HomeMy WebLinkAboutAmend 2Amendment No.2 to Contract HH-2020 -OO2- HopeSource- Clp
between HopeSource and Kittitas Gounty
May 1 5, 2020- December 31, 2O2O
The Contract HH-2020 -002- HopeSource- CIP HopeSource and Kittitas County, is
hereby amended to update the timeframe for completion (Attachment "A"):
o Change the termination date of work done from December 31st, 2020 to
December 31st,2022
All other terms and conditions of the agreement remain in full force and effect.
IN WITNESS WHEREOF, thc parties have executed this Agreement this gday of
2022
APPROVED
HOPESOURCE Nry , WASHINGTON
Signature of Signatory Chairman
(Date
Print Name of Signatory Vi
Clerk of the Board
Contract HH-2020 -002- HopeSource- Clp Amendment No.2
Page 1
Contractor Address:
HopeSource
700 E. Mountain View Ave
Suite 501
Ellensburg, WA 98926
Project Gontact:
Craig Kelly
HopeSource
County's Address:
Kittitas County
205 West Sth Avenue, Suite 108
Ellensburg, WA 98926
Project Contact:
Laura Osiadacz, County Commissioner
Contract HH-2020 -002- HopeSource- CIP Amendment No.2
Page 2
Amendment No.1 to contractHH-202o -002- Hopesource- clp
between Hopesource Kittitas County
May 15, ZOZ0- December g1,2OZO
The Contract HH-202A -AO2- HopeSource- CIP HopeSource and Kittitas County, is
hereby amended to update the timeframe for completion (Attachment,,A,,):
' Change the termination date of work done from December 31st, 2020 to
December 31"t,2021
All other terms and conditions of the agreement remain in full force and effect.
IN WITNESS WHEREOF the parties have executed this Agreement this Aday of
Utrtr 2021
HOPESOURCE
APPROVED:
KITTITAS COUNTY HINGTON
Signature of Signatory Chairman
Print Name of Signatory trman
tllll
60ir4Ml
: ' .'. ':, i' l, \iI r- L: .J 1" ," !L-i
Commissioner
ttest
ri ;lulie Kjorsvik
qf Mandy Buchhotz
Contract HH-2020 -002- HopeSource- Clp Amendment No.1
Page 1
Contractor Address:
HopeSource
700 E. Mountain View Ave
Suite 501
Ellensburg, WA 98926
Proiect Contact:
Craig Kelly
HopeSource
Clerk of the Board
Gounty's Address:
Kittitas County
205 West 5th Avenue, Suite 108
Ellensburg, WA 98926
Project Contact:
Cory Wright, County Commissioner
Judy Pless, Budget and Finance Manager
Contract HH-2020 -002- HopeSource- Clp Amendment No.t
Page 2
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HOMELESS HOUSING PROGRAM
GRANT AGREEMENT
This Homeless tlousing Program Grant Agreement ("Agreement") is entered into
between KIT'IITAS COIINTY, a political subdivision of the State of Washington (the
"County"), and HOPESOURCE, a Washington non-profit corporation ("Recipient;) lor the
Addison Program,
ARTICLE I - PURPOSE AND TERM
Scction l.l lurp0ggj The purpose of this Agreement is to distribute homeless housing
surcharge funds awarded pursuant to the applicable provisions of RCW 36.22.17()-1791.
Scction 1.2 Term: 'fhis Agreement shall take effect May 15, 202A and terminate on
Decembcr 3l*t, 2020,
ARTICLE II -- GRANT AMOUNT, USE AND BUDGET
Section 2.1 (i{AnL Amauni: The Recipient is awarded a total of up to three hundred thirty
two thousand, eight hundred and sixteen dollars ($332,816.00) (the. "Grant Award") to be
administered as follows as Grant Award HH-2020 - 002- Hopesource-clp,
Section 2.2 t-Jsc 9f'Crant.'l'he Recipient shall use the Grant Award solely for thc purposes
and in the manner described in Exhibit A - Attached Application, which is incorporated by
this reference. Adjustments to Proposed Project Timclineiinay be requested of the Committee
in writing and the Committee may recommend adjustments to the Board of, Kittitas County
Commissioners. 'fhese recommendations may be granted or denied at the discretion of the
Board of Kittitas County Commissioners.
Section 2.3 lluciaeL 'the Grant Award shall be expended by the Rccipient as set forth inExhibit A. Adjustments to Proposed Project Budgets may be requested of the Committee inwtiting and the Committec may recommend adjustmenis to ths Board of Kittitas County
Commissioners. These recommendations may be granted or denied at the discretion o f the
Board of Kittitas County Commissioners. These recommendations may be granted or denicd
at the discretion of the Board of County Commissioners.
ARTICLE III - DISBURSEMENTS
Section 3.1 Drsbursement.qlGrant Award Funds. Not more frequently than once a month,
the Rccipient may request disbursement from the Grant Award. Each disbursement request
must be made by the Recipient submitting to the County at the address specitied in Section 5.2a properly complcted Reimbursement Request form. The request must identify thc work
performed and be based on billings, supported by detailed invoiccs and other appropriate
l{omeless Housing Grant Agreement
Revised l2l20l9 Page I of t0
dctailed docutnentation of costs actually incurred, unless further documentation is requested by
the Committee, the Kittitas County Auditor's Office, or the BOCC. The Recipienr will be
subject to periodic on-site audits to cnsure that satisfactory supporting documentation of all
allowable costs and expenses are being kept. Within 30 days oiitr."r-.ipt of the request and
satisfactory supporting documentation, and subject to the ot-her terms and conditions contained
in this Agreement, the County shall pay the amount of the invoice to the Recipient at the address
specified in Section 5.2,
Section 3.2 Advance l)isbul'selxgnt. The Recipient may request disbursement from the
Grant Award in advance of actual expenditure only for the following:
r rental and furnishing of dwelling units for the use of homeless persons;r costs of developing affordable housing for homeless persons, and services for
formerly homeless individuals and families residing in transitional housing or
permanent housing and still at risk of homelessness;r operating subsidies for transitional housing or permanent housing serving
formerly homeless families or individuals;t services to prevent homelessness, such as emergency eviction prevention
programs including tcmporary rental subsidies to prevent homelessness;t temporary services to assist persons leaving state institutions and other state
programs to prevent them from becoming or remaining homeless;r outreach services lor homeless individuals and families;r development and managemcnt of local homeless plans including homeless
census data collection, identification of goals, performance measures,
strategies, and costs of evaluation of progress towards established goals;r rental vouchers payable i<r landlords for persons who are homeless or below
thirty pcrcent of the median income or in immediate danger of becoming
homeless;and
r other activities to reduce and prevent homelessness as idcntified for funding in
the local plan; and
Section 3.3 QiEbq${rnst[j.lErld$g]t In no event will the County ever be required to
disburse i-unds in exoess of the Grant Award. In addition, unless r*pr*srly provided oiherwise
in this Agreement: (a) no disbursements will bc made in advance-oirortr or expenses being
incrured; and (b) no costs or expenses incuned by the Recipient prior to the effective date of
this Agreement" or after its termination, are eligible for reimbursement.
Section 3.4 Dirbrrrspnrqqt lVilltoqt Prejuttirq. Any rJisburscment made by the County to
the Recipient shall be without prejudice to the County's rights later to challenge the propriety
of the Recipient's claimed costs or expenses.
Section 3'5 Withholding Diltrrrrs-etnents. If the Recipient thits to perform any obligation
under this Agreement and the failure has not been cured within l0 days following oral or *itt"n
Homclcss Housing Grant Agreement
Revised 12/2019 Page 2 of 10
notice from the County or the Committee, the County may, without penalty and in its sole
discretion and upon r,vritten notice to the Recipient, withholtl all monies otherwise due thcRecipient until such failure to perform is cured. This right to withhotd disbursements is inaddition to all other rights and remedies the County may have available to it under this
Agreement or under law.
ARTICLE IV-REPORTS AND RECORDKEEPING
Section 4. 1 Aanual , l]l aqryts Rq At least onse a quarter, and upon request from tirne to
time, the Recipient shall provide a report on the progress made to date on the project, using sschform and meeting such requirements as determined by the Committee (see also gl
REPORTING). Such progrcss reports shall be provided ty ihe Recipient to the Committee and
to the Kittitas County Auditor's Office at its addre.r *p..ifi.d in Section 5.2. 'l-he Recipient
shall also provide an annual report as specified in the grant guidelines.
Section 4.2 llgcgrd-Kglq$i$rj-&tylgsl The Recipient shall maintain records sufficient rofully documcnt its compliance with all contraotual, grant and lcgal requirements, fbr not lessthan six years kom the last date of work performed or reimbursement pursuant to this
agreement. whichever is later. Upon reasonable adyance notice, the Recipient shatl provide the
County its authorized agents, and State or F'ederal agencies having audit authority related to this
Agreement lvith full access to ail of the Recipient's records relaling to this Agreement or theProjecl. The Recipient agrees to shall defend, indemnily ancl hold harmless the County and its
appointed and elective officers, agents and employe"s, irorn and against all loss or expense for
any audit exccptions or other irregularities in its performance or recordkeeping, including butnot limited to impermissible or unauthorized use of Grant Awar.d funds.-Thls section inuttsurvive termination of this Agreemcnt.
ARTICLE V _ CONTRACT ADMINTSTRATION AND NOTICES
Section 5.1 l'-t:-$oltlgl. The Recipient will secure at its own expense all laborand matcrials
required to perform any work in connection with the Project. The liecipient shall be responsiblefor all applicable payroll, labor and industries pr*riu**, and taxes. All employees and
subcontractors of the Recipicnt shall be covered ty Industrial Insurance in full compliancc
with title 5l of the Revised Code of Washington ("dCW,').
Section 5.2 Cqrntragt.JtcHssglllgliyes. The parties' designatecl representatives shall bc
responsible for the administration of this Agieement and fbr receiving notices given inconnection with this Agreement. The following are designated as the representatives of thc
parties.
FOR TLIE COUNTY: Judy pless, Budget & Finance Manager
County Auditor's Office
205 West 5tr'- Suite 105
Ellensburg WA 9S926
Homelsss Housing Grant Agreement
Revised l2/2O19 Pagc 3 ol l0
11 t t- Lv av - uuz-It u ptt J u ul utr-\.I r
s09-e62-7502
j udy.pless@co.kittitas.wa. us
F'OR THE RECIPIENT:Craig Kelly
700 E. Mountain View Ave. Suite 501
Ellensburg, WA 98926
509-925-1448
qklb**hqpe$s!&e.&1
A pa$ rnay change its designated represcntative or address by providing written notice to the
other party.
Section 5.3 N.lrticcs. Any notice requircd or permitted to be made under this Agreement may
be given pcrsonally, by facsimile, or by first-class, registered or certified mail. A notice
pcrsonaliy delivercd to the other party is deemed given upon proper delivery. A notice sent by
first-class, registered or certified mail is dcemed given three days after mailing, if properly
addressed and having proper postage. Notices delivered by lacsirnile shall bc dccmed to have
been given on the date of transmission if received during the recipient's business day or, if not,
on the rccipient's next business day. E-mail addresses, if listed in this Agreement, are provided
only for convenience and not for notice purposcs.
ARTICLE VI - INSURANCE
Section 6.1 !kq&$rgnal-!,qgql l,iabiliiv. The Recipient will maintain professional legal
liability or professional errors and omissions coverage appropriate to the Recipient's profession.
The coverage will havc a limit of not lcss than One Million Dollars ($1 million) per occurrence.
The coverage will apply to liability for a prolessional error, act or omission arising out of the
Recipient's services under the Agreement. The coverage will not exc.lude bodily injury or
property damage. The coveragc will not exclude hazards related to the work rendered as part
of the Agreemcnt or within the scope of the Recipient's services under the Agreement, including
testing, monitoring, measuring operations or laboratory analysis where such serviccs are
rendered under the Agreement,
section 6.2 Vs&gd,Jltuuuualiss;!il{tinplgysr-Ltsbjiu. The Recipient wiil maintain
workers' compensation insurance as rcquired by Title 51 RCW, and will provide evidence of
coverage to the BOCC. If the Contract is for over $50,000, then the Recipient will also
maintain employer liability ooverage rvith a limit of not less than One Million Dollars ($l
million). The Recipient will request that the Washington State Department of Labor and
lndustries, Workers Compensation Representative, send written verifrcation to the County that
the Recipient is cwrently paying workers'compensation.
Section 6.3 C-emmerui*l Citnc$l Liahility-. The Recipient will maintain commercial general
tiability coverage for bodily injury, personal injury and property damage, subject to a limit of
Homeless Housing Grant Agreement
Revised l2l2U19 Page 4 of l0
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not less than One Million Dollars ($ I million) per occunence. The general aggregate limit will
apply separately to the Contract and be no less than Two Million Dollars $2 miilion). The
Recipient will provide commercial general liability coverage that does not exclude any activity
to be performed in fulfillment of thc Agreement. Specialiiecl forms specific to the industry oi
the Recipient will be deemed equivalent, provided
"ou"rug" is no more restrictive than would
be provided under a standard commercial general liability lolicy, including contractual liability
coverage.
Section 6.4 Miscellaneous Insur?nge pfovis-ions.
A. 'fhe Recipient will place insurance with insurers licensed to do business in the State
of Washington and having A.M. Best Company ratings of no lcss than A-VII, with
the exception that excess and umbrella coverage u*"d to meet the requirements for
limits of liability or gaps in coveragc need not be placed with insurers or re-insurers
licensed in thc State of Washington.
B' 'l'hc insurance limits established by this section are not intended to indicate the
Recipient's exposure, nor are they timitations on thc Recipicnt's indemnification
duties. This section shall survive termination of this Agreement.
C. The policy shall be endorsed and the oenificate shall reficct that the County, its
officers, offieials, employees, agents and representatives, are an additional insured
with respeot to activities under the contract, and the policy will contain no special
limitations on the scope of protcction afforded to the County, its officers, oflicials,
employees, agcnts and representatives as an additional insured.
D. The certificate will, at a minimum, list limits of liability and coverage. The Recipient
will furnish the County with properly executed certifisates of insuiance or a signed
policy endorsemeut, including the additional-insured provision, which will clearly
evidence all insurance required in this Section, belore work under this Agreemcnt
shall commence, but no later than Ten (10) clays after the effcctive date of this
Agreement' Acceptable forms of evidence are the endorsement pages of the policy
showing the County as an additional insured.
E' The Recipient will maintain all required policies in force from the time services
commence until services are completed. The Recipient will provide a cunent or
updated copy of all insurznce policies specified in the Agreement upon the request of
the County. Certificates, policies and endorsements scheduled to expire before
completion of services will be renewed before expiration. The certificate will providc
that the underlying insurance contract may not be canceled, or allowcd to expirc,
except on 30-days' prior written notice to the County. Any ccrtificatc or endorsement
limiting or negating the insurer's obligation to notify the County of cancellation or
changes must be amended so as not to negate the intent of this provision. Written
notice of cancellation or change must be delivered to the County as set forth in
Homeless Housing Crant Agreement
Revised 0n019 Page 5 of l0
n f r- Lv Lv-vvz,-r rupcou ur u(,-\_, r f
Sections 5.2 and 5.3
F. If the Recipient's liability coverage is written as a claims-made policy, then the
Recipient must evidence the purchase of an extended-reporting period or "tail"
coverage for a three-year period after completion of the services.
G. The Recipient's liability insurance provisions shall be primary and shall be non-
contributing with any other insurance maintained by Kittitas County with respect to
any insurance or sclf'-insurance programs covering the County, its elected and
appointed officers, o ffi cials, employees, agents and representatives.
H. Any failure to comply with reporting provisions of the policies will not affect
coverage provided to the County, its of'ficers, officials, employees, agents or
representatives.
I. The Recipicnt's insurance will apply separately to cach insured against whom claim
is made or suit is brought, subject to the lirnits of the insurer's liability. The Recipient
will include all subcontractors as insurers under its policies or will turnish separate
certificates and endorsements for each subcontractor. All coverage fbr subcontractors
will be subject to all of the requirements stated in these provisions.
ARTICLE VII _ INDBMNIF'ICATION
Section 7.1 Indemnification. To the fullest extent permitted by law, the Recipient shall
indemnify, defend and hold harmless the County, the Committee and the BOCC, and all
County officials, officers, employees, agents and each of thcm, from and against all claims in
any way resulting frorn or arising out of the performance of this Agrecment, whether such
claims arise from the actual or alleged acts, errors or omissions of the Recipient, its
subcontractors, third parties, thc County, the Committee or the BOCC, or anyone directly or
indirectly cmployed or supervised by any of them or anyone for whose acts, errors or omissions
any of them may be liable. "Claim" mcans any [oss, claim, suit, action, liability, damage or
expense of any kind or nature whatsoever, including but not limited to attomeys' fees and costs,
attributable to pcrsonal or bodily injury, sickness, disease or death, or to injury to or destruction
of property. including the loss of use resulting therefrom.
Section 7.2 R*oiplent's Duty to Indemnifu 'the Recipient's duty to indemnify, defend and
hold harmless includes but is not limited to claims by the Rccipients or any subcontractor's
officers, employees or agents. The Recipient's duty, however, does not extend to claim.s arising
from thc sole negligence or willful misconduct of the County, the Committee or the BOCCI, or
of thc officials, officers, employees, agents or representatives of the County, the Committee or
the BOCC.
Section 7.3 Watver of nCW't-ltte 5 t lmmunity. Solely for purposes of this indemnification
Horneless Housing Crant Agreement
Revised 12/2019 Page 6 of l0
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provision, the Recipient expressly waives its immunity under'fitlc 5l RCW and acknowledges
that this waivcr was mutually negotiated by the parties. 'fhe Recipient's duty to indempify,
defend and hold harmless shall survive termination of this Agreement.
ARTICLE VIII_NONDISCRIMINATION AND LEGAL COMPLIANCE
Section 8.1 Sg{eliscrinrination. The Recipient shall not discriminate agairrst any employee
or applicant for employrnent, or program participant or program participant applicant, on account
of race, color, sex, religion, national origin, creed, marital status, ug", Vi"tnum era or disabled
veterans status, the presence of any sensory, mental or physical handicap, or any other basis
prohibited by law with respect to any program participation, employment upgrading, demotion,
transfer, recruitment or selcction for training, including appreiticeships and volunteers. Thisprohibition docs not apply, howevcr, to a religious-corioration, association, educational
institution or society with respect to the employment of individuals of aparticular religion to
perform work connected with the carrying on by such corporation, association, educational
institution or socicty of its activities.
Scction 8.2 epupliffsE rvith--L.a\t:L The Recipient and its officials, officers. employees,
agents and subcontractors shall comply with all applicable federal, state and local iaws,rcgulations, rules and policies. The County, the C<mmittee and the BOCC .shall havc noobligation to ensure such compliance.
ARTICLE TX - TER.MINATION
Section 9.1 is:rnin.uion for" t,txs g The Courty shall have the right to terminate this
Agreement at any time after providing written notice consistent with sections S.Z and 5.3 of this
agreement if the funds relied upon for the Grant Awar<l are terminated, suspended or otherwise lost
or impaired in whole or in part.
Section 9'2 lbrmlriitiputbr Cenveniercq Either party may terminate this Agreement for
conveniencc upon giving ths other party at least 30 days' advance wiltten notice. In tiat event, the
Recipient will be entitled to payment only for those expenses and costs reasonably and actually
incurred prior to the effectjve datc of the termination.
Section 9.3 Igmtn4lan elDgfault. If either party defaults in its performance under this
Agreement, the nondefaulting parly may give the defaulting party written notice that it hzrs 30 days
in which to cure the default. If the default is not cured witfiin :0 days of notice, the nondefaulting
patty may terminate the contract. In the event of such a tcrmination, the nondefaulting party shall
have ali rights and remedies available to it under law.
ARTICLE X _ MISCELLANEOUS
Homeless Housing Crant Agreement
Revised 12/2019 Page 7 of 10
L LL r-LvLv'W V4- r rVP!uvql !w-\/tl
Section l0.l !knrr-'iftble.:Usc-!&$g!][y*'l'he Recipient warrants that its planned and actual uses
ofthc Grant Award constitute permissible uses for homeless housing surcharge funds as established
by RCw 36.22.179. This section shall survive termination of this Agreement.
Section I0.2 Organizstignal-status Warrc.nl& The Recipient warrants that it is duly organized,
existing and in good standing under the laws of the state of washington.
Section 10.3 Relatiqnship_gl'pe$iq$'fhis Agreement, and thc parties'and the Committee's and
the Counry's activities under it, shall not be construed as creating any kind of partnership or joint
venhrre, nor shall it be construed as creating any kind of independent contractor, agency or
employment relationship between the parties, the committee, or thc county.
Section 10.4 No'llritd-l)arlt !!ghts. "l'his Agreement is entered into by the parties solely for their
own benefit and it creates or grants no rights of any kind in any othcr party.
Scction 10.5 Assiqnnrcnt. The Recipient shall not assign any of its rights or delegatc any of its
duties under this Agreement without the prior express written consent of the County, which may be
grantcd or refused in the County's sole discretion.
Section 10.6 Choicc qlktwl Y$uq-Jurisclt-q{gL This Agreenrent shall be govemed by thc laws
of the State of Washington. In the event of a legal proceeding, venue shali be only in a court of
competcnt jurisdiction in Kittitas Courty. Each parfy hereby consents to the personal jurisdiction of
the courts of the State of Washington, Courty of Kittitas. This section shall survive the termination
of this Agreement.
Section 10.7 Waivct, No term or condition of this Agrcement shall be deemed waived unless
such waiver is expressly agreed to in writing by the party granting the waiver. In addition,
waiver of any breach of this Agreement shall not be deemed a waiver of any prior or subsequent
breach.
Section 10.8 Amendment. This Agreement can be amendeil only by a writing executed by
the parties.
Section 10.9 lintirc Agrqerngnt. The parties acknowledge that this Agreement is the complete
expression of their agreement regarding the subject matter of this Agreement. Any oral or
written representations or understandings not incorporated into this Agreement are specilically
excluded.
Section 10.10 llea{i-$g}. The headings in this Agreement are for convenience only and shall
not be deemed to affect the meaning of its provisions.
Section 10.11 Severabilit)r. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, such invalidity shall not affbct the validity of the remaining provisions
that can be given effect without the invalid provision, provided that the underlying intent of
Homeless Housing Grant Agreement
Revised \2l20l9 Page 8 of l0
L trl- LU 1!.,-!JVZ-nupcou lll uc-\.lr
the parties can still be given effect.
Section 10.12 Srg,!gigi9-4g!bgu11t Each person signing this Agreement on behalf of a party
warrants that he or she has lull authority to sign this Agiecment on that party's behall.
Section 10.13 Countgrpatts. This Agrecment may be executed in counterparts, each of whioh
shall be deemed an original and all of which together shall be deemed one agreement. Each
counterpart may be executed and delivered by facsimile to the other party.
Section 10.1a Exhibi[t. The following exhibits are incorporated into this Agreement by
reference: (a) Exhibit A __ Attached Application.
BOARD OF CO TY MTSSIONERS
co HINGTON
Comnrissioner
r !l1t APPROVED AS 'TO FORM
I Clerk of the Board- Julie Kjorsvik
Douglas R. Mitchell, Deputy lrrosecuting Attorney
ttil
\t-
f
c)
A
n Deputy Clerk of the Board- Mandv
B Dtputy CltvV or rnr pcc\vd I i Buchholz
RECIPIENT:4 d1{.
By: (Print Name)
Title: 0t@
DA'TE
I'lomeless Housing Grant Agreement
Reviscd 12/2019
h{cr,r4-\fJlC*u
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STATEMENT OF'WORK AND BUDGET- SEE ATTACHED APPLICATION
REGARDTNG THE SENIOR SUPPORT AND ADVOCACY PROGRAM
REPORTING
For each Bi-Annual Report, the agency will use the standardized reporting form developed
by the Homeless and Affordable Housing Committee.
Quarterly Reports are due on or before the l5th day of each April, July, October and the
following January of each year of this Grant Agreement starting on April 15,2020,with the
final report due on or before January 15,2025.
Reports shall reflect the data compiled and provided in compliance with section 3,1
Please send an electronic copy ofeach report to:
Kittitas County Homeless and Affordable .Housing Committee
Taylor Crouch, Kittitas County Board of Commissioners office
Kittitas County Auditor's Office, Judy pless
*Reporting requirements may be arnended by the Committee so that appropriate data can be
gathered.
Homeless Housing Grant Agrecment
Revised 12/2019 Page l0 of l0
L,nprrn Vynp
VvStms
Homelessness and Affordable Housing Funds
2020 Notice of Funds Available Application Form
**Fields outlined in red are required.^
PRqJECT TNFORMATTON
Project Titte; Addison place
Project Site Name{sl: Addison place
Project Site Address(s): ZOS S. pearl Street, Ellensburg, WA gEg26
Which fund source is this proposal for? (select one, see Section 1 of the NoFA for details)
cg Affordable Housing Funds
Homeless and Housing Assistance Funds
Total Project costs (incrudrng otherfunding ond resources/: $g25,632.00
Total Amount R€quested (from Kittttos county Homeless Housing and Assistonce or Affordabte
Housins fundsl: $332, g 1 6.00
Time Frame for Utitization of Requested Funds: ThfOUgh 12t3112020
City, Town or Unincorporated Area to be served: Ellensburg WA
AFPIICAT'TT INFORMATISru
Name of Applicant Organizarion: HOpeSOUfCe
Mailing Address: 700 E Mountain View Ave Suite S01
Citn State, Zip: EllenSburg, WA 9g926
Phone: S0g-g2S_1449
Fax: 509-925- pA4
Emall Address: skgrindle@hopesource.us
Webslte: WWW,hOpeSOUrCe.US
Federal Tax ldentlllcation Number: g1 -0814544
Type of Organizatlon:
Government
Non-Profit
For-Profit
Local housing authority
Tribe
pRqJECr cof,ryffis
Name of Organtzatton Director: SUSan Gfindle
Phone: 509-925-1448
Email: skgrindle
Prolect Contact Name: Cfaig Kelly
ritte: Director of Affordable Housing
Phone: 509-925-1448
Email Address: skglly@hopeSource. us
Fiscal Contact Name: Ariam MehtSentU
Phone: 509-925-1448
Email Address: amgft(sentu@hopesource.us
2
AUTHORtSATtOT{
Acceptance of thls applicatlon rnay be subject to subseguent compliance revi€ws, includlng a reviewol the latest audit of flnanclal stdtement, irreparation of an applliation does not guarantee thatapplicants wlll recelve funds. 8y signing thls grant appticrtion iorm the underslgnid certlftes that alllnformrtlon ls accurate to the bast of hls/her knowledge.
&*l*a-Signature of Authorlzed Representative Oate
l,
PROPOSAL DETAITS
1' Applicant Profile and Qualifications: Tell us about your organization including the
purpose of your work, your goals, any history, and experience working in homeless
andlor affordable housing services, experience managing public funds, and anything
else that describes the organization's qualifications. (250 words max.)
The purpose of HopeSource is to proted those who cannot protect themselves and to
encourage those who can. Our goals are to end homelessness in our community and to support
people in building self-sufficient lives, HopeSource has a 50-year history as a private, non-profit
community action agency operating in a rural environment, making a difference through
programs that stabilize households in crisis including housing, nutrition, energy assistance,
home weatherizatjon, transportation, rental assistance, and youth recreation assistance.
HopeSource serves as the Continuum of Care lead for Kittitas County, operates the Coordinated
Entry system for Kittitas County, conducts the annual Point-ln-Time count, completes the
Cornmunity Needs Assessment, operates the only homeless shelter in the county, built 25 units
of new affordable housing in Cle Elum, kept 167 units of affordable housing units from going
market rate. HopeSource case managers are trained in trauma-informed care, motivational
interviewing, WSCAP family development, home health worker, mental health first aid, and
family stability planning. HopeSource oversees administration of 45 federal, state and local
contracts including; Consolidated Homeless Grant, Housing and Essential Needs, Supportive
Services for Veteran Families, McKinney-Vento, HUD, Rural Development, Housing Trust Fund,
Housing Finance Commission, Youth Homelessness Demonstration Program, and private
funding from the ROE Foundation, Mercer Creek Church, the Shoemaker Foundation, and the
Suncadia Associate Fund,
4
Project Description surnmary: provide a brief summary the project belng proposed and
a general description of how it will address homelessness or affordable housing in
Kittitas county, Be sure and indicate whether the proposal is intended to provide direct
client services or construction, maintenance, or improvement of housing facilities. (2S0
words max.)
This proposal is for construction on a lot HopeSource purchased that currently has a
slngle-family home in an RM zoned neighborhood, adjacent to an existing multi-famtly
structure. The units will be dedicated to homeless households, with a preference for
senior, disabled, and veteran households. Our intention is to demolish the existing
structure and put in 5 one-bedroom units in one structure. The design and placements
of these units will be determined by the architect we hire if the funds are awarded. We
have been conditionally awarded half of the construction costs with a contingency that
Kittltas County also help to fund the project.
2
3, County Priorities: lndicate whlch of the following priorities are being addressed by the
proposed project, (Select all that apply and give a brief 100 word description for each
selected.I
lZ Oui.tt, identify and engage people experiencing homelessness.
Outreach and identification is accomplished through field visits to allareas and businesses
where homeless individuals or families are likely to spend tirne, We track all outreach efforts
on a weekly basis to assure anyone experiencing homelessness is identified and given
continued opportunities to receive assistance. We work closely with the City Homeless Task
force to come alongside individuals identified as horneless with high vulnerability and currently
unengaged needing services. lntakes include a Vl-SPIDAT designedfor each demo6raphic we
serve in order to determine each clients level of vulnerability ind to develop a staliliiy plan
best suited to the needs of each client.
[7] frioritize housing for peopte with the greatest needs.
Hope5ource's prioritization policy is category I "Literally Homeless, and category 4,,those
fleein6 or attempting to flee domestic vioience". We eiiher deploy the Housi-ng First method of
stabilization homeless households or where appropriate, employ diversion and reunification tohelp the client identify alternative, safe housing placernent and by connecting them to theirown support systems and natural resources.
n operate an effective and efficient homeless crisis response system that
swiftly moves people into stable permanent housing.
The Kittitas County Continuum of Care Coordinated Entry System for homeless individuals has been
created to better maximize resourc€s available in the community and to quickly re-house homeless
individuals oI prevent eviction. Using a web-based entry system that can be accessed from any
cornputer or phone the system is positioned to dellver information to the entire housing provider
network immedlately in one step, avoiding the need to go "door to door" for assistance. Agencies then
c'ommunicate among themselves to determine the best choice for the applicant rnd toprioritize services. The client is then contacted for a full intake with the agency best suited to
rneet their needs.
B
Project the fully implemented local plans on the number of households
1.7 housed and the number of households left unsheltered, assuming existingtJJ resources and state policie$.
This project will add an additional5 units to the County homeless stock, a priority of
objective 4 in the recently updated horneless plan. The plan also shows an increased
need for housing that targets senior, disabled, and veteran households who are rapidly
being priced out of the market. This project will also serve as a template for other
developers in the community to add density and housing affordability, Homeless
households will be piaced through coordinated Entry, which will reduce pressure on
homeless response system in the county.
l7l Ruurus racial disparities amongst people experiencing homelessness.
H-opeSource recognizes that race and economic status can significantly limit the opportunitiesof prograrn participants and acknowledge the unequal impac'i of these factors and works toprepare program participants to overcome systemic racism in housing, education, assetbuilding, income, employrnent, and access to high-quality food. ii'o t[. expectat;on thatemployees are sensitive to all diversity within the populaiion of peisons served by theorganization and the employee workforce.
ffOtn.t information you think would be beneficial for the Committee to know,
HopeSource priorities and the priorities of the Homeless and Affordable Housing committee
a^re strongly aligned with Governor lnslee's Reducing Poverty and tnequality lg-Vear plan. All ofthose projected to be served by this funding will haie housing stilnitv plans including
-
education and employment plans, HopeSou?ce's Hope univeisity trovides in-person indvirtual coaching in life skills such as basic budgeting, credit anO OLbt, smart spending, stressmanagement, and healthy living to ensure they are able to maintain their independEnce in ttrelong.term, The HopeSource NoithStar suite works with people to strengthen or gain work skillsand behavior that willsecure and sustain employment.
7
4, Partnerships: List your key community partnerships for the proposed project and what
their role will be. (2S0 words max,)
Key development partners include the city of Ellensburg, Kittitas county, and local
builders.
Key service providers that HopeSource regularly collaborates with in meeting the needs
of vulnerable populations in our community and in this property include: central
Washington Healthcare which provides mental health supportive housing for individuals
coming out of therapeutic treatmenU WorkSource employment specialists; DSHS-SNAp
and temporary financial benefits provide security as clients construct their safety net;
the Social Security SOAR program that assists in moving from disability to abiliry; the
Ministerial Association which offers spiritual counseling and assists with small essential
needs; cen$al Transit, Hopesource Dial-A-Ride, and The Apple Line which provide
transportation services for the community to mitigate the expense of traveling in and
outside the county; Aging and Long-Term Care and people for people which provide
aging in place and support for seniors; Kittitas county commissioners who provide
funding for homeless and at-risk seniors over the age of 65; central washington
Disability Resources and Elmview who provide training and disability support; FlSH
which offers food and social support; the Free Clinic Dental & Vision that provide access
to medical treatment; Goodwill and the Methodist Clothing Bank which provide basic
clothing and household needs; and the Kittitas County Health Network that encompasses all
medical, mental health, and social determinants of health providers in the county.
0
5, Gaps and Duplication ln Services: Descrlbe how your proposed project fills a gap in
homeless andlor affordable housing services in Kittitas County. lnclude a description of
how the project ls or isn't a duplication of current services. (250 words max.)
There is no other pending project of this type in Kittitas county, The Ellensburg Housing Needs
Assessment shows a clear need or one-bedroom apartments to relieve the cost burden to
seniors or d jsabled on a fixed income: "As of 2017, about 70% of all households in Ellensburg
have only I or 2 members, Yet only 28% of housing units offered are studios or l-bedroom, The
lack of smaller format housing can pose a barrier to many people living alone or with a partner
who do not need or cannot afford a large home." Census data shows that in the next ten years
seniors in Kittitas County at or below the poverty line will increase by approximately 1000
households^ without dedicated affordable senior housing units, many of these seniors may end
up horneiess' This project ensures that senior, disabled, and veteran households who have
limlted assets are not living in unsuitable housing for lack of money, The relief of having
affordable housing allows households to provide themselves with lifesaving prescription and
medical care, food, and decent basic clothing. lntended residents can maintain pride in their
independence and ability to care and provide for themselv€s without living in fear of being
without food, without basic necessary medical care, and of being homeless with nowhere to
turn.
I
6. Susteinability: Describe your ability, experience, and resources to implement and
sustain the project during the term of the project, (250 words rnax.)
HopeSource has owned and operated over 300 affordable housing units throughout central
Washington, has developed 26 units and is in the process of developing another 49 units. All
projects have malntained their affordability over the years, are fully funded, and have sufficient
operating reserves to maintain the structures and serve the populations as intended.
HopeSource financial controls include adherence to Fiscal Policies supported by OMB Circular
requirements and accounting practices. HopeSource is annually audited by an external account
and has received X2 consecutive years of clean audits. HopeSource uses the Abila Mlp fund
accounting financial management tystem, which is a comprehensive, configurable solution that
enables staff to make better financial decisions; execute financial management with greater
precision; and better track, report, and manage finances across the entire organization.
10
7 Goals & Objectives: Use the Goals and Objectives Form below to fill in the following
table with your project's goals, rneasures, strategies, and objectives. see the examplesbelow for guidance and use as rnanv forms as necessary.
Exa f1:
GOA[: lncrease number of enrolled in health rnsurance 25%3 2020.
Strategy $1
wlll do to achleve
Measurable Objectives:
Exa le #2:
6OA[; lncrease the number of trail systems avallable to the general publlc wlthin the Clty of Ellensburg from 5to7Decenber 2021.
Nurnber of trail systems open to the public a nd clearly labeled Trails report
will do to rchieve
Strategy *1 Establish public-prlvate partnerships for funding trail
cOnstructiOn and maintenance.
Creote tollored presentstion obout project by March 2020.
Meet with dt least 2 potentiol partners eoch quorter
through June 2020.
Estoblish ot least 2 primory public-privote portnerships t'or
a
I
a
a
t
!
troils Decenber 2020.
tdentify sltes lor new trall systems,
Conduct srte vislts with pattners of patential new sites by
March 2O21.
ldentily pros and cons of potentiol new sites by )une 2021
!p!14t't--1tr-w tr Lt-sites btt December 2021
Bulld new trall systems,
Create plans for canstructian of new troll systems by ftlorch
2021.
Two new troil
I
t
lrc Dalr Sosrcc
lnternal tracking
sheet
StrateSy fll
do to achievewlll
Measurable Objectives:
Strategy il2
do to Echleve
Measurable ObJectives:
Number of new enrollees in health insurance
I
a
com events,
Offer healtft lnsurance enrollment assirtance appolntmenls in
C.eate promotlonal materials to dist(lbute to local partners
Offer health insurance enrollrnent arsistance at locol
, Affend ot leatt 2 community events per quafter in both
the offlce.
ts each month December 2020.
advertising health enrollment as5irtance.
Schedule at leost 4O hours per month ol open walk in
ossisto nce through Dece nt be r 2020,
tnture stoff ovlilobility lor ot teost 25 scheduled
Ptomote the service with ot leost 5 coormunity portners
eoch quorter through December 2020.
Dislribute ot least 100 t'lyers around the community by
Decembet 2020.
Upper Kittitos County and Lower Kittitos Caunty through
December 2A20
wlll ate Source
Measurable Objectives:
Strategy S2
do to ashlevewlll
Measurable Objectives;
Strategy il3
do to aclrl*yewlll
Measurable Objectives;
will be built December 2A27.
1'l
60A!S AND pSJEgilVEt FORM
Fill out white sections only.
GOAtr
lncrease the number of housing units available to homeless seniors, disabled, and
veterans.
strategies sel out below are achieved within their targeted timelines lnternal tracking sheet
Stratega llll
(tlrh.t wlll you do to achleve your goal?)
Measurable Objectives:
Create 5 units of affordablelhomeless housing that
has a preference for seniors, disabled, and
veterans.
Release of City and County funds by March 2020
Permits secured and design review completed
City approves the design and perrnits issues
projected to be 90 days after the release of funds
from the City and CountyMeasurable Objectlves:
Strategy il3r Construction completed
(What wlll you do to achleve your toal?l
Contracts secured with local builders for
completion of complex and landsceping by
December 2020
wlll know ile
5trat41 f2t
(What wlll you do to schleve your goal?l
Measurable ObJectlves:
_ !-U'.9cap19ylX[t!3,9qn9 fa r ry {' y * u. lav e. y 9r e t I a n 3 $ t.r q { y $.i ! s. {9! | h.g:.g yg g:yt *
12
BUOGET I{ARRATIVE
l. Funding Utilizatlon: Describe how the funds will be used to support the proposed
project, For example, will the funds be used for staff time, supplies, consultants,
contractors, construction costs, dlrect customer services, etc.? {250 words max.)
see attached spreadsheet; Attachment A for complete use of funds. Hopesource has
purchased a lot in the Clty of Ellensburg for S160,000, we have conditional funds awarded to
us by the City of Ellensburg contingent on these funds rounding out the project. Total
development of the project will be 5825,352 with construction and soft costs totaling
Sges,362. The ask for the county will be half of construction costs, the other half supported
by the city. HopeSource will retain the debt on the purchase of the land. City and County
investment will be approximately S 133,000/un it.
l3
2. other support: Describe any monetary, in-kind, donations, grants, or other types of
support that wlll be used for the project. lnclude both guaranteed support and support
that may still be uncertain. (250 words max,)
ln the first public-private-nonprofit partnership in Kittitas county, the followlng partners have
committed funds defined below:
City of Ellensburg: $lgZ,gt6.OO
County of Klttltas Homeless & Affordable Housing Funds: S33Z,glO.00
HopeSource Bank Loan: S160,000.00
11
3' sustalnablllty: Describe how this project would or wouldn't be sustained lf these
Homelessness Prevention and Affordable Housing funds were not available either
currently or ln the future. (250 words max.)
The rental income from the occupants- wlll support operailons and rnortgage payments. ltis our intention to keep i!! nro;dct affordable ior. riinirur oJlo v.rrc renting only tohouseholds at or below 50%-AMl.
t5
4, Partlal Fundlng: lf this project were to receive only partial funding from thls source,
how would the prolect be lmpacted? How would the proposal be adJusted for less than
the requested amount of funds? (250 words max.|
lf there is only partial fundlng available, the proJect will not be able to go forward.
t0
Sample Pro Forma Single Family Rentats
ADoul thlt Tool
llorcrl0uon;
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.!ha Jrqtor {€qutre nrors compbx-enelysb.' Ths wortiooft rrcirdei seFinr,;wotti$ho€ts tor lhs dovotopment txrd&pt. oporailng hrdq€, grd t0-tr;-*cash llow Broieclions. Th€ fo.rrlh u'nrtrshedt is r frine to mrnpte$rb rnegro bnne.
How to Adlet $rlr tlocumrnt:
P-r gg qgoyryq mB ts en oxrmp{a. r 0lb L l(,aprad, llnesftorrd Do.ddcd, drlotsd or efi€nd€d b ctrrform b ilxi poticla$plscr(krr€dof lha u&/c f{Sp pmqnrn.
$olrco of Document
Fn.ry b..r.n" Tq! edcpt€d fiom r ${€.(rrtnsl $eeted Uy pffl Joll€a oflcF lnlernrtlonrl. Fo,ftme of the grukb wr'[ adrpled frun-pro bmtasrn d !y h. Ctty ol Ornvar.
t)l.clalmcr:
fils docurpnl b not rn ofllclrl HUD tbcrgngrt ntl llil ,td b.€ntevmwsd by HUD counsol, lt ls provldod tor lnlonn*ilonel p$rposeg only.
SV_qnOtnC egreegenl shflrld be reyloved S aflorneys mr tite prnnrb
tno agreiem€nt and musl cfilomr to stsle erxi tocat n*e .
Items
flnt
fhb rt|olr(l h prn ot th,r llif Tohlrr. tddhbmt tqth rrrurc nry hrlocld rt
U S..Orp*!l1.ot o{ fhralng ,'ld lrrb*r O.tn{openfirt
fN{thbo.hood Sbedit trot Progrlnr
Sample Pro Forma and Guide
Single-Family Rental Development
rl!rI,,^l\,p
Sample Pro Forma Singla Family Rentals
Sample NSP Single-Family Rental Developrnent Budget
Project Neme: Addiron place
Developer;
Addregc:
Use.s
Costs:
Gonstruction
i 449.600
Bond Promlum
,'onstrqglio n Contingency 10%i 491,560
Soft Costs:
Sources
Supportabla Oeft fsce Operzttng Budget)
Addlllonal Sources of Funds:
NSP Sofl 2nd Mortgage
Owner/lnvestor Equity
Olher
Total Developmenf Sourcesi
Gap(Or Excess SourcesJ ;
Green Cells are User lnput
0 White Cells are Aulomaticslty Calcutated Values
207,870
(1,803,282)
2,321,O4
s
$
$
$
$
s
Demolitlon 10.000s
s 30.000
or $20.000
$2.500
s 5.000
I and
$
s 2.000
of $
$
CanYing Co$ts - Real Estate
$
$
$
fiI
$
$
Loan Fee
Construclion interest
$3.000
Soft gost Contlngency l0o/o 6,750
Dev?loper Fee 7So/a b 86322I 161,072
465,632
Sample Pro Forma Single Family Rentals
Operating
Prcject NsmeAddlson place
Tot NSP Units Serving Households below O0olo AMI
lncome:
Green Cells are User lnput
White Cells are Automatically Calcutated
60
Average Per Unit
50
100
150
375
56
29
460
250
:oo
375
1,125
$
$
s
$
$
$
$
$
$
$
$
$
s
$
$
$
$
$
$
$
$
$
$
$
$
$
Rent:# Units Annual Rent
0 350 $
One 4 6 740 $35,520Two Bedroom 0 s
rncome
Unils
Gross Reaf
$
Less
Vacancy 3.0o/o $(1.066)
Bad Debt $(710
s 33,7U
Annual
s
Fees
400
Adrnin
5 225
of col
Ma
axes 7.650/o 115
$
snow
rlie$$1,500
1
contracts
Malntenance:
& hot
300
Sample Pro Forma Single Family Rentals
3,000
$
$
100
L
$7,100
Reserves
Per Unit Annual
$25 (1,500
25
Before
1
1 504
1 81
Su Debt Service Calculation:
Suppartable Debt on Terms Above:$ 207,869.50
ties to
750
1,050
$
$
b
$
$
$
$
$
$
U
$
1,250
525
1,775
4,560
3,876
375
375
3J26
2,977
14S
$ 51,967
NOI Before Reserves & Debt Syc...$I 504
1,05
30
Rate 4o/o
Sanple Pro Fo.ma Sjngte Famrty Rentats
Sample Single-Family Rental 2O-year Cash Flow projection
ProJect Name: Addison place
ln@me Adjuster 2.256/0 1 5Ao/.
P.oject Add.ess:
Expense Adlusterl
o
lncome:Year 2 Year 3 Yeat 4 Year 5 Year 6 Yea( 7 Year 8 Year I Year 10J# a;35 T 37_7r5 t sE.ft{5 :EE2 6 4n.3t9 t al.nd
lncome:Year 1 1 Year 12 Year t3 | year 14 Year 1 5 Year 16 Year17 | Year18 Year 1 9 Year 20. .n.gaz t at .lg lW I aaaTa a7-f75$I nil7 af
Sample Pro Forma Single Family Rentals
Guide to completing Development and operating pro Formas
And Cash Flow Projections
A. DEVETOPMENTPROFORMA
This worksheet is used to calculate your total deveiopment budget. tt includes all uses offunds for hard andsoft costs as well as sources of funds. From the operating budget worksheet, it carries over the amount of amort8age loan that the project can support, then subtracts the mortgage amount and developer equity byformula to determine the required NSp funding amount.
Acquasition Coits
ln this version separate lines are shown for land and building costt although these could be combined intoone line item if desired' Soft costs related to acquisition, such as the appraisal and closing costs, should belisted under soft costs.
Construstion Costs
The amount should be estimated until there is a contract, then the actual contract amount should beentered. Besides the "hard" costs of materials and labor, the contract price will typically include such
components as an allowance for the contractor's project-related expenses or "general requirements" suchas building permits, fencing around the site, temporary storage for materials, the contractor,s
overhead,/profit, and the cost of a performance bond or letter of credit provided by the contractor to insurethat the project will be completed (if required). This amount should also include site improvements such asexcavation for foundations or utilities, grading of the site, walkways, on-site roads, landscaping outdoorlighting or parking spaces. Estimates of construction costs for singl*family rental rehab projects are usuallycompleted by a rehabilitaticn specialist based on a work write-u j. lf subsiantial rehab or structural repairs
are involved, the estimate or a Portion thereof might be created by an architect with input from a engineer.ln the case of single-family rental rehab projects funded by NSP, limited off-site infrastructure costs might beincluded that are crucial to making the home marketable. This could include work repairing contiguous andnearby sidewalks or alleys.
lncluding a construction contingency amount outside the construction contract is typical and advisable.ll<rlallv thelmnuntof cnntinsencvfrrndcisnntsharpdwiththecnntraclor-ThecnntinEpnavisrrspdiafrrn,{
Sample Pro Forma Single Family Rentals
change orders. rypi."r *ntini"-n;;;;;;; ;;;;;;;ir;;;.;;;;;;;;.;;;. ;;:[, ;;;; -
carefully the proiect has been evaluated and specifications identified, the lower the contingency amountneeded.
Soft Costs
'Architectural fees should be based on estimates from an architect. Fhese fees may be based on a certainpercentage ofthe consiluction contract amount, a fee per dwelling unit, a flat fee for services, or anotherbasis' with rental rehab projects, the specifications and cost estimates are often completed by a rehabspecialist, either a specialist on the developer's staff or a contracted specialist. Note that design andconstruction management costs could be So for budgeting purposes if the developer fee has been calculatedto pay for all project planning and management costs.
o The engineering fee should also include mechanical or structural engin€ering costs, if any, incurred as partof the design process.
o Environmental review costs could include the cost of a third-party contractor completing revie$/s requiredtodetermineclearance; thethird-partyreviewswouldneedtobeapprovedbythegranteeorother
"responsible entity".
' A survey prior to acquisition may or may not be required by NSP grantees for single-family programs. prior
to providing construction or permanent financing, it may be required by the mortgage lender. A survey canreveal easements that make sorne of the land unbuildable.
' As-is appraisals are required in NSP for foreclosed properties, to determine if the selling price is at least 1%above the market value. lt is a good practice to ask the appraiser or another entity to provide ,,comparable
rents" forthe housing units in completed condition, based on a transrnittal ofthe plans and specificationsorinspection of the unit{s) after the redevelopment is complete. The "rent comparables,' should be used toestablish the rents in the operating pro forma.
r Property/casualty insurance should be obtained by the developer for the interim pe riod before builder,s
l':111'_i_':,:::j:T"_'ll,_"-."I"3_ll:1"-1:_::':T'_':-:t:,,Esf.T::1,:_.ll::_1T::1"_y9H11"1111,i,"
Sample Pro Forma Single Family Rentals
oulloers rlsK lnSurance as Insurance atalnsr casuatry ano ilaoltty nsKS ounng conslrufiton. urnenutse,builder's risk insurance is typically obtained by the building contractor and will be included in theconstruction contract amount, above. ln addition, grantees typically require developers to obtaincommercial general liability insurance, the cost of which is typically covered by the developer fee.
' NSP funds or other funds can be used to pre-fund a replacement reserve so long as the amount isreasonable and as required by a lender or equity investor.
' operating reserve ^ Pre'funding this reserve can cover the cost of operating the property while lease up isoccurring, or during periods when the property is not fully leased up. ln this example, the operating reservewascalculatedconservativelyastwomonth'srentrevenues. TobefundedbyNSp,HUDrequiresthatthis
amount be reasonable and as required by a lender or equity investor.
' Tenant relocation- For occupied properties requiring relocation of tenants, the developer agreementshould spell out whether the financial and management responsibilities of tenant relocation lie with thegrantee or developer.
o Rent-uP marketing costs - This line item includes the estimated costs of rent-up, such as advertising.Develop€rsshould makesurethatthestaffingcostsofrent-uparecoveredeitherinthedevelopment
budget or in the operating budget for the fir5t year, but not in both pro formas.
' Soft cost contingency - This is a contingency amount that may be used if one or more soft costs are higherthan anticipated.
' Developer fee - This is the fee a developer charges to the project for their time and risk, Developer fees asa percent of total development costs generally fall between 10% and 15%, tf funded by NSp, HUD requiresthat the fee be reasonable and customary in the market for this type of development project. Developerfees should be calculated based on the estimated time, effort and risk required of the developer. ln general,
higher developer fees are allowed if the developer is not being reimbursed by any funding source foi
Sample Pro Forma Single Famity Rentels
construction financing costs and holding costs and/or has equity at risk in the project. Fees are typicallylower if NSP or other sources are funding all holding costs and the developer has little or no equity in theproject' ln general, fees should also be lower for "easy" projects - srch ai a.qui.ing and selling homes ingood condition that require little or no rehabilitation, sometimes fees are est;blished as a specific dollaramount per dwelling unit; this may be appropriate in projects where the per-unit development costs arerelatively low. For example, 15% of a S4o,oo0 total development cost may not be sufficient incentive for adeveloper to participate' Finally, it is generally not a good practice to bottr pay a fee and also reimburse thedeveloper for staffing and other internal costs; this raises the possiblity of ,,double dipping.,,
B. OPERATING PRO FORMA
The operating Proforma worksheet is designed to summariee a rental project,s bedroom distribution,
'ncome
tar8ets, operating income and expenses, net operating income (Noll before debt service, estimateddebt service (from the operating page) and the NSP gap financing needed. This example shows only a singlerental unit and should be adapted as needed by the inAividual project.
. First enter the proj€ct Name, Developer Name and Address of property"
' Enter the number of dwelling units of each t1pe. A proforma could be used for several scattered-site unitsin one project, but with single-family rentals, the pro forma will typically be for a single dwelling unit, thoughit might be for a 2-4 unit property.
t Enter the estimated monthly rental amounts. These should be based on "rent comparables,, of similarunits in the vicinity of the project, io conditions similar to the after-redeveloment condition of the rentalunit(s) in the project.
o No "other income" is included because single-family rentals do not have income from sources such ascommon laundries or renting a function room.
' Next, enter your project's estimated annual expenses in the expense line items. These should be based onpast experience of the developer or data obtained from similar types of rental projects. Maintenance costsof detached or semi-detatched single-family rentals are typically higher than for low-rise apa.tm€nts.However, tenants in scattered-site rental units are typically responsible for grounds maintenance, per theirleases.
Sample Pro Forma Single Family Rentals
' Net operating income (Nol) is calculated by subtracting total operating expenses from gross effectiveincome. This indicates the amount of income available to pay debt service and provide for ,'debt servicecoverage.l'
' "Supportable debt" is then automatically calculated by a fiormula based on the Nol and the assumptions inthe "supportable debt service calculation" grid. ln this example, the calculation assumes a debt service ratioof 1'2, which means that the Nol must be 1.2 times lor 20% higher) than the amount available for debt
service. The debt service amount is also calculated automatically based on the supportable debt amount.
B. zG.YEAR CASH FLOW PROJECIIOT{
It is a standard requirement of lenders for borrowers to provide a multi-year cash flow projection for aperiod of years equal to the term of the loan, This projection spreadsheet allows users to enter assumptions
about inflation in rents and operating costs which automatically calculate increased income and expense
amounts for each year. This projection is used primarily to demonstrate that the debt service can be paid in
each year.
KtRrras Ccunty
lof;::::rs and Af,"oidtrble thrslis Fric\
ANXU& ?ROIEOBUDCLl.
SNUALTOTALS@$w
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f*$Ilffi *:tilrl1tf i lH ;:tril'lP.O. Box ?50EClncinnati OH qSZOI ln rcply refer to: OZ4gSl4008Oct. 07, 2008 LTR CI6SC E09r-08145qq 000000 0o 000
00015r05
EODC r TE
us at the tel6phone number
H OPESOUBCE
60t lt 5TH AVE
ELLENSBUR6 I{A ?49?6
ffi
n 59?2
our records indicate that a determination letter ras rssued Ln|IARCH t L9671 that recognlzsd you as €xenpt from Fedrral lhcoma tax,and discloras that you are currently exempt under section 501(cl(51of the Internal Revenue Code.
Employer Identlfication Number iPerson to Contact:
To.l I Free Telep hone Hurnber :
Dear 'lAXpAyER:
This is in rosDonse totax-exempt status.
ff you have Eny questlonr, please callshown in the headlng of this letter.
9l - 08 l(t9q4
I'tRS. LUTES
r-E77-829-5s00
your request of Sop. Zjt Z0Og, reOardlng your
te foundation ylthin theyou are described in
as provided in seetion 170 sftransfersr oF glfts to you orestate and glft tax psrp05asof sectiEns 2055,2LO6, and
Our records also lndicate you are not a Friuaneaning of sectlon 50g(e) ot tha Code becaqsesection(s) 50?(a)(l) and fZ0(b)(r)(A)(vi).
Donor-s firay deduct contributions to youthe Code. Sequests, leOaciesr devises,for your use are deduetible for Federalif they meet thc appllcable provisions2822 of the Code.
Sincerely yours,
@t'Ua'/,,"t'*'
tllchele H " SuIllvan, 0per, t{gr.Accounts llanagcmcnt 0perations I
'r.. ilhr. r,vrr rdrdhrta$ (rrirtu*, tF*f
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AfiNUATTOTAE@
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P. O. Box ?506Cinclnnati OH (520t
HOPESOURCE
601 r{ 5TH AVE
EL LEI{SIIURG TdA 98926
Enployer Idantification Nuorber rperson to Cqntoct ITolI Free Telephone Numbcr:
DeaT .IAXPAYER:
This is in rasponse totax-exenpt status.
If you heve any questionsr please callshown in the heading of this letter.
9l-08lq54.t
IIRS. LUTES
l-877-A29-5500
your request of SeF. ?ge 2009, rcgardlns your
te foundation within theyou are described in
as providcd in scct ion I 70 oftransfersr or fllfts to you orestate and gift tax purpo5egof sections 2055, ?Lg6 r afld
fn reply rcfer tor 02485I400SOct. 0t, Z0D8 LTR (l6AC E09r-08145(4 000000 00 000
00015105
80DCr TE
us at the telephone nqnber
11f9?t
0ur records indicate that a determrnatisn letter xas issued 1nt'fARCH r L967, that rccognlzod ycu as exenpt f rom Federal lftcone tax,and discloseF that you are cunrently exenpt und€r scction 501 (c) ( i)of the Internal Revenue Code.
0Or recsrds also indicate you are not a Frlvaoeaning of section 809(al of the Code becausesection(s) 809(a)(I) and ll0(bt(l) (A)(vi).
Donors may dedqct contributions to youthe Gode. Bequests, lsgaciesr deyj.ses,for your use are deductible for Fedcralif they neet tha eppltcable provisions2EZe of the Code.
Sincerely yours,
T1icr.a-t ,/,rt;"*,,
Hlchrle H. Sulliuan,Accounts f.lonagemcnt
0per. llgr.
Opcrations I