oversees the housing development budget and timeline

Partner Organizations

o Lead on community outreach for each project

o Lead on “public phase” of each campaign segment

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Fundraising Structure

1. Once the final shape of the campaign is determined and the partner

organizations have board buy-in and permission to proceed, the working group

will develop a campaign fundraising plan.

2. The plan will forecast the collective fundraising goal as well as appropriate

organizational fundraising goals that are likely to be secured during the final

community phase of each project. Typically the community or public phase

comprises 5%-20% of the total goal. The plan will address contingencies such as

changes in the schedule and/or fundraising progress.

3. A case for support will be developed to provide a common communications

framework for the campaign.

4. Initial fundraising strategy will be focused on identifying major funders and

determining which foundations, corporations and individuals will entertain a

proposal for support of the entire campaign and which will have interest in

specific projects.

5. For each major gift prospect the working group will determine which organization

is best positioned to be the lead on the proposal. Developing the proposals is an

area where resources may be pooled.

6. The working group will chart fundraising progress and adjust strategy as needed.

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300 Homes campaign timeline Black= Fund Development Red= Real Estate Milestones

2015 Wyncote NW Foundation grant of $200,000 to CHH

December 2016 $100,000 Wells Fargo grant for White Center project

City announcement of funding for 925 E. John

March 2017 $250,000 proposal to KeyBank neighbors program

April & May 2017 Campaign proposal to boards of directors

June 2017 Begin Campaign implementation: prospecting, meeting with institutional

funders, explore co-chairs, etc.

Begin formal messaging and communications work

June 19, 2017 Liberty Bank Building groundbreaking

August 15, 2017 Fundraising Plan Complete

September 2017 Five proposals submitted to major funders

Print collateral and messaging released

Late 2017 Public funding for 925 E. John in place

December 2017 $1 Million raised

Q1 2018 925 E. John groundbreaking

All proposals submitted for LBB and 925 E. John

Q3 2018 WA State Building Communities Fund application due

October 2018 Public Phase for Liberty Bank Building

Q1 2019 $3.5 Million raised

Q2 2019 Liberty Bank Building Grand opening

White Center project groundbreaking

Q3 2019 Public phase for 925. E. John

$5 Million raised

925 E. John grand opening

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All proposals submitted for White Center project

2020 White Center public phase

$8.1 Million campaign goal reached

2020/ 2021 White Center grand opening

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SECTION 5:

Returning Board Members

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Current CHH Board Members Seeking Reappointment in April 2017

Dana Behar – seeking reappointment for a 3rd term

Dana leads Discovery Bay, investing primarily in real estate. Prior to Discovery

Bay, he was President and CEO of HAL Real Estate Investments for 23 years,

where he acquired and/or developed residential, office, and retail properties

valued at $1 billion and generated a cumulative return on equity in excess of

20%. Prior to HAL, he led several start-up companies. Dana has a BA in Business

from the University of Washington, an MBA from the Wharton School of

University of Pennsylvania, and an AMDP from the Harvard Graduate School of

Design. Dana serves on the boards of Forterra and the Samis Foundation. He has

served on the downtown Seattle Design Review Board, the Seattle Landmarks Board, and the

Development Committee of Historic Seattle.

Paul Breckenridge – seeking reappointment for a 2nd term

Paul founded BCS in 2007 to help bridge the gap between the organizations that

provide tax credit capital and the developers and service agencies that utilize

that capital. Prior to starting BCS, Paul served as the Western Region Director

for Enterprise Community Investment's Structured Finance Department. At

Enterprise, Paul managed over $160 million in NMTC and Low Income Housing

Tax Credit investment throughout the western US. Paul previously worked as a

developer at the Low Income Housing Institute. Paul is a Returned Peace Corps

Volunteer, having served in Jamaica from 1997-1999. Paul holds an MBA from

the University of Washington, and a BS from Willamette University.

Michael Malone – seeking reappointment for 4th and final term

Michael has been involved in real estate development since the early 1980s.

Today he is known for his focus on historic preservation and growth in the

Pike/Pine Neighborhood. He founded AEI Music Network Inc. in 1971 and built it

into the world's leading multi-national music programming and distribution

company before selling it in 2001. Always passionate about preserving Seattle's

historic architecture, he bought and renovated the Sorrento Hotel in 1981.

Michael has served on many boards and commissions including PONCHO

(Patrons of Northwest Charitable Organization), the University of Washington

TYEE Board of Advisors, the Seattle Police Foundation, and the National Council of the National Trust for

Historic Preservation.

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SECTION 6:

Board Committee

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CHH Board Committee Restructure

March 16, 2017

Overview In response to both increased demand on leadership time and need to improve the efficiency with which we make strategic decisions, we are proposing changes to Board committee frequency and focus. This refocus is an extension of a modest re-organization of staff leadership, reporting, and refinement of the staff bodies where decisions are made. Additionally, although we are committed to democratic principles of leadership, we also recognize that, during a time of projected expansion, our culture must change to allow for quicker and at times unilateral decision making. This document is one of three that outline the full reorganization but covers proposed Board committee changes alone.

Revising Board Committee Schedule and Focus Overall goal: Improve the efficiency and effectiveness of Board level meetings with focus on strategic decisions. Clarify committee roles and streamline to better use Board and staff time. The Board meets monthly per Charter and Municipal Code. Committees meet at the discretion of the Board. CHH currently has six operational committees and is adding a seventh. There are also a number of affiliated entities, a separate foundation and the EcoDistrict. Each board member is required to serve on a committee and each committee is required to have three board members but attendance is demanding and challenging. Furthermore, committees tend to focus on reporting up rather than on strategic decision making. There are currently 78 Board and Committee meetings annually not including affiliated entities or the Foundation Board. The Board and staff propose revising certain committee charters, reducing frequency of meetings, focusing committees on strategy and decision making, and improving the monthly written Board reporting methodology. Only the Executive Committee is referred to specifically in the Charter and Rules but it’s existence remains at the discretion of the Board. A. III S. 5: The Board may designate an Executive Committee and other committees, each consisting of at leaset three Board members…to advice or act for…the Board…

CHH maintains many affiliated and associated entities which act as single asset entities, supporting entities, associated for profit and non profit entities, and a foundation.

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This document does not treat the affiliate and associated entities.

Audit Commttee: Audit committee is a best practice and long established by CHH to recommend hiring auditor, review audits and audit process. The committee meets 4-6 times annually. Chaired by treasurer. Recommendation: No change

Fiannce and Asset Management: Finance Committee is common. Added asset management a few years ago. Is chaired by treasurer. Could meet quarterly. There is no requirment for a montly finance committee meeting or report.

Recommendation: Quarterly meeting. Monthly reporting. High level strategic. Review of financials, trends and dashboard. Approving resolutions regarding Year 15, operational budgets, capital budgets, operational financing, rehab financing. Reviews watch list.

Executive Committee: Common and best practice. Normally made up of officers. Not required but should

continue to meet monthly both to advise CEO and prep for Board meeting.

Recommendation: Monthly meeting. Monthly reporting. High level strategic. Highest level strategic advisement to the CEO. Approves Board agenda. Reveiws governance, board recruitment. Sounding board for highest level HR issues.

Property Management: In the past this committee reviewed things like rent increases by unit. More recently it

has become a higher level committee but the meetings are largely reports from staff.

Recommendation: Quarterly meeting. Monthly reporting. Shifting from day-to-day business operations to focus on resident relations and development. Oversee sustainability efforts in existing portfolio. Staff can meet with external experts as needed when developing new policies or improving business practices.

Property Development: This has been an important committee over the years both for vetting new projects and

debating development philosophy.

Recommendation: Bimonthly meeting. Monthly reporting. [Note: Executive Committee suggested scheduling monthly with option to cancel if no issues are on agenda.] Continue high level vetting of projects and pipeline. Ensure that projects and process conform with policy. Oversee sustainability efforts in new construction.

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Community & External Relations: This is a newer committee and is intended to connect the Board with

external relations and EcoDistrict work. Has largely been a reporting mechanism.

Recommendation: Disband. Combine with new joint Board committee.

NEW Joint Board Committee: Established at recommendation of members of both Boards to improve

communication and connection between Boards. Focus on Board development, recruiting, external relations and CDC work.

Recommendation: Quarterly meeting. Monthly reporting.

Reduction in Meetings, Improved Reporting and Communications, Next Steps Reduction in Meetings These proposed changes will reduce the number of standing meetings by 38% as shown in the chart below.

Committee Current

Frequency

Proposed

Frequency

Change Other Changes

1 CHH Board 12 12 2 Audit 6 6 3 Finance and Asset Management 12 4 4 Executive 12 12 5 Property Management 12 4 6 Property Development 12 6 7 Community and External Relations 12 0 8 Joint Board 0 4

Total 78 48 (38%)

Improved Reporting and Communication

Written Board reports will remain a monthly activity. Each reporting department will provide 2-4 key metrics that will allow the Board to track trends and understand the health of the organization. The reports between meetings no longer need to be in minutes format and can be bullet-pointed for ease reading.

Staff leads will speak monthly with their respective committee chairs to ensure ongoing communication on strategic initiatives and other major items.

Staff will also utilize task forces of board members and other experts to advise on strategic decision making.

In the case that an issue arises that must receive review between quarterly committee meetings, the Executive Committee can be used to hear the issue.

Committee meetings will be scheduled to 90 minutes.

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By implementing these improved reporting and communications methods, we project a better informed Board which will be better positioned to make the significant decisions that we face. Next Steps

1. March/April Introduce to Committees and Full Board 2. May/June Implement new reporting procedures 3. May/June revise committee charters 4. July Board considers adoption of plan and new meeting structure is implemented

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SECTION 7:

Finance & Asset

Management Report;

February 2017 Statements

SEC

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APRIL 2017 FINANCE & ASSET MANAGEMENT BOARD REPORT AND MINUTES Finance & Asset Management Committee Members: Drew Porter, Frank Alvarado, Robert Schwartz Staff Liaisons to the Board: Brad Lange, Jill Fleming (BOLD indicates those members in attendance) Date, time and location of meeting: TUESDAY April 4, 2017 4-5 pm Malden room Minutes: The committee reviewed the monthly financial reports. The rolling twelve-month cash forecast was reviewed. The committee discussed the proposed changes to CHH Board Committee structure. Staff will continue to provide monthly reporting to the committee and the board. The committee decided to change the meeting frequency to every other month with an additional meeting to accommodate the budget process. The FAMC schedule would be: January, March, May, July, September, November, December. The Audit committee would continue to meet as needed subject to audit scheduling which usually is March and May for the entity and CHH audits, and twice in the third or fourth quarter for the state audit. The committee also reviewed the Bond Inducement Resolution for the Liberty Bank Building project and a formal guaranty resolution for the 412 Apartments that the lender requires. Both resolutions will be presented for approval at the April board meeting. Jill updated the committee on the interviews for the Director of Finance position. No change from prior month – Management anticipates that the Year 15 transaction for the Oleta Apartments Limited Partnership, originally expected to occur on December 31, 2016, will occur in 2017 instead. The transaction has been delayed pending resolution of the state excise tax issue. Comments and Analysis re: February 28, 2017 CHH Blended Balance Sheet Unrestricted Cash position increased over the prior month by $400,000. Due from Affiliates decreased month over month as two months’ payments were received due to a delay in billing which occurred in February rather than January. Other Assets have been reclassified against Notes Payable due to a change in accounting standards. Notes payable increased due construction draws for the Mary Ruth Manor rehabilitation; and draws for Liberty Bank Building predevelopment expenses. Net Position reflects a GAAP presentation and has decreased by $212,380. Comments and Analysis: Year to date February 28, 2017 Operating Statement Tenant Revenue is under budget as the rent increases at the two HUD buildings with significant rent

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adjustments pending are still in process and have not been approved. We expect them to be approved in April. (A third significant increase at Helen V was approved in February. Helen V is a discrete component unit and not included in this report.) Vacancy loss for the portfolio is 2.8% for the first two months of 2017. Vacancy loss for 2016 was 2.8%. Vacancy loss for 2015 and 2014 was 2.8% and 3.8% respectively. Development fee income of $200,000 is a cash flow payment from Twelfth Avenue Arts Housing. An additional $100,000 cash flow payment from the Twelfth Avenue Arts commercial entity was made in March. Grants & Donations is ahead of budget as the Capitol Hill Housing Foundation was able to grant funds to CHH earlier in the year than anticipated. Payroll, Taxes and Benefits are under budget due to several open positions. Hiring is taking longer in this market but when we do hire we are facing upward pressure on compensation. This positive variance is unlikely to last. Other variances in expenses for the first two months of 2017 have been reviewed and are primarily timing differences.

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Blended Balance Sheet

2.28.2017

unaudited

12.31.2016

unaudited*

12.31.2015

audited**

Assets

Unrestricted Cash 1,920,996 1,549,698 1,402,774

Accounts Receivable 400,521 432,445 340,450

Prepaids & Other Current Assets 96,506 145,836 160,196

Contributions/Grants Receivable 0 42,667 44,520

Due from Affiliates 5,219,215 5,145,054 4,975,743

Board Designated Operating Reserve 1,000,000 1,000,000 1,000,000

Board Designated Opportunity Reserve 653,191 651,507 643,976

Restricted Cash 5,657,186 5,605,330 4,558,940

Notes Receivable from Affiliates 15,411,829 15,411,829 16,381,921

Land 14,643,757 14,643,757 12,634,826

Buildings, Improvements & Equipment 73,051,608 72,907,605 60,719,596

Accumulated Depreciation (37,457,113) (37,090,735) (31,527,724)

Lease Receivable 870,165 890,908 912,402 Investment in LPs/LLCs 1,550,010 1,510,099 640,472 Other Assets 0 0 187,682 Total Assets 83,017,871 82,846,000 73,075,774

Liabilities

Notes Payable 52,669,683 52,279,359 43,777,452

Accrued Interest Payable 4,431,674 4,422,778 3,914,328

Accounts Payable & Accrued Liabilities 4,771,248 4,786,564 4,011,248

Tenant Security Deposit Liability 562,825 562,478 501,478

Total Liabilities 62,435,430 62,051,179 52,204,506

Net Position 20,582,441 20,794,821 20,871,268

Total Liabilities and Net Assets 83,017,871 82,846,000 73,075,774

*El Nor, Harrison and Union James are included in 2016 and 2017.

Updated for closing entries made since previous report.

**internal presentation, certain amounts netted for audit presentation

4/6/2017 1:06 PM CHH balance sheet for 2.28.2017.xlsxPage 45

Capitol Hill Housing Improvement Program

Blended Operating Statement

From 1/1/2017 through 2/28/2017

Year to Date

Actual

Year to Date

Budget

Year to Date

Budget

Variance Variance Pct Total Budget

Budget

Remaining

Revenue

Tenant Revenue 1,762,087 1,848,529 (86,442) -4.7% 11,014,194 9,252,107

Other Operating Revenue

Property Management Fees 239,892 249,353 (9,461) -3.8% 1,496,116 1,256,224

Partnership Management Fees 81,511 67,724 13,787 20.4% 271,938 190,427

Development Fees 200,000 300,000 (100,000) -33.3% 913,343 713,343

Acctg, Leasing & Compliance Fees 136,662 143,996 (7,334) -5.1% 863,979 727,317

Other Operating Revenue 3,209 2,683 526 19.6% 16,100 12,891

Total Other Operating Revenue 661,274 763,756 (102,482) -13.4% 3,561,476 2,900,202

Other Revenue

Grants & Donations 146,039 0 146,039 0.0% 868,500 722,461

Interest Income 1,693 0 1,693 0.0% 162,623 160,930

Other Income 11,627 5,290 6,337 119.8% 31,741 20,114

Total Other Revenue 159,359 5,290 154,069 2912.5% 1,062,864 903,505

Total Revenue 2,582,720 2,617,575 (34,855) -1.3% 15,638,534 13,055,814

Expenses

Accounting, Audit & Legal 96,700 99,973 3,273 3.3% 487,349 390,649

Administrative Expenses 58,559 64,410 5,851 9.1% 416,977 358,418

Bad Debt 393 680 287 42.2% 13,082 12,689

Board Expense 408 700 292 41.7% 8,350 7,942

CHH Occupancy Expense 40,307 40,608 301 0.7% 305,445 265,138

Compliance, Taxes & License 14,843 6,177 (8,666) -140.3% 191,661 176,818

Consulting 8,699 11,917 3,218 27.0% 75,300 66,601

Debt Service 441,577 428,593 (12,984) -3.0% 2,560,872 2,119,295

Insurance 49,752 43,923 (5,829) -13.3% 263,537 213,785

Leasing/Compliance Expense 46,453 46,453 0 0.0% 278,716 232,263

Other Operating Expense 1,203 0 (1,203) 0.0% 2,304 1,101

Payroll, Taxes and Benefits 929,157 954,748 25,591 2.7% 6,026,342 5,097,185

Partnership Mgmt Fee Expense 31,719 32,780 1,061 3.2% 196,683 164,964

Property Mgmt Fee Expense 164,012 170,008 5,996 3.5% 1,020,043 856,031

Repair and Maintenance 233,581 261,793 28,212 10.8% 1,609,185 1,375,604

Technology 20,405 20,052 (353) -1.8% 115,015 94,610

Training, Dues, Subscriptions 23,589 12,793 (10,796) -84.4% 126,145 102,556

Utilities 220,864 223,741 2,877 1.3% 1,344,086 1,123,222

Total Expenses 2,382,221 2,419,349 37,128 1.5% 15,041,092 12,658,871

Operating Surplus (Deficit) B4 Reserves 200,499 198,226 2,273 1.1% 597,442 396,943

Reserve Contributions

Replacement Reserve (82,540) (82,159) (381) 0.5% (487,600) (405,060)

Operating Reserve (4,889) (4,889) 0 0.0% (28,084) (23,195)

Other Reserve (1,737) (767) (971) 126.6% (4,600) (2,863)

Total Reserve Contributions (89,166) (87,815) (1,352) 1.5% (520,284) (431,118)

Operating Surplus (Deficit) 111,333 110,411 921 0.8% 77,158 (34,175)

4/6/2017 1:07 PM Page 46

Bank CHH Blended Component Unit Type Balance

Chase Larned Reserves 66,958

Chase 412 Reserves 115,011 Total Chase 181,969

KeyBank Capitol Hill Housing Security Deposit 288,016

KeyBank Capitol Hill Housing - SoundFamilies Restricted Savings 43,882

KeyBank Hazel Plaza Reserves 148,510

KeyBank Hazel Plaza Security Deposit 3,494

KeyBank Larned Security Deposit 21,993

KeyBank Byron Wetmore Reserves 40,828

KeyBank Byron Wetmore Security Deposit 9,005

Key Bank 412 Security Deposit 3,770

KeyBank Holden Vista Reserves 60,198

KeyBank Holden Vista Security Deposit 3,517

KeyBank Mary Ruth Manor Reserves 178,999

KeyBank Mary Ruth Manor Security Deposit 5,692

KeyBank EJSH Security Deposit 11,458

KeyBank Fleming Apts LP Security Deposit 22,698

KeyBank Gilman Court LP Reserves 98,546

KeyBank Gilman Court LP Security Deposit 19,754

KeyBank Villa Apts LP Reserves 101,715

KeyBank Villa Apts LP Security Deposit 44,214

KeyBank El Nor LP Security Deposit 8,383

KeyBank El Nor LP Reserve 560,115

KeyBank El Nor LP Capital Reserves 183,044

KeyBank 18th Ave Apartments Security Deposit 1,915

KeyBank Harrison Security Deposit 20,071 KeyBank Ponderosa Reserves 390,616

KeyBank Ponderosa Security Deposit 3,722

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

KeyBank 12th Avenue Arts Master Tenant LLC Reserves 971

Key Bank Union James Security Deposit 4,203

Key Bank Union James Reserves 41,566

Total KeyBank 2,388,492

Banner Berneva Reserves 8,079

Banner Seneca Reserves 223,875

Banner Seneca Security Deposit 20,707

Total Banner 252,661

LGIP Capitol Hill Housing Reserves 2,389,535

Total LGIP 2,389,535

Oppenheimer EJSH Escrow 22,184

Oppenheimer EJSH Reserves 86,786

Total Oppenheimer 108,970

Chase Harrison Reserves 142,562

Total Chase 142,562

US Bank 18th Ave Apartments Reserves 132,241

Total USBank 132,241

BofA Fleming Apts LP Reserves 60,754

Total BofA 60,754

Total Restricted - CHH Blended Components 5,657,186

LGIP Capitol Hill Housing Board Designated Reserves 1,653,191

Total Designated 1,653,191

Key Bank Capitol Hill Housing EQII 67,325

Total Union Bank 67,325

KeyBank Capitol Hill Housing M/M Savings -

KeyBank Capitol Hill Housing Payroll -

KeyBank Capitol Hill Housing Operating Checking 621,592

KeyBank Capitol Hill Dev. Assoc Operating Checking 2,201

KeyBank Capitol Hill Real Estate Mgmt Services Operating Checking 24,021

KeyBank Hazel Plaza Operating Checking 19,820

KeyBank Larned Operating Checking 63,976

KeyBank Byron Wetmore Operating Checking 22,099

KeyBank 412 Operating Checking 34,623

KeyBank Holden Vista Operating Checking 35,102

KeyBank Mary Ruth Manor Operating Checking 59,633

Beneficial States Bank Mary Ruth Manor Construction Op 41

KeyBank EJSH Operating Checking 57,375

KeyBank Fleming Apts LP Operating Checking 35,294

KeyBank Gilman Court LP Operating Checking 50,633

KeyBank Villa Apts LP Operating Checking 114,704

KeyBank El Nor LP Operating Checking 154,995

KeyBank 18th Ave Apartments Operating Checking 8,096

KeyBank Harrison Operating Checking 46,847

KeyBank Ponderosa Operating Checking 29,643 KeyBank Haines Operating Checking -

KeyBank 12th Ave Arts Development Operating Checking 49,739

KeyBank 12AA Master Tenant LLC Operating Checking 81,318

KeyBank Union & 24th Construction 31,286

KeyBank Union James 42,348

Total KeyBank 1,585,385

Cash Various Petty Cash - CHHIP 100

Total Petty Cash 100

CHH

CASH IN BANK

FOR THE MONTH ENDING: FEB 2017

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CHH

CASH IN BANK

FOR THE MONTH ENDING: FEB 2017

Banner Berneva Operating Checking 12,874

Banner Seneca Operating Checking 255,312

KeyBank Union & 24th Construction -

Total Banner 268,186

Total Unrestricted - CHH Blended Components 1,920,996

Total All Cash - CHH Blended Components 9,231,374

Bank Discrete Component Unit Type Balance

Chase Oleta Reserves 164,448

Chase Woodland Park Ave LLC Reserves 142,711

Chase AAA Security Deposit 5,693

Chase AAA Reserves 614,809

Total Chase 927,661

KeyBank Broadway & Pine Reserves 322,172

KeyBank Broadway & Pine Security Deposit 24,713

KeyBank Helen V Apts LLC Reserves 320,295

KeyBank Helen V Apts LLC Security Deposit 6,821

KeyBank Holiday Apts Security Deposit 21,969

KeyBank Jefferson & 12th Reserves 280,049

KeyBank Jefferson & 12th Security Deposit 40,691

KeyBank Oleta Security Deposit 23,791

KeyBank Pantages Apts LLC Security Deposit 27,127

KeyBank Silvian Security Deposit 7,010

KeyBank SOPI / Unity Village Reserves 186,331

KeyBank SOPI / Unity Village Security Deposit 16,400

KeyBank Woodland Park Ave LLC Security Deposit 12,556

KeyBank 12th Avenue Arts Housing Security Deposit 79,644

KeyBank 12th Avenue Arts Housing Reserves 590,953

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

KeyBank 12th Avenue Arts Associates LLC 201,959

KeyBank 12th Avenue Arts Associates LLC 12AA Key Fee Reserve Account 250,443

KeyBank Squire Park Plaza Security Deposit 58,578

KeyBank Squire Park Plaza Reserves 40,875 Total KeyBank 3,062,454

Bank of NY Mellon Trust Co 12th Avenue Arts Associates LLC 12AA 108 Loan Guaranteed Loan Funds Account 20,317

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

Total Bank of NY Mellon Trust Co 20,317

UnionBank Holiday Reserves 183,141

Total UnionBank 183,141

US Bank Pantages Apts LLC Reserves 526,085

US Bank Silvian Reserves 475,557 Total USBank 1,001,642

Total Restricted - Discrete Components 5,195,215

Chase AAA Operating Checking 32,889

Chase AAA Construction -

Total Chase 32,889

KeyBank Oleta Operating Checking 24,518

KeyBank Helen V Apts LLC Operating Checking 19,526

KeyBank Pantages Apts LLC Operating Checking 71,164

KeyBank Silvian Operating Checking 79,464

KeyBank Broadway & Pine Operating Checking 27,248

KeyBank Woodland Park Ave LLC Operating Checking 9,861

KeyBank Holiday Apts Operating Checking 51,680

KeyBank SOPI / Unity Village Operating Checking 50,575

KeyBank Jefferson & 12th Construction 241

KeyBank Jefferson & 12th Operating Checking 128,217

KeyBank Twelfth Avenue Arts Res Operating Checking 289,296

KeyBank Twelfth Avenue Arts Housing LLP 12AA Housing-Construction Checking -

KeyBank 12th Avenue Arts Associates LLC 12AA Commercial-Construction Ckg -

KeyBank 12th Avenue Arts Associates LLC 12AA Commercial Operating (Debt Service) 299,712

KeyBank Squire Park Plaza Operating Checking 166,996 Total KeyBank 1,218,498

Total Unrestricted - Discrete Components 1,251,386

Total All Cash - Discrete Components 6,446,601

Total All Cash - CHH Blended Components 9,231,374

Total All Cash 15,677,975

TOTALS BY BANK

Key Bank 8,254,787$

Chase 1,285,081$

Banner 520,847$

US Bank 1,133,883$

Union Bank 250,466$

Bank of America 60,754$

Beneficial State bank 41$

LGIP 4,042,727$

Other and Petty 129,388$

TOTAL CASH 15,677,975$

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Finance Dashboard

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

cost per

unit

2017

YTD

2016

Vacancy

after

reserves

Mary Ruth Manor 20 36,509 94,287 -61% 42,766 50,295 15% 2,138 4.9% 12.3% 1.7% (28,042)

Union James 24 53,975 56,067 0% 35,387 38,491 0% 1,474 8.2% 9.3% 6.0% 450

Brewster 35 48,699 47,265 3% 35,776 34,471 -4% 1,022 5.9% 6.1% 4.7% 11,014

Fredonia 12 51,049 46,573 10% 22,111 24,919 11% 1,843 8.9% 4.5% 3.1% 16,952

Melrose 30 41,153 42,986 -4% 32,757 29,735 -10% 1,092 2.5% 4.3% 2.2% 2,989

Berneva 12 19,151 17,490 10% 11,681 15,492 25% 973 8.5% 4.2% 2.4% 5,278

Four Twelve 12 29,150 29,933 -3% 16,042 20,061 20% 1,337 0.0% 3.8% 6.2% 10,708

Lincoln Court 29 44,918 44,239 2% 26,615 25,128 -6% 918 3.5% 3.8% 4.1% 1,426

Holden Vista 16 38,835 38,359 1% 27,271 33,103 18% 1,704 6.3% 3.5% 8.9% 10,328

Joe Black Apartments 24 51,387 51,083 1% 32,187 37,986 15% 1,341 3.5% 3.5% 5.4% 12,632

Miller Park 12 22,728 22,718 0% 16,212 16,008 -1% 1,351 0.0% 3.5% 2.8% 1,335

Centennial 30 56,181 57,426 -2% 45,047 28,574 -58% 1,502 4.6% 3.2% 2.9% (8,678)

Gilman Court 25 51,619 50,583 2% 41,358 39,256 -5% 1,654 2.1% 2.9% 3.6% 8,595

El Nor 55 95,780 96,415 -1% 94,235 75,946 -24% 1,713 5.0% 2.5% 1.2% (18,556)

Bremer 49 71,851 69,756 3% 42,283 46,753 10% 863 1.8% 2.0% 2.4% 12,625

Devonshire 62 94,109 93,308 1% 65,283 67,472 3% 1,053 0.3% 2.0% 1.9% 2,829

Villa 62 119,178 119,901 -1% 82,859 79,939 -4% 1,336 2.1% 1.8% 1.4% (1,442)

Elizabeth James 60 101,926 100,662 1% 74,260 64,368 -15% 1,238 1.7% 1.3% 2.4% 2,303

Eighteenth Avenue 9 20,830 20,017 4% 10,762 11,987 10% 1,196 0.0% 1.0% 0.0% 2,831

Fleming 36 54,360 53,561 1% 28,859 32,917 12% 802 0.0% 0.7% 1.5% 8,472

Park Hill 30 67,253 69,458 -3% 39,822 42,086 5% 1,327 1.0% 0.5% 2.9% 16,794

Hazel Plaza 16 44,803 71,820 -38% 24,099 32,590 26% 1,506 0.0% 0.4% 4.9% (1,421)

Larned 33 52,816 51,043 3% 30,542 29,077 -5% 926 0.9% 0.4% 1.0% 20,621

John Carney 27 37,181 35,755 4% 26,816 26,758 0% 993 0.0% 0.2% 2.5% 3,449

Boylston Howell 30 55,522 51,719 7% 38,375 38,667 1% 1,279 0.0% 0.0% 1.4% 16,649

Broadway 5 10,632 10,345 3% 4,584 6,376 28% 917 0.0% 0.0% 0.0% 3,698

Burke Gilman Gardens 15 30,790 29,694 4% 21,676 22,411 3% 1,445 0.0% 0.0% 1.5% (14,037)

Byron Wetmore 12 22,305 21,620 3% 14,096 18,705 25% 1,175 0.0% 0.0% 1.9% 1,943

Casa di Cinque 5 13,107 12,796 2% 5,904 7,841 25% 1,181 0.0% 0.0% 1.9% 6,304

Four Ten 6 8,985 8,960 0% 4,569 6,778 33% 761 0.0% 0.0% 2.4% 2,750

Harrison at 15th 19 61,850 61,122 1% 36,293 37,620 4% 1,910 0.0% 0.0% 1.4% 837

Maxwell 4 7,293 7,027 4% 3,359 4,679 28% 840 0.0% 0.0% 0.0% 2,921

Ponderosa 23 35,525 33,766 5% 25,617 29,835 14% 1,114 0.0% 0.0% 4.7% 7,495

Seneca 32 55,624 54,415 2% 44,360 44,956 1% 1,386 0.0% 0.0% 1.5% 994

1,607,077 1,672,167 1,103,861 1,121,278 123,046

Discrete Component Units:

Helen V 38 84,486 113,464 -26% 53,441 58,405 8% 1,406 6.1% 8.9% 4.4% 8,526

Squire Park Plaza 60 202,485 191,059 6% 80,195 88,634 -10% 1,337 5.5% 4.9% 3.3% 49,539

Twelfth Avenue Arts 88 153,787 156,438 -2% 78,170 69,634 -12% 888 3.9% 4.3% 1.7% 10,591

Holiday 30 60,858 56,426 8% 28,590 36,927 23% 953 3.3% 3.3% 2.7% 10,671

Unity Village 30 48,661 48,623 0% 45,661 47,573 4% 1,522 1.2% 3.1% 5.3% 814

Oleta 34 51,541 51,487 0% 38,518 37,089 -4% 1,133 2.9% 2.9% 2.7% (5,060)

Silvian 32 61,985 61,127 1% 63,060 66,290 5% 1,971 2.9% 2.9% 3.7% (20,777)

Broadway Crossing 44 72,387 72,555 0% 64,058 58,666 -9% 1,456 1.2% 2.1% 2.9% (3,900)

Pantages 49 83,811 82,035 2% 64,601 62,393 -4% 1,318 2.2% 1.4% 2.6% 221

Haines AAA 30 56,206 54,472 3% 38,873 44,762 13% 1,296 0.5% 0.5% 3.8% 3,606

Fremont Solstice 18 33,410 34,005 -2% 33,660 28,724 -17% 1,870 0.0% 0.0% 1.3% (11,433)

Jefferson Housing 40 83,468 83,056 0% 52,530 52,588 0% 1,313 0.0% 0.0% 0.9% (2,131)

1364 993,086 1,004,748 641,358 651,685 40,667

Income YTD Op expenses B4 Debt 2017 Op 2017 CF

Year to Date at February 28, 2017

2017

February

Monthly

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SECTION 8:

Resolution 2017-06:

412 Apartments Financing SEC

TIO

N 8

Page 51


Page 52

1

RESOLUTION

ADOPTED AT A MEETING OF

THE BOARD OF DIRECTORS

OF

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM,

A WASHINGTON PUBLIC CORPORATION

(Four Twelve Apartments Financing)

RESOLUTION 2017-06

BACKGROUND

WHEREAS, Capitol Hill Housing Improvement Program, a Washington public corporation (“the

Corporation”), is 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 of Washington with an area of

operation focused on the Capitol Hill community of the City of Seattle;

WHEREAS, the purpose of the Corporation shall be to assist homeowner, 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;

WHEREAS, the Corporation nominates five (5) of the nine (9) member of the board of Central City

Affordable Housing, a Washington nonprofit corporation (“Central City”), which is the owner of a

residential apartment project known as Four Twelve Apartments located at 412 25th Ave. S., Seattle, WA

98144 (the “Project”);

WHEREAS, Central City desires to renovate the Project to extend its useful life with proceeds from a

construction phase loan (“Construction Phase Loan”) and a term loan (“Term Loan”) in the amount of up to

$475,000 from Banner Bank (the “Bank”) to be secured by the Project. The Construction Phase Loan

together with the Term Loan shall be the “Banner Loan”.

WHEREAS, a condition of the Banner Loan to Central City is that the Corporation guaranty the

Construction Phase Loan and certain nonrecourse carve-outs under the Term Loan and further execute and

deliver the Hazardous Waste Warranty and Indemnification Agreement.

WHEREAS, the Corporation will materially benefit from the renovation of the Project, both as the

project manager, overseeing the rehabilitation and receiving a project management fee and through

continuing to serve as the property manager of the Project;

WHEREAS, the Corporation deems it to be in the best interest of the Corporation to execute such

documents and to take such actions as may be required to facilitate the closing of the Banner Loan.

NOW, THEREFORE, BE IT RESOLVED by the Board of the Corporation as follows:

RESOLUTIONS

1. RESOLVED that the Corporation is authorized, empowered and directed to execute and deliver

such documents as may be required for the Corporation to guaranty the Construction Phase Loan

and the nonrecourse carve-outs under the Term Loan, including but not limited to the

Page 53

2

Commercial Guaranty, substantially in the form attached hereto and the Hazardous Waste

Warranty and Indemnification Agreement.

2. FURTHER RESOLVED that the Corporation is authorized, empowered and directed to

undertake such further acts and to execute and deliver such other documents as may be

deemed reasonably necessary or proper in order to carry into effect any of the provisions of

these Resolutions; provided, however, that no such acts and things shall materially change the

economic terms of the transactions described herein.

3. FURTHER RESOLVED that any and all acts authorized pursuant to these Resolutions and

performed prior to the passage of these Resolutions are hereby ratified and affirmed, that these

Resolutions shall remain in full force and effect and the Bank may rely on these Resolutions until

written notice of their revocation shall have been delivered to and received by the Bank. Any

such notice shall not affect any of the Corporation's agreements or commitments in effect at the

time notice is given.

4. FURTHER RESOLVED, Corporation has considered the value to itself of the Banner Loan to

Borrower, and the Corporation represents to the Bank that the Corporation is benefitted by the

Banner Loan.

5. FURTHER RESOLVED that any and all documents hereby authorized to be executed on behalf

of the Corporation are authorized to be executed or taken by any two of the following individuals

or their duly appointed successors (the “Authorized Representatives”):

Name: Title: Signature:

Catherine Hillenbrand Chair ____________________

Robert Schwartz Vice Chair ____________________

Selomé Teshome Secretary ____________________

Drew Porter Treasurer ____________________

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

action on behalf of the Corporation, as such Authorized Representatives may deem necessary to

effectuate the foregoing.

CERTIFICATE

I, Robert P. Schwartz, certify that I am the Vice Chair of Capitol Hill Housing Improvement

Program (the "Corporation) and that the foregoing Resolutions were duly adopted at a meeting of the

Board of Directors of the Corporation held on April 10, 2017, in accordance with the Charter and Rules

and Regulations of the Corporation upon proper notice and at which time a quorum was present and that

the above named officers are officers of the Corporation and occupy the position set opposite their

name.

Dated _________________, 2017 By:______________________________

Name: Robert P. Schwartz

Title: Vice Chair

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SECTION 9:

Resolution 2017-07:

Liberty Bank Building

Bond Inducement

SEC

TIO

N 9

Page 55


Page 56

51596439.1

Draft 3/27/2017

CAPITOL HILL HOUSING IMPROVEMENT PROGRAM

RESOLUTION NO. 2017-07

(LIBERTY BANK BUILDING APARTMENTS PROJECT)

A RESOLUTION of the Capitol Hill Housing Improvement Program

declaring its intention to sell bonds in an amount not to exceed $17,500,000 to

provide financing to Union and 24th Associates LLC, a Washington limited liability

company of which CHHIP is the sole managing member, to finance the acquisition,

construction and rehabilitation of the Liberty Bank Building Apartments within the

City of Seattle, Washington, and determining related matters.

This document was prepared by:

FOSTER PEPPER PLLC

1111 Third Avenue, Suite 3000

Seattle, Washington 98101

(206) 447-4400

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51596439.1


RESOLUTION NO. 2017-07

(LIBERTY BANK BUILDING APARTMENTS PROJECT)

A RESOLUTION of the Capitol Hill Housing Improvement Program

declaring its intention to sell bonds in an amount not to exceed $17,500,000 to

provide financing to Union and 24th Associates LLC, a Washington limited liability

company of which CHHIP is the sole managing member, to finance the acquisition,

construction and rehabilitation of the Liberty Bank Building Apartments within the

City of Seattle, Washington, and determining related matters.

WHEREAS, RCW 35.21.730 provides that a city may form a public corporation “in order

to improve...the general living conditions in the urban areas of the state...”; and

WHEREAS, The City of Seattle (“City”), acting in accordance with RCW 35.21.730,

formed Capitol Hill Housing Improvement Program (“CHHIP”), a public corporation, for such

purposes; and

WHEREAS, RCW 35.21.745 provides that a public corporation may issue bonds and other

instruments; and

WHEREAS, CHHIP has formed Union and 24th Associates LLC, a Washington limited

liability company (the “Borrower”) of which CHHIP is the sole managing member for the purpose

of acquiring, rehabilitating, constructing and operating the Liberty Bank Building Apartments,

located in the in the Capitol Hill neighborhood of the City of Seattle at 2320 E Union Street, in

Seattle, Washington, to provide housing for low-income persons (the “Project”); and

WHEREAS, the estimated cost of acquiring and rehabilitating the Project is not expected to

exceed $32,358,555; and

WHEREAS, CHHIP anticipates that the Borrower will request that CHHIP issue and sell its

revenue bonds for the purpose of assisting the Borrower in financing the acquisition, rehabilitation

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51596439.1

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and construction of the Project; and

WHEREAS, CHHIP desires to provide such assistance if certain conditions are met; and

WHEREAS, Treasury Regulations Section 1.103-8(a)(5) requires that, in order for

expenditures for an exempt facility that are made before the issue date of bonds issued to provide

financing for that facility to qualify for tax-exempt financing, the issuer must declare an official

intent under Treasury Regulations Section 1.150-2 to reimburse any such expenditures from the

proceeds of those bonds, and one of the purposes of this resolution is to satisfy the requirements of

such regulations; NOW, THEREFORE,

BE IT RESOLVED BY THE COUNCIL OF THE CAPITOL HILL HOUSING

IMPROVEMENT PROGRAM, as follows:

Section 1. To assist in the financing of the Project, with the public benefits resulting

therefrom, CHHIP declares its intention, subject to the conditions and terms set forth herein, to issue

and sell its revenue bonds or other obligations (the “Bonds”) in a principal amount of not to exceed

$17,500,000, to use the proceeds of the sale of the Bonds to make a loan to the Borrower, and to

reimburse itself or to permit the Borrower to reimburse itself, as applicable, from proceeds of the

Bonds for expenditures for the Project made by CHHIP or the Borrower before the issue date of the

Bonds.

Section 2. The proceeds of the Bonds will be used to assist in financing the Project, and

may also be used to pay all or part of the costs incident to the authorization, sale, issuance and

delivery of the Bonds.

Section 3. The Bonds will be payable solely from the revenues derived as a result of the

Project financed by the Bonds, including, without limitation, amounts received under the terms of

any financing document or by reason of any additional security furnished by or on behalf of the

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51596439.1

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Borrower in connection with the financing of the Project, as specified by resolution of the CHHIP

Council. The Bonds may be issued in one or more series, and shall bear such rate or rates of

interest, payable at such times, shall mature at such time or times, in such amount or amounts, shall

have such security, and shall contain such other terms, conditions and covenants as shall later be

provided by resolution of the CHHIP Council.

Section 4. The Bonds shall be issued subject to the conditions that (a) CHHIP, the Borrower

and the purchaser(s) of the Bonds shall have first agreed to mutually acceptable terms for the Bonds

and the sale and delivery thereof and mutually acceptable terms and conditions of the loan or other

agreement for the Project, and (b) all governmental approvals and certifications and findings

required by laws applicable to the Bonds first shall have been obtained. The Executive Director of

CHHIP or his or her designee is authorized to seek an allocation of volume cap for the Bonds

from the Washington State Department of Commerce or a transfer of volume cap from the

Washington State Housing Finance Commission, and to seek such other approvals and funding

as may be necessary or desirable in connection with the Project.

Section 5. For purposes of applicable Treasury Regulations, the Borrower is authorized to

commence financing of the Project and advance such funds as may be necessary therefor, subject to

reimbursement for all expenditures to the extent provided herein out of proceeds, if any, of the issue

of Bonds authorized herein. However, the adoption of this resolution does not constitute a

guarantee that the Bonds will be issued or that the Project will be financed as described herein or an

endorsement of the Project by CHHIP. The CHHIP Council shall have the absolute right to rescind

this resolution at any time if it determines in its sole judgment that the risks associated with the

issuance of the Bonds are unacceptable.

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Section 6. It is intended that this resolution shall constitute a declaration of official intent to

reimburse expenditures for the Project made before the issue date of the Bonds from proceeds of the

Bonds, for the purposes of Treasury Regulations Sections 1.103-8(a)(5) and 1.150-2.

Section 7. Any actions of CHHIP or its officers prior to the date hereof and consistent with

the terms of this resolution are ratified and confirmed.

Section 8. This resolution shall be in full force and effect from and after its adoption and

approval.

ADOPTED by the Council of the Capitol Hill Housing Improvement Program at a regular

open public meeting this 10th day of April, 2017.


By: Catherine Hillenbrand, Chair

ATTEST:

_____________________________________

Robert Schwartz, Vice Chair

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51596439.1

CERTIFICATE

I, the undersigned, the duly chosen, qualified and acting Vice Chair of the Council of the

Capitol Hill Housing Improvement Program (“CHHIP”), CERTIFY:

1. That the attached Resolution No. 2017-07 (the “Resolution”) is a true and correct

copy of the resolution of the CHHIP Council, as adopted at a meeting of the CHHIP Council held

on April 10, 2017, and duly recorded in the minute books of CHHIP.

2. That such meeting was duly convened and held in all respects in accordance with

law, and, to the extent required by law, due and proper notice of such meeting was given; that a

quorum was present throughout the meeting and a majority of the members of the CHHIP Council

present at the meeting voted in the proper manner for the adoption of the Resolution; that all other

requirements and proceedings incident to the proper adoption of the Resolution have been duly

fulfilled, carried out and otherwise observed, and that I am authorized to execute this Certificate.

IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of April, 2017.

___________________________________________

Robert Schwartz, Vice Chair

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SECTION 10:

Property Action Plans

SEC

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Page 64

BUILDING PROFILE NAME: Hazel Plaza Apartments ADDRESS: 2021 E. John Seattle, WA 98112 UNITS: 16 total 4-1 bed, 10-2 bed, 2-3 bed BUILT/RENOV.: Built 1971 Renovated 1990 DATE OF ACQ.: 9/18/1990

TYPE: Acq. Rehab FINANCING: City and State loans INCOMES SERVED: 30% — Sec. 8 SIGNIFICANT DATE: N/A D C R @ 12/31/12: N/A PORTFOLIO ASSESSMENT: Quadrant I— Star

FINANCIALS as of 12/31/12

Property Per Unit CHH Portfolio Ext. Entrance Grp.

Revenue:

Gross Potential Residential Rent: $145,752 $9,110 $8,876 $10,017

Less Vacancy Loss & concessions -795 -50 -304 -304

Total Residential Rent Revenue 144,957 -9,060 8,572 9,713

Other Revenue

Commercial Income 0 0 443 101

Other Income 2,131 133 329 175

Total Other Revenue 2,131 133 772 276

Total Revenue 147,088 9,193 9,343 9,989

Expenses

Administrative 40,372 2,523 2,788 3,011

Utilities 22,270 1,392 1,112 1,340

Operating and maintenance 32,170 2,011 1,613 1,716

Taxes and insurance 11,268 704 657 747

Total Operating Expense 106,080 6,630 6,170 6,814

Operating Surplus (Deficit) 41,008 2,563 3,173 3,175

Partnership Expenses and Debt Service

Partnership Expenses 0 0 -167 -56

Debt Service 0 0 -1,919 -1,451

Total Partnership Expenses and Debt Service 0 0 -2,086 -1,507

Operating Surplus (Deficit) B4 Reserves 41,008 2,563 1,087 1,668


Replacement Reserve -12,480 -780 -524 -508

Operating Reserve 0 0 -41 -22

Total Reserve Contributions -12,480 -780 -566 -530

Operating Surplus (Deficit) 28,528 1,783 522 1,139

Hazel Plaza Apartments PROPERTY ACTION PLAN December 26, 2013


FINANCIAL SUSTAINABILITY

Year 1-2 Years 3-4 Years 5-7 Total

Rehab Planned N/A N/A N/A Capital Exp. Pending

Replacement Reserve Balance Annual Replacement Reserve Financial Sustainability Score

Hazel Plaza Apts $26,849 $12,480 2.15

CHH Portfolio Avg. $110,362 $14,286 3.77 Page 65

MISSION ALIGNMENT SCORE

Loc. Afford. HUD or

Family

Comm.

Indoor

Comm.

Outdoor

Playground

or P-Patch

Pot. to

Add

Pedestrian

Oriented

Building

Design

Total

Hazel Plaza 3 2 2 1 2 0 1 2 3 16

Portfolio Avg. 2.6 3.1 0.8 0.7 1.4 1.1 1.0 2.6 2.4 14.0

ACTION PLAN: Steps to improve Financial Performance: Continue to monitor expenses. Steps to improve Mission Alignment: Renovation will increase resident satisfaction. Evaluate laundry machines for improvement. Steps to improve Financial Sustainability: A new loan is in process for Hazel Plaza which will provide funds for a renovation of the exterior and interior of the project. Timetable and goal for improvements: Renovation to start QII 2014.

TURNOVER RATE

% Avg. Length of Tenancy Income Avg. Age of HH

Hazel Plaza 0% N/A N/A N/A

Portfolio Avg. 18% 4.3 years $20,155 40.3 years

COMMENTS: Hazel Plaza paid $17,582/$1,099 PU of Capital Expenditures from cash flow, these were added back to the bottom

line for the Portfolio Assessment. No units turned in 2012. The property did very well on the survey, achieving the highest overall score, as well as the high score on each

grouping of questions. QUOTE: -”I am very happy living at Hazel Plaza. Apt is very well kept up. Manager Don Young is attentive to my needs, I have a great manager.”— survey respondent

RESIDENT SURVEY RESULTS: Port. Avg. Response Rate 69% 48% Avg. score for all questions: 4.56/5.0 4.13 Mgmt. & maintenance questions: 4.73/5.0 4.20 Satisfaction w/ apt. questions: 4.52/5.0 4.17 Sense of community questions: 4.50/5.0 4.01

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BUILDING PROFILE NAME: Melrose Apartments ADDRESS: 1520 Melrose Ave Seattle, WA 98122 UNITS: 30 total 30 studio BUILT/RENOV.: Built 1916 Renovated 1993 DATE OF ACQ.: 8/21/91

TYPE: Acq. Rehab FINANCING: City, Bank loans INCOMES SERVED: 30%, 50% AVG. HOUSEHOLD INC. $19,038 SIGNIFICANT DATE: N/A D C R @ 12/31/12: 1.58 PORTFOLIO ASSESSMENT: Quadrant I— Star


Property Per Unit CHH Portfolio Med Brick Group

Revenue:


Less Vacancy Loss & concessions -10,057 -335 -304 -394

Total Residential Rent Revenue 201,010 6,700 8,572 8,043

Other Revenue


Other Income 6,917 231 329 236


Total Revenue 207,927 6,931 9,343 8,365

Expenses

Administrative 75,788 2,526 2,788 2,457

Utilities 32,178 1,073 1,112 978






Partnership Expenses 0 -167 -90

Debt Service -32,688 -1,090 -1,919 -2,046

Total Partnership Expenses and Debt Service -32,688 -1,090 -2,086 -2,137

Operating Surplus (Deficit) B4 Reserves 10,249 342 1,087 860



Operating Reserve -2,000 -67 -41 -52


Operating Surplus (Deficit) 4,649 155 522 348

Melrose Apartments PROPERTY ACTION PLAN December 26, 2013




$5,000 fencing $30,000 roof $26,000 exterior paint $61,000 Capital Exp. Pending


Melrose Apts $60,419 $3,600 1.00



Loc. Afford. HUD or

Family

Comm.

Indoor

Comm.

Outdoor

Playground

or P-Patch

Pot. to

Add

Pedestrian

Oriented

Building

Design

Total

Melrose 3 4 0 0 1 0 0 3 3 14

Portfolio Avg. 2.6 3.1 0.8 0.7 1.4 1.1 1.0 2.6 2.4 14.0

ACTION PLAN: Steps to improve Financial Performance: Explore ways to decrease turnover such as unit improvements. Consider incentives such as rent inducements to encourage residents to stay. Steps to improve Mission Alignment: Continue to hold resident events to build community. Evaluate laundry for potential improvement to increase resident satisfaction. Consider improvements to garbage area. Steps to improve Financial Sustainability: Consider increasing reserves if cash flow allows. Timetable and goal for improvements: Work with manager to address issues brought up in survey.

TURNOVER RATE


Melrose 30% 3.9 years $20,855 32.1 years


COMMENTS: Net Income in the Portfolio Assessment included $8,944/$298PU of excess property management fee. Melrose is 100% studios which contributes to the fourth highest turnover rate in the CHH portfolio. The survey

indicated residents are relatively satisfied with the building. A large construction project is underway next door to the Melrose which may cause disruption during 2014-2015. QUOTE: -”I am very impressed by CHH and the building manager.“— survey respondent

RESIDENT SURVEY RESULTS: Port. Avg.

Response Rate 47% 48% Avg. score for all questions: 4.15/5.0 4.13 Mgmt. & maintenance questions: 4.21/5.0 4.20 Satisfaction w/ apt. questions: 4.25/5.0 4.17 Sense of community questions: 4.29/5.0 4.01

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BUILDING PROFILE NAME: Mary Ruth Manor ADDRESS: 100 20th Ave E Seattle, WA 98112 UNITS: 20 total 4-1 bed, 8-2 bed, 8-3 bed BUILT/RENOV.: Built 1970 Renovated 1995 DATE OF ACQ.: 9/8/94

TYPE: Acq. Rehab FINANCING: Bond, City loan INCOMES SERVED: 30% — Sec. 8 AVG. HOUSEHOLD INC. $20,226 SIGNIFICANT DATE: N/A D C R @ 12/31/12: 1.37 PORTFOLIO ASSESSMENT: Quadrant I— Star


Property Per Unit CHH Portfolio Ext. Entrance Grp

Revenue:


Less Vacancy Loss & concessions -9,810 -491 -304 -304

Total Residential Rent Revenue 220,560 11,028 8,572 9,713

Other Revenue


Other Income 4,342 217 329 175


Total Revenue 224,902 11,245 9,343 9,989

Expenses

Administrative 72,430 3,622 2,788 3,011

Utilities 29,057 1,453 1,112 1,340






Partnership Expenses 0 0 -167 -56

Debt Service -39,681 -1,984 -1,919 -1,451

Total Partnership Expenses and Debt Service -39,681 -1,984 -2,086 -1,507

Operating Surplus (Deficit) B4 Reserves 27,962 1,398 1,087 1,668



Operating Reserve 0 0 -41 -22


Operating Surplus (Deficit) 9,962 498 522 1,139

Mary Ruth Manor PROPERTY ACTION PLAN December 26th, 2013




$90,000 Siding repairs $32,000 Roof $35,000 Interior flooring, park-

ing lot

$157,000 Capital Exp. Pending


Mary Ruth Manor $107,355 $18,000 0.75



Loc. Afford. HUD or

Family

Comm.

Indoor

Comm.

Outdoor

Playground

or P-Patch

Pot. to

Add

Pedestrian

Oriented

Building

Design

Total

Mary Ruth Manor 3 3 2 1 2 0 0 2 2 15

Portfolio Avg. 2.6 3.1 0.8 0.7 1.4 1.1 1.0 2.6 2.4 14.0

ACTION PLAN: Steps to improve Financial Performance: Minimize vacancy loss by increasing resident retention, rapidly leasing vacant units, and quick unit turns. Continue to operate the property with a close eye on expenses. Steps to improve Mission Alignment: Laundry will be evaluated for potential improvements to increase resident satisfaction. Replace hall carpets. Training staff on cleaning laundry machines and add new folding table. Continue to hold resident events. Steps to improve Financial Sustainability: Continue to explore creative ways to address physical improvement needs. Monitor the physical condition to prevent problems from getting worse to the degree possible. Explore alternative ownership structures to address capital needs. Timetable and goal for improvements: Continue to operate and evaluate options when major capital repair is necessary.

TURNOVER RATE


MRM 15% 4.8 years $12,396 43.0 years


COMMENTS: Capital Exp. of $3,681/$184PU from cash flow were added back to the bottom line for the Portfolio Assessment Mary Ruth Manor has substantial capital needs including new siding and windows but very few resources to pay

for improvements. The property would not support a large enough loan even with a rent adjustment to complete the repairs necessary, so a new loan and rehab ala Hazel Plaza is not feasible.

The response rate on the survey was 25%, substantially below the 48% overall response rate, limiting the useful-ness of the results. That said, the property received high scores on all questions from those that did respond.

QUOTE: -”Don is one of the best site managers I have ever met. He is always helpful and answers any questions I have.”— survey respondent

RESIDENT SURVEY RESULTS: Port. Avg.

Response Rate 25% 48% Avg. score for all questions: 4.68/5.0 4.13 Mgmt. & maintenance questions: 4.67/5.0 4.20 Satisfaction w/ apt. questions: 4.705.0 4.17

Sense of community questions: 4.65/5.0 4.01

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SECTION 11:

Consent Agenda and

Attachments SEC

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Page 72

CAPITOL HILL HOUSING REGULAR MEETING April 10, 2017

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


CONSENT ITEMS

MINUTES AND REPORTS 1. March 2017 Draft Board Meeting Minutes (attached for adoption) 2. Tenant Communications Tracking (attached for review) 3. Committee Reports and Minutes (attached for acceptance)

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

Blended

Date Bldg/entity Contract with: Amount: Purpose

March 16,

2017 CHH WeGoWise $11,032

WeGoWise contract

for WeGoPro Tier 1

subscription for CHH

units. WeGoWise is a

utility tracking tool for

efficiency &

sustainability.

Page 73


Page 74

REGULAR BOARD MEETING MINUTES Pike-Pine Room


March 13, 2017 Members Present: Frank Alvarado, Dana Behar, Derrick Belgarde, Rachel Ben-Shmuel, Paul Breckenridge, Paige Chapel, Bob Fikso, Cathy Hillenbrand, b.g. Nabors-Glass, Drew Porter, Alice Quaintance, Rob Schwartz, Eric Snow Members Absent: Liz Dunn, Michael Malone, Selomé Teshome Staff Present: Kiley Dhatt (taking minutes), Jill Fleming, Brad Lange, Stacey McQuade, Chris Persons, Michael Seiwerath, Jeremy Wilkening The meeting was called to order by Cathy Hillenbrand at 6:02 pm. A motion to approve the Consent Agenda was made by Rachel Ben-Shmuel, seconded by Dana Behar, and passed unanimously. Disclosures and recusals: There were no disclosures or recusals.

Presentation and Discussion Report back from D.C.: Chris Persons gave a presentation reporting on what he learned during his recent trip to Washington, D.C. with the HPN Policy Committee. He covered areas of concern and potential impact of federal legislation for our work; HPN goals; the outlook for funding the major programs CHH uses to fund our buildings; the potentially good news for our work; and the bottom line for the predicted changes. Paige Chapel suggested that something the Board needs to be thinking about is what CHH’s response will be to the fact that the communities we serve will be hit hardest by these cuts, beyond just looking at our bottom line. Drew Porter asked if the conversation in D.C. had touched at all on planning for the less likely but more disastrous outcomes as well. Chris said that largely they did not discuss the worst-case scenario, and the focus seemed to be on the improbability of the massive cuts that have been proposed. Paul Breckenridge advocated that CHH do some forecasting to see what our financing options will be on existing projects under the worst-case scenario. Chris agreed to look into this and share back with the Board. 2017/18 Financial Outlook: Jill Fleming gave a presentation on the financial outlook of CHH for the next two

years.

Page 75

CHH Branding and Service Area: Chris reminded the Board that at the last meeting, we introduced the idea of increasing our service area and rebranding. We had some next steps which involved talking to our attorney; talking to Councilmember Tim Burgess; reaching out to the Mayor to gauge interest; and then reaching out to stakeholders to have them weigh in. Our attorney explained that it is possible to expand our service area, but we need the Mayor to sign off on it. Jill and Chris are meeting with Tim Burgess on Thursday, who is excited about this idea, and who will hopefully discuss the idea with the Mayor. Partnership Discussion: The CHH Board entered into an executive session at 6:46 pm pursuant to RCW 42.30.110 (1) (b) “to consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price.” The Board exited the executive session at 6:48 pm.

Executive Committee and Board Board Development: Cathy introduced the slate of board members up for reelection, on whom the Board will vote in April. She shared that Mayor Murray has suggested Brady Walkinshaw for a mayor-nominated seat. Chris and Cathy have also had conversations with Chasten Fulbright and Shalimar Gonzalez about their interest in joining the CHH Board. Cathy shared that this is Paige Chapel’s last board meeting, as she is leaving the Board. Chris introduced a resolution recognizing Paige Chapel’s immense service to the CHH Board, and declaring March 13, 2017 “Paige Chapel Day.” A motion to adopt Resolution 2017-05: Recognizing Paige Chapel’s Service to Capitol Hill Housing was made by Alice Quaintance, seconded by Rachel Ben-Shmuel, and passed unanimously. Joint Board Committee: Kiley Dhatt introduced the idea for a joint board development committee. The proposed committee would serve the purpose of better aligning the work of the CHH PDA and Foundation Boards, and cover three main areas: board development (prospective board member identification and recruitment); professional development (such as training in the areas of finance and racial equity); and social events (such as the annual joint boards summer barbeque and building tours for board members). The plan is to vote on this proposal in April. Chris explained that he and Kiley will be conducting a larger review of the Board committees and presenting a greater proposal for restructuring the committees and making them more efficient. Introduction: Working Outside the City: CHH will need a resolution from its own Board, Seattle City Council and King County Council authorizing our work outside the City in White Center. However, it is likely that we will continue to work in communities outside of Seattle, and therefore it would make sense to get blanket permission to do so. Our attorney has proposed to the City that we create a blanket resolution naming the particular cities or areas where CHH would like to work. The City could adopt this resolution, and then when CHH wants to work in one of these areas, we would only need approval from the governing body of that area. Hopefully we will have an actual resolution with language from our attorney to vote on next month. Introduction: District Parking and Garage Technology: Chris explained that the Sustainability Team has been working on the concept of shared parking, which is the idea that we can link structured underground parking facilities together virtually to create a broader pool of parking stalls for people coming to Capitol Hill, with the ultimate goal of a positive environmental effect. Part of this process was coming up with the technology to sense whether a car was parked in a particular stall, and creating a system to usefully process this information. Alex Brennan, our staff person leading this project, is going to come to next month’s Board meeting and give a detailed presentation on this issue.

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Finance and Asset Management

Finance and Asset Management Report: Drew Porter presented the regular Finance and Asset Management Report to the Board. A motion to accept the March Finance and Asset Management Report was made by Drew Porter, seconded by Rob Schwartz, and passed unanimously. Director of Finance Update: Jill explained that CHH will be contracting with an executive search firm to assist with the search for the Director of Finance. Ratification of Construction Loan Guaranty on the 412: Brad Lange explained that the 412 Apartments are being re-clad and the 412 LLC has taken a loan for this work. CHH is the guarantor on the loan, which is activity the Board must ratify. A motion to ratify the 412 construction loan guaranty was made by Alice Quaintance, seconded by Dana Behar and passed unanimously. Property Presentations: As part of an initiative to get Board members better acquainted with residents and the CHH portfolio, Heyward Watson presented a report on the El Nor, 18th Avenue, and the Ponderosa apartments. Resolution 2017-03: Jill Fleming explained that CHH has an operating line of credit, which is for general purposes. We have had an operating line of credit for many years, once with KeyBank, and now with Banner Bank. Resolution 2017-03 would authorize the renewal of this line of credit for one year. Having the credit line primarily provides a safety net when cash flow is variable. Use of the line is governed by Board policy. We do not expect the terms to change, although we don’t have the paperwork back from Banner Bank yet. Drew added that FAM Committee discussed whether it made sense to increase the limit of the existing line, and decided that with our stable financial state, there would be no benefit to doing so. A motion to adopt Resolution 2017-03: Authorization for Predevelopment Funds for the Resyndication of Ponderosa, El Nor and 18th Avenue was made by Paul Breckenridge, seconded by Rachel Ben-Shmuel, and passed unanimously. Resolution 2017-04: Jeremy Wilkening explained that this resolution would authorize predevelopment spending on the White Center project, funds for which have already been granted by Wells Fargo. A motion to adopt Resolution 2017-04: Authorization for Predevelopment Funds for White Center was made by Alice Quaintance, seconded by Rachel Ben-Shmuel, and passed unanimously. The meeting was adjourned by Cathy Hillenbrand at 7:26 pm.

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Page 78

Tenant Communications Tracking

April 10, 2017

Building Issue Status Resolution

Broadway Crossing Contesting charges for lock replacement

Open: 1/23/2017 - tenant served 10-day for balance owed for broken locks from 12/2015 ($608.95). 12/9/2015 - Tenant indicated to HA that they would be filing a grievance with Heyward. 10/11/2016 - Tenant served 10-day for payment of damages. Residents have not submitted a grievance for lock charges as of 3/09/2017.

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Page 80

APRIL 2017 PROPERTY MANAGEMENT BOARD REPORT AND MINUTES Property Management Committee Members: B.G. Nabors-Glass, Chasten Fulbright, Derrick Belgarde Staff Liaisons to the Board: Heyward Watson and Dianne Moreland. (BOLD indicates those members in attendance) Date, time and location of meeting: April 4, 2017 1:00 – 2:00 pm Belmont Conference Room Date, time and location of next meeting: June 6, 2017 - 1:00 – 2:00 pm Belmont Conference Room Date, time and location of next meeting: July 5, 2017 – 1:00 – 2:00 pm Belmont Conference Room Current Capital Projects in Process/Pending:

Brewster Apartments; Contract signed with Cadence Construction on 8/10/16, contractor to replace all windows with U value of 0.28, replace two building entry doors & side lights, and attic insulation installed to provide R-49 value. Progress Contractor has made actual field measurements/design checks, and placed order with VPI (window manufacturer). Currently waiting for final quote, order confirm, and delivery lead-time on finish product delivery. Update: New windows are on order with VPI. Brewster has been invoiced by Cadence Construction for down payment. Cadence Construction is now setting up and beginning work. Weekly meetings on-site with contractor are scheduled for Wednesdays at 1:30 – 3:00. Update: New Window apartment insulation is in process and completion is expected by the end December 2016. New entry door installation is expected by end of February 2017. Latest Update: Window installation is 100% complete, entry doors are on order should arrive in 4 weeks. A small amount of exterior work remains which requires dry weather. Attic insulation is moving forward arched.

Boylston Howell Apartments; Contract being signed with McBride Construction to assist WJE with opening exterior walls in strategic locations to inspect for any underlying problems and conditions. Update: Phase two of assessment is scheduled for October 11 & 12. Update: Exploratory work is near completion. Work was delayed by weather. Update: Water intrusion work is complete and Asset Management will review and make recommendation for any needed repairs with a timeline. Latest Update: Report concludes the building exterior system has reached the end of its useful life and needs to be replaced within the next two to three years. Asset Management will work on a plan to finance this work.

John Carney Apartments; Contract is being signed with McBride Construction to assist WJE with opening exterior walls in strategic locations to inspect for any underlying problems and conditions. Update: Phase two of assessment is scheduled for November 17 & 18. Update: Exploratory work of phase 2 is completed. To be followed by report of findings and recommendations. Update: Water intrusion work is complete and Asset Management will review results and make recommendation for needed repairs with a timeline. Update: The report concludes the exterior wall system has failed and needs to be replaced. The building is being evaluated as a candidate for syndication. Latest Update: Entry doors are being ordered right now, Lee Stanton is working on final details.

Villa Apartments; Contract is being signed with McBride Construction to assist WJE with opening exterior walls in strategic locations to inspect for any underlying problems and conditions. Update: Phase two of assessment was completed on September 8 and report was sent to Asset Management for further maintenance recommendation and repair work be performed in 2019. Latest Update: Further review of the final report concluded the exterior wall system is performing as intended and recommended recoating the siding and re-caulking around all penetrations. Work is scheduled to be completed in 2017.

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Four Twelve Apartments; Commitment letter for a $475,000 Construction to Permanent loan is signed with Banner Bank. Construction contract being negotiated with Buchanan General Contracting Company. Projected loan closing is late April with construction starting in May. Scope includes new roof, exterior siding repairs and paint, and adding a restroom for the building manager.

Resident Services

Residents Services held 39 events last month

68 residents were helped individually through Resident Services

Kelley-Ross Senior Drug Education o 3 Residents met one-on-one with Pharmacist o 15 residents attended health presentations on blood pressure and diabetes

Rental Assistance o 10 residents applied for rental assistance o 7 residents attended Financial Fitness workshop o 2 residents received assistance

NEAR Program o 15 Mentor/Resident Meetings o 2 New Resident Intakes

Third Party Management

CHH is in continued discussions with SHA in response to their RFP for property management services for Bayview Tower. We are moving forward with transitioning the management to CHREMS with a new target date of April 1, 2017. In process of negotiating the management fee with SHA. Latest Update: The target date for transitioning the property management to CHREMS is now July 1, 2017. CHH has received a draft LOI from SHA and continues to negotiate several points.

Building Operations From the Finance report: Year to date February 28, 2017 Blended Operating Statement.

The YTD Portfolio Vacancy rates is down to 2.8%.

The 12 Month Rolling Vacancy number is down to 2.7%.

The February (monthly) Portfol9io is down to 2.7% Leasing & Occupancy Board Report Information: Phone Calls

Phone calls 547

On average call last 5-20 minutes, estimated time spent returning calls:

Estimated Minutes per Month hours Work Days

Low 5 mins. 2735 45 6

High 10940 182 23 5 minutes is the low since you must listen to the message, take a number, call back and leave a message at minimum.

Front Desk January 24th we started tracking how many potential clients and customers we helped.

Signed in 239

Page 82

Denials and Withdrawals

Denials 141

Withdrawals 7

60 days or > Vacancy Non-HUD

Building Average # of Units to-date

Reason

Broadway Crossing 85 2 Unit was not ready, manager no longer with us

Unity Village 173 2 One unit 6 denials and 1 Withdrawal, other 1 denial

60 days or > Vacancy Non-HUD

Building Average # of Units to-date

Reason

412 91 1 2 denials, 50 applicants contacted from WL

*Applicants have 72 hours to enter into a lease agreement, their move-in must occur 14 days to move-in.

Page 83


Page 84


Dashboard

For the period ending: 2/28/2017

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 Month YTD Monthly YTD M M YTD 2016 A A A

Type HUD Buildings Units Actual Inc Budget Var %

Actual Exp (before

debt service) Budget Var %

Op exp/unit -

YTD (Before

Res)

Feb

2017

2017 YTD

Vac Loss

2016 vac

loss

Cash Flow after

reserves and

debt service

Occupancy

Rate

Occupancy Rate

12 mth trendRepl Res

Y or N

Op Res

Y or N

Average Unit

Turnaround Time

DCR 2015

Actual

DCR 2014

Actual

DCR 2013

Actual

Reserve Balance -

3/27/2017

Operating Reserve

Balance 3/27/2017

Cash budgeted into

CHH budget

Comments

Blended Berneva 12 19,151 17,490 10% 11,681 15,492 25% 973 8.5% 4.2% 2.4% 5,278 91.7% 97.2% Y 43 2.28 1.61 2.18 $3,060 $6,589

Blended Boylston Howell 30 55,522 51,719 7% 38,375 38,667 1% 1,279 0.0% 0.0% 1.4% 16,649 100.0% 99.4% Y 0.93 0.98 1.09 $69,302 $10,548

Blended Bremer 49 71,851 69,756 3% 42,283 46,753 10% 863 1.8% 2.0% 2.4% 12,625 98.1% 95.5% Y 57 1.47 1.60 1.25 $131,574 $69,389

Blended Brewster 35 48,699 47,265 3% 35,776 34,471 -4% 1,022 5.9% 6.1% 4.7% 11,014 93.8% 95.4% Y Y 45 3.09 2.30 3.20 $294,449 $316,735

Blended Broadway 5 10,632 10,345 3% 4,584 6,376 28% 917 0.0% 0.0% 0.0% 3,698 100.0% 100.0% Y Y 2.65 1.82 1.76 $23,756 $13,620

Blended Burke Gilman Gardens 15 30,790 29,694 4% 21,676 22,411 3% 1,445 0.0% 0.0% 1.5% (14,037) 100.0% 100.0% Y Y 1.79 1.42 0.88 $94,437 $34,648 Annual debt service paid beginning of year

Blended Byron Wetmore 12 22,305 21,620 3% 14,096 18,705 25% 1,175 0.0% 0.0% 1.9% 1,943 100.0% 99.8% Y Y 1.65 4.64 1.35 $37,815 $3,597

Blended Casa di Cinque 5 13,107 12,796 2% 5,904 7,841 25% 1,181 0.0% 0.0% 1.9% 6,304 100.0% 98.1% Y *** *** *** $21,970 $11,922

Blended Centennial 30 56,181 57,426 -2% 45,047 28,574 -58% 1,502 4.6% 3.2% 2.9% (8,678) 93.3% 97.5% Y Y 34 1.39 1.22 1.12 $49,200 $23,705 Bad drain line resulting in extensive repair - will be reserved

Blended Devonshire 62 94,109 93,308 1% 65,283 67,472 3% 1,053 0.3% 2.0% 1.9% 2,829 99.7% 98.7% Y 34 4.17 7.57 4.56 $210,430 $43,038

Blended HUD Eighteenth Avenue 9 20,830 20,017 4% 10,762 11,987 10% 1,196 0.0% 1.0% 0.0% 2,831 100.0% 100.0% Y 1.29 1.15 1.14 $118,615 $866

Discrete HUD El Nor 55 95,780 96,415 -1% 94,235 75,946 -24% 1,713 5.0% 2.5% 1.2% (18,556) 98.2% 98.8% Y Y 44 1.84 1.67 1.69 $562,865 $183,044Two full turns (cabinets, appliances, flooring), rodent issues, &

elevator repair - turns will be reserved

Blended HUD Elizabeth James 60 101,926 100,662 1% 74,260 64,368 -15% 1,238 1.7% 1.3% 2.4% 2,303 98.3% 98.2% Y Y 49 1.37 0.88 1.51 $86,810 $0

Blended Fleming 36 54,360 53,561 1% 28,859 32,917 12% 802 0.0% 0.7% 1.5% 8,472 100.0% 99.0% Y Y 48 1.36 0.79 1.06 $48,569 $12,185

Blended Four Ten 6 8,985 8,960 0% 4,569 6,778 33% 761 0.0% 0.0% 2.4% 2,750 100.0% 99.0% Y 51 ** ** 2.49 $87,176 $43,428

Blended HUD Four Twelve 12 29,150 29,933 -3% 16,042 20,061 20% 1,337 0.0% 3.8% 6.2% 10,708 100.0% 94.0% Y Y 91 ** ** 2.30 $90,256 $0

Blended Fredonia 12 51,049 46,573 10% 22,111 24,919 11% 1,843 8.9% 4.5% 3.1% 16,952 92.6% 98.1% Y Y 1.68 1.37 1.54 $29,189 $117,032

Blended Gilman Court 25 51,619 50,583 2% 41,358 39,256 -5% 1,654 2.1% 2.9% 3.6% 8,595 97.8% 97.2% Y Y 47 1.47 1.78 1.75 $72,948 $6,353

Blended Harrison at 15th 19 61,850 61,122 1% 36,293 37,620 4% 1,910 0.0% 0.0% 1.4% 837 100.0% 99.5% 1.03 1.03 1.10 $55,426 $81,267

Blended HUD Hazel Plaza 16 44,803 71,820 -38% 24,099 32,590 26% 1,506 0.0% 0.4% 4.9% (1,421) 100.0% 96.4% Y 1.21 ** ** $150,031 $0 New rent increase still pending with HUD

Blended HUD Holden Vista 16 38,835 38,359 1% 27,271 33,103 18% 1,704 6.3% 3.5% 8.9% 10,328 93.8% 93.1% Y 60 - 1.71 0.51 $60,778 $0

Blended Joe Black Apartments 24 51,387 51,083 1% 32,187 37,986 15% 1,341 3.5% 3.5% 5.4% 12,632 95.8% 96.3% Y 1.34 2.14 1.97 $5,620 $50,410

Blended John Carney 27 37,181 35,755 4% 26,816 26,758 0% 993 0.0% 0.2% 2.5% 3,449 100.0% 97.6% Y Y 36 1.81 1.31 1.35 $43,843 $54,954

Blended Larned 33 52,816 51,043 3% 30,542 29,077 -5% 926 0.9% 0.4% 1.0% 20,621 100.0% 99.4% Y Y ** ** ** $46,472 $21,313

Blended Lincoln Court 29 44,918 44,239 2% 26,615 25,128 -6% 918 3.5% 3.8% 4.1% 1,426 96.6% 95.9% Y Y 54 0.99 0.69 1.09 $24,772 $5,825

Blended HUD Mary Ruth Manor 20 36,509 94,287 -61% 42,766 50,295 15% 2,138 4.9% 12.3% 1.7% (28,042) 95.0% 98.8% Y 28 1.63 1.22 2.11 $180,988 $0 Rent increase still pending with HUD; audit fee; vacancies

Blended Maxwell 4 7,293 7,027 4% 3,359 4,679 28% 840 0.0% 0.0% 0.0% 2,921 100.0% 100.0% Y 4.30 3.51 2.51 $857 $25,145

Blended Melrose 30 41,153 42,986 -4% 32,757 29,735 -10% 1,092 2.5% 4.3% 2.2% 2,989 96.7% 97.6% Y Y 43 1.43 1.95 1.73 $49,172 $51,886

Blended Miller Park 12 22,728 22,718 0% 16,212 16,008 -1% 1,351 0.0% 3.5% 2.8% 1,335 100.0% 98.0% Y Y 59 1.33 0.99 1.16 $187,659 $31,810 Extra garbage charge this month

Blended Park Hill 30 67,253 69,458 -3% 39,822 42,086 5% 1,327 1.0% 0.5% 2.9% 16,794 100.0% 96.9% Y 2.37 2.38 1.76 $70,892 $78,925

Blended HUD Ponderosa 23 35,525 33,766 5% 25,617 29,835 14% 1,114 0.0% 0.0% 4.7% 7,495 100.0% 96.1% Y *** *** *** $281,553 $0

Blended Seneca 32 55,624 54,415 2% 44,360 44,956 1% 1,386 0.0% 0.0% 1.5% 994 100.0% 98.5% Y Y 2.57 2.67 2.82 $218,967 $5,615 High electric bill (winter)

Blended HUD Union James 24 53,975 56,067 0% 35,387 38,491 0% 1,474 8.2% 9.3% 6.0% 450 91.7% 95.2% 42 N/A $42,266 $0 High utilities & vacancies

Blended Villa 62 119,178 119,901 -1% 82,859 79,939 -4% 1,336 2.1% 1.8% 1.4% (1,442) 98.1% 98.5% 45 1.31 1.46 1.24 $90,054 $14,315 Audit paid at beginning of year

1,607,077 1,672,167 1,103,861 1,121,278 123,046

Discrete Broadway Crossing 44 72,387 72,555 0% 64,058 58,666 -9% 1,456 1.2% 2.1% 2.9% (3,900) 99.1% 97.7% 84 2.37 1.27 1.37 $202,467 $110,548 WSHFC paid in Jan, YWCA case management fee paid at beginning of year

Discrete Fremont Solstice 18 33,410 34,005 -2% 33,660 28,724 -17% 1,870 0.0% 0.0% 1.3% (11,433) 100.0% 98.2% Y 0.98 0.96 1.32 $61,343 $81,968SHA tenant overincome causing rent to drop to unit AMI rent (almost half); WSHFC

fee; YWCA annual case management fee, garage door repair

Discrete HUD Haines AAA 30 56,206 54,472 3% 38,873 44,762 13% 1,296 0.5% 0.5% 3.8% 3,606 100.0% 98.2% Y Y 3.57 * * * $106,509 $509,588

Discrete HUD Helen V 38 84,486 113,464 -26% 53,441 58,405 8% 1,406 6.1% 8.9% 4.4% 8,526 97.4% 96.5% Y Y 146 1.14 1.03 1.16 $212,088 $110,390

Discrete Holiday 30 60,858 56,426 8% 28,590 36,927 23% 953 3.3% 3.3% 2.7% 10,671 96.7% 96.1% Y Y 177 1.39 1.07 1.00 $55,589 $128,592

Discrete Jefferson Housing 40 83,468 83,056 0% 52,530 52,588 0% 1,313 0.0% 0.0% 0.9% (2,131) 100.0% 99.3% Y 1.20 1.14 1.02 $69,601 $211,761 WSHFC paid in Jan; garage door repairs; HVAC repair

Discrete Oleta 34 51,541 51,487 0% 38,518 37,089 -4% 1,133 2.9% 2.9% 2.7% (5,060) 97.1% 96.7% Y Y 163 1.30 0.84 1.02 $165,781 $0 Window cleaning in 2016 budget paid in Jan

Discrete Pantages 49 83,811 82,035 2% 64,601 62,393 -4% 1,318 2.2% 1.4% 2.6% 221 98.0% 98.0% Y Y 36 1.82 1.52 1.47 $351,447 $177,080

Blended HUD Silvian 32 61,985 61,127 1% 63,060 66,290 5% 1,971 2.9% 2.9% 3.7% (20,777) 96.9% 96.6% Y 77 1.56 1.10 1.45 $314,643 $163,599

Discrete Squire Park Plaza 60 202,485 191,059 6% 80,195 88,634 -10% 1,337 5.5% 4.9% 3.3% 49,539 95.6% 97.6% 51 * $42,510 $0

Discrete Twelfth Avenue Arts 88 153,787 156,438 -2% 78,170 69,634 -12% 888 3.9% 4.3% 1.7% 10,591 96.1% 98.0% Y 40 1.88 **** **** $158,974 $435,645

Discrete Unity Village 30 48,661 48,623 0% 45,661 47,573 4% 1,522 1.2% 3.1% 5.3% 814 99.4% 95.5% Y 173 ** ** ** $76,898 $110,526

1,364 993,086 1,004,748 641,358 651,685 $40,667

* not calculated due to CHH minority position

** no debt service

*** no debt

**** interim financing in place

Page 85


Page 86

APRIL 2017 FUNDRAISING AND COMMUNICATIONS MEMORANDUM

To: Capitol Hill Housing Board of Directors CC: Christopher Persons From: Michael Seiwerath

Grants and Donations

Recent weeks have again brought significant grant activity.

Activity over the last month includes:

Working with our partners at Centerstone, SCIDPda and the Historical Central Area Arts & Cultural District we submitted a request to Enterprise for $100,000 to support Cultural and Climate Resilience. Our request specifically asked for funding to pay staff and contracted artists to plan and implement cultural ecodistricts in three neighborhoods.

An LOI to KeyBank Foundation requesting funding for the Liberty Bank Building was approved. We have submitted a full request for $250,000 to support the creation and retention of small businesses at the Liberty Bank Building.

Representatives from the Satterberg Foundation visited 12th Avenue Arts on April 3rd in support of our request for $300,000 over 3 years for the Capitol Hill EcoDistrict. They have invited a full proposal in May 2017 for funding which would begin in 2018.

We submitted a request for $15,000 to Union Bank Foundation in support of furthering our 2017 development pipeline.

The Foundation is now at 62.6% of our annual unrestricted fundraising goal.

Events

CHH Annual Meeting & Stakeholder Briefing This event returns on April 18 from 9 -10:30am in the Pike Pine room at 12th Avenue Arts, and is an opportunity for staff to brief supporters on past and future activities.

Top of the Town Top of the Town takes place on Thursday, April 27 at the Sorrento Hotel. Cynthia Parker, the CEO of Bridge Housing, will be our guest speaker. Sponsorship for the event has reached $105,000 committed versus a goal of $110,000. While this represents a high water mark for this event, we are planning to meet or exceed our goal by the time of the event. Tickets are NOW available for purchase. Board members and CHH Executive staff are encouraged to attend. As always, we expect Top of the Town to sell out. Individual tickets are $200 each. Those wanting to attend should email Meghan Becker: [email protected]

Online Day of Giving Capitol Hill Housing Foundation is NOT participating in “Give Big” in 2017. Instead, we continue to plan an internal online Day of Giving to benefit Capitol Hill Housing. Staff continues to refine the vision for this event, which is likely to be held in Autumn of this year.

Omnivorous We continue to refine the vision for this event, and are considering a number of new venues. The tentative date of Thursday, September 28th, 2017 has become somewhat more tentative as our search for the perfect venue expands. We plan to have the date and location locked within the next 3 weeks.

Page 87

Capital Campaign A working group representing all partner organizations in the Central Area, Capitol Hill, and White Center has begun meeting. Joan Caine has been under contract to facilitate this early planning and has drafted A Framework for a Collaborative Campaign. A larger Steering Committee including board and staff from both organizations is meeting on April 7 to review the Framework. This framework, which includes a draft timeline, will be introduced to the CHH Board on April 10. The fundraising goal of approximately $8.1 Million has not changed. As noted above, a $250,000 proposal has been submitted to KeyBank.

Communications The big news story for the month is still that Seattle City Council officially approved the nation’s first Renters’ Commission. The idea, first championed by the Capitol Hill Community Council, saw its momentum grow last year at our Gearshift Community Forum, the Capitol Hill Renter Summit and through the organizing work of the Capitol Hill Renter Initiative. The attention now turns to getting renters to apply for the commission, but the EcoDistrict is already thinking about how we can better represent commercial renters in our neighborhood. The EcoDistrict also hosted a great event

CHH continues to lead the Community Package Coalition, in their effort to secure an adequate community benefits package (including funding for affordable housing) from the gigantic Washington State Convention Center Addition Expansion. Look for more news from the Coalition in the coming weeks, as the next Seattle Design Commission meeting is coming up on April 20th. Tensions in the Central District are still high after a series of incidents in the neighborhood. CHH provided a written statement to media after Omari Garrett the father of Wyking Garrett, made anti-Semitic comments on camera. Wyking Garrett is CEO of Africatown and one of our Liberty Bank partners. We clarified that Omari is not a member of the Liberty Bank partnership and that the statements go against the values of CHH and our partnership. We continue to monitor the situation, but expect to see more coverage of the incident in the press. The Stranger and Seattle Weekly were the latest outlets to weigh in. Finally, our site at 923 E. John at the Capitol Hill light rail station was highlighted by SDOT in Urban Land Magazine as an example of how the agency can partner with the community to prioritize surplus land for affordable housing.

Date Title Outlet

14-Mar Liberty Bank project pushes back on Seattle gentrification

Puget Sound Business Journal

14-Mar Convention Center addition is a bittersweet deal for Seattle MyNorthwest.com

14-Mar Capitol Hill tenant rights group wants your voice to support Seattle Renters’ Commission legislation Capitol Hill Seattle Blog

14-Mar Nikkita Oliver’s run for mayor: housing, education, and ending the ‘school-to-prison pipeline’ Capitol Hill Seattle Blog

15-Mar AMERICA'S FIRST RENTERS' COMMISSION MAY START UP IN SEATTLE StrongTowns

16-Mar CHH Top of the Town April 27

Daily Journal of Commerce

20-Mar Council approves Seattle Renters' Commission Capitol Hill Times

Page 88

https://www.strongtowns.org/journal/2017/3/15/americas-first-renters-commission-may-start-up-in-seattle


http://citylivingseattle.com/Content/News/City-News/Article/Seattle-creates-nation-s-first-renters-commission/22/167/91833


https://capitolhillecodistrict.org/small-businesses-also-need-renters-commission/

http://seattle.curbed.com/2017/2/28/14666134/convention-center-expansion-public-benefit-housing

http://www.capitolhillseattle.com/2017/03/big-bust-raises-tensions-at-midtown-center/

https://www.capitolhillseattle.com/2017/04/2067217902/

http://www.thestranger.com/slog/2017/04/03/25054619/central-district-activist-tells-jewish-uncle-ikes-owner-to-go-back-to-germany-so-nazis-can-get-him-again?utm_source=Daily+Slog&utm_campaign=556992b6cc-EMAIL_CAMPAIGN_2017_04_03&utm_medium=email&utm_term=0_67f93c78f9-556992b6cc-133032109&mc_cid=556992b6cc&mc_eid=2c91bfa2b5

http://www.seattleweekly.com/news/seattle-is-showing-a-double-standard-on-anti-semitism/

http://urbanland.uli.org/development-business/building-success-tod-seattle-st3/


http://www.bizjournals.com/seattle/news/2017/03/14/liberty-bank-building-project-gentrification.html

http://mynorthwest.com/572071/washington-convention-center-addition/

http://www.capitolhillseattle.com/2017/03/capitol-hill-tenant-rights-group-wants-your-voice-to-support-seattle-renters-commission-legislation/

http://www.capitolhillseattle.com/2017/03/capitol-hill-tenant-rights-group-wants-your-voice-to-support-seattle-renters-commission-legislation/

http://www.capitolhillseattle.com/2017/03/nikkita-olivers-run-for-mayor-housing-education-and-ending-the-school-to-prison-pipeline/

http://www.capitolhillseattle.com/2017/03/nikkita-olivers-run-for-mayor-housing-education-and-ending-the-school-to-prison-pipeline/


http://www.djc.com/news/re/12098457.html

http://www.capitolhilltimes.com/Content/News/News/Article/Council-approves-Seattle-Renters-Commission/26/337/4781

20-Mar Amid Eviction Protests, a Larger Question Looms for the Central District: What's Happening to MidTown Center? The Stranger

20-Mar Facing rental crisis, Seattle creates a renters’ commission to explore new laws Seattle Times

21-Mar Seattle City Council approves nation’s first Renters’ Commission Capitol Hill Seattle blog

20-Mar Seattle Renters Are Getting A Commission The Urbanist

20-Mar Amid Eviction Protests, a Larger Question Looms for the Central District: What's Happening to MidTown Center? The Stranger

26-Mar Seattle Parks study next step in flipping switch on safer Cal Anderson lighting Capitol Hill Seattle blog

26-Mar Chamber ramps up campaign for expanded Capitol Hill Business Improvement Area Capitol Hill Seattle Blog

24-Mar Big bust raises tensions at Midtown Center Capitol Hill Seattle blog

27-Mar Learn how to advocate for Capitol Hill street safety on Sunday Capitol Hill Seattle blog

28-Mar You might be able to move into your new Capitol Hill Station apartment in 2019 Capitol Hill Seattle blog

2-Apr Toddler survives fall from Pike apartment building window Capitol Hill Seattle Blog

3-Apr Seattle creates nation's first renters' commission City Living Seattle

3-Apr Another ugly incident at 23rd and Union Capitol Hill Seattle Blog

3-Apr Building on Success of TOD in Seattle with ST3 Urban Land

4-Apr Central District Activist Tells Jewish Uncle Ike's Owner to "Go Back to Germany" So Nazis Can "Get" Him Again The Stranger

5-Apr In 2013, Central District Activist Omari Tahir-Garrett Also Told a Man to Go Back to Asia The Stranger

Page 89

http://www.thestranger.com/slog/2017/03/20/25030548/amid-eviction-protests-a-larger-question-looms-for-the-central-district-whats-happening-to-midtown-center


http://www.seattletimes.com/business/real-estate/facing-rental-crisis-seattle-creates-a-renters-commission-to-explore-new-laws/

http://www.seattletimes.com/business/real-estate/facing-rental-crisis-seattle-creates-a-renters-commission-to-explore-new-laws/

http://www.capitolhillseattle.com/2017/03/seattle-city-council-approves-nations-first-renters-commission/

https://www.theurbanist.org/2017/03/20/seattle-renters-getting-commission/



http://www.capitolhillseattle.com/2017/03/seattle-parks-study-news-step-in-flipping-switch-on-safer-cal-anderson-lighting/

http://www.capitolhillseattle.com/2017/03/seattle-parks-study-news-step-in-flipping-switch-on-safer-cal-anderson-lighting/

http://www.capitolhillseattle.com/2017/03/chamber-ramps-up-campaign-for-expanded-capitol-hill-business-improvement-

http://www.capitolhillseattle.com/2017/03/chamber-ramps-up-campaign-for-expanded-capitol-hill-business-improvement-

http://www.capitolhillseattle.com/2017/03/big-bust-raises-tensions-at-midtown-center/

http://www.capitolhillseattle.com/2017/03/learn-how-to-advocate-for-capitol-hill-street-safety-on-sunday/

http://www.capitolhillseattle.com/2017/03/you-might-be-able-to-move-into-your-new-capitol-hill-station-apartment-in-2019/

http://www.capitolhillseattle.com/2017/03/you-might-be-able-to-move-into-your-new-capitol-hill-station-apartment-in-2019/

https://www.capitolhillseattle.com/2017/04/toddler-survives-fall-from-pike-apartment-building-window/


https://www.capitolhillseattle.com/2017/04/2067217902/




http://www.thestranger.com/slog/2017/04/04/25055881/in-2013-central-district-activist-omari-tahir-garrett-also-told-a-man-to-go-back-to-asia

http://www.thestranger.com/slog/2017/04/04/25055881/in-2013-central-district-activist-omari-tahir-garrett-also-told-a-man-to-go-back-to-asia

2017 Capitol Hill Housing budget and actuals

Updated April 5, 2017

Unrestricted Budget

Income Source 2017 Goal 2017 Actual % to Goal

Government $ $ 0 0.0%

Foundation $ 241,100 $ 145,000 60.1%

Corporate $ 179,500 $ 140,340 78.2%

Individual $ 188,000 $ 110,494 58.8%

Events & Sponsorships $ 212,500 $ 118,000 55.5%

TOTAL $ 821,100 $ 513,834 62.6%

Restricted Budget


Government $ - $ - 0.0%

Foundation $ - $ - 0.0%

Corporate $ - $ - 0.0%

Individual $ 25,000 $ - 0.0%

Events & Sponsorships $ - $ - 0.0%

TOTAL $ 40,000 0 0.0%

Combined Budgets

(Restricted & Unrestricted)


Government $ - $ - 0.0%

Foundation $ 241,100 $ 145,000 60.1%

Corporate $ 179,500 $ 140,340 78.0%

Individual $ 213,000 $ 110,494 50.6%

Events & Sponsorships $ 212,500 $ 118,000 38.8%

TOTAL $ 846,100 $ 513,834 60.7%

Page 90

APRIL 2017 PROPERTY DEVELOPMENT BOARD REPORT Property Development Committee Members: Paul Breckenridge, Alice Quaintance, Liz Dunn, Dana Behar, Rachel Ben-Shmuel, Bob Fikso, Andrew Brand Staff Liaisons to the Board: Chris Persons, Jill Fleming, Jeremy Wilkening, Walter Zisette The Property Development Committee did not meet in April. The following is a staff status report of principal projects. DEVELOPMENT PHASE

Liberty Bank Building: Entitlements

MUP/Land Use Approval granted on 04/03

Hearing Examiner hearing on contract rezone to be held on 05/08 Design

Bidding plans set 100% complete. Affirmative Subcontractor Hiring

Community partners providing ongoing support to recruit minority owned businesses to subcontracting opportunities.

Outreach efforts to date have resulted in 32 African American owned firms (out of a total of 58 WMBE firms) having registered with – and are receiving support from project GC, Walsh Construction.

Commercial Tenants Commercial tenants currently under consideration include:

Earl’s Cuts and Styles

Seattle Metropolitan Credit Union

That Brown Girl Cooks

Kingfish Cafe Project Finance

Heritage Bank/Enterprise selected at Lender/Investor

Project received $1.07 in equity pricing.

Investor/lender due diligence and underwriting now in second week of six week process.

Investor site visit to be held 04/11

Schedule Summary

Submit tax credit application - March

Date of Contract Rezone Decision – June

Building Permit Issuance – June

Financial Closing – June

Start Construction – June Capitol Hill TOD B-North Site:

Development Program

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Evaluating green design elements and doing an intensive energy analysis (called AMP)

Land Use

MUP intake submitted Financing

Funding received from OH and County TOD.

Due Diligence period ended and deposit went hard Schedule Summary MUP issued October 2017 Building permit issued May 2018 Close financing: May 2018 Start construction: May 2018 Finish construction: September 2019

PREDEVELOPMENT PHASE

White Center Community Resource Center

Partner meetings are occurring monthly.

Preliminary wetland delineation determined that a small portion of the site is within the protective buffer, which should have no impact on site development.

Community Partners, at their March meeting, agreed to a preferred development concept that includes:

o 28,100 square foot community facility providing a range of services, including a food bank, youth services, and community gathering spaces.

o 37 units of affordable family housing; Parking requirements under the County code, and operational requirements of the services provided onsite require that a significant portion of the site be reserved for surface parking. Harvey Apartments

Abutter was approached about selling and said make an offer. One will be presented in March.

City sees CHH as the best option.

Helen V Apartments

Property received a substantial increase in rents

A call with HUD took place February and was very encouraging

A memo to HUD will be drafted in March

Like scenario that provides more units, which will require zoning amendment

Resyndication of Portfolio

Ponderosa, El Nor and 18th Ave consolidation is viable and a meeting with the PHA took place in earlier this month and a path forward presented. CHH is evaluating the use of 221(f) financing. HUD will be contacted in March after this. Goal is to close on construction in Q4.

John Carney is highest need for renovation as the exterior skin has failed and structure is at risk of degradation. This project will be combined with others also in need. SMR is putting together a proposal to do a physical needs assessment.

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Seattle Central

CHH submitted a response with Hunter’s Capital – CHH focusing on Atlas and HC on the Annex.

CHH submitted it as a ground lease and SCC followed up in early March saying that it was the only respondent that did so; however the payments weren’t enough for what they need to develop the new building.

SCC asked us if we could look at the potential to ground lease the Atlas site, the Annex site, and the Siegal Center as mixed-income.

Committee reviewed options.

MLK/Henderson

Forterra submitted an offer on two parcels. The one off market said they aren’t ready to sell. Forterra is in negotiations with the one on market.

Northgate

King Co Metro is planning to issue an RFP for the development of its Northgate transit center into 700 units of housing and commercial space.

The Committee discussed potentially partnering with Bridge Housing on the RFP.

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APRIL 2017 COMMUNITY PROGRAMS AND EXTERNAL RELATIONS BOARD REPORT AND MINUTES Community Programs and External Relations Committee Members: Cathy Hillenbrand, Eric Snow, Selome Teshome, Rachael Steward (BOLD indicates those members in attendance)

Staff Liaisons to the Board: Michael Seiwerath, Joel Sisolak Additional Staff: Alex Brennan, McCaela Daffern Recent meeting: Tuesday, April 4, 2:00- 3:00pm, Belmont Conference Room Next meeting: Tuesday, May 2, 2:00- 3:00pm, Belmont Conference Room Meeting Structure

CHH is undertaking an organization-wide effort to reduce the frequency of meetings and number of groups meeting. The CPER committee discussed a proposal to combine the efforts of this committee with a soon-to-be created Board Development Committee—a joint effort of the PDA and CHH Foundation Boards.

Partnership and Community Development

Cultural EcoDistricts: CHH is working with Centerstone and SCIDpda to facilitate the creation of two new ecodistricts in the Central Area and Chinatown International District. We have partial funding for this work from Sustainable Communities Funders (Seattle Foundation, Bullitt, Loom, Social Venture Partners). We have had 5 partner meetings to date. The last meeting focused on LGBTQ and the arts communities as cultural anchors in Capitol Hill. The next meeting will be a workshop with CD stakeholders. We submitted an LOI to ArtPlace and submitteda proposal to Enterprise to continue this work.

EcoDistrict Current Projects:

Nighttime Sidewalk Audits: We received $30,000 from the Only In Seattle program to implement capital improvements recommended by our sidewalk audits.

Land Use Review Committee (LURC): We are developing a website, brand identity, and a decision making structure for the LURC. We are recruiting new members and meeting monthly under the PPUNC name. We are planning an April PPUNC workshop to develop a strategy that ensures that the cost of the building code requirements triggered by the Mandatory Housing Affordability upzone won’t discourage preservation via the Pike Pine Conversation Overlay.

Affordable Solar: We were anticipating an RFP from Seattle City Light 4/1 to fund renewable projects. We expect the pool of Green Up funds to be ~$400,000 with an 8-week window for applications. We are considering an application to fund a project on the El Nor and/or the Elizabeth James. Joel reached out to Kshama Sawant, who chairs the Energy and Environment Committee, to seek insight on why the RFP release has been repeatedly delayed since March 2016.

District Shared Parking: we are renewing conversations about commercialization opportunities and working with the University of Washington and the next phase of parking sensor development. Soon, we will need to make decisions about a more formal partnership that will set the stage for investments and legal agreements about intellectual property. Additionally, we continue to develop shared parking policy recommendations for the City of Seattle, which will be incorporated into a package of parking reform legislation later this year.

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Parking Benefit District (PBD): The Council’s budget passed with $150,000 funding in support of a PBD pilot in 2017. We are continuing to talk with the Mayor’s Office and SDOT about next steps.

Capitol Hill Renter Initiative (CHRI): CHRI’s new Leadership Committee continues to meet and is beginning to take on more responsibility for group decisions. At the last monthly meeting, CHRI members learned about the Seattle Department of Neighborhood’s Neighborhood Matching Fund and discussed potential projects. CHRI also held a happy hour to discuss the Mandatory Housing Affordability program and turned out to support final passage of the Seattle Renters’ Commission, a long time goal.

Renter Commission: An ordinance to create a Seattle Renters’ Commission was passed by City Council on 3/20 and signed by the Mayor on 4/3. Recruitment for the Commission will begin in May.

RENEW: Assessments have been completed in the 5 targeted properties: Lincoln Court, El Nor, Oleta, Devonshire, Elizabeth James. A presentation of initial findings was made on 3/6. Engineering review is underway.

EcoDistrict Index: We are currently gearing up for our annual update.

Affordable Housing Transit Pass Program: SDOT will provide funding to extend the program for our 3 buildings for 3 months while reviewing the program for potential expansion to other neighborhoods and providers. We presented the program to the Housing Development Consortium’s (HDC) Policy Advisory Group and are beginning the process to secure HDC board support. We’ve also begun to develop a strategy for expanding the program County-wide.

Cal Anderson Park: Joel has joined the Cal Anderson Park Alliance Board of Directors.

Pike/Pine Protected Bike Lane: The protected bike lanes in Pike Pine have become higher profile after the release of 4 route options as part of One Center City. On April 2, CHH and the Capitol Hill Renter Initiative partnered with Central Seattle Greenways and Cascade Bicycle Club to do outreach to businesses in the corridor to gauge interest in and opinion about a protected bike lane in that corridor.

Summit/Belmont Green Street: Staff is exploring the feasibility of reimagining the right of way in the Summit/Belmont subarea to improve stormwater runoff, add trees and green cover, and make the area more pedestrian-friendly.

Seattle 2030: As a partner in Seattle 2030 efforts, staff is assisting with outreach to property owners of multifamily buildings in Capitol Hill in an effort to recruit new buildings to the Seattle 2030 District. A strategy meeting with 2030 to identify target property owners was held in March.

Public Safety Coordination: We continue to coordinate with the Chamber, the Community Council, SPD and social service providers to address homelessness, drug addition, mental health and public safety issues in Capitol Hill. 2017 projects include co-hosting monthly social service provider meetings, tracking the roll out of Law Enforcement Assisted Diversion (LEAD) in the East Precinct, and helping plan a homeless hair cut event in coordination with the Chamber’s Clean Sweep event in June

Washington State Convention Center: Our advocacy coalition for the “community package” of public benefits from this project has received broad local media coverage and positive feedback from the Seattle Design Commission and Mayor. The coalition recently launched a website and are starting to meet with Councilmembers to discuss the community package. The public benefit package will be discussed at the next Design Commission meeting on April 20.

Capitol Hill Neighborhood Design Guidelines: The City has agreed to work with us to update the 2005 Capitol Hill Neighborhood Design Guidelines. The City will provide staff and design consultant support to assist with this effort. EcoDistrict staff and the LU&D Working Group will help to lead early scoping efforts, provide feedback, and assist with community engagement and outreach. This project has not launched yet.

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Capitol Hill Arts District:

On April 13, the Capitol Hill Arts District website, http://capitolhillarts.org/ will be formally launched. The launch will be accompanied by marketing materials and a higher visibility in the neighborhood

April 13th will also be the second Thursday Art Walk. The new show opening in the 12th Avenue Arts gallery is by building resident Ulises Mariscal. Come by from 5-6pm to meet the artist.

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http://capitolhillarts.org/

https://www.marisccal.com/


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APRIL 2017 EXECUTIVE COMMITTEE BOARD REPORT AND MINUTES Executive Committee Members: Cathy Hillenbrand (Chair), Rob Schwartz (Vice Chair), Drew Porter (Treasurer), Selomé Teshome (Secretary), Alice Quaintance (Immediate Past Chair) Staff Liaisons to the Board: Chris Persons, Kiley Dhatt (taking minutes) Guests: Shalimar Gonzalez (Executive Director of the Meredith Matthews YMCA) (BOLD indicates those members in attendance) Date, time and location of meeting: March 27, 2017 5-6:30pm Belmont Conference Room Date, time and location of next meeting: April 24, 2017 5-6:30pm Belmont Conference Room Minutes: Meeting began at 5:07 pm. 1. Meet Shalimar Gonzalez: Chris introduced Shalimar Gonzalez, Executive Director of the Meredith

Matthews YMCA. Shalimar gave some background on herself. Cathy Hillenbrand asked whether Shalimar is on any other boards; Shalimar answered that currently she is not on any boards. Drew asked whether Shalimar has served on boards before and what she liked most about the work. Shalimar explained that she has served on several boards previously, and she most enjoys serving as an advocate and connector for an organization in whose mission she believes. She enjoys fundraising. She is also very interested in the way the CHH develops buildings within the historical and cultural context of the neighborhoods they are in – for example, the 12th Avenue Arts building and the upcoming Liberty Bank Building. Shalimar asked Board members to share why they joined the CHH Board and what they find compelling about the work.

2. March Minutes: Chris asked whether previous Executive Committee meeting minutes should be reviewed and approved at the following Executive Committee meeting. The Executive Committee agreed that this was not necessary since they are approved as part of the full Board consent agenda.

3. Lead Items:

a. Review Chris’s 2017 work plan: Chris shared his current major areas of focus with the Executive Committee. Chris mentioned that part of his work on the Board will be about rethinking how we do Board reporting; he would like each department to create concise dashboards with key metrics that the Board can track and evaluate each month. Chris also shared areas of personal professional development that he is currently working on. Rob suggested that Chris clarify the end goal for each of these areas, especially speaking engagements and managing people.

b. Strategic initiatives: Chris reminded the Executive Committee that the CHH Vision Framework is adopted by the Board, and then staff comes up with strategic initiatives to accomplish that vision. Staff would like to make a change to the Vision Framework to add the word “affordable” to the last sentence of the first paragraph, as follows: “Our real estate portfolio will be the greenest affordable portfolio in the Pacific Northwest.” This change will require a vote by the Board since it is a Board-adopted document. The Executive Committee agreed that this proposal should be put forward to the full Board at the April 10 meeting. Chris then shared the set of revised and updated strategic initiatives that staff have

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recently developed. Rob mentioned that “nurture our organizational culture” sounded vague. Chris explained that each of the initiatives is accompanied by detailed and results-oriented goals, which exist in a more complex document that is internal and used by staff. Rob suggested that staff make sure that the vision framework and strategic initiatives are tightly tied together – for example, if the “big goal” is “reinvent community development,” are the initiatives and workplan strategies sufficient to stretch us toward something as big as “reinvention”?

c. Board development: Returning Board members have been discussed at the past Board meeting, and will be voted on at the April meeting. We have a few suggested candidates for the mayor-nominated seats to discuss with the board as well.

d. CHH branding & service area: Chris and Jill Fleming met with Councilmember Tim Burgess regarding the expansion of CHH’s boundaries. Burgess is interested and took the idea to the Mayor informally. The Mayor seemed amenable and suggested that Chris set up a meeting with him to discuss. Chris has reached out to the Mayor but has not yet heard back yet. Chris clarified that it is the Mayor, rather than City Council, who has to sign off on any changes to the CHH Charter.

4. External Relations, Community Programs, Board Issues:

a. Board committees & reorg: Chris shared a document with a proposed reorganization of Board committees. Under this proposal, some committees would meet on a less frequent basis, but there would still be monthly reports with concise dashboards with key metrics at the top. It would also be expected that the staff lead and committee chair have a phone call on months where no meeting takes place. It was noted that there is a lot of expertise on the Property Development Committee and depending on what’s on the docket, these meetings can be very important. There is a question of whether meeting quarterly would be sufficient. It was suggested that these meetings get scheduled monthly, and then canceled if there is nothing urgent. Drew suggested that committees meeting quarterly should have extended meetings, at least 90 minutes long. The Executive Committee agreed. It was agreed that this document should be introduced at the April Board Meeting and voted on in June or July. In the meantime, the new reporting procedures (more dashboard-like) will be implemented to give the Board a better feel for the change.

b. Conversations with Imagine Housing: A CHH lawyer is currently reviewing the asset management contract and should be sending it to Imagine tomorrow.

i. Working outside the City: We are still waiting on some legal language for this resolution. Chris will follow up.

c. Board retreat: Melora Hiller will be facilitating the joint boards retreat, and Melissa Blankenship and Kiley Dhatt will be support facilitators.

d. Annual meeting: The CHH Annual Meeting & Stakeholder Briefing is April 18 this year, the purpose of which is to inform funders and community members about CHH’s current projects and outlook. At the meeting, we will be focusing a lot on our property development pipeline. Chris shared that he’ll spend some portion of the meeting discussing what he learned during his trip to Washington, D.C. in order to head off questions about the current administration’s impact on our work. Cathy noted that “Are we prepared for the worst-case scenario?” is still a good question to focus on. Chris explained that Jill plans to present on this at the May Board meeting.

e. Annual public accountability report: The public accountability measures established by

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the CHH Rules & Regulations are designed to promote continuous communication both with and from the Capitol Hill community and other members of the public. The annual public accountability report provides oversight for these accountability measures. The Executive Committee agreed that there should be a slide in the Annual Meeting PowerPoint presentation about our public accountability measures.

5. Development and Acquisitions:

a. Pipeline overview: Along with Wyking Garrett, Chris presented on the Liberty Bank Building (LBB) project to the Tabor 100 group, and the presentation was well received. Chris credited much of the success to Regina Glenn, who is CHH’s WMBE consultant on LBB, and has provided a lot of leadership. LBB will break ground in June. Regarding the Harvey, we are approaching the neighboring restaurant owner. We are still moving three buildings forward for resyndication to finance and close by the end of the 2017 calendar year. The Helen V parking lot development project will be submitted for City funding in the fall. CHH is partnering with BRIDGE Housing to respond to the Northgate RFP that should come out in August or later. We are also looking at acquiring some additional parcels elsewhere in the city. Drew asked for an update on the OK Hotel. Chris explained that we believe the seller pulled it off the market because they weren’t receiving offers they liked.

b. Future resolution regarding prevailing wages: Chris shared that in the past, CHH has made an assumption about paying prevailing wages on certain projects. Labor and Industries had previously notified us that they do not have jurisdiction in that matter on certain projects. This turned out to be wrong, and we will need to continue to pay prevailing wages.

Meeting adjourned at 6:30 pm.

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2017 CHH Board Meeting April April 2017 Meeting · 2017-04-06 · April 2017 CHH Board Meeting April ... We will present a slate of returning Board members whose current terms are

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