Housing Development

The Housing Finance Program uses several sources of funds for affordable housing development and preservation activities.

Housing Opportunity Fund (HOF)

The HOF was created by King County in 1990 to enable local housing providers to better compete for and leverage federal, state, private, and other local funds to meet the urgent housing needs of the county's homeless, displaced, and special needs populations. In thirteen years, the HOF has committed approximately $34 million to support the development of 113 projects, creating 2,754 units of low-income housing. The King County Council has adopted the following priorities for use of the HOF:

• Preserve housing threatened by conversion or expiring low-income use restrictions; or provide permanent or transitional housing for those with special needs, including homeless families and individuals
• Benefit residents of King County, primarily outside of the City of Seattle
• Link the provision of low-income housing with necessary human services, consistent with service system strategic plans
• Produce the greatest number of units at a competitive per-unit cost for the longest benefit to eligible residents.

Regional Affordable Housing Program (RAHP)

In 2002, the Washington State Legislature established a new fund for low-income housing with a document recording fee. The law directs the local portion of HB2060 funds to be administered pursuant to a cooperative agreement between a county and the cities and towns within the county. King County has met with representatives of cities and towns and has executed signed agreements to create the Regional Affordable Housing Program, a flexible funding source to address regional and subregional housing needs. Eligible activities include:

• Permanent housing
• Transitional housing
• Emergency shelters
• Acquisition (land acquisition and building acquisition)
• New Construction
• Rehabilitation
• Capitalized maintenance reserves for projects that include construction activities

Eligible beneficiaries include all households with incomes below 50% of the area median income including: families, individuals, people with disabilities and other special needs populations.

The Home Investment Partnerships Program (HOME)

HOME is a federal fund for housing development, created under Title 11 of the National Affordable Housing Act of 1990. HOME funds are administered by King County in cooperation with the King County HOME Consortium member cities. The purpose of HOME is to expand the supply of permanent affordable housing for low and very low-income families and individuals. Over the last six years, approximately $8.3 million in HOME funds have supported the development of 686 units of permanent low-income housing. The HOME Consortium has adopted the following priorities for use of HOME funds:

• Develop permanent rental housing for low- and very low-income households (60% of median and below) or create first-time homebuyer opportunities for households below 80% of median income;
• Reflect innovative partnerships between non-profit housing sponsors, and private developers, other non-profit housing developers, public housing authorities, or for-profit financial partners;
• Utilize the Community Development Housing Organization (CHDO) set aside;
• Include match contributions (non-federal funds) which help address federal match requirements defined in the HOME guidelines.

Housing Innovations for Persons with Developmental Disabilities (HIPDD)?

• Eligible Persons - Households with one or more member who receive services through the Washington State Department of Social and Health Services (DSHS) Region 4 Division of Developmental Disabilities (DDD).
• Income Levels - Households with incomes at or below 30% of area median income.
• Maximum Subsidy Amount - The maximum subsidy amount is $50,000 per unit.
• Number of Set Aside Units - The set aside units should total no less than 2 units per project, and no more than 5 units for projects with 50 units or less, or no more than 10 units for projects with more than 50 units.
• Size of Units - The set aside units can be studio 1, 2, 3 or 4 bedroom units, with a priority for 2 bedroom and larger units.
• Universal Design - The DD set-aside units shall include universal design features. If you are applying for HIPDD funds, please complete the attached universal design checklist, identifying the universal design elements that you will include in your project. Include the completed checklist in your application submittal. Please contact Karen Brawley with any questions about the universal design requirements or checklist.
• Referral Agreement - Owners receiving HIPDD funds shall enter into a Housing Referral Agreement with DSHS DDD Region 4 who will refer DDD clients to the units. DSHS DDD will refer clients that have the necessary supports to be successful in housing.

Mental Illness and Drug Dependency (MIDD)

These local funds, which are derived from a King County Council approved sales tax increase passed by King County Council in November 2007, and will be available for projects that specifically for persons with mental illness and/or drug or alcohol dependency issues. The primary goals of the MIDD are to prevent and reduce chronic homelessness and unnecessary involvement in the criminal justice and emergency medical systems and to promote recovery for persons with disabling mental illness and chemical dependency through implementation of a full continuum of treatment, housing and case management services.

Veterans and Human Services Levy (V-HS)

These local funds, which are derived from a ballot measure passed in November 2005, are made available to projects that will serve homeless veterans and other individuals and families in need of permanent supportive housing throughout King County, including Seattle. The proposals for the fall round of V-HS Levy capital funds are to prioritize permanent (non time-limited) housing for vulnerable homeless households.

The Human Services Levy Service Improvement Plan prioritizes safe, decent, and affordable housing linked to needed supportive services, including persons leaving institutions, for the levy's target populations, including:

1. Households at risk for homelessness or involvement with child welfare, behavioral health or justice systems because of life circumstances
   
   
2. Veterans and their families in need who are struggling with or at risk for mental illness, health problems, post traumatic stress disorder, unstable housing or homelessness an under-employment
   
   
3. Individuals and families who experience long-term homelessness and are frequent users of hospital emergency departments, have frequent encounters with law enforcement and repeated stays in jail or institutions, and
   
   
4. Parents who have been recently released from prison or jail and are striving to maintain their family or be re-united with their children.

Projects receiving Veteran's Levy funding must have relationships with existing veteran's programs/systems to determine housing needs and for referral of veterans to the units.

Community Development Block Grant (CDBG)

CDBG funds are federal funds intended to serve very low- to moderate-income households. Over the last five years, King County has used approximately $3.7 million in CDBG funds in support of construction and preservation of low-income housing. The priorities for use of these funds are:

• Increase the supply of housing for homeless households, including youth;
• Develop permanent rental housing opportunities for low-and very low-income households and individuals;
• Create first-time homebuyer opportunities for households below 80% of median income;
• For projects serving homeless or special needs populations, demonstrate effective linkages to other types of housing services that residents may need, and demonstrate operating support;

Note: Relocation Assistance Requirements

Federal relocation laws and regulations apply to HOME and CDBG funds. HOME and CDBG funded projects are subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended ("URA") and/or Section 104(d) of the Housing and Community Development Act of 1974, as amended ("Barney Frank Amendment"). Any agency considering a project involving a property occupied by residential and/or business tenants must consult with the King County's Relocation Specialist. For more information about the relocation process, click here to go to the Housing Development Applications page.

King County Consortium Local Relocation Guidelines apply to local HOF and RAHP funds. Click here to go to the Housing Development Applications page and learn more about local relocation guidelines.