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STATE OF WASHINGTON
Jefferson County
In the Matter of Declaring An Emergency In The
Availability Of Affordable Housing For Low- And Very
Low -Income Households; Requesting Submittal To The
Qualified Electors Of The County Of A Ballot Proposition
To Create A Home Opportunity Fund By Lifting The Limit
On Regular Property Taxes Under Chapter 84.55 RCW
Dedicated For Low -Income Housing And Levying A
Regular Property Tax Under RCW 84.55.105 Dedicated
For Very Low -Income Housing; Providing For the
Expiration Of Both Additional Levies At The End of Seven
Years; And Providing For Implementation Of Programs
With Funds Derived From The Taxes Authorized
RESOLUTION NO. 35-17
WHEREAS, a healthy community is one in which individuals and families have access to basic
needs such as safe, secure and affordable homes, yet throughout Jefferson County homes
remain unaffordable for a significant percentage of County residents; and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) states "families who
pay more than 30 percent of their income for housing are considered cost burdened and may
have difficulty affording necessities such as food, clothing, transportation and medical care,"
and households are severely cost burdened when housing costs (including utilities) exceed 50
percent of household income; and
WHEREAS, HUD found that about half of all renter households in Jefferson County (1,680 of
3,425 renter households) are cost -burdened, paying more than 30% of their household income
for housing costs, and about one in four (895 of 3,425 renter households) are severely cost -
burdened, paying more than 50% for housing; and
WHEREAS, 67% of renters with low-income in Jefferson County are cost -burdened (1,560 of
2,305 low-income renters), and 38% are extremely cost -burdened (875 of 2,305 low-income
renters); and
WHEREAS, 75% (1,120 of 1,485) of renters with very low-income in Jefferson County are cost -
burdened, and 55% (825 of 1,485 very low-income renters) are extremely cost -burdened; and
WHEREAS, the Housing -Needs -Assessment of 2015 by the Washington Department of
Commerce's Affordable Housing Advisory Board found that Jefferson County's for -rent vacancy
was 1 percent or less, while 5 percent is a "natural" vacancy rate, and a scarcity of available
rentals drives up the cost of rentals for all; and
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
WHEREAS, Olympic Community Action Programs ("OlyCAP"), a local non-profit service
organization, reports there are fewer than 600 subsidized low-income housing units in Jefferson
County, with a 6-12 month waiting list to get into a subsidized low-income apartment; and
WHEREAS, the demand for subsidized housing exceeds the supply so that 60%-80% of
households that obtain one of the limited number of HUD Section 8 Rental Assistance Vouchers
that are available in Jefferson County have their Voucher expire before they can find a rental
unit that will accept a Voucher; and
WHEREAS, OlyCAP, Dove House Advocacy Services, and Bayside Housing & Services report they
are frequently obliged to turn away individuals and families in need of safe housing due to the
limited capacity of the facilities they have available; and
WHEREAS, the University of Washington's Runstad Center for Real Estate Studies reports that
first quarter 2017 median resale home prices in Jefferson County increased 19.1 percent
compared to median resale prices for the first quarter of 2016, and rising housing prices reduce
the stock of affordable housing to rent or own; and
WHEREAS, HUD found that approximately one-quarter (3,015 of 10,110) of all owner occupied
households in Jefferson County are cost -burdened, including 13% (1,285 of 10,110) who are
extremely cost -burdened; and
WHEREAS, 55% (1,895 of 3,465) of home owners with low-income in Jefferson County are cost -
burdened, and 30% (1,060 of 3,465 households) are extremely cost -burdened; and
WHEREAS, 65% (1,225 of 1,870) of home owners with very low-income in Jefferson County are
cost -burdened, and 40% (750 of 1,870 households) are extremely cost -burdened; and
WHEREAS, the Housing -Needs -Assessment of 2015 by the Washington Department of
Commerce's Affordable Housing Advisory Board found that Jefferson County was one of only
three counties in Washington State where home ownership rates fell 3% or more from 2000 to
2012; and
WHEREAS, On January 26, 2017 the Annual Point in Time Count conducted as required by RCW
43.185C.030 found 189 people in Jefferson County were homeless; and at the same time,
OlyCAP counted an additional 43 people couch surfing or living in conditions unfit for human
habitation, and both of these figures were higher than in the preceding year; and
WHEREAS, Washington State's Superintendent of Public Instruction research in 2015-2016
found over 100 homeless students in Jefferson County (including those doubled -up, meaning
those who share the housing of other persons due to loss of housing or family economic
hardship), and such adverse childhood experiences can have profound and long-lasting
negative consequences;
WHEREAS, one in five children in Jefferson County schools are in families living in poverty; and
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
WHEREAS, the median age of Jefferson County's housing stock is 34 years old, with many units
significantly older than that, requiring repair, maintenance and weatherization that is often not
affordable to low-income households; and
WHEREAS, many low-income elderly households in Jefferson County pay more than 50 percent
of their income on housing costs and face challenges in repairing their homes without financial
assistance; and
WHEREAS, local housing affordability efforts save the public money by reducing expenses for
social services, emergency room medical care, triage, law enforcement and other costs
associated with temporary and chronic homelessness;
WHEREAS, the Center for Housing Policy has summarized research that shows the critical link
between stable, decent and affordable housing and positive health outcomes; and
WHEREAS, children in our community facing insecure housing and homelessness experience
Adverse Childhood Experiences, which the U.S. Centers for Disease Control and Prevention has
found negatively affect future health, opportunity, violence victimization and perpetration -
effects that are lifelong; and
WHEREAS, in 2016 Jefferson County, the City of Port Townsend, Jefferson Healthcare and
Discovery Behavioral Health jointly adopted a Community Health Improvement Plan, which
found that the lack of affordable housing is a social determinant of health and an ongoing root
cause of poor health, and further found that improvements in the social determinants of health
would have a significant positive impact on chronic disease prevention and the quality of life of
County residents; and
WHEREAS, in 2015, the City of Port Townsend commissioned a Housing Element: Inventory and
Needs Assessment which documented the scarcity of affordable housing units in Port
Townsend; and
WHEREAS, the Economic Development Council of Jefferson County — Team Jefferson has found
that a severe shortage of affordable workforce housing is a major barrier to economic
development throughout Jefferson County, one that often prevents employers from being able
to recruit or retain qualified employees, particularly for lower wage early career positions; and
WHEREAS, more affordable housing options located near employment supports economic
development, and is good for the environment, preventing long commutes with associated
pollution, and commuting expenses; and
WHEREAS, local funding can leverage the creation and preservation of additional homes that
are affordable to low-income and/or very low-income households; and
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
WHEREAS, Jefferson County and the City of Port Townsend have long recognized a shortage of
safe, sanitary dwelling accommodations for low-income households and senior citizens, and
jointly adopted a Housing Action Plan in 2006 recommending a variety of strategies to increase
the availability of affordable housing, including a recommendation to submit for voter approval
a special property and/or sales tax levy for a limited number of years to help fund affordable
housing programs and projects; and
WHEREAS, the proposed Jefferson County Home Opportunity Fund, if approved by the voters,
would generate $13,000,000 - $13,900,000 in local funding over a seven year period that will be
used as matching money to leverage other private and public funding to create and preserve
affordable housing serving individuals and families throughout Jefferson County; and
WHEREAS, the Home Opportunity Fund is modeled after similar successful programs in
Bellingham and Vancouver, WA; and
WHEREAS, Bellingham citizens passed a Home Fund in 2012 for a 7 -year combined 36C levy
(comprised of 24C for affordable housing for very low income households, and 12C for low
income households), which, in its first four years, raised and invested $12 million in affordable
housing, and leveraged an additional $63.3 million from other sources in that housing — a ratio
of 5 -to -1; and
WHEREAS, a Jefferson County Home Opportunity Fund could likewise be used by housing
providers to leverage additional funds for affordable housing in Jefferson County; and
WHEREAS, Jefferson County ("the County") can efficiently administer the Jefferson County
Home Opportunity Fund, in a manner similar to how the County has efficiently administered
the Conservation Futures Fund for the past fifteen years; and
WHEREAS, Chapter 84.55 RCW generally limits the dollar amount of regular property taxes that
a County may levy in any year, but RCW 84.55.050 allows a County to levy taxes exceeding such
limit by majority approval of the voters, and allows a County to include in the ballot proposition
a limit on the purpose for which the additional taxes levied will be used and to provide for the
expiration of the additional taxing authority; and
WHEREAS, the proposed additional levy under RCW 84.55.050 is within the limitations imposed
by RCW 84.52.043; and
WHEREAS, RCW 84.52.105 authorizes a County to impose an additional regular property tax
levy to finance affordable housing for very low-income households, and to provide for the
expiration of the additional taxing authority before or no later than after ten years, when
specifically authorized to do so by a majority of the voters of the taxing district voting on a
ballot proposition authorizing the levy; and
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
WHEREAS, RCW 36.32.415 authorizes a County to assist in the development or preservation of
publicly or privately owned housing for persons of low-income by providing loans or grants of
general county funds to the owners or developers of the housing, to finance the acquisition,
construction, or rehabilitation of low-income housing; and
WHEREAS, the Comprehensive Plans of Jefferson County and the City of Port Townsend, in
compliance with Washington State's Growth Management Act, have adopted goals and policies
that address the need to ensure adequate housing for future population growth which
encompasses all income levels including low-income, cost -burdened, and special needs
households; and
WHEREAS, a Home Opportunity Fund supported by a levy, and dedicated to creating and
preserving affordable housing for low and very low-income households, is consistent with the
Housing Elements of the locally adopted Comprehensive Plans of Jefferson County and the City
of Port Townsend; and
WHEREAS, Jefferson County is currently completing a required periodic update of its
Comprehensive Plan and the development regulations which implement the Plan, and in
preparing the update, the County is exploring flexible, innovative development regulations,
land use and zoning changes, permit fee adjustments, and other incentives to support the
development of affordable housing; and
WHEREAS, in support of affordable housing and consistent with state law found in RCW
36.01.290, the County's exploration of development regulations includes researching
regulations to permit temporary transitory accommodations on properties hosted by churches,
non-profit organizations and others, as a path to more stable and permanent housing; and
WHEREAS, Jefferson County's Department of Community Development and the
Environmental Health Division of Public Health are committed to supporting affordable housing
by making further process improvements and streamlining permitting for land use, building,
septic and water, and these improvements will benefit affordable housing, including housing
projects that would be undertaken with support from the Home Opportunity Fund;
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
NOW THEREFORE, THE JEFFERSON COUNTY BOARD OF COMMISSIONERS DOES
HEREBY RESOLVE:
Section 1. Findings.
The Board of County Commissioners makes the following findings and declares as follows:
A. The "Whereas" recitals contained in the preamble of this Resolution are hereby adopted in
their entirety as findings.
B. Promoting and preserving housing for low-income and very low-income households
contributes to the stability of families and neighborhoods; helps preserve the physical condition
of residential properties; and addresses the shortage of safe, sanitary, affordable housing by
maintaining and enhancing the supply of rental and owner -occupied housing.
C. The additional taxes to be levied under this Resolution will enable the County to provide
assistance for the housing needs of low- and very low-income households and thereby work to
fulfill the purposes of federal, state and local laws and policies, including, without limitation,
Washington State's Growth Management Act and the Comprehensive Plans of Jefferson County
and the City of Port Townsend.
D. Based on the preceding findings, the Jefferson County Board of Commissioners hereby finds
that an emergency exists with respect to the availability of housing that is affordable to low-
income households and with respect to the availability of housing that is affordable to very low-
income households in Jefferson County.
Section 2. Definitions.
The following terms used in this Resolution shall have the definitions stated below, unless the
context otherwise clearly requires:
A. "Affordable housing" means residential housing for rental or private individual
ownership which, as long as the same is occupied by low-income households, requires
payment of monthly housing costs, including utilities, other than telephone, of no more
than 30 percent of the household's income.
B. "Area median income" or "AMI" means annual median family income for the statistical
area or division thereof including Jefferson County for which median family income is
published from time to time by the U.S. Department of Housing and Urban
Development, or successor agency, with adjustments according to household size.
Figures are issued for households of various sizes. When given as a single figure, it
refers to a four -person household.
C. "Low-income housing" means housing that will serve "low-income households."
D. "Household" means a single person, family or unrelated persons living together.
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
E. "Low-income household" means a household with income less than or equal to eighty
percent (80%) of area median income.
F. "Very low-income household" means a household with income less than or equal to fifty
percent (50%) of area median income.
To the extent permitted by applicable law, income determinations may take into account such
exclusions, adjustments and rules of computation as may be prescribed or used under federal
housing laws, regulations or policies for purposes of establishing income limits, or as may be
established in County housing and community development plan documents consistent with
federal laws, regulations or policies.
Section 3. Proposition to Authorize Lew of Additional Regular Property Taxes; Financing
Plan.
The Jefferson County Board of Commissioners submits to the qualified electors of the County a
proposition as authorized by RCW 84.55.050(1), to exceed the levy limitation on regular
property taxes contained in Chapter 84.55 RCW for property taxes levied in 2017 through 2023
for collection in 2018 through 2024, respectively. The proposition would also authorize an
additional property tax levy for very low-income housing under RCW 84.52.105. The
proposition for two levies combined would raise approximately $1,900,000 per year, generating
an estimated $13,000,000-$13,900,000 in aggregate over a period of seven years.
A. The proposition would permit the County to increase its regular General Fund property tax
levy for seven years pursuant to RCW 84.55.050 by up to $0.12 per $1,000 of assessed
valuation dedicated for low-income housing, and resulting in a total General Fund tax levy not
to exceed $1.80 per $1,000 for collection in 2018. Levies for collection in 2019-2024 would be
based on the levy lid lift for collection in 2018 and subject to the limitations prescribed by
Chapter 84.55 RCW. All the levy proceeds under the levy lid lift under RCW 84.55.050 shall be
used for affordable housing for low-income households as specified in this Resolution.
B. The proposition would also authorize the County to impose an additional regular property
tax levy for seven years dedicated for very low- income housing pursuant to RCW 84.52.105 of
approximately $0.24 per $1,000 of assessed valuation to generate $1,200,000 in 2018. Levies
for collection in 2019-2024 would be based on the levy for collection in 2018 and subject to the
limitations prescribed by Chapter 84.55 RCW. The limitations in RCW 84.52.043 do not apply to
the tax levy authorized by this part. All the levy proceeds under RCW 84.52.105 shall be used
for affordable housing for very low-income households as specified in this Resolution and the
levy may not be imposed until the Board of County Commissioners adopts a Home Opportunity
Fund Financing Plan, as set forth in this Resolution.
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
C. The taxes authorized by this proposition will be in addition to the maximum amount of
regular property taxes the County would have been limited to by RCW 84.55.010 in the absence
of voter approval under this Resolution, plus other authorized lid lifts. Thereafter, such levy
amount would be used to compute limitations for subsequent years as allowed by chapter
84.55 RCW. Pursuant to RCW 84.55.050(5), the maximum regular property taxes that may be
levied in 2024 for collection in 2025 and in later years shall be computed as if the limit on
regular property taxes had not been increased under this Resolution.
Section 4. Levy Revenues.
A Unless otherwise directed by Resolution, all revenues collected from the additional taxes
authorized pursuant to this Resolution shall be deposited initially in the Home Opportunity
Fund to be used as set forth in Section 5 and as described in the Home Opportunity Fund
Financing Plan, as may be adopted by the Board of County Commissioners under Sections 5 and
6 of this Resolution. The Finance Director is authorized to create other sub -funds or accounts
within the Home Opportunity Fund as may be needed or appropriate to implement the
purposes of this Resolution; provided that all funds raised from the levy authorized by RCW
84.52.105 shall be segregated for costs related to affordable housing for very low-income
households.
B. Pending expenditure for the purposes authorized in this Resolution, amounts deposited in
the Home Opportunity Fund pursuant to this Resolution may be invested in any investments
permitted by applicable law. All investment earnings on the balances shall be deposited into
the Home Opportunity Fund. Amounts received by the County from payments with respect to
loans, recovery of grants, insurance proceeds or proceeds of sale or disposition of property
("program income") shall be deposited into the Home Opportunity Fund unless otherwise
specified by Resolution. Any investment earnings and program income derived from revenues
collected from the additional taxes authorized pursuant to this Resolution shall be used for the
purposes set forth in this Resolution and as authorized by the Board of County Commissioners.
Section S. Administration: Use of Proceeds.
A The levy funds shall be used to pay for affordable housing programs by eligible organizations
which create or preserve affordable housing for low-income and very low-income households,
and to pay for costs to administer the Home Opportunity Fund; provided that all funds raised
from the levy authorized by RCW 84.52.105 shall be dedicated to these costs related to
affordable housing for very low-income households.
B. Jefferson County Public Health, or such other department as may be designated by
Resolution later adopted by the Board of County Commissioners, shall administer the Home
Opportunity Fund funded with the additional taxes authorized pursuant to this Resolution. Use
of funds from the Home Opportunity Fund must be approved by the Board of County
Commissioners, and shall be implemented consistent with the Home Opportunity Fund
Financing Plan, as adopted by the Board of County Commissioners and as may thereafter be
amended by the Board of County Commissioners from time to time.
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
C. The Board of County Commissioners, upon recommendation of awards by the Home
Opportunity Fund Board described in Section 7 of this Resolution, may approve grants and/or
loans to eligible organizations for projects to create or preserve affordable housing for low -
and/or very low-income households, and may include and modify such grant and loan
conditions as the Board of County Commissioners may deem appropriate. Administration
funding is intended to be used for administration of the use of levy proceeds, including but not
limited to developing the Home Opportunity Fund Financing Plan, preparing and reviewing loan
and grant applications, monitoring and auditing performance and compliance with loan and
grant requirements, and paying for financial accounting, legal, and other administrative services
necessary to administer the Home Opportunity Fund and its awards.
Section 6. Home Opportunity Fund Financine Plan.
A. The Jefferson County Public Health Department, or other such department as may be
designated by Resolution, shall prepare a Home Opportunity Fund Financing Plan ("Financing
Plan"). The Financing Plan shall cover the period commencing in 2018 and continue through at
least 2024; shall specify the plan for use of funds raised by the levy authorized by RCW
84.52.105 for very low-income affordable housing, as well as the plan for use of funds raised by
the levy lid lift authorized by 84.55.050 for low-income affordable housing; shall be consistent
with this Resolution as may be amended; and shall be consistent with either the locally adopted
or state -adopted comprehensive housing affordability strategy, required under the Cranston -
Gonzalez national affordable housing act (42 U.S.C. Sec. 12701, et seq.), as amended; and shall
be approved by Board of County Commissioners prior to the additional property tax levy being
imposed pursuant to RCW 84.52.105.
B. A Draft Financing Plan describing a draft plan for the administration and use of funds from
the Home Opportunity Fund is attached to this Resolution as Exhibit A. A Public Hearing shall
be held on the Draft Financing Plan prior to finalizing and adopting a final Financing Plan.
C. The expenditure of all funds raised pursuant to this Resolution shall be as set forth in the
Financing Plan as adopted by Board of County Commissioners. The Board of County
Commissioners may amend the Financing Plan in the future as may be determined necessary or
appropriate.
D. The Board of County Commissioners shall appropriate from the Home Opportunity Fund, as
part of the County budget or supplemental budget, such monies derived from the levies
authorized in this Resolution as it deems necessary to carry out the Financing Plan.
E. Upon recommendation for award by the Home Opportunity Fund Board, the Board of
County Commissioners may approve may approve grants and/or loans to eligible organizations
for projects to create or preserve affordable housing for low- and/or very low-income
households, and may include and modify such grant and loan conditions as the Board of County
Commissioners may deem appropriate to carry out the purposes of this Resolution, subject to
the appropriation of sufficient funds and consistent with the Financing Plan approved by the
Board of County Commissioners.
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
Section 7. Home Opportunity Fund Board.
A Home Opportunity Fund Board appointed by the Board of County Commissioners shall advise
the Board of County Commissioners and Jefferson County Public Health regarding
administration of the Home Opportunity Fund, the yearly rounds of Requests for
Proposals/Notice of Funding Availability, evaluate and recommend to the County
Commissioners awards to eligible organizations of grants or loans for projects to create or
preserve affordable housing for low and/or very low-income households in Jefferson County
pursuant to state and local requirements and the Home Opportunity Fund Financing Plan
prepared pursuant to this Resolution as it may hereafter be amended. The Home Opportunity
Fund Board shall also assist in monitoring the progress, performance and accomplishment of
the Home Opportunity Fund and the projects it funds, and report such findings to the Board of
County Commissioners.
Section 8. Election - Ballot Title.
The Board of County Commissioners hereby requests that the Jefferson County Auditor submit
a proposition with a concise statement prepared by the Jefferson County Prosecuting Attorney,
to the qualified electorate of the County for a vote at the November 7, 2017 general election, in
a form consistent with the requirements of law and consistent with this Resolution, such as in
the form set forth in this Resolution, as follows:
JEFFERSON COUNTY PROPOSITION NO. 1
LEVY TO ESTABLISH THE HOME OPPORTUNITY FUND
TO CREATE OR PRESERVE LOW- AND VERY LOW-INCOME HOUSING
The Jefferson County Board of Commissioners passed Resolution No. 35-17 declaring an
Emergency in Jefferson County in the availability of affordable housing for low- and very
low-income households, and referring the following ballot proposition to the voters:
Proposed: Establish a fund providing affordable housing for low- or very low-
income households including disabled people, veterans, seniors, and families
with children, by increasing the County's regular property tax levy up to
$0.12/$1,000 for low-income housing (for a maximum rate of $1.80/$1,000
assessed value collected in 2018); and authorize a separate levy under RCW
84.52.105 of approximately $0.24/$1,000 to generate $1,200,000 in 2018; each
levy for seven years and subject to limitations under RCW 84.55.
Should this proposition be:
APPROVED? ...............❑
REJECTED? ................. El
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Resolution No. 35-17 Declaring An Emergency In Affordable Housing And Submitting A Ballot Proposition
Section 9. Corrections.
The Jefferson County Prosecuting Attorney, the County Auditor, Clerk of the Board, or their
designee, is authorized to make necessary clerical corrections to this Resolution including, but
not limited to, the correction of scrivener's or clerical errors, references, Resolution numbering,
section/subsection numbers and any references thereto.
Section 10. Severability.
If any section, sentence, clause or phrase of this resolution should be held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall
not affect the validity or constitutionality of any other section, sentence, clause or phrase of
this resolution.
APPROVED AND ADOPTED this 31St day of July, 2017, in Port Townsend, Washington.
�i T v r
lir
SEAL
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ATTEST:
Carolyn ery
Deputy Clerk of the B rrd
APPROVED AS TO FORM:
Philip C. Hunsucker
Chief Civil Deputy Prosecuting Attorney
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
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Kathleen Kler, Chair
s
ate Dean, Member
LC.t.
Davi Su Ii n, ember���
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Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Jefferson County
Home Opportunity Fund
Financing Plan
DRAFT July 7, 2017
Preamble to this DRAFT
Everyone deserves a home. Yet in Jefferson County, too many people - especially families
with children, seniors, and low-income workers - cannot find affordable homes to rent or
buy. Over 100 children enrolled in local schools are homeless. One in five children in our
schools are in families living in poverty, and their housing is insecure as rents and property
values rise. Many seniors living on Social Security face similar insecurity in their housing, as
do many our most vulnerable residents who are veterans, people with disabilities, and
victims of violence. Local businesses struggle to attract and retain talented young people,
because there often is no affordable housing available.
Over the last several months, representatives from local health, mental health, and housing
providers have met regularly to study the issues, the challenges, and possible solutions. They
conclude that affordable housing stocks are inadequate and shrinking, despite the best
efforts of local organizations and citizens. They see that local organizations have the capacity
to create more affordable housing, but that they lack enough funding to do so.
Inspired by the success of Bellingham and Vancouver Washington in dealing with similar
issues, a proposal has been developed for a powerful plan to create and preserve affordable
housing throughout Jefferson County - the Jefferson County Home Opportunity Fund. They
also worked with County staff on a suitable model for administering the fund, the Financing
Plan, which follows this Preamble.
Creating the Jefferson County Home Opportunity Fund requires a vote of Jefferson County
citizens. On July 24, 2017, the Board of County Commissioners (the BOCC) will consider
declaring an Affordable Housing Emergency in Jefferson County and placing before the
voters a property tax levy to finance creating and preserving affordable housing for low- and
very low-income households. On November 7, 2017, the voters of Jefferson County will vote
on the ballot measure.
If approved by a majority of voters, the Home Opportunity Fund will be funded by a seven-
year limited -term property tax levy in 2018-2024, set at 36 cents per $1,000 assessed
valuation in 2018. The Home Opportunity Fund will raise a total of $13-13.9 million over
the seven-year period, all of it dedicated to creating and preserving affordable housing in
Jefferson County.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 1 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Two thirds of the levy (24 -cents in 2018) will be dedicated to addressing the housing needs
of very low-income households (income 50% and below the Area Median Income), under
the authority of state law RCW 84.52.105. One third (12 -cents in 2018) will be dedicated to
affordable housing for low-income households earning 80% and below of the Area Median
Income, under the authority of RCW 84.55. These are the same proportions as Bellingham's
successful program.
RCW 84.52.105 requires that the County adopt:
If an affordable housing financing plan to serve as the plan for expenditure
of funds raised by a levy authorized under this section, and the governing
body determines that the affordable housing financing plan is consistent
with either the locally adopted or state -adopted comprehensive housing
affordability strategy, required under the Cranston -Gonzalez national
affordable housing act (42 U.S.C. Sec. 12701, et seq.), as amended."
In order to succeed, we will need a Financing Plan that fits our county. The participation of
the citizens of Jefferson County in developing and implementing solutions through open and
public processes is critical. The Jefferson County Conservation Futures program has served
as a useful model. Consultation with administrators and agencies in Bellingham and
Vancouver has been crucial in the development of this draft.
The following draft Financing Plan lays out the purpose, objectives, and procedures for
expenditure of all housing levy funds. If the ballot measure is approved by the voters in
November 2017, a final Financing Plan will be prepared for a public hearing, prior to formal
adoption by the Board of County Commissioners through a process concluding in December
2017.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 2 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Jefferson County
Home Opportunity Fund Financing Plan
Table of Contents
Introduction
Overview
.................................................
Program Objectives ...............................
Levy Amount, Duration, Tax Rate,
Legislative Authority .......................
Eligible Fund Uses ..................................
Household Eligibility
3 Process for Considering Projects and
3 Awarding Funds ............................
4 Eligible Costs ........................................
Eligible Fund Recipients ....................
5 Financing Methods ..............................
5 Affordability Period ............................
Geographic Focus ................................... 6
Disbursement of Home Opportunity
Funds................................................... 7
Home Opportunity Fund Board .,......... 7
Introduction
Monitoring...........................................
Plan Amendments
Appendix A: Responsibilities of
Fund Board
Appendix B: Glossary
8
8
9
10
10
11
11
12
13
As an affordable housing emergency exists in Jefferson County, the voters of Jefferson County
have established the Home Opportunity Fund to address the housing needs of the many low -
and very -low-income households who lack secure, safe, adequate, stable or affordable
housing.
The Home Opportunity Fund will provide grants and loans to eligible organizations and
developers to create or preserve housing that will remain affordable to low-income and very
low-income citizens over the long term. The County is accountable to the citizens for
achieving this goal, and wisely managing the public resource.
Administration of this Financing Plan is meant to provide the citizens of Jefferson County
with opportunities to participate in developing and implementing solutions through open
and public processes.
Overview
Under this Plan, the Board of County Commissioners (BOCC) will appoint a Home
Opportunity Fund Board (Fund Board). The Fund Board will evaluate proposed projects
from non-profit and for-profit affordable housing organizations, and make funding
recommendations to the BOCC. Awards of loans and grants from the Home Opportunity Fund
will be approved by the BOCC. Projects to create or preserve affordable housing will be
completed by the awardees, and monitored by the Fund Board and County staff.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 3 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Upon voter approval of a levy, and in accordance with state regulations at RCW 84.52.105, a
final version of the Financing Plan will be adopted by the BOCC prior to implementing the
levy. Following is an estimated timeline:
• November 2017 - Ballot measure put before voters.
• December 2017 - Public Hearing & Adoption of final Financing Plan.
• December 2017 -early 2018 - appointment of the Home Opportunity Fund Board.
• January 2018 - Property tax increase effective January 1St, for seven years only.
• Fall 2018 - First annual Request for Proposals/Notice of Funding Availability.
• Proposals evaluated by Home Opportunity Fund Board; loan and grant
recommendations made to BOCC.
• BOCC considers and approves awards.
• 2019 - Projects to create or preserve affordable housing begin.
• Project awards take place for 7 years or more, until all funds are spent on housing.
• County monitors all projects for compliance.
Program Objectives
The Home Opportunity Fund will:
• Create or preserve affordable homes for low-income households (1580% of Area
Median Income - AMI) and very low-income households (<-50% of AMI).
• Support projects that will remain affordable for forty years or more, with an
exception for rehabilitation projects with shorter life expectancy.
In addition, six other objectives will guide implementation of the Home Opportunity Fund:
• A special priority for investing in affordable housing in communities distributed
throughout Jefferson County.
• Leverage Home Opportunity Fund investments with resources from other sources,
such as other grants and loans, donations, volunteer labor, private funding, and
supportive services.
• Provide affordable housing for low-income and very low-income vulnerable
populations (for example, families with children, people with disabilities, victims of
violence, seniors, veterans, and individuals with mental/behavioral health or
substance abuse issues).
• Provide affordable housing options for the low-income workforce.
• Create a variety of affordable housing choices, including mixed -income
developments.
• Enable housing organizations to seize time -sensitive opportunities that address these
objectives.
Draft Financing Plan - rev. 7/07/17 Home Opportunity Fund Page 4 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Levy Amount, Duration, Tax Rate, Legislative Authority
If approved, the seven-year levy at an initial combined rate of approximately 36 cents per
$1,000 assessed property value in 2018 will generate an estimated $1.9 million in the first
year to be spent on creating or preserving affordable housing. During the entire seven years,
the levy will raise a total of approximately $13-$13.9 million (depending, in part, on the
amount of new construction). At 36 cents per $1,000 assessed property value in 2018, on a
home valued at $250,000, this is equal to $90 in additional annual taxes.
The revenue will be collected and dedicated for use under two authorities:
1) Two thirds of the revenue (approximately 24 cents of the levy in 2018) will be collected
under RCW 84.52.105 to finance affordable housing for very low-income households
(incomes :550% of the Area Median Income - AMI). The limitations of RCW 84.52.043 do
not apply.
2) One third of the revenue (12 cents of the levy in 2018) would be collected under RCW
84.55.050. The purpose of this levy lid lift is to finance affordable housing for low-income
households (incomes :580% of AMI). The limitations of RCW 84.52.043 do apply.
Revenues will be held in a dedicated Home Opportunity Fund, separate from the County's
General Fund, and the funds will be spent only on eligible uses. Revenue under RCW
84.52.105 and associated expenditures dedicated for affordable housing for very low-
income households will be tracked within the Home Opportunity Fund separately from
revenue within the Fund under the levy lid lift under RCW 84.55.050 and its associated
expenditures for affordable housing for low-income households. Eligible uses include grants
and loans to create or preserve affordable housing, as described below. To maximize the
number of affordable homes created or preserved, Home Opportunity Fund awards may not
be used for rent assistance or emergency shelter.
Eligible Fund Uses
Home Opportunity Fund grants and loans may be used for:
• Building new affordable housing,
• Converting existing market rate property to affordable housing,
• Preserving the stock of affordable housing through acquisition or rehabilitation,
• Renovating affordable housing through low-cost revolving loans managed through
housing organizations or financial institutions,
• Preserving or extending the life of existing publicly subsidized housing,
• Creating affordable housing, allowing up to 15% of the award to be used for a limited
period to provide ancillary services to residents, when such services are integral to
establishing the project,
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 5 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
• Acquiring land or providing infrastructure for affordable housing,
• Pre -development costs, such as engineering, design, legal fees, permit submittals, etc.,
• Administering the Home Opportunity Fund and project awards - County staffing and
support expenditures not to exceed 10% cumulatively over the first seven years.
Household Eligibility
Limits will be adjusted annually based on HUD's published limits for Jefferson County.
Very Low -Income: household incomes 550% of AMI (using funds collected under RCW
84.52.105). Examples of the very low-income limits established by HUD for Jefferson County
for 2016 are:
Very Low -Income
Persons in
household
Income
Limit
2016
Gross Rent affordable
(see Glossary)
2016
1
$22,550
$564
2
$25,800
$645
3
$29,000
$725
4
$32,200
$805
Low -Income: household incomes <-80% of AMI (using funds collected under RCW 84.55).
Examples of the low-income limits established by HUD for Jefferson County for 2016 are:
Low -Income
Persons in
household
Income
Limit
(2016)
Gross Rent affordable
(see Glossary)
(2016)
1
$36,050
$901
2
$41,200
$1,030
3
$46,350
$1,159
4
$51,500
$1,288
Geographic Focus
Funds will be available to housing projects located within and throughout all areas of
Jefferson County.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 6 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Disbursement of Home Opportunity Funds
At least once per year, a Request for Proposals (RFP) or Notice of Funds Availability (NOFA)
will be advertised and affordable housing proposals accepted. Upon evaluation and
recommendation by the BOCC-appointed Fund Board, funding from the Home Opportunity
Fund will be disbursed by the BOCC, in the form of grants or loans, for eligible affordable
housing projects. Within the Home Opportunity Fund, expenditures of revenues collected
under RCW 84.52.105 and expenditures of revenues collected under RCW 84.55.050 will be
tracked separately.
The Fund Board may recommend allocating a portion of the Fund to be available for short-
term loans to developers to take advantage of time -sensitive opportunities that address the
fund objectives. Such loans may be considered by the Fund Board outside of the regular
schedule of RFPs/NOFAs and be recommended to the BOCC after conducting due diligence.
Home Opportunity Fund Board
The BOCC will appoint the Home Opportunity Fund Board. Jefferson County Public Health
will staff the Fund Board in implementation of this Plan. Ultimate accountability and
oversight of the levy and the Fund will lie with the elected Jefferson County BOCC, with
assistance under the statutory authorities of the elected Auditor, Assessor, and Treasurer.
Composition of the Fund Board: Nine voting members of the Fund Board will be appointed
by the BOCC to serve set four-year terms. Terms of the initial appointments will be of
staggered duration, to provide stability to the Fund Board's composition in future years. The
Fund Board will continue to exist as long as there is a fund balance.
The nine voting members will include:
• a person from each Commissioner district ......................................... (3)
• a member, each, from Port Townsend Planning Commission, and
Jefferson County Planning Commission ............................................... (2)
• a person with expertise in building or design ..................................... (1)
• a person with expertise in finance &/or loan underwriting ............. (1)
• a person with expertise in population health/social determinants
ofhealth................................................................................................. (1)
• a person who has low- or very low-income ........................................ (1)
Total (9)
The BOCC may also appoint additional non-voting Fund Board members, who can provide
expertise in affordable housing, real estate, finance, services for low- and very low-income
people, or other expertise that would be of assistance the Fund Board.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 7 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Process for Considering Projects and Awarding Funds
All meetings of the Home Opportunity Fund Board shall be conducted in compliance with
Washington State's Open Public Meetings Act. The Fund Board, with the assistance of County
staff, will:
• develop project criteria and priorities conforming with this Plan, to be formally
adopted by the BOCC
• issue Requests for Proposals (RFPs)/Notices of Funds Availability (NOFAs),
• evaluate Proposals with regard to adopted criteria, priorities, and this Plan's
objectives,
• recommend eligible projects for grants and/or loans within available funds for
potential approval by the Jefferson County Board of County Commissioners,
• track and report progress of projects and the status of the Fund to the public in a
manner that is transparent and accessible,
• monitor project compliance with grant and loan conditions.
(See Appendix A for a more detailed list of Fund Board responsibilities.)
The Fund Board may recommend awards totaling less than the funds available in a given
year, and unallocated funds will remain in the Home Opportunity Fund's fund balance for
future allocations. The Fund Board may also recommend whether or not to consider awards
committing funds from future years from the Housing Opportunity Fund.
Final approval of grants and/or loans under this program will rest with the BOCC. The Fund
Board may recommend that an award be rescinded due to lack of significant progress.
Public Health staff will coordinate with other County officials to develop project grant and
loan contracts and to properly account for the Home Opportunity Fund.
Eligible Costs
Funds will be disbursed to awardees on a reimbursement basis for eligible costs, which
include but are not limited to:
• Appraisals
• Architectural fees
• Construction, including sales tax
• Development fees and permits
• Engineering fees
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 8 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
• Environmental assessments and fees
• Inspections and surveys
• Insurance
• Interest
• Professional services
• Purchase/acquisition of land and/or buildings
• Closing costs
• Ancillary services associated with a capital project.
Monitoring to ensure projects comply with maintaining units in affordable status for 40
years will be a cost to funded projects, which the projects will be required to endow upon
award.
Eligible Fund Recipients
Through the County selection process, priority will be given to applicants with a
demonstrated ability to develop, own, and/or manage affordable housing. Applicants that do
not have previous experience in these areas will be expected to propose an appropriate
relationship with an entity that does have this experience.
1) Nonprofit agencies: Eligible nonprofits must have a charitable purpose. Preference will
be given to nonprofits that have housing as part of their mission. Nonprofit agencies will
be required to submit articles of incorporation and documented proof of nonprofit status.
2) Any corporation, limited liability company, general partnership, joint venture, or limited
partnership created and controlled by a nonprofit or public corporation in order to
obtain tax credits or for another housing -related objective approved by the County.
3) The Peninsula Housing Authority, which is a governmental agency.
4) Private for-profit firms/property owners: Eligible for -profits must have experience
developing, owning, and managing the type of housing proposed (multifamily or single
family, rental or owner -occupied). Private for-profit firms can include partnerships
between one or more firms, such as a building contractor and a property manager.
Private for-profit firms may also partner with nonprofit or public agencies as needed to
provide sufficient capacity to develop, own and operate affordable housing on a long-
term basis.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 9 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
To be eligible for Home Opportunity Funds, applicants must demonstrate that they have the
organizational capacity to:
• complete the project and meet project goals for affordable housing,
• manage the on-going operations of the project
• repay any loans,
• manage any revolving loan programs, if part of the project,
• provide on-going services to project residents, if such services are a necessary part of
the project.
Financing Methods
Financing through the Home Opportunity Fund for acquisition and capital projects may be
made through a grant and/or by a loan at prime rate or less. Loan terms will be negotiated
by the County and will be secured by a deed of trust that states the units will be available to
a household at <_50% or s80% of AMI for 40 years.
A covenant or other instrument will be recorded against the property that requires
continued use of the property for low or very low-income housing for the period of
affordability and for any period for which a loan is extended.
Sale of a project during the loan term will require County consent. Loan payments to the
County will be deposited into the Home Opportunity Fund. Payments will be reallocated to
low-income and very low-income housing projects according to priorities established in the
current Financing Plan and upon recommendation of the Fund Board.
An incentive structure for private property owners who wish to convert existing market -rate
units to affordable units may be developed by the Fund Board for approval by the BOCC.
Affordability Period
There will be a required affordability period of at least 40 years for units built, rehabilitated,
or preserved with levy funds. The affordability period will be secured with a covenant or
other instrument. If a property is removed from the affordable housing stock during the
required affordability period, the award must be paid back, and may also face additional
charges as a disincentive. Rehabilitation projects may be excepted from this 40 -year
requirement pursuant to criteria developed by the Fund Board and adopted by the County.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 10 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Monitoring
Prior to completion, projects will be monitored by the Fund Board and County staff for
significant progress. Awards may be recommended for rescission if progress is
unsatisfactory.
Monitoring of project compliance with maintaining units in affordable status for 40 years
will be a cost to funded projects, which the projects will be required to endow upon award.
Plan Amendments
Implementation of this Financing Plan will be evaluated annually by the Fund Board, which
may recommend updates as needed. Approval of any amendments will be the responsibility
of BOCC after first holding a public hearing.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 11 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Appendix A: Responsibilities of Fund Board
Responsibilities of the Fund Board in Year 1 include, but are not limited to:
• Develop Fund Board Bylaws and operational procedures
• Develop timeline for issuance of RFPs, evaluation of proposals, and recommendation
of projects
• Develop Appearance of Fairness policy
• Refine Home Opportunity Fund criteria and priorities regarding qualified projects
and applicants
• Conduct outreach to potential affordable housing organization applicants
• Develop Request for Proposals ("RFP") or Notice of Funds Availability ("NOFA")
• Develop application form
• Develop criteria for evaluating applications, and application scoring method
• Prepare to issue first RFP or NOFA
• Develop requirements for annual reporting by awardees
• Conduct evaluation of Fund Board policies, processes, and forms
• Conduct evaluation of Affordable Housing Finance Plan
• Recommend updates to BOCC as the Fund Board deems appropriate.
• Ensure information about the status of the Home Opportunity Fund and its
RFP/NOFA is easily accessible to the public.
Responsibilities of the Fund Board in Years 2-8 include, but are not limited to:
• Propose updates to policies and forms
• Conduct outreach to affordable housing organization applicants
• Issue RFPs/NOFAs, annually or more frequently
• Evaluate applications
• Make award recommendations to the BOCC
• Monitor projects' annual reports and other monitoring reports to assess projects'
compliance with Home Opportunity Fund purposes,
• Ensure on-going reports are easily accessible to the public about the status of the
Home Opportunity Fund and the projects to create or preserve affordable housing.
• Recommend review or rescission of contracts if necessary.
• Evaluate continuing program needs and effectiveness, and develop
recommendations for the future.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 12 of 13
Resolution No. 35-17 EXHIBIT A: DRAFT FINANCING PLAN
Appendix B: Glossary
Affordable: Housing costs are no more than 30% of household income.
AMI: Area Median Income as determined annually by U.S. Department of Housing and
Development (HUD) for each geographic area, representing the median (middle) income for
households in that area. Figures are issued for households of various sizes. When given as
a single figure, it refers to a four -person household.
(See https://www.huduser.gov/portal/datasets/il/i12017/2017summary odnl
Cost -burdened: Paying over 30% of household income for housing costs.
Extremely Cost -Burdened: Paying over 50% of household income for housing costs.
Gross rent: Rent plus utilities (heat, light, water, sewer, garbage).
Housing costs: For rental properties, gross rent (see below). For owned properties,
mortgage principal and interest, hazard insurance premiums, property taxes, and
homeowner's association fees.
Low-income: Household income less than or equal to (<-) 80% of AMI.
NOFA: Notice of Funds Availability.
RFP: Request for Proposals.
Very low-income: Household income less than or equal to (s) 50% of AMI.
Draft Financing Plan — rev. 7/07/17 Home Opportunity Fund Page 13 of 13
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, Jefferson County Administrator
DATE: July 31, 2017
SUBJECT: Deliberation & Potential Action on a Proposed Resolution Regarding Establishing a
Jefferson County Home Opportunity Fund
STATEMENT OF ISSUE: The Jefferson County Board of Commissioners will deliberate and
potentially take action to adopt a Resolution to declare an emergency in the availability of
affordable housing for low-income and very low-income households in Jefferson County, and
refer to the voters a ballot measure for the November 7, 2017 General Election establishing a
Home Opportunity Fund levy to create or preserve housing stock that is affordable to low- and
very -low income households in Jefferson County.
The Board of County Commissioners held a Public Hearing on Monday, July 24, 2017 and heard
public testimony regarding the proposed Resolution. Commissioners held the Hearing Record
open for additional written testimony until 4:30 p.m., Wednesday, July 26.
At a Special Meeting on July 31, the Board will consider the full Hearing Record of the oral and
written testimony, deliberate on whether to adopt the proposed Resolution, and if adopting a
Resolution, whether to include any amendments.
If the Board votes to pass the Resolution, a ballot measure would be placed on the ballot for
possible approval by a simple majority of voters on November 7, 2017. The ballot measure
would authorize a property tax levy of approximately 36 cents per $1,000 assessed property
value for seven years to establish the Home Opportunity Fund. The levy would generate
approximately $1.9 million per year for seven years, which would be competitively awarded to
eligible housing organizations to build or preserve housing stock throughout Jefferson County
that is affordable to low- and very low-income households. A copy of the proposed Resolution
is attached to this Agenda Request.
ANALYSIS: Jefferson County citizens experience a severe shortage in affordable housing. The
shortage is well-documented and growing, particularly for low- and very low-income
households of the community, including lower -wage workers, and households with disabled
people, veterans, seniors, and families with children. Local housing non -profits and the
Peninsula Housing Authority would do more, but lack the necessary financial resources.
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A Forum on Affordable Housing, held in November 2016 in Blyn, included a presentation about
a successful model for funding the creation and preservation of affordable housing in
Bellingham, and a similar program in the City of Vancouver, WA. Since then, a number of local
housing providers and community members have been exploring how to create the same
opportunity here. They have asked the Board of County Commissioners to give the citizens of
Jefferson County the chance to decide if they want to establish a similar program to create and
preserve affordable housing in Jefferson County, called the "Home Opportunity Fund."
A proposed Resolution for a Home Opportunity Fund would:
1) Adopt findings and declare an Emergency in the availability in Jefferson County of
affordable housing for low- and very low-income households; and
2) Refer to the eligible voters of Jefferson County a ballot proposition on the November 7, 2017
General Election to fund a Home Opportunity Fund to create or preserve affordable housing
for low- and very low-income households in Jefferson County, funded by levying a property
tax of approximately 36 cents per $1,000 assessed property value, for seven years only. The
levy would generate approximately $1.9 million each year, which would be competitively
awarded to housing organizations as grants and loans to create or preserve affordable
housing. During the entire seven-year period (2018-2024), the levy would raise a total of
approximately $13-$13.9 million. At 36 cents per $1,000 assessed property value in 2018, the
table below shows the annual cost for seven years, for different home values:
The levy would be collected and dedicated for use under two authorities:
• Two-thirds (approximately 24 cents of the levy in 2018) would be collected under RCW
84.52.105, and dedicated to finance affordable housing for very low-income households
(whose incomes are less than or equal to 50% of the Area Median Income - AMI).
• One-third (12 cents of the levy in 2018) would be collected under RCW 84.55.050, and
dedicated to finance affordable housing for low-income households (whose incomes are
less than or equal to 80% of AMI).
To establish the levy for affordable housing for very low-income households, RCW 84.52.105
requires the County Commissioners to first declare "the existence of an emergency with respect
to the availability of housing that is affordable to very low-income households." A similar
shortage also exists in the availability of affordable housing for low-income households.
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Home
Annual
T
Monthly Cost
�
Value
Cost
$
250,000
$90
$ 7.50/mo
$
277,000
$100
$ 8.33/mo
$
300,000
$108
$ 9/mo
$
400,000
$144
$ 12/mo
$
500,000
$180
$ 15/mo
The levy would be collected and dedicated for use under two authorities:
• Two-thirds (approximately 24 cents of the levy in 2018) would be collected under RCW
84.52.105, and dedicated to finance affordable housing for very low-income households
(whose incomes are less than or equal to 50% of the Area Median Income - AMI).
• One-third (12 cents of the levy in 2018) would be collected under RCW 84.55.050, and
dedicated to finance affordable housing for low-income households (whose incomes are
less than or equal to 80% of AMI).
To establish the levy for affordable housing for very low-income households, RCW 84.52.105
requires the County Commissioners to first declare "the existence of an emergency with respect
to the availability of housing that is affordable to very low-income households." A similar
shortage also exists in the availability of affordable housing for low-income households.
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The Home Opportunity Fund would be separate from the County's General Fund, and only
expended on eligible affordable housing purposes consistent with a Financing Plan to be
adopted by the BoCC as required by RCW 84.52.105. The Home Opportunity Fund would be
administered by the Public Health Department, with oversight and recommendations by a nine -
member volunteer citizen Home Opportunity Fund Board, appointed by the BoCC. Eligible
housing organizations would submit proposals requesting funding for projects creating or
preserving affordable housing stock. Housing organizations receiving the funds for projects
could leverage the Home Opportunity Fund awards as a match for other funding. For example,
in Bellingham, housing organizations were able to match local housing funds with five times as
much other funding to create and preserve affordable housing.
A Hearing Notice was published in The Leader on July 12 and July 19, 2017. The Commissioners
held a Public Hearing on July 24, and 60 individuals offered oral testimony. The Commissioners
held the Hearing Record for written testimony open until 4:30 p.m. Wednesday, July 26, 2017,
and 111 submittals of written testimony had been received as of this writing.
The Commissioners will deliberate on the full Hearing Record of oral and written testimony, and
consider action on the proposed Resolution at a Special Meeting in the Commissioners'
Chambers scheduled for 9:00 a.m., Monday, July 31, 2017. The July 31 meeting will be for
Commissioner deliberation and action only — no further public comment or testimony will be
taken at the July 31 meeting.
FISCAL IMPACT: Referring a ballot proposition to the November 7, 2017 General Election
would cost approximately $14,000-$16,000 for the County's share of the General Election's
cost. If approved in November by a majority of the electorate, the Home Opportunity Fund levy
would generate approximately $1.9 million per year, starting in 2018, for seven years (2018-
2024), dedicated exclusively for creating or preserving housing affordable to low- and very low-
income households in Jefferson County. The levy would expire at the end of 2024.
RECOMMENDATION: Staff recommends that the Board of County Commissioners deliberate
on the Hearing Record, consider whether to adopt the proposed Resolution, and if adopting a
Resolution, whether to include any amendments.
Iyirdr•Z9n!7I
• Proposed Resolution
REVI ED BY:
i ip Morley; County-Admigi-s-trator Date
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