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CHH Board Meeting Febr

February 2020

Meeting Meeting CHH Board Board CHH

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SECTION 1: 1

Meeting Keys

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February 2020 Capitol Hill Housing Board Meeting Keys and Agenda Reminder: Dinner begins at 5:15 PM. The meeting starts promptly at 5:30 PM.

We will enter into executive session as needed pursuant to RCW 42.30.110.

Meeting

Introductions: Board, staff and guests make brief introductions.

Consent Agenda, Disclosures and Recusals: Rob will present the consent agenda, any Board member can remove an item from consent agenda for full Board consideration.

The following resolutions and memos are included in the consent agenda for Board approval:

The CHH Foundation Public Policy Agenda which has been adopted by the Foundation board and reviewed by the Joint Boards Development Committee and is adopted annually as part of the consent agenda is part of this Board packet.

Board members will review items on the agenda and make any necessary disclosures and recusals. The Board will be asked to adopt the consent agenda.

Public Comment: The Chair will ask any members of the public present for comment not to exceed 5 minutes per individual or 15 minutes combined.

Presentation and Discussion

Middle Income Housing Update: A-P Hurd and Veronica Guenther will update the Board on the fast-moving Middle-Income project. We began talking about middle income projects relative to the Lake City parcel in January 2018 and hired A-P Hurd to help project manage this work. In 2019, we switched the site for this work to the Helen V parking lot (aka U14). The Board passed a predevelopment resolution in October 2019. Since then, design and entitlement work has moved forward with the view of applying for our master use permit by the end of June 2020. We have made the determination to move forward using cross-laminated timber and have held meetings with the residents of our adjacent property as well as members of the community. We’ve garnered interest from several banks and investors and the City has demonstrated much interest in the project.

Rebrand Activity: Our new brand contains many parts, the name (Community Roots Housing), a tagline, a logo, website redesign, collateral material etc. We are in the thick of finalizing these final pieces and will present logo options for the Board to give input on. The options have been vetted by many staff and Board members and this will be one of the final pieces to gain input on the final design. We will perform a dot exercise and have conversation to get your input in the same way that we did with the taglines.

Final Budget: 2020 is a unique year in that our project operating income is projected to be negative while we have significant cash-proceeds from the Bonanza transaction that replenished our Opportunity Fund and operating cash. Additionally, we project next year (2021) to be a much stronger year financially due to the fees generated by the Bonanza deal. These fees, although earned in prior years, will not come to us until 2021. We also know that many improvements are underway within Property Management increasing the

February 2020 Keys Page 1 of 4 Page 5 of 72

certainty that PM operations will get back into the black in the very near future. Finally, we made a commitment to fund the EcoDistrict for three years while working toward that program becoming a separate entity with full operational funding. We have stripped the budget of extraneous items for 2020, while also committing to needed salary increases for our site managers and other line staff. At the same time, investing in new positions to bolster our capacity as we brace for continued growth. These commitments to our programs and staff coupled with the knowledge that operational improvements are underway and our future cash position will continue to be strong has

Executive Committee

Board Development Considerations: Rob and Shalimar will update current Board development progress. Shalimar and Chris met with the leading candidate for the open seat and hope to bring her on by April. She needs to confirm with her work and then we would consider her candidacy at the March meeting. We are also discussing with Board members their interest to serve on the Executive Committee. Chris is reviewing with Board members their current Board committee assignments and discussing future assignments all to be resolved by the April meeting.

Washington State Bond Cap Crisis: The State of Washington is facing a crisis in annual “Bond Cap” allocation that will have a severe and long-lasting impact on our low-income housing tax credit (LIHTC) funded affordable housing projects if not addressed. CHH uses tax exempt bonding authority—Bond Cap—to create debt on our projects. This tax exempt debt pairs with our 4% tax credits to make financing our projects feasible. Like tax credits, tax-exempt bonding authority is granted to states by the federal government. States subsequently redistribute that bonding authority to projects including the development of affordable housing. Historically, the bonding capacity granted to the State of Washington has been more than enough to cover these projects but in recent years access to bond cap has become more competitive. For the first time, the Washington State Housing Finance Commission (WSHFC) (the State agency responsible for the administration of Bond Cap and LIHTC) created and implemented a scoring matrix to guide their selection of projects to award Bond Cap. The results were shocking. Of the nine projects awarded, only two were Seattle projects, leaving six Seattle projects without Bond Cap, included our CHP1 project. This is unprecedented and portends a backlog of projects and an existential threat to our industry. Chris and others will provide an initial briefing on this issue and how we and our industry colleagues propose to address it.

RESOLUTION NO. 2020-05: Donation Liberty Bank Building Safety Deposit Box Doors to the Community: We have approximately 296 safety deposit box doors in our possession following the development of the Liberty Bank Building. After speaking with our community partners, I reached out to the Northwest African American Museum to see if they’d like the doors. They declined but referred me to the Black Heritage Society of Washington (BHS), who agreed to accept 200 of the doors. Their plan is to inscribe the doors and distribute them to their patrons who would keep the doors on loan. This from the BHS: we could [accept] them and offer them as a keepsake gift for BHS Life Members or donors at a particular level. They would not be sold but would be a way to encourage members to be "history-keepers"...the piece symbolizing "safe keeping" of our community history.

This leaves us with 96 doors. We propose doing a similar thing with these remaining doors, offering them to our community partners and anyone who played a role in the development of LBB as “history-keepers.” I have created a complete inventory of the doors on which we can keep track of this effort.

The PDA Charter (based on Seattle Municipal Code) requires Board concurrence for the donation of money, property or other assets belonging to the Program. I plan to present a draft resolution to the Board this month for this purpose. February 2020 Keys Page 2 of 4 Page 6 of 72

Finance and Asset Management

Financial Summary: Muhammadou and the Finance and Asset Management Committee presents its regular report and dashboard through December 2019.

RESOLUTION NO. 2020-03: 12th Avenue Arts New Markets Tax Credit Financing Unwind: The New Markets Tax Credit (NMTC) structure at 12th Ave Arts (12AA) was one of the most complicated deal structures we’ve ever created. Multiple entities were created to carry out various roles within the structure which generated tax credits and then allowed us to receive financing for that credit bringing in almost $6 MM to the deal. All NMTC deals unwind after seven years and the unwinding of 12AA NMTC includes multiple components, including:

1. Refinancing the commercial loan that is serviced by our commercial rental income. The original loan was with Key Bank and Banner Bank is doing the refi. 2. Dissolving unnecessary entities and forgive the Leverage Loan (CHDA) and Qualified Low-Income Community Investment (QLICI) Loan. 3. Amending the ground lease and garage lease with the City keeping the City in a leasehold position rather than a condo ownership position. 4. Reorganizing the remaining entities and assign all loans and leases to one of them 12AA Association. 5. Perform all necessary filings and documentations to ensure all.

The CHDA and PDA resolutions tonight authorize staff to effectuate item number 2 above - the dissolution of two entities 12AA Development and Master Tenants, the forgiveness of the leverage and QLICI loans, reassigning the QLICI Mortgage and the assignment of the garage ground lease to 12AA Association. All transactions have been discussed with and approved by staff and our attorney.

Property Operations

Station House Lease Up and Resident Feedback Tool: Michelle will update the Board on the lease up of Station House and introduce our new resident communication tracking tool.

Real Estate Development

RESOLUTION NO. 2020-04: CHP1 Additional Predevelopment Financing Authority: We have exhausted our financing and spending authority on CHP1 and seek to increase this from $300,000 to $800,000. This has been reviewed by the Property Development Committee. Please note, that we inadvertently exceeded our spending limit on this project and are reviewing our systems to ensure this does not happen again.

Lake City 1: We will go into executive session pursuant to RCW 42.30.110 to discuss this item.

Upcoming Meetings and Events Please let Chris or Sarah know if you’d like additional information on any event or meeting.

Feb 17 Office Closed – Presidents Day Feb 24 CHH Executive Committee Meeting Mar 9 CHH Board Meeting

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Board Packet Sections 1. Meeting Keys, p. 5-8 2. Board Agenda, p. 11 3. 2020 Budget, p. 15 4. Draft Resolution 2020-05: Liberty Bank Safety Deposit Box Doors, p. 19-21 5. February 2020 Finance Report, December Statements and Asset Management Report, p. 25-32 6. Resolution 2020-03: 12th Ave Arts New Markets Tax Credit Financing Unwind, p. 35-39 7. Resolution 2020-04: CHP1 Additional Predevelopment Financing Authority, p. 43-46 8. Consent Agenda and Attachments, p. 49-72 a. Contracts and Expenditures, p. 49 b. January 2020 Board Minutes Draft, p. 50-52 c. Property Management Committee Report and Minutes, p. 53-56 d. Property Management Dashboard, p. 57-58 e. Fundraising & External Relations Memo, p. 59-62 f. Property Development Committee Report and Minutes, p. 63 g. Capitol Hill EcoDistrict Report and Minutes, p. 64-65 h. Executive Committee Report and Minutes, p. 66-67 i. Joint Board Development Committee Report and Minutes, p. 68 j. CHH Foundation Public Policy Agenda, p. 69-72

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Board Agenda

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CAPITOL HILL HOUSING BOARD February 10, 2020 5:30 PM – 7:30 PM Regular Meeting 12th Ave Arts Pike-Pine Room 1620 12th Avenue, Seattle

AGENDA

5:30 Call to Order (Schwartz) – 5 min total 1. Introductions, welcome 2. Disclosures and recusals 3. Approve consent agenda Sec. 8, Page 49

5:35 Public Comment (Not to exceed 5 minutes per individual or 15 for combined speakers)

5:40 Presentation and Discussion – 50 min total 1. Rebrand Activity: Logos (Seiwerath, Wong) – 20 mins Presentation & Activity 2. Middle Income Housing Update (AP Hurd) – 15 mins Presentation 3. Final 2020 Budget (Drammeh) – 15 mins Sec. 3, Page 15

6:30 Executive Committee – 25 min total 1. Board Development Update (Schwartz, Gonzales, Persons) – 5 mins Presentation 2. Bond Cap Crisis Introduction (Persons, Wilkening) – 10 mins Presentation 3. LBB Safety Deposit Box Doors (Persons) – 5 mins Sec. 4, Page 19 4. Introduction Charter and Rules Amendments (Persons, Fleming) – 5 mins Presentation

6:55 Finance and Asset Management – 20 min total 1. Finance Report (Alvarado, Drammeh) – 5 mins a. Financial summary, cash management report: December 2019 Financial Statements Sec. 5, Page 25 2. Resolution 2020-03: 12th Ave Arts New Markets Tax Credit Financing Unwind (Fleming, Persons, Breckenridge) – 10 mins Sec. 6, Page 35 3. Suspend meeting for CHDA meeting – 5 mins

7:15 Property Operations (Canizio) – 10 min total 1. Update on Property Management Activities a. Station House Lease Up b. Resident Feedback Tool

7:25 Real Estate Development (Wilkening) – 10 min total 1. Resolution 2020-04: CHP1 Additional Predevelopment Financing Authority – 5 mins Sec. 7, Page 43 2. Lake City 1 Introduction – 5 mins

7:35 Adjourn (Schwartz)

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SECTION 3: 3

2020 Budget

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Page 14 of 72 2020 Capitol Hill Housing Blended Budget

Department Buildings % Change 2019 Grand 2020 Grand 2019 YE from 2019 2020 2019 2020 Total Total Projection Projection

Tenant Revenue Residential tenant revenue - - 10,481,789 10,692,661 10,481,789 10,692,661 10,388,000 2.93% Commercial rent revenue, net - - 1,700,206 1,607,292 1,700,206 1,607,292 1,585,000 1.41% Triple net revenue - - 277,800 283,519 277,800 283,519 316,000 -10.28% Parking, Laundry & Other - - 167,575 171,368 167,575 171,368 199,000 -13.89% Gross Tenant Revenue: - - 12,627,370 12,754,839 12,627,370 12,754,839 12,488,000 2.14% Vacancy % Residential Vacancy & Concessions - (97,770) (298,020) (355,220) (298,020) (452,990) (584,000) -22.43% 4.24% Net Tenant Revenue: - (97,770) 12,329,350 12,399,619 12,329,350 12,301,849 11,904,000 3.34% Other Operating Revenue Accounting & Compliance fees 723,188 728,683 - - 723,188 728,683 744,000 -2.06% Developer Fees 1,474,755 1,680,329 - - 1,474,755 1,680,329 1,318,000 27.49% Partnership Management Fees 342,717 272,022 - - 342,717 272,022 266,000 2.26% Property Management Fees 1,738,291 1,753,187 - - 1,738,291 1,753,187 1,703,000 2.95% Grants & donations 1,093,164 1,031,500 - - 1,093,164 1,031,500 951,000 8.46% Other Income 57,034 30,000 28,000 25,097 85,034 55,097 248,000 -77.78% Total Other Operating Revenue: 5,429,149 5,495,721 28,000 25,097 5,457,149 5,520,818 5,230,000 5.56% Total Revenue: 5,429,149 - 5,397,951 - 12,357,350 12,424,716 17,786,499 17,822,667 17,134,000 4.02% Operating Expenses Administrative 1,074,332 1,143,349 819,136 861,108 1,893,468 2,004,457 2,218,000 -9.63% Accounting, Audit & Legal 50,200 46,310 438,694 465,244 488,894 511,554 522,000 -2.00% Admin - Dues and Subscriptions 17,438 18,709 8,758 10,176 26,196 28,885 12,000 140.71% Admin - General 156,035 191,188 183,715 169,174 339,750 360,362 370,000 -2.60% Admin - Training and Education 106,700 128,701 13,115 12,039 119,815 140,740 125,000 12.59% Bad Debt - 15,000 46,950 88,217 46,950 103,217 144,000 -28.32% Board Expense 10,200 14,100 - - 10,200 14,100 1,000 1310.00% CHH Occupancy Expense 364,913 386,670 - - 364,913 386,670 355,000 8.92% Consulting 219,496 181,000 33,140 23,776 252,636 204,776 480,000 -57.34% Miscellaneous Financial Expense 5,000 5,000 6,756 - 11,756 5,000 9,000 -44.44% Technology 119,350 156,672 85,533 90,025 204,884 246,697 200,000 23.35% Debt Service 49,100 58,088 2,583,538 2,212,318 2,632,638 2,270,406 2,729,000 -16.80% Leasing/Compliance Expense - 60,000 142,743 132,286 142,743 192,286 198,000 -2.89% Partnership Mgmt Fee Expense - - 182,639 156,042 182,639 156,042 184,000 -15.19% Payroll, Taxes and Benefits 5,129,805 5,689,659 1,776,471 1,873,560 6,906,276 7,563,219 6,820,000 10.90% Repair & Maintenance 54,634 25,200 1,639,542 1,827,092 1,694,176 1,852,292 1,753,000 5.66% Property Mgmt Fee Expense - - 1,110,573 1,119,142 1,110,573 1,119,142 1,114,000 0.46% Resident Activities 24,180 25,000 45,303 57,443 69,483 82,443 61,000 35.15% Taxes & Insurance 44,929 45,542 531,977 595,936 576,907 641,478 697,000 -7.97% Utilities - - 1,511,428 1,564,942 1,511,428 1,564,942 1,437,000 8.90% Total Operating Expenses: 6,365,484 7,046,838 10,343,351 10,399,870 16,720,331 17,446,707 17,211,000 1.37% Operating income/loss before reserves (947,831) - (1,648,887) - 2,013,998 2,024,846 1,066,167 375,959 (77,000) Reserve Contributions - - 573,838 567,383 573,838 567,383 578,896 -1.99% Net Operating income/loss (936,335) (1,648,887) 1,440,160 1,457,463 492,329 (191,424) (655,896) Non Operating Income/Loss Cash proceeds from Bonanza ------2,200,000 Contribution to opportunity fund - - - - (350,000) - (750,000) Rate lock payment ------(240,000) Transfer to general building fund ------(500,000) Non-operating surplus use - - - - - 200,000 - Total Non-operating - - - - (350,000) 200,000 710,000 Budgeted Cash flow (936,335) (1,648,887) 1,440,160 1,457,463 142,329 8,576 54,104

Note: The budget above represents those entities that are classified as blended component units for purposes of preparing audited financial statements. This primarily excludes active tax credit partnerships that still have a third party investor as well as the operating budgets for third party buildings. The net cash flow from those properties is maintained in separately controlled entities and cannot be used to fund general CHH operations. While the individual budgets for these entities are not included, the numbers above do include any fees that CHH earns or charges back to those properties (for example property management fees).

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SECTION 4: 4 Draft

Resolution 2020-05:

SECTION 8 SECTION SECTION SECTION Liberty Bank Safety Deposit Box Doors

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CHH Board Resolution 2020-05

Overview: Donating Liberty Bank Safety Deposit Box Doors to Community

Purpose: Obtain Board approval to donate Liberty Bank safety deposit box doors to community organization and members.

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?: Executive Committee via e-mail

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

General Description and Purpose: We have approximately 296 safety deposit box doors in our possession following the development of LBB. After speaking with our community partners, Chris reached out to the Northwest African American Museum to see if they’d like the doors. They declined but referred him to the Black Heritage Society of Washington, who agreed to accept 200 of the doors. Their plan is to inscribe the doors and distribute them to their patrons who would keep the doors on loan. This from the BHS: “we could consider accepting them and offering them as a keepsake gift for BHS Life Members or donors at a particular level. They would not be sold but would be a way to encourage members to be "history- keepers...the piece symbolizing "safe keeping" of our community history.” CHH would work with its community partners to distribute the remaining 96 doors to community members and staff who worked on or were connected to the LB or the LBB development.

Organizational requirements of resolution: Board concurrence required for the “donation of money, property or other assets belonging to the Program.”

Financial cost of the resolution: None.

Pros: Symbolically share history with community. Find purpose for security deposit box doors currently not in use.

Cons: None that we can think of.

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

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ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF THE CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION

RESOLUTION NO. 2020-05

Donating Liberty Bank Safety Deposit Box Doors to the Community

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

WHEREAS The purpose of the Program shall be to assist homeowners, property owners, residential tenants and residents of the Capitol Hill community in preserving, improving and restoring the quality of their homes, property and neighborhood, and to provide additional housing, cultural, social and economic opportunities and facilities; and

WHEREAS Article VII, Section 3.1.c. of the Charter (based on Seattle Municipal Code) requires Board concurrence for “The donation of money, property or other assets belonging to the Program”; and

WHEREAS Approximately 296 safety deposit box doors from the Liberty Bank are in the Program’s possession following the development of the Liberty Bank Building; and

WHEREAS Staff have reached out to multiple community partners to determine where the safety deposit box doors should go. The Black Heritage Society of Washington (BHS) has agreed to accept 200 of the doors. Their plan is to inscribe the doors and distribute them to their patrons who would keep the doors on loan. This from the BHS: we could consider accepting them and offering them as a keepsake gift for BHS Life Members or donors at a particular level. They would not be sold but would be a way to encourage members to be "history-keepers"...the piece symbolizing "safe keeping" of our community history.; and

WHEREAS Staff propose to follow a similar process with the remaining 96 doors, offering them to community partners and those who played a role in the development of LBB as “history-keepers.”

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NOW, THEREFORE, BE IT RESOLVED by the Board of the Capitol Hill Housing Improvement Program as follows:

(1) Authorize Staff to donate a portion of the obtained Liberty Bank safety deposit box doors to the Black Heritage Society of Washington to “safe-keep community history”.

(2) Authorize Staff to offer safety deposit box doors to other community partners and anyone who played a role in the development of LBB as “history-keepers”.

(3) Direct staff create and update an inventory of all safety deposit box doors to keep track of the effort.

CERTIFICATION

I, Derrick Belgarde, certify that I am the Secretary of Capitol Hill Housing Improvement Program (“the Program”) and that the foregoing Resolutions were duly adopted at a meeting of the Board of Directors of the Program held on the ______day of ______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 ______day of ______2020.

By______

Its Secretary

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SECTION 5: 5 February 2020

Finance Report,

SECTION 8 SECTION SECTION SECTION December Statements and Asset Management Report

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Page 24 of 72 FEBRUARY 2020 FINANCE & ASSET MANAGEMENT BOARD REPORT AND MINUTES

Finance & Asset Management Committee Members: Drew Porter, Frank Alvarado, Chasten Fulbright , Jill Cronauer

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 : February 4, 2020 – Malden conference room

Financial Position Summary: During December most of the significant fluctuations on the balance sheet were the result of routine monthly transactions and development related spending. Overall cash went up by $247K which was the 2019 fourth quarter foundation grant to CHH.

The unaudited operating statement through December 31, 2019 shows an operating deficit of $591K as compared to a budgeted surplus of $520K. The negative variance of $1.1M is a continuation of variances discussed in prior months, with vacancy and consulting expenses being two of the larger causes. December 2019 projected operating deficit went up to $656K after additional $40K of bad debts expense, while the actual deficit is $591K that leaves a variance of $65K favorable.

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

2020 Budget Review: Staff will discuss the 2020 budget drafts along with key assumptions. The main line items discussed last time were developer fees, vacancies, bad debts and potential staff additions. The main items to be discussed in December are changes from November draft budget. The items to discuss are Tenant rent adjustments, HUD buildings, Debt service decrease, payroll, vacancy and other expenses.

The committee reviewed the Property Management dashboard report

Vacancy loss: The monthly economic portfolio vacancy rate was 4.0% with a rolling 12-month economic vacancy percentage of 4.4%.

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

 2020 Budget update - Tenant rent adjustments, HUD buildings, Debt service decrease, payroll, vacancy and other expenses.  Ongoing Financial Audits with Clark Nuber  Impact line of credit discussion – CHP1, South Annex, Eldridge  South Annex land purchase  Staff noted that the first part of 12 th Avenue Arts New Markets Tax Credit unwind was completed as planned and will bring related resolution to the board.  Staff discussed round one Bond Cap – CHP1 did not get funding

Page 25 of 72 Capitol Hill Housing Blended Balance Sheet

12.31.2019 11.30.2019 Change from 12.31.2018 12.31.2017 unaudited unaudited prior month audited* audited*

Assets Unrestricted Cash 2,640,945 2,382,892 258,053 1 2,295,438 2,037,757 Accounts Receivable 1,270,855 1,155,773 115,082 2 1,023,384 811,476 Prepaids & Other Current Assets 400,834 395,879 4,955 362,070 341,351 Contributions/Grants Receivable 78,543 0 78,543 3 289,290 61,282 Due from Affiliates 7,576,098 7,378,998 197,100 4 7,077,021 5,193,026 Board Designated Operating Reserve 1,000,000 1,000,000 0 1,000,000 1,000,000 Board Designated Opportunity Reserve 773,568 770,911 2,657 244,931 567,083 Restricted Cash 5,484,009 5,487,440 (3,431) 6,937,674 6,135,901 Notes Receivable from Affiliates 29,260,819 29,260,819 0 15,313,542 15,322,710 Land 18,727,425 18,727,425 0 24,344,996 20,394,157 Buildings, Improvements & Equipment 79,459,126 78,900,412 558,714 5 80,945,459 74,146,986 Accumulated Depreciation (44,447,619) (44,253,620) (193,999) 6 (45,192,676) (39,304,834) Lease Receivable 737,566 717,137 20,429 792,137 817,531 Investment in LPs/LLCs 1,514,217 1,512,217 2,000 1,521,867 1,527,084 Other Assets 67,710 58,625 9,085 366 (5) Total Assets 104,544,096 103,494,908 1,049,188 96,955,499 89,051,505

Liabilities Notes Payable 60,117,926 60,194,011 (76,085) 7 65,103,914 58,479,561 Accrued Interest Payable 4,384,314 4,364,620 19,694 4,594,746 4,385,715 Accounts Payable & Accrued Liabilities 5,934,766 5,951,352 (16,586) 5,396,907 4,956,384 Tenant Security Deposit Liability 530,456 520,898 9,558 576,781 579,612 Total Liabilities 70,967,462 71,030,881 (63,419) 75,672,348 68,401,272

Net Position 33,576,634 32,464,027 1,112,607 21,283,151 20,650,233

Total Liabilities and Net Assets 104,544,096 103,494,908 1,049,188 96,955,499 89,051,505

* Internal presentation, certain amounts netted for audit presentation

Significant balance sheet changes from prior month 1) The following significant cash transactions decreased cash during the period: CHH received $246,750 of foundation quarter 4 grant in December 2019.

2) 12AA commercial rent recievables due to rent free period to the two new tenants. 3) EDI Africatown grant of $40K and campaign manager salary reimbursement grant of $40K. 4) Change due to timing fluctuation from due to/from affiliate balances. $197K net decrease for multiple development related expenses/reimbursements (mostly Bonanza). 5) Increase mostly due to multiple projects in CIP: $234K LBB comm leasehold improvement, $90K in 12AA tenant improvement, $130K CHP1 predev project

6) Routine monthly deprecation expense 7) Routine monthly loan amortization

Page 26 of 72 Capitol Hill Housing Improvement Program Statement of Revenues and Expenditures - Unaudited From 1/1/2019 Through 12/31/2019 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 10,389,573 10,481,789 (92,216) -0.88% 10,481,789 92,216 Commercial rent revenue 1,780,007 1,700,206 79,801 1 4.69% 1,700,206 (79,801) Vacancy Commercial rent revenue (190,222) 0 (190,222) 1 0.00% 0 190,222 Triple net revenue 261,255 277,800 (16,545) -5.96% 277,800 16,545 Parking, laundry and other 217,460 167,561 49,899 2 29.78% 167,561 (49,899) Res vacancy and concessions (582,717) (298,016) (284,701) 3 95.53% (298,016) 284,701 Total Tenant Rent 11,875,356 12,329,340 (453,984) -3.68% 12,329,340 453,984 Other Operating Revenue Accounting & Compliance fees 755,992 723,188 32,804 4.54% 723,188 (32,804) Developer Fees 1,378,217 1,474,755 (96,538) 4 -6.55% 1,474,755 96,538 Partnership Management Fees 324,048 342,717 (18,670) -5.45% 342,717 18,670 Property Management Fees 1,694,976 1,738,291 (43,315) -2.49% 1,738,291 43,315 Total Other Operating Revenue 4,153,233 4,278,951 (125,719) -2.94% 4,278,951 125,719 Other Revenue Grants & Donations 984,143 1,093,164 (109,021) 5 -9.97% 1,093,164 109,021 Interest Income 257,244 186,553 70,691 37.89% 186,553 (70,691) Other Income (non-operating) 35,126 61,274 (26,148) -42.67% 61,274 26,148 Total Other Revenue 1,276,513 1,340,991 (64,478) 77.12% 1,340,992 64,478 Total Revenue 17,305,102 17,949,282 (644,180) -3.59% 17,949,283 644,180 Expenses Accounting, Audit & Legal 553,991 488,902 (65,089) 6 -13.31% 488,902 (65,089) Administration 486,220 485,765 (455) -0.09% 485,765 (455) Bad Debt 107,305 46,942 (60,363) 7 -128.59% 46,942 (60,363) Board Expense 172 10,200 10,028 98.31% 10,200 10,028 CHH Occupancy Expense 374,767 364,913 (9,854) -2.70% 364,913 (9,854) Compliance, Taxes & License 340,274 322,120 (18,154) -5.64% 322,120 (18,154) Consulting 561,507 252,630 (308,877) 8 -122.26% 252,630 (308,877) Debt Service 2,677,168 2,703,529 26,361 0.98% 2,703,529 26,361 Insurance 369,598 319,286 (50,312) 9 -15.76% 319,286 (50,312) Leasing/Compliance Expense 211,015 142,746 (68,269) 10 -47.83% 142,746 (68,269) Miscellaneous Financial Expense 9,007 11,756 2,749 23.38% 11,756 2,749 Other Operating Expense 46,672 27,475 (19,197) -69.87% 27,475 (19,197) Partnership Mgmt Fee Expense 196,303 150,141 (46,162) 11 -30.75% 150,141 (46,162) Payroll, Taxes and Benefits 6,751,249 6,906,297 155,048 12 2.25% 6,906,297 155,048 Preventive Maintenance 485,592 406,568 (79,024) 13 -19.44% 406,568 (79,024) Property Mgmt Fee Expense 1,172,975 1,143,077 (29,898) -2.62% 1,143,077 (29,898) Repair and Maintenance 1,390,598 1,287,696 (102,902) 14 -7.99% 1,287,696 (102,902) Resident activities 64,399 69,428 5,029 7.24% 69,428 5,029 Technology 186,866 204,918 18,052 15 8.81% 204,918 18,052 Utilities 1,330,541 1,511,424 180,883 11.97% 1,511,424 180,883 Total Expenses 17,316,219 16,855,813 (460,406) (0) 16,855,813 (460,406) Operating Surplus (Deficit) B4 Reserves (11,117)0 1,093,4690 (1,104,586) -101.02% 1,093,4700 Reserve Contributions Replacement Reserve (484,553) (478,154) (6,399) 1.34% (478,154) 6,399 Operating Reserve (45,084) (45,088) 4 -0.01% (45,088) (4) Other Reserve (50,600) (50,600) 0 0.00% (50,600) 0 Total Reserve Contributions (580,237) (573,842) (6,395) 1.11% (573,842) 6,395

Operating Surplus (Deficit) (591,354)0 519,6270 (1,110,981) -213.80% 519,6280 Other Income (non-operating)0 0 0 0.00%0 Income/Loss (591,354)0 519,6270 (1,110,981) -213.80% 519,6280

Variance Discussion (Greater than $20K and 10%)

1) Variance is primarily due to the three vacant commercial spaces at 12AA. Two tenants signed leases that began in Oct 2019. The Fishbowl will not be leased as CHH will retain the unit.

Page 27 of 72 2) Tenant late fees and cleaning/damages are over budget - CHH typically does not budget for late fees or tenant charges 3) The following buildings have vacancies that significantly exceed budget: Bremer $11K variance Joe Black: $27K variance Hazel Plaza $18K variance John Carney: $17K variance Holden Vista $13K variance Brewster $14K variance Fleming $21K variance Centennial $12K variance Oleta $32K variance Helen V $11K variance Union James $36K variance 4) Fourth installment of Liberty bank developer fee for $116K budgeted in 2019 but will be paid in April 2020 after IRS Form 8609 is completed and submitted to IRS.

5) EcoD was understaff in most of 2019 which affected the total grant revenue. 6) $33K due to allocating 2018 audit costs to Descrete buildings. Expenses offset by revenue to CHH. 7) Multiple tenant write offs YTD including the following larger amounts: $14K Park Hill #7; $5.7K Union James #101; $9.5K Joe Black #14; $5.3K Joe Black #20; $9K Brewster #209; $6K Brewster #308; $5.9K Brewster #104; $4.7K Brewster #303; $8.6K Oleta #404 8) Over budget due to several reasons: CHH is paying 3rd party real estate development consultants for work on the Bonanza project and the market rate development projects (to date these amounts have exceeded budget). $127K to Skip Stone for Lake City feasibility and $108K to Structural Development Advisors for Bonanza consulting. In addition, CHH is also paying consultants for rebranding. 9) Insurance exceeds the budgeted amount. Insurance premiums increased for 2019 based on two factors: 1. Increased claims over the past two years 2. Update to schedule of replacement values was completed in 2019. 10) Over budget due to 3rd party compliance specialist assisting with vacancies in the property management department. 11) Harrison was able to pay more on land lease than budgeted, resulting in a $58K variance. 12) Variance due to vacant Associate Director of Real Estate, Vice President of Property Operations and Assistant Maintenance Tech positions, all of which were budgeted for a full year and were vacant for a majority of the first six months of the year (Assoc. Dir of Real Estate and Assistant Maintenance Tech started in April. VPPO started end of Sept). In addition, there have been multiple open site manager positions as turnover increased during the first half of 2019. 13) Majority of HVAC and Boiler budget is in the Repair and Maintenance section below 14) CHH completed a significant unit turn project in April/May to turn 26 units across the portfolio that had been vacant for long periods of time. Several of these turns required significant work, which has put them over budget year-to-date. $26K Union James #105 remodel in Nov. 15) Budgeted $40K through Nov for web site development that has not happened and likely will not in 2019.

Date: 2/3/2020, 4:58 PM Page 28 of 72 Page: 2 CHH CASH IN BANK FOR THE MONTH ENDING: Dec 2019

Bank Acct # CHH Blended Component Unit Type Balance Chase 025-858054-9 Larned Reserves 140,421 Chase 025-858063-0 412 Reserves 116,484 Total Chase 256,905 KeyBank 479681074833 Capitol Hill Housing Security Deposit 240,403 KeyBank 479681051187 Capitol Hill Housing - SoundFamilies Restricted Savings 12,831 KeyBank Hazel Plaza Reserves 232,702 KeyBank 471681012103 Hazel Plaza Security Deposit 3,398 KeyBank 479681168569 Larned Security Deposit 21,230 KeyBank 0054297114 Byron Wetmore Reserves 61,645 KeyBank 479681063869 Byron Wetmore Security Deposit 8,892 Key Bank 479681168536 412 Security Deposit 2,811 KeyBank Holden Vista Reserves 64,047 KeyBank Holden Vista Security Deposit 3,429 KeyBank Mary Ruth Manor Reserves 303,768 KeyBank 472559000626 Mary Ruth Manor Security Deposit 6,123 KeyBank 479681168544 EJSH Security Deposit 11,376 KeyBank 471689013145 Fleming Apts LP Security Deposit 20,365 KeyBank 471684001731 Gilman Court LP Reserves 110,794 KeyBank 471689007543 Gilman Court LP Security Deposit 19,566 KeyBank 479681072043 Villa Apts LP Reserves 218,079 KeyBank 471684008017 Villa Apts LP Security Deposit 41,535 KeyBank Harrison Security Deposit 19,807 KeyBank 479681168577 Oleta Security Deposit 21,042 Chase 1958047409 Oleta Reserves 40,905 KeyBank 471681008051 Helen V Apts LLC Reserves 326,166 KeyBank 471681008069 Helen V Apts LLC Security Deposit 8,138 KeyBank 12th Avenue Arts Master Tenant LLC Security Deposit 62,971 KeyBank 12th Avenue Arts Master Tenant LLC Reserves 27,657 Key Bank Union James Security Deposit 5,732 Key Bank Union James Reserves 95,924 Key Bank Lake City Security Deposit 6,045 Total KeyBank 1,997,382

Banner Berneva Reserves 15,700 Banner Seneca Reserves 149,536 Banner Seneca Security Deposit 20,094 Total Banner 185,330

LGIP Capitol Hill Housing Reserves 2,631,350 Total LGIP 2,631,350

Walker Dunlop EJSH Escrow 17,389 Walker Dunlop EJSH Reserves 119,553 Total Oppenheimer 136,942 Chase Harrison Reserves 175,831 Total Chase 175,831

BofA Fleming Apts LP Reserves 97,435 Total BofA 97,435

Heritage Union & 24th Commercial Security Deposit 2,834 Total Heritage 2,834

Total Restricted - CHH Blended Components 5,484,009

LGIP 00265 and 00266 Capitol Hill Housing Board Designated Reserves 1,773,568 Total Designated 1,773,568

Heritage Union & 24th Construction Commercial Construction 397 Heritage Union & 24th Construction Commercial Operating Checking 254,981 Total Heritage 255,378

UnionBank Capitol Hill Housing EQII 11,296 Total Union Bank 11,296 KeyBank 4222558441 Capitol Hill Housing EQII 7,314 Total KeyBank 7,314 KeyBank Capitol Hill Housing Gen Building Reserve 376,476 Total Gen Building Reserve 376,476 KeyBank 9838615640 Capitol Hill Housing HPN 238 Total HPN 238

KeyBank Capitol Hill Housing Payroll - KeyBank 24603865 Capitol Hill Housing Operating Checking 486,436 KeyBank 479681068736 Capitol Hill Dev. Assoc Operating Checking 2,765 KeyBank Capitol Hill Real Estate Mgmt Services Operating Checking 45,984 KeyBank Cash-Restricted Operating Checking 334,554 KeyBank 550229625 Hazel Plaza Operating Checking 55,837 KeyBank 479681168445 Larned Operating Checking 68,202 KeyBank 471681001080 Byron Wetmore Operating Checking 23,558 KeyBank 479681168411 412 Operating Checking 21,670 KeyBank Holden Vista Operating Checking 44,965 KeyBank 472551000103 Mary Ruth Manor Operating Checking 70,392 KeyBank 479681168429 EJSH Operating Checking 56,804 KeyBank 471681003060 Fleming Apts LP Operating Checking 50,143 KeyBank 472551000608 Gilman Court LP Operating Checking 92,296 KeyBank 471681002922 Villa Apts LP Operating Checking 67,093 KeyBank Harrison Operating Checking 85,654 KeyBank 479681168452 Oleta Operating Checking 40,290 KeyBank 471681008085 Helen V Apts LLC Operating Checking 127,982 KeyBank 12th Ave Arts Development Operating Checking 93,386 KeyBank 12AA Master Tenant LLC Operating Checking 68,239 KeyBank Union James Operating Checking 30,185 KeyBank Lake City Operating Checking 60,056 KeyBank Africa Town (Mid-town) Operating Checking 1,232 KeyBank Big Village Construction Operating Checking 373

Total KeyBank 1,928,096

Cash Various Petty Cash - CHHIP 100 Total Petty Cash 100

2/3/2020 4:27 PM M:\Finance & Accounting\@Secured\BoardPage 29 reports\2019\12.Dec\ of Dec 72 19 Cash report.xlsx Dec19 Page 1 of 2 CHH CASH IN BANK FOR THE MONTH ENDING: Dec 2019 Banner Berneva Operating Checking 1,273 Banner Seneca Operating Checking 62,233 Total Banner 63,506

Total Unrestricted - CHH Blended Components 2,642,404 Total All Cash - CHH Blended Components 9,899,981

Bank Acct # Discrete Component Unit Type Balance Chase 067-008897-3 Woodland Park Ave LLC Reserves 149,004 Chase AAA Security Deposit 5,754 Chase AAA Reserves 154,558 Chase AAA Escrow 7,750 Total Chase 317,067 KeyBank 479683006981 Broadway & Pine Reserves 244,553 KeyBank 479681076994 Broadway & Pine Security Deposit 22,376 KeyBank El Nor LP Security Deposit 8,459 KeyBank 471689017393 18th Ave Apartments Security Deposit 1,275 KeyBank Holiday Apts Security Deposit 20,900 KeyBank Jefferson & 12th Reserves 321,999 KeyBank Jefferson & 12th Security Deposit 30,542 KeyBank 479681064933 Pantages Apts LLC Security Deposit 25,515 KeyBank Ponderosa Security Deposit 2,352 KeyBank Silvian Security Deposit 6,361 KeyBank -783 SOPI / Unity Village Reserves 211,643 KeyBank 479683029421 SOPI / Unity Village Security Deposit 13,724 KeyBank Woodland Park Ave LLC Security Deposit 10,163 KeyBank 12th Avenue Arts Housing Security Deposit 67,275 KeyBank 12th Avenue Arts Housing Reserves 727,974 KeyBank 12th Avenue Arts Associates LLC 12AA HEDC Fee Reserve Account - KeyBank 12th Avenue Arts Associates LLC 12AA Key Fee Reserve Account - KeyBank CH TOD Station House Construction 147,798 Total KeyBank 1,862,909 UnionBank 153595024537 Holiday Reserves 220,923 Total UnionBank 220,923 US Bank 153595024537 Pantages Apts LLC Reserves 463,228 US Bank 153595019891 Silvian Reserves 574,396 Total USBank 1,037,624

Heritage Union & 24th Construction Residential Construction 31,961 Heritage Union & 24th Residential Reserves 210,842 Heritage Union & 24th Residential Security Deposit 34,632 Total Heritage 277,435

Wells Fargo Bonanza Construction 848,467 Wells Fargo Bonanza Construction CHH Loan 2,319,891 El Nor Reserves 13,750 18th Ave Reserves 2,250 Total Wells Fargo 3,168,357

Bellwether Union & 24th Escrow 87,921 Total Bellwether 87,921

Total Restricted - Discrete Components 6,972,236

Chase AAA Operating Checking 103,641 Total Chase 103,641

KeyBank El Nor LP Operating Checking 227,234 KeyBank 471681007566 18th Ave Apartments Operating Checking 26,351 KeyBank 479081033942 Pantages Apts LLC Operating Checking 25,050 KeyBank Silvian Operating Checking 273,242 KeyBank 479681076952 Broadway & Pine (BX) Operating Checking 42,726 KeyBank Woodland Park Ave LLC Operating Checking 27,153 KeyBank Holiday Apts Operating Checking 50,077 KeyBank 479681146219 SOPI / Unity Village Operating Checking 82,798 KeyBank Jefferson & 12th Operating Checking 49,813 KeyBank Ponderosa Operating Checking 96,413 KeyBank Twelfth Avenue Arts Res Operating Checking 196,099 KeyBank 12th Avenue Arts Associates LLC 12AA Commercial Operating (Debt Service) 83,136 Total KeyBank 1,180,092

Heritage Union & 24th Residential Operating Checking 233,303 Total Heritage 233,303

Total Unrestricted - Discrete Components 1,517,036 Total All Cash - Discrete Components 8,489,272 Total All Cash - CHH Blended Components 9,899,981 Total All Cash 18,389,253

TOTALS BY BANK Key Bank $ 7,344,954 Chase $ 860,757 Banner $ 248,836 US Bank $ 1,037,624 Union Bank $ 232,219 Bank of America $ 97,435 Heritage $ 768,950 Bellwether $ 87,921 Wells Fargo $ 3,168,357 LGIP $ 4,404,919 Other and Petty $ 137,280 TOTAL CASH $ 18,389,253

2/3/2020 4:27 PM M:\Finance & Accounting\@Secured\BoardPage 30 reports\2019\12.Dec\ of Dec 72 19 Cash report.xlsx Dec19 Page 2 of 2 Capitol Hill Housing Asset Management Dashboard Year to Date at December 31, 2019 A/R A/R Physical Vacancy Op Rev Per Unit Op Exp Per Unit Cash Flow Per Unit (1) Resident Resident Portion 12-Month (at month end) YTD YTD YTD Portion $ %(3) Rolling Avg. (4) Economic Vacancy Vacant Vacancy Total Budget Budget Budget Make Total Dec. 12 MO 2018 Dec. 2019 Building Units % Units Actual Var % Actual Var % Actual Var % Ready Days Vacant 2019 Rolling Vacancy Byron Wetmore 12 11,964 1% 11,318 -7% (34) -118% 6,540 54% 0 60 0.0% 1.1% 0.0% Elizabeth James 2 3.3% 60 10,683 2% 7,813 -5% (336) -169% 22,096 41% 88 238 4.2% 2.9% 2.5% Four Twelve 1 8.3% 12 18,389 15% 13,483 -17% (500) -198% 5,068 12% 0.3% 1.0% 5.0% Hazel Plaza 1 6.3% 16 25,321 -6% 9,298 10% 6,875 -10% 3,890 11% 88 137 8.7% 6.8% 1.9% Joe Black Apartments 3 12.5% 24 12,886 -10% 12,474 -19% (1,076) -149% 1,854 6% 33 171 11.2% 13.3% 12.7% Mary Ruth Manor 20 24,668 -3% 10,257 2% 5,494 -2% 15,878 37% 0.0% 2.4% 4.5% Union James 4 16.7% 24 16,672 -10% 22,608 -125% (11,564) -398% 11,484 29% 167 194 17.1% 14.6% 5.8% Jacob Total 11 6.5% 168 15,554 -3% 11,680 -24% (655) -126% 66,810 26% 94 171 6.1% 6.5% 4.6% Eighteenth Avenue (5) 7 9,152 26% 4,067 0% 3,746 919% 1,155 7% 0.0% 0.0% 6.0% El Nor (5) 46 7,144 35% 1,800 51% 4,655 2026% 1,099 1% 0.1% 0.0% 2.1% Helen V 3 7.9% 38 18,471 0% 7,095 24% 7,075 40% 18,821 32% 234 246 3.3% 5.5% 4.4% Holden Vista 2 12.5% 16 13,909 -6% 11,779 -2% 581 -68% 795 4% 159 156 13.4% 12.2% 2.4% Holiday 1 3.3% 30 11,814 -4% 7,755 -7% (270) -140% 3,706 13% 72 131 3.0% 3.8% 0.4% Park Hill 30 15,070 -3% 11,526 -16% 1,493 -56% 30,605 81% 112 44 0.0% 3.1% 2.1% Ponderosa (5) 21 7,333 71% 3,012 12% 4,230 660% 3,260 9% 0.0% 0.0% 3.9% Silvian 1 3.1% 32 14,939 -2% 8,317 18% 2,652 97% 53 0% 147 159 3.4% 2.6% 4.2% Unity Village 3 10.0% 30 10,203 -7% 9,143 3% 577 -44% 943 4% 71 108 14.3% 9.4% 5.4% Lynn Total 10 4.0% 250 12,247 3% 7,006 9% 2,985 71% 60,437 18% 115 114 3.3% 4.5% 3.3% Berneva 12 9,156 -8% 10,473 -18% (2,426)-174463% 514 5% 154 168 18.8% 8.7% 0.8% Brewster 3 8.6% 35 8,538 -12% 8,430 -20% (1,531) -241% (3,596) -13% 18 51 9.0% 7.8% 3.8% Broadway Crossing 44 10,379 -4% 8,287 3% 486 -20% 845 2% 15 77 0.0% 3.9% 3.2% Haines AAA 30 13,753 19% 7,011 10% 3,960 281% 504 1% 9 104 0.4% 1.9% 3.8% Jefferson Housing 40 13,453 -3% 8,720 -1% (280) -219% 5,312 12% 18 76 2.6% 3.0% 4.2% Oleta 34 8,924 -11% 7,675 -13% (2,050) -2104% 3,919 14% 18 82 3.8% 13.6% 8.4% Pantages 3 6.1% 49 10,448 -1% 8,587 -5% (279) -229% 727 2% 15 56 5.1% 3.6% 3.3% Twelfth Avenue Arts 1 1.1% 88 12,519 2% 8,254 -38% 1,905 2% 13,048 15% 23 37 1.1% 1.8% 1.7% Nelda Total 7 2.1% 332 11,244 -1% 8,291 -11% 393 -54% 21,273 7% 26 63 3.1% 4.3% 3.4% Boylston Howell 1 3.3% 30 11,330 -4% 9,237 -8% 2 -100% 3,647 13% 28 39 2.6% 3.6% 1.3% Bremer 2 4.1% 49 9,260 -4% 7,037 -9% (176) -118% 2,493 6% 33 66 2.7% 6.4% 5.9% Centennial 2 6.7% 30 11,632 -9% 7,941 -16% (245) -114% 3,262 11% 41 85 4.5% 7.5% 6.3% Devonshire 4 6.5% 62 9,713 -2% 7,365 1% 465 -30% 10,391 21% 85 127 5.0% 4.2% 2.7% Fleming 1 2.8% 36 9,239 -6% 7,871 -21% (1,287) -279% 3,954 13% 51 122 2.8% 8.0% 4.0% Fremont Solstice 18 11,833 1% 8,470 -1% (195) -261% 744 4% 0 100 0.0% 2.3% 2.4% Gilman Court 1 4.0% 25 13,277 2% 9,927 9% 1,739 123% 1,985 9% 45 60 3.8% 0.6% 0.0% John Carney 3 11.1% 27 9,124 3% 8,915 -28% (1,312) -448% 1,517 6% 25 130 8.9% 9.4% 1.1% Larned 33 10,855 0% 7,243 5% 2,994 15% 6,948 36% 37 124 0.0% 3.3% 2.3% Melrose 1 3.3% 30 9,207 -4% 6,172 3% 1,579 -18% 11,477 48% 30 130 4.2% 4.0% 3.5% Villa 4 6.5% 62 12,270 -2% 8,074 3% 89 -77% 26,103 57% 67 81 7.4% 3.1% 1.0% Skye Total 19 4.7% 402 10,607 -3% 7,876 -4% 305 -69% 72,522 22% 44 98 4.2% 4.8% 3.0% Broadway 5 14,015 2% 8,650 6% 2,528 42% - 0% 0.0% 0.0% 0.0% Burke Gilman Gardens 15 13,916 2% 10,249 -3% 1,638 -3% 3,534 20% 21 33 0.0% 1.0% 5.6% Four Ten (5) 1 50,504 -22% 47,320 9% (24,413) -971% (402) -10% 0 0 0.0% 6.8% 5.6% Fredonia 1 8.3% 12 28,097 4% 15,159 10% 6,331 67% (25) 0% 5.5% 0.6% 1.7% Harrison at 15th 19 21,326 2% 15,037 -20% (1,746) -495% 712 3% 17 34 0.2% 0.5% 0.0% Liberty Bank Building (4) 4 3.5% 115 9,450 4% 10,278 -104% 2,633 -3% 84,880 76% 3.8% 1.6% 1.7% Lincoln Court 2 6.9% 29 10,381 0% 7,080 -9% (502) -1664% 3,090 13% 22 109 5.6% 2.9% 2.2% Maxwell 4 12,356 0% 8,763 1% 2,055 8% 1,102 27% 0.0% 0.0% 0.0% Miller Park 12 12,281 -7% 8,376 13% 1,172 36% 1,861 15% 14 186 0.0% 6.7% 2.6% Seneca 1 3.1% 32 11,278 -1% 8,346 1% 52 -95% 6,177 20% 26 36 3.0% 1.0% 1.3% Squire Park Plaza 2 3.3% 60 19,708 -4% 8,202 1% 3,080 -22% 14,989 18% 17 54 6.3% 3.8% 3.3% Valencia Total 10 3.3% 304 13,815 0% 9,849 -26% 1,818 -20% 115,917 35% 18 69 3.9% 2.3% 2.4% Portfolio Total 57 3.9% 1456 12,274 -1% 8,672 -11% 990 -35% 336,959 21% 46 90 4.0% 4.4% 3.3% Blended Portfolio 42 5.0% 846 12,628 -3% 9,198 -8% 298 -81% 205,693 23% 59 102 4.8% 5.4% Discrete Portfolio 15 2.5% 610 11,784 2% 7,943 -15% 1,951 31% 131,266 19% 27 72 3.0% 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) Certificate of Occupancy for Liberty Bank Building was issued on 3/11/2019. Fully occupied at the end of April and first included in the May 2019 Dashboard. 6) Vacancies at these properties have been removed due unit offline status related to "Bonanza" and the pending disposition of the 410

Explanation of select properties with high vacancies or large vacancy increases: Berneva - two vacancies in December (one is a 2-brd). One was leased in early January and the other has late January pending leases. Brewster - three vacancies in December. Two were leased in early January. Joe Black - three vacancies in December; two 3-bdr and one 2-bdr units with higher rents. Two units have pending January/February leases. Holden Vista - two vacancies in December (a 3-bdr and a 2-bdr) both with late January pending leases. Union James - four vacancies in December (all 2-bdr units). Two units required deep rehab. One unit has January pending lease. Unity Village - five vacancies in December (four 2-bdr units and one 1-bdr unit). One 2-bdr was leased early in December.

Page 31 of 72 M:\Asset Management\AM - General Asset Management\Reporting\December-2019-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 January February March April May June July August September October November December -1,000,000 Total Receivables as a % of monthly 45.0% GPR 40.0% 110% Self Sufficiency Ratio 35.0% 105% 30.0% 100% 25.0% 95% 20.0% 90% 15.0% 85% 10.0% 80% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019

Leverage Ratio Days Operating Cash

4.00 65 3.75 3.50 60 3.25 3.00 55 2.75 50 2.50 2.25 45 2.00 40 35 30 Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

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

Page 32 of 72

SECTION 6: 6 Resolution 2020-03:

12th Ave Arts

SECTION 8 SECTION SECTION SECTION New Markets Tax Credit Financing Unwind

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Page 34 of 72

CHH Board Resolution 2020-03

Overview: Authorizing 12th Ave Arts New Markets Tax Credit Unwind Actions

Purpose: This resolution will execute loan forgiveness for the 12th Ave Arts QLICI loans held by CHHIP, reconvey the deeds of trust securing those loans, and dissolve the Investment Funds of which CHHIP is the sole member of.

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?: The resolution was still being drafted at the time of the most recent FAM meeting, but the purpose of the resolution was discussed at the 2/4/20 meeting.

Charter or Rules and Regulations Modification: o Does this Resolution change the Charter or Rules and Regulations? ☐ Yes ☒ No

General description and purpose: The seven-year compliance period for the New Markets Tax Credits (NMTC) that helped finance the commercial portion of 12th Avenue Arts has ended. As part of the exit, the NMTC investors exercised the “put” and now CHHIP is currently the sole member of the KeyBank and NDC NMTC Investment Funds. The Investment Funds are the holders of the Qualified Low-Income Community Investment (QLICI) Loans (loans made to 12th Avenue Arts Associates LLC) and are beneficiaries of the deeds of trust securing the QLICI Loan. This resolution will execute loan forgiveness, reconvey the deeds of trust, and dissolve the Investment Funds. This is similar to the investor exits in our Low-Income Housing Tax Credit partnerships, where the investor exits at the end of the compliance period and having received the full benefits of their investments.

Organizational requirements of resolution: This resolution along with resolutions before CH Development Association and Twelfth Avenue Arts Association will complete the unwind of the NMTC transaction and simplify the reporting structure by eliminating entities.

Financial cost of the resolution: Legal fees.

Pros: The unwinding of the NMTC entities and the related loan forgiveness was anticipated in the original deal structure and is the expected conclusion of the transaction. It makes management of the commercial condo simpler and more efficient.

Cons: None identified.

Further Board Action or Reporting: o Is further action required from the Board or a Board Committee? ☒ Yes ☐ No If yes, please describe: CH Development Association has a companion resolution and Twelfth Avenue Arts Association will have related resolutions. o Is further reporting required to the Board or a Board Committee? ☐ Yes ☒ No

Page 35 of 72 RESOLUTIONS OF THE BOARD OF DIRECTORS OF CAPITOL HILL HOUSING IMPROVEMENT PROGRAM

Resolution 2020-03

(REGARDING UNWIND OF NEW MARKETS TAX CREDIT FINANCING)

The Board of Directors of Capitol Hill Housing Improvements Program, a Washington public corporation (the “Corporation”), at a meeting held on February 10, 2020, at which a quorum was continuously present, adopted the following resolutions, which are now in full force and effect, and have not been modified or rescinded in any manner.

BACKGROUND

WHEREAS, CHHIP participated in the financing of the construction of a commercial space and a parking garage located at 1620 12th Avenue, Seattle, WA (the “Project”) using New Markets Tax Credits (“NMTC Financing”) under Section 45D of the Internal Revenue Code of 1986, as amended (the “Code”);

WHEREAS, the NMTC Financing requires a seven (7) year compliance period (“Compliance Period”) during which the QLICI Loan (as hereinafter defined) must remain outstanding. The Compliance Period ended on or about December 28, 2019 and the NMTC Financing was unwound on January 2, 2020 (the “Unwind Date”);

WHEREAS, in furtherance of the Project and to enable the Project to benefit from the NMTC Financing, Twelfth Avenue Arts Development LLC, a Washington limited liability company (the “Leverage Lender”) made (i) a $7,926,840 loan (“Fund I Loan”) to 12th Avenue Arts NMTC Investment Fund LLC (“Fund I”), pursuant to that certain Loan and Security Agreement with Fund I, dated December 28, 2012 (“Leverage Loan I Agreement”), and as evidenced by that certain Promissory Note dated December 28, 2012 in the amount of $7,926,840 (“Leverage Loan I Note”) and (ii) a $4,870,600 loan (“Fund II Loan” and, together with the Fund Loan, the “Leverage Loans”) to 12th Avenue Arts NMTC Investment Fund II LLC (“Fund II” and together with Fund I, the “Investment Funds”), pursuant to that certain Fund Loan and Security Agreement with Fund II dated as of December 28, 2012 (the “Leverage Loan II Agreement” together with the Leverage Loan I Agreement, the “Leverage Loan Agreements”), and as evidenced by that certain Promissory Note dated December 28, 2012, in the principal amount of $4,870,600 (“Leverage Loan II Note” and together with Leverage Loan I Note, the “Leverage Loan Notes”);

WHEREAS, Fund I and Fund II utilized the proceeds of the Leverage Loans to make equity investments in NDC New Markets Investments LXXVII, LLC (“NDC Lender”) and Key Community Development New Markets V LLC (“Key Lender” together with NDC Lender, the “QLICI Lenders”), and the QLICI Lenders each made a "qualified low-income community

CAPITOL HILL HOUSING IMPROVEMENTS PROGRAM PAGE 1 RESOLUTIONS Page 36 of 72 investment" loan (as defined in Section 45D of the Code) (collectively, the “QLICI Loan”) to 12th Avenue Arts Associates LLC (“QALICB”) as financing for the Project. The Key Lender QLICI Loan is evidenced by a $11,231,000 promissory note, and the NDC Lender is evidenced by a $6,720,000, each executed by QALICB in favor of QLICI Lenders (collectively, the “QLICI Loan Notes”). To secure QALICB’s obligations under the QLICI Loan, QALICB executed several deeds of trust encumbering the Project for the benefit of QLICI Lenders (collectively, the “QLICI Mortgage”);

WHEREAS, on the Unwind Date, the QLICI Lenders redeemed the Investment Funds’ interest in each QLICI Lender, and as consideration therefor, QLICI Lenders assigned all right, title, and interest in and under the QLICI Loan, the QLICI Loan Notes, and QLICI Mortgage to the Investment Funds;

WHEREAS, Key Community Development Corporation (“Key Investor”) is the sole member of the Investment Funds, and on the Unwind Date, the Corporation acquired Key Investor’s membership interests in both Investment Funds. As a result, the Corporation (as sole member of the Investment Funds) is the indirect holder of the QLICI Loan Notes and indirect beneficiary of the QLICI Mortgage;

WHEREAS, the Corporation desires to enter into a Loan Satisfaction Agreement with the Leverage Lender pursuant to which the outstanding amount of the Leverage Loans shall be forgiven in full, the Leverage Loan Agreements shall be terminated, and the Leverage Loan Notes shall be cancelled and/or returned (as applicable) (the “Leverage Loan Satisfaction Agreement”);

WHEREAS, the Corporation desires to forgive QALICB’s indebtedness under the QLICI Loan and reconvey the QLICI Mortgage. In connection therewith, the Corporation (as sole member of the Investment Funds, desires to enter into a Loan Satisfaction Agreement with the QALICB, pursuant to which the outstanding amount of the QLICI Loan shall be forgiven in full, the QLICI Loan Agreements shall be terminated, and the QLICI Loan Notes shall be cancelled and/or returned, and the deeds of trust securing the QLICI Loans shall be reconveyed (as applicable) (the “QLICI Loan Satisfaction Agreement” and together with the Leverage Loan Satisfaction Agreement, the “Loan Satisfaction Agreements”);

WHEREAS, subsequent to the execution and delivery of the Loan Satisfaction Agreements and the performance of all obligations arising thereunder, the Corporation desires to prepare and submit for filing with the Secretary of State of the State of Ohio a Certificate of Dissolution for Fund I and a Certificate of Dissolution for Fund II pursuant to which the Investment Funds will be dissolved (“Investment Funds Cancellation”);

CAPITOL HILL HOUSING IMPROVEMENTS PROGRAM PAGE 2 RESOLUTIONS Page 37 of 72 RESOLUTIONS

NOW, THEREFORE, IT IS RESOLVED, that the following Resolutions be, and hereby are, adopted by the Board of Directors of the Corporation:

The Corporation hereby reaffirms its commitment to and authorization of the above- referenced actions on behalf of the Corporation and on behalf of Fund I and Fund II, and in connection therewith, the Board of Directors authorizes the Corporation to take the following actions (collectively, the “Corporate Actions”):

1. To negotiate, execute, and deliver the Loan Satisfaction Agreements; 2. To reconvey the QLICI Mortgage; 3. To dissolve and wind up the activities of Fund I and Fund II, and in connection therewith, file the Investment Funds Cancellation with the Secretary of State of the State of Ohio; and 4. to do all things, and execute and deliver any and all agreements, documents, certificates, and authorizations, which may be necessary, convenient or advisable to accomplish all of the Corporate Actions and to retain, authorize and instruct their attorneys and other consultants in regard to the foregoing

Christopher Persons as CEO of the Corporation, is authorized to negotiate and determine the specific terms and conditions of each of the Corporate Actions, as he determines would be reasonable and in the best interests of the Corporation.

Christopher Persons as CEO of the Corporation, be, and hereby is, authorized to execute any and all documents and take all other actions authorized herein on behalf of the Corporation.

The Corporation hereby ratifies any documents previously executed on behalf of the Corporation and Development, in regard to the Corporate Actions; and further ratifies all actions taken prior to date of this resolution in regard to the Corporate Actions.

(Signature page follows)

CAPITOL HILL HOUSING IMPROVEMENTS PROGRAM PAGE 3 RESOLUTIONS Page 38 of 72 CERTIFICATION

I, ______, certify that I am the ______of Capitol Hill Housing Improvements Program, a Washington public corporation (“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 Articles of Incorporation and Bylaws of the Corporation upon proper notice and at which time a quorum was present.

IN WITNESS WHEREOF: I have hereunto set my hand this ______day of ______, 2020.

By: Name: Title:

CAPITOL HILL HOUSING IMPROVEMENTS PROGRAM PAGE 4 RESOLUTIONS Page 39 of 72

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SECTION 7: 7 Resolution 2020-04:

CHP1 Additional

SECTION 8 SECTION SECTION SECTION Predevelopment Financing Authority

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CHH Board Resolution 2020-04: CHP1 Additional Predevelopment Spending

Overview: CHH desires to increase authorization for predevelopment spending from $300,000 up to $800,000. CHH also desires to apply for a predevelopment loan or line of credit of up to $800,000 to fund predevelopment.

Purpose: CHP1 is a 4-building portfolio rehab that includes Bremer, John Carney, Boylston Howell, and Centennial. The increase in spending will allow CHP1 to cover predevelopment expenses including design, engineering, permit, consultant fees, pre-closing expenses. CHP1 is working to secure construction permits and secure the remaining funding in order to close.

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?: Property Development Committee in November

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: Authorization for increased in spending will allow CHP1 to cover predevelopment expenses including design, engineering, permit, consultant fees, pre-closing expenses. CHP1 is working to secure construction permits and secure the remaining funding in order to close. In addition, we will also have authorization to secure a predevelopment loan or line of credit to fund predevelopment. All interest and loan expenses would be paid by the project at construction closing.

Organizational requirements of resolution: None

Financial cost of the resolution: No

Pros: Provide us working capital to get through predevelopment.

Cons: The typical rehab challenges of managing a large renovation.

Further Board Action or Reporting: o Is further action required from the Board or a Board Committee? ☐ Yes ☒ No If yes, please describe: o Is further reporting required to the Board or a Board Committee? ☐ Yes ☒ No If yes, please describe: The project will be reviewed periodically by PDC

Page 43 of 72 SUPPLEMENTAL RESOLUTION ADOPTED AT A MEETING OF THE BOARD OF DIRECTORS OF CAPITOL HILL HOUSING IMPROVEMENT PROGRAM, A WASHINGTON PUBLIC CORPORATION (CH Portfolio 1)

RESOLUTION 2020-04

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

WHEREAS, CHH adopted Resolution 2018-09 dated June 11, 2018, a copy of which is attached hereto (the “Original Resolution”), with respect to its participation in the development and rehabilitation of the Property. Capitalized terms not defined herein shall have the meanings set forth in the Original Resolution.

WHEREAS, CHH desires to increase the amount of funds that CHH is authorized to advance for predevelopment costs from $300,000 to up to $800,000 which funds shall be reimbursed to CHH upon the closing of the financing.

WHEREAS, in furtherance of the development and rehabilitation of the Property, CHH desires to apply for a loan or a line of credit in the approximate amount of $800,000 for predevelopment expenses (the “Predevelopment Loan”) from Impact Capital (the “Lender”) or any other approved lender;

WHEREAS, CHH may be required to guaranty the Predevelopment Loan;

WHEREAS, the board of directors of CHH deems it in the best interest of CHH to take all actions as may be necessary to obtain the Predevelopment Loan including but not limited to the execution and delivery of such documents as may be reasonably required and to take such actions as are necessary to consummate the Predevelopment Loan, including but not limited to executing and delivering all promissory notes, and other loan documents (the “Loan Documents”) for the purpose of evidencing and securing repayment of the indebtedness to Lender and the performance of the obligations under the Loan Documents.

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

RESOLUTIONS

1. RESOLVED, that CHH is authorized, empowered and directed to advance funds to be used for predevelopment costs in an amount not to exceed $800,000, which funds shall be reimbursed upon the closing of the financing, as described in the Original Resolution.

2. RESOLVED, that CHH is authorized to take all actions to apply for and to consummate the Predevelopment Loan such actions including but not limited to the execution and delivery of the Loan Documents for the purpose of evidencing and securing repayment of the indebtedness to Lender and the performance of the obligations under the Loan Documents.

3. FURTHER RESOLVED that CHH in its capacity as a public corporation is authorized, empowered and directed to execute and deliver such guaranties and indemnities as may be required to consummate the Predevelopment Loan.

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4. FURTHER RESOLVED that any and all documents which may be required to be executed and delivered by CHH for purposes of closing the Predevelopment Loan are authorized to be executed or taken by any one of the following individuals or their duly appointed successors (the “Authorized Representatives”):

Name: Title:

Robert Schwartz Chair

Shalimar Gonzales Vice Chair

Drew Porter Vice Chair

Frank F. Alvarado III Treasurer

Derrick Belgarde Secretary

Christopher Persons Chief Executive Officer

5. 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.

2 Page 45 of 72

CERTIFICATE

I, ______, certify that I am the ______of Capitol Hill Housing Improvement Program (“CHH”) 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:______Name: ______Title: ______

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SECTION 8: 8 Consent Agenda

and Attachments

SECTION 8 SECTION SECTION SECTION

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CAPITOL HILL HOUSING PDA BOARD Regular Meeting February 10, 2020 5:30-7:30 PM 12th Ave Arts Pike Pine Meeting Room 1620 12th Avenue, Seattle

CONSENT ITEMS

MINUTES AND REPORTS

1. January 2020 Draft Board Meeting Minutes (attached for adoption) 2. Committee Reports and Minutes (attached for acceptance) a. CHH Foundation Public Policy Agenda (attached for acceptance)

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

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REGULAR BOARD MEETING MINUTES Pike-Pine Room 1620 12th Avenue, Seattle

January 13, 2020

Members Present: Frank F. Alvarado III, Derrick Belgarde, Paul Breckenridge (via phone), Jill Cronauer, Sara Cubillos, Bob Fikso, Shalimar Gonzales (via phone), Cathy Hillenbrand, b.g. Nabors-Glass (via phone), Drew Porter, Robert Schwartz (via phone), Eric Snow

Members Absent: Rachel Ben-Shmuel, Chasten Fulbright, George Staggers

Staff Members Present: Michelle Canizio, Valencia Chambers Manora, Robyn Dhatt, Muhammadou Drammeh, Jill Fleming, Greg Gibson, Brad Lange, Chris Persons, Josh Okrent, Laura Orella, Michael Seiwerath, Jessica Sherwin, Sarah Shoemake-Gamble (taking Minutes), Yiling Wong

Foundation Board: Sue Cary, Deirdre Doyle, Cassandra Mitchell (via phone)

The meeting was called to order by Drew Porter at 5:34 pm.

Disclosures & Recusals: None.

A motion to approve the Consent Agenda was made by Frank Alvarado, seconded by Cathy Hillenbrand, and passed unanimously.

Public Comment: None.

Presentation and Discussion

Foundation Check Presentation: Michael reported on the annual fundraising for both the Rise Together capital campaign and the Foundation. The Foundation Board then presented a giant foam-core check to the PDA Board totaling the annual fundraising for the organization of $780,000.

Rebrand Activity – Taglines: Yiling provided context for this point in the rebrand process. Michael shared the top tagline options and led an activity to determine the Board member’s preferred options. There was discussion on which taglines best fit the organization. Leadership Staff will make the final decision on the tagline, based on this input and input from other community and staff exercises. At upcoming Foundation and PDA Board meetings, draft logos will be reviewed.

Page 50 of 72

Presentation and Discussion (continued)

Draft Budget: Muhammadou and Greg presented the draft budget for 2020, which will be presented for Board approval at the February Board Meeting. Board members shared concerns about the budgeted vacancy rate, given the recent high rates and rent increases.

Executive Committee

Board Development Considerations: Chris shared an update on a potential candidate for the PDA Board, which is meeting with staff and Executive Team members in the coming weeks. Board members shared support for the candidate.

Resolution 2020-02: Pre-Suit Notice of Tort Claims: Drew reviewed the resolution which was recommended by our PDA Attorneys at Pacifica Law Group. The Resolution formalizes a procedure which reduces risk in the event that someone seeks to file a tort claim.

A motion to approve the Resolution 2020-02: Pre-Suit Notice of Tort Claims was made by Bob Fikso, seconded by Cathy Hillenbrand, and passed unanimously.

Finance and Asset Management

Financial Summary: Frank presented the Finance and Asset Management Committee regular report and dashboard through November 2019.

A motion to approve the January Finance and Asset Management Report was made by Eric Snow, seconded by Cathy Hillenbrand, and passed unanimously.

410 Update: Brad gave an update on the status of the 410 property.

Property Operations

Michelle updated the Board on the Station House lease up. She noted that we received over 1,300 responses on the online form with 220 appointments scheduled so far. Move-ins will start in March and go through June. The Board wanted to know about outreach in multiple languages. Materials were translated into Amharic, English, Simplified Chinese, Somali, Spanish, and Vietnamese. Board members asked about outreach for potential applicants who do not have internet access to fill out the form. Michelle explained that we worked with multiple library systems to ensure as much access to the form as possible. Board members also inquired about the plan for follow up with respondents who will not get an appointment, and Michelle said that if an email address was provided they will receive an email next week. Also, the website will be updated as we move through the lease-up process to help keep potential applicants in the know. Board members requested that the Resident Communications Tracking spreadsheet be updated.

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The meeting was adjourned by Robert Schwartz at 7:12 pm.

Attested,

______Derrick Belgarde, Secretary February 10, 2020

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February 2020 PROPERTY MANAGEMENT COMMITTEE BOARD REPORT AND MINUTES

Property Management Committee Members: b.g. Nabors-Glass, Chasten Fulbright, Derrick Belgarde, Felicia Cross

Staff Liaisons to the Board: Michelle Canizio, Terra Walsh, Ashley Thomas, Noah Wernstedt-Lynch (BOLD indicates those members in attendance)

Date, time and location of meeting: February 4, 2020 -3:00 –4:00 PM Malden Conference Room Date, time and location of next meeting: March 3, 2020 -3:00 -4:00 PM Malden Conference

December AM dashboard: • Monthly physical vacancy was 3.7% • Monthly economic vacancy was 4.5% • 12-month rolling economic vacancy rate was 4.4%

We’ve excluded the Bonanza projects altogether and excluded one vacancy at the 410.

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Explanation of select properties with high vacancies or large vacancy increases: • Berneva - two vacancies in December (one is a 2-brd). One was leased in early January and the other has late January pending leases. • Brewster - three vacancies in December. Two were leased in early January. • Joe Black - three vacancies in December; two 3-bdr and one 2-bdr units with higher rents. Two units have pending January/February leases. • Holden Vista - two vacancies in December (a 3-bdr and a 2-bdr) both with late January pending leases. • Union James - four vacancies in December (all 2-bdr units). Two units required deep rehab. One unit has January pending lease. • Unity Village - five vacancies in December (four 2-bdr units and one 1-bdr unit). One 2-bdr was leased early in December.

Portfolio Vacancy Rate w/o Bonanza 5.0%

4.5%

4.0%

3.5%

3.0%

2.5%

2.0% Vacancy Rate Vacancy 1.5%

1.0%

0.5%

0.0%

Date

2

Page 54 of 72 Resident Services February Board Report

2019 Annual Program Data • 1583 Total Service Touches o Community Events – 539 residents attended a community-building event in their property o Resource Referrals – Resident Services Coordinators provided 705 resource referrals to social services. The most common referrals were Rental Assistance, Employment Assistance, Utility Assistance, Food Assistance, and Transportation o Non-Referral Services – 207 one:one meetings between Resident Services Coordinators and residents. These meetings were to provide support to residents in following up on service referrals, fielding PM or Maintenance complaints, and supporting residents with conflict.

CHH Rental Assistance Program December Data • 10 Residents applied for Rental Assistance • 0 Residents attended Financial Fitness Workshop • 6 Residents accessed other Financial Education resources (financial health check with banker, webinar, or meeting with financial counselor) • 9 residents had a service referral meeting with an RSC • 7 residents received Rental Assistance

Rental Assistance Program

$40,000 $35,776 $35,000 $30,000 $25,941.33 $24,041.33 $25,000 $21,491.33 $18,952.33 $20,000 $16,552.33 $4,111.33$3,500 $14,252.33 $15,000 $11,902.33 $12,403.33 $9,622.33 $10,000 $8,111.33 $5,446 $4,292 $4,000 $611.33 $5,000 $1,900 $2,550 $2,539 $2,400 $2,300 $2,350 $2,280 $2,219 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Funds Awarded Balance

3

Page 55 of 72 Resident Services December Program Data: • 59 Total Service Referrals • 6 Total Resource Line Contacts • Top 5 Organizations residents were referred to: Byrd Barr Place, Seattle Art Museum, Salvation Army, Catholic Community Services, St Vincent De Paul • Top 5 buildings for service referrals: Helen V, Larned, Broadway Crossing, Liberty Bank Building, and Miller Park

4

Page 56 of 72 Capitol Hill Housing Asset Management Dashboard Year to Date at December 31, 2019 A/R A/R Physical Vacancy Op Rev Per Unit Op Exp Per Unit Cash Flow Per Unit (1) Resident Resident Portion 12-Month (at month end) YTD YTD YTD Portion $ %(3) Rolling Avg. (4) Economic Vacancy Vacant Vacancy Total Budget Budget Budget Make Total Dec. 12 MO 2018 Dec. 2019 Building Units % Units Actual Var % Actual Var % Actual Var % Ready Days Vacant 2019 Rolling Vacancy Byron Wetmore 12 11,964 1% 11,318 -7% (34) -118% 6,540 54% 0 60 0.0% 1.1% 0.0% Elizabeth James 2 3.3% 60 10,683 2% 7,813 -5% (336) -169% 22,096 41% 88 238 4.2% 2.9% 2.5% Four Twelve 1 8.3% 12 18,389 15% 13,483 -17% (500) -198% 5,068 12% 0.3% 1.0% 5.0% Hazel Plaza 1 6.3% 16 25,321 -6% 9,298 10% 6,875 -10% 3,890 11% 88 137 8.7% 6.8% 1.9% Joe Black Apartments 3 12.5% 24 12,886 -10% 12,474 -19% (1,076) -149% 1,854 6% 33 171 11.2% 13.3% 12.7% Mary Ruth Manor 20 24,668 -3% 10,257 2% 5,494 -2% 15,878 37% 0.0% 2.4% 4.5% Union James 4 16.7% 24 16,672 -10% 22,608 -125% (11,564) -398% 11,484 29% 167 194 17.1% 14.6% 5.8% Jacob Total 11 6.5% 168 15,554 -3% 11,680 -24% (655) -126% 66,810 26% 94 171 6.1% 6.5% 4.6% Eighteenth Avenue (5) 7 9,152 26% 4,067 0% 3,746 919% 1,155 7% 0.0% 0.0% 6.0% El Nor (5) 46 7,144 35% 1,800 51% 4,655 2026% 1,099 1% 0.1% 0.0% 2.1% Helen V 3 7.9% 38 18,471 0% 7,095 24% 7,075 40% 18,821 32% 234 246 3.3% 5.5% 4.4% Holden Vista 2 12.5% 16 13,909 -6% 11,779 -2% 581 -68% 795 4% 159 156 13.4% 12.2% 2.4% Holiday 1 3.3% 30 11,814 -4% 7,755 -7% (270) -140% 3,706 13% 72 131 3.0% 3.8% 0.4% Park Hill 30 15,070 -3% 11,526 -16% 1,493 -56% 30,605 81% 112 44 0.0% 3.1% 2.1% Ponderosa (5) 21 7,333 71% 3,012 12% 4,230 660% 3,260 9% 0.0% 0.0% 3.9% Silvian 1 3.1% 32 14,939 -2% 8,317 18% 2,652 97% 53 0% 147 159 3.4% 2.6% 4.2% Unity Village 3 10.0% 30 10,203 -7% 9,143 3% 577 -44% 943 4% 71 108 14.3% 9.4% 5.4% Lynn Total 10 4.0% 250 12,247 3% 7,006 9% 2,985 71% 60,437 18% 115 114 3.3% 4.5% 3.3% Berneva 12 9,156 -8% 10,473 -18% (2,426)-174463% 514 5% 154 168 18.8% 8.7% 0.8% Brewster 3 8.6% 35 8,538 -12% 8,430 -20% (1,531) -241% (3,596) -13% 18 51 9.0% 7.8% 3.8% Broadway Crossing 44 10,379 -4% 8,287 3% 486 -20% 845 2% 15 77 0.0% 3.9% 3.2% Haines AAA 30 13,753 19% 7,011 10% 3,960 281% 504 1% 9 104 0.4% 1.9% 3.8% Jefferson Housing 40 13,453 -3% 8,720 -1% (280) -219% 5,312 12% 18 76 2.6% 3.0% 4.2% Oleta 34 8,924 -11% 7,675 -13% (2,050) -2104% 3,919 14% 18 82 3.8% 13.6% 8.4% Pantages 3 6.1% 49 10,448 -1% 8,587 -5% (279) -229% 727 2% 15 56 5.1% 3.6% 3.3% Twelfth Avenue Arts 1 1.1% 88 12,519 2% 8,254 -38% 87 -95% 13,048 15% 23 37 1.1% 1.8% 1.7% Nelda Total 7 2.1% 332 11,244 -1% 8,291 -11% (89) -110% 21,273 7% 26 63 3.1% 4.3% 3.4% Boylston Howell 1 3.3% 30 11,330 -4% 9,237 -8% 2 -100% 3,647 13% 28 39 2.6% 3.6% 1.3% Bremer 2 4.1% 49 9,260 -4% 7,037 -9% (176) -118% 2,493 6% 33 66 2.7% 6.4% 5.9% Centennial 2 6.7% 30 11,632 -9% 7,941 -16% (245) -114% 3,262 11% 41 85 4.5% 7.5% 6.3% Devonshire 4 6.5% 62 9,713 -2% 7,365 1% 465 -30% 10,391 21% 85 127 5.0% 4.2% 2.7% Fleming 1 2.8% 36 9,239 -6% 7,871 -21% (1,287) -279% 3,954 13% 51 122 2.8% 8.0% 4.0% Fremont Solstice 18 11,833 1% 8,470 -1% (195) -261% 744 4% 0 100 0.0% 2.3% 2.4% Gilman Court 1 4.0% 25 13,277 2% 9,927 9% 1,739 123% 1,985 9% 45 60 3.8% 0.6% 0.0% John Carney 3 11.1% 27 9,124 3% 8,915 -28% (1,312) -448% 1,517 6% 25 130 8.9% 9.4% 1.1% Larned 33 10,855 0% 7,243 5% 2,994 15% 6,948 36% 37 124 0.0% 3.3% 2.3% Melrose 1 3.3% 30 9,207 -4% 6,172 3% 1,579 -18% 11,477 48% 30 130 4.2% 4.0% 3.5% Villa 4 6.5% 62 12,270 -2% 8,074 3% 89 -77% 26,103 57% 67 81 7.4% 3.1% 1.0% Skye Total 19 4.7% 402 10,607 -3% 7,876 -4% 305 -69% 72,522 22% 44 98 4.2% 4.8% 3.0% Broadway 5 14,015 2% 8,650 6% 2,528 42% - 0% 0.0% 0.0% 0.0% Burke Gilman Gardens 15 13,916 2% 10,249 -3% 1,638 -3% 3,534 20% 21 33 0.0% 1.0% 5.6% Four Ten (5) 1 50,504 -22% 47,320 9% (24,413) -971% (402) -10% 0 0 0.0% 6.8% 5.6% Fredonia 1 8.3% 12 28,097 4% 15,159 10% 6,331 67% (25) 0% 5.5% 0.6% 1.7% Harrison at 15th 19 21,326 2% 15,037 -20% (1,746) -495% 712 3% 17 34 0.2% 0.5% 0.0% Liberty Bank Building (4) 4 3.5% 115 9,450 4% 10,278 -104% 2,633 -3% 84,880 76% 3.8% 1.6% 1.7% Lincoln Court 2 6.9% 29 10,381 0% 7,080 -9% (502) -1664% 3,090 13% 22 109 5.6% 2.9% 2.2% Maxwell 4 12,356 0% 8,763 1% 2,055 8% 1,102 27% 0.0% 0.0% 0.0% Miller Park 12 12,281 -7% 8,376 13% 1,172 36% 1,861 15% 14 186 0.0% 6.7% 2.6% Seneca 1 3.1% 32 11,278 -1% 8,346 1% 52 -95% 6,177 20% 26 36 3.0% 1.0% 1.3% Squire Park Plaza 2 3.3% 60 19,708 -4% 8,202 1% 3,080 -22% 14,989 18% 17 54 6.3% 3.8% 3.3% Valencia Total 10 3.3% 304 13,815 0% 9,849 -26% 1,818 -20% 115,917 35% 18 69 3.9% 2.3% 2.4% Portfolio Total 57 3.9% 1456 12,274 -1% 8,672 -11% 881 -42% 336,959 21% 46 90 4.0% 4.4% 3.3% Blended Portfolio 42 5.0% 846 12,628 -3% 9,198 -8% 298 -81% 205,693 23% 59 102 4.8% 5.4% Discrete Portfolio 15 2.5% 610 11,784 2% 7,943 -15% 1,689 14% 131,266 19% 27 72 3.0% 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) Certificate of Occupancy for Liberty Bank Building was issued on 3/11/2019. Fully occupied at the end of April and first included in the May 2019 Dashboard. 6) Vacancies at these properties have been removed due unit offline status related to "Bonanza" and the pending disposition of the 410

Explanation of select properties with high vacancies or large vacancy increases: Berneva - two vacancies in December (one is a 2-brd). One was leased in early January and the other has late January pending leases. Brewster - three vacancies in December. Two were leased in early January. Joe Black - three vacancies in December; two 3-bdr and one 2-bdr units with higher rents. Two units have pending January/February leases. Holden Vista - two vacancies in December (a 3-bdr and a 2-bdr) both with late January pending leases. Union James - four vacancies in December (all 2-bdr units). Two units required deep rehab. One unit has January pending lease. Unity Village - five vacancies in December (four 2-bdr units and one 1-bdr unit). One 2-bdr was leased early in December.

Page 57 of 72 M:\Asset Management\AM - General Asset Management\Reporting\December-2019-AM dashboard.xlsx Monthly Economic and Physical Vacancy Rate: January 2019 - December 2019 6.0% 5.3% 5.2% 5.0% 4.0% 3.8% 4.8% 4.0%

4.0% 3.9% 3.0% 3.3%

2.0% Economic Vacancy Rate

1.0% Physical Vacancy Rate

0.0% 1/31/2019 2/28/2019 3/31/2019 4/30/2019 5/31/2019 6/30/2019 7/31/2019 8/31/2019 9/30/2019 10/31/2019 11/30/2019 12/31/2019

Monthly Economic Vacancy Comparison: 2017 - Present 6.0% 2017 Vacancy 2018 Vacancy 2019 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

Page 58 of 72 M:\Asset Management\AM - General Asset Management\Reporting\December-2019-AM dashboard.xlsx

FEBRUARY 2020 FUNDRAISING AND COMMUNICATIONS MEMORANDUM

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

Grants and Donations

In the last four weeks: • The CHH Foundation was notified: o Hugh & Jane Ferguson Foundation approved our LOI and invited us to submit a full proposal around $25,000 for the EcoDistrict. o Byron & Alice Lockwood Foundation declined our LOI for $40,000 for the Annual Fund. • The CHH Foundation submitted: o An invited proposal to the TEW Foundation requesting $25,000 to support Resident Services and $75,000 to support Rise Together – see below. o A first-time invited proposal to Horizon House to support organizational capacity. o A profile to the Foster Foundation, which is under review to determine if we will be invited to submit a grant application.

Upcoming proposals include: • Muckleshoot Community Foundation – $5,000 for Resident Services – due Feb 15 • Windermere Foundation -- $5,000 for Resident Services – due Feb 15 • Moccasin Lake Foundation – $10,000 for EcoDistrict – due Feb 15 • Enterprise Community Partners Housing Affordability Challenge – Round 1 proposal around the Union & 14th middle income housing project for $2M grand prize – due Feb 19 • Seattle Dept of Neighborhoods Community Partnership Fund – $50,000 for EcoDistrict – due Feb 25 • American Family Insurance Foundation -- $10,000 for Annual Fund – due Feb 27 • Hugh & Jane Ferguson Foundation – $25,000 for EcoDistrict – due Feb 28 • JP Morgan Chase – for Annual Fund – target proposal by Feb 28 • Wells Fargo – for Annual Fund – target proposal by Feb 28 • Heritage Bank – for Annual Fund – target proposal by Feb 28 • Union Bank – for Annual Fund – target proposal by Feb 28 • Washington Federal Foundation – for Annual Fund – target proposal by Feb 28 • Banner Bank – for Annual Fund– target proposal by Feb 28 • KeyBank – for Annual Fund focused on Resident Services – target proposal by Feb 28 • Foster Foundation – for Annual Fund focused on Resident Services – if invited to apply • Dupar Foundation – $5,000 for Annual Fund – due Mar 1 • Tulallip Tribes Charitable Fund – $3,000 for Annual Fund – due Mar 1

Rise Together Capital Campaign Rise Together received a pledge from Microsoft in January for $2.5 million supporting the affordable housing projects in the campaign! This is an unprecedented level of corporate support for all of the partner organizations. This brings Rise Together campaign’s current total raised to $12,653,352 against a $20M goal for the end of 2020, and a $25M overall campaign goal.

Page 59 of 72 Grant proposals recently won: • Microsoft pledged $2,500,000 to support Rise Together affordable housing projects.

Grant proposals recently submitted: • Rise Together submitted an invited $75,000 proposal to TEW Foundation to support GenPRIDE capacity-building around the LGBTQ-Affirming Senior Housing project. • GenPRIDE submitted a $1,000,000 request to the state capital budget to support the service and nonprofit office space within the LGBTQ-Affirming Senior Housing project. • Byrd Barr Place submitted a $2,000,000 request to the state capital budget to support the renovation of Fire Station 23. • Byrd Barr Place submitted a $150,000 proposal to the National Trust for Historic Preservation to support the renovation of Fire Station 23.

Grant proposals still pending: • Byrd Barr Place submitted a $500,000 proposal to the Norcliffe Foundation to support the renovation of Fire Station 23.

Grant proposals recently declined: • Seattle Foundation declined our proposal to their Nonprofit Effectiveness program for $75,000 to build the capacity of our POC-led partner organizations.

Events The date for Top of the Town 2020 has been set. Please mark your calendars for the evening of Thursday May 7 at the Hotel Sorrento. Board members with an interest in sponsoring the event, or those who have connections with organizations that may be interested, should be in touch with Laura Orella [email protected]. To date, $50,000 in sponsorship has been secured.

Karen Fredriksen Goldsen will be the keynote speaker. Karen is the national leader of the landmark study Aging with Pride: National Health, Aging, and Sexuality/Gender Study. She started this national organization, Aging with Pride, and the related LGBTQ+ National Aging Research Center. On Capitol Hill she started GenPRIDE, our partner in the future LGBTQ Senior Housing project that will be built on Broadway.

The Capitol Hill Housing Foundation has contracted Grace Rooney to serve as our Event Coordinator for Omnivorous once again.

Communications

Rebrand Update In early January we shared a list of top 6 potential taglines with staff leadership and then via facilitated discussion including the PDA and CHHF board members on January 13th. Based on this feedback, we conducted a poll of all CHH staff and Rise Together partners of the top three. Leadership is currently in process to select a tagline based on the top two identified from these forums.

In late January, Communications facilitated discussions of four potential logo designs in black and white at the CHHF board meeting (PDA board members invited) after earlier dialogue from the Rebrand Crosscut Group, E-Team and the Executive Committee of the PDA Board. Based on these discussions,

Page 60 of 72 our consultants will bring a second and final round of logos with color, to be shared February 10 with board members and the same week with staff via survey.

Next Steps: • Logo, look, and feel set (late Feb.) • Rollout implementation schedule (in progress) • Branding style guide (March) • Website launch & public announcement phase (date TBD)

The website launch is anticipated to coincide with a more public announcement of the name in early 2020. Planning is also actively underway. Pyramid presented and has received initial feedback on their web content strategy recommendations and wireframes for the website. We have also provided initial input to Pyramid to inform their proposed rollout implementation plan. Other Communications Deliverables: Communications is thrilled to have collaborated across CHH teams for a successful rollout of the Station House Lease-up effort in early January. We continue fielding media and community member queries on the status of applications while working closely with Property Operations to ensure any updates set reasonable expectations with the public as staff diligently determine eligibility for the many applicants.

The team also delivered our e-newsletter update focusing on 2020 Visioning to our 3,000+ subscribers; finalized 2020 work planning with the CHHF board, fielded numerous media inquiries, and worked with the HR training manager to identify key deliverables to support in refreshing CHH’s new employee orientation.

January Media Mentions of CHH or CHH projects

Date Article Title Outlet Essential List of Influential People: From Paul Allen to Pramila Jayapal: 13 people

1/1/2020 who shaped the Seattle area Seattle Times

1/3/2020 10 Biggest Seattle Restaurant Openings to Watch in 2020 (So Far) Eater Seattle

1/7/2020 PCC will replace New Seasons in 23rd and Union grocery plans — UPDATE Central District real estate project 'an excellent move for the black community' Puget Sound

1/14/2020 (Video) Business Journal Microsoft ups its affordable-housing initiative to $750M, announces more funding Puget Sound

1/15/2020 allocations Business Journal

1/15/2020 One Year Later: Increasing Our Commitment to Affordable Housing Microsoft Blog Puget Sound

1/15/2020 Plans for more than 750 Seattle apartment units have surfaced Business Journal

1/17/2020 Capitol Hill Housing planning mass timber apartment building on E Union CHS Blog Seattle PI/ Komo

1/17/2020 Here's where Microsoft's $250 million for affordable housing is going News Daily Journal of

1/29/2020 Tour Station House on Capitol Hill Commerce

1/29/2020 More than 1,300 apply for 110 affordable apartments above Capitol Hill Station CHS Blog

1/31/2020 ‘Swanktuary city’: No vacancy in Seattle, except at the top Seattle Times After criticism for route that included riding on sidewalk, city rolls out new plan for E

1/31/2020 Union ‘parking protected bike lanes’ CHS Blog

Page 61 of 72

2019 and 2020 Capitol Hill Housing Budget and Actuals Updated 2.4.2020

Unrestricted Budget:

Income Source 2019 Goal 2019 Actual 2020 Goal 2020 Actual % to Goal Government $ 12,500 $ 2,650 $ 21,250 $ - 0.0% Foundation $ 257,788 $ 127,847 $ 206,616 $ 66,000 31.9% Corporate $ 190,000 $ 331,168 $ 187,200 $ 10,000 5.3% Individual $ 210,000 $ 302,446 $ 277,000 $ 133,084 48.0% Events & Sponsorships $ 234,000 $ 215,270 $ 246,000 $ 88,000 35.8% TOTAL $ 904,288 $ 979,381 $ 938,066 $ 297,084 31.7%

Restricted Budget:

Income Source 2019 Goal 2019 Actual 2020 Goal 2020 Actual % to Goal

Government $ 0 $ 22,500 $ - $ - Foundation $ 20,000 $ 43,259 $ - $ - Corporate $ 0 $ - $ - $ - Individual $ 25,000 $ 25,000 $ 25,000 $ - Events & Sponsorships $ 0 $ - $ - $ - TOTAL $ 45,000 $ 90,759 $ 25,000 $ -

Combined Budget:

Income Source 2019 Goal 2019 Actual 2020 Goal 2020 Actual % to Goal Government $ 12,500 $ 25,150 $ 21,250 $ - 0.0% Foundation $ 277,788 $ 171,106 $ 206,616 $ 66,000 31.9% Corporate $ 190,000 $ 331,168 $ 187,000 $ 10,000 5.3% Individual $ 235,000 $ 327,466 $ 302,000 $ 133,084 44.1% Events & Sponsorships $ 234,000 $ 215,270 $ 246,000 $ 88,000 35.8% TOTAL $ 949,288 $ 1,070,160 $ 962,866 $ 297,084 30.9%

Page 62 of 72

FEBRUARY 2020 PROPERTY DEVELOPMENT BOARD REPORT AND MINUTES

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

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: February 4th, 2020 – 3:30-4:30 pm – Via teleconference Date, time and location of next meeting: March 3rd, 2020 – 3:30-4:30 pm – Belmont Conference Room

Board Action in February:

CHP-1 increase predevelopment spending and obtain predevelopment financing.

Active Project Updates/Discussion:

Bond Cap Issue: The board reviewed property development’s draft memo outlining the bond cap issue and discussed potential strategies. Eric Snow had some ideas of how to present the scoring in a way that should make sense. The memo will be reworked to explain better how bonds work and will be included in the board packet in March.

Risk Analysis: The board reviewed the updated risk analysis matrix and provided feedback. The main take away is to add more about the community projects so that there is a better balance between financing risk and high priority community project.

Potential Pipeline Discussion:

Lake City: CHH has been selected by the Mennonite Church next week as a potential development partner. The board discussed the larger strategy CHH has in the neighborhood.

Per RCW 42.30.110(g), the CHH 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.

Page 63 of 72

FEBRUARY 2020 CAPITOL HILL ECODISTRICT BOARD REPORT

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

Staff Liaison to the Board: Donna Moodie

Date, time, and location of next meeting: February 14, 9am, Pike Pine Room

The Community Development Committee last met on March 21st, 2019. During the following months, the Capitol Hill EcoDistrict continued to advance projects despite experiencing staff transitions. Since August, two permanent project leads continue to move the work forward, and Michael Seiwerath has served as acting Executive Director of the Capitol Hill EcoDistrict.

EcoDistrict Updates • The EcoDistrict is happy to welcome its new Executive Director, Donna Moodie. Donna has spent much of her initial weeks reaching out to stakeholders to introduce herself. She has received a very informative handoff from Michael and connects regularly with Chris and Michael. She met with Muhammadou on Wednesday to review CHH and EcoDistrict budgets. She intends to focus on clarifying the message of EcoDistrict and finding new sources for funding. • Akeyla Jimerson is the lead project manager for Lowell Elementary School, Homeless Outreach Services, and Neighbours Alley. Lowell is in the process of planning a school Base Health Center for students and families. Akeyla also sits on the Advisory Board of the Capitol Hill Business Alliance and represents the EcoDistrict at the Pike Pine Urban Neighborhood Council (the neighborhood Land Use Review Committee). • Erin Fried is the lead project manager for Public Life Planning, establishing a Pesticide-Free Cal Anderson Park, the Employee Housing and Commute Survey, and the Arts Stabilization Fund. • Michael Seiwerath and Erin Fried are discussing the greater integration of the Arts District into EcoDistrict work. • Matthew Benedict of the EcoDistrict Steering Committee is lead project manager for EcoDistrict certification, which is moving toward completion.

EcoDistrict Fundraising: Donna met with Neelima on Monday to introduce herself and confirm the Bullitt Foundation’s commitment to the EcoDistrict. Donna assured Neelima that we have not lost sight of our environmental mission. She emphasized that new leadership brings a new sense of enthusiasm to our mission. She shared that she was warmly welcomed by the EcoDistrict staff and they plan to continue their engagement with the community, supporting each other when needed and investigating new sources of funding.

Generally speaking, regarding fundraising, Donna has spent time familiarizing herself with the nuances of the EcoDistrict and plans to initiate some foundational work towards the end of February.

EcoDistrict Report February 2020 Page 1 of 2 Page 64 of 72

Public Life Plan: In January, EcoDistrict staff reviewed draft analyses on Observational Counts conducted in November with funding from the Department of Neighborhoods and a qualitative study of public space conducted last summer with funding from Scan|Design. Final reports will be published in February. The EcoDistrict is also in the process of assembling an advisory committee to direct community engagement in support of Public Life Planning.

Lowell Elementary School-Based Health Center: The EcoDistrict staff received a contract extension until June 2020 to complete a final business plan and to solidify partnerships in support of a temporary-to- permanent school-based health center set to open in fall 2020.

EcoDistrict Steering Committee: There have been a few changes to the Steering Committee. The current membership:

Name Affiliation Alicia Daniels Uhlig International Living Future Institute Cathy Hillenbrand* Capitol Hill Housing Board of Directors Chasten Fulbright* (co-chair) Blanton Turner Christina Arrington GSBA / Capitol Hill Business Alliance Egan Orion Seattle PrideFest/Broadway Business Improvement Area Janet Shull City of Seattle, Office of Planning & Community Development Jenny Cooper Northwest School Josh Morris* Seattle Audubon Julia Buchans Seattle Central College Leon Garnett Byrd Barr Place Matthew Benedict Kaiser Permanente/CBRE Matthew Combe Seattle 2030 District May So Mithun Michael Gilbride University of Washington, Integrated Design Lab Michael Mariano* Schemata Workshop Michelle Caulfield City of Seattle, Office of Sustainability and the Environment Natalie Bicknell Central Seattle Greenways Neelima Shah Bullitt Foundation Whitney Fraser* (co-chair) Capitol Hill Champion/Seattle Dyke March Yolanda Cieters Seattle University

Please join the next EcoDistrict Steering Committee meeting on February 14 at 9am in the Pike Pine room.

EcoDistrict Report February 2020 Page 2 of 2 Page 65 of 72

FEBRUARY 2020 EXECUTIVE COMMITTEE BOARD REPORT AND MINUTES

Executive Committee Members: Robert Schwartz (Chair), Shalimar Gonzales (Vice Chair), Frank Alvarado (Treasurer), Derrick Belgarde (Secretary), Cathy Hillenbrand (Immediate Past Chair), Drew Porter (Vice Chair II)

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

Date, time and location of meeting: Monday, January 27, 2020 - 5-6:30pm - Belmont Conference Room Date, time and location of next meeting: Monday, February 24, 2020 - 5-6:30pm - Belmont Conference Room

Minutes Meeting began at 5:04 pm

1) Lead Items a) Rebrand i) Logos: The Committee reviewed the top four logos and shared their opinions. The logos will be reviewed with an activity in black and white at the Foundation Board Meeting tomorrow, where PDA Board members are invited. Color logos will be reviewed at the February Board Meeting, again inviting Foundation Board Members to attend and participate.

ii) Taglines: The Committee also reviewed the results from the tagline feedback and gave Chris some final input before Staff make the decision.

b) Board Development: Chris presented options for the Executive Committee makeup to be put into effect after the upcoming elections in April. Chris is meeting with the top candidates to join the Committee. The goal is that by the February Executive Committee, the structure and candidate will be confirmed to then be presented to the full Board for feedback at the March Board Meeting and voted on at the April Board Meeting.

c) Charter and Rules & Regulations Updates: Chris noted that the organization’s charter is signed by the Mayor. Staff and our PDA lawyers are in the process of reviewing and making proposed updates to both documents. This will be introduced at the February Board Meeting with line edits coming to the Executive Committee at their February meeting.

d) Bond Cap Crisis: The Committee was updated on the current bond cap crisis. Chris reminded Committee members of how the bond process usually works and the changes. He gave an overview of the impact on our pipeline and strategies for moving forward. Chris has meetings with staff and external partners in the coming weeks to determine the best way to tackle this issue. This will also be discussed at the February Board Meeting. A full presentation on the projected financial impacts of CHH will be prepared for the March Board meeting.

CHH Executive Committee February 2020 Page 1 of 2 Page 66 of 72

2) External Relations, Community Programs, Board Issues a) CEO Annual Evaluation: Chris shared this year’s and next year’s CEO and staff review process. The CEO review will include a 360 survey, a detailed workplan from Chris and a written report by the Executive Committee to share with the full Board.

b) February Board meeting: Chris reviewed the draft agenda for the February meeting. There will be an activity regarding color logos. The Board development changes and opportunities will be reviewed with the full Board. Finance staff will present the final budget and the December financials. There will be a resolution regarding the unwinding of the new markets tax credits for 12th Ave Arts and a companion resolution for CHDA to review. Staff will share updates on property management operations. It was also suggested that staff explain the role of the Executive Committee and the Officers at the meeting, since those roles are in transition.

c) Neighborworks Achieving Excellence Program: Chris updated the Committee on the mentoring and training program first mentioned at the December Board meeting as a development opportunity for Chris. The application is open and will be due in a few months. Chris plans to apply.

d) Board Communications: It was determined that the Board Secretary will be included on the list of recipients of the public board email address. Sarah will connect with IT about options to accomplish this plan.

3) Asset Management a) Update on the 410: Chris gave an update on the status of resident relocation at the 410.

Meeting ended at 6:41 pm.

CHH Executive Committee February 2020 Page 2 of 2 Page 67 of 72

FEBRUARY 2020 JOINT BOARD DEVELOPMENT COMMITTEE BOARD REPORT AND MINUTES

Joint Board Development Committee Members: Margaret Pak Enslow (Foundation Secretary), Shalimar Gonzales - Committee Chair (PDA Vice Chair), Alice Quaintance (Former PDA Member), Randy Robinson (Foundation Member)

Staff Liaisons to the Board: Greg Gibson, Michelle Lambert, Michael Seiwerath, Sarah Shoemake- Gamble

Date, time and location of meeting: January 22, 2020 – 4:00-5:00pm – Belmont Conference Room Date, time and location of next meeting: March 25, 2020 – 4:00-5:00pm – Belmont Conference Room

Meeting began at 4:02 pm.

1. Review Committee Charter – To start the first meeting of the new year, Shalimar reviewed the Committee’s Charter to remind the group of our areas of focus and goals.

2. Racial Equity Task Force (RETF) – Greg and Michelle updated the Committee on the RETF work and the newly formed Committees, reminding the group that the full RETF meets every other week and the RETF Committees meet every other week on the off weeks. Greg noted that there is a separate department in budget for the RETF in 2020, including 20% of our new Training Manager’s time, consulting costs and training. He noted that the RETF has worked extensively with other staff to create the 2020 strategic plan. The Committee asked about communication with the full staff. Greg and Michelle mentioned they are working on better messaging to the rest of the staff, figuring out how to involve more members and to create a shared language so that staff feel comfortable bringing up concerns. The Committee discussed various metrics and data sets the RETF could use to quantify success, while keeping in mind that this topic is not easily measured. The Committee also discussed the role of the RETF regarding staff, board and resident culture, noting that more time and resources are needed for further work.

3. Public Policy Agenda – Michael reviewed the CHH Foundation Public Policy Agenda, noting the procedure for approval is new this year. The document was created by staff, is now being brought to the JBDC for review, will be discussed and approved by the Foundation Board, and will then be included in the consent agenda at February PDA Board Meeting. Shalimar suggested pointing out the “recently resolved or downgraded” policy items on the agenda, as they are examples of collaborative successes that should be celebrated. She also suggested that if there are actions the Board members can take, we tie the document to the requested action. Michael mentioned that Housing Advocacy Day is on Monday, February 3rd and we will have a small representation there. He will share talking points with the Board members to use when the are in Olympia.

4. Board Engagement a. Trainings – Staff scheduled quarterly trainings for both Boards throughout the year. The first happened on January 23rd on tax credits. b. Foundation Board – Staff are working with potential Foundation Board candidates. c. PDA – Staff are working with potential PDA Board candidates.

Meeting closed at 5:03pm.

Page 68 of 72 FOR INTERNAL USE ONLY

Public Policy Agenda - 2020

Capitol Hill Housing (CHH) builds vibrant and engaged communities, and to accomplish this work must engage with public policies. This public policy agenda was created by staff and has been approved by senior management. As issues can change quickly, senior management may add or remove issues as needed.

NEIGHBORHOOD ISSUES

CHH works on a multitude of neighborhood issues, largely on Capitol Hill (CH). There are too many to include in this document, but key issues are listed here.

Ensure Municipal Support for a Public Life Plan for Capitol Hill and Other Neighborhoods CH is the only center city neighborhood that lacks a recently developed neighborhood plan. As more people come to live and work in our center city neighborhoods, as Imagine Greater Downtown moves forward, as we explore congestion pricing and lidding I-5, and major institutions prepare for redevelopment of their campuses, Capitol Hill lacks the tools to respond to these challenges. The community deserves a thriving public realm to ensure the livability of a denser CH and Seattle of the future. CHH and the EcoDistrict will advocate for the resources needed to implement a public life plan in 2021. Key decision makers: OPCD, SDOT and DON Priority: High Staff Lead: Erin Fried Staff Second: Capitol Hill EcoDistrict Exec Dir

Secure Pesticide Free Park Designation for Cal Anderson Park Parks are well-used public spaces that should be accessible and contribute positively to public health. In 2017, CHH initiated conversations with the Seattle Department of Parks and Recreation, Cal Anderson Park Alliance, and Seattle Parks Foundation to explore the designation of Cal Anderson Park as a Pesticide-Free Park. The City of Seattle has not designated a new Pesticide-Free Park in over a decade. Reviving the designation will make Cal Anderson the most prominent park in Seattle to go pesticide-free, create a model for other city parks, and provide a platform for promoting pesticide-free landscaping in the public realm and on private property. This project also includes the creation of a stewardship pilot program and a habitat corridor along 11th avenue. Key decision makers: Seattle Department of Parks and Recreation Priority: Medium Staff Lead: Erin Fried Staff Second: Capitol Hill EcoDistrict Exec Dir

Alignment with Capitol Hill Business Alliance/Broadway BIA Promote policies to support local small businesses to keep their doors open (a small business fund) and funding for a small business advocate. Key decision makers: Priority: Medium Staff Lead: Akeyla Jimerson Staff Second: Erin Fried

"M:\Foundation\@secured\Advocacy\PublicPage Policy 69 Agendas of 72\2020\Public Policy Agenda 2020.doc" NEIGHBORHOOD ISSUES (continued)

Homeless Outreach Services Coordination The Capitol Hill EcoDistirct hopes to center the approach to combat homelessness in our area by advocating to support the REACH homeless services coordinator and make the case for increased funding for additional mental health service coordination. Key decision makers: Priority: Medium Staff Lead: Akeyla Staff Second:

CITY / COUNTY ISSUES

Commercial and Cultural Affordability Public benefit money is increasingly used to support for-profit businesses, as small businesses are increasingly unable to afford the rising cost of commercial spaces. CHH will engage in efforts to identify resources and strategies that ensure commercial spaces remain affordable to small businesses and arts organizations. Key decision makers: Office of Economic Development Priority: Medium Staff Lead: Jill Fleming Staff Second: Chris Persons/ Jeremy Wilkening

Strengthen Collaboration Between City and Public Development Authorities in Seattle Along with the rebrand, increase understanding of Community Roots as a city-wide organization to better expand the PDA’s reach within the city and strengthen collaboration with the city. Key decision makers: Mayor, Emily Alvarado, Randy Engstrom, Sam Assefa, Andres Mantilla Priority: Medium Staff Lead: Chris Persons Staff Second: Jill Fleming

Unreinforced Masonry Building Preservation Through Integrated Retrofit Credit Program Unreinforced masonry (URM) buildings contribute to the character of Seattle and often provide naturally-occurring affordable housing opportunities. CHH owns 8 buildings that have been identified by the City and confirmed as URM or have significant masonry issues. The City is considering a mandatory URM program that would be require retrofits to be completed within a seven to thirteen-year period, with financing mechanisms still under development. The owners of market rate and affordable housing properties throughout the region lack the resources to sufficiently upgrade their properties. CHH has participated in an URM owners work group which has proposed a city Integrated Retrofit Credit Program, incorporating energy retrofits into URM retrofits. Key Decision Makers: OSE, SDCI, OH Priority: Medium Staff Lead: Dylan Locati Staff Second: Brad Lange

Sufficiently Fund Community Centric Real Estate Development Governmental institutions are increasingly requiring CHH and other community-based organizations to undertake complex community partnerships that necessitate years of community process before a building breaks ground. Government must fully fund this costly work. Key Decision Makers: City, County and State elected officials Priority: Low Staff Lead: Jeremy Wilkening Staff Second: Chris Persons

"M:\Foundation\@secured\Advocacy\PublicPage Policy 70 Agendas of 72\2020\Public Policy Agenda 2020.doc" STATE ISSUES

Fixing the Bond Cap To continue producing affordable housing at the same rate in a rising cost environment, developers will need an increase in the amount of bond cap dedicated to affordable housing production. A two-pronged approach includes at the federal level, increasing the per capita bond cap allocation currently at $105 (in effect since 2018), and at the state level, increasing the portion of bond cap allocated to affordable housing versus other non-housing uses. An additional concern at the state level is how bond cap is allocated to PDAs. Key Decision Makers: Priority: High Staff Lead: Jill Fleming Staff Second: Jeremy Wilkening

Increase Investment in the Housing Trust Fund The Housing Trust Fund has been underfunded as the need for affordable housing had increased. In order to continue to build safe, quality, affordable home that are guaranteed to remain affordable, the investment in the Housing Trust Fund must be considerably increased. In supplemental budget year, push for a $10 million investment in the Housing Trust Fund. Key Decision Makers: State elected officials Priority: High Staff Lead: Jeremy Wilkening Staff Second: Chris Persons

FEDERAL ISSUES

Federal advocacy trigger: Trusted national organization (such as LISC, Enterprise or the National Housing Conference) asks CHH to advocate for an issue below.

Expand Low Income Housing Tax Credit Program Support the retention and expansion of the Low-Income Housing Tax Credit (LIHTC) program, a key funding tool utilized by CHH for nearly every development. The Affordable Housing Credit Improvement Act would include a 50% expansion of the LIHTC. CHH will participate with the HDC public policy group on this issue. Priority: Very High Staff Lead: Chris Persons Staff Second: Michael Seiwerath

Support Protection and Expansion of HUD Section 4 Funding. HUD Section 4 Funding is a critical capacity building funding source for CHH. Priority: Medium Staff Lead: Michael Seiwerath Staff Second: Christopher Persons

Modernize the Community Reinvestment Act (CRA) As the federal government explores modernizing the CRA, we support three principles: 1) preserve a focus on affordable housing; 2) update assessment areas to address national lending and investment challenges; and 3) retain an explicit investment test with an emphasis on community development activities. Priority: Low Staff Lead: Chris Persons Staff Second: Michael Seiwerath

Save the New Markets Tax Credit (NMTC) Program The NMTC expires at the end of 2019. No provisions from the Affordable Housing Credit Improvement Act (AHCIA) were included in the end of year tax package and was composed of short term-extenders. In 2020, we support an extension of the NMTC and an extension of the production tax credit (PTC). Priority: Medium Staff Lead: Jill Fleming Staff Second: Chris Persons?

"M:\Foundation\@secured\Advocacy\PublicPage Policy 71 Agendas of 72\2020\Public Policy Agenda 2020.doc" FUTURE ISSUES

Transit Oriented Development pooled fund – Growing Transit Communities (Chris Persons) Procurement Issues (Jill Fleming)

ISSUES TO TRACK

Fix Statewide Property Tax Exemption to Include 60% AMI Projects Equitable Development Initiative funding (City level) Implementation of permanent protected bike lanes on Pike and neighborhood edge Federal changes to HUD, particularly section 4 funding Tenant protections legislation for unintended consequences for affordable housing owners and managers.

RECENTLY RESOLVED OR DOWNGRADED

Adopt MHA- Passed Support the update of the Capitol Hill Neighborhood Design Guidelines (NDGs) – Passed Increase Multi Family Tax Exemption to 24 years – Passed Allow Communities to Retain a Portion of the State’s Sales Tax to Invest in Affordable Homes.- Passed Condo Liability (state) – Resolved Define Community Engagement and Permitting Process for Affordable Housing Developments- Resolved

FOR REFERENCE

Washington Low Income Housing Alliance State Priority Agenda Housing Development Consortium 2020 Advocacy Priorities AHMA- AHMA does not have a written summary of public policy positions.

ENDORSEMENT POLICY

In addition to the positions listed above, CHH also periodically adds its support to community and industry issues. All endorsements by CHH or CHHF must be approved by a member of the leadership team. Highly visible issues should be brought to the CEO.

"M:\Foundation\@secured\Advocacy\PublicPage Policy 72 Agendas of 72\2020\Public Policy Agenda 2020.doc"