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HopeS OUTCC The purpose of the application submission was to purchase the 4.8-acre Nites to utilize as affordable housing and renovate the existing units into affordable housing with supportive services with funding from both the County Homeless and Affordable Housing funds and the City Affordable Housing funds. We met with the Affordable Housing Committee on several occasions to discuss the proposal and they have recommended moving forward with the proposal. We have also met several times with the City Affordable Housing Commission, and they have recommended moving forward with the proposal and it is scheduled to be voted on by the County Council this evening. However, they are concerned about the community not being ready for a supportive housing project of this size, suggesting that the 16 units that would be created are more capacity than is needed for supportive housing in this county. They prefer to move forward with the project as an Affordable Housing project at this time and address supportive housing at a later date. The County Commissioners also expressed those same concerns earlier this month and suggested HopeSource gather feedback from the community, conduct community forums, and provide education and awareness and we have begun that process. This is a unique time where capitalfunding and supportive housing operations funding are available at the state level. Our original proposal intended to utilize funding from the recently passed HB L866 Apple Health & Home to create the new Office of Housing and Health and use capital funding from that office to renovate the existing building. However, this new office is in the early stages of creation, and we have not been able to get any information on the timing of when those funds are available. To add L6-unit Affordable Housing within the next L2 to L8 months we plan instead to utilize conventional financing to fianc6 the renovation of the existing units into affordable housing units for households at60% AMI or below including veterans, senior citizens, and all categories of homelessness. To secure the full funding for the Nites lnn project and satisfy both the County and the City's concerns we would like to request the Commissioners approve our application to move forward with the project as Affordable Housing and address supportive housing at a later date. HopeSource understands that Supportive Housing is the final gap in our homeless services and is committed to educating the community, which will take a little time, and operating a Supportive Housing program at some point in the future 700 E Mountain View Ave. Suite 501 Ellensburg, WA 98926' 509-925-1448 ' www.hopesource.us