February 2014 Capitol Hill Housing Board Meeting Keys and Addenda Annual Disclosures: Each board member will provide a written statement of disclosures outlining potential conflicts of interest with ongoing CHH activities. This statement is an internal document that will be submitted at the same time that board members complete their Annual Statements of Economic Interest. Disclosures and recusals: Board members will review items on the agenda and make any necessary disclosures. Annual Meeting: The first hour of the meeting will be dedicated to our annual meeting and report to the community. Finance: The finance committee presents its regular report and quarterly dashboard. The board will be asked to adopt the annual authorization of petty cash as required by code. Resolution 2014-02. Executive Committee: Chris will briefly mention the process for annual retreat and ask members if they are interested to join Cathy and Alice on the retreat planning committee. Chris will walk through the background of the new COO and welcome any discussion. A section of the RFQ from Sound Transit requires that representatives of responding entities NOT have any communication with any member of Sound Transit board or staff. We will discuss the implications of this. Presentation and Discussion: Because of the Annual Meeting there is no other Presentation and Discussion part of the agenda. Asset Management: Chris will update on the process with Seattle City Light. Resolution 2014-03, The Fredonia is currently encumbered by two loans. The first is a $668,876 (balance 12/31/12) loan with Chase. The interest rate is 6.898%, monthly payments are $5,408 and the loan matures in October 2030. As of 6/28/13, the prepayment penalty for this loan is $91,147.82. The second loan is with the City of Seattle. The balance as of 12/31/12 was $409,760, interest rate is 1%, monthly payments of $275 and the loan matures on March 1, 2014. Since the building is in good shape physically, the prepayment penalty on the Chase loan is onerous, the interest rate on the existing City loan is favorable, and refinancing would reduce property cash flow to CHH, staff recommends we extend the City of Seattle loan for a five year period. Staff will reevaluate the building’s capital needs and prepayment fees and consider refinancing in five years. Foundation Update: Michael will provide an update on Top of the Town and the process that we are kicking off to modify the CHH logo. Upcoming Meetings and Events Monday, Feb 10 CHH Board Annual Meeting Tuesday, Feb 12 12AA Hard Hat Tour Friday, Feb 28 CHH Executive Committee Meeting Monday, Mar 10 CHH Board Meeting
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February 2014 Capitol Hill Housing Board Meeting Keys and Addenda
Annual Disclosures: Each board member will provide a written statement of disclosures outlining potential conflicts of interest with ongoing CHH activities. This statement is an internal document that will be submitted at the same time that board members complete their Annual Statements of Economic Interest. Disclosures and recusals: Board members will review items on the agenda and make any necessary disclosures. Annual Meeting: The first hour of the meeting will be dedicated to our annual meeting and report to the community. Finance: The finance committee presents its regular report and quarterly dashboard. The board will be asked to adopt the annual authorization of petty cash as required by code. Resolution 2014-02. Executive Committee: Chris will briefly mention the process for annual retreat and ask members if they are interested to join Cathy and Alice on the retreat planning committee. Chris will walk through the background of the new COO and welcome any discussion. A section of the RFQ from Sound Transit requires that representatives of responding entities NOT have any communication with any member of Sound Transit board or staff. We will discuss the implications of this.
Presentation and Discussion: Because of the Annual Meeting there is no other Presentation and Discussion part of the agenda. Asset Management: Chris will update on the process with Seattle City Light. Resolution 2014-03, The Fredonia is currently encumbered by two loans. The first is a $668,876 (balance 12/31/12) loan with Chase. The interest rate is 6.898%, monthly payments are $5,408 and the loan matures in October 2030. As of 6/28/13, the prepayment penalty for this loan is $91,147.82. The second loan is with the City of Seattle. The balance as of 12/31/12 was $409,760, interest rate is 1%, monthly payments of $275 and the loan matures on March 1, 2014. Since the building is in good shape physically, the prepayment penalty on the Chase loan is onerous, the interest rate on the existing City loan is favorable, and refinancing would reduce property cash flow to CHH, staff recommends we extend the City of Seattle loan for a five year period. Staff will reevaluate the building’s capital needs and prepayment fees and consider refinancing in five years. Foundation Update: Michael will provide an update on Top of the Town and the process that we are kicking off to modify the CHH logo.
Upcoming Meetings and Events
Monday, Feb 10 CHH Board Annual Meeting Tuesday, Feb 12
12AA Hard Hat Tour Friday, Feb 28
CHH Executive Committee Meeting Monday, Mar 10
CHH Board Meeting
Real Estate Development Discussion: David will provide verbal updates on real estate developments. Board Packet Attachments 1. Meeting Keys & Agenda 2. Consent Agenda and Attachments
a. Contracts and Expenditures b. January Board Minutes c. January Asset Management Report and Minutes d. February Asset Management Report and Minutes e. Asset Management dashboard f. Memo from the CHH Foundation g. Real Estate Development Report and minutes h. Executive Director Report and Executive Committee minutes (at meeting)
3. Finance Statements December 2013 4. Resolution 2014-02: Authorization of Petty Cash (at meeting) 5. Cynthia Chirot Resume and Bio 6. Annual Conflict of Interest Disclosure Document 7. Resolution 2014-03 Fredonia refinance
David Dologite, Chris Persons, Michael Seiwerath, Brad Lange, Melissa Blankenship (taking minutes)
Absent: Michael Malone, Liz Dunn, Matt Roewe, Drew Porter,Sharron O’Donnell
The January of 13th meeting of the Capitol Hill Housing Board of Directors was called to order by Chair
Brian Lloyd at 6:07pm.
1. Agenda & Minutes: The Asset Management Committee Report and Minutes were removed from the
Minutes for revision and to be presented as part of the February Board Packet.
A motion to approve the Consent Agenda without the Asset Management committee report was made,
seconded and passed unanimously.
2. Disclosures and recusals: None
3. Public comment: No public comment.
4. Treasurer and Finance Committee Report: Paige reported that our financial position continues to
look very strong and there are no discrepancies to report.
A motion to accept the Treasurer and Finance report was made, seconded, and passed unanimously.
5. Amendment to Rules and Regulations: Resolution 2014-01 requests the director of real estate be
added as another check signer in the office.
A motion to accept Resolution 2014-01 was made, seconded, and passed unanimously.
6. Executive Committee and Executive Director Report: Brian presented a slate for the 2014 Executive
Committee. The Board will be asked to elect the officers in the spring. Rob Schwartz; Secretary; Alice
Quaintance; Chair, Cathy Hillenbrand; Vice- Chair, Sharron O’Donnell; Treasurer and Brian Lloyd;
Immediate Past Chair. Chris provided an overview of the annual board meeting topics calendar and
January 2014 Board Minutes Page 2 of 2
reminded the board of the Annual Meeting on February 10th. Dana suggested that we consider Mike
Kent to speak on a new project called Melrose Promenade. Next Chris updated the board on the status
of the COO hiring process and confirmed that the process is progressing as planned. Chris presented to
the board an overview of staff turnover and a detailed analysis of the results of the staff survey that was
recently conducted. Finally, Chris continued the December 2013 discussions and provided additional
details on the 2013-2014 Strategic Plan and Initiatives. Chris reminded the board to please fill out and
return the Statement of Economic Interest forms.
7. Asset Management: Billie updated the board on the Fredonia commercial space and noted that the
new tenants are in place and currently in the process of remodeling and engaging the community. Chris
introduced an idea for early consideration and discussion regarding converting the Broadway rental
units into affordable home ownership opportunities. Staff has completed an initial analysis and research
to understand the feasibility of the concept but are not presenting a specific proposal at this time. If the
board is interested, a full proposal could be prepared by the March meeting. The board requested more
information and a proposal. Chris noted that he is meeting with Roger Tucker the ED of Environmental
Works regarding Firestation 7 tomorrow morning.
8. Foundation and Communications Update: Michael Seiwerath reported that there will be 68 people
attending the Sustaining Circle Event at the Chihuly Boathouse and provided a short presentation
wrapping up the Capital Campaign.
9. Real Estate Development: David reported that we are close to 50% complete on the commercial
construction and 23% complete on the residential construction at 12th Avenue Arts. We continue to
negotiate leases with retail and second floor office tenants. David reported that that we are finalizing
scope for the Haines and are in continued discussions with Seattle Public Utilities on the fire suppression
system and water capacity. We are looking at a summer start on the Haines construction.
Brian Lloyd called the meeting into Executive Session at 7:36PM to consider the performance of an employee, specifically the routine annual review of the Executive Director. The Board exited Executive Session at 7:59 PM.
The meeting was adjourned at 8:00pm
Attested,
________________________________________
Brian Lloyd, Chair
January 13, 2014
ASSET MANAGEMENT REPORT AND MINUTES
Asset Management Committee Members: Alice Quaintance (Chair), Rachel Ben-Shmuel, Farin Houk and Rob Schwartz. Staff: Billie Abers, Brad Lange
January 2014
The Asset Management Committee met January 13th, 2014 at 5:00pm. Alice Quaintance (Chair), Rachel Ben-Shmuel, and Rob Schwartz met with Billie Abers, Director of Property Management, and Brad Lange, Asset Manager. The committee reviewed the report and discussed current asset management and property management activities. Current Asset Management Hazel Plaza –loan documents are with lawyers and kick off meeting with architects was held 1/10/14. Resident Surveys –surveys are complete at all buildings. We had a 48% response rate. Comprehensive analysis to follow. We are resurveying Ponderosa, 412 and the Silvian. Portfolio assessment –final review of Action Plans is underway. Target date for completion is 1-31-14. Multi property syndication/resyndication –the portfolio under consideration includes Boylston Howell, Bremer, John Carney and the Haines. Analysis has been sent to Enterprise for review. Berneva –paid off existing loan with CHH funds. CHH will be reimbursed when bank loan closes. Seneca—Bank of America has provided a 90 day short term credit facility in case loan is unable to close prior to 12/31/13. Using this opportunity to evaluate other options. Broadway—we met with Homesight 1/8/14 to discuss potential sale to converter for affordable condos. They are discussing with their board. Firestation 7—tabled pending discussion at next FS7 Board meeting. Capital Projects—current We selected Eltec for the elevator modernization and cab replacement at the Elizabeth James House. We have accelerated the work on the elevator to decrease the down time to 3 ½ weeks. The work is scheduled to start on February 10th, 2014. We are working with the weatherization department at the city to evaluate the Bremer and Oleta for installation of heat pumps. There has been a delay moving forward due to the estimated cost being more than expected.
We are getting proposals to create an office space at the Silvian. Building Operations
From the Finance report: Year to date CHH November 30, 2013 Blended Operating Statement Vacancy loss for year to date 2013 was 3.2% across the portfolio compared to 3.5% year to date 2012. Vacancy loss for the year 2012 was 3.4% and 3.9% for 2011. For 2013 and 2012 budget purposes we assumed vacancy rates ranging from 3 – 5 % depending on the building. The building occupancy rate for the month of November is 97% and it is at 97% for the twelve month rolling average. At the end of December 2013, we have 15 vacant units, and that is approximately 1% of the portfolio. The Brewster is right next to the construction zone of the Denny substation. Staff attended Design Commission meeting on November 7, 2013 and made comments regarding CHH position on substation and vacation of Pontius. CHH staff attended Community Forum #2 at Mirabella on November 20th and continue to work with SCL and its design team to address CHH concerns about substation and its impacts on the Brewster. Staff met with senior staff from Seattle City Light on 12/13/13 and submitted request for mitigation. The meeting scheduled for 1/13/14 to discuss City Light’s response to our request was cancelled, we will be rescheduling. Fredonia – Mike Meckling and James Snyder have signed the lease for the Canterbury Ale House effective January 1st, 2014. They purchased the right to use the name and all interior furnishings from the Roberge’s. They expect to open for business by May 1st, 2014. We closed 6 HUD building waitlists effective 12/31/2013. The average number of applicants on the waitlists for these 6 buildings is 1351. Resident Services Our Resident Services Coordinator, Brett, has been putting in hours on site at the Elizabeth James House and Broadway Crossing in effort to enhance the sense of community. Brett will soon be spending on-site hours at Ponderosa to help better meet resident needs.
ASSET MANAGEMENT REPORT AND MINUTES
Asset Management Committee Members: Alice Quaintance (Chair), Rachel Ben-Shmuel, Farin Houk and Rob Schwartz. Staff: Billie Abers, Brad Lange
February 2014
The Asset Management Committee met February 5th, 2014 at 5:00pm. Alice Quaintance (Chair), Rachel Ben-Shmuel, and Rob Schwartz met with Billie Abers, Director of Property Management, and Brad Lange, Asset Manager. The committee reviewed the report and discussed current asset management and property management activities. Current Asset Management Brewster-- Meeting scheduled 2/7/14 with Seattle City Light to discuss mitigation request. Fleming—Fleming has completed the 15 year LIHTC compliance period and as of January 31, 2014 NEF, the LIHTC investor, exited the partnership. NEF’s interest was transferred to CH Development Associates at no cost. Hazel Plaza –Kickoff meeting was held 1/30/14. Architects starting on drawings. Targeting June start date. Loan will close after construction scope budget is updated and verified by lender. Portfolio assessment –final review of Action Plans is underway with Portfolio Managers. Plans will be presented at April board meeting. Multi property syndication/resyndication –the portfolio under consideration includes Boylston Howell, Bremer, John Carney and the Haines. Analysis has been sent to Enterprise for review. Berneva –Loan docs under final review. Closing expected Feb, 2014 Seneca—Bank of America has provided a 90 day short term credit facility in case loan is unable to close prior to 12/31/13. Using this opportunity to evaluate other options. Broadway—Meeting held with Homestead on 1/24/14. Staff evaluating alternative strategies. Capital Projects—current The elevator modernization and cab replacement at the Elizabeth James House has begun. We have accelerated the work on the elevator to decrease the down time to 3 ½ weeks. We are working with the weatherization department at the city to evaluate the Bremer and Oleta for installation of heat pumps. There has been a delay moving forward due to the estimated cost being
more than expected. We are getting proposals to create an office space at the Silvian. We installed 29 low flow toilets at the Oleta with funds from Public works. Total cost to the property is estimated to be under $2000. We are getting proposals to install a chair lift in the house at the Pantages. We are evaluating the installation of an elevator at the Ponderosa. We received a $25,000 grant to install playground equipment at Gale Place. We are getting proposals. Building Operations
From the Finance report: Year to date CHH December 10, 2013 Blended Operating Statement Vacancy loss for 2013 was 2.7% across the portfolio. This is a historically low vacancy rate for CHH. Vacancy loss was 3.4% for 2012 and 3.9% for 2011. For 2013 and 2012 budget purposes we assumed vacancy rates ranging from 3 – 5 % depending on the building. The building occupancy rate for the month of December is 98% and it is at 97% for the twelve month rolling average. At the end of January 2014, we have 7 vacant units and that less than 1% of the portfolio. Resident Services Our Resident Services Coordinator, Brett, had a bowling outing with 14 Elizabeth James residents and CHH staff at The Garage in Capitol Hill. Resident Services also attended Housing and Homelessness Advocacy Day to help represent Capitol Hill Housing.
Capitol Hill Housing
Operating Statement
For the period ending: 12/31/2013
Benchmarks
98% Excellent
95% Good
90% Poor
98% Excellent
95% Good
90% Poor
<14 days Excellent
21 days Good
30+ days Poor
1.15 excellent
1.05 good
<1.0 concern
1.15 excellent
1.05 good
<1.0 concern
1.15 excellent
1.05 good
<1.0 concern
Frequency YTD YTD YTD YTD YTD YTD Monthly YTD M M YTD 2013 A A A
Type HUD Buildings Units Actual Inc Budget Var % Actual Exp Budget Var %
M:\Admin\Board\Packets\2014 Packets\02 14\2e Asset Management Dashboard February 2014.xlsx
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MEMORANDUM
To: Capitol Hill Housing Board of Directors
From: Michael Seiwerath, Executive Director, Capitol Hill Housing Foundation
CC: Christopher Persons
Re: February 2014 CHH Foundation Update
GRANTS AND DONATIONS
In response to a grant proposal, The Medina Foundation has scheduled a February site
visit at CHH. We will be discussing a $25,000 request to support our Resident Services
program. Alice Quaintance will be representing the Board.
Other recent grant requests include a request of $3,500 from the Windermere
Foundation.
EVENTS
SUSTAINING CIRCLE CELEBRATION More than 75 donors and board members gathered
at the Chihuly Boathouse for a first annual
Sustaining Circle donor appreciation event. We
were fortunate enough to have a sunset over Lake
Union, and remarks from Deputy Mayor Hyeok Kim.
The initial feedback has been positive and we plan to
do it again in 2015, likely at a private home. If you
have any feedback on the event, contact Michael
Seiwerath.
12th AVENUE ARTS HARD HAT TOUR At 3:30pm on February 12th, donors and board members are invited to a hard hat tour of
12th Avenue Arts. The building has been topped off, and this is an opportunity to see
the construction before the drywall is installed. Contact Michael Seiwerath if you would
like to attend.
TOP OF THE TOWN There has been strong support for the choice of Alan Berube of the Brookings Institution
as the event speaker. Having focused on King County suburban poverty, his findings
and proposed solutions will be very relevant to our community.
To date, we have received $29,000 in sponsorship commitments, towards a $60,000
goal. Chase Bank is the presenting sponsor of Top of the Town. Concurrent with the
event, Brookings Institution and Chase Bank are hosting a convening of the Global
Cities Initiative in Seattle. The conference being in Seattle may result in some out-of-
town high-level guests at Top of the Town.
OMNIVOROUS The date for Omnivorous is set – Thursday, September 25th, 2014. Please save the
date. Many of the participating restaurants stated that for them to participate, a weekday
was preferred, so we are having the event on a Thursday this year.
CAPITAL CAMPAIGN 12th Avenue Arts Capital Campaign Overall GOAL : $4.6 M
Goal Pledged TOTAL $4,600,000 $4,655,605
2014 KEY INITIATIVES AND GOALS
At the January 28th CHH Foundation board meeting, staff presented the following overview of the 2014 Key Initiatives and Goals.
2014 Key Initiatives and Goals Strategic Goals 1. Launch Major Gifts initiative 2. Launch EcoDistrict sponsorship program 3. Refresh the brand of Capitol Hill Housing and CHH Foundation 4. Raise visibility through 12th Avenue Arts grand opening 5. Increase advocacy 1. Launch Major Gifts initiative Working closely with board, staff and stakeholders, we will launch a major gifts program at Capitol Hill Housing. Determine goals and timeline – setting the financial goals and non-financial goals of the initiative, as well as timeline Create breakdown of giving goals, embedded in 2014 budget Develop initiative structure Identify initiative leadership – formal and informal Identify capital campaign donor stewardship opportunities Identify Initial list of lead gift prospects Identify cultivation strategies Staff, board and committee roles and responsibilities Recognition opportunities Develop materials – vision for campaign that includes the mission, short pitch, case for support, personality attributes, and campaign theme and messages; Update Sustaining Circle ($2,500) donor materials Coordinate messaging with electronic communications refresh / online giving
2. Launch EcoDistrict sponsorship program We will launch a sponsorship program to diversify income and support for the EcoDistrict. Determine goals and timeline – Set 2014 and 2015 sponsorship goals: Determine sponsorship team (Seiwerath, Sisolak, Hoyt, etc.) Create detailed sponsorship list Set goals as part of 2014 budgeting
Develop messaging and materials Distill the vision, benefits and need for an EcoDistrict sponsorship program Create strategic messaging and collateral materials 3. Refresh the brand of Capitol Hill Housing and CHH Foundation Capitol Hill Housing and the CHH Foundation will refresh the brand, including a new logo, leading up to the move to 12th Avenue Arts.
Develop brand and branded materials Form workgroup, hire creative firm, create new logo and brand guidelines Incorporate new brand into all print collateral and electronic communications, including a refresh of the CHH website 4. Raise visibility through 12th Avenue Arts grand opening Use fall 2014 grand opening of 12th Avenue Arts as platform to raise visibility of the organization. Develop goals, timeline and budget Potential earned media goals Coordinate with rollout of new brand Coordinate complementary events Possible launch of cultural district Events by building tenants, neighboring partners 5. Increase advocacy Elevate advocacy on issues and policies affecting CHH’s mission of affordable housing and community development Develop 2014 CHH policy agenda Distribute to boards and staff Create advocacy task force Recruit key board members Consider resident member Mobilize residents and community supporters
CAPITOL HILL HOUSING FOUNDATION
2014 Budget Overview
Unrestricted Budget
Income Source 2014 Goal Actual % to Goal
Government $ - $ - NA
Foundation $ 143,167 $ - 0.0%
Corporate $ 78,500 $ 666 0.8%
Individual $ 87,000 $ 1,550 1.8%
Events & Sponsorships $ 135,800 $ 31,500 23.2%
TOTAL $ 444,467 $ 33,716 7.6%
Restricted Budget
Income Source 2014 Goal Actual % to Goal
Government $ 5,000 $ - 0.0%
Foundation $ - $ - 0.0%
Corporate $ - $ - 0.0%
Individual $ - $ - 0.0%
Events & Sponsorships $ - $ - 0.0%
TOTAL $ 5,000 $ - 0.0%
Combined Budgets
(Restricted & Unrestricted)
Income Source 2014 Goal Actual % to Goal
Government $ 5,000 $ - NA
Foundation $ 143,167 $ - 0.0%
Corporate $ 78,500 $ 666 0.8%
Individual $ 87,000 $ 1,550 1.8%
Events & Sponsorships $ 135,800 $ 31,500 23.2%
TOTAL $ 449,467 $ 33,716 7.5%
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REAL ESTATE DEVELOPMENT BOARD REPORT
Development Committee Members: Brian Lloyd, Cathy Hillenbrand, Liz Dunn, Matt Roewe, Dana Behar,
Bob Fikso; Staff: David Dologite, Katie Porter, Alex Brennan, Joel Sisolak
The Property Development Committee met on Tuesday, February 4th at 4:30pm. PDC members in
attendance were Brian, Bob & Cathy. CHH staff members Katie Porter, Alex Brennan, and David Dologite
were in attendance.
February 2014
CURRENT PROJECTS
1. 12th Avenue Arts (88 units/arts/commercial/office):
Last Month: The residential structural wood framing work through the 6th floor is completed and the
roof framing will be complete by mid-January. Mechanical, electrical, and plumbing rough-ins have
started and are complete through the 3rd floor. Contingency is tight for the commercial portion of the
project and staff are working with the Foundation to raise additional funds as backstop. We continue
to negotiate leases with U:Don and Bizzarro, as well as with SAAS/Freehold.
Current report (Prior Month):
Residential
Construction completion: 56% (38%)
Contingency expended: 51% (43%)
Commercial
Construction completion: 60% (56%)
Contingency expended: 95% (90%)
The residential structural wood framing work is completed, including roof framing. Mechanical,
electrical, and plumbing rough-ins have started and are complete through the 5th floor, and will be
complete by mid-February. We are close to final on leases with U:Don and Three Dollar Bill Cinema
and expect to have their leases signed in February. Bizzarro has pulled out, but we have strong
interest from four restaurant operators for the space.
2. Haines
We are continuing to work with the architect and general contractor to refine the scope of construction
work. Property development staff is collaborating with property management to ensure that there is
clarity regarding the building needs and that the most necessary work is completed in the Haines. Staff
is beginning to work on the organizational documentation for the partnership and the financing
applications and packages. The City of Seattle OH award includes federal funds which adds a level of
complexity, coordination, and cost. CHH staff is working with
The current schedule for the Haines is:
Date
Building Permit Issued 3/1/2014
Renew Section 8 Contract 3/1/2014
Board Financing Resolution 3/1/2014
Construction Financing Close 5/15/2014
Construction Start 6/1/2014
AHP Application Due 8/1/2014
Construction End 1/15/2015
3. Capitol Hill EcoDistrict:
Seattle City Light is considering developing a utility-owned community solar system atop one or more
CHH properties by summer 2014. Joel Sisolak and Scott (Mack) McEachern tour three potential
rooftops with SCL on January 6th. A second tour with Puget Sound Solar, a solar contractor hired by
SCL, happened on Jan 21st. Puget Sound Solar returned a proposal for a 63 kW project spread over
three properties: the Holiday Apartments, the Silvian, and Pantages. SCL has drafted a
proposal/contract for our consideration. Capitol Hill would be one of two project locations, alongside
Phinney Ridge with a project split between the Woodland Park Zoo and Phinney Neighborhood
Association.
We are working on finalizing scopes of work for several 2014 contracts.
A final contract for Pike/Pine District Shared Parking has been signed and sent to King County.
Staff is working with the Chamber and Office of Economic Development to finalize scope for
Only In Seattle funded work for 2014.
We are responding to a draft scope of work for our collaboration with Preservation Green Lab on
launching an energy retrofit pilot project in the EcoDistrict.
We have drafted a scope of work for our contract with the Office of Sustainability and the
Environment (OSE) to create the EcoDistrict Index.
The EcoDistrict Steering Committee will have its spring planning retreat on April 25th at the Bullitt
Foundation.
POTENTIAL PROJECTS
4. Sound Transit - Transit Oriented Development (TOD):
Sound Transit issued the RFQ on January 31st. Qualifications are due March 24th. CHH will be
responding solo for the B-North affordable site, as well as part of the Jonathan Rose Co. team for the
other parcels.
5. Central District:
The Landmark Board accepted the community member’s application for nomination. The hearing will
be on February 5th at 3:30pm. At that hearing CHH and our consultants (DKA Architecture and Larry
Johnson Partnership) will present our opinion that the building does not merit preservation, however,
the history of Liberty Bank will be honored.
We anticipate receiving the environmental report from Key in the next two weeks. Initial results
indicate that the contamination levels they discovered were below actionable thresholds, it is likely
that DOE will require the wells to be located closer to the source and for the wells to be monitored for
four quarters in order to obtain an NFA letter. Staff is closely monitoring this issue to understand the
extent of the contamination.
6. Mt Baker TOD:
The limited Phase II has found Vinyl Chloride, a dry cleaning solvent by-product, at above-actionable
levels, in the groundwater of the site. Additional testing is needed to confirm the extent of the
contamination and source. Staff have requested a contingency period extension from the Seller.
CAPITOL HILL HOUSING FEBRUARY 2014
FINANCE COMMITTEE REPORT AND MINUTES
The Finance Committee met Tuesday, February 4, 2014. Committee members Sharron O’Donnell, Drew Porter (by telephone) and Paige Chapel (by telephone) met with CFO Jill Fleming. During January field work began on our 2013 audits. We issued IRS Forms W-2 and 1099s for 2013. We interviewed for our open staff accountant position but did not hire. We will repost the position after the audit push subsides. The committee reviewed the report. The committee conducted the annual fraud risk assessment and discussed the work plan for the year. We also discussed key financial ratios presented by Jill and will consider at a future meeting which of the six ratios (or alternatives) to track on an ongoing basis. Paige suggested no more than four ratios, computed quarterly. The committee discussed two potential non-board members joining the committee and changed the monthly meeting time from 8 a.m. to 4 p.m. starting in March to accommodate their schedules. Comments and Analysis re: December 31, 2013 CHH Blended Balance Sheet Cash increased over November as we received the $250,000 EQII loan from Union Bank in December. We also ended the year with a year over year increase in cash of $189,000. The addition of the 1214 Boylston Limited Apartments to the reporting entity in 2013, following the Year 15 exit of the limited partners, masks what otherwise would be a noticeable decrease in notes payable at year end following the debt payments on the 12th Avenue Arts capital campaign loan and the payoff of the Berneva loan (see below). Comments and Analysis re: Year to date December 31, 2013 Blended Operating Statement Note: The 2013 results are shown both before and after elimination of transactions relating to 12th Avenue Arts financing and payoff of the Berneva loan. Grants & Donations, Interest Income and Debt Service are each over budget due to 12th Avenue Arts leverage lender transactions. During 2013 CHH Foundation granted $1,157,563 to CH Development Association from capital campaign proceeds which were used to pay down the capital campaign bridge loan. A portion of the debt service variance, $124,014, is offset by interest income in the same amount received on the QLICI loans. The debt service variance also includes the payoff of the Berneva bank loan in December in the amount of $133,643. The adjusted operating statement shows positive results in 2013. Total revenues were under budget by $156,569 which was more than mitigated by operating expenses coming in under budget by $237,086. The overall positive variance is attributable primarily to strong performance by the portfolio. Development Fee income is under budget due to the delay in receiving the 12th Avenue Arts commercial developer fee, budgeted at $525,000 and due at 50% completion. It should be received in February 2014. This shortfall was offset, in part, by 12th Avenue Arts residential developer fee received in 2013 but budgeted for 2012. Both delays resulted from the delay in closing at the end of 2012, after the 2013 budget had been approved. Jefferson developer fees received were $89,000 under budget. Vacancy loss for 2013 was 2.7% across the portfolio. This is a historically low vacancy rate for CHH. Vacancy loss was 3.4% for 2012 and 3.9% for 2011. For 2013 and 2012 budget purposes we assumed vacancy rates ranging from 3 – 5 % depending on the building. Consulting is over due to payment of a 2012 grant expense in 2013. Compliance, Taxes & License is over primarily due to payment of 2012 taxes in 2013 for Haines. Because Haines did not have tax exempt ownership for the full year, we were required to pay second half taxes. It is now exempt. Payroll, Taxes and Benefits continued under budget. There were several positions open in the CHH office during the year. Our unemployment tax rate was lower than budgeted. Repair and Maintenance were under budget primarily due to fewer unit turns resulting from low vacancy.
Capitol Hill Housing Improvement ProgramBalance Sheets
Unaudited UnauditedDecember 31, 2013 November 30, 2013 December 31, 2012 December 31, 2011 December 31, 2010
Total KeyBank 1,075,273 Cash Various Petty Cash - CHHIP 3,989
Total Petty Cash 3,989 Total Unrestricted - CHH Blended Components 1,360,596
Total All Cash - CHH Blended Components 5,940,639
CHHCASH IN BANK
FOR THE MONTH ENDING: December 2013
1/31/2014 4:47 PM M:\Finance & Accounting\Staff Accountant\Recurring\ 2013 Cash Report ‐ Fianance Committee.xlsx DEC 13 Page 1 of 2
CHHCASH IN BANK
FOR THE MONTH ENDING: December 2013
Bank Discrete Component Unit Type BalanceChase Harrison Reserves 127,164 Chase Oleta Reserves 128,148 Chase Woodland Park Ave LLC Reserves 121,958
Total Chase 377,269 KeyBank Broadway & Pine Reserves 222,009 KeyBank Broadway & Pine Security Deposit 20,207 KeyBank El Nor LP Reserves 674,092 KeyBank El Nor LP Capital Reserves 119,403 KeyBank El Nor LP Security Deposit 7,710 KeyBank Fleming Apts LP Security Deposit 19,665 KeyBank Harrison Security Deposit 17,100 KeyBank Helen V Apts LLC Reserves 344,876 KeyBank Helen V Apts LLC Security Deposit 7,194 KeyBank Holiday Apts Security Deposit 19,365 KeyBank Jefferson & 12th Reserves 244,661 KeyBank Jefferson & 12th Security Deposit 41,177 KeyBank Oleta Security Deposit 24,389 KeyBank Pantages Apts LLC Security Deposit 25,882 KeyBank Silvian Security Deposit 6,057 KeyBank SOPI / Unity Village Reserves 146,738 KeyBank SOPI / Unity Village (Quantum) Security Deposit 12,263 KeyBank Woodland Park Ave LLC Security Deposit 12,635 KeyBank 12th Avenue Arts Associates LLC 12AA HEDC CDE Controlled Account 1,815,572 KeyBank 12th Avenue Arts Associates LLC 12AA Key CDE Controlled Account 2,728,687 KeyBank 12th Avenue Arts Associates LLC 12AA HEDC Fee Reserve Account 319,821 KeyBank 12th Avenue Arts Associates LLC 12AA Key Fee Reserve Account 535,708
Total KeyBank 7,365,211 Bank of NY Mellon Trust Co 12th Avenue Arts Associates LLC 12AA 108 Loan Guaranteed Loan Funds Account 23,500
Total Bank of NY Mellon Trust Co 23,500 UnionBank Holiday Reserves 163,708
Total UnionBank 163,708 US Bank Pantages Apts LLC Reserves 655,202 US Bank Silvian Reserves 402,960
Total USBank 1,058,162 BofA Fleming Apts LP Reserves 95,749
Total BofA 95,749 Total Restricted - Discrete Components 9,083,600
KeyBank Fleming Apts LP Operating Checking 9,771 KeyBank El Nor LP Operating Checking 110,758 KeyBank Harrison Operating Checking 25,488 KeyBank Oleta Operating Checking 12,009 KeyBank Helen V Apts LLC Operating Checking 26,691 KeyBank Pantages Apts LLC Operating Checking 67,156 KeyBank Silvian Operating Checking 145,994 KeyBank Broadway & Pine Operating Checking 24,862 KeyBank Woodland Park Ave LLC Operating Checking 28,064 KeyBank Holiday Apts Operating Checking 11,986 KeyBank SOPI / Unity Village (Quantum) Operating Checking 80,714 KeyBank Jefferson & 12th Construction 164,903 KeyBank Jefferson & 12th Operating Checking 121,614 KeyBank Twelfth Avenue Arts Housing LLP 12AA Housing-Construction Checking 40,479 KeyBank 12th Avenue Arts Associates LLC 12AA Commercial-Construction Ckg 1,035,274
Total KeyBank 1,905,763 Total Unrestricted - Discrete Components 1,905,763
Total All Cash - Discrete Components 10,989,363
1/31/2014 4:47 PM M:\Finance & Accounting\Staff Accountant\Recurring\ 2013 Cash Report ‐ Fianance Committee.xlsx DEC 13 Page 2 of 2
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1402 Third Avenue, Suite 200 T 206 329-7303
Seattle, WA 98101 F 206 329-1857
www.capitolhillhousing.org
FOR IMMEDIATE RELEASE February 6, 2014
Media Contact: Michael Seiwerath, Capitol Hill Housing Foundation 206-204-3840 | [email protected]
Capitol Hill Housing Welcomes Cynthia Chirot as its Chief Operating Officer Experienced Executive to Lead Organization’s Operational Activities
Seattle, WA — Following a national search, Capitol Hill Housing has selected Cynthia Chirot as its new Chief Operating Officer. Cynthia will lead all operations activities of this Seattle-based affordable housing and community development organization beginning in March. Cynthia brings to the position decades of experience as a COO, as well as knowledge of affordable housing and real estate development in Seattle. She started her career at Seafirst Bank and spent many years as COO at the Federal Home Loan Bank, where she helped develop its Affordable Housing Program, and served as Interim COO of the Washington Women’s Foundation. Most recently, she was Regional Chief Operating Officer at the American Red Cross – Western Washington, where she implemented a number of staff development programs. “I am very pleased that Cynthia will be joining our leadership team here at Capitol Hill Housing,” said CEO Christopher Persons. “As a former CHH board member of several years, she is well versed in affordable housing, and her extensive leadership experience will be valuable for our growing organization.” “I am thrilled to join the extraordinary team of Capitol Hill Housing, who has helped build vibrant and diverse neighborhoods throughout central Seattle,” said Cynthia. “I look forward to being part of this outstanding staff and the organization’s future. As a longtime resident of Capitol Hill, the mission of CHH is of particular importance to me.” Cynthia is a member of the downtown Seattle Rotary and the Washington Women’s Foundation. She holds an MBA from the University of Washington and a BA from the University of North Carolina and is a graduate of Leadership Tomorrow. She and her husband Dan are Capitol Hill residents.
About Capitol Hill Housing Capitol Hill Housing builds vibrant and engaged communities through affordable housing and community development in Seattle. We provide secure, affordable apartments to more than 1,800 of our neighbors across the city. Based in Capitol Hill, we have properties throughout the Seattle area, including historic apartments as well as award-winning new developments. Our sustainable communities work focuses on transit-oriented development, neighborhood walkability and promoting commerce and culture. In February 2013, Capitol Hill housing broke ground on 12th Avenue Arts. This pioneering project will transform a parking lot into a beautiful building at 12th and Pine on Capitol Hill – featuring affordable apartments for families and individuals, performing arts space, community meeting space, and local retail – all under one roof. 12th Avenue Arts opens in the fall of 2014. capitolhillhousing.org Image attached: Cynthia Chirot
Highly skilled Chief Operating Officer with experience in non-profit and banking environments. A proactive and mission driven leader with a strong track record in programs and operations. Substantial experience in:
● Financial management ● New initiative/project management ● Constituency building ● Organizational capacity building ● Strategic planning and execution ● Outcome measurement and tracking ● Board development and governance ● Mentoring individuals and teams
PROFESSIONAL EXPERIENCE
American Red Cross Western Washington Chapters 2009 - Present
Regional Chief Operating Officer
Provide oversight for all program delivery, volunteer services and back office operations, including budget, finance, facilities, and human resources.
• Led organization in redrafting three year strategic plan to reflect changes in organization and goals and the budgets to support their implementation; developed well received board of directors quarterly dashboard reflecting status against key metrics and strategic plan, as well as current accomplishments and initiatives;
• Managed regional restructuring, including redesign of operations at three chapters and staff reduction in force;
• Established staff mentoring program and increased professional training programs;
• Obtained three year grant for 20 member AmeriCorps team to promote preparedness in region;
• Oversaw successful consolidation of accounting systems for 17 chapters.
Washington Women’s Foundation 2008 - 2009
Interim Chief Operating Officer Led infrastructure development and capacity building during leadership transition for the organization.
• Developed governance policies and updated by laws consistent with best practices for community foundations;
• Developed new financial management policies, practices, controls, reporting, dashboard and financial services provider relationships to enhance transparency and effective oversight of finances; established the 2008 and 2009 budgets; selected new auditor and led foundation through first financial review and preparations for first audit; staffed Finance Committee of the Board;
• Enhanced communications with non-profits, members and community by leading team through development of a new website.
Directed educational programs and membership development, raised sponsorship funds to support operations and worked with 24 member board to further mission.
• Expanded membership by 15% in the first year; raised $170,000 in sponsorships, building relationships with over 40 sponsors;
• Increased board size and diversity;
• Built stronger profile for organization in the investment and entrepreneurial community through article series and press coverage, as well as personal calls and other outreach programs.
Federal Home Loan Bank of Seattle 1984 - 2005
Chief Operating Officer Held three senior management positions over 21 years, including oversight of $9 million budget and 58 staff. • Conceptualized and directed market share strategy that achieved 75% penetration
of commercial bank market; increased bank membership from 102 to 375;
• Oversaw establishment of new community investment and affordable housing programs that provided $50 million to 600 housing and community projects;
• Shaped strategic plan and corporate policies with CEO, Board of Directors and leadership group;
• Directed efforts to enhance organizational infrastructure including compensation and benefit programs, development of a technology plan, and organizational realignment to support goals and achieve efficiencies;
• Built strong ties with key constituencies including banking regulators, trade groups, housing organizations, government agencies and members of Congress; spoke at more than 25 trade and regulatory group meetings;
• Initiated enterprise risk reporting process for Board of Directors; led Sarbanes Oxley team addressing key corporate governance areas as bank prepared for SEC registration; strengthened insurance programs.
Bank of America/Seafirst 1977 - 1984
Vice President and Manager, Product Development and Management Directed staff of five developing and managing financial services to consumers.
OTHER RELEVANT EXPERIENCE
Metrolina Warehouse, LLC 2004 – Present
Manager Provide oversight for family owned property in North Carolina that includes 60,000 sq. ft. of commercial space rented to multiple retail and wholesale tenants; work with local property manager on decisions, manage finances and handle buyer inquiries.
Masters in Business Administration, University of Washington BA, Magna Cum Laude, Phi Beta Kappa, University of North Carolina, Chapel Hill Leadership Tomorrow Graduate
CIVIC ROLES
Director, past Board President, PeaceTrees Vietnam 2007 – Present Member, Washington Women’s Foundation 2008 – Present
Director, past Audit Chair and Treasurer, Board of Governors, City University of Seattle 2006 – 2013
Member, Rotary Club of Seattle 1996 – Present
Director, past Board Chair, Capitol Hill Housing 1999 – 2009 Director, Pacific Coast Banking School 2003 – 2005
Chair, Housing Levy Oversight Board, City of Seattle 2000 Chair, Downtown Urban Planning Committee for Housing 1998 – 1999
REFERENCES
Norman Rice, CEO, The Seattle Foundation Carla Lewis, CEO, Washington Women’s Foundation Randy Hutson, Regional CEO (retired) American Red Cross, Western Washington
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Memorandum
CHH Annual Disclosure Statements 2013
To: CHH Board of Directors From: Chris Date: February 11, 2013 Re: Disclosures BACKGROUND
As a PDA board members are asked to make appropriate disclosures regarding any potential conflict of interest or anything that might appear to be a conflict. To that end we have enacted the following policy. Disclosure and Recusal Requirements for CHH Board Members Prepared June 15, 2012 (revised July 10, 2012)
As a public development authority we are governed both by State (RCW) and City (SMC) code which provides oversight and governance over our activities as a municipal corporation. The SMC particularly sets the rules for the ethical behavior of board members. The CHH board has the authority as a municipal corporation to interpret these codes and establish policies and procedures to administer them. Annual Disclosures Each board member will provide a written statement of disclosures outlining potential conflicts of interest with ongoing CHH activities. This statement is an internal document that will be submitted at the same time that board members complete their Annual Statements of Economic Interest. Because this procedure is new for us, I have written the following annual disclosures for each board member. Please let me know if you have anything to add or subtract otherwise I will ask the board to accept these into the record at the March 2013 board meeting. SUGGESTED ANNUAL DISCLOSURES: Dana Behar: My firm HAL Investments invests in and develops real estate throughout Seattle including Capitol Hill. Cathy Hillenbrand: I am the chair of the Capitol Hill Champion which is leading the community process in negotiations with the City and Sound Transit for the TOD on Capitol Hill. I am also a property owner in close proximity to the Capitol Hill TOD. Alice Quaintance: I am a property owner in close proximity to the CHH property known as the Tiltsonian Apartments. Paige Chapel: My firm CARS, Inc, is a rating agency for CDFI’s throughout the country. I live across the street from the Berneva.
Andy Read: My firm, Deloitte, represents in some matters, Vulcan Real Estate. Michael Malone: My firm, Hunter’s Capitol, is a developer, owner and manager of several commercial real estate interests on Capitol Hill. Rachel Ben Shmuel: I work for Vulcan Real Estate as a Senior Project Manager. Matt Roewe: I work for VIA Architects where I am a Director. Sharron O'Donnell: None Drew Porter: None Rob Schwartz: I am the Associate Vice President of Facilities at Seattle University which has many real estate interests along 12th Avenue. Liz Dunn: My firm, Dunn and Hobbes is a developer, owner and manager of several commercial real estate interests on Capitol Hill. Brian Lloyd: My firm Beacon Development is an active developer of affordable housing in the Northwest, including the city of Seattle. Farin Houk: I am a founder of the Amistad School which is located in the Central District near the Key Bank site and I am a resident of Gilman Court.
ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE
CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION
RESOLUTION NO. 2014-03
EXTENSION OF CITY OF SEATTLE LOAN SECURED BY FREDONIA APARTMENTS
WHEREAS The Capitol Hill Housing Improvement Program (the Program) is a public corporation organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal Code Ch. 3.110. As such, it is a political subdivision of the State with an area of operation focused on in the Capitol Hill community in the City of Seattle; and
WHEREAS the purpose of the Program shall be to assist homeowners, property owners,
residential tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities; and
WHEREAS In 1986 the Program acquired and began the rehabilitation of a building located at
1509 East Mercer Street, Seattle Washington 98112 known as Fredonia Apartments (The Project); and WHEREAS The Program financed the acquisition and rehabilitation of the Project, in part, with a
loan in the amount of $409,760 (the “Loan”) from the City of Seattle (“City”) and WHEREAS the original maturity date of the Loan was March 1, 2008 and this maturity was
extended six years by the city to March 1, 2014; and WHEREAS the Program desires to extend the maturity of the loan to March 1, 2019 and the City
has agreed to this extension; and
WHEREAS Article VII, Section 3 of the Program Charter states that “Prior authorization or concurrence of the Board by resolution shall be necessary for … (b) The contracting of debts, issuance of notes, debentures or bonds, and the mortgaging or pledging of corporate assets to secure the same”; therefore be it
RESOLVED that the CEO is solely authorized and directed to execute any notes or other
documents to extend the Loans with the City of Seattle through March 1, 2019, and that all other terms to be unchanged from the original note and loan agreement secured by Fredonia Apartments, 1509 E. Mercer Street, Capitol Hill Seattle;
CERTIFICATION I __________________________, certify that I am the __________________ of Capitol Hill Housing Improvement Program (“the Program”) and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of the Program held on the 10th day of February 2014, in accordance with the Charter and Rules and Regulations of the Program upon proper notice and at which time a quorum was present. DATED the 10th day of February 2014. By______________________________________ Its_____________________________________