PDA Board Meeting September 2020

PDA Board Meeting September

September 2020

Meeting Meeting

Board Board PDA PDA

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SECTION 1: 1 Meeting Keys

SECTION SECTION

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September 2020 Community Roots Housing Board Meeting Keys and Agenda The Meeting will start at 5:30 PM. Please try to arrive a little early so we can start on time. As always, reading the Keys in advance of the meeting will provide you with a good overview of the topics to be addressed and voted on.

Note: Because of the meaty topics on the agenda for tonight, we are front loading the meeting with more routine work so that the remainder of the meeting can take place without a sense of urgency.

As always, we will enter executive session as needed pursuant to RCW 42.30.110.

Meeting

Introductions: Board, staff and guests make brief introductions.

Disclosures and Recusals: Board members will review items on the agenda and make any necessary disclosures and recusals.

Consent Agenda: Shalimar will present the consent agenda--any Board member can remove an item from consent agenda for full Board consideration. The Board will be asked to adopt the consent agenda.

Resolution 2020-18: S. Annex (YouthCare) Funding Application This is a standard resolution that authorizes the CEO to apply for normal public funding through the City of Seattle, King County, and the State of Washington or other sources to fully fund the project. This was approved by the Property Development Committee on September 1, 2020 for recommendation to the full board and inclusion in the consent agenda.

Resolution 2020-19: Banner Bank Line of Credit Extension This resolution renews our $500,000 operating line of credit with Banner Bank at the same terms. CRH maintains and manages multiple lines of credit for general operating and real estate investment. We have maintained the Banner line since 2015. This was approved by the Finance & Asset Management Committee on September 1, 2020 for recommendation to the full board and inclusion in the consent agenda.

Public Comment: Because of the unusual meeting circumstances at tonight’s meeting, we will have no verbal public comments at the meeting. (Please note, RCW 42.30.030 provides: All meetings of the governing body of a public agency shall be open and public and all persons shall be permitted to attend any meeting of the governing body of a public agency, except as otherwise provided in this chapter. However, there is no provision nor any requirement for allowing the public to speak or make comments at a public meeting.)

Real Estate Development Resolutions

CHP1 Financing, Entity Creation and Acquisition Resolutions: The following three resolutions 2020-20: Boylston Howell Rehabilitation; Resolution 2020-21: Bremer Rehabilitation; and Resolution 2020-22: John Carney Rehabilitation move forward the CHP1 rehabilitation project and were

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approved by the Property Development Committee on September 1, 2020 for recommendation to the full board. Each of these projects were previously approved by the Board (resolutions 2018-09; 2020-04, 2020-12) for inclusion into a single 4-property tax credit development entity, which was allocated a City of Seattle funding award but was not competitive for bond financing. The City agreed to finance three of the projects with a somewhat reduced scope without tax credit financing.

The current resolutions are largely identical (except that John Carney includes a HUD HAP contract, Boylston includes capital campaign funding, and the Bremer includes a FEMA loan) and provide for CRH to create, own and manage a new ownership entity for each project, take on new debt and refinance all three projects, and to effectively do everything necessary to redevelopment the buildings. Each resolution sets forth approximate financing amounts with not-to-exceed levels.

Financing for each project: John Carney Boylston Howell Bremer City 1,954,679 2,603,143 292,000 Other 500,000 3,719,417 Perm Debt 1,101,766 1,208,898 1,596,130 3,906,794 Total 3,056,445 4,312,041 5,607,547 12,796,033

These are standard resolutions that were prepared by our legal counsel. These resolutions will be considered as a group and voted on individually.

Resolution 2020-23: Heartwood (U14) HPN Predevelopment Loan Resolution 2020-23 ratifies Resolution 2020-16 which was adopted by the Board at their July 2020 meeting and which authorized CRH to apply for and close on a $2 MM predevelopment loan for Heartwood Apartments (U14). Additionally, Resolution 2020-23 authorizes CRH to pledge its membership interest in the Helen V apartments as security for the loan. The loan closed and funded on September 4, 2020.

Finance and Asset Management

Financial Summary: Derrick, Muhammadou and the Finance and Asset Management Committee presents its regular report and dashboard through July 2020.

Presentation and Discussion

Staff Proposal to Support the Defund the Police Initiative: The Staff Executive Team received a letter signed by twenty-six staff members on Wednesday, July 29th requesting action prior to the Seattle City Council meeting on Monday, August 3rd calling to defund SPD and reimagine public safety. The request was discussed at the August Board meeting, at two subsequent Executive Committee meetings, and board members heard from staff during a listening session. At tonight’s meeting, the Board will deliberate on the question and consider specific action.

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Real Estate Development Opportunity

Keiro Site: The Keiro site is a 61,488 square foot parcel at Yesler and 16th Ave with existing buildings of 76,000 square feet in which senior housing and services focused on the Japanese American community operated for many years under the name Nikkei Concerns and later Keiro. The site was acquired by a private developer (Shelter Holdings) earlier this year who moved forward with market rate multifamily housing plans while hosting a homeless shelter in the existing building during the development process.

This process was disrupted by a group of advocates led by Africatown Community Land Trust who are now in negotiations with Shelter Holders to acquire the property. Community Roots Housing has been asked by the City and Africatown to consider partnering with them in the acquisition and development of the site.

Tonight’s discussion seeks guidance and assent to enter into negotiations with Africatown. Pending those negotiations, an initial resolution would be presented to the Board at the October meeting.

Board Packet Sections 1. Meeting Keys, p. 5-7 2. Board Agenda, p. 11 3. Resolution 2020-20: Boylston Howell Rehabilitation, p. 15-21 4. Resolution 2020-21: Bremer Rehabilitation, p. 25-30 5. Resolution 2020-22: John Carney Rehabilitation, p. 33-39 6. Resolution 2020-23: Heartwood (U14) HPN Predevelopment Loan, p. 43-47 7. September 2020 Finance Report, July Statements and Asset Management Report, p. 51-58 8. Letter from Staff for Defund the Police Discussion, p. 61-65 9. Consent Agenda and Attachments, p. 69-101 a. Contracts and Expenditures, p. 69 b. August 2020 Board Minutes Draft, p. 70-72 c. Property Management Committee Report and Minutes, p. 73-74 d. Property Management Dashboard, p. 75-76 e. Fundraising & External Relations Memo, p. 77-82 f. Property Development Committee Report and Minutes, p. 83-84 g. Capitol Hill EcoDistrict Report and Minutes, p. 85-87 h. Executive Committee Report and Minutes, p. 88-89 i. Joint Board Development Committee Report and Minutes, p. 90-91 j. Special Meeting of the Executive Committee – Sept. 3, 2020, p. 92 k. Resolution 2020-18: S. Annex (YouthCare) Funding Application, p. 93-96 l. Resolution 2020-19: Banner Bank Line of Credit Extension, p. 97-101

Upcoming Meetings and Events Upcoming Action Items Please let Chris or Sarah know if you’d like additional information on any event or meeting. Fall Land Acquisition Northgate Fall Yesler Family Bond Inducement Sept 28 Executive Committee Fall U14 Predev Spending Oct 8 Omnivorous Fall Northgate Predev financing Oct 12 Board Mtg November Yesler Family Bond Issue and Oct 22 Joint Boards Training – EcoDistrict & Public Realm Plan Omnibus Resolution Oct 26 Executive Committee December 2021 Budget

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SECTION 2: 2 Board Agenda

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COMMUNITY ROOTS HOUSING BOARD September 14, 2020 5:30-7:30 PM Regular Meeting Zoom

https://us02web.zoom.us/j/81356980073?pwd=VFVoVXN0TVFvZGxidUFLenBFWWJWQT09 Meeting ID: 813 5698 0073 Password: 423263

AGENDA

5:30 Call to Order (Gonzales) – 15 min total 1. Introductions, Welcome 2. Disclosures and Recusals 3. Approve Consent Agenda Sec. 9, Page 69 a. Resolution 2020-18: S. Annex (YouthCare) Funding Application b. Resolution 2020-19: Banner Bank Line of Credit Extension

5:45 Real Estate Development Resolutions (Breckenridge, Fikso, Wilkening) – 20 min total 1. Resolution 2020-20: Boylston Howell Rehabilitation Sec. 3, Page 15 2. Resolution 2020-21: Bremer Rehabilitation Sec. 4, Page 25 3. Resolution 2020-22: John Carney Rehabilitation Sec. 5, Page 33 4. Resolution 2020-23: Heartwood (U14) HPF Predevelopment Loan – 10mins Sec. 6, Page 43

6:05 Finance and Asset Management (Belgarde, Drammeh) – 5 min total 1. Finance Report a. Financial summary, cash management report: July 2020 Financial Statements Sec. 7, Page 51

6:10 Presentations and Discussion (Gonzales, Persons) – 55 min total 1. Staff Proposal to Support the Defund the Police Initiative Sec. 8, Page 61

7:05 Real Estate Development Opportunity (Breckenridge, Fikso, Wilkening) – 30 min total 1. Keiro Site Presentation

7:35 Adjourn (Gonzales)

CHDA to meet immediately following the PDA Board Meeting at 7:35pm

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SECTION 3: 3 Resolution 2020-20:

Boylston Howell SECTION SECTION Rehabilitation

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Community Roots Housing PDA Board 2020 -20

Overview: Boylston Howell Apartments – CHP1 Omnibus Project Financing Resolution

Purpose: Authorize CRH to form LLC entity for Boylston Howell and CRH to serve as its manager; obtain new funding and refinancing of the existing debts, and to close on sources of capital financing needed to complete the rehabilitation of the project.

Type of Resolution/Motion: o Is this a formal resolution? ☒ Yes ☐ No o Are we requesting a motion from the floor? ☐ Yes ☒ No o Has this resolution been presented to a Board Committee?: ☒ Yes ☐ No If so, which committee or committees?: PDC

Charter or Rules and Regulations Modification: o Does this Resolution change the Charter or Rules and Regulations? ☐ Yes ☒ No If yes, you need to give notice to the Board 15 days prior to the proposed change. Changes to the Charter or Rules and Regulations must use the strike out and underline format so change is clear to reader.

General description and purpose: The resolution authorizes CRH, in its roles as a public corporation, to form a limited liability company of which CRH will serve as the manager, project sponsor, developer, property manager and guarantor, to negotiate, enter into, execute and deliver all debt and other finance related documents required to complete the project.

Organizational requirements of resolution: None

Financial cost of the resolution: None Pros: This is necessary steps in the financing of the Boylston Howell rehabilitation – CHP1 Project. Cons: None

Further Board Action or Reporting: o Is further action required from the Board or a Board Committee? ☐ Yes ☒ No If yes, please describe: Please include here whether full Board or Committee needs to take action, and anticipated dates for action. o Is further reporting required to the Board or a Board Committee? ☐ Yes ☒ No If yes, please describe: Please include here whether full Board or Committee requires reporting, and anticipated dates for reporting.

Author of Resolution Overview: Ufilya Davis/Jeremy Wilkening

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RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF COMMUNITY ROOTS HOUSING, A WASHINGTON PUBLIC CORPORATION (Boylston Howell Rehabilitation)

RESOLUTION 2020-20

WHEREAS Capitol Hill Housing Improvement Program, a Washington public corporation, now known as Community Roots Housing (“CRH”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal Code Ch. 3.110;

WHEREAS the purpose of CRH shall be to preserve, develop, own and operate affordable multifamily housing, as well as cultural, social and economic facilities and to provide programs and services to promote equity and resilience in communities and to perform other functions as the Board shall determine;

WHEREAS CH Development Association, a Washington nonprofit corporation (“CHDA”), was organized to support and carry out the purposes of CRH;

WHEREAS CRH is the current owner of an affordable multi-family housing development known as the Boylston Howell Apartments located in Seattle, King County, Washington (the “Project”);

WHEREAS CRH desires to participate in the renovation and rehabilitation of the Project (the “Rehabilitation”);

WHEREAS CRH and CHDA desire to form Boylston Howell Apartments LLC, a Washington limited liability company (the “Company”), of which CRH will serve as the manager and CHDA will serve as the member, for the purpose of acquiring, rehabilitating and owning the Project;

WHEREAS, CRH and CHDA desire to cause the Company to accept conveyance of the Project in furtherance of the Rehabilitation;

WHEREAS CRH and CHDA, may cause the Company to accept conveyance of the Project subject to the existing debt secured by the Project (the “Existing Debt”) or may retire the Existing Debt, as any Authorized Representative (defined below) deems reasonably necessary or advisable;

WHEREAS on behalf of the Company, CRH and CHDA, desire to obtain funding in furtherance of the Rehabilitation of the Project and refinancing of the Existing Debt, as applicable from the following sources (collectively, the “Project Financing”):

• A new loan from the City of Seattle, Office of Housing (the “City”), in the approximate principal amount of $[2,603,143] and not to exceed $[4,000,000] (the “City Loan”);

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• Proceeds from the Rise Together capital campaign (the “Capital Campaign Funds”) and deferred developer fee (the “Deferred Developer Fee”), in an aggregate approximate amount of $[500,000], or such higher or lower amount as any one Authorized Representative deems reasonably necessary or advisable, the proceeds of which shall be loaned to the Company from CRH; and

• Permanent financing from a to-be-determined lender (the “Permanent Lender”) in the approximate principal amount of $[1,208,898] and not to exceed [$2,800,000] (the “Permanent Loan”), on terms deemed reasonable by any one Authorized Representative, and other public and/or private sources, as may be deemed reasonably necessary or advisable for the purpose of refinancing the Existing Debt, as applicable, and in furtherance of the Rehabilitation of the Project.

WHEREAS, CRH and/or CHDA may be asked to act as guarantor for any of the Project Financing and CRH has found it to be in the best interests of CRH, the Company and the Project to act as guarantor for any of the Project Financing, as applicable, in furtherance of the foregoing;

WHEREAS on behalf of the Company, CRH has advanced funds for predevelopment costs for the Rehabilitation of the Project, which funds shall be reimbursed to CRH upon the closing of the Project Financing;

WHEREAS CRH and CHDA, have found it to be in the best interests of the Project to conduct certain predevelopment work including, but not limited to, feasibility studies, geotechnical studies, environmental studies, and engagement with various third parties, including without limitation, architects, engineers and contractors; and

WHEREAS, the Board of CRH deems it to be in the best interest of CRH to take all actions reasonably necessary or advisable to (i) serve as the manager of the Company; (ii) convey the Project to the Company; (iii) cause the Company to own the Project and assume the Existing Debt, as deemed reasonably necessary or advisable by any one Authorized Representative; (iv) close on the Project Financing, as applicable; (v) refinance the Existing Debt currently secured by the Property, as applicable; (vi) serve as guarantor for any of the Project Financing, as applicable; and (vii) conduct predevelopment work in furtherance of the Rehabilitation of the Project.

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

RESOLUTIONS

1. RESOLVED that CRH, in its individual corporate capacity, is authorized, empowered and directed to serve as the manager of the Company and to enter into, execute, and deliver all such documents as may be required or advisable to be admitted to the Company.

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execution and delivery of documents, such documents including, but not limited to, a conveyance agreement, bargain and sale deed, bill of sale, assignment of contracts and intangibles, assignment of leases and rents, and any other such as documents as may be reasonably necessary or advisable.

3. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take such actions as may be reasonably required or advisable to cause the Company to own, rehabilitate and operate the Project and to negotiate, execute and deliver all such documents in connection therewith.

4. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take such steps as may be reasonably necessary or advisable to cause the Company to assume the Existing Debt, as applicable, including, but not limited to, obtaining consents from lenders of the Existing Debt, negotiating executing and delivering loan assumption documents and paying related fees as may be reasonably required by the lenders of the Existing Debt.

5. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be reasonably required or advisable to close the Permanent Loan, including but not limited to negotiating, executing and delivering any documents, such documents including but not limited to, a loan agreement, promissory note, deeds of trust, security agreements, indemnities and guaranties, and any and all other such documents as may be reasonably necessary or advisable to effectuate the foregoing.

6. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be reasonably required or advisable to make the proceeds of the Capital Campaign Funds and the Deferred Developer Fee available to the Company through one or more sponsor loans, including but not limited to negotiating, executing and delivering any documents, such documents including but not limited to, any agreements, notes, deeds of trust, deferred fee agreements or other such documents as reasonably necessary to effectuate the foregoing.

7. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be required or advisable to obtain other financing from public and/or private sources, on terms deemed reasonable by any one Authorized Representative (defined below), including, but not limited to, negotiating, executing and delivering any documents necessary or advisable to effectuate the foregoing.

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Representative, such documents including, but not limited to, modification agreements, reaffirmation agreements and/or amendments related thereto.

9. FURTHER RESOLVED, that CRH is authorized, empowered and directed to act as guarantor for any of the Project Financing on terms reasonably acceptable to any one Authorized Representative.

10. FURTHER RESOLVED, that CRH is authorized, empowered and directed to advance funds to be used for predevelopment costs of the Rehabilitation of the Project, which funds shall be reimbursed upon the closing of the Project Financing.

11. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as any one Authorized Representative deems reasonably required or advisable to undertake predevelopment work in furtherance of the Rehabilitation of the Project, including but not limited to, the negotiation, execution and delivery of documents, such documents, including, but not limited to, architect’s contracts, construction contracts, geotechnical services agreements, engineering contracts, environmental reports and other agreements with third-party service providers.

12. FURTHER RESOLVED, that CRH, in its individual corporate capacity and in its capacity as manager of the Company, is authorized, empowered and directed to undertake such further acts and to execute and deliver such other documents in its individual corporate capacity, and as the manager of the Company, as may be deemed reasonably necessary or proper in order to carry into effect any of the provisions of these Resolutions.

13. 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.

14. FURTHER RESOLVED that any and all documents hereby authorized to be executed on behalf of CRH are authorized to be executed or taken by any one of the following individuals or their duly appointed successors (each an “Authorized Representative”):

Name: Title:

Shalimar Gonzales Chair

Drew Porter Vice Chair

Derrick Belgarde Treasurer

Frank Alvarado Vice Chair

Jill Cronauer Secretary

Christopher Persons Chief Executive Officer

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15. Any one Authorized Representative is authorized, empowered and directed to take such further action on behalf of CRH, as such Authorized Representative may deem necessary to effectuate the foregoing; and

16. All acts taken by CRH prior to the date hereof and in furtherance of the foregoing are hereby ratified and affirmed.

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CERTIFICATE

I, ______, certify that I am the Secretary of Capitol Hill Housing Improvement Program, now known as Community Roots Housing (the “Corporation”), and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of the Corporation held on ______, 2020, 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 ______, 2020 By: ______

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SECTION 4: 4 Resolution 2020-21:

Bremer Rehabilitation SECTION SECTION

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Community Roots Housing PDA Board 2020-21

Overview: Bremer Apartments – CHP1 Omnibus Project Financing Resolution

Organizational requirements of resolution: None

Financial cost of the resolution: None Pros: This is necessary steps in the financing of the Boylston Howell rehabilitation – CHP1 Project, Cons: None

Author of Resolution Overview: Ufilya Davis/Jeremy Wilkening

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RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF COMMUNITY ROOTS HOUSING, A WASHINGTON PUBLIC CORPORATION (Bremer Rehabilitation)

RESOLUTION 2020-21

WHEREAS CH Development Association, a Washington nonprofit corporation (“CHDA”), was organized to support and carry out the purposes of CRH;

WHEREAS CRH is the current owner of an affordable multi-family housing development known as the Bremer Apartments located in Seattle, King County, Washington (the “Project”);

WHEREAS CRH desires to participate in the renovation and rehabilitation of the Project (the “Rehabilitation”);

WHEREAS CRH and CHDA desire to form Bremer Apartments LLC, a Washington limited liability company (the “Company”), of which CRH will serve as the manager and CHDA will serve as the member, for the purpose of acquiring, rehabilitating and owning the Project;

WHEREAS, CRH and CHDA desire to cause the Company to accept conveyance of the Project in furtherance of the Rehabilitation;

• Federal Emergency Management Administration (“FEMA”) funds, administered by the City of Seattle, Office of Emergency Management in the approximate amount of $3,719,417.40 (the “City FEMA Funds”), the proceeds of which shall be loaned to the Company from CRH;

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• Funds from the City of Seattle HomeWise Weatherization Program in the approximate amount of $292,000 (the “Homewise Funds”), the proceeds of which shall be loaned to the Company from CRH; and

• Permanent financing from a to-be-determined lender (the “Permanent Lender”) in the approximate principal amount of $[1,596,130] and not to exceed [$3,000,000] (the “Permanent Loan”), on terms deemed reasonable by any one Authorized Representative, and other public and/or private sources, as may be deemed reasonably necessary or advisable for the purpose of refinancing the Existing Debt, as applicable, and in furtherance of the Rehabilitation of the Project.

WHEREAS on behalf of the Company, CRH has advanced funds for predevelopment costs for the Rehabilitation of the Project, which funds shall be reimbursed to CRH upon the closing of the financing;

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

RESOLUTIONS

2. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take such steps as may be reasonably necessary or advisable to convey the Project to the Company, including the execution and delivery of documents, such documents including, but not limited to, a conveyance agreement, bargain and sale deed, bill of sale, assignment of contracts and intangibles, assignment of leases and rents, and any other such as documents as may be reasonably necessary or advisable.

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6. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be reasonably required or advisable to obtain the City FEMA Funds and the HomeWise Funds and to make the proceeds of the City FEMA Funds and the HomeWise Funds available to the Company through one or more sponsor loans, including but not limited to negotiating, executing and delivering any documents, such documents including but not limited to, any contracts, regulatory agreements, notes, deeds of trust, or other such documents as reasonably necessary to effectuate the foregoing.

8. FURTHER RESOLVED that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to negotiate, execute and deliver all such documents as may be reasonably required or advisable to refinance, modify and/or release the Existing Debt, on terms reasonably acceptable to any one Authorized Representative, such documents including, but not limited to, modification agreements, reaffirmation agreements and/or amendments related thereto.

9. FURTHER RESOLVED, that CRH is authorized, empowered and directed to act as guarantor for any of the Project Financing on terms reasonably acceptable to any one Authorized Representative.

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13. 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.

Name: Title:

Shalimar Gonzales Chair

Drew Porter Vice Chair

Derrick Belgarde Treasurer

Frank Alvarado Vice Chair

Jill Cronauer Secretary

Christopher Persons Chief Executive Officer

16. All acts taken by CRH prior to the date hereof and in furtherance of the foregoing are hereby ratified and affirmed.

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CERTIFICATE

Dated ______, 2020 By: ______

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SECTION 5: 5 Resolution 2020-22:

John Carney Rehabilitation SECTION SECTION

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Community Roots Housing PDA Board 2020-22

Overview: John Carney Apartments – CHP1 Omnibus Project Financing Resolution

Organizational requirements of resolution: None

Financial cost of the resolution: None Pros: This is necessary steps in the financing of the John Carney Apartments rehabilitation – CHP1 Project. Cons: None

Author of Resolution Overview: Ufilya Davis/Jeremy Wilkening

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RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF COMMUNITY ROOTS HOUSING, A WASHINGTON PUBLIC CORPORATION (John Carney Rehabilitation)

RESOLUTION 2020-22

WHEREAS CH Development Association, a Washington nonprofit corporation (“CHDA”), was organized to support and carry out the purposes of CRH;

WHEREAS CRH is the current owner of a 27-unit affordable multi-family housing development known as the John Carney Apartments located on real property at 2911 1st Avenue in Seattle, King County, Washington (the “Project”);

WHEREAS CRH desires to participate in the renovation and rehabilitation of the Project (the “Rehabilitation”);

WHEREAS CRH and CHDA desire to form John Carney Apartments LLC, a Washington limited liability company (the “Company”), of which CRH will serve as the manager and CHDA will serve as the member, for the purpose of acquiring, rehabilitating and owning the Project;

WHEREAS, CRH and CHDA desire to cause the Company to accept conveyance of the Project from CRH in furtherance of the Rehabilitation;

WHEREAS CRH and CHDA, may cause the Company to accept conveyance of the Project subject to the existing debt secured by the Project (the “Existing Debt”) or may retire the Existing Debt, as any one Authorized Representative (defined below) deems reasonably necessary or advisable;

WHEREAS seven units (the “HAP Units”) in the Project are subject to a Section 8 Housing Assistance Payments Program pursuant to a Housing Assistance Payment Contract (the “HAP Contract”) previously entered into by CRH and the U.S. Department of Housing and Urban Development (“HUD”);

WHEREAS upon conveyance of the Property to the Company, CRH, in its individual corporate capacity and as manager of the Company on behalf of the Company, intends to transfer

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CRH’s ownership of the HAP Contract (the “HAP Contract Transfer”) and all of CRH’s rights and obligations as owner of the HAP Units thereunder (the “HAP Assignment”) and to cause the Company to accept the HAP Contract Transfer and the HAP Assignment, pursuant to the rules and requirements of HUD which, among other things, requires application to HUD for approval of the HAP Contract Transfer and HAP Assignment;

WHEREAS on behalf of the Company, CRH and CHDA, desire to obtain new financing from the City of Seattle, Office of Housing (the “City”), in the approximate principal amount of $[1,954,679] and not to exceed $[2,600,000] (the “City Loan”) and permanent financing in the approximate principal amount of $[1,101,766] and not to exceed [$2,500,000] (the “Permanent Loan”) from a to-be-determined lender (the “Permanent Lender”), on terms deemed reasonable by any one Authorized Representative, and other public and/or private sources, as may be deemed reasonably necessary or advisable for the purpose of refinancing the Existing Debt, as applicable, and in furtherance of the Rehabilitation of the Project (collectively, the “Project Financing”);

WHEREAS, CRH and/or CHDA may be asked to act as guarantor for any of the Project Financing, and CRH has found it to be in the best interests of CRH, the Company and the Project to act as guarantor for any of the Project Financing, as applicable, in furtherance of the foregoing;

WHEREAS on behalf of the Company, CRH has advanced funds for predevelopment costs for the Rehabilitation of the Project, which funds shall be reimbursed to CRH upon the closing of the financing;

WHEREAS, the Board of CRH deems it to be in the best interest of CRH to take all actions reasonably necessary or advisable to (i) serve as the manager of the Company; (ii) convey the Project to the Company; (iii) cause the Company to own the Project and assume the Existing Debt, as deemed reasonably necessary or advisable by any one Authorized Representative; (iv) effectuate the HAP Contract Transfer and HAP Assignment; (v) close on the Project Financing, as applicable; (vi) refinance the Existing Debt currently secured by the Property, as applicable; (vii) serve as guarantor for any of the Project Financing, as applicable; and (viii) conduct predevelopment work in furtherance of the Rehabilitation of the Project.

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

RESOLUTIONS

2. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take such steps as may be

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reasonably necessary or advisable to convey the Project to the Company, including the execution and delivery of documents, such documents including, but not limited to, a conveyance agreement, bargain and sale deed, bill of sale, assignment of contracts and intangibles, assignment of leases and rents, and any other such as documents as may be reasonably necessary or advisable.

5. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized empowered and directed to take such steps as may be reasonably necessary or advisable to assign, as current owner, and cause the Company to assume, ownership of the HAP Units and effectuate the HAP Contract Transfer, including, but not limited to the preparation, execution, and submission of documents to HUD in connection with the HAP Contract Transfer and HAP Assignment, such documents including, but not limited to (i) a Previous Participation Certification (HUD- 2530); (ii) an Assignment and Assumption of HAP Contract; (iii) any documents required by HUD in connection with the management of the Project; and (iv) any other documents required by HUD in connection with the HAP Contract Transfer, HAP Assignment, and receipt of HUD’s approval thereof.

6. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be reasonably required or advisable to close on the City Loan, including but not limited to negotiating, executing and delivering any documents, including but not limited to, a Loan Agreement; Promissory Note; Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing; Regulatory Agreement; and environmental indemnity agreement.

7. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be reasonably required or advisable to close the Permanent Loan, including but not limited to negotiating, executing and delivering any documents, such documents including but not limited to, a loan agreement, promissory note, deeds of trust, security agreements, indemnities and guaranties, and any and all other such documents as may be reasonably necessary or advisable to effectuate the foregoing.

CRH Resolution – John Carney Rehabilitation 3 Page 36 of 102

8. FURTHER RESOLVED, that CRH in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as may be required or advisable to obtain other financing from public and/or private sources, on terms deemed reasonable by any one Authorized Representative (defined below), including, but not limited to, negotiating, executing and delivering any documents necessary or advisable to effectuate the foregoing.

9. FURTHER RESOLVED that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to negotiate, execute and deliver all such documents as may be reasonably required or advisable to refinance, modify and/or release the Existing Debt, on terms reasonably acceptable to any one Authorized Representative, such documents including, but not limited to, modification agreements, reaffirmation agreements and/or amendments related thereto.

10. FURTHER RESOLVED, that CRH is authorized, empowered and directed to act as guarantor for any of the Project Financing on terms reasonably acceptable to any one Authorized Representative.

11. FURTHER RESOLVED, that CRH is authorized, empowered and directed to advance funds to be used for predevelopment costs of the Rehabilitation of the Project, which funds shall be reimbursed upon the closing of the financing for the Project.

12. FURTHER RESOLVED, that CRH, in its individual corporate capacity and as manager of the Company, is authorized, empowered and directed to take any such steps as any one Authorized Representative deems reasonably required or advisable to undertake predevelopment work in furtherance of the Rehabilitation of the Project, including but not limited to, the negotiation, execution and delivery of documents, such documents, including, but not limited to, architect’s contracts, construction contracts, geotechnical services agreements, engineering contracts, environmental reports and other agreements with third-party service providers.

13. FURTHER RESOLVED, that CRH, in its individual corporate capacity and in its capacity as manager of the Company, is authorized, empowered and directed to undertake such further acts and to execute and deliver such other documents in its individual corporate capacity, and as the manager of the Company, as may be deemed reasonably necessary or proper in order to carry into effect any of the provisions of these Resolutions.

14. 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.

CRH Resolution – John Carney Rehabilitation 4 Page 37 of 102

15. FURTHER RESOLVED that any and all documents hereby authorized to be executed on behalf of CRH are authorized to be executed or taken by any one of the following individuals or their duly appointed successors (each an “Authorized Representative”):

Name: Title:

Shalimar Gonzales Chair

Drew Porter Vice Chair

Derrick Belgarde Treasurer

Frank Alvarado Vice Chair

Jill Cronauer Secretary

Christopher Persons Chief Executive Officer

16. Any one Authorized Representative is authorized, empowered and directed to take such further action on behalf of CRH, as such Authorized Representative may deem necessary to effectuate the foregoing; and

17. All acts taken by CRH prior to the date hereof and in furtherance of the foregoing are hereby ratified and affirmed.

CRH Resolution – John Carney Rehabilitation 5 Page 38 of 102

CERTIFICATE

Dated ______, 2020 By: ______

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Page 40 of 102

SECTION 6: 6 Resolution 2020-23:

Heartwood (U14) HPN SECTION SECTION Predevelopment Loan

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Page 42 of 102

CHH Board Resolution 2020-23

Overview: U14 Predevelopment Loan - Collateral

Purpose: To provide a single source of funding for U14 with the HPN note CRH needs to pledge collateral. This resolution will authorize the use of the Helen V partnership interest as collateral.

Type of Resolution/Motion: o Is this a formal resolution? ☒ Yes ☐ No o Are we requesting a motion from the floor? ☐ Ys ☒ No o Has this resolution been presented to a Board Committee? ☒ Yes ☐ No If so, which committee or committees? PDC

General Description and Purpose: The HPN loan will be used to consolidate the predevelopment funds used and to be used into a single loan for U14. As part of this, CRH must pledge collateral and to align the collateral with the site the partnership interest will be pledged.

Organizational requirements of resolution: As collateral CRH will pledge partnership interest in Helen V.

Financial cost of the resolution: The interest rate is currently 5.75% which is comparable to other predevelopment sources. The loan fee is 1% and interest only is paid monthly.

Pros: Increases our predevelopment financing sources and lessens need to draw on CRH operating cash. Avoids interruption in predevelopment work on U14. Cons: Requirement for collateral of partnership interest.

Further Board Action or Reporting: o Is further action required from the Board or a Board Committee? ☐ Yes ☒ No o Is further reporting required to the Board or a Board Committee? ☒ Yes ☐ No If yes, please describe: Ongoing reporting of project progress to PDC.

Author of Resolution Overview: Jeremy Wilkening

Page 43 of 102

RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF COMMUNITY ROOTS HOUSING (U14 Predevelopment Loan)

RESOLUTION 2020-23

WHEREAS Community Roots Housing, formerly known as Capitol Hill Housing Improvement Program, a Washington public corporation (“CRH”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755 and Seattle Municipal Code Ch. 3.110;

Whereas CH Development Association, a Washington nonprofit corporation (“CHDA”), was organized to support and carry out the purposes of CRH;

Whereas CRH is the managing member and CHDA is the member of Helen V Apartments LLC, a Washington limited liability company (“Helen V”), located in Seattle, Washington;

Whereas, pursuant to Resolution 2020-09 and 2020-16 (the “Prior Resolutions”) CRH desires to participate in the development of an affordable housing project commonly known as “U14” (the “Project”);

Whereas, pursuant to the Prior Resolutions, CHDA and CRH have caused the formation of Union Fourteen GP LLC, a Washington limited liability company (the “General Partner”), of which CRH is the manager and CHDA is the sole member, to serve as the general partner of Union Fourteen LLLP, a Washington limited liability limited partnership (the “Partnership”);

Whereas, pursuant to the Prior Resolutions, CRH is the initial limited partner of the Partnership and the Partnership will construct, own and operate the Project;

Whereas CRH, as manager of the General Partner and as initial limited partner of the Partnership, has applied for predevelopment financing for the Project;

Whereas, pursuant to a letter of commitment dated July 31, 2020 (the “HPF LOC”), Housing Partnership Fund (“HPF”) has agreed to make a predevelopment loan of approximately $2,000,000 to the Partnership in support of the Project (the “HPF Predevelopment Loan”);

Whereas CRH, as the initial limited partner of the Partnership on behalf of the Partnership, desires to consent to the Partnership obtaining the HPF Predevelopment Loan;

Whereas HPF will require CHDA and CRH to execute a Pledge and Security Agreement (the “Pledge”), pledging CHDA and CRH’s respective membership interests in Helen V as collateral for the HPF Predevelopment Loan;

CRH Resolution - U14 Page 44 of 102

Whereas CRH, in its capacity as member of Helen V, manager of the General Partner and initial limited partner of the Partnership, desires to pledge its interests in Helen V to secure the HPF Predevelopment Loan in furtherance of the Project;

Whereas HPF will require that the Operating Agreement of Helen V (the “Helen V Operating Agreement”) be amended to certificate the Pledge, pursuant to Article 8 of the Washington Uniform Commercial Code (the “UCC”) as a condition to closing the HPF Predevelopment Loan;

Whereas CRH, in its individual capacity, as manager of the General Partner, and as initial limited partner of the Partnership, has determined that it will materially benefit from the development of the Project, the closing of the HPF Predevelopment Loan and to serve as guarantor of the Project; and

Whereas the Board of CRH deems it to be in the best interests of CRH and the Project to take all actions reasonably necessary to (i) ratify and affirm any and all actions taken prior to the date of this resolution in connection with the foregoing; (ii) close on the HPF Predevelopment Loan; and (iii) serve as guarantor for any of the financing for the Project.

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

RESOLUTIONS

1. RESOLVED that all action taken by CRH, in its own corporate capacity, in connection with the formation of the General Partner and the Partnership are hereby ratified and affirmed.

2. FURTHER RESOLVED that CRH, in its own corporate capacity, as manager of the General Partner and as initial limited partner of the Partnership, is authorized, empowered, and directed to enter into, execute, and deliver any and all such documents as may be required or advisable to close the HPF Predevelopment Loan, including but not limited to the Pledge, the Loan Agreement, and Promissory Note.

3. FURTHER RESOLVED that CRH, in its own corporate capacity and in its capacity as managing member of Helen V, is authorized, empowered, and directed to take any all such actions necessary to close and obtain the HPF Predevelopment Loan, including but not limited to, amending the Helen V Operating Agreement under Article 8 of the UCC.

4. FURTHER RESOLVED that CRH, in its own corporate capacity, is authorized, empowered and directed to serve as guarantor for any of the financing of the Project, on terms reasonably acceptable to any one of the Authorized Representative (defined below), and to enter into, execute, deliver and perform its obligations under, the Guaranty Agreement.

5. FURTHER RESOLVED that any and all documents hereby authorized to be executed on behalf of CRH are authorized to be executed or taken by any one of the following individuals or their duly appointed successors (the “Authorized Representatives”):

CRH Resolution - U14 Page 45 of 102

Name: Title:

Shalimar Gonzales Chair

Drew Porter Vice Chair

Frank Alvarado Vice Chair

Derrick Belgarde Treasurer

Jill Cronauer Secretary

Christopher Persons Chief Executive Officer

6. FURTHER RESOLVED that any one Authorized Representative, acting alone, is authorized, empowered and directed to take such further action on behalf of CRH, as the Authorized Representative may deem necessary to effectuate the foregoing.

7. All acts taken by CRH prior to the date hereof and in furtherance of the foregoing are hereby ratified and affirmed.

[CERTIFICATE APPEARS ON THE FOLLOWING PAGE]

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OFFICER CERTIFICATE

I, ______, certify that I am the ______of CRH and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of CRH held on ______, 2020, in accordance with the Articles of Incorporation and Bylaws of the CRH upon proper notice and at which time a quorum was present.

Dated ______2020 By: ______

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Page 48 of 102

SECTION 7: 7 September 2020

Finance Report, SECTION SECTION July Statements and

Asset Management Report

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Page 50 of 102 SEPTEMBER 2020 FINANCE & ASSET MANAGEMENT BOARD REPORT AND MINUTES

Finance & Asset Management Committee Members : Drew Porter, Frank Alvarado, Chasten Fulbright, Derrick Belgarde , Michelle Purnell-Hepburn

Staff Liaisons to the Board : Brad Lange, Scott Matthews, Jill Fleming , Muhammadou Drammeh (BOLD indicates those members in attendance)

Date, time and location of meeting : September 1, 2020 – 4:00 PM - Zoom meeting

Financial Position Summary:

During July unrestricted cash decreased $454K. The balance sheet shows a decrease of only $204K which is a result of a $250K transfer from the Opportunity Fund used for operations. Two of the larger items causing this decrease are approximately $172K from development related spending net of construction draws and $144K COVID-19 rent resilience disbursements that were received in April.

The unaudited operating statement through July 31, 2020 shows an operating deficit of $771K as compared to a budgeted deficit of $539K. The negative variance of $232K is due to multiple items. Developer fees represent a negative variance of $450K. The first developer fee installment of $250K for CHP1 was budgeted in June but is now expected to be received in late 2020. Other deferred developer fees are also expected to be affected due to COVID. This negative variance is partially offset by a favorable payroll variance of $165K. Multiple new positions were budgeted for but have not been filled due to COVID-19. Maintenance also has a favorable variance of $115K due to COVID. We have only been performing emergency maintenance work and unit turns but expect regular repairs to begin again in September.

Financial Review: The committee reviewed the monthly financial reports and the monthly financial ratio analysis. Comments and Analysis regarding the July Balance Sheet and Operating Statement are included as annotations in the attached statements.

The committee reviewed the Property Management dashboard report

Vacancy loss: The monthly economic portfolio vacancy rate was 5.4% with a rolling 12-month economic vacancy percentage of 4.3%.

Department and Project Updates: Staff provided brief updates on the following:

 Analyzing daily cash collection for COVID-19 impact  Monthly cashflow projection  $1.5M loan status from the City of Seattle  2021 budget process  Banner line of credit resolution approved by FAM to be in the board consent agenda.  Disposition of surplus personal property  HPN predevelopment loan update  Jill retirement and recruiting for CFO  In August CHR completed the transfer of the 410 Apartments to Habitat for Humanity. They plan on using the site for development of an affordable homeownership project.

Page 51 of 102 Community Roots Housing Blended Balance Sheet

7.31.2020 6.30.2020 Change from 12.31.2019 Internal 12.31.2018 Internal unaudited unaudited prior month Presentation Presentation

Assets Unrestricted Cash 1,581,587 1,785,877 (204,290) 1 2,639,225 2,295,438 Accounts Receivable 1,275,766 1,023,384 Tenant & Commercial AR 622,318 597,976 24,342 GAAP Rent Receivable 122,840 122,840 0 Other Receivable (5,123) 13,316 (18,440) Prepaids & Other Current Assets 528,653 563,866 (35,213) 397,343 362,070 Contributions/Grants Receivable 3,341 3,341 0 140,372 289,290 Due from Affiliates 10,636,813 10,637,431 (618) 11,257,394 7,077,021 Board Designated Operating Reserve 1,000,000 1,000,000 0 1,000,000 1,000,000 Board Designated Opportunity Reserve 533,436 782,971 (249,535) 2 773,568 244,931 Restricted Cash 5,448,642 5,374,329 74,313 3 5,484,020 6,937,674 Notes Receivable from Affiliates 16,575,465 16,575,465 0 29,372,905 15,313,542 Land 24,610,933 24,610,933 0 18,739,965 21,944,996 Buildings, Improvements & Equipment 81,568,854 80,875,234 693,620 4 79,517,704 80,233,250 Accumulated Depreciation (45,668,090) (45,482,810) (185,280) 5 (44,504,705) (45,192,676) Lease Receivable 664,587 664,587 0 689,587 792,137 Investment in LPs/LLCs 2,514,514 2,514,514 0 4,297,648 1,521,867 Other Assets (20,013) (17,106) (2,907) 338 366 Total Assets 100,718,757 100,622,764 95,992 111,081,130 93,843,290

Liabilities Notes Payable 66,482,605 66,472,706 9,899 59,441,297 62,803,914 Accrued Interest Payable 4,318,255 4,318,255 0 4,318,255 4,594,746 Accounts Payable & Accrued Liabilities 5,904,608 5,764,662 139,946 6 6,184,645 4,615,495 Tenant Security Deposit Liability 458,358 458,205 153 530,177 576,781 Total Liabilities 77,163,826 77,013,828 149,998 70,474,374 72,590,936

Net Position 23,554,931 23,608,936 (54,006) 40,606,756 21,252,354

Total Liabilities and Net Assets 100,718,757 100,622,764 95,992 111,081,130 93,843,290

Significant balance sheet changes from prior month 1) The following significant cash transactions decreased cash during the period: -Approx $172K development related transactions net of construction draws. -$144K COVID-19 rent resilience disbursements that were received in April. -$38K COVID-19 stipend payments -$44K payment to residual receipts for John Carney -$38K Q2 payroll tax payments

The following significant cash transactions increased cash during the period: -$250K Opportunity Fund for operations 2) $250K withdrawal from the Opportunity Fund for operations. Will be replenished from future cash flows. 3) $44k residual receipts contribution from John Carney 4) Increase due to multiple projects in CIP/Predevelopment: $340K U14, $131K Eldridge, $109K Youthcare; $59K White Center 5) Routine monthly deprecation expense 6) Routine fluctuation in accrued payable balances based on timing of payroll and accounts payable check run relative to month-end as well as fluctuations in intercompany "Due to CHH" balance that results from the recording of additional predevelopment expenses for those projects still included as blended component units.

Page 52 of 102 Community Roots Housing Statement of Revenues and Expenditures - Unaudited From 1/1/2020 Through 07/31/2020

Year to Date Year to Date Year to Date Budget Budget Actual Budget Variance Variance Pct Total Budget Remaining Revenue Tenant Rent Residential tenant revenue 6,186,989 6,210,204 (23,215) -0.37% 10,692,661 4,505,672 Commercial rent revenue, net 477,825 466,625 11,200 2.40% 833,155 355,330 Triple net revenue 76,375 94,712 (18,337) 1 -19.36% 127,635 51,260 Parking, laundry and other 110,624 100,885 9,739 9.65% 171,377 60,753 Res vacancy and concessions (343,733) (310,356) (33,377) 2 10.75% (452,973) (109,240) Total Tenant Rent 6,508,080 6,562,070 (53,990) -0.82% 11,371,855 4,863,775 Other Operating Revenue Accounting & Compliance fees 405,028 420,294 (15,266) -3.63% 728,683 323,655 Developer Fees 520,717 971,065 (450,348) 3 -46.38% 1,680,329 1,159,612 Partnership Management Fees 246,810 152,906 93,904 4 61.41% 272,022 25,212 Property Management Fees 1,002,142 1,022,692 (20,550) -2.01% 1,753,187 751,045 Total Other Operating Revenue 2,174,697 2,566,957 (392,260) -15.28% 4,434,221 2,259,524 Other Revenue Grants & Donations 564,771 583,567 (18,796) -3.22% 1,031,500 466,729 Interest Income 9,882 17,500 (7,618) -43.53% 30,000 20,118 Other Income (non-operating) 6,382 0 6,382 #DIV/0! 0 (6,382) Total Other Revenue 581,035 601,067 (20,032) 77.12% 1,061,500 480,465 Total Revenue 9,263,812 9,730,094 (466,282) -4.79% 16,867,576 7,603,764 Expenses Accounting, Audit & Legal 372,046 330,121 (41,925) 5 -12.70% 504,732 132,686 Administration 297,687 309,633 11,946 3.86% 528,295 230,608 Bad Debt 32,710 70,148 37,438 6 53.37% 89,218 56,508 Board Expense 270 8,600 8,330 96.86% 14,100 13,830 CHH Occupancy Expense 200,851 217,845 16,994 7.80% 386,670 185,819 Compliance, Taxes & License 147,912 124,596 (23,316) 7 -18.71% 218,663 70,751 Consulting 135,411 130,435 (4,976) -3.81% 204,776 69,365 Debt Service 1,108,618 1,179,427 70,809 6.00% 1,939,696 831,078 Insurance 255,213 209,081 (46,132) 8 -22.06% 360,739 105,526 Leasing/Compliance Expense 83,045 77,170 (5,875) -7.61% 192,292 109,247 Miscellaneous Financial Expense 3,782 0 (3,782) #DIV/0! 5,000 1,218 Other Operating Expense 3,170 957 (2,213) -231.24% 2,457 (713) Partnership Mgmt Fee Expense 222,091 85,191 (136,900) 9 -160.70% 156,042 (66,049) Payroll, Taxes and Benefits 4,164,899 4,329,468 164,569 10 3.80% 7,537,144 3,372,245 Preventive Maintenance 225,495 258,901 33,406 11 12.90% 419,406 193,911 Property Mgmt Fee Expense 628,042 629,774 1,732 0.28% 1,079,613 451,571 Repair and Maintenance 870,329 951,396 81,067 11 8.52% 1,335,548 465,219 Resident activities 33,665 45,374 11,709 25.81% 82,459 48,794 Technology 113,756 145,793 32,037 12 21.97% 246,363 132,607 Utilities 806,866 834,966 28,100 3.37% 1,439,217 632,351 Total Expenses 9,705,858 9,938,876 233,018 0 16,742,430 7,036,572 Operating Surplus (Deficit) B4 Reserves (442,046)0 (208,782)0 (233,264) 111.73% 125,1460 Reserve Contributions Replacement Reserve (281,780) (283,496) 1,716 -0.61% (481,760) (199,980) Operating Reserve (26,716) (26,713) (3) 0.01% (45,080) (18,364) Other Reserve (20,183) (20,183) 0 0.00% (34,600) (14,417) Total Reserve Contributions (328,679) (330,392) 1,713 -0.52% (561,440) (232,761) Operating Surplus (Deficit) (770,725)0 (539,174)0 (231,551) 42.95% (436,294)0 Other Income (non-operating)0 0 0 0.00%0 Income/Loss (770,725)0 (539,174)0 (231,551) 42.95% (436,294)0

Variance Discussion (Greater than $15K and 10%)

1) Multiple tenants at LBB Commercial were budgeted but billings have yet to begin. Gilman Court Q2 bill budgeted in July but actuals will be in Aug.

Page 53 of 102 2) Concessions due to late certifications: $9.2K Helen V; $5.7K Holden Vista; $4.3K Four Twelve 3) First developer fee installment of $250K for CHP1 is expected to be received in late 2020. Deferred developer fees will also be significantly affected due to expected drop in cash collections from COVID-19. 4) Prior year fees paid in 2020. $63K Helen V incentive mgmt fee; $20K Helen V partnership mgmt fee; $50K Gilman Court partnership mgmt fee. $25K Harrison land lease. Only $30K budgeted for these prior year payments. They are offset by expenses in comment #9. 5) $20K Elizabeth James settlement agreement with Home Depot. 6) Multiple buildings with budgeted amounts but no write offs. Write off analysis in process. 7) $11K Lake City real estate tax not budgeted 8) $31.5K additional umbrella and excess liability insurance in May. Due mostly to increase in claims, premiums for excess liability and D&O insurance. 9) Prior year fees paid in 2020. $63K Helen V incentive mgmt fee; $20K Helen V partnership mgmt fee; $50K Gilman Court partnership mgmt fee. $25K Harrison land lease. These expenses were not budgeted. They are offset by revenue in comment #4. 10) Favorable variance due to not hiring new positions as a result of COVID-19. 11) Favorable variance as we are only performing emergency maintenance and unit turns due to COVID-19. Regular maintenance is expected to begin again in August or September. 12) The timing of when/if SharePoint implementation is happening is not yet determined.

Date: 8/28/2020, 7:35 AM Page 54 of 102 Page: 2 CRH CASH IN BANK FOR THE MONTH ENDING: July 2020

Bank CHH Blended Component Unit Type Balance Chase Larned Reserves 153,312 Chase 412 Reserves 129,034 Total Chase 282,346 KeyBank Capitol Hill Housing Security Deposit 241,560 KeyBank Capitol Hill Housing - SoundFamilies Restricted Savings 10,594 KeyBank Hazel Plaza Reserves 253,728 KeyBank Hazel Plaza Security Deposit 4,184 KeyBank Larned Security Deposit 20,321 KeyBank Byron Wetmore Reserves 65,849 KeyBank Byron Wetmore Security Deposit 8,892 Key Bank 412 Security Deposit 2,811 KeyBank Holden Vista Reserves 68,343 KeyBank Holden Vista Security Deposit 3,680 KeyBank Mary Ruth Manor Reserves 295,192 KeyBank Mary Ruth Manor Security Deposit 5,898 KeyBank EJSH Security Deposit 11,117 KeyBank Fleming Apts LP Security Deposit 20,660 KeyBank Gilman Court LP Reserves 120,349 KeyBank Gilman Court LP Security Deposit 19,664 KeyBank Villa Apts LP Reserves 245,937 KeyBank Villa Apts LP Security Deposit 40,826 KeyBank Harrison Security Deposit 17,347 KeyBank Oleta Security Deposit 20,979 KeyBank Helen V Apts LLC Reserves 341,520 KeyBank Helen V Apts LLC Security Deposit 8,016 Key Bank Union James Security Deposit 7,023 Key Bank Union James Reserves 101,755 Key Bank Lake City Security Deposit 6,045 Total KeyBank 1,942,289

Banner Berneva Reserves 17,346 Banner Seneca Reserves 155,050 Banner Seneca Security Deposit 18,105 Total Banner 190,502 LGIP Capitol Hill Housing Reserves 2,541,986 Total LGIP 2,541,986

Walker Dunlop EJSH Escrow 11,333 Walker Dunlop EJSH Reserves 139,688 Total Oppenheimer 151,021 Chase Harrison Reserves 182,402 Chase Oleta Reserves 47,877 Total Chase 230,280 BofA Fleming Apts LP Reserves 107,384 Total BofA 107,384 Heritage Union & 24th Commercial Security Deposit 2,836 Total Heritage 2,836 Total Restricted - CHH Blended Components 5,448,642 LGIP Capitol Hill Housing Board Designated Reserves 1,533,436 Total Designated 1,533,436

Heritage Union & 24th Construction Commercial Construction - Heritage Union & 24th Construction Commercial Operating Checking (14,196) Total Heritage (14,196)

UnionBank Capitol Hill Housing EQII 4,736 Total Union Bank 4,736 KeyBank Capitol Hill Housing EQII 418 Total KeyBank 418 KeyBank Capitol Hill Housing Gen Building Reserve 31,823 Total Gen Building Reserve 31,823 KeyBank Capitol Hill Housing HPN 238 Total HPN 238

KeyBank Capitol Hill Housing Payroll - KeyBank Capitol Hill Housing Operating Checking 181,058 KeyBank Capitol Hill Dev. Assoc Operating Checking 2,765 KeyBank Capitol Hill Real Estate Mgmt Services Operating Checking 7,381 KeyBank Cash-Restricted Operating Checking 524,704 KeyBank Hazel Plaza Operating Checking 92,154 KeyBank Larned Operating Checking 63,413 KeyBank Byron Wetmore Operating Checking 28,402 KeyBank 412 Operating Checking 43,609 KeyBank Holden Vista Operating Checking 12,939 KeyBank Mary Ruth Manor Operating Checking 57,300 KeyBank EJSH Operating Checking 35,556 KeyBank Fleming Apts LP Operating Checking 44,574 KeyBank Gilman Court LP Operating Checking 73,201 KeyBank Villa Apts LP Operating Checking 57,995 KeyBank Harrison Operating Checking 77,101 KeyBank Oleta Operating Checking 35,684 KeyBank Helen V Apts LLC Operating Checking 76,229 KeyBank 12th Ave Arts Development Operating Checking - KeyBank Union James Operating Checking 22,358 KeyBank Lake City Operating Checking 44,636 KeyBank Africa Town (Mid-town) Operating Checking 1,232

Total KeyBank 1,482,290

Cash Various Petty Cash - CHHIP 100 Total Petty Cash 100

Banner Berneva Operating Checking 6,977 Banner Seneca Operating Checking 69,201 KeyBank Union & 24th Construction - Total Banner 76,177

8/28/2020 9:01 AM M:\FinancePage & Accounting\@Secured\Board 55 reports\2020\7. ofJuly\ JULY 20102 Cash report.xlsx JUL20 Page 1 of 2 CRH CASH IN BANK FOR THE MONTH ENDING: July 2020

Total Unrestricted - CHH Blended Components 1,581,587 Total All Cash - CHH Blended Components 8,563,665

Bank Discrete Component Unit Type Balance Chase Woodland Park Ave LLC Reserves 154,901 Chase AAA Security Deposit 6,030 Chase AAA Reserves 227,815 Chase AAA Escrow 18,777 Total Chase 407,523 KeyBank Broadway & Pine Reserves 262,342 KeyBank Broadway & Pine Security Deposit 22,647 KeyBank El Nor LP Security Deposit 8,319 KeyBank 18th Ave Apartments Security Deposit 1,202 KeyBank Holiday Apts Security Deposit 19,998 KeyBank Jefferson & 12th Reserves 332,668 KeyBank Jefferson & 12th Security Deposit 31,478 KeyBank Pantages Apts LLC Security Deposit 26,424 KeyBank Ponderosa Security Deposit 2,490 KeyBank Silvian Security Deposit 6,531 KeyBank SOPI / Unity Village Reserves 218,696 KeyBank SOPI / Unity Village Security Deposit 14,100 KeyBank Woodland Park Ave LLC Security Deposit 10,163 KeyBank 12th Avenue Arts Housing Security Deposit 65,089 KeyBank 12th Avenue Arts Associates LLC Security Deposit 62,971 KeyBank 12th Avenue Arts Housing Reserves 755,053 12th Avenue Arts Associates LLC Reserves 31,220 KeyBank CH TOD Station House Security Deposit 12,235 KeyBank CH TOD Station House Construction 166,361 Jazz House Construction 4,007 Total KeyBank 2,053,995 UnionBank Holiday Reserves 193,504 Total UnionBank 193,504 US Bank Pantages Apts LLC Reserves 441,919 US Bank Silvian Reserves 594,714 Total USBank 1,036,633

Heritage Union & 24th Construction Residential Construction - Heritage Union & 24th Residential Reserves 235,200 Heritage Union & 24th Residential Security Deposit 35,634 Total Heritage 270,835

Wells Fargo Bonanza Construction 8,638 Wells Fargo Bonanza Construction CHH Loan 3,395,145 El Nor Reserves 33,002 18th Ave Reserves 5,403 Total Wells Fargo 3,403,783

Bellwether Union & 24th Escrow 58,128 Total Bellwether 58,128

Total Restricted - Discrete Components 7,424,401

Chase AAA Operating Checking 119,935 Total Chase 119,935

KeyBank El Nor LP Operating Checking 504,946 KeyBank 18th Ave Apartments Operating Checking 60,892 KeyBank Pantages Apts LLC Operating Checking 65,261 KeyBank Silvian Operating Checking 71,238 KeyBank Broadway & Pine (BX) Operating Checking 39,402 KeyBank Woodland Park Ave LLC Operating Checking 27,859 KeyBank Holiday Apts Operating Checking 55,430 KeyBank SOPI / Unity Village Operating Checking 43,831 KeyBank Jefferson & 12th Operating Checking 66,586 KeyBank Ponderosa Operating Checking 240,533 KeyBank Twelfth Avenue Arts Res Operating Checking 145,775 KeyBank 12AA Master Tenant LLC Operating Checking 3,563 KeyBank 12th Avenue Arts Associates LLC 12AA Commercial Operating (Debt 392,016 Service) KeyBank CH TOD Station House Operating Checking 89,989 Total KeyBank 1,807,320

Heritage Union & 24th Residential Operating Checking 211,210 Total Heritage 211,210

Total Unrestricted - Discrete Components 2,138,465 Total All Cash - Discrete Components 9,562,867 Total All Cash - CHH Blended Components 8,563,665 Total All Cash 18,126,532

TOTALS BY BANK Key Bank$ 7,317,717 Chase$ 1,040,501 Banner$ 266,679 US Bank$ 1,036,633 Union Bank$ 198,240 Bank of America$ 107,384 Heritage$ 470,685 Bellwether$ 58,128 Wells Fargo$ 3,403,783 LGIP$ 4,075,422 Other and Petty$ 151,359 TOTAL CASH $ 18,126,532

8/28/2020 9:01 AM M:\FinancePage & Accounting\@Secured\Board 56 reports\2020\7. ofJuly\ JULY 20102 Cash report.xlsx JUL20 Page 2 of 2 Community Roots Housing Asset Management Dashboard Year to Date at July 31, 2020 A/R A/R Physical Vacancy Op Rev Per Unit Op Exp Per Unit Cash Flow Per Unit (1) Resident Portion Resident Portion 12-Month (at month end) YTD YTD YTD $ %(3) Rolling Avg. (4) Economic Vacancy Vacant Vacancy Total Budget Budget Budget Make Total 12 MO 2019 July 2020 Building Units % Units Actual Var % Actual Var % Actual Var % Ready Days Vacant July 2020 Rolling Vacancy Byron Wetmore 12 7,269 4% 6,213 2% 291 310% 13,911 115% 0.0% 0.0% 1.1% Elizabeth James 4 6.7% 60 6,158 0% 4,928 -9% (314) -322% 7,807 14% 114 154 6.6% 4.7% 2.9% Four Twelve 12 13,260 -8% 8,622 -7% 440 -89% 6,854 27% 100 140 24.0% 4.7% 1.0% Hazel Plaza 16 16,090 2% 5,969 3% 4,845 13% 17,215 46% 88 176 0.0% 7.3% 6.8% Joe Black Apartments 1 4.2% 24 8,223 -5% 7,319 -8% (76) -109% 7,002 24% 46 142 4.9% 9.4% 13.3% Mary Ruth Manor 2 10.0% 20 14,205 -6% 7,702 -7% 981 -61% 17,486 41% 129 111 7.7% 4.0% 2.4% Union James 2 8.3% 24 10,556 -7% 6,611 -10% 1,266 -53% 22,493 56% 347 395 8.4% 14.3% 14.6% Jacob Total 9 5.4% 168 9,572 -3% 6,295 -6% 688 -55% 92,768 38% 114 165 7.3% 6.9% 6.5% Eighteenth Avenue (5) 3 33.3% 9 8,466 -27% 4,139 38% 3,973 -1% 1,110 7% 32.0% 3.5% 0.0% El Nor (5) 45 9,719 -14% 2,676 40% 6,642 3% 2,259 3% 0.0% 0.0% 0.0% Helen V 1 2.6% 38 11,068 0% 8,347 -49% 641 -81% 12,507 20% 0 108 2.6% 5.7% 5.5% Holden Vista 1 6.3% 16 8,103 -11% 10,544 -39% (3,697) -1618% 1,317 6% 0 90 26.5% 16.0% 12.2% Holiday 30 6,569 -4% 5,182 -17% (1,171) -588% 9,669 35% 114 190 3.2% 4.7% 3.8% Park Hill 2 6.7% 30 8,497 -3% 5,898 13% 1,359 91% 20,045 52% 0 37 12.9% 3.5% 3.1% Ponderosa 1 4.3% 23 10,974 -1% 4,691 10% 6,247 13% 2,926 8% 4.3% 2.3% 0.0% Silvian 1 3.1% 32 9,066 4% 5,127 23% 1,736 1573% 6,699 16% 35 34 0.9% 1.6% 2.6% Unity Village 2 6.7% 30 5,414 -15% 5,664 5% (483) -350% 7,754 29% 91 189 12.6% 13.9% 9.4% Lynn Total 11 4.3% 253 8,777 -7% 5,604 2% 1,938 -19% 64,285 19% 85 113 7.0% 4.6% 4.5% Berneva 12 5,796 1% 6,866 -11% (1,749) -57% 82 1% 128 153 0.0% 8.5% 8.7% Brewster 35 5,623 2% 4,236 6% 947 503% 5,961 22% 22 87 0.0% 3.7% 7.8% Broadway Crossing 44 6,509 -2% 5,673 0% (137) -271% 14,531 40% 15 103 2.1% 1.8% 3.9% Haines AAA 30 9,206 4% 4,546 1% 3,038 18% 1,057 3% 0.0% 1.1% 1.9% Jefferson Housing 40 8,120 0% 4,775 7% 618 1211% 4,414 10% 15 105 0.0% 1.3% 3.0% Oleta 2 5.9% 34 5,820 -2% 4,140 2% (111) -96% 3,948 13% 20 59 7.2% 4.6% 13.6% Pantages 1 2.0% 49 6,614 7% 4,834 3% 607 972% 6,703 15% 19 90 1.8% 2.6% 3.6% Twelfth Avenue Arts 2 2.3% 88 7,484 5% 4,490 -19% 407 -50% 29,778 33% 13 80 3.1% 1.8% 1.8% Nelda Total 5 1.5% 332 7,031 3% 4,760 -2% 553 51% 66,475 21% 22 81 2.0% 2.4% 4.3% Boylston Howell 30 6,859 2% 5,523 0% 1,142 220% 10,890 39% 60 116 0.0% 1.3% 3.6% Bremer 1 2.0% 49 5,819 4% 3,971 5% 520 516% 7,642 19% 42 92 2.3% 1.6% 6.4% Centennial 2 6.7% 30 6,881 -1% 4,334 3% 100 310% 16,011 52% 16 85 3.8% 5.5% 7.5% Devonshire 2 3.2% 62 5,768 -2% 4,892 -2% (247) -835% 21,868 42% 32 97 3.2% 5.1% 4.2% Fleming 2 5.6% 36 5,799 0% 4,094 12% 96 122% 12,691 42% 12 50 5.7% 4.5% 8.0% Fremont Solstice 18 7,235 5% 4,827 6% 373 234% 3,358 19% 0.0% 0.1% 2.3% Gilman Court 25 8,280 5% 7,847 -13% 59 135% 3,674 16% 0 61 0.0% 1.1% 0.6% John Carney 1 3.7% 27 6,418 -1% 5,112 2% 409 24% 18,284 76% 9 58 9.2% 8.1% 9.4% Larned 1 3.0% 33 6,398 -2% 4,818 29% 1,192 287% 9,919 51% 38 90 4.3% 3.1% 3.3% Melrose 7 23.3% 30 4,946 -10% 4,210 1% (9) -102% 17,210 72% 36 136 25.8% 10.1% 4.0% Villa 4 6.5% 62 6,556 -6% 4,934 0% (677) -226% 23,543 51% 57 92 7.9% 5.4% 3.1% Skye Total 20 5.0% 402 6,319 -1% 4,859 4% 167 213% 145,089 43% 34 92 5.5% 4.3% 4.8% Broadway 5 8,239 1% 5,000 25% 1,594 1819% 296 5% 0.0% 0.0% 0.0% Burke Gilman Gardens 15 8,213 3% 5,992 12% 395 156% 13,014 75% 21 46 0.0% 1.3% 1.0% Fredonia 1 8.3% 12 16,517 1% 9,529 10% 3,372 56% 4,339 27% 16 77 6.7% 2.8% 0.6% Harrison at 15th 1 5.3% 19 12,670 2% 8,069 -5% 639 291% 1,318 6% 11 44 4.8% 1.9% 0.5% Liberty Bank Building 5 4.3% 115 6,543 -5% 5,654 -50% 142 -71% 121,793 109% 4.3% 4.9% 1.6% Lincoln Court 3 10.3% 29 6,004 4% 3,810 7% 40 107% 6,596 26% 19 134 6.9% 4.7% 2.9% Maxwell 4 7,186 1% 4,773 30% 1,526 372% 288 7% 0.0% 0.0% 0.0% Miller Park 1 8.3% 12 7,328 -3% 6,054 -1% (322) -1236% 11,176 86% 11 66 12.0% 3.7% 6.7% Seneca 1 3.1% 32 6,578 0% 4,760 7% 582 154% 8,238 27% 35 78 3.4% 2.1% 1.0% Squire Park Plaza 4 6.7% 60 11,582 -1% 4,886 2% 1,796 -4% 59,517 71% 21 91 7.6% 5.2% 3.8% Valencia Total 16 5.3% 303 8,422 -1% 5,546 -10% 701 23% 226,662 69% 18 110 5.4% 4.0% 2.3% Portfolio Total 61 4.2% 1458 7,720 -2% 5,274 -2% 733 -3% 595,280 38% 38 104 5.4% 4.3% 4.4% Blended Portfolio 42 5.0% 845 7,564 -1% 5,557 -1% 330 -18% 323,624 37% 44 94 6.4% 5.2% 5.4% Discrete Portfolio 19 3.1% 613 7,933 -2% 4,885 -3% 1,289 4% 271,568 39% 25 126 3.9% 3.1% 2.8%

1) After debt and reserve payments 2) Cumulative residential and subsidy accounts receivable balances divided by monthly gross potential rental revenue. Negative percentages reflect early subsidy payments. 3) Resident Portion Account Recievable % is calculated as resident A/R balance divided by total monthly gross potential income, inclusive of subsidy income. 4) Portfolio Manager averages are averages across all unit turns within portfolio and not averages across buildings 5) Vacancies at these properties have been removed due unit offline status related to "Bonanza"

Page 57 of 102 M:\Asset Management\AM - General Asset Management\Reporting\DRAFT July-2020-AM dashboard.xlsx Ratio Analysis

4,000,000 Prior Year 2 Prior Year 1 Current Year CHHIP Operating Cash 3,000,000

2,000,000

1,000,000

0 August September October November December January February March April May June July Total Receivables as a % of 65.0% 60.0% monthly GPR Self Sufficiency Ratio 55.0% 110% 50.0% 105% 45.0% 40.0% 100% 35.0% 95% 30.0% 25.0% 90% 20.0% 85% 15.0% 10.0% 80% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020

Leverage Ratio Days Operating Cash 4.00 3.75 3.50 60 3.25 3.00 50 2.75 2.50 2.25 40 2.00 1.75 30

Calculations CHHIP Operating Cash Balance: CHH main operating account balance at month end - prior 3 years Receivable as a % of GPR: Measures how effective the Organization is at collecting rent charged to tenants Calculation: Month end balance of tenant receivables accounts by site / total monthly gross potential rent Target: CHH is still working to establish benchmarks for different receivable types Self Sufficiency Ratio: Measures the Organization's ability to cover operating expenses with operating revenues Calculation: Total operating expenses / total operating revenue less developer fees (grant income = prior 12 month avg) Target: 100% = Operating revenues are sufficient to cover operating expenses Days Operating Cash: Measures the c ash on hand to cover operating expenses based on current spend rate Calculation: Month end operating cash balance / Avg expense per day (prior 3 months) Target: 2 months operating cash on hand Leverage Ratio: Measures the ratio of assets funded through debt relative to other sources (operating/grants etc) Calculation: Total liabilities at month end / end of month net position Target: 2.5 - 4: 4.0 maximum ratio

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SECTION 8: 8 Letters from Staff for

Defund the Police SECTION SECTION Discussion

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Page 60 of 102 Capitol Hill Housing transformed into Community Roots Housing during a nationwide uprising against anti-Black police brutality and deadly violence. Our name change is not a complete metamorphosis, as developing and maintaining affordable housing for all to thrive remains at the core of our work. We cannot ignore that the timing of our evolution into our new, community-centered brand occurs at this collective inflection point.

Community Roots Housing is in a state of becoming. We have made a commitment as an organization to be guided by our values with tenacity in building a more just and equitable society.

We are grateful to our leaders of Community Roots Housing for providing time off to attend early protests, strike with Black Lives Matter King County, and for recognizing Juneteenth. It is imperative we continue to leverage our relative power within the city of Seattle to center racial equity and residents in all that we do.

Thus, Community Roots Housing has a responsibility to publicly support the community demands of defunding the Seattle Police Department prior to the City Council meeting on Monday August 3rd.

At this moment in history, we are faced with an opportunity to replace a fundamentally racist, violent system of policing with structures that truly provide safety, security, and stability. Racism is a rotting, diseased tree and the housing and homelessness crisis is one of its poisonous branches. We know that communities are made safer with resources and investment, not by police. We know that low-income Black and Brown people disproportionately face police violence and punishment for survival crimes that occur due to lack of economic opportunity. We know that for over 400 years Black communities have been systemically disenfranchised and divested from, and this is most evident in the housing sector.

The affordable housing sector was born out of racist segregationist practices. The very existence of our organization relies on structural racism to create the conditions for housing and economic inequities to thrive. If our country had truly invested in equal opportunity for low-income people, and particularly low-income Brown and Black people, we would not be working at an affordable housing organization. Community Roots Housing would not exist. On the most basic political plane, we all receive a paycheck because there is housing insecurity for low-income people.

Community Roots Housing has the opportunity to provide one of many antidotes to this poisonous branch of racism. We state, “By embracing community-led development and engaging in deep-rooted partnerships, we’re fostering vibrant, equitable communities where everyone has access to safe, affordable and welcoming homes.” In our 2020 Strategic Plan, we commit to “Employing anti-racist practices, we work to transform ourselves and create communities and a workplace where all feel welcome. As long as race continues to predict outcomes in our communities, we will center racial equity in our work, giving us tools to dismantle other systemic oppressions.”

What if we employed anti-racist practices that move us towards obsolescence? Can we imagine a world where all people can truly set down roots and thrive? Can we imagine a world that leaves behind a devastating and disparate lack of employment, housing, and health care for communities of color? Community Roots Housing is called to reimagine neighborhoods where everyone has the ability to thrive. In order to “support socially just, culturally rich, and environmentally sustainable communities throughout our region” we must invest in community-led solutions that create safety and support. By publicly supporting the divestment of SPD, we shift away from the criminalization, over policing, and racial profiling of low-income Black and Brown people in Seattle. We advocate for the reallocation of

Page 61 of 102 funds that will undeniably decrease the crises and crimes that SPD is responsible for responding to. We demand that Seattle takes a historical stand to move money to potentially eliminate the risk of death by interaction with police.

In the 2020 adopted City of Seattle budget, SPD held over a quarter of the General Fund at $409 million. This is approximately $67 million more than Health and Human Services and $122 million more than Neighborhood and Development. As an organization, we regularly call on our local and national officials to increase funding for housing. What is standing in the way of us supporting this particular redistribution of dollars that will improve the lives of those most impacted by police violence and anti- Black racism? How can Community Roots Housing be a leader for our peers locally and nationally by standing with our Black and Brown residents, neighbors, community partners, and colleagues in saying enough is enough? It is time to redesign the way policing is funded and supported in our city. It is far overdue to adequately fund affordable independent and supportive housing developments.

We recognize there could be a perceived risk in supporting the defund SPD request from Black Lives Matter Seattle-King County, King County Equity Now, and Decriminalize Seattle. While seven out of nine Council Members have expressed support for defunding SPD by 50%, we understand that we rely on our relationship with the City to fund our pipeline. The call to defund police may sound extreme to some, but the afore-mentioned groups have laid out clear plans for the redistribution of taxpayer dollars to social programs and direct investment in communities of color. In the context of civic resources that have been underfunded and divested from continuously, such as schools, social services, and affordable housing, it begins to sound less radical and more of an imperative. We know that getting killed by police is a leading cause of death for young Black men, and Black women are 1.4 times more likely to be killed by police than white women. As we weigh the risk of our political relationships with the tragic reality of life or death for Black Americans, we hope our role as Community Roots Housing sharpens focus and becomes clear.

Solidarity is a risk worth taking.

If we stay silent and ignore our obligation to use our voice, we risk dissolving trust with our community. We risk not acknowledging the proven inextricable relationship between racism and housing. We risk not following through on aspirational strategic objectives and brand messaging – our promises become empty and meaningless. We risk the loss of an opportunity to participate in efforts to address root causes and symptoms of racism in our country. We risk standing on the wrong side of history.

We cannot wait until it feels safe or is widely accepted to announce our support to defund SPD. While a proposal to defund SPD could involve a range of strategies and may not be a straightforward or linear process, a vote to defund is a beginning. Defunding SPD will increase the funding available to develop more affordable housing in Seattle. Will Community Roots Housing want to apply for the additional funding created by defunding SPD? What message does it send to our community that we seek to benefit from the tireless work of under-resourced community activists but will not stand beside them when it is the hardest? How are we centering our strategic objective to “Build trust and honest relationships with communities”?

There is no question that the movement to defund SPD is in alignment with Community Roots Housing’s goals, aspirations, and operations. Crime and violence can be eliminated by building beyond buildings and nurturing communities that aren’t fighting over survival resources.

Page 62 of 102 To demonstrate this alignment, below are excerpts from our 2020 Strategic Plan as well as messaging for our rebrand as Community Roots Housing:

2020 Strategic Plan

• When all people are welcome, a home is the foundation for communities that are healthy, sustainable, and economically and socially diverse.

• CRH acknowledges that our industry exists because of systemic racism, classism, and other forms of oppression that consistently create disparities in access to affordable, quality homes. CRH recognizes that without residents, we would not be in operation, and so we intentionally center them as the people who are most important and pivotal to our work. As we strive to understand the historical and current systemic conditions that create racial and social inequities, we commit to centering the needs and strengths of our residents who are most impacted by these experiences. If we “center racial equity and residents in all we do,” we will satisfy our mission by creating vibrant and engaged communities as a solution to the housing and homelessness crisis.

• Home is the place we set down roots, plan for the future and mark our setbacks and our successes. It is the foundation we need to flourish. When we feel stable in the place we live, we invest in the community around us. Capitol Hill Housing creates affordable, quality places to live and work so that people from all walks of life — single parents and their children, senior citizens on fixed incomes, freelance artists, folks transitioning out of homelessness, and refugee families escaping political strife — have a place and a community to call home.

• While CRH maintains strong relationships with many peer organizations and networks, feedback from our partners is mixed. Increasingly, we work with communities marginalized by oppressive systems and with populations who carry the burden of generational trauma due to those experiences. As deep community work is essential to meet mutual goals when we are in partnership, we must strengthen our equity analysis as an organization and commit to holding ourselves accountable to our partners.

• Our approach is to be part of a community, building on existing assets and forming collaborations with the people and organizations who share roots there. We partner to connect residents to programs and services beyond housing and to address the priorities of the broader community — from creating cultural assets to fighting displacement. The key is working side by side in honest relationships that build trust over the long-term

• We are committed to supporting communities where people feel safe and secure and can invest in the community around them. This means listening with humility, operating with transparency, and meeting a community’s evolving needs. The result is socially just, culturally rich, and environmentally sustainable communities where people feel engaged and at home.

Letter from Board President and CEO

• Our name has changed, but our commitment to community and making a difference in people’s lives has not. As we move forward, we will continue to listen and respond to community priorities so that the people who live there have an enduring place to call home.

Page 63 of 102 Suggested reading on the intersection of housing, police violence, and defunding police:

• Community Organizations Have to Talk About Police Violence Directly • Why the Fight Against Police Brutality is also a Fight for Affordable Housing • The Unfulfilled Promise of Fair Housing • To Protect and Serve, Defund Police • We Need To Divest From Police To Improve Public Safety • The Time To Abolish Seattle Police Was Yesterday • “You Can’t Fix What’s Fundamentally Broken.” Seattle City Council Considers Defunding Police Department • Does The City Council Want To “Fire Half The Police Department Overnight”? Fact-Checking The Mayor And Police Chief’s Claims • Would Defunding the Police Make Us Safer?

The Community Roots Housing staff listed below sign onto this letter requesting we publicly support defunding SPD by 50% and work to build honest and trusting partnerships with the community organizations working on this effort. We request Community Roots Housing takes this stance prior to the City Council meeting on Monday August 3rd, 2020.

Amy Gabriel Joah Snowden Andrea Foster John Zimmerman April Lee Laura Orella Ashley Thomas Katrina Taylor Azizza Mussa Kiley Dhatt Deer Kim Kristopher Dillard Demontrice Bigham Mason Cavell Erin Fried Michelle House Hassna Benyahya Michelle Lambert Jacob Belser Robyn Dhatt Jeremy Dinkens Stephanie Vernard Jessica Sherwin Veronica Guenther Ji Soo Kim Veronika Groth

Page 64 of 102 Sent: Thursday, September 3, 2020 3:53 PM Subject: RE: Listening Session and Defund Request

Hi all,

Thank you so much for your time and energy at the listening session last night. It was powerful to share experiences and perspectives across staff, board, and executives.

The Racial Equity Task Force (RETF) wanted to follow up specifically with some clarity around the request to publicly support the call to defund SPD by at least 50%. We realize the original request for advocacy prior to the August 3rd City Council meeting is outdated and applied to the rebalancing of the 2020 budget. Our updated request is to support defunding SPD by at least 50% in the upcoming 2021 budget and support Black-led community based organizations’ call for a participatory budgeting process.

Here are our two clear requests- • Community Roots Housing signs on to https://decriminalizeseattle.com/ • Community Roots Housing publishes our own letter, working off the foundation of the staff’s letter, to all stakeholders (City Council, partners, staff, etc) to establish our support to defund SPD as it directly relates to housing and the well-being of the individuals and families that live in our communities. This letter should include – o Our efforts to look internally to improve racial equity and move towards being an antiracist organization o Urging our peers in the housing sector to take a stand with us o An open invitation to Black-led and other POC community based organizations to hear how we can support the work and build relationships

RETF and other staff that signed onto the original letter will be meeting shortly to further debrief on the wonderful question of What’s Next?

Thank you all again for your time. We look forward to this historical action and continuing this most critical dialogue.

Thank you, Racial Equity Task Force Ashley Thomas, B. Williams (consultant), Chiloe Barrera-Cloyd, Erin Fried, Greg Gibson, Jeff Hagen, Ji Soo Kim, Kiley Dhatt, Michelle Lambert, Robyn Dhatt, Sasha Sobers-Outlaw, Veronica Guenther

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SECTION 9: 9 Consent Agenda and

Attachments SECTION SECTION

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COMMUNITY ROOTS HOUSING PDA BOARD Regular Meeting September 14, 2020 5:30-7:30 PM Zoom

CONSENT ITEMS

MINUTES AND REPORTS

1. August 2020 Draft Board Meeting Minutes (attached for adoption) 2. Committee Reports and Minutes (attached for acceptance) a. Executive Committee Minutes – Special Meeting – September 3, 2020 b. Resolution 2020-18: S. Annex (YouthCare) Funding Application c. Resolution 2020-19: Banner Bank Line of Credit Extension

DONATIONS, TRANSACTIONS OVER $10,000 OR 1-YEAR, AGREEMENTS WITH PUBLIC ENTITIES None.

Page 69 of 102

REGULAR BOARD MEETING MINUTES Zoom

August 10, 2020

Members Present: Frank F. Alvarado III, Derrick Belgarde, Rachel Ben-Shmuel, Paul Breckenridge, Jill Cronauer, Sara Cubillos, Bob Fikso, Chasten Fulbright, Drew Porter, M. Michelle Purnell-Hepburn, Eric Snow, George Staggers

Members Absent: Shalimar Gonzales, b.g. Nabors-Glass

Staff Members Present: Chiloe Barrera-Cloyd, Michelle Canizio, Robyn Dhatt, Muhammadou Drammeh, Jill Fleming, Erin Fried, Greg Gibson, Donna Moodie, Chris Persons, Michael Seiwerath, Sarah Shoemake- Gamble (taking Minutes), Sasha Sobers-Outlaw, Ashley Thomas, Jeremy Wilkening

The meeting was called to order by Frank F. Alvarado III at 5:33 pm.

Disclosures & Recusals: Derrick disclosed that his employer, Chief Seattle Club, has applied for funding to develop permanent supportive housing at the Lake City property.

Consent Agenda: Frank reviewed the consent agenda, noting that it included Resolution 2020-17: White Center Community HUB Funding Applications and Site Control.

A motion to approve the Consent Agenda was made by Michelle Purnell-Hepburn, seconded by Jill Cronauer, and passed unanimously.

Presentation and Discussion

Spring Bond Round & Pipeline Overview: Jeremy reviewed the spring bond round results. He also updated the Board on each project currently in the development pipeline, with an overall update on COVID and staffing impacts as well as upcoming milestones.

Capitol Hill EcoDistrict Update & Projections: Donna reviewed the work of the Capitol Hill EcoDistrict, noting their current main projects include Lowell Elementary School Based Health Center, Community Kitchen, Cal Anderson Park, and Seattle Central Community College. She shared that the Park and College work tie in closely to the public life planning work. Donna updated the Board on recent fundraising and social media outreach efforts and plans for the year.

August 2020 Page 70 of 102 PDA Board Meeting Minutes

Executive Committee & Governance

Board Development Update: Chris updated the Board on the current top PDA Board Member Candidates, who have been vetted by both the Executive and Joint Board Development Committees. He has a meeting scheduled with the top candidate in the coming weeks.

Charter and Rules & Regulations Update: Chris reminded the Board that the Charter and Rules & Regulations are effective as soon as the version signed by the Mayor has been filed with the City Clerk, which we heard from the City has occurred. We are waiting for the City Clerk signed version; however, the amended Charter and Rules & Regulations are now effective.

Staff Proposal to Support the Defund the Police Initiative: Twenty-six staff members submitted a letter to the staff Executive Team on Wednesday, July 29th requesting action by Community Roots Housing prior to the Monday, August 3rd City Council vote regarding defunding the police. Given that this type of decision would need to be vetted by the Board, the topic was added to this meeting’s agenda to introduce discussion. The Executive Team also discussed the letter at their meeting on July 30th and reached out to PDA Attorney to confirm what action would be allowed on such legislation as a PDA.

The Board was asked to share their input on the letter. Overall, Board Members were supportive and impressed by the passion and power of the staff letter, sharing appreciation for the staff members who wrote it and brought it to the Board. It was decided that the letter and request for action would be added to the next Executive Committee Meeting agenda and likely be the top item on the September Board Meeting agenda to allow for sufficient time to further discussion and possible action on the topic.

Real Estate Development

West Seattle Project: Per RCW 42.30.110 (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 session began at 6:54 pm. The Board exited the executive session at 7:03 pm.

Foundation and Community Relations

Omnivorous: Michael updated the Board on the upcoming Omnivorous fundraiser scheduled for Thursday, October 8th which will happen online and work to support local restaurants.

Finance and Asset Management

Financial Summary: Muhammadou presented the Finance and Asset Management Committee regular report and dashboard through June 2020.

A motion to approve the August Finance and Asset Management Report was made by Chasten Fulbright, seconded by Michelle Purnell-Hepburn, and passed unanimously.

August 2020 Page 71 of 102 PDA Board Meeting Minutes

2021 Budget Timeline: Greg reviewed the timeline for the 2021 budget which staff began working on this month. Budget allocations and rent schedules should be finalized by the September Board Meeting. Budget forecast and assumptions will be presented to the Board in October. The draft budget will be reviewed by the FAM Committee and the Board in November with final Board approval in December. Staff hope to create a more streamlined process for this year’s budget to be approved earlier than previous years.

Lake City 1 Update: The Board was updated on the status of the Lake City parcel.

Property Operations

Michelle updated the Board on vacancy rate, collections, relief funding, and progress on her department’s annual work plan.

The meeting was adjourned by Frank F. Alvarado III at 7:31 pm.

Attested,

______Jill Cronauer, Secretary September 14, 2020

August 2020 Page 72 of 102 PDA Board Meeting Minutes

SEPTEMBER 2020 PROPERTY MANAGEMENT COMMITTEE BOARD REPORT AND MINUTES

Property Management Committee Members: Eric Snow, Jill Cronauer, Chasten Fulbrigh

Staff Liaisons to the Board: Michelle Canizio and Ashley Thomas (BOLD indicates those members in attendance)

Date, time and location of meeting: September 1, 2020 -3:00 –4:00 PM – Zoom Conference Date, time and location of next meeting: October 6, 2020 – 3:00 -4:00 PM – Zoom Conference

Attached is the July AM dashboard: • Monthly physical vacancy was 4.2% • Monthly economic vacancy was 5.4% • 12-month rolling economic vacancy rate was 4.3%

Page 73 of 102

Resident Services September Board Report - July Program Data

COVID-19 Resilience Fund Rental Assistance • 41 households applied • 40 approved • $41,900 awarded in July • $202,556 awarded as of 8/27/20

Service Touches 93 Total Service Referrals

Resident Feedback Portal Power BI Dashboard

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Community Roots Housing Asset Management Dashboard Year to Date at July 31, 2020 A/R A/R Physical Vacancy Op Rev Per Unit Op Exp Per Unit Cash Flow Per Unit (1) Resident Portion Resident Portion 12-Month (at month end) YTD YTD YTD $ %(3) Rolling Avg. (4) Economic Vacancy Vacant Vacancy Total Budget Budget Budget Make Total 12 MO 2019 July 2020 Building Units % Units Actual Var % Actual Var % Actual Var % Ready Days Vacant July 2020 Rolling Vacancy Byron Wetmore 12 7,269 4% 6,213 2% 291 310% 13,911 115% 0.0% 0.0% 1.1% Elizabeth James 4 6.7% 60 6,158 0% 4,928 -9% (314) -322% 7,807 14% 114 154 6.6% 4.7% 2.9% Four Twelve 12 13,260 -8% 8,622 -7% 440 -89% 6,854 27% 100 140 24.0% 4.7% 1.0% Hazel Plaza 16 16,090 2% 5,969 3% 4,845 13% 17,215 46% 88 176 0.0% 7.3% 6.8% Joe Black Apartments 1 4.2% 24 8,223 -5% 7,319 -8% (76) -109% 7,002 24% 46 142 4.9% 9.4% 13.3% Mary Ruth Manor 2 10.0% 20 14,205 -6% 7,702 -7% 981 -61% 17,486 41% 129 111 7.7% 4.0% 2.4% Union James 2 8.3% 24 10,556 -7% 6,611 -10% 1,266 -53% 22,493 56% 347 395 8.4% 14.3% 14.6% Jacob Total 9 5.4% 168 9,572 -3% 6,295 -6% 688 -55% 92,768 38% 114 165 7.3% 6.9% 6.5% Eighteenth Avenue (5) 3 33.3% 9 8,466 -27% 4,139 38% 3,973 -1% 1,110 7% 32.0% 3.5% 0.0% El Nor (5) 45 9,719 -14% 2,676 40% 6,642 3% 2,259 3% 0.0% 0.0% 0.0% Helen V 1 2.6% 38 11,068 0% 8,347 -49% 641 -81% 12,507 20% 0 108 2.6% 5.7% 5.5% Holden Vista 1 6.3% 16 8,103 -11% 10,544 -39% (3,697) -1618% 1,317 6% 0 90 26.5% 16.0% 12.2% Holiday 30 6,569 -4% 5,182 -17% (1,171) -588% 9,669 35% 114 190 3.2% 4.7% 3.8% Park Hill 2 6.7% 30 8,497 -3% 5,898 13% 1,359 91% 20,045 52% 0 37 12.9% 3.5% 3.1% Ponderosa 1 4.3% 23 10,974 -1% 4,691 10% 6,247 13% 2,926 8% 4.3% 2.3% 0.0% Silvian 1 3.1% 32 9,066 4% 5,127 23% 1,736 1573% 6,699 16% 35 34 0.9% 1.6% 2.6% Unity Village 2 6.7% 30 5,414 -15% 5,664 5% (483) -350% 7,754 29% 91 189 12.6% 13.9% 9.4% Lynn Total 11 4.3% 253 8,777 -7% 5,604 2% 1,938 -19% 64,285 19% 85 113 7.0% 4.6% 4.5% Berneva 12 5,796 1% 6,866 -11% (1,749) -57% 82 1% 128 153 0.0% 8.5% 8.7% Brewster 35 5,623 2% 4,236 6% 947 503% 5,961 22% 22 87 0.0% 3.7% 7.8% Broadway Crossing 44 6,509 -2% 5,673 0% (137) -271% 14,531 40% 15 103 2.1% 1.8% 3.9% Haines AAA 30 9,206 4% 4,546 1% 3,038 18% 1,057 3% 0.0% 1.1% 1.9% Jefferson Housing 40 8,120 0% 4,775 7% 618 1211% 4,414 10% 15 105 0.0% 1.3% 3.0% Oleta 2 5.9% 34 5,820 -2% 4,140 2% (111) -96% 3,948 13% 20 59 7.2% 4.6% 13.6% Pantages 1 2.0% 49 6,614 7% 4,834 3% 607 972% 6,703 15% 19 90 1.8% 2.6% 3.6% Twelfth Avenue Arts 2 2.3% 88 7,484 5% 4,490 -19% 407 -50% 29,778 33% 13 80 3.1% 1.8% 1.8% Nelda Total 5 1.5% 332 7,031 3% 4,760 -2% 553 51% 66,475 21% 22 81 2.0% 2.4% 4.3% Boylston Howell 30 6,859 2% 5,523 0% 1,142 220% 10,890 39% 60 116 0.0% 1.3% 3.6% Bremer 1 2.0% 49 5,819 4% 3,971 5% 520 516% 7,642 19% 42 92 2.3% 1.6% 6.4% Centennial 2 6.7% 30 6,881 -1% 4,334 3% 100 310% 16,011 52% 16 85 3.8% 5.5% 7.5% Devonshire 2 3.2% 62 5,768 -2% 4,892 -2% (247) -835% 21,868 42% 32 97 3.2% 5.1% 4.2% Fleming 2 5.6% 36 5,799 0% 4,094 12% 96 122% 12,691 42% 12 50 5.7% 4.5% 8.0% Fremont Solstice 18 7,235 5% 4,827 6% 373 234% 3,358 19% 0.0% 0.1% 2.3% Gilman Court 25 8,280 5% 7,847 -13% 59 135% 3,674 16% 0 61 0.0% 1.1% 0.6% John Carney 1 3.7% 27 6,418 -1% 5,112 2% 409 24% 18,284 76% 9 58 9.2% 8.1% 9.4% Larned 1 3.0% 33 6,398 -2% 4,818 29% 1,192 287% 9,919 51% 38 90 4.3% 3.1% 3.3% Melrose 7 23.3% 30 4,946 -10% 4,210 1% (9) -102% 17,210 72% 36 136 25.8% 10.1% 4.0% Villa 4 6.5% 62 6,556 -6% 4,934 0% (677) -226% 23,543 51% 57 92 7.9% 5.4% 3.1% Skye Total 20 5.0% 402 6,319 -1% 4,859 4% 167 213% 145,089 43% 34 92 5.5% 4.3% 4.8% Broadway 5 8,239 1% 5,000 25% 1,594 1819% 296 5% 0.0% 0.0% 0.0% Burke Gilman Gardens 15 8,213 3% 5,992 12% 395 156% 13,014 75% 21 46 0.0% 1.3% 1.0% Fredonia 1 8.3% 12 16,517 1% 9,529 10% 3,372 56% 4,339 27% 16 77 6.7% 2.8% 0.6% Harrison at 15th 1 5.3% 19 12,670 2% 8,069 -5% 639 291% 1,318 6% 11 44 4.8% 1.9% 0.5% Liberty Bank Building 5 4.3% 115 6,543 -5% 5,654 -50% 142 -71% 121,793 109% 4.3% 4.9% 1.6% Lincoln Court 3 10.3% 29 6,004 4% 3,810 7% 40 107% 6,596 26% 19 134 6.9% 4.7% 2.9% Maxwell 4 7,186 1% 4,773 30% 1,526 372% 288 7% 0.0% 0.0% 0.0% Miller Park 1 8.3% 12 7,328 -3% 6,054 -1% (322) -1236% 11,176 86% 11 66 12.0% 3.7% 6.7% Seneca 1 3.1% 32 6,578 0% 4,760 7% 582 154% 8,238 27% 35 78 3.4% 2.1% 1.0% Squire Park Plaza 4 6.7% 60 11,582 -1% 4,886 2% 1,796 -4% 59,517 71% 21 91 7.6% 5.2% 3.8% Valencia Total 16 5.3% 303 8,422 -1% 5,546 -10% 701 23% 226,662 69% 18 110 5.4% 4.0% 2.3% Portfolio Total 61 4.2% 1458 7,720 -2% 5,274 -2% 733 -3% 595,280 38% 38 104 5.4% 4.3% 4.4% Blended Portfolio 42 5.0% 845 7,564 -1% 5,557 -1% 330 -18% 323,624 37% 44 94 6.4% 5.2% 5.4% Discrete Portfolio 19 3.1% 613 7,933 -2% 4,885 -3% 1,289 4% 271,568 39% 25 126 3.9% 3.1% 2.8%

Page 75 of 102 M:\Asset Management\AM - General Asset Management\Reporting\DRAFT July-2020-AM dashboard.xlsx Monthly Economic and Physical Vacancy Rate: Aug 2019 - July 2020 6.0% 5.4%

5.0% 4.2% 3.9% 4.0% 4.0% 4.2%

3.0% 3.5% 3.6%

2.9% 2.0% Economic Vacancy Rate

Physical Vacancy Rate 1.0%

0.0% 8/31/2019 9/30/2019 10/31/2019 11/30/2019 12/31/2019 1/31/2020 2/29/2020 3/31/2020 4/30/2020 5/31/2020 6/30/2020 7/31/2020

Monthly Economic Vacancy Comparison: 2018 - Present 6.0% 2018 Vacancy 2019 Vacancy 2020 Vacancy

5.0%

4.0%

3.0%

2.0%

1.0%

0.0% January February March April May June July August September October November December

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September 2020 Fundraising and Communications Memorandum

To: Community Roots Housing Board of Directors CC: Christopher Persons From: Michael Seiwerath

COVID-19 Response To date $459,771 has been raised in the COVID-19 Resilience Fund. It is clear the need for rental assistance will stretch well into the fall. While donations for the fund have slowed, staff anticipates releasing an update on the fund next month and making another push for support.

Grants In the last four weeks: Grant proposals awarded include: • Enterprise Community Partners – Emergency Action for Resident & Partner Sustainability (EARPS) program award of $100,000 to support Annual Fund • PCC Community Market donation of $1,500 to support the EcoDistrict • King County School-Based Health Center for $86,550 on behalf of Odessa Brown Children’s Clinic (does not count toward Foundation fundraising goals) • KeyBank award of $15,000 to support Annual Fund (awaiting written confirmation)

Grant proposals declined include: • U.S. Bank Community Possible Grant for $10,000 to support Annual Fund • Robert Wood Johnson Foundation proposal for $600,000 to support the EcoDistrict and partner Seattle 2030 District

Grant proposals submitted include: • Moccasin Lake Foundation proposal for $10,000 to support the EcoDistrict

Grant proposals still pending include: • Bank of America Neighborhood Builders program proposal for $200,000 to support Annual Fund • Dupar Foundation proposal for $10,000 to support Resident Services • Muckleshoot Community Foundation proposal for $5,000 to support Resident Services • Tulalip Tribes Charitable Fund proposal for $5,000 to support Annual Fund • Windermere Midtown proposal for $5,000 to support Resident Services

Upcoming grant proposal deadlines include: • United Way of King County & City of Seattle Food Fund, collaborative proposal led by SCIDpda – due September 11 • Kawabe Foundation – proposals due September 11 • City of Seattle Department of Neighborhoods Community Partnership Fund program was paused to respond to urgent needs around COVD-19 – resubmissions due September 15 • Capital One – proposals due September 18

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• Enterprise Community Partners Section 4 - proposals due September 18 • City of Seattle Equitable Development Initiative, likely supporting a Byrd Barr Place proposal for Rise Together – proposals due September 23 • Nisqually Indian Tribe Charitable Fund – proposals due September 25 • Lockwood Foundation – proposals due September 30 • Clif Bar Family Foundation – proposals due October 1 • Union Bank Community Recovery Program – target submission Q3 • Washington Federal Foundation for Annual Fund – target submission Q3 pending invitation • Harvest Foundation for Resident Services – target submission Q3 • JP Morgan Chase for Annual Fund – target submission Q3 pending invitation • Heritage Bank for Annual Fund – target submission Q3 pending invitation

Additional major donations included $10,000 from the Hoedemaker Family Fund and an anonymous $50,000 individual donation through the Seattle Foundation’s Donor Advised Fund. Rise Together Capital Campaign The Rise Together campaign’s current total raised is $13,353,756 against a $17M goal for the end of 2020, and a $25M overall campaign goal. In August, all six Rise Together executive directors had a positive meeting with leadership from the Ballmer Group. We hope to be invited to submit a multi-million-dollar proposal to support the entire Rise Together campaign before the end of 2020. Grant proposals recently won: • Walsh Construction gifted $20,000 to Byrd Barr Place to support the renovation of Fire Station 23

Grant proposals recently submitted: • Request to the Norcliffe Foundation for $301,500 to support the LGBTQ-affirming affordable senior housing and community center • Proposal for the commercial space in the White Center Community HUB for $2,700,000 to the Washington State Building Communities Fund, a competitive public grant program administered by the Department of Commerce

Grant proposals still pending: • King County anticipated appropriation of $1M to support the White Center Community HUB

Upcoming grant proposals: • Seven-figure request to the Ballmer Group to support the entire campaign—proposal planned for Q3 • A request to Joshua Green Foundation for $250,000 to support the entire Rise Together campaign—target submission August

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Events

Omnivorous registration is open! This year it will be a portion of our shiny new site, so it is simple to point people towards. Similar to Top of the Town, we will have a tiered pricing structure, offering free tickets as well as the traditional $85 ticket. There will also be a higher, immersive level ticket at $150 that gives folks entrance into small group demos later in the evening.

This reimagined event will keep many elements of the Omnivorous program, including Kevin Joyce, an update from Chris, and a resident speaker. Rather than a sole restaurant speaker, we are talking to Kristi Brown about a testimony, as well as having our very own Donna Moodie, who can speak to both the connection between affordable housing and the restaurant industry and Community Kitchens and the impact of COVID.

We have a few ways to incorporate the restaurants who have supported this event for so many years. There will be small group demos after the program for immersive level ticket holders and sponsor guests. We will have a cocktail/mocktail demo in the 15 minutes before the event to join early and grab a glass. Restaurants will be highlighted in our promotional materials to encourage guests to ‘make a night’ out of it by supporting these local restaurants. We are also in discussion with Savor Seattle to create a basket with a sampling of products from these local restaurants with a portion of the proceeds benefiting our organization (plus, there is the potential to have this on their site so that people can purchase the basket outside of Omnivorous).

At this point, we have secured $47,000 in sponsor pledges have been secured towards our $75,000 sponsor goal and have $65,040 in seeded gifts towards our $130,000 individual giving goal for the event.

Here are a few ways you can help support Omnivorous: • Registration is open here, so get your ticket by the 11th and start asking your friends! We will be sending out emails in the leadup, so forwarding those with a personal invite is perfect. • In order to reach our goals, we will need to bring in additional sponsors and could use your help. Contact Laura Orella at [email protected] to with any potential sponsor contacts in your networks. • Please consider being a Gatherer and commit to bringing 5 guests to Omnivorous. Find more information and sign up as a Gatherer here o Thank you, Deirdre Doyle, Frank Houston, Jeff Reibman, Kiley Dhatt, Margaret Pak Enslow, Michael Seiwerath, Sarah Shoemake Gamble, Stan Baty,and Yiling Wong for signing up!

Communications

The 2020 rollout of our new brand continues rolling. August saw the update of signage at our headquarters, and continued support to staff in updating logos at apartments within budget, staff, and safety capacity. Below is a peek of the second floor entrance to the Community Roots Main Office.

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The Communications Team also supported the ramp-up of marketing and logistics for Omnivorous, internal communications, messaging around advancing equity, COVID-19 developments, and continued expansion of Station House lease-up marketing. In recent months Station House advertising has canvased a wide breadth of venues including social media, paid and print advertising, street signage, word of mouth, community referrals, and e-blasts. Monthly metrics indicate roughly 600,000-1,000,000 impressions/readers per month since June reached resulting in 900-1,169 click-throughs (also monthly) to the leasing info page.

August Media Mentions of Community Roots and Related Projects: Date Article Title Outlet Puget Sound 8/13/2020 Donna Moodie uses her restaurant to bring her community together Business Journal COVID-19 updates: Washington cases ‘plateauing,’ the last time somebody died of coronavirus on Capitol Hill, and a possible school 8/17/2020 delay CHS Blog Seattle Daily 125 Lake City units planned, possibly to be modular, for supportive Journal of 8/19/2020 housing project Commerce Plans moving forward for eight stories of affordable housing, homeless youth ‘education and employment academy’ at Broadway 8/24/2020 and Pine CHS Blog

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2020 Capitol Hill Housing Foundation Budget and Actuals

Updated August 28th, 2020

Please note the new format for budget to actuals below, which will be used for the Foundation going forward. The change is to format only; budget goals are unchanged.

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CHH COVID-19 Resilience Fund Actuals

As the CHH COVID-19 Resilience Fund is separate from CHH Foundation annual fundraising goals, actuals are broken out separately below.

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SEPTEMBER 2020 PROPERTY DEVELOPMENT BOARD REPORT AND MINUTES

Property Development Committee Members: Rachel Ben-Shmuel, Paul Breckenridge, Sara Cubillos Deirdre Doyle, Liz Dunn, Bob Fikso, Eric Snow, George Staggers

Staff Liaisons to the Board: Robert Baca, Jill Fleming, Chris Persons, Jeremy Wilkening (BOLD indicates those members in attendance)

Date, time and location of meeting: September 1st, 2020 – 3:30-4:30 pm – Via zoom teleconference Date, time and location of next meeting: October 6th, 2020 – 3:30-4:30 pm – Via zoom teleconference

Board Action in September:

Annex/Youth Care Funding Application.

This resolution is to authorize CRH to apply for OH, County, and HTF soft loans for the housing portion of the project. The PDC approved of presenting this to the board in the consent agenda.

CHP-1 Financing, Acquisition and Entity Creation

There are six resolutions for adoption, two per each building, one of which is voted by the Board and the other CHDA. Jeremy described the action to the PDC and the PDC approved of presenting these resolutions to the board.

U14 Predevelopment Financing – Consent for Helen V Partnership Interest

This resolution reaffirms Resolutions 2020-09 and 2020-16 (U14 and HPN predevelopment loan resolutions) and authorizes CRH to pledge partnership interest in Helen V as collateral for the loan. This action also requires CHDA action, which will be convened post September Board meeting. The PDC approved of presenting this to the board but no in consent as its material.

PDC also reviewed the future board action calendar.

Pipeline Discussion:

West Seattle: Jeremy updated the PDC on progress in West Seattle and the MOU with the partners.

Community Partnership Opportunity in CD CRH was approached by one of its community partners and asked to partner on a new large project in the Central District. Details of this opportunity are still in progress. Jeremy presented this opportunity to the group and there was a good discussion around it.

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Per RCW 42.30.110(g), the CRH Board PDC went into an executive session to consider the acquisition of real estate when public knowledge of such consideration would cause a likelihood of increased price.

Active Project Updates/Discussion:

Station House: The project is delayed to permanent conversion due to slow lease up. The building was placed in service in March. Currently the project is approximately 60% full and we will need to get it fully occupied in December for us to avoid any downward adjusters in equity. Property management has been working on improving marketing to fill vacancies and expects to hit 85% in October and then 100% in December. This will mean the closing will be April 2021.

U14: Jeremy updated the group on the investor RFP to date. There are at least five different investor/syndicator groups looking at the project. The PDC plans to have more discussion next month on the investors and financials of the project.

Yesler Family Housing: Yesler Family Housing is out for investors and lenders. Pricing on the equity is likely going to be lower than projected due to a lower level of interest due to economic uncertainty and the large size of the project.

CHP-1: CRH received multiple bids for the debt and is planning to select a lender in the next week. The project is expected to close per building with John Carney and Boylston Howell closing before Bremmer. The closing of the first two is expected in October and the later in November.

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SEPTEMBER 2020 CAPITOL HILL ECODISTRICT BOARD REPORT

Steering Committee Members: Chasten Fulbright, Whitney Fraser, Josh Morris, Michael Mariano, Alicia Daniels Uhlig, Cathy Hillenbrand, Egan Orion, Erik Rundell, Janet Shull, Jenny Cooper, Julia Buchans, Leon Garnett, Matthew Benedict, Matthew Combe, May So, Michael Gilbride, Michelle Caulfield, Neelima Shah, Yolanda Cieters, Christina Arrington

Staff Liaison to the Committee: Donna Moodie, Erin Fried, Akeyla Jimerson

Date, time, and location of next meeting: September 11, 2020 at 9am, Zoom Video Call

During the COVID-19 Crisis, the CH EcoDistrict has focused on doing our work virtually, while also focusing on the community and its needs.

The Capitol Hill EcoDistrict is the focus of the EcoDistricts.org’s Incubator. Due to COVID-19, what was in the past a workshop based on the regional goals and achievements of the Puget Sound EcoDistrict Cohort will now be focused solely on the Capitol Hill EcoDistrict. We have an agenda that will force a thorough examination of the Lowell Elementary School Based Health Center and the Public Life Planning of the Capitol Hill EcoDistrict. We will work closely with Enterprise work towards greater success with our two major endeavors. The Incubator will take place on Monday and Tuesday mornings of September 21 and 22, 2020.

While working diligently towards the certification of the Capitol Hill EcoDistrict, the summer schedule of our volunteer committee made it difficult to continue. Committee Chair, Matthew Benedict and Donna engaged in 1:1 to continue the process, also accommodating for the contrition of the committee. While this has extended the goal of completion beyond Labor Day, we remain on track to gain our certification.

With the support of many volunteers, and funding from Bank of America, the Capitol Hill EcoDistrict has been supporting food insecurities with meal deliveries to affordable residents in need. We have been delivering meals on Thursdays, using Marjorie Restaurant as a distribution center since the first weeks of May. We will make our last meal delivery on Thursday, September 10. Having partnered with Mercy Housing, Bellweather Housing and SCIDPDA to receive a Bank of America grant to purchase meals from over 14 restaurants, we close this project with great satisfaction of having served over 4000 meals in over 16 of our buildings every Thursday since the first weeks of May. The volunteers have found great satisfaction in gaining an opportunity to connect with residents. Many of our staff volunteers commented on appreciating the occasion to get to know the building directory of Community Roots Housing. We will continue to look for more funding to provide meals again to our residents in the Fall and Winter.

Public Life continues to move forward. The technical subcommittee, composed of expert stakeholders is planning its next meeting. We have invited several others to join this committee to inform a broader perspective. We continue to do our research of international projects which have experienced success in creating Public Space for communities. We continue our engagement with Seattle Greenways and Cal

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Anderson Park as we look for viable options to increase pedestrian safety and access while respecting businesses that are affected by neighborhood decisions. While it has become certain that we have lost our funding from the Department of Transportation due to the City’s lack of revenue from the Uber/Lyft tax, we are hoping to be considered for the 2021 budget and will look to the Department of Neighborhoods as well as the Department of Transportation. We are also reaching out to our Councilmembers and City officials to request consideration in the upcoming budget. We also did not receive funding from the Robert Woods Johnson Foundation, having applied for a grant this past Spring. We remain grateful for the process, which while arduous, provided us with an excellent internal examination of the Public Life Planning goals, through a lens of equity, liberation and inclusion and also exposed us to a new level of national grant research.

The Capitol Hill EcoDistrict continues to work closely with key institutions in our neighborhood. We have been meeting regularly with Parks officials to revision and reimagine Cal Anderson Park. Our inclusion has supported bringing more voices to the table and having a deeper conversation. We are also hosting socially distant walking tours with Seattle Central College Campus to facilitate neighborhood and stakeholder inclusion in the redevelopment process. While only two examples of how we are facilitating conversation and inclusion, we hope to advance our recognition as respected facilitators for healing our community through the inclusion of diverse voices.

The project to gain a designation for Cal Anderson Park as “pesticide free” has pivoted due to the conversations about the park. The project, a partnership with Seattle Audubon and other members of the Urban Bird Treaty City coalition, is now focused on its other objective – the creation of a habitat corridor along 11th avenue from Volunteer Park to Seattle University. On Tuesday, September 22, at 6pm, the team will host a free community workshop focused on sharing an overview of the project and a wildlife garden toolkit for people with and without yards. The CHOP gardener will join the workshop panel to share tie- ins with urban gardening as well as his experience regarding the co-creation of liberated public spaces. A community dialogue will then commence to identify challenges and to garner enthusiasm for the project from the public. We do hope that the conversation about Cal Anderson Park will yield the pesticide free designation and commitment from the Parks department next year.

We continue to brainstorm for alternative methods of fundraising. Challenged by the limited ability to gather under COVID-19, we are hoping to create an EcoDistrict Fundraising event and conduct an Individual Giving Campaign, working closely with already scheduled Foundation events.

While the Lowell Elementary School Based Health Center has been successful in raising funds with our assistance, we continue to recognize the need for additional funding. Working with our partners at Lowell Elementary, Country Doctor and the Odessa Brown Clinic, we are looking for grants and further funding to ensure that the placement of the SBHC in Lowell Elementary will be well funded to achieve long lasting success. The Kaiser Permanente Grant and the School Levy inclusion are an excellent foundation, on which to build.

The Capitol Hill EcoDistrict has engaged in revamping our website. We are working closely with Jessica Sherwin to identify our target audience and how to amplify our messaging to them through an enhanced website which we would like to launch in the new year.

Social Media continues to expand its audience. We have continued to define our use of multiple mediums, and regularly contribute conversation.

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Facebook is being used to advertise events and share information. We have used some FB advertising, and plan to do measure the benefits though analytics.

Instagram is serving as an aesthetic and community building format. Particularly through COVID-19, we find ourselves promoting small businesses, positive neighborhood interactions and documenting the crisis in a pictorial fashion.

Twitter has been reserved for political points of view and a little pushing of the envelope. Follow the Capitol Hill EcoDistrict on Facebook, Twitter, or Instagram.

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SEPTEMBER 2020 EXECUTIVE COMMITTEE BOARD REPORT AND MINUTES

Executive Committee Members: Shalimar Gonzales (Chair), Drew Porter (Vice Chair), Frank Alvarado (Vice Chair), Derrick Belgarde (Treasurer), Jill Cronauer (Secretary)

Staff Liaisons to the Board: Chris Persons, Robyn Dhatt (taking minutes) (BOLD indicates those members in attendance)

Date, time and location of meeting: Monday, August 31, 2020 - 5-6:30pm - Zoom Date, time and location of next meeting: Monday, September 28, 2020 - 5-6:30pm - Zoom

Minutes Meeting began at 5:03 pm

1) External Relations, Community Programs, Board Issues a) Staff Letter & Board Action RE Defunding the Police: Chris requested input from the Executive Committee in response to the staff letter concerning defunding the Seattle Police Department. He presented a set of questions and concerns for review. The Board and Executive Team at CRH have been invited by members of the Racial Equity Task Force, along with staff who co-signed the letter, to a listening session on Wednesday, September 2 to discuss this issue further. Several ideas were put forth by the group, including reviewing a community letter from decriminalizeseattle.com that has been signed by many of CRH’s peers and partner organizations. The Committee would like to explore the language and definitions put forth by the Defund SPD movement and defer future action based on the listening session. The Committee would like to hold a supplementary meeting to discuss the outcomes of the listening session before drafting a response to the Board. Chris would like to invite members of the Racial Equity Task Force to attend the September Board meeting to be able to present their case and answer any questions the Board may have.

b) Monthly CEO Workplan Review: Chris presented a format he created to review the CEO workplan which will center future discussion on desired outcomes, accomplishments, and challenges. Chris highlighted moving the pipeline forward, Board engagement and orientations, becoming a racially inclusive organization, community partnership updates, strengthening structure in Property Management, and growing the cohesion of CRH Executive Team.

c) Board Development: Chris provided an update on candidate Michelle Morlan, who would be voted into the vacant seat left by Rob Schwartz. Chris and Shalimar have planned to meet with

Michelle to move this discussion forward.

d) September Board Meeting: The Executive Committee reviewed the agenda for the upcoming Board meeting. Chris provided an update on the status of closing and developments of current

properties.

CRH Executive Committee September 2020 Page 88 of 102 Page 1 of 2

i) CHDA Meeting regarding HPN Loan for the Heartwood: This has been previously approved by the Board, but lenders have requested more specific language. Although this loan has been closed, the Board will need to pass a formal Resolution. The Executive Committee has suggested to move all Real Estate Resolutions to the Consent Agenda.

e) Upcoming Staff Outages: Chris notified the Committee that he will be out of the office for a week

in mid-September.

2) Real Estate Development and Asset Management a) Surplus Personal Property Disposition: This discussion pertains to property that is not a building, such as desks, computers, laptops, and various other items in the office. This issue will be on the agenda for the next FAM Committee meeting and will be brought to the Board at a later date.

3) Pipeline Update a) Real Estate Development Opportunity: The Keiro site at 14th and Yesler has become a partnership opportunity for CRH. Keiro had been historically operated by the Japanese American community, providing services to senior citizens. Conversations must be held with Mary’s Place and Africatown in regard to acquiring the property, which has most recently functioned as a homeless shelter. This opportunity will be discussed at the September Board meeting.

Meeting ended at 6:32 pm.

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SEPTEMBER 2020 JOINT BOARD DEVELOPMENT COMMITTEE BOARD REPORT AND MINUTES

Joint Board Development Committee Members: Sara Cubillos (Committee Chair, PDA Member), b.g Nabors-Glass (PDA Member), Margaret Pak Enslow (Foundation President), Alice Quaintance (Former PDA Member)

Staff Liaisons to the Board: Robyn Dhatt, Greg Gibson, Donna Moodie, Michael Seiwerath, Sarah Shoemake-Gamble

Date, time and location of meeting: n/a Date, time and location of next meeting: September 23, 2020 – 4:00-5:00pm – Zoom or Belmont

The Joint Board Development Committee did not meet since the last full Board meeting. During the month, the Committee continued to advance its ongoing projects, including:

1. Racial Equity Task Force (RETF) a. Policies and Procedures: RETF used last month as a period of assessing the current status of projects, including the Racial Equity Framework and Racial Grievance policies. Both have not yet been rolled out to Community Roots Housing but are in the process of being finalized. b. Training: The Training and Education Committee would like to implement specialized training for Leadership Team members and Executive Team members, and racial equity training for all staff members. Training will eventually be rolling out to both PDA and Foundation Boards in the future. One concern was finding funding, as initial research is showing that training expenses are quite high, while the organization is striving to be more fiscally conservative during the pandemic. One suggestion from JBDC was to reach out to the Foundation for assistance in procuring grant money and find additional sources of funding. It was also suggested to look into different types of training to offer staff to keep racial equity on CRH’s radar. c. Caucuses: The Emergent Issues Committee has been working on both white and BIPOC caucusing for staff. RETF will pilot caucuses to committee members and focus groups in order to collect feedback and refine the process before rolling out caucusing to the entire staff. Pilot caucusing will take place in September.

2. PDA & Foundation Board Recruitment: The PDA Board is moving forward with a candidate who previously met with Chris, and are scheduled to meet with both Board Chair Shalimar and Chris. They also plan to attend the upcoming September Board meeting. Michael is working with two potential Foundation Board candidates.

3. Quarterly Trainings: The next Quarterly Joint Board Training is scheduled for Thursday, October 22nd and will be on the Capitol Hill EcoDistrict and the Public Realm Plan.

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4. PDA Emerging Leader Fellow: The Emerging Leader Fellow position is open and actively shared on social media, however we have not received any applications. Board members and staff are encouraged to continue to share the opportunity with their networks. The application is due on Friday, October 2nd.

5. Antiracist Work: In continuing the conversation with both Boards from the June book club on How to be an Antiracist by Dr. Ibram X. Kendi, the Committee will discuss at their upcoming meeting additional events that could be coordinated surrounding shorter material (such as an article rather than a book) and information to be shared on antiracist events and trainings. The Committee sent one email with resources and opportunities and will do son on a more regular basis with the Boards, such as podcasts, films, webinars, articles, trainings, in addition to events hosted by the Committee.

6. New Board Member Orientation: An electronic orientation will be planned for the new Board members this fall, until an in-person orientation can occur.

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EXECUTIVE COMMITTEE BOARD REPORT AND MINUTES Special Meeting September 3, 2020

Executive Committee Members: Shalimar Gonzales (Chair), Drew Porter (Vice Chair), Frank Alvarado (Vice Chair), Derrick Belgarde (Treasurer), Jill Cronauer (Secretary)

Staff Liaisons to the Board: Chris Persons, Sarah Shoemake-Gamble (taking minutes) Staff in Attendance: Mason Cavell (BOLD indicates those members in attendance)

Date, time and location of meeting: Monday, September 3, 2020 - 8-8:30pm - Zoom Date, time and location of next meeting: Monday, September 28, 2020 - 5-6:30pm - Zoom

Minutes Meeting began at 8:05 pm

1) External Relations, Community Programs, Board Issues a) Staff Letter & Board Action RE Defunding the Police: i) Debrief Listening Session: The Committee shared their thoughts on the Staff Listening Session from the previous day. The members noted their appreciation for having the meeting and creating the space for staff to engage with Board members and share their concerns. They also appreciated the materials and resources that staff shared beforehand. ii) Presentation to the Board: Chris reviewed a draft presentation for the upcoming Board Meeting, which outlines possible options for action, including pros and cons of each. Committee members asked questions about possible reactions and responses to the various options and Chris shared his thoughts. iii) Recommendation to the Board: The Committee decided against recommending a specific action for the Board to choose, in order to better facilitate a more open and honest discussion at the Board Meeting.

Meeting ended at 8:56 pm.

CRH Executive Committee Special Meeting September 3, 2020 Page 92 of 102 Page 1 of 1

CRH Board Resolution 2020-18

Overview: South Annex: Funding Applications

Purpose: CRH desires to apply for city, county and state capital funding for the South Annex project.

Charter or Rules and Regulations Modification: o Does this Resolution change the Charter or Rules and Regulations? ☐ Yes ☒ No o If yes, you need to give notice to the Board 15 days prior to the proposed change. o Changes to the Charter or Rules and Regulations must use the strike out and underline format so change is clear to reader.

General description and purpose: CRH desires to apply for city, county and state capital funding to develop 87 units of affordable housing in the Pike-Pine Corridor in partnership with YouthCare.

Organizational requirements of resolution: None

Financial cost of the resolution: n/a

Pros: Passing the resolution allows us to keep moving this development forward.

Cons: n/a

Further Board Action or Reporting: o Is further action required from the Board or a Board Committee? ☒ Yes ☐ No If yes, please describe: Property development committee will receive reports on the progress of this development and provide input as needed. o Is further reporting required to the Board or a Board Committee? ☐ Yes ☒ No If yes, please describe: Please include here whether full Board or Committee requires reporting, and anticipated dates for reporting.

Author of Resolution Overview: Veronica Guenther

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ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF COMMUNITY ROOTS HOUSING, A WASHINGTON PUBLIC CORPORATION

Resolution No. 2020-18 South Annex: Funding Applications

Be it known that:

Community Roots Housing, a Washington public corporation (“the Program”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal Code Ch. 3.110;

The purpose of the Program shall be to preserve, develop, own and operate affordable multifamily housing, as well as cultural, social, and economic facilities and to provide programs and services to promote equity and resilience in communities and to perform other functions as the Board shall determine. The Program shall function within the current city limits of the City of Seattle;

Community Roots Housing is authorized to exercise all powers necessary or convenient to affect the purposes for which the Program is organized and to perform authorized Program functions, including, without limitation, the power to contract and enter into partnership with individuals, associations and corporations; and

Community Roots Housing has identified the opportunity to develop the South Annex site (the “Site”) formerly owned by Seattle Central College located at 1500 Broadway, 1534 Broadway, and 909 E. Pine Street in Seattle, WA, 98122 into a mixed use commercial and low-income multifamily rental project in partnership with YouthCare; and

The CRH Board of Directors has previously passed Resolution 2018-02 dated February 12, 2018 to authorize CRH to negotiate a Memorandum of Understanding with YouthCare, a not-for-profit organization dedicated to serving the housing and service needs of homeless youth and young adults; and

The CRH Board of Directors has previously passed Resolution 2019-04 dated April 8, 2019 to authorize CRH to accept the Purchase and Sale Agreement to acquire the Site, receive public funds for the Site purchase, expend up to $500,000 in predevelopment funds, create operating entities, and allow CRH to serve as the development manager; and

The CRH Board of Directors has previously passed Resolution 2019-06 dated November 12, 2019 to authorize CRH to obtain an acquisition loan from the Washington State Department of Commerce

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(“Commerce”), close on the acquisition of the Site, conduct feasibility studies for the development, and provide necessary guaranties for the repayment to Commerce; and

NOW, THEREFORE, BE IT RESOLVED by the Board of Community Roots Housing as follows:

(1) Community Roots Housing 's Board hereby finds that the development of the Site will further Community Roots Housing's efforts to promote the development of quality affordable housing in the greater Seattle area.

(2) Community Roots Housing 's Board therefore finds and determines that the development of the Site will further the purpose of CRH and is therefore within the power and authority granted to Community Roots Housing by its Charter.

(3) Community Roots Housing 's Chief Executive Officer is authorized and directed to:

(a) Prepare and submit funding and development proposals over the next three years in response to NOFAs issued by the City of Seattle, King County and the Washington State Housing Trust Fund or other public sources until the project is fully funded.

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CERTIFICATION

I, Jill Cronauer, certify that I am the Secretary of Community Roots Housing and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of Community Roots Housing held on 14th day of September 2020, in accordance with the Charter and Rules and Regulations of Community Roots Housing upon proper notice and at which time a quorum was present.

th DATED the 14 day of September 2020.

By______

Its______

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Community Roots Housing PDA Board Resolution 2020-19

Overview: Authorization of Line of Credit from Banner Bank

Purpose: To renew existing operating line of credit with Banner Bank for $500,000

Type of Resolution/Motion: o Is this a formal resolution? ☒ Yes ☐ No o Are we requesting a motion from the floor? ☒ Yes ☐ No o Has this resolution been presented to a Board Committee?: ☐ Yes ☒ No If so, which committee or committees?: Renewal of existing line of credit, previously discussed with the Finance and Asset Management Committee

General description and purpose: The operating line of credit provides a cash buffer when cash inflows are variable. The use of the operating line of credit is governed by Section 14.1 of the CRH Finance Policies. Management and the Finance and Asset Management Committee consider having an operating line of credit available as part of prudent cash management.

Organizational requirements of resolution: No new requirements. CRH Finance Polices address the use of the line.

Financial cost of the resolution: Annual loan fee of ½% and interest on draws at prime. Pros: Allows for the efficient management of operating cash. Cons: None

Further Board Action or Reporting: o Is further action required from the Board or a Board Committee? ☐ Yes ☒ No If yes, please describe: Please include here whether full Board or Committee needs to take action, and anticipated dates for action. o Is further reporting required to the Board or a Board Committee? ☒ Yes ☐ No If yes, please describe: Draws on the line of credit in excess of $50,000 require board treasurer concurrence and draws in excess of $150,000 require two board members to concur. In addition, the FAMC monitors operating cash on a monthly basis.

Author of Resolution Overview: Muhammadou Drammeh

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ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE COMMUNITY ROOTS HOUSING, A WASHINGTON PUBLIC CORPORATION

RESOLUTION NO. 2020-19 AUTHORIZATION OF LINE OF CREDIT FROM BANNER BANK

WHEREAS, Community Roots Housing, a Washington public corporation (“the Program”), is organized pursuant to RCW 35.21.660, 35.21.670, and 35.21.730-755, and Seattle Municipal Code Ch. 3.110;

WHEREAS, the purpose of the Program shall be to preserve, develop, own and operate affordable multifamily housing, as well as cultural, social, and economic facilities and to provide programs and services to promote equity and resilience in communities and to perform other functions as the Board shall determine. The Program shall function within the current city limits of the City of Seattle. However, the Program may provide these services, activities and facilities outside of these boundaries with approval of the PDA Board of Directors (the “Board”) in accordance with the organizational Charter.

WHEREAS, it is deemed prudent financial practice to have funds available to cover potential short- term operational needs and cash flow timing differences; and

WHEREAS, the Program has previously obtained a Line of Credit Loan from Banner Bank and such Line of Credit Loan is up for renewal; and

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

NOW, THEREFORE, BE IT RESOLVED by the Board of the Community Roots Housing as follows:

(1) Two CRH board officers are authorized and directed to sign the Promissory Note and other necessary documents. The basic loan terms proposed are as follows:

• Borrower: Community Roots Housing, a public corporation organized as a political subdivision of the State of Washington with an area of operation focused on the City of Seattle and whose liabilities shall be satisfied exclusively from the assets and properties of the corporation • Term: Approximately One Year with an annual renewal • Amount: $500,000

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• Collateral: None • Guarantors: None • Loan Fee: No more than $2,500 or 1/2 per cent • Interest Rate: Prime rate • Payments: Interest due monthly, principal balance and any outstanding interest due on maturity date

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CERTIFICATION

I, Jill Cronauer, certify that I am the Secretary of Community Roots 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 14th day of September, 2020 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 14th Day of September, 2020.

By______

Its______

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SALE AND DISPOSAL OF SURPLUS PERSONAL PROPERTY

Sale or donation of surplus and personal property owned by Community Roots Housing

A. Approval of the Community Roots Council is not required for the sale or disposition of any organization- owned or controlled personal property with an individual item estimated value of $10,000 or less unless the item(s) are of cultural or historical significance to Community Roots, the communities we work in or our community partners. Disposal of culturally or historically significant items must be approved by the Council.

B. In accordance with this policy, the CEO may authorize department directors to sell or dispose of personal property that is in the custody of the departments and owned or controlled by the organization when said property is no longer of public use to the organization.

C. Department directors shall certify in writing to the CEO or duly authorized agent that organization owned property is no longer of public use to the organization, or that sale thereof would be in the best interests of the organization.

D. If the surplus property was purchased with grant funds, the department directors must review the grant documents and/or consult with the granting agency to ensure sale or disposal of the property is consistent with any grant requirements or restrictions prior to providing certification to the CEO.

E. Once it is determined that a surplus item is to be sold or disposed of, the fair market value (FMV) must be determined. This can be done by contacting the manufacturer or vendor, reviewing “Blue Book” or other industry valuation guides or reviewing current sales information. The fair market value cannot be determined by an individual, agency or business that has shown an interest in purchasing or obtaining the surplus item. Whoever determines the FMV must put their appraisal in writing.

F. After determining the FMV, the department director needs to determine the disposition method which may be “for sale” ads in local media or other means of locating an interested buyer and negotiating a sale. No one involved in the surplusing decision can acquire or purchase the surplus item.

G. If the cost to dispose of surplus items is equal to or greater than the current fair market value, they may be donated to a specific bona fide charitable organization which is tax exempt pursuant to Internal Revenue Code Section 501(c)(3).

H. If a government entity is interested in acquiring the surplus item, we must receive “value” from the acquiring agency (as determined by the Attorney General in AGO 1997 No.5). Value is not necessarily monetary in nature.

I. If there is no market for surplus items, they may be recycled or disposed of in an environmentally sound manner.

2/12/2020

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