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HomeMy WebLinkAboutHabitat EJC Mason Street Phase 1 $150,000 Funding for: HOMELESS RESPONSE SYSTEM OPERATIONS AND HOMELESS AND AFFORDABLE HOUSING DEVELOPMENT PROJECTS Application Proposals must be RECEIVED by: 10/16/26 at 4:00 PM Section 1: Applicant Information 1.1 APPLICANT INFORMATION Name of Project or Program: Mason Street Development New Construction Area of County to be Served: East Jefferson County Total Amount of Operating Funds Requested: Total Amount of Development Funds Requested: $150,000 HMIS Project Number (if applicable): Name of Agency/Applicant: Habitat for Humanity of East Jefferson County Federal Tax ID: 91-1885667 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: Email: lslabaugh@habitatejc.org 1.2 CERTIFICATION Certification by Authorized Agency Representative (Board President, CEO, or another person authorized to bind the agency in a contract). Name of Authorized Agency Representative: 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. _ _______________________________________________ __10/15/2026_______ Signature of Authorized Agency Representative Date 1.3 PROJECT DESCRIPTION 1. Name of Project or Program: Mason Street Phase 1 New Construction 2. Total Amount of Funding Requested: $150,000 3. Provide a brief description of the project or program: Habitat’s Mason Street Neighborhood (MSN), located at 91 Mason Street, Port Hadlock, WA, 98339, will support a total of 136 homeowners: 55 homeowners at or below 60% AMI, 20 homeowners between 60-80% AMI and up to 61 homeowners above 80% AMI, with a cap at 150% AMI. Additionally, intellectually developmentally disabled (IDD) adults will reside in two professionally staffed, six-person group homes that are an integral part of the neighborhood. Phase 1 infrastructure began construction on 9/16/26. The first 32 homes and one group home are expected to be completed beginning late 2027 and finishing in early 2028. The project submitted under this grant request applies to Phase 1 specifically. The number of homes in Phase 1 that will be sold to buyers at or under 60% AMI is estimated to be 12. All 138 homes will be part of Habitat EJC’s Permanent Affordability program, which includes an annual value appreciation cap on improvements built on land owned by Habitat EJC and leased to homebuyers. This ensures all homes remain affordable in perpetuity to buyers with incomes in the supported range and protects the public and private funds invested in the project. 4. Identify the specific eligible use(s) under 5386 and/or 1590 for which the Project or Program qualifies, as listed in sections 1.3 and 1.4 of the RFP. If you are submitting for both operating and development funds, please submit separate budgets for each. a. 5386 Operating Funds: not applicable b. 1590 Development Funds: $150,000 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: • Persons with mental illness • Veterans • Senior citizens • Homeless (or at-risk of being homeless) families with children • Unaccompanied homeless youth or young adults • Persons with disabilities • Domestic violence survivors c. 1590 Operating Funds: not applicable Section 2: Approach (10 Points) 1. Specify the project or program goals and expected outcomes. (2 point) Habitat EJC is requesting $25,000 for each of six homes in Phase 1 of our Mason Street Neighborhood project (for a total of $150,000) to offset construction costs. These six homes will be sold to homebuyers earning 60% AMI or below. The total cost to build each home at Mason Street, including land purchase and infrastructure, is $425,000, while the typical mortgage for a Habitat homeowner who is below 60% AMI is $200,000. (Notably, this amount is at least $25,000 lower than what is an affordable mortgage for a household at 60-80% AMI.) The $225,000 gap is bridged by philanthropy and grants. The funds requested in this proposal will fill the gap between what is affordable to a buyer below 60% AMI and one who is above 60%. These six homes are part of a 138-unit Mason Street Neighborhood development in Port Hadlock, all permanently affordable. All six homes are in Phase 1 of the project and will be completed by the end of 2027. 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. 2. Briefly describe how the project aligns with and contributes to the priorities, goals and actions of the 2025-2030 Jefferson County Homeless & Affordable Housing Services Plan. The Plan is available for viewing at https://www.co.jefferson.wa.us/DocumentCenter/View/23792/2025-2030-Homeless- Housing-Plan?bidId= (2 points) This project directly advances the goals of the 2025-2030 Homeless & Affordable Housing Services Plan by increasing the supply of permanently affordable housing for households with incomes at or below 60% of Area Median Income (AMI), a population identified in the Plan as being at significant risk of housing instability and displacement. The Plan recognizes that Jefferson County's shortage of affordable housing is a primary driver of homelessness and housing insecurity and calls for expanding affordable housing opportunities that prevent households from becoming homeless in the first place. By helping six low-income families achieve permanently affordable homeownership, the Mason Street Neighborhood project supports Objective 4, "Prevent Episodes of Homelessness Whenever Possible," and Objective 5, "Seek to House Everyone in a Stable Setting That Meets Their Needs." The project also aligns with the Plan's emphasis on creating long-term housing solutions that remain affordable for future generations. The Mason Street Neighborhood's permanent affordability model ensures that these homes will continue serving income-qualified households through future resales, preserving a community asset that addresses Jefferson County's ongoing affordable housing shortage. In Appendix D, the Plan identifies permanently affordable homeownership opportunities for families with children and other low-income households as a priority housing strategy and encourages investments that demonstrate a strong probability of permanently serving the original target population. By leveraging local funds alongside state and philanthropic resources, Habitat for Humanity of East Jefferson County is creating lasting housing stability, reducing displacement risk, and expanding affordable housing inventory consistent with the Plan's priorities and strategies for increasing housing security countywide. Describe any collaborations that informed the development of this project, including participation in Housing Fund Board and Continuum of Care activities. (2 points) The Mason Street Neighborhood was a dream of this community from the beginning, when a handful of concerned residents brought an old airfield in Port Hadlock to Habitat EJC’s attention and asked whether we were willing to consider doing something “really big.” These residents saw a problem and put their considerable intelligence, accumulated experience, and yes, even their wallets, to work. Since the day they approached us in late 2021, many more have joined what they began. Habitat EJC has involved the community at every step of the process with online and in- person planning meetings over the past five years. Additional outreach information here: https://habitatejc.org/mason-street/ Habitat EJC partners with HomeSight, a nonprofit who promotes social and economic equity to preserve and enhance economically and culturally diverse communities through affordable homeownership, business development, and community advocacy. HomeSight provides mortgages for several current homeowners. First Security Bank and First Fed Bank are other mortgage partners. Jamie Maciejewski, Habitat EJC’s Executive Director, participated in the Housing Fund Board Service Plan creation by providing input, written feedback, and participation in a session to collect feedback from housing providers and adjacent support organizations. Habitat EJC’s input about the housing needs of seniors and people with disabilities added priorities to the plan, particularly around the importance of critical home repairs for senior homeowners, the importance of homeownership in the overall housing spectrum, and the opportunities that exist to prepare lower income renters for successful affordable homeownership. 3. Describe the engagement and participation of lived experts in this project’s development. (2 Points) Habitat involves lived experts at every level of the organization. Our Board of Directors includes a current Habitat homeowner as well as a member who has experienced housing instability. Our staff includes two Habitat homeowners and our volunteer corps has many lived experts participating in various ways in our program. Additionally, our Mason Street Development will have multiple homeowner associations (HOAs) which will allow residents to manage their own communities. Homebuyer education classes offer instruction on how to participate as officers of the HOA. Our goal is to support the homeowners in sharing responsibility for the well-being of their neighborhood and community. Finally, as discussed in Question 2, we have encouraged community input and feedback through the entire development process. 4. Provide a brief description of expertise and/or recent, relevant and successful experiences in delivering similar programs and/or projects, including ability, stability and resources to implement this project or program. (2 points) Over the past 28 years, Habitat EJC has built and sold a total of 79 homes, rehabbed 1, recycled 18 homes (bought back from original Habitat owner, refurbished, then resold to a new Habitat family) and completed critical home repairs on 71 homes, primarily in areas of the county (Quilcene and Brinnon) where lack of public infrastructure is a barrier to new home construction. All homes constructed beginning in 2022 (28 total) are part of our permanent affordability program. 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 21st 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 Cliff Street Cottages – 6 cottage style homes with an active HOA All developments were built on land acquired by Habitat EJC either through an in-kind donation, or purchase. We have broken ground on a 5-cottage development in Port Townsend on San Juan Avenue, called Rosalynn Court. Landes Terrace is a 14-unit development currently under construction