SAN JUAN COUNTY

Home Trust Awarded $525,000 in state CDBG funding

posted 04/28/2008
San Juan Community Home Trust has been notified that it will receive $525,000 from the Community Development Block Grant (CDBG) program for its proposed project on the Buck Property in Friday Harbor. The grant will be used to help fund infrastructure costs into the upper 5.1 acres of the Buck property, off of Grover Street and closest to the elementary school.

The award comes from the State’s CDBG Housing Enhancement Program, and is a companion grant to the $600,000 Housing Trust Fund award announced last month. The new award replaces, in the same amount as requested, the CDBG General Purpose fund that was selected by the San Juan County Council as the top priority for San Juan County this year for CDBG funding.

While fundraising for the $5 million project continues, site work cannot begin until completion of the study of Friday Harbor’s utility capacity, due in late July, and subsequent annexation of the Buck parcel.

The Home Trust is progressing with design plans for the new neighborhood. An eco-charette, facilitated by the Washington State Department of Ecology, will take place on May 6, 2008. A team of professionals focused on Low Impact Development (LID) has been assembled by Building Committee Chair Pete Kilpatrick.

Sustainable features including water conservation, rainwater harvesting, on-site water reuse systems, and LID stormwater management techniques such as porous pavements and bio-infiltration facilities are being explored for the new neighborhood.

Applications for homes in the Buck neighborhood, projected to be completed by the end of 2009, are now being accepted by the Home Trust. Eligibility requirements and applications can be found on the Web site at www.hometrust.org by dropping by the Home Trust office at 435-C Argyle Avenue or calling 378-5541.

SJI Home Trust awarded $600 K, OPAL receives $350K from state Housing Trust Fund

posted 04/07/2008
The state Housing Trust Fund has awarded a $600,000 grant to the San Juan Community Home Trust fund for its proposed Buck property project in Friday Harbor. OPAL Community Land Trust Mt. Baker Neighborhood project received a $350,000 project from the same fund.

The SJCHT grant will help fund construction of 12 of the first 15 homes to be built on the site. These 12 homes will be reserved for sale to households with incomes at or less than 80 percent of the area median income. The grant awarded to the Home Trust was the largest single award made in this round of state funding.

According to the announcement, the Homeownership program was able to fund 16 out of 18 projects that submitted applications statewide, to the tune of $6,088,500. This will result in down payment assistance, rehabilitation of existing homes, acquisition of property and construction of new homes for 157 households in 23 counties.

County 1 for 2 in Community Development Block Grants awards

Awarded 23K planning only grant,
turned down for $1 million construction grant

San Juan County's application for a grant from the federal Community Development Block Grant (CDBG) Planning-Only grant funds has been successful. The county will receive up to $23,325 to be used to study infrastructure demands and capacity for low-income housing near Friday Harbor. Tamara Nack, an engineer from Grant and Osborne, has been hired as the consultant to do the study.

The county was not successful in its application for part of the $12 million available in CDBG general purpose grants. The county council chose to send in the San Juan Community Home Trust's $1 million request rather than the Home for Islanders $200,000 request. Each county can send in only one application.

The applications are scored 25 percent on readiness. The Homes for Islanders project was ready to go. The SJCHT project is in the planning stages.

The 17 cities and counties awarded a total of $10.2 million are:

""Funding infrastructure projects such as these is especially critical to achieving growth and prosperity in Washington’s smaller communities," said Juli Wilkerson, CTED Director. "The state CDBG program supports local leadership and community participation in addressing a wide range of community development priorities."

The state CDBG program receives funding from the U.S. Department of Housing and Urban Development (HUD) to provide grants to small cities (under 50,000 population) and rural counties (under 200,000 population.) Larger cities and counties receive their own entitlement funding directly from HUD.

Since 1982, the state CDBG program has awarded more than $375 million in grants for over 1,100 locally prioritized community development projects. CDBG grants have been used for construction of water, sewer, streets and other local infrastructure; community facilities such as health centers and childcare centers; housing rehabilitation projects for low-income households; loans and technical assistance to local micro-enterprises; and the development of plans and studies aimed at enhancing the success of future projects.

CTED is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington State. For more information, please visit www.cted.wa.gov/cdbg.

County council selects SJI Home Trust as CDBG Grant applicant

posted 10/25/2007
County Councilmembers had to choose one of two affordable housing projects to recommend to the state for a Community Development Block Grant. The application deadline is Nov. 15. The state will review the applications in December. Readiness is one of the four criteria which will be used to judge the applications. The state will distribute $12 million in federal funds statewide.

One of the projects wanted $200,000 as the final piece of its financing and could begin construction in March. Planning on the project started seven years ago.

The other project wanted $1 million. Planning started on the project this year. Before construction can start, the Town of Friday Harbor's Urban Growth Area (UGA) has to be expanded, the project's property has to be annexed into the town, a utilities study has to be completed, site plans have to be submitted to the town planning department and approved. The UGA and the annexation could possibly be appealed which could slow down the process.

The county council chose the $1 million application.

Councilmembers said they were torn between the two projects. The Home for Islanders Woodlawn project on Orcas Island would create eight affordable houses. This is HIH's fourth project - Leeward Cove, Rocky Bay, Park Plaza - being the other three. Homeowners contribute sweat equity and own the home and land. The homes are affordable by the size of the homes and lots and because resale is limited to people of moderate income. Homes cannot be used as rentals or second homes.

San Juan Community Home Trust is developing its second project. Its first the Salal project on Carter Avenue has 15 homes. The homeowners do not own the land and are limited to the amount of equity they can earn. The most recent seller saw a 2.5 percent increase in value when he sold his home according to testimony at the council hearing.

The Trust's project will build 12 to 15 homes in its first phase. The first five acres of the total 15 acres to be developed will have up to 60 homes according to Home Trust founder Larry Soll. Some of the housing will be co-housing. A common room with a kitchen where the residents share two dinners a week will be part of the co-housing element.

Councilmember Alan Lichter was concerned about the readiness of the Trust's project and made a motion to recommend the HIH application. The motion died for lack of a second. Councilmember Howie Rosenfeld's motion to approve the Trust's application passed 4 to 1 (Lichter) with Councilmember Bob Myhr abstaining. Councilmembers Kevin Ranker, Rich Peterson, Gene Knapp and Rosenfeld voted for the motion. After the vote another one was taken to make the recommendation unanimous.

Council delays CDBG grant decision for one week

posted 10/17/2007
After listening to presentations by two non-profit affordable housing groups, the San Juan County Council delayed its decision for one week to gather more information. Discussions will resume at 10:15 a.m. Tuesday, Oct. 23. Both groups want to submit applications for Community Development Block Grants. These are competitive grants and only application per county is accepted

Homes for Islanders is asking for $200,000 for its Rosario project on Orcas Island. If the grant is awarded, the project will begin in Spring 2008.

San Juan Community Land Trust is asking for $1 million. Councilmember Rich Peterson expressed concern about the readiness of the project. The state Community Trade and Development Dept. uses readiness as one of four criteria when making its selections.

Trust Executive Director Nancy DeVaux said, "We feel the Town will approve our annexation." In order for the Trust's project to go forward, the county must expand the town's Urban Growth Area then the Trust must apply to the Town for annexation. The Town must then approve the annexation before the property is actually in the town limits.

County Development and Planning Director Ron Henrickson said the planning commission will hold a hearing on the UGA in November and then it will go to the county council.

Councilmember Rich Peterson said, "Assuming all that will work, getting plans ready in 2008 seems really optimistic."

Trust founder Larry Soll told the council the Town of Friday Harbor has approved the site plan. His timeline included: UGA expansion done by first of December, apply for annexation in January, receipt of grant, breaking ground in early spring, and home construction beginning in late summer.

In a phone interview, after the meeting, Town Land Use Administrator Mike Bertrand said the town has not approved a site plan for the project.

The annexation process includes a utility analysis, review and deliberations by the Town planning commission, public hearings, deliberations and vote by the Town Council.

The County council's other concerns related to continued affordability. The Trust's model limits homeowners to a formula limiting the appreciation they can take from the home when the sell. The Trust owns the land. The two homeowners who have sold took away 2.5 percent. The homes are permanently affordable.

The Homes for Islanders program is a "sweat equity" program. The original homeowner ends up with more appreciation because of the amount of work they put into building the home. The homes are permanantly affordable under the county's definition by being limited in the way they are resold for 50 years.

The homes must be sold to buyers with moderate incomes. The county must approve of the sale. Dick Kniepp of Islanders Bank said a moderate income buyer could qualify for a mortgage of $250,000. The relatively small size of the homes and the small lots and the requirement that they must be sold to moderate income buyers is the mechanism which makes the homes affordable.

Two affordable housing groups vying
for one CDBG grant today

posted 10/16/2007
The county can submit one application for a Community Development Block Grant. Today, Tuesday, Oct. 16 the council will hear presentations by two affordable housing groups each desiring to be chosen. The chosen applicant will be forwarded to the state Dept. of Community, Trade and Economic Development.

CTED evaluates applications on four criteria.

1. Need - this includes why here, why now, is there a reason this project is more urgent?
   
   
2. Capacity - includes the ability of the sub-recipient to effectively administer the grant
   
   
3. Readiness - catch all category, includes among other things, completion of different reviews necessary, identification of necessary studies, identification of anticipated obstacles, contingency plans.
   
   
4. Results - the number of people expected to be assisted and the degree to which the assistance will help.
   
   

Homes for Islanders' is asking for $200,000 to help purchase eight lots in the Rosario Woodlands Subdivision. Eight homes would be constructed through the USDA Mutual Self Help method. The location is close to Rosario Resort, a major employer and Moran State Park a major outdoor recreation area.

According to the Homes for Islanders' report: The project is all ready to proceed and the CDBG grant will complete the last piece of the financing. All land use approvals have been obtained and site construction is due for completion is the spring of 2008. HFI has an approved USDA 523 operating grant that will provide all necessary technical assistance for this project.

San Juan Community Land Trust is the second applicant. They are requesting $1 million for infrastructure in support of housing. They want to extend utilities and roads into the western section of the Buck property. Sixty homes would be developed on the upper five acres of the property. 45 of the homes would be permanantly affordable, according to the SJCLT's report. They estimate 117 people including 48 children would live there.

The HFI report answered all of the CTED criteria in its report. The SJCLT's narrative report was not complete, buy noted it would be in time for the CTED Nov. 15 deadline for CTED. Most of the SJCLT 17+ page report prepared for the public hearing covered the need for affordable housing in general.

The council can choose either project or neither project.

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