HousingNews
A monthly newsletter from the Housing Development Consortium of Seattle-King CountyMarch 2004
811 First Avenue, Suite 408 | SeattleWA98104 | 206.682.9541 | |
WHAT’SINSIDE :
•STATE BILLS UPDATEP.4 • AFFINITY GROUPUPDATESP.5 • CONFERENCESJOBSP.7
HDC PROJECT HIGHLIGHT
JC PenneyBuildingRehab Highlights Tensions and Opportunities in Revitalization
The former J.C. Penney Building on East Main Street in downtown Auburn was dedicated on Thursday, February 26. It is the latest project of the Low Income Housing Institute (LIHI). The historic building was converted by LIHIand project architect Otak, Inc. into street-level retail and office space with 24 units of affordable workforce housing,offering an example of structural renewal in both façade and function.
Based on LIHI’s successful Auburn Manor project, members of LIHI’s development team were invited by the City of Auburn to participate in a discussion regarding the aging J.C. Penney building. The subject of the meeting: how to convert a community eyesore into a catalyst for downtown renewal. Sensing an important economic development opportunity, the city was eager to see the structure sold and revitalized as the building had stood prominently vacant on a key downtown corner for over seven years. At one point, the city had even considered acquiring and demolishing the building; however, LIHI’s involvement in the project and the building’s rich history suggested rehab as a preferable alternative.
Interestingly, the structure has historic ties to social causes and the Auburn workforce. The Auburn Investment Company, which represented organized labor, originally owned and built the building in 1921. It was a center for union organizing activities, having served as the headquarters of striking railroad workers in 1922, and had housed the Agricultural Cooperative Society. A community dance hall was once located on the second floor and a bowling alley in the basement. It seems fitting then, that this building would continue to be central in negotiating between the needs of a lower-income workforce and those of a city in flux seeking an economic boost for its downtown.
“We are happy to have had this opportunity to partner with the city of Auburn on this remarkable mixed-use building,” said Sharon Lee, LIHI executive director. “It is a pleasure to be able to preserve a historic building like the J. C. Penney building rather than raze a piece of history.” The upbeat tone gives no indication of what has at times been a rocky partnership, one that has tested the resolve of both parties to stay true to their goals and find common ground. Auburn Mayor Pete Lewis sees affordable housing projects as economic development for the city. The J.C. Penney building renovation is an important tool for revitalizing the Main Street commercial corridor. The city’s goal has been to generate capital spending in the downtown, which has successfully occurred, and to see the commercial lease-up of this key retail space with business that would aid the vitality of the downtown.
To a nonprofit developer like LIHI, the economic generators are important, but a major priority is to provide affordable housing to those who need it most, in this case working families of stable but moderate income. The tension between such goals is not uncommon, but the housing objectives of nonprofit housing developers are frequently put to the test when economic concerns grind up against social considerations. The City of Auburn provided $200,000 in project funding to LIHI, giving it a significant stake in the project’s success and allowing the city to ask for some assurances. The city required that only true retail, strictly defined in writing, could be considered in the commercial lease-up process. Furthermore, the city wanted an agreement to restrict the number of Section 8 assisted units in the building. LIHI agreed to a list of allowable retail which excluded social service uses, and gave assurances of lease compliance and good tenancy for the apartments. But the organization declined the request to restrict Section 8 for the project in spite of community pressure to do so.
Nearing completion at the end of last year, LIHI was given a temporary certificate of occupancy but was refused a permanent certificate until the retail space was leased. The initial temporary certificate allowed only four of the units to be leased and occupied, placing financial strain on the project. The certificate process continued, allowing several more units to be occupied each round of inspection and negotiation, until concern for the projectbudget and the timeline required by funders caused LIHI to send a strong letter to the city council. While all parties realized the important downtown commercial influx that the project would provide,it felt to LIHI as though the inspection process and LIHI’s need to bring the units online were being used as leverage to expedite the lease-up of the retail. Just after the dedication, LIHI received final approval to lease the remaining apartments.
In the end both parties expressed satisfaction with the success of this project and seem to have found mutual respect for the occasionally divergent priorities of economic development and provision of affordable housing. “The project has sparked the development of our downtown,” said Mayor Lewis at the dedication ceremony. “This is an outstanding effort and I applaud all those who worked on the project.” The project has leveraged around $4.5 million in capital investment in the city’s downtown, and discussions are underway with several potential businesses for the retail space.
For Sharon Lee, there is the calm confidence of an experienced director who has seen this situation before. “We think we’ll be able to do more housing projects in Auburn,” she said, “especially if it turns out to be as high quality and well run as we intend.” But she is adamant that groups must stand firm for low-income people and fair housing. “NIMBY battles often change over time,” she says. “Communities look back over time and see that a project was a success, but nonprofit groups need to get over the idea that ‘if we speak up we’ll never get funded.’” Outreach and education are really important in tough areas, but they must be accompanied by firmness to show that community pressure cannot keep groups from providing Section 8 assistance for lower-income people.
HousingNews
A publication of the
Housing Development Consortium of Seattle-KingCounty
811 First Avenue, Suite 408, Seattle, WA98104
Carla Okigwe, executive director | Linda Hall, president
206.682.9541 tel | 206.623-4669 fax
|
Deadline: 25th of every month.
Submit stories, updates, comments, events and job postings
to .
The 24 studio and one-bedroom apartments at the J.C. Penney building will serve downtown workers and households with incomes from 40% to 50% of the area median income. Rents range from $444 to $595 a month. The building contains 3,200 square feet of street level retail space and 1,500 square feet of office space. Major investment and funding for the JC Penney Apartments totals $4.7 million and was provided by: KingCounty, City of Auburn, Enterprise Social Investment Corporation, Washington State Housing Trust Fund, Federal Home Loan Bank, US Bank, Sterling Savings Bank, Key Bank, Impact Capital, Washington Community Reinvestment Association, and the Washington State Housing Finance Commission.
January Housing Forum on KingCounty Civic Television
Watch HDC’s South King County Affordable Housing Forum in streaming video. It features two panel discussions, one comprised of suburban city mayors, with a Q&A period that follows.Visit click on “Other Programs,” then Affordable Housing - Myth Vs. Reality 1-21-04to watch this event.
Housing Authorities on the Cutting Edge of Community Development
The Housing Authority of Snohomish County (HASC) recently backed off plans to use an innovative approach to creating shelter services for the homeless in Everett. HASCdropped its a motion in Snohomish County Superior Court to use eminent domain to purchase the Everett Innbased on public discomfort with the use of this technique when it comes to housing. HASC has not given up on the project and is now exploring alternative ways to make the shelter a reality.
The King County Housing Authority (KCHA) is implementing a new philosophy toward its neighborhood development efforts in White Center. Looking at the wider goal of community revitalization, KCHA has made strategic purchases of problem properties in the community surrounding their projects. KCHA is putting the finishing touches on $6.2 million in repairs to a property formerly known as “The Cones.” Once a neighborhood eyesore, the property is now revamped and renamed “ArborHeights.” A public opening will be held on March 5 at 10:30am. Stepping into this new role as a community revitalization agency, KCHA recognizes it must take a “big picture” view of White Center in order to be effective in achieving housing goals in the community.
Source: Seattle Times, 1/21/04 “Agency drops bid to force sale of motel for homeless shelter,” & Seattle Times, 1/23/04, “With broad view, agency focuses on White Center”
WEEKEND TOURS
Built Green Idea Home
Image from “Idea Home” feature.
Brian Cloward of Mithun, a panelist for HDC’s green design session at the February membership meeting, is a nationally recognized expert in green building. Here’s a chance to see some of his work firsthand, and to view the latest in green design for single-family homes.
The Puget Sound Energy Built Green Idea Home is now open for visitation and weekend tours in Issaquah through April 11. The house demonstrates how many sustainable and green design features can be incorporated into new home construction. Among many interesting features are a system of ground level barrels that collect rain water for lawn and garden irrigation and a hydronic heating system that draws room air over tankless hot water heaters to heat the home in combination with passive solar. Tours of the Idea Home are offered Saturdays and Sundays, 10am – 5pm. For information, see
PUBLIC HEARING NOTICE
City of Seattle Comprehensive Plan 10-Year Update
The Urban Development and Planning Committee will hold a public hearing March 16 on which Comprehensive Plan amendments should be considered in the 2004 ten-year update. Documents can be reviewed by going to: A summary of amendments can be found under “Hot Information” at A sign-up sheet will be available one half-hour before the hearing for those who wish to testify. The hearing will begin at 5:30pm in the Council’s Chamber, 2nd floor of City Hall, 600 Fourth Ave.
Amendments required by state law include new targets for households and jobs through 2024 and an update of Environmentally Critical Areas policies and regulations. Among other important considerations, The Seattle Department of Planning and Development (DPD) plans to determine whether South Lake Union should become an UrbanCenter rather than remain a HubUrbanVillage as it is currentlydesignated.
New Legal Group Offers Assistance for Nonprofits
The recently formed Washington Attorneys Assisting Community Organizations (WAACO) matches volunteer attorneys with eligible nonprofit organizations in need of business-related legal services. WAACO focuses on occasional assistance with organizational and transactional matters ranging from general formation, governance and taxation to mergers and reorganization. Contact WAACO at 866-288-9695 or
HDC Television Spots Now Airing on KIRO-TV
HDC’s 30-second Housing Our Community television commercials are currently airing on KIRO-TV, channel 7. This second flight began February 23 and will run through March 14. View the spots during the weekday morning and evening news, CBS Sunday morning news and on KIRO’s Sunday evening news. They were filmed atGreenbrierHeights in Woodinville, an affordable housing project developed by Downtown Action to Save Housing.
For a complete schedule, check out HDC’s website:
California Court Decision could have Ramifications for Washington
On January 9, the California Superior Court ruled that the state’s one-year notice statutes for housing subsidy termination/opt-out/mortgage prepayment are not pre-empted by federal law, specifically the Low Income Housing Preservation and Resident Homeownership Act (LIHPRHA). In this case, the owners of an apartment building sought to prepay without the required year’s notice, citing a LIHPRHA preemption provision. Because the building owners had opted not to participate under LIHPRHA when they had the option in the mid-90s, the Court found that the state’s one-year notice statutes are not preempted and remain applicable. The statutes require one year of notice to tenants, prospective buyers able to keep the housing affordable and government officials in the district. Without the court injunction, the owners would have been able to raise rents by as much as $300 per unit in the building. WashingtonState has a similar notice statute for subsidy termination.
Source: Legal Services of Northern California email notice, 1/13/04
HDC Member Recognized for Service
Dini Duclos, executive director of Multi-ServiceCenter, has been nominated for the 2004 Jefferson Award. These awards honor citizens' contributions to community service. They were founded in 1972 by Jacqueline Kennedy Onassis and Sen. Robert Taft Jr. to honor the special dedication, sacrifices and significant accomplishments of individuals in service to the American people. The Seattle Post-Intelligencer is the Washington state sponsor of these awards.
FYI on Disability and Housing
According to a 2003 report from the National Council on Disability, lack of affordable housing and accessible housing is the single biggest barrier to community integration for disabled people in the United States. Unfortunately, because of systemic barriers, people with disabilities tend not to receive their fair share of federal housing subsidy programs. Section 8 programs targeted to persons with disabilities are funded at a relatively modest amount in comparison. An additional barrier cited is the lack of meaningful collaboration between human service agencies and housing agencies. Find the full report at
State Legislative Update
Find the text at click bill info, and type in the bill number.
House Capital Budget. Includes $1 million to capitalize an insurance risk pool for Housing Trust Fund projects.
House Supplemental Operating Budget. Includes $3 million for the new Homeless Families Program, and $150,000 for CTED to set up and contract for administration of the program. Passed House.
Senate Supplemental Operating Budget. Does not include funding for the new Homeless Families Program. Passed Senate.
2ESSB 5536 – Resolving Claims Related to Condominium Construction. HDC supportedSen. Finkbeiner’s striker which was passed by the Senate and sent to the House. The Senate version includes all the pieces negotiated last session and over the fall that the Condo Alliance supports – mandatory arbitration with right to appeal to a jury trial on the record, definition of express warranty to replace the implied warranty, and third party inspection for moisture during construction. The House removed the definition of express warranty but provided an alternative approach by combining portions of this bill with HB 3131 (see below). In House Rules.
HB 3131 – Condo Warranty. This bill sponsored by Reps. Tom and Priest copies a program currently in effect in British Columbia. It relieves a condo builder from implied warranty liability if each unit has a qualified warranty issued to the user and each association has one for the common areas. Minimum coverage standards are set in the bill that can be transferred to successive owners until the time runs out. The U.S. insurance industry has not offered this product, but it is hoped that by authorizing it, “they will come.” We understand Texas recently enacted a similar law. The House has merged it into SB 5536.
HB 1840/SB 5869 – Authorizing Self-Insurance Risk Pools for Nonprofits. Both bills passed their respective houses. The House bill was modified to clarify that Group Health’s insurance pool, currently enabled by a different law, would not be subsumed under this authorization. The bills would allow the creation of self-insurance pools by nonprofits, and could assist HDC if it ultimately decides this is a feasible way of keeping control of insurance costs over the long term.
2SHB 2818- Homeless Families Services Fund. Modeled on the Sound Families Initiative, this bill provides a method to fund services for service-enriched housing by matching state general fund money with foundation and other sources 1:5. It passed the House, but did not make it through the Senate so it will have to be pursued as a budget proviso. Only the House budget contains $3 million for the program plus additional funds for administration. The original proposal was for $15 million; the reduced amount would assist about 250 units for 15 years.
HB 2694 – 2060 amendments. Passed the House; in Senate Rules. Still facing opposition from the apartment owners associations. This bill amends the prior document recording fee/local source law to allow funds to be used on projects “eligible” for the Housing Trust Fund, rather than the current restrictive language of “built with” Housing Trust Fund. It also attempted to provide program administration money as part of the 5% originally set aside for county auditors who have to collect the document fees, but this was dropped by the House Local Government Committee before approving it.