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HomeMy WebLinkAboutCONSENT HFB Habitat Landes Terrace JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA REQUEST TO: Jefferson County Board of Commissioners FROM: Carolyn Gallaway, Clerk of the Board DATE: r 2 it j /7-c- SUBJECT: AGREEMENT re: 2026 Affordable Housing/Homelessness Grant Funding; Habitat for Humanity of East Jefferson County -Landes Terrace New Construction; in the amount of$90,000 STATEMENT OF ISSUE: On October 29, 2025 and November 4, 2025 the Housing Fund Board met and reviewed the RFPs received. On November 17, 2025,the Board of County Commissioners approved the Housing Fund Board's 2026 funding recommendations for Affordable Housing Fund 148, Homeless Housing Fund 149(1590 and 5386 Funds). One of the recommendations was to fund Habitat for Humanity-Landes Terrace New Construction; in the amount of$90,000. ANALYSIS: The attached Grant Agreement will provide $90,000 in funds approved by the Board of County Commissioners on November 17, 2025. FISCAL IMPACT: $90,000 from Fund 148 RECOMMENDATION: Approve the attached Grant Agreement. REVIEWED BY; 4?-c- Jo . Peters, County Administrator Date CONTRACT REVIEW FORM Clear Form (INSTRUCTIONS ARE ON THE NEXT PAGE) CONTRACT WITH: HABITAT FOR HUMANITY OF JEFFCO Contract No: HAB-LANDES-2026 Contract For: LANDES TERRACE NEW CONSTRUCTION Term: January 1,2026 to December 31,2026 COUNTY DEPARTMENT: COUNTY ADMINISTRATOR'S OFFICE Contact Person: CAROLYN GALLAWAY Contact Phone: 360-385-9122 Contact email: CAROLYN@CO JEFFERSON WA.US AMOUNT: $90,000 PROCESS: Exempt from Bid Process Revenue: Cooperative Purchase Expenditure: ~_ Competitive Sealed Bid Matching Funds Required: Small Works Roster Sources(s) of Matching Funds _ Vendor List Bid Fund # ,J� RFP or RFQ Munis Org/Obj _Other: APPROVAL STEPS: STEP 1: DEPARTMENT CERTIFIES COMPLIANC WITH JCC,r3.55.080 AND CHAPTER 42.23 RCW. CERTIFIED: ❑ N/A:ael Sig ture Date STEP 2: DEPARTMENT CERTIFIES THE PERSON PROPOSED FOR CONTRACTING WITH THE COUNTY (CONTRACTOR) HAS NOT BEEN DEBARRED BY ANY FEDERAL, STATE, OR LOCAL AGENCY. elf CERTIFIED: ❑ N/A: a 6` Ci 4,1 lZ /h Z-5" mac_ S gnature Date STEP 3: RISK MANAGEMENT REVIEW(will added electronically through Laserfiche): Electronically approved by Risk Management on 12/12/2025. STEP 4: PROSECUTING ATTORNEY REVIEW(will be added electronically through Laserfiche): Electronically approved as to form by PAO on 12/12/2025. County grant template. Pre-approved by PAO. STEP 5: DEPARTMENT MAKES REVISIONS & RESUBMITS TO RISK MANAGEMENT AND PROSECUTING ATTORNEY(IF REQUIRED). STEP 6: CONTRACTOR SIGNS STEP 7: SUBMIT TO BOCC FOR APPROVAL AGREEMENT FOR 2026 AFFORDABLE HOUSING/HOMELESSNESS SERVICES FUNDING FOR HABITAT FOR HUMANITY—LANDES TERRACE NEW CONSTRUCTION This Agreement is by and between Jefferson COUNTY, Washington (the COUNTY) and HABITAT FOR HUMANITY OF EAST JEFFERSON COUNTY("RECIPIENT"). WHEREAS, RECIPIENT is a non-profit corporation registered with the Secretary of State of the State of Washington under UBI number 601 850 143;and WHEREAS, the COUNTY desires to support affordable housing and reduce or eliminate homelessness in unincorporated Jefferson COUNTY, as authorized by Chapter 36.22 RCW, Chapter 82.14 RCW,and Chapter 3.33 Jefferson COUNTY Code; and WHEREAS, the COUNTY appointed the Jefferson COUNTY Housing Fund Board ("HFB") to review and recommend Affordable and Supportive Housing Fund (1590 FUNDS) and/or Homeless Housing and Assistance Fund (5386 FUNDS) proposals submitted to the COUNTY, as authorized by RCW 82.14.530, RCW 82.14.540 and Chapter 3.33 Jefferson COUNTY Code;and WHEREAS, RECIPIENT submitted a qualified Affordable and Supportive Housing Fund (1590 FUNDS) and/or Homeless Housing and Assistance Fund (5386 FUNDS) proposal to the HFB; WHEREAS, the HFB reviewed and recommended funding all or part of RECIPIENT's qualified Affordable and Supportive Housing Fund (1590 FUNDS) and/or Homeless Housing and Assistance Fund(5386 FUNDS)proposal to the Jefferson County Board of Commissioners; WHEREAS, the Jefferson County Board of Commissioners reviewed the HFB recommendation for funding all or part of RECIPIENT's qualified Affordable and Supportive Housing Fund (1590 FUNDS) and/or Homeless Housing and Assistance Fund (5386 FUNDS) proposal and finalized an award of$90,000 from Fund 148 for the purposes recommended by the HFB ("Final HFB Award"); IN CONSIDERATION of the mutual covenants and agreements herein it is agreed by the parties as follows: 1. SERVICES TO BE PERFORMED USING THE HFB AWARD a. RECIPIENT shall use its capabilities and utilize up to the total amount of Final HFB Award for the approved scope of work for the Project described in RECIPIENT's proposal for the 2026 fiscal year,a copy of which is attached as Exhibit A. b. The budget for the Project is described in Exhibit B,attached. 2. RESPONSIBILITIES OF RECIPIENT a. Reports. RECIPIENT shall submit a progress report no later than July 1, 2026, midway through the grant cycle period. An annual report form will be due no later than January 31, 2027. The report form will be distributed before the end of the year. Non-compliance HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 1 may result in no funds awarded in the future. Reports shall include a comparison of outcomes to date with those initially proposed, and the total number of individuals served during the Agreement term. b. Payment. Expenses incurred on the Project, as described in Section 1.b., by the Project's consultants, contractors, suppliers, or RECIPIENT's staff shall be submitted to the COUNTY Administrator's Office by RECIPIENT using a detailed invoice that includes all of the following: i. Each detailed invoice shall show individual items followed by the total amount incurred and the amount eligible for reimbursement under this grant. RECIPIENT may submit such invoices to the COUNTY once per month during the course of the Project for work completed. All invoices shall be submitted no later than 30 days after project completion; and, ii. The COUNTY shall review and approve invoice payments. Payments will be limited to the monies that are available under the grant as described in Section 1. Such invoices, once approved, will be paid using the COUNTY's normal bill paying process and cycle. c. For a minimum of six (6) years, maintain documented proof of payments made, contracts executed, and other expenditures authorized under this Agreement. Upon reasonable notice,provide access to COUNTY or State representatives to audit those records. d. Funding provided by this Agreement may only be expended on the services described in Section 1 of this Agreement. Any monies used for other services or purposes shall be refunded to Jefferson COUNTY. Any monies under-expended of the total funding allocated under this Agreement shall be refunded to Jefferson COUNTY by January 31, 2027. 3. RESPONSIBILITY OF JEFFERSON COUNTY a. The COUNTY shall provide RECIPIENT funding from the Affordable and Supportive Housing Fund (1590 FUNDS) and/or Homeless Housing and Assistance Fund (5386 FUNDS) to be used in support of their responsibilities as defined under this Agreement. b. Said funding is in the amount of the Final HFB Award for the 2026 fiscal year. Payment is conditioned on full compliance with this Agreement, including but not limited to, the submittal of the reports required by Section 2. c. Payment shall be made by the COUNTY upon receipt of an invoice on the next available billing cycle. 4. TERM This Agreement shall be for a term of one year, commencing on January 1, 2026 and ending on December 31,2026,except for the reports required in Section 2,which are due January 31,2027. 5. ASSIGNMENT A parry's interests in this in this Agreement may not be assigned to any other person. HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 2 6. TERMINATION a. This Agreement may be terminated, in whole or in part, by the COUNTY upon thirty (30) days written notice in the event expected or actual revenue from Fund 148 and/or 149 is reduced or limited in any way, or for non-performance of duties under this Agreement, or for any reason. b. RECIPIENT may terminate this Agreement upon thirty (30) days written notice to the COUNTY. In the event of termination under this clause, the COUNTY shall be liable to pay only for services rendered prior to the effective date of termination. If termination covers a period for which payment has already been made, RECIPIENT shall refund to the COUNTY a pro-rated share of the payment based upon the balance of time remaining in the paid period,unless otherwise negotiated. 7. HOLD HARMLESS a. RECIPIENT shall indemnify and hold the COUNTY, and its officers, employees, agents and volunteers (and their marital communities) harmless from and shall process and defend at its own expense, including all costs, attorney fees and expenses relating thereto, all claims, demands, or suits at law or equity arising in whole or in part, directly or indirectly, from RECIPIENT's negligence or breach of an of its obligations under this Agreement; provided that nothing herein shall require RECIPIENT to indemnify the COUNTY against and hold harmless the COUNTY from claims, demands or suits based solely upon the conduct of the COUNTY, its officers, employees, agents and volunteers (and their marital communities), and; provided further that if the claims or suits are caused by or result from the concurrent negligence of: (a) RECIPIENT's agents or employees; and, (b) the COUNTY, its officers, employees agents and volunteers (and their marital communities), this indemnity provision with respect to claims or suits based upon such negligence, and or the costs to the COUNTY of defending such claims and suits, etc., shall be valid and enforceable only to the extent of RECIPIENT's negligence, or the negligence of RECIPIENT's agents or employees. b. RECIPIENT specifically assumes potential liability for actions brought against the COUNTY by RECIPIENT's employees, including all other persons engaged in the performance of any work or service required of RECIPIENT under this Agreement and, solely for the purpose of this indemnification and defense, RECIPIENT specifically waives any immunity under the state industrial insurance law, Title 51 RCW. RECIPIENT recognize that this waiver was specifically entered into pursuant to provisions of RCW 4.24.115 and was subject of mutual negotiation. 8. INSURANCE RECIPIENT shall obtain and keep in force during the term of this Agreement, or as otherwise required, the following insurance: a. Commercial General Liability Insurance. RECIPIENT shall maintain commercial general liability coverage on a form acceptable to Jefferson COUNTY Risk Management for bodily injury, personal injury, and property damage, with a limits of not less than in the amount of at least $1 million per occurrence, for bodily injury, including death, and property damage; and HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 3 b. Worker's Compensation (Industrial Insurance). RECIPIENT shall maintain workers' compensation insurance at its own expense, as required by Title 51 RCW, for the term of this Agreement and shall provide evidence of coverage to Jefferson COUNTY Risk Management,upon request. 9. INDEPENDENT CONTRACTOR a. RECIPIENT and the COUNTY agree that RECIPIENT is an independent contractor with respect to the services provided pursuant to this Agreement. b. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. c. Neither RECIPIENT nor any employee of RECIPIENT shall be entitled to any benefits accorded COUNTY employees by virtue of the services provided under this Agreement. d. The COUNTY shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to RECIPIENT, or any employee, representative, agent or subcontractor of RECIPIENT. e. RECIPIENT shall be responsible for all applicable withholdings, deductions, state industrial insurance, tax reports, business licenses, registrations, and all other obligations of an independent organization. HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 4 10. SUBCONTRACTING REQUIREMENTS a. RECIPIENT Owns Contract Performance. RECIPIENT is responsible for meeting all terms and conditions of this Agreement including standards of service, quality of materials and workmanship, costs and schedules. Failure of a subcontractor to perform is no defense to a breach of this Agreement. Recipient assumes responsibility for all liability for the actions and quality of services performed by any subcontractor. b. Subcontractor Disputes. Any dispute arising between RECIPIENT and any subcontractors or between subcontractors must be resolved with involvement of any kind on the part of the COUNTY and without detrimental impact on the delivery of contracted goods and services. 11. LEGAL AND REGULATORY COMPLIANCE While performing under this Agreement, RECIPIENT, subcontractors, and their employees are required to comply with all applicable local, state and federal laws, codes, ordinances and regulations, including but not limited to: a. Applicable regulations of the Washington State Department of Labor and Industries, including WA-DOSH Safety Regulation; and b. State and Federal Anti-Discrimination Laws. 12. COMPLIANCE WITH LAWS RECIPIENT shall comply with all Federal, State, and local laws and ordinances applicable to the work to be done under this Agreement. 13. CHOICE OF LAW The parties agree that this Agreement is entered into in the State of Washington. This Agreement shall be governed by and construed under the laws of the United States, the State of Washington and the County of Jefferson, as if applied to transactions entered into and to be performed wholly within Jefferson County, Washington between Jefferson County residents. No party shall argue or assert that any state law other than Washington law applies to the governance or construction of this Agreement. 14. DISPUTES a. The parties agree to use their best efforts to prevent and resolve disputes before they escalate into claims or legal actions. Any disputed issue not resolved under this Agreement shall be submitted in writing within 10 days to the County Risk Manager, whose decision in the matter shall be final, but shall be subject to judicial review. b. If either party deem it necessary to institute legal action or proceeding to enforce any right or obligation under this Agreement, each party in such action shall pay for its own attorney's fees and court costs. c. Any legal action shall be initiated in the Superior Court of the State of Washington for Jefferson County, subject to the venue provisions for actions against counties in RCW HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 5 36.01.050. The parties agree that the parties have the right of appeal from such decisions of the Superior Court under the laws of the State of Washington. d. RECIPIENT consents to the personal jurisdiction of the courts of the State of Washington. 15. DISCRIMINATION PROHIBITED RECIPIENT with regard to the project to be completed under this Agreement, shall not discriminate on the grounds of age, sex, marital status, sexual orientation, race, creed, color, national origin, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability, unless based upon a bona fide occupational qualification in the selection and retention of employees,materials, supplies, or subcontractors. 16. INTEGRATED AGREEMENT This agreement together with attachments or addenda represents the entire and integrated agreement between the COUNTY and RECIPIENT and supersedes all prior negotiations, representations, or agreements written or oral. 17. PUBLIC RECORDS ACT This Agreement and any reports submitted by RECIPIENT are subject to disclosure as a public record under the Public Records Act, RCW Chapter 42.56. 18. RECORDS RETENTION AND AUDIT AUTHORIZATION a. A minimum of six years, RECIPIENT shall maintain documented proof of payments made, contracts executed and other expenditures authorized under your Agreement with Jefferson COUNTY. b. Upon reasonable notice, RECIPIENT shall provide access to COUNTY or State representatives to audit records related to the funds provided to RECIPIENT under this Agreement. 19. NO SEVERABILITY The terms of this Agreement are not severable. If any provision of this Agreement or the application of this Agreement to any person or circumstance shall be invalid, illegal, or unenforceable to any extent, the remainder of this Agreement and the application this Agreement shall not be enforceable. 20. SURVIVAL Those provisions of this Agreement that by their sense and purpose should survive the term of this Agreement shall survive the term of this Agreement for a period equal to any and all relevant statutes of limitation, plus the time necessary to fully resolve any claims, matters or actions begun within that period.. Without limiting the generality of the preceding sentence, and for the avoidance of doubt,the provisions that survive the term of this agreement include: (a)controlling law; (b) insurance; and, (c) indemnification. HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 6 21. AMENDMENT, MODIFICATION AND WAIVER a. This Agreement may be not be amended or modified to change the approved scope of services in the Final HFB Award. b. Only the Jefferson County Board of Commissioners or their delegate by writing (delegation to be made prior to action) shall have the expressed, implied, or apparent authority to sign, alter, amend, modify, or waive any clause or condition of this Agreement. c. Any alteration, amendment, modification, or waiver of any clause or condition of this Agreement is not effective or binding unless made in writing and signed by the Jefferson County Board of Commissioners or their delegate. SIGNATURES ARE ON THE FOLLOWING PAGE HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 7 JEFFERSON COUNTY WASHINGTON HABITAT FOR HUMANITY of East Jeffco Board of COUNTY Commissioners Jefferson COUNTY, Washington By: Heidi Eisenhour,Chair Date By: Signature By: Greg Brotherton, Member Date Name: Title: By: Heather Dudley-Nollette, Member Date Date: SEAL: ATTEST: Carolyn Gallaway,CMC Date Clerk of the Board Approved as to form only: for 12/12/2025 hilip C. Hunsucker, Date Chief Civil Deputy Prosecuting Attorney HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 8 EXHIBIT A - SCOPE OF WORK RECIPIENT has been awarded $90,000 (the "Final HFB Award"), after recommendation by the Housing Fund Board ("HFB"). Recipient shall use the Final HFB Award consistently with its response to the request for proposal submitted to the HFB during the 2026 cycle. A true and correct copy of the RECIPIENT's response to the request for proposal is attached as Exhibit C. HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 9 EXHIBIT B—BUDGET RECIPIENT has been awarded $90,000(the "Final HFB Award"), after recommendation by the Housing Fund Board("HFB"). Recipient shall use the Final HFB Award consistently with its response to the request for proposal submitted to the HFB during the 2026 cycle. A true and correct copy of the RECIPIENT's response to the request for proposal is attached as Exhibit C. Applicant: Habitat for Humanity of East Jefferson County Contact: Lies' Slabaugh, Director of Development Address: P.O. Box 658, Port Townsend, WA 98368 Phone: 360-379-2827 Email: Islabaugh@habitatejc.org HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 10 Exhibit C RECIPIENT'S PROPOSAL Request for Proposal(RFP)starts after this page HFB Grant Award Agreement for Habitat for Humanity—Landes Terrace Page 11 Application Affordable and supportive Housing & Homeless Housing and Assistance Funds For use from January 1, 2026 to December 31, 2026 GENERAL INFORMATION—It is understood that if awarded funding for this period, there is no guarantee of future funding beyond this award. We estimate the available funding for this period to be approximately $160,000 for 5386 Homeless Housing and Assistance (operating) funds; $780,000 for 1590 Affordable and Supportive Housing development funds; and first year operating funds; and $520,000 for 1590 Affordable and Supportive Housing operating funds. Note that 1590 operating funds may be used for all housing-related services. Name of Project or Program: Landes Terrace New Construction Requested total amount for this application: $100,000 Area of the County to be served: East Jefferson County Name of Applicant/Agency: Habitat for Humanity of East Federal Tax ID#: 91-1885667 Jefferson County Contact Person: Liesl Slabaugh Title: Director of Development Address: PO Box 658 City: Port Townsend State: WA Zip: 98368 Phone Number: (360)379-2827 Fax Number: E-mail: lslabaugh@habitatejc.org CERTIFICATION by Authorized Agency Representative (Board President,CEO,or another person authorized to bind the agency in a contract). Name of Authorized Agency Representative(print): Jamie Maciejewski Title: Executive Director • Applicant certifies that these funds will be used as described in this application unless a change has been mutually agreed upon between Contractor and Jefferson County Board of County Commissioners. Substantive amendment requests will also require the approval of the Housing Fund Board("HFB"). • Applicant certifies that the information in this application is true and correct. • Applicant certifies that it has no outstanding obligations to the County with respect to housing funds. 4 /Wit f Ili 1 a ai 1 A L''''")amtolit _October 15, 2025 Signature of Authorized Agency Representative Date SPECIFIC INFORMATION Please separately tab each section of the application submission as to Project or Program Description,Capacity, Alignment,Approach, Impact of Funds, Budget. PROJECT DESCRIPTION • Name of Project or Program (please include HMIS name/number if applicable): Landes Terrace New Construction • Amount requested: $100,000 • Provide a brief description of the Project or Program: (LIMIT 200 WORDS) Habitat for Humanity of East Jefferson County(Habitat EJC)brings people together to build homes, communities, and hope. We partner with low-income people(below 80%Area Median Income)to build and repair homes,with a focus on homeownership. Habitat EJC offers an opportunity to hard working community members facing an increasingly unaffordable housing market. Low-income buyers work alongside dozens of volunteers to build their own house, make a small down payment, and assume an affordable mortgage(one- third or less of income). Habitat homeowners are responsible, tax-paying members of the community. The stability of home ownership allows them to invest more time and energy in the well-being of their family, friends,and community. • Specify the Project or Program goals and expected outcomes. Specify the measures of success by which the Project or Program will be assessed. (LIMIT 300 WORDS). 299 Habitat EJC is requesting$20,000 for each of five homes in our Landes Terrace project(for a total of $100,000)as an affordability subsidy. These five homes will be sold to homebuyers earning 60%AMI or below. This affordability subsidy will stay with the land to make these homes permanently affordable to low- income homebuyers. The total cost to build a Habitat home, including land purchase and infrastructure, is typically around$355,000,while the typical mortgage for a Habitat homeowner is $205,000. The $150,000 gap is bridged by philanthropy and grants. Habitat EJC has applied to the Housing Trust Fund for$150,000 per house to cover this gap but only expects to get$130,000 or less. A grant from the Jefferson County Affordable Housing Fund would be applied to any gap remaining after Housing Trust Fund dollars are applied. These five homes are part of a 14-unit development on Landes Terrace in Port Townsend, all permanently affordable. The ownership agreements will require that all future resales of these homes be affordable to homebuyers who qualify for Habitat's program(based on area median income). Homeownership creates stability and financial security for families who can afford it,but the reality is that many cannot. Affordable housing is disappearing at an unprecedented pace. This puts many residents at risk of homelessness and adds stress to families who are cost burdened by their housing(paying more than 1/3 of their income). Homeownership is an excellent permanent housing resource for working households at 60% AMI or below who are at risk of displacement or homelessness due to the high cost of housing. They gain control over their housing costs and situation,no longer subject to rising rents or loss of housing when their rental is converted to a vacation rental or sold. For this reason, homeownership can be a better option than renting for many low- income individuals and families. • Specify the number of units of housing to be created or number of individuals who will be served by the Project or Program. Five units of housing which will service five households or an estimated 13 people in the short term, but many more as homes resell at a permanently affordable price in the future. Threshold Requirements: • Identify the specific eligible use(s)under 5386 and/or 1590 for which the Project or Program qualifies,as listed on pages two through four of the RFP. If you are submitting for both operating and development funds, please submit separate budgets for each. 1590 Development Funds: $100,000 A. 1. Constructing affordable housing,which may include new units of affordable housing within an existing structure, and facilities providing housing-related services, Households served will be"eligible households"meaning persons within any of the following population groups whose income is at or below sixty percent of median income: o Persons with mental illness o Veterans o Senior citizens o Homeless(or at-risk of being homeless)families with children o Unaccompanied homeless youth or young adults o Persons with disabilities o Domestic violence survivors • Provide a brief description of recent,relevant and successful experiences in delivering similar programs and/or projects. Over the past 27 years, Habitat EJC has built and sold a total of 72 homes, rehabbed 1,recycled 17 homes (bought back from original Habitat owner,refurbished,then resold to a new Habitat family)and completed critical home repairs on 59 homes,primarily in areas of the county(Quilcene and Brinnon)where lack of public infrastructure is a barrier to new home construction. Historically, a large percentage of our homeowners(approximately half)are below 60%AMI and we have never had a foreclosure. Habitat EJC has completed several single-family home developments, all in Port Townsend,including the following: 20th and 21 st Streets— 16 homes Birkenfeld Neighborhood— 12 homes with an active HOA Cliff Street—7 homes Eddy Street—9 homes Landes North—6 duplex-style homes All developments were built on land acquired by Habitat EJC either through an in-kind donation,or purchase. We are currently building the Cliff Street Cottages, six homes with an HOA, and will start the first six homes of 14 in late October 2025 on Landes Terrace, duplex-style homes with an HOA. We are in pre- construction planning for a 5-cottage development called Rosalynn Court on San Juan Ave, and the 138- home Mason Street Neighborhood in Port Hadlock,with groundbreaking targeted for September 2026. • Briefly describe how the project aligns with the priorities and objectives of the Five-Year Homeless Housing Plan and the community outreach conducted for the project or program.(LIMIT 400 WORDS) Per the 2019-2024 Five-Year Homeless Housing Plan, our project addresses Objective#6: Increase the development of affordable housing through the following 1) Increase workforce housing units for those between 50-80%AMI (Action 3) 2) Supportive efforts aimed at ending homelessness by building homes for those earning 30-80%AMI (Action 9) Additionally, under Objective#6, this project demonstrates one of the measures of success: "Increase the development of affordable housing and alternative housing models through incentives and policy changes." A recent policy change by the City of Port Townsend subsequent to adoption of the Plan,the Zero Lot Line ordinance, is making possible the building of paired homes in the Landes Terrace neighborhood,reducing the cost to build. There is an extreme need for affordable housing in East Jefferson County. The City of Port Townsend offers a municipal perspective on the local housing shortage on its website (https://cityofpt.us/engagept/page/housing). Daily,we hear from friends, neighbors and businesses who have family and employees who can't afford to live in the area. An adequate supply of safe,affordable housing is simply not available. Habitat EJC is diligently working to increase our capacity to build more affordable housing more rapidly. The proposal further aligns with the draft 2025-2030 Five Year Homeless Housing Plan, specifically: • Objective 4 B, Expand supported affordable housing options for renters. By increasing the affordable units of housing available through an affordable homeownership model, options are expanded. • Objective 5 A, Strengthen local partnerships to facilitate housing access across the housing spectrum by better matching underserved populations to housing that meets their types and levels of need. For the first 15 years, Habitat only served households under 60%AMI, viewing this as an underserved population that has lacked access to the most important generational wealth building tool that exists, homeownership. As we have grown,we have expanded to serve households up to 80%AMI but continue to serve those under 60%. A track record of zero foreclosures attests to the success of homeownership for very low-income households. A. APPROACH-Completeness of Proposal and Readiness(5 Points)(LIMIT 400 WORDS) • Is the Project or Program ready to use the funding now or are there actions to be taken before the Project or Program can begin? If so, what are those actions? Yes. No additional actions are needed. •Will the requested funds fully fund the Project or Program? If not,how does the organization intend to fill the gap? No,requested funds would not fully fund the project, however, we have applied for Housing Trust Fund affordability subsidies of$150,000 per house. We expect to only be awarded$130,000 or less per house. The County grant would be applied to any affordability gap that is left after Housing Trust Funds and the affordable mortgages are applied to the cost of land and building. •Could the Project or Program be scaled(include the per unit cost of the Project or Program)? Yes,the project could be scaled and Habitat EJC is doing just that with our currently planned neighborhoods. Landes Terrace reuses the design piloted at Landes North, reducing our costs, allowing us to build more houses with less money. Likewise,the Rosalynn Court neighborhood,planned for the San Juan Avenue property next to the Baptist Church, reuses the cottage design being piloted this summer in our Cliff Street Cottage neighborhood. The per unit cost in the Landes Terrace neighborhood is $355,000. For the five homes that will serve 60% AMI homebuyers, the total cost will be$1,775,000 • Have additional funds been requested or will be requested. Identify the sources for those requests and the status of the requests. Our Housing Trust Fund application is pending until December or January. We continue to fundraise for the rest of the Landes Terrace houses. B. IMPACT OF FUNDS-Leverage of Other Funds and Number of Persons Assisted (10 Points)(LIMIT 400 WORDS) • How would the project contribute to positive movement in Commerce's Homeless System Performance Measure: total project entries, length of time homeless,exits to permanent housing, returns to homelessness, and system prioritization. The Landes Terrace project contributes to the"expansion of services"measure by increasing the overall number of housing units,allowing the homeless response system to serve more individuals and families and supporting exits to permanent housing. • What other funds,donors,or community support are involved with the project? Will these funds leverage other funds? Identify other sources of funds that would be leveraged with the requested funds and/or how these funds will be used to leverage other funds. See project budget below for other funding sources. We have strong community support through both donations and volunteers. We continue to fundraise for the rest of the Landes Terrace neighborhood and having support from the County would strengthen our case as we solicit donors, helping leverage further funding. • How many new units will be brought online. How many existing units will be preserved? What services will be funded and how is sustainability achieved? Five units will be completed in 2026. Once construction is complete,homes will be sold to Habitat homebuyers under our Permanent Affordability program. In this model, Habitat EJC owns the land in perpetuity. Homes are sold to homebuyers at a below-market price with a 99-year ground lease. In exchange for this below-market sales price, resale is limited to 1.5%simple interest annual rate of appreciation. The home stays perpetually affordable and if the homeowner chooses to sell,the home is sold to another homeowner who qualifies for the program. The initial community investment is recycled over and over with each sale and purchase of the home. The Jefferson County Affordable Housing Fund's investment is thereby protected in perpetuity, staying with each house as it is sold to the next qualifying buyer. • How many individuals will be served by these funds? Five units of housing which will serve 13 people in the short term,but many more as homes resell at a permanently affordable price in the future. • Will these funds serve any special populations such as youth or domestic violence survivors? No • How does this project serve marginalized populations and address risk of harm and barriers to housing stability? Habitat for Humanity's vision is a world where everyone has a decent place to live,but we recognize that a structure of intentional and systemic racial discrimination in the U.S. has created barriers to homeownership for many BIPOC families. Systemic discrimination has persisted in present policy, from redlining to inequitable access to mortgage credit. Taken together,these practices are barriers to saving for a down payment, getting a loan and affording a home—and they threaten the vitality and prosperity of every community. Habitat EJC is actively working to close the racial/ethnic homeownership gap in East Jefferson County. BIPOC/Latinx families apply to Habitat homes in a greater proportion than their presence in the qualified renters pool and they're accepted to become Homebuyer Families at an even higher rate. Overall, HFHEJC is serving a more diverse clientele than the county as a whole: 21.3%of our partner families are BIPOC/ Latinx, almost triple their representation in the county. • What is your plan for continuous improvement in order to serve historically underserved populations? HFHEJC participates in programs with Habitat for Humanity International and Habitat for Humanity of Washington that support closing the Black homeownership gap. HFHEJC staff members have received training, and we continue to incorporate changes into our organization. We also work with Usawa Consultants LLC to continually improve our outreach efforts. C. PROJECT OR PROGRAM BUDGET—A Feasible Financial Plan (5 Points) BUDGET FORMS Funding period begins January 1,2026, and ends December 31,2026. Please use the attached budget templates. If you need additional space,you may insert rows. "Proposal"refers to the funds requested from these funds that will be applied to this specific Project or Program. Blank spaces are provided for additional categories. Justification for budget items must be specific, and that same specificity should be reflected in subsequent billings. A maximum 10%Administration fee is allowed for projects if needed, however, Administration fees are not allowed for Capital Projects. CAPITAL BUDGET FOR REAL ESTATE DEVELOPMENT USES Financing Categories Estimate Basis of Estimate Total Acquisition Costs $400,000 Actual costs Construction $1,375,000 Construction bid Construction Fees $ Financing Fees and $ Charges Guarantees and $ Reserves Developers Fee $ Subtotal $ TOTAL $1,775,000 SOURCES Financing Categories Estimator Indicate if Committed or Application has been made. If not made indicate date application is to be submitted Private Loan $ Jefferson County $100,000 Dedicated to land acquisition(affordability subsidy) Funds Public Sources(State $650,000 Housing Trust Fund(WA Dept of Commerce) or Federal Funds) Foundations Donations Other $1,025,000 Affordable Mortgage income once homes are sold(committed) Low Income Housing $ Tax Credits (indicate 9%or 4%) Historic Tax Credits $ New Market Tax $ Credits Gap (if any) $ TOTAL $1,775,000 Please include any budget narrative that is descriptive or helpful to explain any part of your proposed expenditures in your capital budget(s). (LIMIT 300 WORDS) Breakdown of Uses: House Budget, Landes Terrace 1 home 5 homes Land(Including Design& Infrastructure) 80,000 400,000 Site work& Foundation 61,700 308,500 Shell/Dry In 58,000 290,000 Interior Systems/Trades 68,365 341,825 Finish 32,035 160,175 Supervision& Misc (Cumulative) 54,900 274,500 Total Home Cost 355,000 1,775,000 ATTACHMENT A Required Insurance Coverages 1. Commercial General Liability. • Recipient shall maintain commercial general liability coverage on a form acceptable to Jefferson County Risk Management for bodily injury,personal injury, and property damage, in an amount not less than two million dollars per occurrence($2,000,000)and an aggregate of not less than four million dollars($4,000,000), for bodily injury, including death, and property damage. • The commercial general liability insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: o Broad form property damage,with no employee exclusion; o Person injury liability, including extended bodily injury; o Broad form contractual/commercial liability, including completed operations and product liability coverage; o Premises—operations liability(M&C); o Independent contractors and subcontractors; and, o Blanket contractual liability. • Recipient's commercial general liability policy shall include employer's liability coverage. • The County and its elected officials, officers and employees shall be named as an additional insured party under this insurance policy. 2. Automobile Liability. • Recipient shall maintain business automobile Liability insurance on a form acceptable to Jefferson County Risk Management with a limit of not less than a combined single limit of $1,000,000 each occurrence. Coverage shall include owned, hired, and non-owned automobiles. 3. Workers' Compensation(Industrial Insurance). Recipient shall maintain workers' compensation insurance at its own expense,as required by Title 51 RCW, for the term of this Agreement and shall provide evidence of coverage to Jefferson County Risk Management, upon request. If the County incurs any cost to enforce the provisions of this subsection, all costs and fees shall be recoverable from Recipient. o Recipient shall provide Workers' Compensation and Employer's Liability on a state approved policy form providing benefits as required by law with employer's liability limits no less than$1,000,000 per accident or disease. o This coverage shall extend to any contractor or subcontractor that does not have their own workers' compensation and employer's liability insurance. o Recipient expressly waives by mutual negotiation all immunity and limitations on liability, with respect to the County,under any industrial insurance act,disability benefit act,or other employee benefit act of any jurisdiction,which would otherwise be applicable in case of such claim. 4. General Insurance Requirements. • Insurance coverage shall be evidenced by one of the following methods: o Certificate of insurance; or, o Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. • Any deductibles or self-insured shall be declared to and approved by the County prior to the approval of this Agreement by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured retention,or Recipient shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. • Failure of Recipient to take out or maintain any required insurance shall not relieve Recipient from any liability under this agreement,nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification of the County. • Recipient's insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect all the parties and shall be primary coverage for all losses covered by the above described insurance. • Insurance companies issuing Recipient's insurance policy or policies shall have no recourse against the County(including its employees and other agents and agencies)for payment of any premiums or for assessments under any form of insurance policy. • All deductibles in Recipient's insurance policies shall be assumed by and be at the sole risk of Recipient. • Any judgments for which the County may be liable, in excess of insured amounts required by this agreement,or any portion thereof, may be withheld from payment due,or to become due,to Recipient until Recipient shall furnish additional security covering such judgment as may be determined by the County. • Any coverage for third party liability claims provided to the County by a"Risk Pool"created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any insurance policy Recipient shall provide to comply with this Agreement. • The County may, upon Recipient's failure to comply with all provisions of this Agreement relating to insurance,withhold payment or compensation that would otherwise be due to Recipient. • Recipient shall provide a copy of all insurance policies specified in this Agreement. • Written notice of cancellation or change in Recipient's insurance required by this Agreement shall reference the project name and agreement number and shall be mailed to the County at the following address: Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368. • Recipient's liability insurance provisions shall be primary and noncontributory with respect to any insurance or self-insurance or self-insurance programs covering the County, its elected and appointed officers, officials,employees and agents. • Any failure to comply with reporting provisions of the insurance policies shall not affect coverage provided to the County, its officers,officials, employees or agents. • Recipient's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. • Recipient shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor. All insurance coverage for subcontractors shall be subject to all the requirements stated in this Agreement. The insurance limits mandated for any insurance coverage required by this Agreement are not intended to be an indication of exposure nor are they limitations on indemnification. • Recipient shall maintain all required insurance policies in force from the time services commence until services are completed. Certificates, insurance policies, and endorsements expiring before completion of services will be promptly replaced. • Recipient shall place insurance with insurers listed to business in the State of Washington and having A.M. Best Company ratings of no less than A-,with the exception that excess and umbrella coverage used to meet the requirements for limits of liability or gaps in coverage need not be place with insurers or re-insurers licensed in the State of Washington. • Certificates of insurance as required by this Agreement shall be delivered to the County within fifteen(15)days of execution of the Agreement. To the extent a certificate lists or refers to any endorsements solely by name. description or number it shall be the responsibility of Recipient to obtain and provide to Jefferson County Risk Management a full and complete copy of the texts of such endorsements. • The County shall be named as an"additional insured"on all insurance policies required by this Agreement. • Recipient shall furnish the County with properly executed certificates of insurance that, at a minimum, shall include: o The limits of coverage; o The project name and agreement number to which it applies; o The certificate holder as Jefferson County, Washington and its elected officials, officers, employees and agents with the address of Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368; and o A statement that the insurance policy shall not be cancelled or allowed to expire except on thirty(30) days prior written notice to the County.