Chapter 2.27
AFFORDABLE HOUSING PROGRAM
Sections:
2.27.010 Establishment of San Juan County affordable housing fund.
2.27.020 Establishment of an affordable housing plan and guiding principles.
2.27.040 Housing advisory committee – Composition.
2.27.050 Housing advisory committee – Duties and responsibilities.
2.27.060 Housing advisory committee – Organization.
2.27.070 Housing advisory committee – Staff.
2.27.080 San Juan County affordable housing fund.
2.27.090 Budget and affordable housing plan.
2.27.100 Housing advisory committee annual report.
2.27.110 Application and submittal standards.
2.27.130 Criteria for proposal selection, approval and funding.
2.27.150 Homeless housing task force.
2.27.010 Establishment of San Juan County affordable housing fund.
There is hereby established the San Juan County affordable housing fund to be administered by the department of health and community services. (Ord. 12-2018 § 2; Ord. 3-2006 § 1; Ord. 20-2002 § 1)
2.27.020 Establishment of an affordable housing plan and guiding principles.
A. The housing advisory committee shall work with the San Juan County department of health and community services to develop and recommend an affordable housing plan for approval by the County council. The affordable housing plan is to provide guidance, support and funding recommendations for the development of quality affordable housing for San Juan County residents with very low, low, and moderate incomes through the disbursement of funds collected pursuant to RCW 36.22.178, 36.22.179, Chapter 43.185A RCW, RCW 82.46.075 and other funds and grants collected for the purpose of the development of affordable housing and aid for the homeless.
B. All funds disbursed from the affordable housing fund shall be distributed in a manner that is consistent with state and federal laws which limit the use of specific funds to particular income levels and special needs.
C. Income thresholds used to develop eligibility standards for the affordable housing programs established by this chapter are as follows and shall be used unless inconsistent with a specific state, federal or other grant definition:
1. Very low income: zero to 50 percent of median income in San Juan County.
2. Low income: greater than 50 percent and up to 80 percent of median income in San Juan County.
3. Moderate income: greater than 80 percent and up to 115 percent of median income in San Juan County.
D. The following guiding principles are established for use of the affordable housing fund:
1. In developing programs and supporting affordable housing projects, the County shall place a high priority on programs and projects that benefit residents of the County; that provide housing for employees to diversify the County’s economic base and provide a more balanced, year-round economy.
2. To achieve the County’s objectives, the County shall solicit the cooperation of state and federal agencies, other local governments, for-profit builders and developers, nonprofit organizations, nonprofit organizations providing affordable housing or housing-related services in the County, and similar agencies and organizations.
3. The County shall seek to balance the affordable housing units developed through affordable housing fund programs among the various islands based on their population and needs.
4. The County shall seek to provide a wide variety of housing types and tenancy options in order to meet the wide variety of housing needs in the County. In supporting affordable housing, the County may consider proposals for ownership, cooperative, leasehold, rental and other forms of home tenancy. The County may consider proposals for apartments, condominiums, duplexes, modular and manufactured housing, mobile homes, congregate care housing, conventional single-family detached housing, tiny homes, and other types of housing suitable to meet local needs.
5. To maximize the effectiveness of affordable housing programs and minimize cost in the long term, the County may place a priority on projects and programs that provide perpetually affordable housing.
6. In order to sustain the local San Juan County economy and promote the development of a continuing local capability to construct affordable housing, the County shall encourage local developers, local builders, local subcontractors, local suppliers and local workers to participate in competitive projects.
7. In accordance with the County’s Comprehensive Plan, the County will not directly develop, own or operate affordable housing units. However, this restriction shall not prohibit the County from developing public/private partnerships to utilize County assets such as land to develop affordable housing. (Ord. 12-2018 § 3; Ord. 3-2006 § 2; Ord. 20-2002 § 2)
2.27.030 Definitions.
These words when used in this chapter shall have the following meanings:
“Affordable housing” means that occupants are spending no more than 30 percent of their gross household income on housing costs. Housing costs for renters are considered to include rent and utilities, or, for owners, to include the principal and interest on the mortgage plus property taxes and insurance (PITI). Utility costs include water, sewage disposal, electricity and/or gas for lighting, heating and cooking.
“Affordable housing excise tax” means that tax authorized by the voters of the County, pursuant to the enablement and requirements of Chapter 82.46 RCW, and San Juan County Ordinance 11-2018 as now enacted or subsequently amended.
“Perpetual affordability” means housing that through legal restriction is pledged to remain affordable for each purchaser for a minimum of 99 years for households earning an annual income equal to or less than 115 percent of the San Juan County median income. Legal restrictions to enforce perpetual affordability include:
1. Continuous ownership of the land and structure by a public agency or nonprofit housing provider;
2. Continuous ownership of land by a public agency or nonprofit housing provider with a renewable land lease allowing ownership of the structure by an eligible household;
3. A deed restriction, restrictive covenant, resale or rental restriction or other contractual agreement that assures affordability as defined above. (Ord. 12-2018 § 4; Ord. 3-2006 § 3; Ord. 20-2002 § 3)
2.27.040 Housing advisory committee – Composition.
There shall be established a housing advisory committee, a citizen advisory board appointed by the County council. The housing advisory committee shall be advisory to the department of health and community services and the County council on all matters related to the affordable housing plan. The housing advisory committee shall be composed of seven members, one who resides on each of the three largest islands – San Juan, Orcas and Lopez, plus one who resides in Friday Harbor, and three appointed at large by the County council.
A. Initial appointment shall be as follows: three members appointed for four-year terms, two members appointed to three-year terms, and two members appointed for two-year terms.
B. Upon the expiration of initial appointments, successive appointments shall be for a period of four years. Housing advisory committee members may be reappointed on a majority vote of the County council.
C. The County council shall strive to achieve a diversified and objective membership.
D. In the event a housing advisory committee member is absent from three consecutive meetings without prior approval from the housing advisory committee chair, the County council may remove such member and appoint a replacement to fulfill that member’s unexpired term. (Ord. 12-2018 § 5; Ord. 3-2006 § 4; Ord. 20-2002 § 4)
2.27.050 Housing advisory committee – Duties and responsibilities.
The housing advisory committee shall have the following duties and responsibilities:
A. To develop, regularly update, and recommend to the department of health and community services and the County council an affordable housing plan that sets out goals, measurable strategies and methods for evaluating program effectiveness for all affordable housing programs managed by health and community services.
B. To assess the need for housing and the demand for certain types of housing by geographic areas in the County, utilizing both secondary source materials, such as the U.S. Census and demographic data, and primary source materials, such as surveys and interviews.
C. To develop and recommend clear performance standards for loan and grant applications to be considered for funding, and provide guidance to applicants that will help them achieve those standards.
D. Assist the County council to create stable, permanent funding sources to meet the County’s affordable housing needs.
E. To recommend procedures for soliciting and evaluating applications for competitive grants and loans funded through excise tax funds generated by Chapter 82.46 RCW. This shall include the development and recommendation of requests for proposals for competitive grants and loans that are specifically tailored to the affordable housing needs of the County as set out in the housing plan.
F. To develop and recommend criteria for evaluating the proposals for the competitive grants and loans that ensure that the disbursement money is spent for affordable housing that is durable, modest, cost-effective and perpetually affordable.
G. To review grant and loan applications and make recommendations to the County council for the award of grants and loans. Such review shall include background checks on applicants for loans or grants.
H. Provide assistance as needed to the local homeless housing task force.
I. To assist health and community services in preparing and recommending to the County council an annual budget for the affordable housing fund and other affordable housing accounts, if any.
J. Prepare annual reports detailing the housing advisory committee’s activities.
K. Develop and recommend policies and procedures for the administration of the programs within the affordable housing fund including but not limited to:
1. Pursuing the collection of unpaid loans.
2. Monitoring compliance with conditions contained in grant or loan approvals including administrative review to ensure that funds are being spent in accordance with loan and grant approvals.
3. Handling requests for loan modifications.
4. Preparing applications to state and federal agencies for pass through grants.
5. Monitoring all pass through grants and loans to ensure compliance with the terms of federal and state grants or loans.
6. Managing the affordable housing revolving loan fund including approving applications for loans and monitoring compliance with terms of loans and enforcement actions against loan recipients who are out of compliance with terms of loans. (Ord. 12-2018 § 6; Ord. 3-2006 § 5; Ord. 20-2002 § 5)
2.27.060 Housing advisory committee – Organization.
The housing advisory committee shall follow the volunteer advisory committee rules found in Chapter 2.116 SJCC. (Ord. 12-2018 § 7; Ord. 3-2006 § 6; Ord. 20-2002 § 6)
2.27.070 Housing advisory committee – Staff.
The San Juan County department of health and community services shall provide staff support to the housing advisory committee. The housing advisory committee may recommend for consideration by the director of the department of health and community services candidates for the position of housing program coordinator, a staff position within the department of health and community services. The housing program coordinator shall have the background skills and experience appropriate to the evaluation and negotiation of complex financing, real estate transactions and public-private partnerships. The housing program coordinator shall serve as the primary staff of the committee.
Revenues required to support the direct and indirect expenses of the housing program coordinator and additional staff as may be deemed necessary shall be derived solely from the affordable housing fund. Annual administration costs of the fund shall be held to the minimum required to efficiently and properly administer the affordable housing fund, but shall not exceed 10 percent of revenues received in any year; provided, that no more than six percent of recording fees collected pursuant to RCW 36.22.179 may be used for administrative costs for the homeless housing program. Nothing in this section would preclude the County from contracting with an individual, organization, or commercial bank to provide any or all of the administrative functions of the housing program coordinator. (Ord. 12-2018 § 8; Ord. 3-2006 § 7; Ord. 20-2002 § 7)
2.27.080 San Juan County affordable housing fund.
A. There shall be established in the County treasury a fund titled “San Juan County affordable housing fund.” Deposited into this fund shall be all revenues that are dedicated for affordable housing projects. Funds from private and federal sources shall be held in accounts within the fund separate from County or state funds. The affordable housing fund shall include revenues received from the following sources:
1. Real estate excise taxes generated under RCW 82.46.075 if approved by the voters of San Juan County. Such funds must be expended in conformance with San Juan County Resolution 25-2018, RCW 82.46.075 and state and federal laws.
2. Recording fees collected pursuant to RCW 36.22.178. Such funds must be expended in conformance with RCW 36.22.178 and state and federal laws.
3. Recording fees collected pursuant to RCW 36.22.179. Such funds must be expended to accomplish the purposes of Chapter 43.185C RCW and in accordance with RCW 36.22.179 and state and federal laws.
4. Grant and loan funds received from the Department of Community, Trade and Economic Development pursuant to Chapter 43.185A RCW. Such funds must be spent in accordance with the requirements set by the state of Washington.
5. Interest earned from investments of the fund.
6. Other funding sources as they become available and acceptance of such funds is recommended by the housing advisory committee and approved by the County council. Any funds expended from additional sources must be spent in conformance with state and federal laws, this chapter and the contractual requirements attached to the receipt of the funds.
B. Expenditures from the affordable housing fund shall be tied to a particular revenue source and spent in accordance with the applicable requirements as set out in subsection (A) of this section. All expenditures shall be made in accordance with the legally adopted County budget. Excise tax funds shall be spent in accordance with expenditure plan set out in San Juan County Resolution 25-2018. The annual budget, submitted for public hearing, shall be based upon recommendations of the housing advisory committee and adopted by the County council. (Ord. 12-2018 § 9; Ord. 3-2006 § 8; Ord. 20-2002 § 8)
2.27.090 Budget and affordable housing plan.
A. Based on the goals and objectives of the County’s housing element and the County’s most recent affordable housing plan, the housing advisory committee will prepare and recommend an annual budget and project work plan for the coming budget year. The budget and project work plan will include an estimate of the number of affordable housing units needed for each of the principal islands of the County.
B. An annual affordable housing budget and project work plan shall be adopted by the County council during the adoption of the annual budget for the County. The plan may provide for contingencies and may be amended following a public hearing by the County council. (Ord. 12-2018 § 10; Ord. 3-2006 § 9; Ord. 20-2002 § 9)
2.27.100 Housing advisory committee annual report.
The housing advisory committee shall prepare and submit to the County council by January 31st of each year an annual report summarizing the previous year’s activities, including at a minimum:
A. Inventory of the status of the particular projects approved for funding in the prior year’s annual budget. Each project shall be linked in the report to its funding source;
B. Housing advisory committee recommendations regarding changes in the affordable housing development objectives contained in the prior year’s annual expenditure plan; and
C. Any recommendations by the housing advisory committee for amendments to the County’s Housing Element, Unified Development Code or other County regulations related to affordable housing. The housing advisory committee shall also forward such recommendations to the planning department for inclusion in the regular review and update of these plans and regulations. (Ord. 12-2018 § 11; Ord. 3-2006 § 10; Ord. 20-2002 § 10)
2.27.110 Application and submittal standards.
A. One or more application deadlines for competitive grants and loans shall be established by January 30th of each calendar year.
B. The County will utilize a request for proposals (RFP) and/or notice of funds available (NOFA) process to solicit affordable housing projects. Health and community services staff shall work with the County manager and County council to develop individual RFP and NOFA guidelines, and all RFPs and NOFAs shall be approved by the County council prior to publication.
C. Recommended awards shall be announced not later than eight weeks after the application deadline.
D. Each request for proposals (RFP) and/or notice of funds available (NOFA) shall include a criteria-based weighting system that is consistent with the County’s current affordable housing plan.
E. Applications shall include at a minimum:
1. A profile of the organization applying, including history, experience, financial statements and capacity of staff and board;
2. A detailed description of the proposed project, including beneficiaries, site description and demonstrated consistency with current County plans and codes;
3. A detailed description of project financing including development budget, operating budget and permanent and interim financing. (Ord. 12-2018 § 12; Ord. 3-2006 § 11)
2.27.120 County council authority.
Repealed by Ord. 12-2018. (Ord. 3-2006 § 17; Ord. 20-2002 § 12)
2.27.130 Criteria for proposal selection, approval and funding.
Applications for projects shall be reviewed and evaluated in detail by health and community services department staff based on the requirements listed in this section, the affordable housing plan, and additional criteria published in specific requests for proposals (RFPs) and/or notices of funds available (NOFAs).
The housing advisory committee shall assign priority and recommend to the County council projects that:
A. Meet the standards and goals identified in the specific requests for proposals (RFPs) and/or notices of funds available (NOFAs);
B. Provide durable housing that is cost-effective and financially viable;
C. Are sponsored by a developer that has the demonstrated ability, stability and resources to implement the project;
D. Provide perpetual affordability;
E. Leverage support from other sources, including private donations, private investments and other grants and loans;
F. Meet the guiding principles established in SJCC 2.27.020.
Applications shall be evaluated and approved in the following manner:
1. Health and community services staff will evaluate eligibility and prepare initial recommendations based on the merits of the proposed projects, whether the project meets the priorities, goals and strategies of the County’s comprehensive plan, this affordable housing plan and the specific RFP and/or NOFA, and the overall mix of projects funded by the County;
2. The housing advisory committee will review staff proposals and present their recommendations to the County council;
3. The County council will decide whether or not to award funding after reviewing the housing advisory committee recommendations. The County council has final decision-making authority and reserves the right to reject any and/or all proposals;
4. County council shall award funding and enter or authorize contracts or agreements to be executed as needed. (Ord. 12-2018 § 14; Ord. 3-2006 § 12)
2.27.140 Reserve fund.
A. A reserve fund shall be established to provide for the monitoring and compliance of grant and loan terms. It is the objective of this reserve fund that the interest earned from it will fund monitoring and compliance activities after tax revenues supporting the affordable housing fund expire.
B. The fund shall be capitalized by a percentage of the grant or loan award deemed by the County council to be sufficient to carry out the perpetual responsibilities of monitoring compliance with grant and loan terms. (Ord. 12-2018 § 15; Ord. 3-2006 § 13)
2.27.150 Homeless housing task force.
The County council shall appoint a local homeless housing task force to perform the duties set out in Chapter 43.185C RCW. The task force shall include at least three members of the housing advisory committee, as well as at least one homeless or formerly homeless person, a representative of health and community services, and a representative of a private nonprofit organization with experience in low-income housing. The local homeless housing task force shall prepare and recommend to the County council a five-year homeless housing plan for San Juan County. The local plan developed by the task force shall be consistent with the guidelines set out in Chapter 43.185C RCW. (Ord. 12-2018 § 16; Ord. 3-2006 § 16)
2.27.160 Conflict of interest, appearance of fairness.
Repealed by Ord. 12-2018. (Ord. 3-2006 §§ 18, 19; Ord. 5-1994 Att. A(5). Formerly 2.26.060.)