2026-09-29 - Select Budget Committee

[MUSIC] -- GOOD MORNING. SEPTEMBER 29th, 2026. SELECT BUDGET COMMITTEE MEETING WILL COME TO ORDER. IT IS 9:30 A.M. ON DAN STRAUSS. CHAIR OF THE COMMITTEE, COUNCILMEMBER KETTLE, IS EXCUSED UNTIL HE

ARRIVES. CLERK WILL YOU PLEASE CALL THE ROLL? -- COUNCILMEMBER RINCK. -- PRESENT. -- COUNCILMEMBER RIVERA. COUNCILMEMBER SAKA. COUNCILMEMBER FOSTER HERE. COUNCIL PRESIDENT. HOLLINGSWORTH. -- PRESENT.

-- COUNCILMEMBER JUAREZ PRESENT. COUNCILMEMBER LIN HERE AND CHAIR STRAUSS HERE. SIX. PRESENT. -- THANK YOU. ANYONE NOT PRESENT IS EXCUSED UNTIL THEY ARRIVE. WE ARE HOPEFULLY GOING TO TAKE ABOUT A ONE

HOUR BREAK TODAY, MUCH LIKE WE DID YESTERDAY. WE WILL SEE HOW QUICKLY WE CAN GET THROUGH PRESENTATIONS. THESE ARE THE LAST THREE DEPARTMENT PRESENTATIONS THAT WE ARE HAVING IN COMMITTEE. THIS IS ALSO

THE LAST DAY THAT DIRECTOR ALI WILL BE AT THE COMMITTEE TABLE. SO IF YOU HAVE BURNING QUESTIONS TO GET ON THE RECORD, TODAY IS THE DAY. IT'S ALSO A GREAT DAY BECAUSE IT IS THE OPENING OF THE PINEHURST

LIGHT RAIL STATION THAT COUNCIL PRESIDENT EMERITUS FOUGHT VERY HARD TO GET BUILT, AS WE'RE STILL FIGHTING FOR GRAHAM STREET AND FOR BOEING ACCESS FIELD. IT'S A DEMONSTRATION THAT WHEN YOU BUILD IT

NOW, IT'S CHEAPER THAN SOMEDAY IN THE FUTURE. IT'S ALSO MY DAD'S 80th BIRTHDAY TOMORROW. HAPPY BIRTHDAY DAD. WITH THAT, WE'VE GOT THREE ITEMS ON THE AGENDA TODAY. OFFICE OF HOUSING SEATTLE DEPARTMENT

OF CONSTRUCTION, INSPECTION AND OFFICE OF PLANNING AND COMMUNITY DEVELOPMENT. BEFORE WE BEGIN, IF THERE'S NO OBJECTION, THE AGENDA WILL BE ADOPTED. HEARING NO OBJECTION, THE AGENDA IS ADOPTED. I'M

ALREADY RUNNING A MINUTE LATE WITH THAT CLERK. WILL YOU READ THE TITLE OF THE FIRST ITEM INTO THE RECORD? -- AGENDA ITEM ONE. OFFICE OF HOUSING FOR BRIEFING AND DISCUSSION. -- THANK YOU. WE HAVE

DIRECTOR AND WE'VE GOT VICE CHAIR RIVERA WITH US AS WELL. WE'VE GOT DIRECTOR KELLY LARSON, BECKY GUERRA OF OFFICE OF HOUSING DIRECTOR ALI PANUCCI. AS USUAL, DIRECTOR LIZ WHITSON, BACK WITH US AT THE

COMMITTEE TABLE TODAY. I'M GOING TO TURN IT OVER TO YOU AND RUN THROUGH YOUR SLIDES. IF THERE ARE NATURAL STOPPING POINTS, WE'LL STOP TO TAKE QUESTIONS. OTHERWISE WE'LL JUST ROLL RIGHT ON THROUGH IT

AND THEN COUNCILMEMBER FOSTER WILL OPEN US UP AND CLOSE US OUT. WITH THAT. OVER TO YOU, DIRECTOR. AND WE ARE SO EXCITED TO HAVE YOU AFTER YOUR CONFIRMATION. WHAT WAS THAT JUST A WEEK AGO? SO GREEN

LIGHT MEANS GO. -- THERE WE GO. THANK YOU SO MUCH FOR HAVING US. THANK YOU. CHAIR STRAUSS AND COUNCILMEMBERS. I'M KELLY LARSON, DIRECTOR OF THE OFFICE OF HOUSING. I'LL ASK BECKY TO INTRODUCE HERSELF.

-- AND BECKY GARRETT, DIRECTOR OF FINANCE FOR THE OFFICE OF HOUSING. -- BEFORE GOING INTO THE PRESENTATION ON OUR 2027 2028 PROPOSED BUDGET. I'D LIKE TO BEGIN WITH SOME CONTEXT FOR THE DISCUSSION. IT

IS THE VISION OF THE OFFICE OF HOUSING FOR EVERYONE TO HAVE A HEALTHY AND AFFORDABLE HOME. THE OFFICE OF HOUSING STRIVES TO ACHIEVE THIS VISION BY INVESTING IN COMMUNITY PARTNERS TO CREATE AFFORDABLE

HOUSING, PAYING SPECIAL ATTENTION TO EQUITY AND DISPLACEMENT PRESSURES, WITH A FOCUS ON INCREASING HOUSING OPPORTUNITIES FOR PEOPLE WITH LOW INCOMES. AS YOU ALL KNOW, WE ARE LIVING THROUGH MULTIPLE

YEARS OF VERY CHALLENGING CONDITIONS FOR THE AFFORDABLE HOUSING SECTOR IN SEATTLE AND ACROSS THE COUNTRY. THE CURRENT MARKET IS VOLATILE AND AFFORDABLE. HOUSING PROVIDERS ARE OPERATING UNDER HIGH

STRESS AND UNCERTAINTY. COUNTY, STATE AND FEDERAL FUNDS ARE OVERSUBSCRIBED AND DECREASING IN AVAILABILITY. WE EXPERIENCED WITHDRAWN FEDERAL FUNDING FROM OUR REGION THROUGH THE LOSS OF EMERGENCY

HOUSING VOUCHERS VALUED AT $25 MILLION AT THE END OF LAST YEAR, AND A LACK OF NEW CONTINUUM OF CARE. COC OPERATING SUPPORT FOR NEW SUPPORTIVE HOUSING PROJECTS. WE CONTINUE TO FACE ONGOING FEDERAL

THREATS, ESPECIALLY WITH THE COC, WHICH HAS CREATED ADDITIONAL UNCERTAINTY IN THE SECTOR FOR SUPPORTIVE HOUSING, IN PARTICULAR OPERATING COSTS SUCH AS INSURANCE AND PERSONNEL ARE INCREASING AND

OVERALL COSTS RELATED TO CONSTRUCTION MATERIALS, LABOR AND FINANCING CONTINUE TO RISE. WE ARE FACING HEAVY COST PRESSURES AS INVESTOR REQUIREMENTS ARE INCREASING, AND OTHER FUNDS FOR AFFORDABLE

HOUSING DEVELOPMENT AND OPERATING ARE DECREASING IN OUR REGION, INEQUALITY HAS CONTINUED TO GROW, INCREASING HOME OWNER HOUSEHOLD INCOMES IN THE UPPERMOST QUARTILE HAVE CONTINUED TO PUSH SEATTLE'S

AREA MEDIAN INCOME UPWARD. FROM 2000 TO 2020. SEATTLE'S AM I INCREASED ON AVERAGE 3% EVERY YEAR IN THE LAST FIVE YEARS, SEATTLE'S AMI HAS INCREASED ON AVERAGE 8% EVERY YEAR. THIS INCREASING CITYWIDE

AREA MEDIAN INCOME RAISES INCOME, RESTRICTED RENT LIMITS BEYOND WHAT MANY LOW INCOME FAMILIES CAN AFFORD. AND IT'S REALLY CHANGED THE WAY WE DEFINED DEFINE WHAT IS TRULY AFFORDABLE HOUSING. AT THE

SAME TIME, A LARGE PERCENTAGE OF THE O FUNDED PORTFOLIO IS OVER 50 YEARS OLD. THE WEAR AND TEAR OF DECADES IS BECOMING MORE DIFFICULT TO PUT OFF TO A FUTURE YEAR TAKEN ALL TOGETHER, THE COST OF

DEVELOPING AND OPERATING AFFORDABLE HOUSING IS GROWING, AND LOCAL FUNDING SOURCES ARE STRAINED AS WE TRY TO ADDRESS MULTIPLE CHALLENGES. THROUGH ALL THIS, THE GOOD NEWS O WILL CONTINUE DEVELOPING AND

OPERATING AFFORDABLE HOUSING, PRESERVING, ACQUIRING AND CONSTRUCTING RENTAL AND FOR SALE HOMES FOR PEOPLE AND FAMILIES WITH LOW INCOMES. OUR AGENCY STAFF AND PARTNERS ARE MOVING FORWARD WITH

AFFORDABLE HOUSING PROJECTS AT MOUNT BAKER STATION. LAKE CITY COMMUNITY CENTER AND MONTLAKE. THESE PROJECTS MET KEY MILESTONES TO MOVE FORWARD. THIS YEAR. WE HAD REALLY GREAT PRESENTATIONS AND

MULTIPLE COUNCIL COMMITTEES, ESPECIALLY IN HOUSING COMMITTEE WITH CHAIR FOSTER THESE COMMUNITY INVESTMENTS WILL MEET THE NEEDS OF OUR GROWING POPULATION AND VIBRANT COMMUNITIES THAT FEATURE ACCESS TO

TRANSIT, NEIGHBORHOODS, SMALL BUSINESSES AND SERVICES, THE IMPACT AND PROGRESS OF OUR CAPITAL FUNDING IS NOW VISIBLE ON OUR PUBLIC FACING HOUSING DOLLARS AND ACTION DASHBOARD WAS LAUNCHED THIS YEAR

AND PROVIDES QUARTERLY UPDATES ON AFFORDABLE HOMES UNDERWAY AND FUNDED BY THE OFFICE OF HOUSING. AS OF THE SECOND QUARTER OF 2026, O HAS OVER $871 MILLION IN ACTION TO BUILD AND PRESERVE OVER 7000

AFFORDABLE HOMES, WITH OVER 623 MILLION UNDER CONTRACT PROJECTS THROUGHOUT THE CITY OVERALL, THE OFFICE OF HOUSING PRIORITIES HAVE REMAINED RELATIVELY CONSISTENT FOR SEVERAL YEARS AS WE WORK TO BUILD

NEW AND SUPPORT EXISTING HOUSING, SERVING AS A STEADY AND RELIABLE FUNDER OF AFFORDABLE HOMES. IN OUR WORK, WE AIM TO BE A THOUGHTFUL INVESTMENT PARTNER THROUGH DYNAMIC MARKET CONDITIONS AND READY TO

PROVIDE CRITICAL SUPPORT TO THE AFFORDABLE HOUSING SECTOR. UP TOP HERE, PROTECTING AND PRESERVING THE O. FUNDED PORTFOLIO OF 21,000 HOMES REMAINS ONE OF OUR HIGHEST PRIORITIES. BY ENSURING THE LONG

TERM PHYSICAL AND FINANCIAL SUSTAINABILITY OF OUR PORTFOLIO, WE ARE WORKING TO STABILIZE SEATTLE'S AFFORDABLE HOUSING ECOSYSTEM. OUR TOP PRIORITY IS TO PROTECT AND PRESERVE SUPPORTIVE HOUSING, A

PROVEN SOLUTION TO ADDRESS HOMELESSNESS. APPROXIMATELY 30% OF THE O PORTFOLIO IS SUPPORTIVE HOUSING OR PERMANENT HOUSING, WITH SERVICES INTENDED TO SERVE PEOPLE EXITING HOMELESSNESS, LIVING WITH

COMPLEX HEALTH CONDITIONS AND EXTREMELY LOW INCOMES IN PARTNERSHIP WITH COUNTY, STATE AND FEDERAL FUNDERS. SEATTLE SUPPLY OF SUPPORTIVE HOUSING AND PERMANENT HOUSING WITH SERVICES HAS INCREASED

STEADILY SINCE 2020. BETWEEN 2020 AND 2025, OVER 1500 UNITS OF SUPPORTIVE HOUSING WERE PLACED IN SERVICE. OVER 900 UNITS OF PERMANENT HOUSING WITH SERVICES WERE PLACED IN SERVICE IN THE SAME TIME

PERIOD. A TOTAL OF 2400 NEW APARTMENTS FOR PEOPLE EXITING HOMELESSNESS. ALTHOUGH THE COST OF BUILDING LOW INCOME, AFFORDABLE HOUSING AND SUPPORTIVE HOUSING ARE SIMILAR, SUPPORTIVE HOUSING REQUIRES

THAT LONG TERM OPERATING SUBSIDY, WHICH HISTORICALLY HAS BEEN FUNDED BY A COMBINATION OF LOCAL AND FEDERAL FUNDS, INCLUDING THE COC, LARGELY DUE TO THESE CURRENT FEDERAL FUNDING RISKS. WE HAVE

INSTALLED SUPPORTIVE HOUSING PIPELINE IN THE CITY FOR THE FIRST TIME IN A LONG TIME, WITHOUT FEDERAL FUNDS AND AVAILABLE VOUCHERS, LOCAL FUNDERS WOULD NEED TO IDENTIFY SOURCES TO FUND ONGOING SERVICE

AND OPERATING COSTS TO BRING NEW SUPPORTIVE HOUSING ONLINE. THE OFFICE OF HOUSING DID JUST THAT IN THE LAST YEAR, PROVIDING NEARLY ALL THE SERVICE AND OPERATING SUPPORT FOR THREE NEW SUPPORTIVE

HOUSING PROJECTS O HAS CONTINUED WORKING CLOSELY WITH COLLEAGUES ACROSS THE CITY AND COUNTY TO PLAN FOR AND MITIGATE THE IMPACTS OF POTENTIAL FEDERAL FUNDING REDUCTIONS. IT IS POSSIBLE THAT MITIGATION

FUNDS WILL BE NEEDED IN 2027 TO RESPOND TO FEDERAL CUTS AND PROTECT THE CITY'S SUPPORTIVE HOUSING INFRASTRUCTURE, ENSURING THAT OUR MOST VULNERABLE NEIGHBORS DO NOT LOSE THEIR HOMES. SEATTLE IS

PREPARED NEXT LINE MEETING OUR SEATTLE HOUSING LEVY, PRODUCTION, PRESERVATION AND OPERATIONAL GOALS IS A TOP PRIORITY. THE 2023 SEATTLE HOUSING LEVY SPANS A SEVEN YEAR PERIOD FROM 2024 TO 2030, AND WE

HAVE NEARLY COMPLETED THE THIRD YEAR OF THE LEVY. O AND OUR PARTNERS ARE ON TRACK TO ACHIEVE OUR 2023. SEATTLE HOUSING LEVY GOALS. OVER THE FIRST TWO YEARS OF THE LEVY, FROM 2024 TO 2025, WE'VE

INVESTED TO BUILD OR PRESERVE OVER 1600 AFFORDABLE RENTAL HOMES, WHICH IS 47% OF OUR GOAL. WE PROVIDED OPERATING, MAINTENANCE AND SERVICES SUPPORT FOR 712 UNITS, WHICH IS 62% OF OUR GOAL. AND WE HAVE

ALSO ASSISTED OR INVESTED IN NEW, PERMANENTLY AFFORDABLE, FOR SALE HOMES FOR 126 HOUSEHOLDS, WHICH IS 34% OF OUR GOAL. WE ALSO HAVE LEVY GOALS FOR WEATHERIZATION AND FOR HOMELESSNESS, PREVENTION AND

HOUSING STABILITY SERVICES. YOU HEARD MORE ABOUT THAT YESTERDAY FROM OUR COLLEAGUES IN HSD. NOW, JUST TO SHARE A FEW HIGHLIGHTS FROM LAST YEAR. IN 2025, 3 MILLION WAS AWARDED THROUGH OUR HOMEOWNERSHIP

PROGRAM FOR HABITAT'S RIVERBEND COMUNIDAD IN SOUTH PARK, WHICH WILL PROVIDE 22 HOMES WITH TWO BEDROOMS OR MORE. I HAD A CHANCE TO VISIT THE CONSTRUCTION SITE A COUPLE WEEKS AGO WITH HABITAT'S

LEADERSHIP, AND IT WAS INSPIRING TO SEE THESE NEW HOMES UNDER CONSTRUCTION AND TOUR THE NEIGHBORHOOD, SEE MULTIPLE OTHER HOMEOWNERSHIP INVESTMENTS IN THE COMMUNITY NEXT. THERE ARE THREE LEVY SUBSIDY

AWARDS MADE IN 2025, INCLUDING AN AWARD TO THE FIRST 2023 HOUSING LEVY, SUPPORTIVE HOUSING PROJECT DESCS BIRCH GROVE THAT OPENED EARLIER THIS YEAR IN LAKE CITY IN ADDITION, WE ALSO PROVIDED

PRELIMINARY COMMITMENTS OF LEVY SUBSIDY TO SEVERAL NEW AFFORDABLE HOUSING PROJECTS WITH PORTIONS OF THEIR PROJECT RESERVED FOR PEOPLE EARNING THE LOWEST INCOMES BELOW 30% OF AMI, INCLUDING THE

EXCITING MOUNT BAKER REDEVELOPMENT PROJECT IN 2025, LEVY CAPITAL FUNDS WERE INVESTED IN FOUR PROJECTS, INCLUDING TWO NEW EXCITING DEVELOPMENTS THE LAKE CITY COMMUNITY CENTER AND BELLWETHERS SUNBREAK

TOWER NEAR THE UNIVERSITY OF WASHINGTON. WE FUNDED ONE PRESERVATION PROJECT DESS MORRISON HOTEL JUST DOWN THE HILL, AND ONE DEBT RESTRUCTURING ACQUISITION GMDS WILLOW CROSSING IN HOLLY PARK THIS DEBT

RESTRUCTURING WAS A NEW INVESTMENT CATEGORY IN THE 25 NOFA, AND IT HELPS BUILDINGS AVOID FORECLOSURE, AIMING TO RESTORE LONG TERM POSITIVE PROPERTY, CASH FLOW, WHICH PAYS DOWN THE DEBT ON THESE

BUILDINGS, ALLOWING THE RENTS TO BE ADJUSTED TO MORE AFFORDABLE LEVELS TO SERVE LOWER INCOME HOUSEHOLDS WHILE ALSO ADDRESSING OPERATING COSTS. WHICH ALSO PROVIDES INVESTMENT TO SUPPORT A STABLE,

AFFORDABLE HOUSING SECTOR AND WORKFORCE. FOR MANY DECADES, THE OFFICE OF HOUSING PROVIDED A MINIMAL BUT CONSISTENT OPERATING SUBSIDY FROM THE SEATTLE HOUSING LEVY. IN RECENT YEARS, AND WITH THE 2023

HOUSING LEVY, WHICH SIGNIFICANTLY INCREASED INVESTMENTS IN OPERATIONS INCLUDING OMS FOR SUPPORTIVE HOUSING, WORKFORCE STABILIZATION TO INCREASE STAFF WAGES AND WORKER RETENTION IN SUPPORTIVE HOUSING

AND RESIDENT SERVICES FOR AFFORDABLE HOUSING. TENANTS IN NEED OF SUPPORT O H ALSO RESPONDED TO SECTOR CHALLENGES BY PROVIDING URGENT OPERATING SUPPORTS IN THE FORM OF FLEXIBLE GRANTS TO OUR HOUSING

PARTNERS TO FILL THE MOST CRITICAL OPERATING GAPS. FINALLY, AS O. H HAS DONE FOR MANY YEARS, WE WILL CONTINUE TO PRIORITIZE COMMUNITY DRIVEN PROJECTS AND IDENTIFY PATHWAYS FOR NEW ORGANIZATIONS TO

SECURE PARTNERSHIPS WHERE NEEDED AND MOVE PROJECTS FORWARD FROM THE IDEA TO REALITY. OUR TEAM HAS PROVIDED DEEP INVESTMENT CONSULTATION AND TECHNICAL ASSISTANCE TO NUMEROUS COMMUNITY BASED

ORGANIZATIONS TO SUPPORT INNOVATIVE HOUSING AND COMMUNITY PROJECTS SUCH AS EL CENTRO'S, ROBERTO MAESTAS PLAZA AND CHIEF SEATTLE CLUBS. ALL. ALL THIS COMMITMENT TO EQUITY IN OA INVESTMENTS AND POLICY

WILL REMAIN CONSISTENT. IT'S CRITICAL THAT INVESTMENTS ARE TARGETED TOWARD THE MOST READY AND FEASIBLE PROJECTS, ESPECIALLY GIVEN CHALLENGING LEVERAGE AND INVESTOR DYNAMICS AND O. H WILL HOLD EQUITY

AT THE CENTER OF OUR DECISION MAKING PROCESS. I WANT TO, BECKY. -- THANK YOU THE OFFICE OF HOUSING MAINTAINS STRONG HOUSING INVESTMENTS IN THE 2728 BIENNIUM. HOWEVER, CHANGES IN THE 2026 YEAR END

SUPPLEMENTAL WILL IMPACT THE BUDGET. AS WE WILL DISCUSS ON SUBSEQUENT SLIDES AS SHOWN IN THE CHART, OA DOES NOT RECEIVE ANY GENERAL FUND. THE TWO LARGEST FUND SOURCES FOR THE OFFICE OF HOUSING ARE THE

HOUSING LEVY AND THE JUMPSTART PAYROLL EXPENSE TAX. THE HOUSING LEVY IS VOTER APPROVED AND REMAINS A CONSISTENT, RELIABLE FOUNDATION FOR AFFORDABLE HOUSING IN SEATTLE, PROVIDING OVER $138 MILLION IN

EACH YEAR OF THE BIENNIUM GIVEN CURRENT REVENUE FORECASTS, MAYOR WILSON IS PROPOSING 140 MILLION FOR 2027 AND 139 MILLION FOR 2028 OF JUMPSTART PET REVENUE TO SUPPORT OFFICE OF HOUSING PROGRAMS. THIS

SUSTAINS STEADY, AFFORDABLE HOUSING INVESTMENTS FOR THE BIENNIUM. THIS COMMITMENT TO AFFORDABLE HOUSING REPRESENTS OVER 30% OF TOTAL ANNUAL JUMPSTART PET REVENUE WHEREAS HOUSING LEVY FUNDING IS GUIDED

BY THE HOUSING LEVY GOALS. JUMPSTART PET FUNDING IS FLEXIBLE AND HAS BEEN USED TO RESPOND QUICKLY TO EMERGENT ISSUES IN THE AFFORDABLE HOUSING SECTOR. FOR EXAMPLE, IT WAS USED TO LAUNCH THE PSH

WORKFORCE STABILIZATION EFFORT AND TO PROVIDE URGENT OPERATING SUPPORT TO PROVIDERS WHEN NEEDED. IT HAS ALSO BEEN USED TO SUPPLEMENT LEVY FUNDING TO SUPPORT AFFORDABLE HOUSING PRODUCTION AND

PRESERVATION. TO ENSURE PROJECTS ARE COMPLETED AMIDST INCREASES IN CONSTRUCTION MATERIALS, INTEREST AND INSURANCE PREMIUMS JUMPSTART PET FUNDING HAS ALSO BEEN USED TO SECURE LONG TERM SERVICE AND

OPERATING CONTRACTS, AND TO CREATE A MITIGATION FUND FOR POTENTIAL CONTINUUM OF CARE CUTS THE MHA PORTION REPRESENTS FEES THAT OA RECEIVES FROM PROJECTS THAT SELECT PAYMENT INSTEAD OF PERFORMANCE TO

COMPLY WITH MHA. FOR MHA, OA AND CBO HAVE MADE THE DECISION TO HOLD THESE REVENUE EXPECTATIONS STEADY WHILE KNOWING THERE ARE SIGNIFICANT VARIABLES CURRENTLY AT WORK WITH MHA, THE AMOUNT AWARDED EACH

YEAR IS BASED ON ACTUAL FUNDS RECEIVED, NOT THE AMOUNT BUDGETED. SO IF THIS ACTUALS NUMBER IS HIGHER OR LOWER THAN WHAT IS BUDGETED IN 2027, OUR 27 NOFA WILL REFLECT THAT ACTUAL AMOUNT. OTHER FUNDS

HERE REPRESENTS FEDERAL, STATE, AND LOCAL GRANTS, AS WELL AS PROGRAM INCOME, INTEREST INCOME, AND MISCELLANEOUS REVENUES. ALSO, AS SHOWN, THERE ARE NO POSITION CHANGES IN THE PROPOSED BUDGET. WE

REMAIN STEADY AT 69 FTE THE NEXT SLIDE HERE SHOWS HOW THE 2027 TO 28 PROPOSED BUDGET WILL BE SPENT BY THE PRIMARY PROGRAMS OF THE OFFICE OF HOUSING ACROSS ALL FUNDING SOURCES. MULTIFAMILY CAPITAL

PROPOSED SPENDING IN 2027 IS 235 MILLION. THIS IS FOR THE DEVELOPMENT AND PRESERVATION OF MULTIFAMILY RENTAL HOUSING AND THE LONG TERM STEWARDSHIP AND MONITORING OF HOUSING IN OHA'S PORTFOLIO. THIS

INCLUDES NEW CAPITAL PRODUCTION, REHABILITATION, DEBT RESTRUCTURING AND ACQUISITION, DEBT RESTRUCTURING WAS A NEW CATEGORY IN THE 2025 ANNUAL NOFA. SPECIFICALLY FOR PROPERTIES EXPERIENCING SIGNIFICANT

PERFORMANCE CHALLENGES. THIS FUNDING HELPED NINE BUILDINGS AVOID FORECLOSURE AND RESTORED LONG TERM POSITIVE PROPERTY CASH FLOW, WHICH PAID DOWN THE DEBT ON THOSE BUILDINGS, WHICH ALLOWED THE RENTS TO

BE ADJUSTED DOWN TO MORE AFFORDABLE LEVELS THAT WOULD SERVE LOWER INCOME HOUSEHOLDS. O ALSO UNDERWROTE TO RIGHTSIZE OPERATING COSTS TO REFLECT THE CURRENT COST, ENVIRONMENT AND REPLENISH BUILDING

RESERVES. THE AGENCY SUPPORTS. PROPOSED SPENDING IS 61.4 MILLION. THIS REPRESENTS SERVICES AND OPERATING SUPPORT FOR O FUNDED AFFORDABLE HOUSING PROPERTIES AND FOR THE AGENCIES THAT OWN AND OPERATE

THE BUILDINGS. THIS INCLUDES OPERATING AND MAINTENANCE SUBSIDIES, RESIDENT SERVICES AND WORKFORCE STABILIZATION. HOMEOWNERSHIP CAPITAL PROPOSED SPENDING IS 13.6 MILLION. THIS REPRESENTS DEVELOPMENT

SUBSIDIES AND LOANS TO CREATE PERMANENTLY AFFORDABLE HOMES FOR LOW INCOME HOMEOWNERS WEATHERIZATION AND HOME REPAIR CAPITAL. PROPOSED SPENDING IS 8.8 MILLION. THE WEATHERIZATION PROGRAM FOCUSES ON

ENERGY CONSERVATION, INDOOR AIR QUALITY AND REDUCING UTILITY COSTS FOR RENTERS AND HOMEOWNERS WITH LOW INCOMES. THE HOME REPAIR PROGRAM ASSISTS HOMEOWNERS AT OR BELOW 80% AMI WITH CRITICAL HEALTH AND

SAFETY REPAIRS TO PRESERVE THEIR HOMES. THESE PROGRAMS OPERATE THROUGH STATE GRANTS, FEDERAL GRANTS, SEATTLE CITY LIGHT SUPPORT, AND THE JUMPSTART PAYROLL EXPENSE TAX. THE PROPOSED BUDGET FOR

ADMINISTRATION IS 19.4 MILLION. THIS INCLUDES ALL COSTS RELATED TO PROGRAMMATIC STAFFING, LEADERSHIP, PLANNING AND POLICY CONTRACTING PROGRAM DEVELOPMENT, FINANCIAL MANAGEMENT, COMMUNICATIONS,

INFORMATION TECHNOLOGY, CITY CENTRAL COSTS, ADMINISTRATIVE SUPPORT AND OPERATING EXPENSES. THE LAST LINE HERE IS RENTAL ASSISTANCE THROUGH HSD. O GIVES FUNDING TO OUR PARTNERS AT HSD TO ADMINISTER

RENTAL ASSISTANCE FOR PEOPLE EXPERIENCING OR AT RISK OF EXPERIENCING HOMELESSNESS. THE 2027 PROPOSED BUDGET FOR THIS IS 9.4 MILLION. THIS IS FUNDED BY THE 2023 HOUSING LEVY AND BY INTEREST EARNINGS ON

OSE FUND BALANCE. THERE WERE NO SIGNIFICANT POLICY CHANGES REFLECTED IN THE PROPOSED BUDGET FROM 2026 TO 20 27. 28 TECHNICAL ADJUSTMENTS INCLUDE THE REMOVAL OF ONE TIME 2026 ITEMS, UPDATING INTEREST,

EARNINGS PROJECTIONS THAT FUND HSD RENTAL ASSISTANCE, WORK AND ALIGNMENT WITH VARIOUS GRANTS AND CENTRAL COST ADJUSTMENTS THE NEXT SLIDE, THE 2026 YEAR END SUPPLEMENTAL BUDGET ORDINANCE MAKES A ONE

TIME REDUCTION OF $65 MILLION OF O FUND BALANCE IN THE JUMPSTART PAYROLL EXPENSE TAX FUND. THIS PRESERVES THE AMOUNT OF JUMPSTART FUNDS IN O 27 AND 28 PROPOSED BUDGET AND FUTURE BUDGETS TO SUPPORT

THIS REALLOCATION, O WILL PURSUE MULTIPLE STRATEGIES FOR MANAGING. O MULTIFAMILY RENTAL FUNDS DEDICATED TO NEW CAPITAL PROJECTS, INCLUDING FORWARD COMMITMENTS OF FUTURE YEAR JUMPSTART PAYROLL EXPENSE

TAX. O IS IDENTIFYING ALL POSSIBLE ACTIONS TO MANAGE THE $65 MILLION REDUCTION OUR OFFICE, IN PARTNERSHIP WITH THE MAYOR, IS PRIORITIZING STEADY AND ONGOING INVESTMENTS IN ANNUAL HOUSING OPERATIONS,

PERMANENT SUPPORTIVE HOUSING, HOME OWNERSHIP, WEATHERIZATION, HOME REPAIR AND STAFFING. OUR HOUSING LEVY AWARD COMMITMENTS REMAIN UNCHANGED AND NO CURRENT PROJECTS ARE BEING AFFECTED. THE CITY WILL

CONTINUE TO FULFILL ITS COMMITMENTS TO AWARDED PROJECTS USING A DIFFERENT SOURCE OR YEAR OF FUNDING WHERE NECESSARY. OPERATING CONTRACTS AND CAPITAL PROJECTS UNDERWAY WILL ALSO NOT BE NEGATIVELY

IMPACTED BY THESE CHANGES. WE REMAIN COMMITTED TO ENSURING EXISTING PROJECTS ARE PRESERVED. OUR PRIMARY GOAL IS TO BE A STEADY AND RELIABLE ANCHOR IN THE AFFORDABLE HOUSING ECOSYSTEM TO MEET EXISTING

OBLIGATIONS AND TO FUND NEW PROJECTS TO MEET SEATTLE'S HOUSING NEEDS. THANK YOU. -- THAT CONCLUDES OUR PRESENTATION. -- THANK YOU. DIRECTOR. THANK YOU VERY MUCH. DIRECTOR NISHI, ANYTHING TO ADD?

DIRECTOR WHITSON? NOTHING. NO. WONDERFUL. COUNCILMEMBER FOSTER IS CHAIR OF THE COMMITTEE OVERSEEING THE DEPARTMENT. YOU ARE RECOGNIZED. -- THANK YOU SO MUCH. CHAIR STRAUSS. GOOD MORNING AND THANK YOU

SO MUCH. DIRECTOR PANUCCI, GOOD TO SEE YOU AGAIN, DIRECTOR LARSON, SO HAPPY TO HAVE YOU HERE. I WILL JUST START OFF, I DON'T WANT TO DO A TON OF REMARKS, BUT I WILL JUST SAY VERY BRIEFLY, MY

APPRECIATION FOR THE LEADERSHIP COMING FROM YOUR OFFICE IN TERMS OF THE WAY THAT YOU HAVE BEEN RESPONDING TO THE ONGOING NEEDS, PARTICULARLY WHEN IT COMES TO INCREASED COSTS FOR OPERATING AND THE

THOUGHTFULNESS AND THE DEDICATION THAT I THINK O HAS HAD TO BE RESPONSIVE TO WHAT'S HAPPENING IN THE SECTOR. SO I FIRST JUST WANT TO START OFF WITH A NOTE OF APPRECIATION FOR THAT WORK. I THINK YOU

WENT OVER THE TECHNICAL DETAILS OF IT, BUT I DO THINK IT JUST DESERVES UPLIFTING, AS ONE OF MY COLLEAGUES WOULD WOULD SAY. AND, AND WHAT I WANT TO ASK YOU TO DO FOR MY FIRST QUESTION HERE IS TO JUST

SPEAK A LITTLE BIT MORE BROADLY. THIS IS SOMETHING WE'VE DISCUSSED IN COMMITTEE IN TERMS OF THE WHAT'S HAPPENING IN THE SECTOR, NOT JUST HERE IN SEATTLE, BUT ACROSS THE COUNTRY. WHEN IT COMES TO SOME

OF THE CHALLENGES THAT PROVIDERS ARE FACING AROUND OPERATING COSTS. TO PUT A SLIGHTLY FINER POINT ON IT, I KNOW ONE OF THE THINGS WE'VE TALKED ABOUT IS HOW WE'RE NOT UNIQUE IN THESE CHALLENGES, BUT

MAYBE WE ARE UNIQUE IN OUR OUR RESPONSE TO THEM IN TERMS OF ACTUALLY BEING ABLE TO HAVE A LITTLE BIT MORE SUCCESS THAN SOME OTHER REGIONS -- THANK YOU. CHAIR FOSTER. WE WERE JUST ON A CALL YESTERDAY

WITH OUR COLLEAGUES FROM THE ENTERPRISE HIGH COST HOUSING FORUM, WHICH BRINGS TOGETHER HOUSING LEADERS FROM MANY CITIES THAT ARE FACING SOME OF THESE SAME CHALLENGES THAT WE ARE FACING. AND ONE OF THE

MAJOR CONCERNS THAT WAS BROUGHT TO OUR ATTENTION A COUPLE OF YEARS AGO WAS THE COLLAPSE OF THE SKID ROW HOUSING TRUST IN LOS ANGELES. THAT WAS A MAJOR TURNING POINT IN THE AFFORDABLE HOUSING SECTOR.

THAT CHANGED THE WAY MANY OF US WERE THINKING ABOUT OUR PORTFOLIOS, OUR INVESTMENTS, THE WAY WE WERE MANAGING OUR ASSETS AND MONITORING OUR HOUSING. WE'VE MADE A NUMBER OF CHANGES SINCE THEN, AND

WE'VE MADE INVESTMENTS TO TO BRING INTO OUR PORTFOLIO TO RESPOND TO SOME OF THE UNIQUE CIRCUMSTANCES THAT OUR PARTICULAR MARKET IS FACING DUE TO THE UNIQUE SUPPLY THAT HAS COME ONLINE THIS CONVERGENCE

OF AFFORDABILITY AND MARKET AVERAGE RENTS AT THAT 60% AMI LEVEL, PARTICULARLY FOR SMALLER UNITS, AS WELL AS INCREASING OPERATING COSTS THAT EVERYONE IS FACING. INCREASING INSURANCE, INCREASING

PERSONNEL, HEALTH CARE BENEFITS IS A BIG COST DRIVER THAT A LOT OF OUR ORGANIZATIONS ARE FACING. IT'S REALLY, REALLY SIGNIFICANT. SO WE'RE JUST SEEING A LOT OF THESE COSTS INCREASE. AND BECAUSE OF THE

UNIQUE SITUATION THAT WE ARE FACING HERE, WHERE WE'VE REALLY FOCUSED ON UNIT PRODUCTION, WHICH IS A VERY LOFTY GOAL, AND IT'S A STRONG AREA OF FOCUS. IT MAKES A LOT OF SENSE. WE HAVE A SIGNIFICANT GAP

IN IN WHAT WE NEED FOR AFFORDABLE HOUSING IN OUR CITY, AND WE'VE REALLY FOCUSED ON BUILDING MORE APARTMENTS OVER TIME. THE AREA MEDIAN INCOME, RENT LIMITS THAT WE WERE ESTABLISHING FOR MANY OF THOSE

APARTMENTS GREW OUT OF STEP, AND THAT REQUIRED US TO RECONSIDER OUR INVESTMENTS AND HOW WE COULD COME IN AND SUPPORT ORGANIZATIONS THAT WERE FACING A SITUATION WHERE EITHER THEY ARE BEARING A BURDEN

IN ORDER TO SUPPORT TENANTS BELOW THAT CANNOT MEET THE RENTS THAT THEY'RE EXPECTING TO CHARGE, OR THE THE RENTERS ARE BEARING THE BURDEN BECAUSE THEY CANNOT BEAR THOSE RENTS THAT WE ARE CHARGING IN

SOME OF OUR AFFORDABLE HOUSING PROJECTS, PROBABLY A COMBINATION OF BOTH OF THOSE THINGS IS HAPPENING IN MOST PLACES. IN ORDER TO BRING SUPPORT, WE HAVE TRIED SEVERAL INVESTMENT TOOLS. ONE WAS A MAJOR

INVESTMENT OF URGENT OPERATING SUPPORT. SO ABOUT $40 MILLION OF URGENT OPERATING STABILIZATION WAS ADDED TO OUR PORTFOLIO OVER THE LAST TWO YEARS. THIS INCLUDED A PORTION SET ASIDE FOR PORTFOLIO

PRESERVATION PLANNING. AND THAT EFFORT IS REALLY NOW JUST KICKING OFF. WE'VE SELECTED SOME PROVIDERS TO ENGAGE IN THAT EFFORT. WE'VE SELECTED CONSULTANTS TO PAIR THEM WITH. THEY WILL BEGIN A YEAR LONG

PROCESS OF REALLY DIVING DEEP INTO THEIR PORTFOLIOS, THEIR SPECIFIC NEEDS, AND LOOKING AT HOW THEY CAN RECOMMEND AND INFORM SOME OF OUR STRATEGIES GOING FORWARD. WE HAVE ALSO TESTED THIS NEW CAPITAL

STRATEGY DEBT RESTRUCTURING THAT HAS REALLY COME IN TO SUPPORT SOME OF THESE PROJECTS THAT I MENTIONED EARLIER THAT WE'VE FUNDED MORE RECENTLY, OFTEN HAVE A HIGHER PROPORTION OF 60% AMI STUDIOS AND

HAVE THIS DIFFERENTIAL AND THIS PROBLEM WITH THE RENT EXPECTATIONS AND THE TENANTS WHO ARE LIVING THERE. SO THE DEBT RESTRUCTURING ALLOWS US TO BUY DOWN THOSE RENTS AND PAY OFF PRIVATE DEBT TO PROVIDE

SOME MORE CUSHION FOR THOSE OPERATORS. AND IT HELPS IN A BROADER PORTFOLIO FOR A PROVIDER, PARTICULARLY, WE INVESTED IN SOME BELLWETHER PROJECTS. FOR EXAMPLE, THEY'RE ONE OF OUR LARGEST PROVIDERS IN

THE CITY. AND WHEN BELLWETHER HAS SEVERAL BUILDINGS THAT ARE NEGATIVE CASH FLOW THAT DRAGS DOWN THEIR ENTIRE ORGANIZATION. SO WHEN WE COULD BRING IN THESE DEBT RESTRUCTURING SUPPORTS FOR SOME OF

BELLWETHERS CAPITAL PROJECTS THAT WERE REALLY STRUGGLING, IT LIFTS UP THE REST OF THEIR PORTFOLIO SO THEY CAN FOCUS ON OTHER THINGS. THEY STILL HAVE SOME STRUGGLING PROPERTIES, BUT THESE INVESTMENTS

HAVE BEEN REALLY, REALLY HELPFUL FOR THE KEY PROPERTIES THAT WE'VE BEEN ABLE TO INVEST IN. AND THERE WERE OTHERS THAT WERE MADE. -- THANK YOU SO MUCH. THAT WAS REALLY HELPFUL. I ACTUALLY WANT TO STAY

HERE FOR JUST A SECOND, BECAUSE I KNOW THIS IS SOMETHING WE'VE TALKED ABOUT A GOOD AMOUNT IN COMMITTEE. AND I THINK SOMETIMES WHEN WE I'LL SAY WHEN THE PUBLIC HEARS THE WORDS DEBT RESTRUCTURING, YOU

MIGHT GET SORT OF A GLASSY EYED LOOK, OR MAYBE SOMEBODY REALLY TAPS IN, YOU KNOW, I DON'T KNOW. BUT I THINK WHAT'S REALLY IMPORTANT HERE IS THE DISTINCTION THAT YOU JUST MADE, ESPECIALLY GIVEN HOW YOU

STARTED OFF YOUR PRESENTATION, WHICH I ALWAYS APPRECIATE YOU GROUNDING US AND LIKE, WHAT IS AFFORDABILITY WHEN WE TALK ABOUT AMI? SO WE'VE SEEN THIS SIGNIFICANT INCREASE IN AMI IN OUR REGION AS WE'VE

WELCOMED NEW NEIGHBORS, OR WE'VE HAD PEOPLE WITH HIGHER INCOMES COME IN AND WE SEE THIS AMI GO UP, UP, UP, AND AT THE SAME TIME, WE'VE GOT PROJECTS THAT ARE IN DEVELOPMENT. SO MAYBE SOMETHING COMES

ONLINE AND WE'RE ASSUMING THERE'S GOING TO BE ONE BEDROOM UNITS THAT ARE AT 60% AMI. AND I THINK WHAT I WANT TO HIGHLIGHT IS THERE'S TWO THINGS THAT ARE SORT OF HAPPENING HERE. ONE WHERE IN SOME

CASES, THAT 60% AMI UNIT IS COMPARABLE TO A MARKET RATE RENT. AND SO MY FIRST QUESTION, AND THIS IS GOING TO BE A LITTLE BIT OF A LONGER STATEMENT. SO MY FIRST QUESTION IS IF YOU CAN JUST SORT OF

TEASE THAT OUT FOR US A LITTLE BIT, BECAUSE IT'S ALSO MY UNDERSTANDING THAT'S NOT ACROSS THE BOARD THAT HAPPENS IN STUDIOS AND ONE BEDROOMS IN SOME AREAS OF THE CITY. SO I'LL ASK YOU TO SPELL THAT OUT

A LITTLE BIT MORE. AND THEN THE SECOND PART, IN TERMS OF THE DEBT RESTRUCTURING, AND AGAIN, THE WORK THAT I THINK YOU ALL HAVE DONE, THAT'S REALLY IMPORTANT IS THAT IN SOME CASES, YOU'VE ACTUALLY BEEN

ABLE TO BUY DOWN THOSE RENTS TO GO FROM 60% TO 30%, WHICH MAKES WHICH SORT OF SHIFTS THE CALCULATION. SO IF YOU CAN JUST SPEAK TO THOSE IN A LITTLE BIT MORE DETAIL, AGAIN, I KNOW WE'VE TALKED ABOUT

THIS IN COMMITTEE, BUT FOR MY COLLEAGUES WHO AREN'T ON THE HOUSING COMMITTEE, I WANT TO JUST MAKE SURE THAT WE BRING DEBT RESTRUCTURING TO LIFE A LITTLE BIT MORE, BECAUSE I THINK YOU ALL HAVE TAKEN

REALLY SIGNIFICANT STEPS IN THIS AREA -- THANK YOU. SO THAT IS RIGHT. AS AREA MEDIAN INCOME HAS INCREASED IN THE CITY, WE HAVE SEEN MORE AND MORE OVERLAP BETWEEN VERY SMALL APARTMENTS THAT ARE IN THE

MARKET, NOT REGULATED AND ARE 60% REGULATED. STUDIOS IN PARTICULAR, IN MANY NEIGHBORHOODS THROUGHOUT THE CITY. NOT ALL NEIGHBORHOODS. WE PARTICULARLY SEE THIS IN THE SOUTH END, WHERE A 60% STUDIO RENT

IS ACTUALLY ABOVE MARKET. IT'S NOT EVEN AT MARKET. IT IS ABOVE MARKET. WE HAVE A COUPLE OF NEIGHBORHOODS LIKE THIS THROUGHOUT THE CITY, WHERE OUR 60% STUDIO RENT IS ABOVE MARKET FOR STUDIOS. THIS HAS

BEEN A REAL BIG CHANGE FOR EVERYBODY WORKING IN THE HOUSING MARKET OVER THE LAST FIVE YEARS. IN SEATTLE, YOU OFTEN WOULD ALWAYS SAY 80% OF AMI IS AFFORDABLE HOUSING. THAT'S REALLY CHANGED

SIGNIFICANTLY IN ORDER TO ACHIEVE BELOW MARKET RENTS IN SEATTLE. WE ARE STARTING TO LOOK NOW MORE AT BETWEEN 30 AND 50 IS REALLY THE SWEET SPOT FOR AFFORDABLE HOUSING. AND THEN OF COURSE, OUR

SUPPORTIVE HOUSING AND HOUSING FOR FOLKS EXITING HOMELESSNESS IS ALWAYS BELOW 30% AMI, BUT FREQUENTLY THOSE FOLKS ARE REALLY LIVING AT AROUND 10% OF THEIR INCOME IS ABOUT 10% OF AM AYE. SO THAT

REQUIRES SIGNIFICANT SUBSIDY TO MAKE THOSE BUILDINGS OPERATE. I'M REALLY LOOKING FORWARD TO OUR CONVERSATION COMING UP SOON AS WE EXPLORE ALL THE APPLICATIONS THAT HAVE COME IN FOR THE RENTAL HOUSING

NOFA THIS FALL, OUR TEAM IS WORKING REALLY HARD TO GET ALL THE DATA PREPARED. I WAS JUST PEEKING IN THE SPREADSHEET THIS MORNING, AND IT'LL BE REALLY GOOD FOR US TO BE LOOKING AT. WE HAVE A GEOGRAPHIC

AREAS THAT WE ESTABLISH. WE'RE LOOKING AT ALL THE COSTAR DATA THAT'S COMING IN FROM THE MARKET TO UNDERSTAND RENTS AND VACANCY BY UNIT TYPES, BY NEIGHBORHOOD, SO THAT WHEN WE ARE MAKING INVESTMENT

DECISIONS THIS YEAR, WE ARE GOING TO FEEL ASSURED THAT WE ARE INVESTING IN TRULY AFFORDABLE HOUSING. SO THAT'S VERY, VERY IMPORTANT TO US. NOW ON TO DEBT RESTRUCTURING. SO LAST YEAR WE INVESTED IN

NINE PROJECTS WITH THIS DEBT RESTRUCTURING TYPOLOGY. I BELIEVE IT WAS $55 MILLION OVERALL. COMPARE THAT TO THE 40 MILLION THAT WE RELEASED IN URGENT OPERATING SUPPORT, WHICH WAS MORE OF AN

ORGANIZATION WIDE GRANT OFTEN CAME IN TO SUPPORT MAINTENANCE INSURANCE COSTS. SOME OF THESE BROADER ORGANIZATIONAL COSTS THAT THEY HAVE TO PAY TO CONTINUE TO MAINTAIN THEIR HOUSING DEBT. RESTRUCTURING

GOES IN TO SUPPORT AT A VERY SPECIFIC PROJECT LEVEL. IT'S MUCH MORE LIKE MANY OF OUR OTHER CAPITAL INVESTMENTS THAT WE MAKE AT THE OFFICE OF HOUSING AS WE UNDERWRITE THE PROJECT AND CHANGE THE

STRUCTURE SO THAT WE CAN CHANGE THE RENT LEVELS PERMANENTLY. AND THEN THE GOAL IS REALLY TO PULL THOSE OUT OF NEGATIVE CASH FLOW STANCE, IMPROVE THEIR OPERATING LONG TERM SO THAT THEY CAN SUPPORT

RESIDENTS FOR GENERATIONS AHEAD -- THANK YOU SO MUCH. THANK YOU SO MUCH FOR THAT. I THINK THAT'S REALLY HELPFUL. AND I THINK IT SPEAKS TO THE ROLE THAT OA IS PLAYING IN THE INCREASING NEED TO MAKE

SURE THAT WE'RE PRESERVING OUR AFFORDABLE HOUSING STOCK HERE IN SEATTLE. AND I APPRECIATE THE PIVOTS THAT YOU ALL HAVE MADE IN ORDER TO DO SO. ONE MORE THING ON THIS THAT I WANT TO JUST HAVE YOU SPEAK

TO A LITTLE BIT, AND THEN I'LL MOVE TO ANOTHER AREA IS HOW YOU'VE. AND I THINK YOU STARTED TO TOUCH THIS ALREADY, HOW YOU'VE ALREADY ADJUSTED THE WHAT'S COMING OUT IN THE NOFAS TO TAKE THIS INTO

ACCOUNT. SO EARLIER THIS YEAR, I THINK THERE WAS SOME REQUIREMENTS AROUND A CERTAIN NUMBER OF THE UNITS NEEDED TO HAVE TWO BEDROOMS SO THAT WE'RE SORT OF TRYING TO PIVOT AND MOVE OUR INVESTMENTS TO

REFLECT WHERE THAT GREATEST NEED IS. -- YES. SO LAST YEAR WE DID ESTABLISH NEW THRESHOLD CRITERIA THEY HAVE HELD IN PLACE FOR THIS YEAR. THAT REQUIRES ALL PROJECTS TO SUBMIT AT LEAST 20% OF UNITS FOR

NEW PRODUCTION. MUST BE TWO BEDROOMS OR MORE, 20% OF ALL UNITS MUST BE AT 30% AMI OR BELOW. SO WE'RE REALLY DRIVING TOWARD THIS LOWER INCOME UNITS AND THE LARGER FAMILY SIZE HOMES THAT WE DESPERATELY

NEED IN THE CITY. WE'VE SEEN A LOT OF DATA THAT SHOWS HOW WE ARE FALLING SHORT ON BOTH OF THOSE FRONTS. WE ARE HOLDING VERY STRONG TO THAT THIS YEAR AS WELL, AND MAY GO FURTHER AS WE ARE GOING THROUGH

APPLICATION REVIEW AND INVESTMENT DECISIONS OVER THE COURSE OF THE NEXT COUPLE OF MONTHS. IT'S A HIGH PRIORITY FOR ME AS WE'VE BEEN REPORTING, RESPONDING TO A NUMBER OF THE STATEMENTS OF LEGISLATIVE

INTENT THAT HAVE COME THROUGH. WE UPDATED THE SEATTLE HOUSING INVESTMENT PLAN, WHICH IS SOMETHING THAT COUNCILMEMBER KETTLE IS VERY INTERESTED IN. AND IT'S REALLY INTERESTING TO SEE THE DATA IN THAT

SEATTLE HOUSING INVESTMENT PLAN SHOWS OUR HOUSING NEEDS BY INCOME LEVEL AND WHAT WE PROJECTED WE COULD ACHIEVE WITH DIFFERENT TYPES OF HOUSING INVESTMENTS IN THE CITY. AND WE REALLY ARE EXPECTING TO

EXCEED OUR GOAL FOR THE 50 TO 80% OF AMI HOUSING TYPOLOGY, WITH A LOT OF OTHER TRADITIONAL INVESTMENTS LIKE MFT, SEATTLE HOUSING AUTHORITY, SOCIAL HOUSING DEVELOPERS, BRINGING ON SOME OF THOSE, THOSE

UNITS AS WELL. THE GREAT NEED EXISTS BELOW 50% OF AREA MEDIAN INCOME. THIS CHART AND THIS, THIS GAP THAT WE'RE FACING IN OUR CITY WILL BE FRONT AND CENTER FOR OUR TEAM AND OUR EVALUATORS AS WE ARE

CONSIDERING HOW TO INVEST THE $110 MILLION THAT WE HAVE THIS YEAR FOR OUR RENTAL HOUSING. NOFA. -- THANK YOU SO MUCH FOR THAT. OKAY, SO I WANT TO SHIFT US JUST A LITTLE BIT TO TALK MORE ABOUT OUR

PIPELINE. AND YOU, YOU SPOKE TO THIS IN YOUR OPENING REMARKS. AND I THINK THERE'S A LOT OF WAYS TO THINK ABOUT $110 MILLION NOFA OR $347 MILLION FOR THE OW TOTAL BUDGET. BUT ONE THING THAT I WANT TO

REALLY PULL OUT FROM YOUR PRESENTATION, AND FROM WHAT I'VE HEARD YOU SAY, AND MANY OF OUR PROVIDERS SAY, IS THE CHALLENGES IN OUR PIPELINE BECAUSE OTHER BECAUSE WHAT'S HAPPENING WITH OTHER FUND

SOURCES. SO CAN YOU DO TWO THINGS? CAN YOU JUST SORT OF SPEAK TO THE INTERPLAY OF O DOLLARS WITH OTHER FUND SOURCES IN TERMS OF HELPING PROVIDERS ACHIEVE THEIR CAPITAL STACKS? I WANT TO JUST MAKE SURE

WE'RE HIGHLIGHTING THAT BECAUSE WHILE WE HAVE, YOU KNOW, WE'RE WHILE WE'RE MAKING SIGNIFICANT INVESTMENTS, WE CERTAINLY AREN'T THE ONLY INVESTOR THAT PROVIDERS RELY ON. AND THERE'S A REALLY CLOSE

RELATIONSHIP THERE THAT I'D LOVE TO ASK YOU TO HIGHLIGHT A LITTLE BIT MORE. AND IN PARTICULAR, HOW WE'RE SEEING THE IMPACT OF OTHER FUND SOURCES ON OUR CAPITAL PIPELINE. -- GREAT. THANK YOU. YES. OVER

THE LAST COUPLE OF MONTHS, AS I'VE BEEN GOING AROUND AND MEETING WITH ALL OF THE LEADERS, MANY OF THE LEADERS IN OUR COMMUNITY, OF OUR HOUSING ORGANIZATIONS, I'M HEARING A LOT ABOUT THEIR PIPELINES.

MANY OF THEM DO HAVE PROJECTS THAT THEY HAVE PURCHASED SITES. THEY ARE VERY INTERESTED IN GETTING STARTED TO DEVELOP. WE HAVE PERMANENT SUPPORTIVE HOUSING OPERATORS THAT HAVE SITES, AND THEY'RE

INTERESTED IN STARTING TO GET READY TO GO. THERE'S A LOT OF PROJECTS UNDERWAY AS WELL, BUT IN ORDER FOR SEATTLE TO MOVE PROJECTS FORWARD, WE RELY ON OTHERS. ALL OF OUR CAPITAL STACKS FOR NEW

DEVELOPMENT ARE VERY COMPLICATED. THE MOST SIGNIFICANT LEVERAGE PARTNER COMES FROM THE LOW INCOME HOUSING TAX CREDITS AND EQUITY INVESTORS. OVER THE LAST SEVERAL YEARS, WE'VE SEEN TAX CREDIT PRICING

DROP. IT'S CONTINUING TO DECREASE. AND WITH THIS, INVESTOR REQUIREMENTS ARE INCREASING. AND CONDITIONS ARE CHANGING QUITE A LOT MONTH BY MONTH. I'M HEARING NEW ANECDOTES AND STORIES FROM OUR TEAMS

EVERY DAY ABOUT WHAT THEY'RE FACING ON DEALS. AND WE'RE REALLY WATCHING THIS CLOSELY AND STAYING VERY ENGAGED IN CONVERSATIONS ON OUR PROJECTS. BUT AS THIS TAX CREDIT PRICING DROPS, THAT GENERALLY

MEANS LESS OF THAT RESOURCE GOING INTO THE CAPITAL STACK AND A NEED FOR SOMEONE ELSE TO COME IN. SO WE ARE STILL RECEIVING SUPPLEMENTAL REQUESTS FOR PROJECTS THAT WE HAVE ALREADY INVESTED IN THAT IS

HAPPENING NOT TO THE SAME EXTENT THAT IT DID ABOUT TWO YEARS AGO, WHEN INTEREST RATES REALLY SPIKED. BUT THERE'S STILL ARE NEEDS COMING IN ON OUR CURRENT PIPELINE OF PROJECTS. AND SO FAR, WE HAVE BEEN

ABLE TO NEGOTIATE THOSE ADDITIONAL COMMITMENTS DOWN AS FAR AS POSSIBLE, BRINGING IN OTHER FUNDERS WHEREVER POSSIBLE. BUT ALSO WE'VE BEEN ABLE TO RESPOND BECAUSE WE HAVE FUND SOURCES AVAILABLE TO DO

THAT, AND IT HELPS US TO MAKE SURE THAT THOSE PROJECTS COMPLETE AND OPEN AND BRING RESIDENTS INSIDE, WHICH IS THE MOST IMPORTANT THING. WE'RE ALSO HEARING AND SEEING IN THE PROJECTIONS THAT THE KING

COUNTY CAPITAL LEVERAGE WILL BE DECREASING IN FUTURE YEARS. SO THAT FUND SOURCE WILL BE GOING DOWN HASN'T BEEN A HUGE PERCENTAGE OF OUR CAPITAL STACK, BUT IT CONTRIBUTES A SIGNIFICANT ENOUGH STEADY,

SMALL COMMITMENT THAT WE ARE EXPECTING TO RELY ON LESS IN FUTURE YEARS. AND THEN THE STATE IS ALSO FACING BUDGET DIFFICULTIES. SO ALL OF THOSE TAKEN TOGETHER, IT'S JUST A VERY DYNAMIC ENVIRONMENT

RIGHT NOW WITH ALL THE DIFFERENT LEVERAGE POINTS AND INVESTOR DEMANDS SORT OF CHANGING. BUT SEATTLE HAS REMAINED A STEADY PARTNER FOR OUR PIPELINE AND FOR ALL THESE PROJECTS MOVING FORWARD, AND WE

WILL CONTINUE TO DO THAT TO THE EXTENT WE'RE ABLE. -- THANK YOU FOR THAT. I REALLY APPRECIATE THAT, AND I THINK IT UNDERSCORES THE IMPORTANCE OF WHY, YOU KNOW, LOOKING AT THE BUDGET AND AS PROPOSED,

IS SO CRITICAL FOR US TO BE ABLE TO MAINTAIN OUR OUR CONSISTENT INVESTMENT, THE $140 MILLION IN JUMPSTART, BECAUSE WE HAVE TO HAVE THAT CONSISTENCY FOR THESE PROJECTS BECAUSE THEY'RE FACING SUCH

INCREDIBLE HEADWINDS FROM EVERY FUND SOURCE THAT'S AVAILABLE TO THEM. ONE MORE QUESTION ON COST HERE. SO, YOU KNOW, YOU SPOKE TO THE HOUSING LEVY AND THE PROGRESS THAT WE'VE MADE, AND I JUST THINK

IT'S INCREDIBLE PROGRESS TOWARDS OUR HOUSING LEVY GOALS. ONE THING THAT WE ALSO HAVE TALKED ABOUT IN COMMITTEE IS THE RELATIONSHIP THAT'S GOING TO BE NECESSARY BETWEEN THE HOUSING LEVY AND JUMPSTART.

CAN YOU SPEAK TO THAT JUST A LITTLE BIT -- YES. WHEN WE INITIALLY MODELED THE 2023 SEATTLE HOUSING LEVY, WE WERE STRIVING TO HAVE LEVY INVESTMENTS SEPARATE AND APART FROM JUMPSTART PET INVESTMENTS ON

THE CAPITAL SIDE, WE'VE SHIFTED A LOT OF JUMPSTART AND PAYROLL EXPENSE TAX EVENTS, INVESTMENTS TO OUR OPERATING. AND SO THOSE SUPPORTS ARE INCREDIBLY NECESSARY FOR OUR SUPPORTIVE HOUSING

INFRASTRUCTURE, WHICH THE HOUSING LEVY BUILDS. BUT WE INITIALLY HAD INTENDED FOR LEVY AND JUMPSTART PET TO REMAIN SEPARATE AS THE COST ENVIRONMENT HAS CHANGED, IT HAS BEEN NECESSARY TO ASSUME SOME

AMOUNT OF JUMPSTART PAYROLL EXPENSE TAX TO BRING OUR HOUSING LEVY PROJECTS FORWARD AND TO ACHIEVE OUR HOUSING LEVY GOALS. AS PART OF THE SEATTLE HOUSING INVESTMENT PLAN UPDATE, OUR TEAM REFRESHED THE

SEATTLE HOUSING LEVY UNDERLYING MODEL WITH UPDATED COST ASSUMPTIONS, THE PRIMARY BEING INTEREST RATES, LIGHT TECH PRICING, TAX CREDIT PRICING, COST, INFLATION FACTORS FOR CONSTRUCTION. THOSE ARE THE

BIGGEST FACTORS AT PLAY THAT REALLY CHANGE THE DYNAMICS OF WHAT WE EXPECT TO PRODUCE WITH THE RESOURCES WE HAVE. AND WITH THAT, IT BECAME CLEAR THAT GIVEN OUR CURRENT MODEL, WHICH AGAIN, A SPREADSHEET

IS ONE MODEL, IT'S ONE SCENARIO. IT'S NOT PREDICTIVE OF THE FUTURE PERFECTLY. IT IS ONE WAY FOR US TO LOOK AT HOW OUR RESOURCES WILL BE SPENT BY BUILDING BY UNIT TYPE, BY INCOME. AND WE BELIEVE IN

THIS METHODOLOGY. IT'S STRONG. IT'S NOT A PERFECT PREDICTOR. BUT WHEN WE UPDATED THAT WITH THESE CURRENT COST CONDITIONS, WHICH WE THINK ARE HOLDING RELATIVELY STABLE AS OF THIS YEAR TO IT DID REQUIRE

OTHER CITY RESOURCES TO COME IN TO SUPPORT THOSE PRODUCTION GOALS. SO WE ARE HOLDING STEADY AT OUR ASSUMPTION RIGHT NOW THAT WE NEED ABOUT $46 MILLION OF JUMPSTART PET TO SUPPORT THE HOUSING LEVY

CAPITAL GOALS THAT MAY SHIFT. CERTAINLY, WHEN YOU SHIFT INVESTMENTS TOWARD MORE PRESERVATION, FOR EXAMPLE. SO WE INVESTED IN DESKS, MORRISON HOTEL DOWN THE ROAD. THAT'S AN $18 MILLION PRESERVATION

AWARD, AND THAT SUPPORTS A VERY LARGE PROJECT. SO THE PER UNIT CONTRIBUTION ACTUALLY IS QUITE LOW ON A PRESERVATION PROJECT TYPICALLY. SO AS YOU INVEST, IF YOU INVEST IN MORE PRESERVATION PROJECTS,

YOUR PER UNIT COST IS GOING TO BE LOWER. AND WE ARE SEEING THE NEED FOR MORE PRESERVATION INVESTMENTS AS WE'RE MOVING FORWARD. SO THIS COULD SHIFT AND CHANGE AS WE GO. AND I THINK OUR TEAM WOULD BE

INTERESTED IN REVISITING THE METHODOLOGY, THE MODEL NEXT YEAR, IF CONDITIONS CHANGE SIGNIFICANTLY SO THAT WE CAN UNDERSTAND, AGAIN, HOW THESE FUND SOURCES ARE ARE INTERACTING AND NECESSARY FOR EACH

OTHER. -- THANK YOU SO MUCH FOR THAT. AND I'LL JUST SAY ON THIS, I THINK IT'S I'M HAPPY TO HEAR ABOUT THE MODELING. WE'VE TALKED ABOUT THAT BEFORE. THE REASON I WANTED TO UPLIFT, I KEEP SAYING UPLIFT

TODAY. IT'S JUST WHERE WE ARE. THE REASON I WANTED TO BRING THIS UP TODAY IS, YOU KNOW, BECAUSE I THINK THAT THERE WAS INCREDIBLE WORK DONE, OBVIOUSLY, ON THE HOUSING LEVY AND STRONG WORK DONE THERE

AND STRONG WORK IN TERMS OF PROGRESSING TOWARDS THOSE GOALS. BUT I REALLY WANTED TO HIGHLIGHT FOR FOR MEMBERS OF THE COMMITTEE TODAY, JUST THE TREMENDOUS COST PRESSURE AND THE WAY THAT THAT HAS

IMPACTED SOME OF OUR ASSUMPTIONS. AND I THINK THAT IT'S SMART THAT O HAS DONE SUCH A GOOD JOB OF MODELING AND GETTING AHEAD TO UNDERSTAND THE ROLE THAT JUMPSTART WILL NEED TO PLAY. BUT I WANT TO MAKE

SURE THAT WE HAVE THAT CLARITY, BECAUSE THAT'S KEY FOR US TO JUST HIT THOSE HOUSING LEVY PRODUCTION GOALS, WHICH ARE GOALS THAT WE, WE, WE WILL HIT. I KNOW, SO I REALLY APPRECIATE THAT CLARITY THIS

MORNING. THAT CONCLUDES MY QUESTIONS. I'LL JUST CLOSE WITH THIS AND SAY, I THINK THAT THE WORK THAT YOU AND YOUR TEAM HAVE BEEN DOING IS, IS TREMENDOUS IN THE AFFORDABLE HOUSING SPACE. AND AGAIN, JUST

EXPRESS MY APPRECIATION AND MY GRATITUDE TO YOU FOR YOUR LEADERSHIP BEFORE, YOU KNOW, AS A LONGTIME STAFFER AND NOW NEW DIRECTOR. SO THANK YOU SO MUCH. AND THANK YOU SO MUCH, CHAIR. -- THANK YOU,

COUNCILMEMBER FOSTER. COLLEAGUES, QUESTIONS, COMMENTS. I HAVE COUNCILMEMBER RIVERA. AND ONE THING I WILL REQUEST IS IF YOU DO WANT TO SPEAK, JUST GET YOUR HAND UP THERE. THEN WE ALL KNOW HOW MANY

PEOPLE ARE IN THE QUEUE. IT REALLY HELPS. OVER TO YOU, VICE CHAIR. -- THANK YOU, CHAIR, AND THANK YOU FOR BEING HERE. AND CONGRATULATIONS, KELLY. I DON'T THINK I'VE SEEN YOU SINCE YOUR CONFIRMATION. I

JUST WANT TO. KELLY, I WANT TO TALK ABOUT SORRY, I NEED TO MICK JAGGER. OKAY. CHAIR. YOU COULD TELL I WAS NEVER IN A BAND. CAN YOU TELL US A LITTLE BIT? SO WE'VE HAD THIS CONVERSATION BEFORE IN TERMS

OF THE UNITS THAT WE ALREADY HAVE CREATED AND THE MAINTENANCE OF IT, WE'VE HEARD FROM HOUSING PROVIDERS IN YEARS PAST, STARTING IN 2024, ABOUT THE DIFFICULTIES OF MAINTAINING THE UNITS THAT THEY

CURRENTLY HAVE FOR A MYRIAD OF REASONS. AND SO THEN WE DID THE STABILIZATION FUNDS AND THEN LIKE THE DEBT RESTRUCTURING WAS A WAY TO ADDRESS THAT. AND I, I APPRECIATE THAT YOU SUBMITTED YOUR SLI

REQUESTS. IT DIDN'T HAVE VERY MUCH INFORMATION CONTAINED IN IT IN TERMS OF BEING ABLE TO ASSESS HOW WELL THOSE STABILIZATION FUNDS ARE GOING, AND ALSO, CAN YOU TELL US A LITTLE BIT ABOUT THE DEBT

RESTRUCTURING? I KNOW THAT JUST WAS AS OF, I THINK, LAST YEAR. SO I'M JUST CURIOUS, DO WE HAVE INFORMATION TO SEE HOW WELL THE DEBT RESTRUCTURING IS GOING FOR THOSE PROVIDERS THAT HAVE UTILIZED THAT

TOOL TO BE ABLE TO ADDRESS WHAT THEY'RE SEEING IN THEIR BUILDINGS, AND THEN, OF COURSE, SEPARATE FROM THE STABILIZATION FUNDS, BECAUSE I WHAT I HAD HEARD FROM PROVIDERS THAT YOU DID MENTION IN YOUR IN

YOUR MEMO WAS JUST HAVING TO REPAIR THE UNITS THAT ARE EXISTING THEY'RE JUST GETTING DAMAGED BY RESIDENTS, I BELIEVE. SO CAN YOU TALK A LITTLE BIT ABOUT THAT? AND THEN I COULDN'T FIND I'M LOOKING AT

THE BUDGET BOOK. THERE WAS A ONE TIME REDUCTION. I DON'T KNOW WHAT THAT WAS TO. AND SO I WANT TO CONFIRM THAT THE STABILIZATION FUNDS WILL CONTINUE AS PART OF THAT. I THINK I, I UNDERSTAND IT'S PART

OF THE AGENCY SUPPORTS, BUT I JUST WANT TO CONFIRM, BECAUSE WE'RE CALLING IT DIFFERENT THINGS OR MAYBE THE AGENCY SUPPORTS HAS A NUMBER OF THINGS, INCLUDING STABILIZATION FUND. CAN YOU JUST CONFIRM

THAT PIECE AND THEN ADDRESS INFORMATION ABOUT THE DEBT RESTRUCTURING, HOW THAT'S GOING? AND THEN THE STABILIZATION FUNDS AND WHAT WHAT HAS THAT GONE? WHAT HAVE YOU SEEN IN TERMS OF ABILITY TO MAINTAIN

THOSE UNITS? WHERE ARE WE? -- GREAT. YES. SO TO START, DID YOU WANT TO ANSWER THAT? THE FIRST THE LAST. -- QUESTION I CAN START WITH THE LAST QUESTION. THERE IS NO REDUCTION TO THE AGENCY SUPPORTS

EFFORTS. THE THE THE URGENT OPERATING SUPPORT PROGRAM IS NOT IN 2027. IT WAS JUST WITH 2025 AND 2026. SO YOU WILL SEE THAT AS A BASELINE CHANGE. BUT THE CORE STANDARD OF THE AGENCY SUPPORTS HAD NO

REDUCTION. IN FACT, HAD AN INFLATIONARY INCREASE. -- SORRY. SO WE'RE NOT CONTINUING THE STABILIZATION SUPPORTS WE PUT IN IN 25 AND 26. -- THOSE WERE THOSE WERE SORT OF THE FIRST RELEASE WE CALLED A

ONE TIME RELEASE. AND THEN THE SECOND, WE NOW CALL IT A PERIODIC. WE DON'T CURRENTLY HAVE A PLAN FOR A THIRD RELEASE. IT MAY BE NECESSARY. WE'RE CERTAINLY RECEIVING ADVOCACY FROM PROVIDERS ABOUT

ONGOING NEEDS. IN MY MIND, THE NUMBER ONE OUTCOME THAT SHOWS THAT THOSE INVESTMENTS HAVE BEEN SUCCESSFUL IS THAT WE HAVE NOT SEEN A COLLAPSE OF A MAJOR ORGANIZATION IN OUR CITY. THAT'S WHAT YOU HOPE

TO AVOID. IN SPEAKING WITH OUR COLLEAGUES IN LOS ANGELES, THE PROCESS OF MOVING THROUGH RECEIVERSHIP WITH A MAJOR HOUSING PORTFOLIO IS EVEN MORE COSTLY THAN MAINTAINING IT. IT IS INCREDIBLY STRESSFUL

AND DIFFICULT FOR THE TENANTS, FOR THE STAFF. WE REALLY WANT TO AVOID THAT. SO WE HAVE AVOIDED THAT. THAT'S THE NUMBER ONE STORY BUT THE OTHER INVESTMENTS THAT HAVE GONE OUT. SO DEBT RESTRUCTURING,

THOSE PROJECTS ARE JUST FINISHING UP NOW WITH THEIR UNDERWRITING EFFORTS. SO WE MADE THOSE AWARDS AT THE END OF LAST YEAR, AND WE'VE BEEN WORKING TO GET THEM IN PLACE, WORKING OUT KEY DEAL POINTS

BECAUSE IT'S A NEW TYPOLOGY. THERE HAVE BEEN THERE'S BEEN SOME BACK AND FORTH WITH OUR PROVIDERS ABOUT HOW TO WRITE THOSE DEALS. WE ARE, I THINK, GETTING CLOSE TO BEING COMPLETELY DONE WITH ALL OF

THOSE LOAN DOCUMENTS AND THE REALLY GREAT THING ABOUT THOSE TYPES OF INVESTMENTS IS THAT THE FUNDS FLOW OUT VERY QUICKLY FROM THE CITY TO THE PROVIDERS, AS THEY'RE USED TO IMMEDIATELY WRITE DOWN

PRIVATE DEBT. SO THOSE FUNDS FLOW VERY FAST. IT'S WORKING OUT ALL THE DEALS, THE DEAL TERMS, IN TERMS OF WHAT INCOME LEVELS ARE CHANGING IN THE BUILDING AND WHY, FOR WHAT APARTMENTS, AND THEN OTHER

DETAILS AROUND CASH FLOW. WE EXPECT TO LEARN MORE ABOUT HOW THOSE PROJECTS ARE OPERATING NEXT YEAR. YOU'D REALLY WANT TO SEE A CHANGE IN CASH FLOW. THAT'S THE GOAL. SO THESE ARE ALL NEGATIVE CASH FLOW

BUILDINGS AS OF WHEN THEY APPLIED TO US. WE'D LIKE TO SEE THAT NEGATIVE CASH FLOW DECREASING AND POTENTIALLY MOVING OVER INTO POSITIVE CASH FLOW. THAT IS THE GOAL. SO WE CAN COME BACK TO YOU NEXT YEAR

WHEN WE HAVE A LITTLE BIT MORE TIME TO ASSESS HOW THOSE INVESTMENTS HAVE LANDED WITH STABILIZATION FUNDS. SO WE'VE WE'VE RELEASED, YOU KNOW, THE FIRST 40 MILLION PROJECTS ARE STILL SPENDING. THEY HAVE

UNTIL DECEMBER 31st, 2027 TO FULLY SPEND DOWN THOSE RESOURCES. MANY FOLKS, MANY PROVIDERS USED THOSE RESOURCES TO COVER INSURANCE PREMIUMS, WHICH HAVE JUST CONTINUED TO BE INCREDIBLY DIFFICULT FOR

ORGANIZATIONS TO MANAGE AS THEIR PREMIUMS ARE GOING UP. MANY ARE AVOIDING TAPPING IN BECAUSE DEDUCTIBLES ARE SO HIGH. SO THEY'RE COVERING A LOT OF MAINTENANCE COSTS WITHOUT TAPPING INTO INSURANCE,

TRYING TO AVOID INCREASING PREMIUMS EVEN FURTHER. SO THERE'S THIS DECISION THAT MANY OF THEM ARE FACING ON A DAILY BASIS. DO I TRY AND GET INSURANCE TO COVER THIS, OR AM I MANAGING IT ON MY OWN? HOW

DO I KIND OF MAINTAIN THIS DELICATE BALANCE ON OUR INSURANCE COSTS? MANY OF THOSE STABILIZATION FUNDS HAVE GONE TO SUPPORT THOSE EXPENSES. MAINTENANCE AND REPAIRS OF APARTMENTS. THAT IS CRITICAL. SOME

STAFFING WE LEARNED FROM AND RENT ASSISTANCE WE WE DID BRING THROUGH AFTER THE FIRST ROUND OF STABILIZATION INVESTMENTS, WE HAD A PROVIDER ROUNDTABLE, AND WE INVITED A FEW OF THE PROVIDERS TO OFFER

SOME OF THEIR LESSONS LEARNED AND BEST PRACTICES FROM THE INVESTMENTS THAT THEY MADE. ONE ORGANIZATION SHARED QUITE A LOT ABOUT HOW THEY WERE ABLE TO PARE THESE OPERATING STABILIZATION INVESTMENTS

WITH PRIVATE FUNDRAISING TO IMPROVE THE SAFETY AND SECURITY OF THEIR BUILDINGS. WITH NEW SECURITY INVESTMENTS, BOTH HARDWARE AS WELL AS STAFFING TO SERVE AS MORE OF A LEADERSHIP. THEY HAD, YOU KNOW,

ADDITIONAL SECURITY STAFFING, INCLUDING KIND OF ONE CENTRAL, RESPONSIBLE PERSON WHO WAS COORDINATING ACROSS THEIR PORTFOLIO TO RESPOND TO URGENT SITUATIONS AND KIND OF BE THAT POINT PERSON FOR STAFF.

AND THEN ANOTHER ORGANIZATION CAME AND PRESENTED ABOUT THEIR INNOVATIVE WORK TO BRING RENTAL ASSISTANCE INTO THEIR ORGANIZATION, WHILE ALSO STRONGLY ENCOURAGING AND INCENTIVIZING TENANTS TO CATCH UP

ON RENT THAT THEY WERE BEHIND. IT'S VERY DIFFICULT WHEN YOU BECOME SO FAR BEHIND IN RENT TO START WORKING ON THAT WHEN YOU HAVE A VERY, VERY LOW INCOME, YOU DON'T HAVE A LOT OF RESOURCES TO BRING TO

BEAR. IT CAN FEEL SUPER DEFEATING. THERE WAS ONE ORGANIZATION THAT BROUGHT THESE RESOURCES IN TO TEST SOME NEW MODELS. SOME OF THAT MEANT VERY ASSERTIVE OUTREACH AND PROACTIVE WORK WITH INDIVIDUAL

TENANTS WHO ARE IN DEEP ARREARS TO TEST WHETHER MOTIVATIONAL INTERVIEWING AND STRONG SUPPORT OF THOSE FOLKS COULD HELP TO ENCOURAGE DIFFERENT BEHAVIOR. AND IT DID WORK IN A NUMBER OF CIRCUMSTANCES. IT

DIDN'T WORK FOR EVERYONE, BUT THEY SAW SOME SUCCESS ENOUGH THAT IT WAS WORTH THEM REPLICATING AND CONTINUING TO TEST. SO THESE WERE SOME OF THE MODELS AND CONCEPTS THAT WERE BROUGHT FORWARD IN ORDER

TO ENCOURAGE OTHER PROVIDERS TO TRY SOME OF THESE INNOVATIVE APPROACHES. IF THEY COULD. SOMETIMES OTHER ORGANIZATIONS WON'T HAVE AS MUCH ACCESS TO PRIVATE FUNDRAISING AS OTHERS. THERE ARE

DIFFERENTIALS ACROSS THE COMMUNITY AND HOW SUCCESSFUL DIFFERENT ORGANIZATIONS ARE ON THAT FRONT. BUT IT WAS STILL INSPIRING. MANY ORGANIZATIONS WERE REALLY ENGAGED IN THE QUESTION AND ANSWER, AND

INTERESTED IN FINDING WAYS THAT THEY COULD BRING THESE LESSONS BACK TO THEIR ORGANIZATIONS TO TRY AND TEST AND IMPROVE THEIR OPERATIONS. -- THANK YOU, DIRECTOR LARSEN, DO YOU HAVE SOMETHING TO ADD?

DIRECTOR, PLEASE, PLEASE. -- SORRY, I'M DOING CONVERSATION HERE. -- SO IN SO MANY DAYS IN A ROW, YOU KNOW, MY, YOU KNOW, MY, YOU KNOW, MY SIGNALS WHEN I WANT TO SAY SOMETHING, I JUST WANT TO SORT OF

PULL BACK AT A, AT A HIGHER LEVEL BECAUSE YOU WERE ASKING ABOUT LIKE, IS THIS A REDUCTION IN OPERATIONAL SUPPORT AND THOSE SORTS OF THINGS? OVERALL, WHAT WE'RE TALKING ABOUT HERE IS NOT ANY CHANGES IN

OSE BUDGET GOING UP OR DOWN, BUT DIRECTOR LARSEN AND HER TEAM HAVING TO SOMETIMES MAKE CHOICES ABOUT WHERE WHETHER OR NOT WE'RE ALLOCATING MORE FUNDING TO NEW UNITS VERSUS SUPPORTING EXISTING UNITS.

AND THIS IS A DYNAMIC SITUATION THAT IS GOING TO CONTINUE TO HAVE TO BE MONITORED. AND I KNOW THAT THEY'RE TAKING A VERY THOUGHTFUL APPROACH OF HOW WE ARE LOOKING AT BOTH LIKE FUTURE AND FORWARD

COMMITMENTS FOR CAPITAL PROJECTS, AS WELL AS HELPING SUPPORT THOSE AGENCIES. AND THEN WE TO LOOK FORWARD TO SORT OF HEARING MORE ABOUT HOW THIS SORT OF INFLUX AND OPERATIONAL AGENCY SUPPORTS THAT

HAPPEN THIS YEAR ARE WORKING TO STABILIZE THOSE THOSE UNITS -- MAY I CHAIR? -- YES, PLEASE. -- THANK YOU. THANK YOU. DIRECTOR. I THIS COUNCIL, MANY OF US WERE HERE A COUPLE YEARS AGO WHEN WE WERE

SUPPORTING THE STABILIZATION FUNDS, AND ACTUALLY WE WERE ADVOCATING AND I KNOW I WAS ADVOCATING FOR ALLOWING THE PROVIDERS TO BE ABLE TO USE SOME OF THE, THE MONEY FOR SECURITY, BECAUSE WE KNEW THAT

WAS AN ISSUE. AND THERE IN THEIR BUILDINGS. AND WE WANTED TO MAKE SURE RESIDENTS AND THE STAFF THAT WERE WORKING IN THE BUILDING ARE SAFE. THAT IS REALLY IMPORTANT. SO I GUESS MY CONCERN IS NOT THE

CONTINUATION OF THOSE STABILIZATION FUNDS IN A WAY THAT, YOU KNOW, TO THE POINT, DIRECTOR, YOU JUST SAID ABOUT WE NEED TO MAINTAIN THE UNITS WE ALREADY HAVE SO WE DON'T LOSE THOSE. AND DIRECTOR

LARSEN, YOU EXPLAINED VERY WELL IN TERMS OF WE DON'T WANT TO LOSE THOSE BECAUSE THEN WHERE WILL WE BE IF WE JUST FOCUS ON CREATING NEW UNITS, BUT WE START TO LOSE THE ONES WE'VE ALREADY. IT'S GOING TO

COST MORE THAT WE'VE ALREADY CREATED. EXCUSE ME. IT WILL COST MORE IN THE LONG RUN. AND SO THIS IS WHY I'M REALLY FOCUSED ON THIS PIECE ON THE STABILIZATION FUNDING, SO THAT THE CURRENT PRIVATE

PROVIDERS ARE CONTINUING TO MAKE SURE THAT THOSE UNITS THAT WE HAVE STAY, YOU KNOW, USABLE AND, AND THAT WE'RE NOT IN THIS SPACE WHERE WE'RE LOSING UNITS. BUT I AM, AND I APPRECIATE YOU WENT INTO THE

WEEDS. YOU KNOW, ME, DIRECTOR LARSEN, AND WE CAN TAKE IT OFFLINE. BUT I REALLY WANT TO HEAR I APPRECIATE YOU DOING THE ROUNDTABLE, AND I WANT TO HEAR MORE ABOUT THE CREATIVE WAYS THAT THEY'RE

ADDRESSING, TRYING TO ALSO ADDRESS THE BEHAVIOR CHANGES WITHIN THE RESIDENTS IN THOSE UNITS, BECAUSE THIS HAS ALSO LED TO SOME ISSUES WITH THOSE UNITS. AND WE WANT TO MAKE SURE THAT WE'RE ADDRESSING

THAT AS WELL. SO I WOULD ACTUALLY LOVE TO HEAR MORE ABOUT THAT OFFLINE AND THAT WAS REALLY ALL THE QUESTIONS I HAD. JUST TO REITERATE, ON THE STABILIZATION FUNDING, HOW IMPORTANT THAT IS. AND I WANT

TO KNOW WHAT THE YOU HAVE THE CORE. I HEARD YOU SAY WE HAVE THE CORE SERVICES ARE STILL THERE, BUT WILL THAT MEET THE NEED? THAT IS THE QUESTION THAT I HAVE. SO YOU CAN. -- YES, WE HAVE THAT QUESTION

TOO. AND AS WE CONTINUE TO WORK WITH OUR PROVIDERS, REVIEW THE DATA AND EVIDENCE THAT WE HAVE, WE WILL INFORM OUR INVESTMENT DECISIONS INTO THE NEXT YEAR AROUND HOW WE BALANCE STABILIZATION, INVESTING

IN OUR PORTFOLIO PRESERVATION, DEBT RESTRUCTURING, AND THEN INVESTING IN, IN NEW PRODUCTION. SO WE HAVE SOME MONTHS TO GET THERE. BUT WE, WE DEFINITELY ARE HEARING AND SEEING THE NEED. -- THANK YOU.

AND THE LAST THING I'LL SAY IS I WANT TO HEAR ABOUT YOUR VACANCIES AND HOW MANY UNITS ARE OFFLINE BECAUSE THEY NEED TO BE REPAIRED AND THINGS OF THAT NATURE, BECAUSE THOSE, THOSE DATA POINTS HELP TO

INFORM ALSO POLICY AROUND THIS. SO REALLY APPRECIATE THAT. THANK YOU CHAIR. -- THANK YOU. COUNCILMEMBER RIVERA. COUNCILMEMBER LIN. FOLLOWED BY RINCK. SAKA AND KETTLE. -- THANK YOU CHAIR THANK YOU

CHAIR PRESENTERS THANK YOU COLLEAGUES. I'M GOING TO JUST START OFF WITH SOME COMMENTS AND THEN A COUPLE QUESTIONS. ONE, JUST THANK YOU FOR ALL THE HARD WORK THAT WENT INTO THIS BUDGET. AND ALL THE

HARD WORK THAT HAS BEEN DOING. YOU KNOW, I THINK WE HAVE BEEN LEADING THE NATION IN AFFORDABLE HOUSING PRODUCTION FOR QUITE, QUITE SOME TIME, WHICH IS AMAZING. AND THAT'S THROUGH OUR COMMITMENT AND

OUR INVESTMENT. IT DOESN'T HAPPEN WITHOUT DOLLARS TO INVEST. AND SO WE'VE MADE ENORMOUS GAINS IN THAT REGARD. AND, YOU KNOW, YOU'VE BEEN DESCRIBING SOME OF THE HEADWINDS THAT WE'RE FACING AND

CERTAINLY DON'T WANT TO SLOW DOWN. BUT I THINK WE HAVE TO. AND WE HAVE BEEN ON THE NEW PRODUCTION BECAUSE OF THOSE HEADWINDS AND BECAUSE OF THE NEED TO FOCUS ON THAT PRESERVATION. AND I THINK THAT'S

WELL WARRANTED. AS YOU MENTIONED, DUE TO THINGS THAT NOT JUST LOCALLY BUT ACROSS THE COUNTRY, THAT AFFORDABLE HOUSING PROVIDERS HAVE BEEN FACING, AND CERTAINLY AGREE THAT HAVING A MAJOR PROVIDER GO

THROUGH RECEIVERSHIP WOULD END UP COSTING MORE IN THE LONG RUN. SO I, I ALSO JUST THINK THAT IT'S IMPORTANT FOR US TO EVERYBODY LOVES A RIBBON CUTTING, BUT PRESERVATION IS CRITICAL. AND I THINK

QUALITY FOR ME IS PERHAPS MORE IMPORTANT THAN QUALITY. I THINK WE HAVE TO FOCUS ON ON THE PEOPLE. AT THE END OF THE DAY, YOU KNOW, WE TALK SO MUCH ABOUT UNITS. IT'S ABOUT PEOPLE. IT IS ABOUT THE

PEOPLE THAT LIVE THERE, THE FAMILIES. IT IS ABOUT THE WORKERS. IT SUPPORT THOSE FAMILIES. IT IS ABOUT OUR ORGANIZATIONS. AND, YOU KNOW, I THINK THE AND WE'VE TALKED ABOUT THIS A LOT, BUT, YOU KNOW,

THE THE FOCUS ON UNITS CAN BE SORT OF LEAD TO WEIRD CONSEQUENCES OR UNINTENDED CONSEQUENCES. AND I THINK, AGAIN, WE NEED TO FOCUS ON, ON THE PEOPLE OKAY, A COUPLE QUESTIONS. SO THE YEAR IN

SUPPLEMENTAL ORDINANCE TALKS ABOUT A ONE TIME REDUCTION OF 65 MILLION. IN FORWARD COMMITMENTS. AND I THINK FORWARD COMMITMENTS IS PROBABLY GOING TO BE CONFUSING FOR A LOT OF FOLKS WHO MAYBE DON'T DO

AFFORDABLE HOUSING FINANCE EVERY DAY. YOU KNOW, I THINK THERE'S A. IN TERMS OF FINANCING, YOU KNOW, I KNOW THAT WE MAKE AWARDS. IT CAN TAKE MANY, MANY YEARS. I KNOW THERE'S OFTEN TIMES A LARGE CASH

BALANCE BECAUSE OF THAT, BUT IT'S IMPORTANT FOR US TO, WHEN WE MAKE AN AWARD TO STAND BEHIND IT AND TO BE ABLE TO DO THAT. AND SO I KNOW THERE'S ALWAYS SORT OF SOME CASH SORT OF MANAGEMENT THAT

HAPPENS WITH, OH, I DO JUST WANT TO HIGHLIGHT THE IMPORTANCE OF THIS SORT OF CHANGE JUST FOR OUR COMMUNITY TO, TO BE AWARE THAT THERE IS A CHANGE HERE WITH THIS FORWARD COMMITMENT AND WHAT THAT MEANS.

AND, YOU KNOW, JUST A LITTLE BIT OF A CONCERN AND WHICH I'LL TALK TO IN A MOMENT, BUT COULD YOU JUST TALK A LITTLE BIT ABOUT WHAT IT MEANS TO BE DOING THIS FORWARD COMMITMENT SORT OF LOGISTICALLY, I

GUESS I SORT OF SEE THIS AS A LITTLE BIT OF BORROWING FROM FUTURE YEARS OF PAYROLL EXPENSE TAX, AND I'M NOT OPPOSED TO THAT. BUT I JUST WANT TO, YOU KNOW, KIND OF FULL, FULL TRANSPARENCY OF WHAT'S

HAPPENING HERE -- SO AS IS MANAGING THE $65 MILLION REALLOCATION, WE WILL BE PURSUING MULTIPLE STRATEGIES. FORWARD COMMITMENTS WILL BE ONE OF THOSE STRATEGIES. BUT THERE MAY BE OTHER STRATEGIES THAT

WE PURSUE AS WELL. WE ARE ALSO VERY CAUTIOUS AND NEEDING TO BE REALLY RESPONSIBLE IN THESE TIMES THAT WE'RE IN, AS YOU HEARD ME DESCRIBE, ALL THE CONDITIONS THAT ARE CHANGING AROUND US. WE KNOW FOR

SURE, AS PART OF THIS REALLOCATION, THAT THE NOFA THAT WE ARE IMMINENTLY RELEASING FOR DEBT RESTRUCTURING AND CAPITAL IMPROVEMENTS WILL BE FUNDED WITH 2027 JUMPSTART PAYROLL EXPENSE TAX. IT WAS

INITIALLY PLANNED FOR 2026. THAT ONE WILL BE MOVING, SO IT'S A FORM OF FORWARD COMMIT, BUT IT'S ALSO AWARDS WILL SORT OF BE IN ACTION NEXT YEAR. AND WE ANTICIPATE THAT IS A RELATIVELY LOW RISK USE OF

THAT INVESTMENT IN THAT TIME PERIOD. THOSE DOLLARS, AGAIN, DO MOVE VERY QUICKLY BECAUSE OF THE TYPOLOGY OF THAT INVESTMENT. WE FEEL CONFIDENT THAT THAT MAKES A LOT OF SENSE FOR 2027, FOR THE REMAINING

AMOUNT, WE HAVE SOME WORK TO DO. WE ARE TALKING INTERNALLY ABOUT DIFFERENT OPTIONS AND STRATEGIES. WE WILL REALLY GET TO WORK ONCE BUDGET PASSES. COUNCIL AND WE KNOW FOR SURE WHAT WE HAVE BEFORE US.

BUT THE SENIOR TEAM IS REALLY WELL AWARE AND WORKING HARD. AGAIN, THIS IS VERY ISOLATED TO RENTAL HOUSING CAPITAL. ALL OF OUR OTHER INVESTMENT TYPES AND OUR STAFF ARE PROTECTED IN THIS BUDGET. SO

WE'LL BE WORKING REALLY CLOSELY WITH OUR TEAM, OUR CITY BUDGET OFFICE COLLEAGUES AND THE MAYOR'S OFFICE TO MAKE THOSE DECISIONS IN THE RIGHT TIME THAT THEY SHOULD BE MADE. BECAUSE AGAIN, SO MUCH IS

CHANGING RIGHT NOW WITH LEVERAGE, TAX CREDIT, PRICING, INVESTOR DEMANDS, NEEDS IN THE AFFORDABLE HOUSING SECTOR AREA, MEDIAN INCOME SHIFTING THAT THERE'S THERE'S JUST A LOT THAT WE ARE WRESTLING WITH

ALL AT ONCE. AND IT'S IMPORTANT THAT WE ARE MAKING DECISIONS ABOUT THE WAY THAT OUR DOLLARS GO OUT THE DOOR INFORMED WITH THE MOST CURRENT CONDITIONS. SO WE WILL BE COMING BACK TO THAT BROADER

DISCUSSION DECISION ABOUT FUTURE WORK IN SEVERAL MONTHS -- AND I THINK I WANT TO JUST ADD HERE SORT OF BROADER BECAUSE I'M ANTICIPATING MORE MORE QUESTIONS ON THIS AREA. I THINK THIS IS A A STRATEGY

THAT THE MAYOR'S OFFICE AND THE BUDGET OFFICE KIND OF PUT FORWARD AND WORKING IN PARTNERSHIP WITH THE OFFICE OF HOUSING, AND THEY'RE BEING VERY THOUGHTFUL IN THINKING THROUGH HOW TO ACTUALLY IMPLEMENT

THIS CHANGE. WHAT WE SEE THIS AS AN AS AN OPPORTUNITY TO BOTH MAINTAIN THE ONGOING INVESTMENTS IN AFFORDABLE HOUSING. AND, FRANKLY, PRESERVE MANY OTHER INVESTMENTS ACROSS THE BUDGET IN KEY AREAS. SO

WE APPRECIATE HOW THE OFFICE OF HOUSING IS TAKING ON THIS APPROACH THIS YEAR. JUST IN THEIR JUMPSTART FUNDS WITH A REALLY THOUGHTFUL AND CAUTIOUS, CAUTIOUS MANNER AND WILL BE GOOD PARTNERS TOGETHER

AND SORT OF THINKING THROUGH HOW TO FULLY IMPLEMENT THIS. I ALSO WANT TO BE REALLY CLEAR THAT PROJECTS THAT HAVE ALREADY RECEIVED AWARDS WILL BE PAID FIRST. WE IN THE BUDGET OFFICE AND IN PARTNERSHIP

WITH THE OFFICE OF HOUSING, HAVE LOOKED AT SORT OF THE ACTUAL SPEND OF EXISTING, YOU KNOW, OF EXISTING PROJECTS AND THINK WE HAVE TAKEN A RELATIVELY CONSERVATIVE APPROACH. BUT I STILL, AS DIRECTOR

LARSON MENTIONED, WE WILL BE CAREFULLY SORT OF MONITORING THIS AND THINKING CAREFULLY ABOUT HOW WE ARE THINKING ABOUT FORWARD COMMITMENTS, HOW MUCH NEEDS TO BE CONSIDERED FOR AGENCY SUPPORTS AND THAT

TYPE OF THING. SO THIS WILL BE A REAL TIME MONITORING WITH. SO WE'LL BE MEETING REGULARLY AND WE MEET QUARTERLY ON BUDGETING TO ACTUALS AND THAT SORT OF THING. SO BE A CAUTIOUS APPROACH -- THANK YOU.

JUST A COUPLE MORE QUESTIONS AND I'M GOING TO BE A LITTLE BIT OF A DEBBIE DOWNER. HOPEFULLY I'M NOT SORT OF JINXING ANYTHING HERE, BUT CERTAINLY CONCERNED ABOUT WE'RE SEEING SOME WARNING SIGNS IN OUR

ECONOMY. RIGHT. AND, YOU KNOW, JUMP START IS STILL A RELATIVELY NEW, YOU KNOW, INCOME STREAM OR REVENUE STREAM FOR US. AND WE HAVE NOT, AGAIN, SORT OF I DON'T WANT TO JINX US HERE, BUT WE'VE NOT SORT

OF SEEN A MAJOR DOWNTURN LIKE WE DID, YOU KNOW, PREVIOUSLY. AND, YOU KNOW, THERE'S A LOT OF TALK ABOUT. EMPLOYMENT LEAVING THE CITY. AND IN SOME WAYS THAT'S HARDER THAN SOMETHING LIKE A STOCK MARKET

DOWNTURN. AND SO MUCH OF THAT PAYROLL EXPENSE TAX IS NOT JUST SORT OF NUMBER OF EMPLOYEES, BUT BASED ON THOSE STOCK MARKET, WHICH WHICH IS PART OF THAT INCOME THAT IS BASED UPON. SO JUST CURIOUS, I

MEAN, I'M JUST CONCERNED, I WANT TO MAKE SURE THAT WE ARE BEING THAT WE HAVE SOME SORT OF CONTINGENCY PLAN, ESPECIALLY AS IF WE START TO DO THINGS LIKE FORWARD COMMITMENTS AROUND THE PAYROLL TAX. AND,

YOU KNOW, JUST IF THERE ARE ANY SORT OF BACKUP PLANS, I JUST THINK ABOUT, YOU KNOW, TEN YEARS AGO, WE WE DID SOME BONDING FOR AFFORDABLE HOUSING. I JUST WANT TO MAKE SURE THAT, THAT WE ARE READY AND

WE ARE. YEAH, THINKING ABOUT SORT OF WORST CASE SCENARIOS. -- YEAH. THESE ARE THE THINGS THAT KEEP ME UP AT KEEP ME UP AT NIGHT. I THINK ONE OF ONE OF THE CHALLENGES THAT WE'RE ALL CONFRONTED WITH

RIGHT NOW IS MANY OF OUR REVENUE SOURCES THAT ARE SEEING ANY GROWTH ARE SOME OF OUR MOST VOLATILE, WHILE OUR MOST STABLE SOURCE OF REVENUE LIKE THAT SUPPORTS GENERAL GOVERNMENT INVESTMENTS, PROPERTY

TAX, FOR EXAMPLE, IS CAPPED AT THE STATE LEVEL AND DOESN'T SORT OF GROW WITH WITH OUR COSTS. SO THAT IS, I WOULD SAY, A RISK ACROSS THE THE BUDGET. I THINK WE ARE DOING A COUPLE OF THINGS. ONE, I

WOULD SAY AGAIN, OFFICE OF HOUSING IS TAKING A VERY CAUTIOUS AND RISK AVERSE APPROACH TO HOW WE MANAGE THIS. SO I THINK THAT IS ONE THAT WILL BE VERY CAREFUL OF HOW WE ARE DEPLOYING THE VARIOUS

STRATEGIES TO MANAGE THIS. SECOND, WE ARE WORKING REALLY HARD TO FUND THE JUMPSTART RESERVE THAT WILL, BY THE END OF THE BIENNIUM, HAVE OVER $30 MILLION. AND I THINK BY 2030 WILL BE FULLY FUNDED AT

10% OF ANNUAL REVENUES, ASSUMING NO CHANGE IN REVENUE. IN ADDITION, THE BUDGET INCLUDES THE ANNUAL REQUIRED CONTRIBUTIONS TO OUR EMERGENCY FUNDS AND OUR REVENUE STABILIZATION FUNDS FOR THE GENERAL

FUND, AND DOESN'T DRAW ON ANY OF THESE RESERVES IN THIS BIENNIUM OR IN THE PROJECTED FUTURE YEARS THAT ARE PART OF THE FINANCIAL PLAN. SO THERE IS ALWAYS RISK BECAUSE ANY BUDGET IS BASED ON A

FORECAST. AND SO THERE ARE SOME RISKS THERE. BUT I THINK WE ARE BEING REASONABLY CAUTIOUS AND AGAIN, WILL CONTINUE TO MONITOR AND NOT SORT OF SPEND ALL THE MONEY IN JANUARY BEFORE WE SEE WHAT IS

HAPPENING IN THE MARKET. -- THANK YOU SO MUCH. FINAL QUESTION IS JUST RENTAL ASSISTANCE. I'M NOT SURE IF JUST IN GENERAL, YOU KNOW, WHERE RENTAL ASSISTANCE FALLS WITHIN OUR SORT OF LARGER STRATEGIES.

AND I KNOW THAT WE'RE NOT THE ONLY PLAYER. OBVIOUSLY, THERE'S, YOU KNOW, SECTION EIGHT, OTHER SORT OF FORMS OF RENTAL ASSISTANCE OUT THERE. BUT AGAIN, ALSO JUST WONDERING, YOU KNOW, WE'VE WE'VE SEEN A

LOT OF JOB LOSSES. AND I'M JUST WONDERING ABOUT WHETHER THERE MIGHT BE A NEED FOR GREATER RENTAL ASSISTANCE IN THE COMING YEARS. AND JUST, WE CAN HUDDLE OFFLINE. AND, YOU KNOW, OBVIOUSLY, IF THERE IS

SOME SORT OF LARGER DOWNTURN, THERE WILL BE A LOT OF REVISITING OF OUR ASSUMPTIONS AND A LOT OF WORK TO BE DONE IN PIVOTING. BUT JUST WANT TO PUT THAT OUT THERE THAT I COULD SEE A GREATER NEED FOR

RENTAL ASSISTANCE, AND ESPECIALLY WITH HOW LONG IT TAKES TO DEPLOY SOME OF OUR CAPITAL AND GET HOUSING ONLINE, THAT WE COULD POTENTIALLY HAVE, YOU KNOW, BETTER RESULTS WITH, WITH A SLIGHTLY LARGER

INVESTMENT IN RENTAL ASSISTANCE. THANK YOU. -- I THINK RENTAL ASSISTANCE IS INTERESTING AS WELL AS AN ONGOING OPERATING SUBSIDY, SHALLOW, DEEP THERE WE ARE MOVING MORE RENTAL ASSISTANCE DOLLARS OUT

THE DOOR THIS YEAR. HSD IS OUR ADMINISTRATOR, ALSO OF OUR LEVY RENTAL ASSISTANCE FUNDS. THERE IS A LOT OF NEED OUT THERE. WE'RE HEARING FROM PROVIDERS THAT THEY'RE REALLY LOOKING TO THESE FUNDS THAT

WILL BE RELEASED VERY SOON, SO THAT THAT WOULD BE A GOOD CONVERSATION TO COME BACK TO. -- THANK YOU. THANK YOU, CHAIR. -- COUNCILMEMBER LIN ANYTHING FURTHER? NO. ALL RIGHT. WE'VE GOT COUNCILMEMBER

RINCK, SAKA AND KETTLE. AND FOR THE RECORD, COUNCILMEMBER SAKA HAS BEEN HERE SINCE THE START, JUST REMOTE AND THEN IN PERSON. COUNCIL PRESIDENT HAS BEEN HERE SINCE THE BEGINNING OF THIS PRESENTATION.

COUNCILMEMBER KETTLE WAS HAS BEEN HERE FOR AT LEAST A HALF OF AN HOUR. SO WITH THAT COUNCILMEMBER RINCK FLOOR IS YOURS. -- THANK YOU, CHAIR STRAUSS, AND THANK YOU SO MUCH TO THE WHOLE TEAM AT THE

OFFICE OF HOUSING. DIRECTOR LARSON, THANK YOU FOR YOUR WORK, AND I WANT TO TAKE THIS OPPORTUNITY TO THANK YOU FOR YOUR PARTNERSHIP AROUND THE CONTINUUM OF CARE FUNDING FIASCO, NEVER ENDING JOURNEY

THAT WE'VE ALL BEEN ON AS THESE CRUCIAL FEDERAL FUNDS HAVE BEEN HELD IN LIMBO FOR SOME TIME. I WANT TO THANK THE OFFICE OF HOUSING FOR YOUR PARTNERSHIP AND PARTICIPATION AT THOSE KIND OF STRATEGIC

PLANNING TABLES TO FIGURE OUT HOW WE CHART A PATH HERE TO STABILIZE THAT HOUSING FOR 4500 HOUSEHOLDS IN OUR REGION. SO HUGE GRATITUDE TO YOU. AND THANK YOU ALSO FOR YOUR WORK ALONGSIDE MY OFFICE IN

SUPPORTING AND EXPLORING WAYS WE CAN SUPPORT MORE COMMUNITY LED AFFORDABLE HOUSING EFFORTS. I HAVE JUST A COUPLE OF QUESTIONS FOR TODAY. REALLY, JUST TO FOCUSING IN ON THE COMMUNITY SELF-DETERMINATION

FUND. LAST YEAR STATED THAT YOU ALL WERE DEDICATING 24 MILLION TOWARDS THE COMMUNITY SELF-DETERMINATION FUND. MY QUESTION IS, WAS ALL OF THAT MONEY USED FOR THAT PURPOSE? -- ARE YOU ASKING ABOUT 2026

OR 2025. -- 2025. -- 2025, 2025? YES. ALL COMMUNITY SELF-DETERMINATION FUNDS WERE DISTRIBUTED TO PROJECTS THAT ARE COMMUNITY BASED ORGANIZATIONS DEVELOPED AND ARE OPERATING. I'D HAVE TO GO AND LOOK AT

THE AWARD LIST BECAUSE I CANNOT RECALL. BUT IN 2026, IT WILL BE A LITTLE DIFFERENT. WE ARE MAINTAINING THIS PRIORITY FOR COMMUNITY BASED PROJECTS. IT IS A PRIORITY, LONG STANDING FOR THE OFFICE OF

HOUSING, TO INVEST IN COMMUNITY AND ALLOW AND ENABLE AND FACILITATE PARTNERSHIPS FOR NEW ORGANIZATIONS AND NEW ENTRANTS INTO THE SECTOR TO BUILD AFFORDABLE HOUSING PROJECTS IN THE WAY THAT THEY SEE

FIT FOR THEIR COMMUNITIES. IN THIS CURRENT TIME THAT WE'RE IN, IT'S VERY DIFFICULT FOR EVEN MAINSTREAM PROVIDERS TO SECURE INVESTMENT BECAUSE OF HOW CHALLENGING THE MARKET IS RIGHT NOW, AND HOW

DIFFICULT IT IS TO OPERATE HOUSING IN OUR CITY AND MANY OTHERS ACROSS THE COUNTRY. SO WE WILL BE MAINTAINING A PRIORITY FOR COMMUNITY BASED ORGANIZATIONS IN THESE PROJECTS AS WE ARE CONSIDERING OUR

INVESTMENTS, HOWEVER, WE WILL NOT BE ESTABLISHING A FLOOR OF INVESTMENT. WE'RE HOPING TO MAINTAIN FLEXIBILITY AS WE BRING OUR RESOURCES INTO PROJECTS SUCH THAT WE CAN PLACE DOLLARS INTO THE MOST READY

AND FEASIBLE PROJECTS IN THE TIME THAT WE HAVE RIGHT NOW, AS WELL AS RESPONDING TO SOME OF THESE EMERGENT NEEDS THAT ARE IN THE OPERATING SIDE OF THE SECTOR, AND JUST MAINTAINING FLEXIBILITY THERE.

BUT STEADFASTLY HOLDING TO THE COMMITMENT TO EQUITY AS MUCH AS POSSIBLE. -- THANK YOU FOR THAT ANSWER, DIRECTOR LARSON, YOU KIND OF GOT INTO ANSWERING THE NEXT PART OF MY QUESTION, WHICH WAS

UNDERSTANDING THAT FOR THIS PROPOSED BUDGET, THERE'S NO LINE ITEM SET FOR THE COMMUNITY SELF-DETERMINATION FUND. AND SO YOU SPOKE TO A LITTLE BIT ABOUT HOW THE INTENT AND THE WORK BEHIND USUALLY THE

COMMUNITY SELF-DETERMINATION FUND WILL CONTINUE FORWARD, BUT IT'S NOT A SPECIFIC SET LINE ITEM. I'M WONDERING IF YOU CAN JUST EXPAND OR FILL IN ANY ADDITIONAL DETAIL AS TO THE RATIONALE, MORE SO

BEHIND THAT DECISION. -- THE PRIMARY GOAL OF THE COMMUNITY SELF-DETERMINATION FUND WAS TO SUPPORT NEW ENTRANTS INTO THE SECTOR TO DEVELOP PROJECTS ON THEIR OWN WITHOUT A PARTNER. ALL BY THEMSELVES.

IT'S A VERY IMPORTANT OWNERSHIP POSITION TO BE IN, TO HOLD THAT RESPONSIBILITY AND TO CARRY THAT PROJECT ALONE. IT'S BOTH A HEAVY RESPONSIBILITY AND A PRIVILEGE. UNFORTUNATELY, IN THE TIMES THAT WE

ARE IN, BECAUSE OF INCREASINGLY STRICT INVESTOR REQUIREMENTS AND SCREENING, IT WOULD BE HIGHLY UNLIKELY FOR A PROJECT WITH A NEW COMMUNITY BASED ORGANIZATION TO ACHIEVE THE ENTIRE CAPITAL STACK

NECESSARY TO MOVE A PROJECT FORWARD. IF A NEW PROJECT WAS COMING FORWARD THAT PROPOSED A DIFFERENT TYPE OF CAPITAL STACK THAT DID NOT RELY ON PRIVATE DEBT EQUITY TAX CREDITS, THAT WOULD BE A DIFFERENT

TYPE OF CONCEPT. BUT UNDER OUR CURRENT TYPICAL CAPITAL STACK OF INVESTMENTS, IT WOULD BE VERY, VERY DIFFICULT FOR A NEW ORGANIZATION WITHOUT A PARTNER TO BRING FORWARD A PROJECT IN THIS TIME. WE ARE

ALWAYS TALKING WITH NEW ENTRANTS ABOUT FINDING WAYS TO SECURE A PARTNER THAT'S NOT ALWAYS THE MOST DESIRABLE OUTCOME FOR EVERY COMMUNITY BASED ORGANIZATION AND DEVELOPMENT PROJECT, AND UNFORTUNATELY,

THAT IS SORT OF THE TIME THAT WE'RE IN RIGHT NOW. NOT TO SAY THAT WE ARE CLOSING DOWN THE THE COMMUNITY SELF-DETERMINATION FUND. THAT PROGRAM WILL BE HELD WHOLE IN OUR HOUSING FUNDING POLICIES. WE

WILL HOPEFULLY COME BACK TO THAT IN A TIME OF GREATER RESOURCES. PERHAPS WHEN SOME OF THESE FEDERAL FUNDING THREATS HAVE PEELED AWAY AND WE CAN RELAX ON AT LEAST ONE FRONT OF THE MANY THAT WE'VE

DISCUSSED TODAY. BUT IN THIS TIME THAT WE'RE IN, WE FEEL IT'S REALLY IMPORTANT. AGAIN, JUST REALLY FOCUSING ON RESPONSIBLE INVESTMENT PRACTICES AND MAKING SURE THAT WE ARE SUPPORTING ORGANIZATIONS TO

BE SUCCESSFUL AND PROJECTS TO BE SUCCESSFUL LONG TERM. -- THANK YOU FOR UNPACKING THAT. DIRECTOR LARSON, AND I APPRECIATE JUST THE ACKNOWLEDGMENT OF THE CIRCUMSTANCES WE FIND OURSELVES IN. I'M HEARING

THAT THERE'S BEEN A CHANGE IN THE LENDING MARKET AND APPROACHES. I THINK WE, AS COUNCIL HAVE SHARED A PRIORITY. IF WE WANT TO BE SUPPORTING COMMUNITY AND BEING ABLE TO DETERMINE AND SUPPORT MORE

WEALTH BUILDING OPPORTUNITY AND BEING ABLE TO DEVELOP THOSE ASSETS. AND SO WHILE IT'S DISAPPOINTING IN MANY WAYS TO FIND THE CIRCUMSTANCES THAT WE ARE IN AND THE CHANGES, PARTICULARLY AGAIN, IN THE

LENDING MARKET, I'LL JUST STATE A PRIORITY IN THE FUTURE, BEING ABLE TO FIND MORE WAYS TO BETTER RESOURCE AND SUPPORT THESE OPPORTUNITIES FOR COMMUNITY LED DEVELOPMENT, BUT SHARED. THAT CONCLUDES MY

QUESTIONS FOR TODAY. I WANT TO THANK AGAIN THE OFFICE OF HOUSING FOR YOUR CONTINUED WORK IN DEVELOPING AFFORDABLE HOUSING IN OUR COMMUNITY. THANK YOU. -- THANK YOU, COUNCILMEMBER RINCK. ANYTHING ELSE

FROM THE COMMITTEE TABLE RIGHT NOW? NO. SEEING NONE. COUNCILMEMBER SAKA FOLLOWED BY COUNCILMEMBER KETTLE. -- THANK YOU, CHAIR, AND THANK YOU, DIRECTOR LARSON, YOUR TEAM FOR BEING HERE TODAY.

APPRECIATE THIS PRESENTATION AND CONGRATULATIONS AGAIN ON YOUR RECENT CONFIRMATION. EXCITED TO PARTNER WITH YOU AND HAVE YOU AT THE TABLE AS THE HEAD OF THE TABLE, SO TO SPEAK, ON THIS SIDE. AND

AGAIN, APPRECIATE ALL THE WORK THAT WENT INTO THIS ONE QUESTION. MAYBE TWO. WE'LL SEE. BUT I WANT TO TALK A LITTLE BIT ABOUT WEATHERIZATION AND HOME PROGRAMS WITHIN THE DEPARTMENT. SO WHICH LEADS ME

TO ONE OF MY HIGHEST PRIORITIES FOR YOUR DEPARTMENT IS TO UNLOCKING NEW HOMEOWNERSHIP OPPORTUNITIES FOR EVERYONE PRIORITIZING FOLKS WHO HAVE HISTORICALLY BEEN LEFT OUT OF THE PROCESS. WE'RE TALKING

ABOUT BLACK AND BROWN HOMEOWNERS, YOU KNOW, OTHER PEOPLE FROM SOCIOECONOMIC DISADVANTAGED COMMUNITIES WHO WANT TO HAVE THEIR SLICE OF THE AMERICAN DREAM, THE WHITE PICKET FENCE, IF YOU WILL, DOESN'T

NEED TO BE A WHITE PICKET FENCE. BUT MY POINT IS UNLOCKING NEW HOMEOWNERSHIP OPPORTUNITIES FOR ALL AND HAVING VIBRANT AND ROBUST PROGRAMING TO DO EXACTLY THAT. AND AGAIN, THAT'S ONE OF MY HIGHEST

PRIORITIES FOR YOUR DEPARTMENT. NOT EVERYONE WANTS TO, YOU KNOW, PARTICIPATE IN HOMEOWNERSHIP, WHICH IS TOTALLY FINE. BUT FOR THOSE THAT DO, WE NEED TO HAVE GREAT PROGRAMING OPTIONS BECAUSE THAT,

AGAIN, THAT'S, THAT'S THE AMERICAN DREAM AT THE END OF THE DAY. SO WHETHER SHIP AND HOMEOWNERSHIP PROGRAMS SHOW MEASURABLE DECREASES FROM 2026 FUNDING LEVELS AND SPECIFICALLY, IF YOU LOOK AT PAGE TWO,

40 OF THE BUDGET DOCS, THAT'S ONE ILLUSTRATIVE EXAMPLE. THERE ARE OTHERS IN THE IN THE BUDGET MATERIALS. BUT THAT'S THAT'S ONE SORT OF GOOD GRAPHICAL DEPICTION OF THAT PROPOSITION. HOW WILL THESE

REDUCTIONS AFFECT LOW INCOME HOMEOWNERS AND RENTERS IN THE NEAR TERM, PARTICULARLY THOSE RELYING ON CRITICAL REPAIRS, ENERGY EFFICIENCY UPGRADES, OR FIRST TIME HOME BUYER ASSISTANCE? AND THEN HOW IS

PRIORITIZING WHICH RESIDENTS SERVING INITIATIVES REMAIN FULLY FUNDED VERSUS SCALED BACK -- COMMITTEE TABLE? -- I CAN START WITH THE TECHNICAL SIDE OF THAT. FOR THE HOME OWNERSHIP DECREASE THAT YOU

SEE. WHAT YOU SEE IS THAT IN 2026, THERE WAS A ONE TIME COUNCIL AD, EXCUSE ME, OF $3.4 MILLION, AND THAT WAS DONE IN ORDER TO COVER A PROPOSED CUT FOR BOTH 25 AND 26, 1.7 MILLION IN EACH YEAR, SO THAT

COUNCIL AD IN THE 26 BUDGET WAS A ONE TIME RESTORATION. SO WHAT YOU SEE IS THE DIFFERENCE BETWEEN WHEN WE REMOVE THAT OUT OF THE BASELINE, GOING BACK TO THE BASELINE LEVELS THAT EXISTED BEFORE THAT

COUNCIL AD AND WEATHERIZATION, IT'S A LITTLE BIT OF A DIFFERENT STORY. WEATHERIZATION IS FULLY FUNDED BY IT HAS A SMALL AMOUNT, 1.7 MILLION OF JUMPSTART PAYROLL TAX. OTHER THAN THAT, IT IS FULLY

FUNDED BY EITHER SEATTLE CITY LIGHT OR BY FEDERAL, STATE, LOCAL GRANTS. THOSE GRANTS ARE ALL ON TIMING, ON TIMELINES THAT DON'T CORRESPOND WITH OUR FISCAL YEAR. WE'VE GOT SOME OCTOBER TO SEPTEMBER.

WE'VE GOT SOME JULY TO JUNE. SO YOU DON'T WHAT YOU SEE IN THE BUDGET, THOUGH THERE MAY BE A DIFFERENCE FROM YEAR TO YEAR, FROM CALENDAR YEAR TO CALENDAR YEAR, WE'RE NOT ANTICIPATING ANY REDUCTION IN

DELIVERY OF SERVICES FOR WEATHERIZATION WORK, AND WE'RE NOT ANTICIPATING ANY MEANINGFUL CHANGE IN THE GRANTS RECEIVED FOR WEATHERIZATION. -- AND THAT'S ON THE WEATHERIZATION SIDE. AND HOW ABOUT THE

HOMEOWNERSHIP PROGRAMS? -- YES. THE HOMEOWNERSHIP WAS THE FIRST PIECE OF THE COUNCIL RESTORATION OF THE THREE POINT. -- SO I HEAR YOU SAYING IT'S NOT TECHNICALLY A CUT BECAUSE IT WAS A ONE TIME AD.

OKAY. YEAH. -- I CAN ALSO. -- SHARE AND ADD A LITTLE BIT MORE HERE. COUNCILMEMBER SAKA HOMEOWNERSHIP IS A VERY HIGH VALUE IN OUR DEPARTMENT AND OUR COMMUNITY. AND WITH MANY OF OUR COUNCIL COLLEAGUES,

I KNOW WE ARE REALLY EXCITED. THIS YEAR WE MOVED FORWARD THE HARVEY PROJECT. SO THAT'S IN THE CENTRAL DISTRICT, A SITE THAT WAS IN OUR PORTFOLIO THAT WILL BE MOVING FORWARD AS A HOMEOWNERSHIP

INVESTMENT OVER THE NEXT SEVERAL YEARS. WE BROUGHT FORWARD THE MONTLAKE PROJECT ALSO THIS YEAR. THAT WAS AN INCREDIBLE PARTNERSHIP WITH OUR STATE COLLEAGUES AND THE CITY COUNCIL AND THE OFFICE OF

HOUSING MAYOR'S OFFICE TO MOVE FORWARD A PURCHASE AND SALE WHERE THE STATE APPROPRIATED CAPITAL FUNDS TO MOVE THROUGH THE DEPARTMENT OF COMMERCE IN ORDER FOR O TO PURCHASE THE SITE FROM THE WASHINGTON

DEPARTMENT OF TRANSIT, TRANSPORTATION. WE HAVE DONE EVERYTHING WE CAN TO LEVERAGE STATE DOLLARS IN HOMEOWNERSHIP PROJECTS. I'VE SEEN THREE GRANT AGREEMENTS COME ACROSS MY DESK IN THE LAST TWO WEEKS

FOR CHIP FUNDS FROM THE STATE. THOSE ARE INFRASTRUCTURE FUNDS THAT HELP TO LEVERAGE. WE LEVERAGE THOSE TO BRING OUR HOMEOWNERSHIP PROJECTS FORWARD. SO WE ARE TILTING, AT LEAST LAST YEAR, MORE OF OUR

CHIP INVESTMENTS THAT WE CAN APPLY FOR FROM THE CITY SIDE ARE GOING INTO HOMEOWNERSHIP PROJECTS THAN INTO RENTAL PROJECTS, SO THAT WE CAN REALLY BRING THOSE PROJECTS FORWARD. IN PARTNERSHIP WITH THE

OFFICE OF INTERGOVERNMENTAL RELATIONS, WE ARE ADVOCATING THIS YEAR AND LAST YEAR FOR CAPITAL EARMARKS, FOR HOMEOWNERSHIP PROJECTS. SPECIFICALLY, THIS YEAR, WE'LL BE FOCUSING ON MONTLAKE. LAST YEAR, WE

FOCUSED ON CLOVERDALE, SO PROJECTS ARE CONTINUING TO MOVE FORWARD AND SUPPORTED WITH OTHER RESOURCES WHEREVER POSSIBLE. WHEN I WAS I MENTIONED I WAS DOWN VISITING RIVERBEND COMMUNITY A COUPLE OF WEEKS

AGO WITH HABITAT'S LEADERSHIP TEAM, AND THEY TOLD ME THAT THEY HAVE THE LARGEST PIPELINE EVER CURRENTLY UNDERWAY, LARGELY DUE TO THE INVESTMENTS THAT THEY RECEIVE FROM THE SEATTLE OFFICE OF HOUSING.

WE ARE CONFIDENT IN THE PIPELINE THAT WE HAVE RIGHT NOW. PROVIDERS ARE VERY BUSY AND WE ARE SOON TO ANNOUNCE OUR FALL HOMEOWNERSHIP AWARDS. THEY WILL BE COMING FORWARD SHORTLY. WE HAVE A LOT OF UNITS

UNDERWAY, AND THERE'S A LOT OF GOOD PROJECTS COMING, COMING ONLINE IN THE NEAR FUTURE. -- AND JUST TO ADD TO THAT, THE CHIP THAT YOU WILL BE SEEING IN A GRANT ACCEPTANCE ORDINANCE, I BELIEVE, BEFORE

THE END OF THIS YEAR IS 4.5 MILLION FOR HOMEOWNERSHIP. -- AND DIRECTOR, DO YOU HAVE SOMETHING TO ADD? NOTHING. BACK TO YOU, COUNCILMEMBER SAKA. -- THANK YOU, CHAIR. THANK YOU FOR THE INITIAL CLARITY

THERE. MY SECOND QUESTION GOOD. COUNCILMEMBER SAKA IS ONLY ASKING TWO QUESTIONS. GREAT. MY SECOND QUESTION IS PERTAINS TO THE FEDERAL OPPORTUNITY ZONE 2.0 PROGRAM. AND I DON'T KNOW IF THIS IS BEST.

THIS QUESTION IS, IS, IS BEST FOR YOU OR OPCD. AND I SEE OPCD DIRECTOR IN THE BACK. SO MAYBE, MAYBE, YOU KNOW, THIS IS FAIR WARNING FOR SIMILAR QUESTION LINE OF QUESTIONING MIGHT COME UP, BUT SO THE

FEDERAL OPPORTUNITY ZONE 2.0 PROGRAM IS THE LATEST FEDERAL ITERATION OF COMPLEX INCENTIVE PROGRAM TO INCENTIVIZE DEVELOPMENT, GROWTH IN KEY AREAS THAT THE FEDERAL GOVERNMENT DEEMS APPROPRIATE. WELL,

FEDERAL AND STATE GOVERNMENT, BECAUSE THE MY UNDERSTANDING IS THE GOVERNOR'S OFFICE IN JULY OR SOMETHING SUBMITTED BECAUSE EVERYONE WANTS MANY JURISDICTIONS WANT THEIR SPECIFIC CENSUS TRACTS TO BE

LISTED. A FEDERAL OPPORTUNITY ZONES. THERE'S AN INTENSE AMOUNT OF LOBBYING GOING ON. AND THEN ALL CULMINATED IN A. BECAUSE THE GOVERNORS OF EACH STATE ARE EMPOWERED TO ACTUALLY SELECT A SPECIFIC

OPPORTUNITY ZONES WITHIN THEIR JURISDICTIONS AND. AND SEPARATELY, I WILL LOVE A LIST OF, OF, OF THOSE IN SEATTLE, BUT IRRESPECTIVE OF THE SPECIFIC ZONE SELECTED IN THE CITY OF SEATTLE, HOW DO YOU

ANTICIPATE THOSE DESIGNATED OPPORTUNITY ZONES TO IMPACT THE OVERALL. HOUSING LANDSCAPE IN THE CITY OF SEATTLE GOING FORWARD? -- THAT WAS AN EXCELLENT SUMMARY OF OPPORTUNITY ZONES THAT I WOULD NOT HAVE

BEEN ABLE TO PROVIDE MYSELF THREE YEARS AGO. SO WELL DONE. ON THE COMPLEXITY OF THE PROCESS THAT OUR TEAMS JUST WENT THROUGH TO SUBMIT PROPOSED NEW OPPORTUNITY ZONES TO THE GOVERNOR'S OFFICE, OUR

OFFICE OF HOUSING FOLKS, OPCD OPCD, WORKED REALLY CLOSELY WITH OTHER COLLEAGUES IN THE CITY TO GO THROUGH A REALLY INTENTIONAL PROCESS, EXAMINING A LOT OF DATA, TALKING TO PROVIDERS AND DEVELOPERS IN

THESE AREAS. YOU HAD TO LOOK AT YOUR EXISTING OPPORTUNITY ZONE AND MAKE AN ARGUMENT FOR WHY THESE NEW OPPORTUNITY ZONES WOULD BE ESTABLISHED. DIRECTOR KIERAN COULD SPEAK MORE TO THIS AS WELL, BUT WE

DID GO FORWARD WITH, I BELIEVE, A ZONE IN FIRST HILL ZONE NEAR CHINATOWN INTERNATIONAL DISTRICT, AND THEN WE WERE SUPPORTING A NORTHGATE ZONE AS WELL. SEATTLE HOUSING AUTHORITY ENDED UP CARRYING THAT

ONE FORWARD AND I BELIEVE THOSE ALL MOVED FORWARD COULD BE MISSING 1 OR 2 ON THE LIST. BUT WE WE WENT THROUGH A REALLY INTENTIONAL INTERDEPARTMENTAL PROCESS TO PUT THOSE FORWARD. AND WE COULD WE WERE

HAPPY TO SEND YOU A LIST. THESE ZONES MAKE A BIG DIFFERENCE IN TERMS OF THE FINANCING THAT YOU CAN SECURE TO MOVE PROJECTS FORWARD. IT MAKES A BIG A BIG DIFFERENCE FOR THE CAPITAL STACK. SO IT'S, IT'S

REALLY IMPORTANT FOR KEY PROJECTS THAT WE KNEW WERE IN THE PIPELINE TO ACHIEVE THOSE DESIGNATIONS. AND WE'RE WE'RE EXCITED ABOUT THE PROGRESS SO FAR. -- THANK YOU. APPRECIATE THAT. AND YEAH, I WAS

TRACKING THAT CLOSELY OVER THE LAST YEAR AND KIND OF FELL OFF A LITTLE BIT AND WAS LOOKING AT SOME OPPORTUNITIES IN MY OWN DISTRICT, AND INCLUDING IN SOUTH PARK. AND, BUT THERE'S A LOT OF STAKEHOLDER

THAT NEEDS TO BE INVOLVED. SO I DIDN'T END UP ADVOCATING ON BEHALF OF THAT. SOUNDS LIKE THAT WASN'T EVEN ONE OF THE ONES THAT WAS SELECTED. BUT IN ANY EVENT, WE CAN GET A LIST OFFLINE OFF THE FINAL.

THE FINAL ONES. AND BUT I APPRECIATE THE INITIAL CLARITY. THANK YOU. THANK YOU CHAIR. -- THANK YOU. COUNCILMEMBER. SOCCER COUNCILMEMBER KETTLE THANK YOU, CHAIR. I APOLOGIZE FOR BEING LATE MISSING THE

THE BRIEFING MAYOR'S CHIEF OF POLICE SELECTION COMMITTEE IT'S KEEPING ME BUSY, SO I MISS. SOME OF THESE MAY HAVE BEEN BROUGHT UP DURING THE COURSE OF THE BRIEFING, BUT SO WELCOME, DIRECTOR LARSON, BY

THE WAY, MISS GREER, OBVIOUSLY DIRECTOR PANUCCI AND OUR OWN MR. WHITSON I SEE IN HERE, BY THE WAY, THE ACCOUNTING, YOU KNOW, THE BUDGET PIECE, THE FUND SWAPS AND EVERYTHING ELSE CONTINUE ON THE

PRESERVATION PIECE. YOU KNOW, I LOOK AT THIS, YOU KNOW, IN TWO WAYS. ONE IS THE MAINTENANCE, ONE IS THE STABILIZATION, THE MAINTENANCE PIECE I BRING UP BECAUSE IT HAS HUGE IMPACTS ON THE COMMUNITIES.

I HAVE BEEN DOING PUBLIC SAFETY WALKS AND, YOU KNOW, WALKING BY A HOUSING PROVIDER, I WON'T NAME AND, YOU KNOW, ALL ALONG THE BACKSIDE OF IT IN THE ALLEY, MASSIVE RATS NEST. AND THEN LOOKING DOWN THE

SIDE, IT CONTINUES. AND ONE WONDERS IF IT'S LIKE THIS ON THE OUTSIDE, WHAT IS IT LIKE IN THE INSIDE? AND THIS IS ONE OF THE CHALLENGES, ONE REASON WHY WE HAVE PEOPLE ON THE STREETS IS THE CONDITIONS

OF THE HOUSING STOCK. AND IT HAS A MAJOR FACTOR. AND IT GOES TO LIKE, YOU KNOW, IN TERMS OF THE PEOPLE ON THE STREETS, HOW MANY ACTUALLY HAVE HOUSING BUT ARE CHOOSING FOR DIFFERENT REASONS NOT TO BE

THERE OR TO BE ON THE STREETS LONGER THAN THEY WOULD OTHERWISE. SO I BRING THAT UP. CAN YOU SPEAK TO THAT AGAIN? I MIGHT HAVE MISSED IT IN THE BRIEFING, BUT, YOU KNOW, IN TERMS OF THE STRATEGY AND THE

LINKAGES TO THE PUBLIC SAFETY SIDE, IS THIS SOMETHING THAT COMES UP AND EXECUTIVE SIDE IN TERMS OF THE LINKS BETWEEN THE MAINTENANCE PIECES AND THE PUBLIC SAFETY ASPECTS? -- IT'S CERTAINLY IMPORTANT

TO AVOID BLIGHT IN NEIGHBORHOODS. THAT INCLUDES, YOU KNOW, VACANT LOTS THAT CONTRIBUTE TO CHALLENGES IN DIFFERENT NEIGHBORHOODS. IT'S IT'S A LOT THAT OPERATORS ARE FACING OUT THERE RIGHT NOW. AND THE

COSTS CAN BE INCREDIBLY HIGH FOR WHAT THEY HAVE COMING IN ON THE REVENUE SIDE. THIS IS PART OF WHAT WE'VE TRIED TO ADDRESS WITH A NUMBER OF THE INVESTMENTS THAT WE HAVE BROUGHT INTO THE SECTOR, AND

IT'S NOT SOLVING EVERY SINGLE PROBLEM. I KNOW FROM MY TIME AS AN OPERATOR OF SUPPORTIVE HOUSING THAT ONE DAY YOU COULD WALK BY A BUILDING AND IT WOULD LOOK NOT GREAT. AND INVESTMENT CAN GO IN, CHANGE

THE FACE OF THE PROJECT AND THINGS LOOK REALLY DIFFERENT. A COUPLE MONTHS LATER, WE WE KNOW THAT THERE ARE NEEDS AND WE'VE TAKEN SERIOUSLY USING OUR INVESTMENTS IN THE POLICY TOOLS THAT WE HAVE TO TRY

TO IMPROVE CONDITIONS IN THE AFFORDABLE HOMES IN OUR PORTFOLIO, MORE WORK TO DO, FOR SURE. -- THANK YOU. ON THE STABILIZATION FRONT, I THINK A LOT OF PEOPLE TEND TO FORGET AFFORDABLE HOUSING. YOU

KNOW, THEY'RE LANDLORDS. AND, YOU KNOW, SOME OF THE LANDLORD TENANT ISSUES, AS I'VE SAID BEFORE, LIKE TWO YEARS GROUPS COMING IN SAYING, HEY, WE NEED TO CHANGE IT BECAUSE WE'RE HURTING, WE'RE

LANDLORDS, WE'RE SUFFERING FROM REGULAR SMALL SCALE LANDLORDS OR EVEN THE CORPORATE TYPES. AND WE NEED RELIEF. WE NEED CHANGES IN THE LAWS AND SO FORTH. IN TERMS OF LANDLORD TENANT, THAT DIDN'T REALLY

HAPPEN FOR DIFFERENT REASONS. AND WE'RE HERE TODAY. WITH THAT SAID, FIRST, I WANT TO THANK YOU FOR THE SEATTLE HOUSING INVESTMENT PLAN REPORT. THE SHIP PLAN, COLLEAGUES, THIS KIND OF THAT POINT THAT I

JUST MADE KIND OF GOES TO, YOU KNOW, WHAT WE'RE LOOKING FOR WITH THAT, YOU KNOW, THE SEATTLE HOUSING INVESTMENT PLAN, YOU KNOW, THE FIRST YEAR DID A GREAT JOB OF LOOKING AT AFFORDABLE HOUSING AND

CENTRAL STAFF. MISS LEBREC LOVED IT. MY TEAM LOVED IT, YOU KNOW, AND THEN LAST YEAR, THIS TIME WE BOUGHT A SLY IN TO SAY, HEY, OKAY, AFFORDABLE HOUSING, BUT PERMANENT SUPPORTIVE HOUSING ON ONE SIDE

AND ALSO SOCIAL HOUSING ON THE OTHER. AND HOW THAT PLAYS IN TOGETHER, HOW IT IMPACTS THE STRATEGY THAT YOU HAVE. CAN YOU SPEAK TO THAT? IF IT DOES IMPACT HOW IT IMPACTS AND SO FORTH, IN TERMS OF

LOOKING AT THE SYSTEM MORE IN ITS ENTIRETY? -- SURE. -- YES. YOU YOU WERE ABSENT FROM MY EARLIER REFERENCE TO THE SEATTLE HOUSING INVESTMENT PLAN. COUNCILMEMBER KETTLE. THAT'S A VERY IMPORTANT SLY

RESPONSE THAT WE'VE WE'VE CONTRIBUTED TO THE LAST COUPLE OF YEARS, AND IT WAS A GOOD EXERCISE. THE ONE THE RESPONSE THAT WE SUBMITTED THIS YEAR, YOU CAN SEE THE SEATTLE SOCIAL HOUSING PDA INVESTMENTS

IN PINK TO SORT OF REFLECT SOME OF THEIR BRANDING THAT THEY'VE BEEN BRINGING FORWARD TO COUNCIL AS WELL. THEY ARE PLANNING CURRENTLY WITH WHAT THEIR CHARTER PROVIDES FOR THEM TO DO IS THEIR INCOME

LEVELS ARE 10% AT 30% AMI, 30% AT AT 50, 60, 30%, AT 80, 30% AT 120. SO THEY'RE DOING A BIT OF A SPREAD THAT GOES FURTHER UP THE INCOME CHART THAN THE OFFICE OF HOUSING CURRENTLY INVESTS IN. AND YOU

CAN SEE WHAT THEY PROJECTED OVER THE NEXT SEVERAL YEARS REFLECTED IN THAT RESPONSE TO THE SLY. HAPPY TO SEND IT OVER TO. BUT THIS CHART'S BEEN VERY RELEVANT FOR US AS WE ARE EXAMINING WHAT OUR

INVESTMENTS AND POLICIES WILL LOOK LIKE IN THE YEAR AHEAD TO SEE WHAT PROGRESS WE MIGHT BE MAKING. YOU ALSO ASKED FOR SEATTLE HOUSING AUTHORITY, SO WE'VE ALSO PUT THAT THE WHAT SEATTLE HOUSING

AUTHORITY PROJECTED TO BRING ONLINE IN THE NEXT SEVERAL YEARS. AND LARGELY, WE JUST STILL HAVE SUCH AN ENORMOUS GAP BELOW 50% OF AREA MEDIAN INCOME IN SEATTLE. AND SO THAT IS WHERE THE OFFICE OF

HOUSING WILL BE FOCUSING OUR INVESTMENTS. AND IT'S REALLY HELPED US TO NARROW THAT FOCUS. -- WELL, THANK YOU FOR THE REPORT. AND I ACTUALLY I'M LOOKING AT THE GRAPH RIGHT NOW. IT SHOULD HAVE BEEN IN

THIS. IT SHOULD HAVE BEEN IN THE BRIEFING BECAUSE I THINK IT WOULD HELP. I'M NOT SURE IF MY COLLEAGUES HAVE SEEN IT. THIS THIS MEMO CAME OUT ON JUNE 30th. IT WAS DIRECTED TO HOUSING CHAIR FOSTER, BUT

IT GOES TO THIS. AND I JUST THINK IT'S REALLY IMPORTANT FOR FOR EXAMPLE, IN TERMS OF STRATEGIES, YOU KNOW, AND THIS GOES TO BUDGET, THE SEATTLE TAXPAYERS, YOU KNOW, WE TALK ABOUT AFFORDABILITY, ALL

THE DIFFERENT TAXES AND SO FORTH. WELL, THE LATEST ONE IS THE SOCIAL HOUSING DEVELOPER, WHICH I HAVE BEEN SUPPORTIVE. WE NEED IT TO SUCCEED. BUT YOU KNOW, THEIR REVENUE IN 2025 WAS 115 MILLION. I

DON'T EXPECT ANYTHING. I'VE SEEN NOTHING TO SUGGEST IT'S GOING TO DROP OFF PRECIPITOUSLY OR SO THAT'S STRONG THAT THE SEATTLE TAXPAYERS ARE DOING TO THE HOUSING SPACE. AND IN A LOT OF WAYS, I THINK

THAT SHOULD BE YOU DID THE SHIP REPORT IN TERMS OF. BUT IT ALSO SHOULD BE, YOU KNOW, CBO ALSO LOOKING AT, YOU KNOW, DOES. SO DIRECTOR PANUCCI DOES DOES CBO DOES BUDGET OFFICE LOOK AT THE MONEY. THAT'S

THE SOCIAL HOUSING. SEATTLE SOCIAL HOUSING DEVELOPER. LET ME SAY THAT AGAIN. THE SEATTLE SOCIAL HOUSING DEVELOPER THAT IS GETTING MONEY FROM SEATTLE TAXPAYERS, IS THAT INCLUDED IN THE CALCULATIONS IN

TERMS OF WHAT WE'RE DOING BUDGET WISE, GIVEN THAT, YOU KNOW, THE SEATTLE THE PEOPLE OF SEATTLE ARE RAISING THAT FOR THE HOUSING PIECE? -- IT ISN'T IT IS NOT INCLUDED IN THE CITY BUDGET. SO IT'S NOT

FUNDING. WE HAVE ANY CONTROL OVER, ALTHOUGH IT IS CERTAINLY A PART OF THE CONVERSATION ABOUT THE OVERALL INVESTMENTS FROM SEATTLE TAXPAYERS IN IN AFFORDABLE HOUSING. AND WE CERTAINLY APPRECIATE THOSE

INVESTMENTS. BUT BECAUSE THERE ISN'T ANY IT IS NOT REFLECTED IN THE BUDGET BECAUSE IT IS NOT MONEY THAT COMES TO US. I WILL SAY THERE IS A MINOR. ACKNOWLEDGMENT OF THAT FUNDING THE OFFICE OF ECONOMIC

AND REVENUE FORECAST DOES DO THE FORECASTING OF THAT REVENUE SOURCE ON BEHALF OF THE SOCIAL HOUSING DEVELOPER, AND THEY DO COMPENSATE US FOR THAT WORK. AND SO THAT IS REFLECTED IN THE IN THE BUDGET.

-- SO THAT MONEY THAT WE DO RECEIVE THROUGH THE SOCIAL HOUSING FUND, YOU KNOW, IT COULD BE PART OF THE CALCULATIONS IN TERMS OF, YOU KNOW, HARD CHOICES. IF IT'S $115 MILLION, THAT COULD GIVE

FLEXIBILITY IN TERMS OF WHAT WE'RE DOING WITH SOME OF THE OTHER FUNDS THAT MAY HAVE TO GO TO OTHER PRIORITIES AND THE LIKE. AND THAT'S KIND OF THE, YOU KNOW, THE, THE DIRECTION OF THE QUESTION TO YOU

AS BUDGET DIRECTOR IN THE SENSE OF IS THAT PART OF THE CALCULATION? LIKE, WE CAN WE CAN ACCEPT A PIECE HERE AND USE THIS MONEY ELSEWHERE, BECAUSE WE DO HAVE 115 MILLION COMING INTO HOUSING OVERALL. --

I THINK OVERALL, THERE ARE SIGNIFICANT INVESTMENTS IN HOUSING THAT ARE NECESSARY TO ADDRESS THE HOUSING NEEDS OF THE COMMUNITY. SO THAT IS MORE OF A POLICY CONSIDERATION THAN A IN TERMS OF I GUESS I'M

NOT ENTIRELY CLEAR ON HOW TO ANSWER ANSWER THAT QUESTION. THE THE MONEY THAT THE SOCIAL HOUSING DEVELOPER RECEIVES IS NOT REFLECTED IN THE CITY BUDGET, NOR DO WE HAVE AUTHORITY TO SORT OF DIRECT HOW

THEY ARE USING THOSE FUNDS AS THE CITY, AS THE CITY BUDGET OFFICE. -- BUT IN TIGHT TIMES, IF SEATTLE TAXPAYERS ARE GIVING $115 MILLION IN THIS HOUSING AREA, IT COULD PROVIDE SOME FLEXIBILITY IN THE

BUDGETING PROCESS BECAUSE, HEY, YOU KNOW, THEY'RE ALSO GOT THEIR SHOULDER IN AND THEY'RE WORKING HARD TO CONTRIBUTE TO THE OVERALL PROCESS -- I THINK THAT'S CERTAINLY SOMETHING THAT YOU CAN CONSIDER

AS A POLICY MAKER, AS YOU MAKE CHOICES ABOUT THE BUDGET. -- WELL, I'LL JUST SAY THAT BECAUSE AS YOU SAID YESTERDAY, YOU ARE ACTUALLY THE NUMBER OF DAYS, HARD CHOICES, HARD CHOICES, WHICH I WOULD ARGUE

WRONG CHOICES AT TIMES. AND THOSE WRONG CHOICES COULD BE AMELIORATED WITH POTENTIALLY SOME OF THESE, YOU KNOW, DIFFERENT CONSIDERATIONS ON THAT POINT. AND THIS GOES BACK TO STABILIZATION. COULD THERE

BE A ROLE FOR THE SEATTLE SOCIAL HOUSING DEVELOPER IF THERE IS HOUSING, AFFORDABLE HOUSING ENTITY THAT WAS IN TROUBLE FOR THEM TO MAYBE LOOK TO BUILD THEIR PORTFOLIO WITH A FORMER AFFORDABLE HOUSING

PROPERTY THAT THEN MAY BECOME A SOCIAL HOUSING PROPERTY? IS THAT SOMETHING THAT OH, IS CONSIDERED? -- WE HAVE MET MULTIPLE OF OUR STAFF, HAVE MET WITH SOCIAL HOUSING DEVELOPER STAFF NUMEROUS TIMES

OVER THE LAST YEAR TO HAVE A NUMBER OF DIFFERENT TYPES OF CONVERSATIONS. WE'VE FOCUSED ON DATA. WE'VE TALKED ABOUT HOUSING MARKET DATA. WE'RE SHARING AS MUCH INFORMATION AS WE CAN WITH THEM AND

HEARING MORE ABOUT THEIR PRIORITIES. WE DID TALK TALK ABOUT THIS CONCEPT. AT THIS POINT IN TIME, IT'S NOT A HIGH INTEREST FOR THEM AS THEY ARE REALLY STRIVING TO IDENTIFY ACQUISITIONS THAT ARE IN

AREAS OF OPPORTUNITY AND THAT ARE BUILDINGS OF VERY HIGH QUALITY. TYPICALLY, THE DISTRESSED PROPERTIES THAT WE'RE SEEING IN OUR AFFORDABLE HOUSING SECTOR REQUIRE SIGNIFICANT INVESTMENT, OFTEN ARE IN

DIFFERENT TYPES OF NEIGHBORHOODS THAN WHAT I UNDERSTAND, THE SOCIAL HOUSING DEVELOPER, TO BE INTERESTED IN PURSUING. IN ADDITION, THEY HAVE A VERY SPECIFIC OWNERSHIP OWNERSHIP STRUCTURE REQUIREMENT IN

THEIR CHARTER. SO FAR, THAT'S NOT AN OPTION THAT WE ARE PURSUING, AND WE ARE LOOKING INWARD TO THE OFFICE OF HOUSING BUDGET TO BRING ALL OF OUR RESOURCES TO BEAR AND TO THE PRESERVATION NEEDS OF OUR

PORTFOLIO. -- THANK YOU. I DO BELIEVE THAT THEY'RE LOOKING TO GO CITYWIDE, ACROSS THE BOARD, AND I RECOGNIZE THERE'S THERE'S DIFFERENT TYPES OF DISTRESSED PROPERTIES. THERE'S THOSE THAT ARE PHYSICALLY

IN DISTRESS, AND THEN THERE'S THOSE THAT ARE FINANCIALLY IN DISTRESS. AND SO THERE MAY BE OPPORTUNITIES. THIS WHOLE LINE OF QUESTIONING AND THE SHIP AND REPORT AND THESE OTHER THINGS IS I JUST WANT TO

KIND OF PUSH, THE, YOU KNOW, FOR US TO THINK BIGGER, AND PARTICULARLY BECAUSE IT IS THE SEATTLE TAXPAYERS THAT FUND THAT AS WELL. AND THEN THE SHARED SPACE THAT EVERYBODY IS WORKING IN THAT IN TERMS

OF COLLABORATION, IT'S LIKE BRINGING THE JOINT VOICE TO THE MILITARY. I THINK WE HAVE TO HAVE A JOINT HOUSING FORCE EFFORT HERE WHERE THE OA AND SOCIAL HOUSING, INCLUDING SEATTLE HOUSING AUTHORITY,

WHICH IS DIFFERENT, I RECOGNIZE FOR DIFFERENT REASONS, BUT TO TO ENSURE THAT THE END PRODUCT IS GETTING WORSE, WHERE WE NEED TO BE, AS OPPOSED TO DISPARATE ACTIONS. AND I JUST, I JUST RAISED THESE

QUESTIONS TO INCLUDE THE BUDGET DIRECTIONS TO KIND OF PRESS DIRECTOR PANUCCI BECAUSE, YOU KNOW, IT'S A, TO ENGAGE ON THAT DISCOURSE. BUT I JUST THINK IT'S REALLY IMPORTANT. CHAIR. AND FOR THE HOUSING

COMMITTEE CHAIR AND FOR ALL OF US TO THINK ABOUT THIS. AND THAT'S THE RATIONALE BEHIND MY QUESTION. SO THANK YOU VERY MUCH. -- THANK ME. JUST ONE MORE RESPONSE. -- MEMBER KETTLE DOES THE COMMITTEE

TABLE HAVE ANYTHING TO SHARE YEAH, SURE. -- ONE MORE RESPONSE TO THAT. CHAIR STRAUSS WE ALSO HAVE SPOKEN QUITE A BIT WITH SEATTLE HOUSING AUTHORITY IN THE LAST YEAR, AND IT'S REALLY IMPORTANT TO US

THAT WE VIEW ALL OF THESE EFFORTS TO BE COMPLEMENTARY. WE ARE STRIVING TO ACHIEVE A PERCENTAGE OF MARKET SHARE OF OUR HOUSING MARKET, THAT IS INCOME AND RENT RESTRICTED, AND ALL OF US ARE WORKING

TOWARD THAT GOAL. AND THAT IS THE MOST IMPORTANT PIECE THAT HELPS TO END HOMELESSNESS AND PROVIDE STABILITY FOR OUR LOWEST INCOME RENTERS IN THE CITY. SO SOCIAL HOUSING IS SERVING SORT OF A DIFFERENT

INCOME STRATA THAN WHAT THE OFFICE OF HOUSING IS FOCUSING ON, WHICH IS GOING FORWARD REALLY BELOW 50% OF AREA MEDIAN INCOME IS OUR IS OUR AREA OF EMPHASIS. -- OKAY. THANK YOU. -- THANK YOU.

COUNCILMEMBER KETTLE. ANYTHING ELSE? THANK YOU. WE'RE GOING TO CONTINUE MOVING ON. ANYONE WHO HAS NOT SPOKEN YET, WOULD YOU LIKE TO SPEAK? I'LL JUST RUN THROUGH. COUNCILMEMBER RIVERA DID YOU GO BEFORE

AS WELL? ALL RIGHT. I'M GOING TO DO MY PIECE AND THEN I'LL CALL ON YOU FOR BRIEF REMARKS. LOOKING AT OUR SEVEN YEAR LOOK BACK, IT DOESN'T EVEN TELL THE WHOLE STORY. SEVEN YEARS AGO, OFFICE OF HOUSING

WAS A WAS 408% SMALLER THAN IT IS TODAY. IF YOU GO BACK TO 2017, I BELIEVE IT WAS ONLY $7.6 MILLION THAT WE INVESTED IN THE OFFICE OF HOUSING. IN TOTAL SO HERE WE ARE IN 2026, LOOKING AT THE 2027

BUDGET OF $347 MILLION. SORRY, THERE'S THREE ZEROS THAT YOU DON'T PRINT. THERE. I MEAN IT'S REALLY IMPORTANT. THE CITY OF SEATTLE IS TWICE AS BIG AS WHEN I WAS GROWING UP THROUGH THE 2010s. WE WENT

THROUGH A GROWTH SPURT AND WE WERE ONLY RELYING ON AN HOUSING LEVY THAT WAS BUILT BEFORE THE GROWTH SPURT IN FROM 2017 TO 2023. SO IN 2017, $7.6 MILLION. THEN WE ADDED MANDATORY HOUSING AFFORDABILITY.

THAT WAS BRINGING IN ABOUT $67 MILLION ON AVERAGE ANNUALLY FOR 2019 THROUGH 2023. IN 2022, WE ADDED, IF YOU WANT TO GO BACK TO SLIDE THREE, IT SHOWS ALL OF WHAT I'M TALKING ABOUT HERE IN TODAY'S

NUMBERS. IN 2022, WE STARTED COLLECTING THE JUMP START FEES THAT WE PASSED DURING 2020. AND THEN IN 2023, WE PASSED A NEW HOUSING LEVY, ADDING $139 MILLION ANNUALLY. HOWEVER, IN 2024, MH AYE HAD

DROPPED TO $24 MILLION ANNUALLY, AND IN 2026, WE ARE STILL WE ARE JUST OH, WE STILL HAD ANOTHER $124 MILLION THROUGH SEATTLE SOCIAL HOUSING DEVELOPER. SO I THINK THE POINT THAT COUNCILMEMBER KETTLE

MAY HAVE BEEN MAKING WAS WE ARE ONLY $5 MILLION FEWER. IF WE HAD $5 MILLION MORE IN THE OFFICE OF HOUSING BUDGET TODAY, WE WOULD AGAIN BE INVESTING A HISTORICAL AMOUNT OF MONEY INTO THE OFFICE OF

HOUSING. WE DON'T HAVE THAT $5 MILLION. I STILL THINK IT'S A REALLY GREAT INVESTMENT. AND ON TOP OF THAT, THE ELASTICITY OF OUR TAX ENVIRONMENT WAS SUBSUMED BY THE SOCIAL HOUSING INVESTOR, WHICH IS

OKAY. RIGHT? SEATTLE VOTERS SAID, WE WANT THESE FUNDS TO BE DEDICATED TOWARDS HOUSING THROUGH THE SEATTLE SOCIAL HOUSING INVESTOR. AND WHAT THAT ALSO MEANT IS THAT THE CITY'S ABILITY TO CHANGE THOSE

JUMPSTART RATES CHANGE DRASTICALLY. AND A CHANGE TAX ENVIRONMENT, THAT'S A THAT'S A PROFESSIONAL TAKE HERE AS A BUDGET CHAIR, NOT ONE THAT I'M TRYING TO GET RESPONSE FROM THE COMMITTEE TABLE HERE. I'M

JUST TALKING ABOUT THE WHOLE ENVIRONMENT. I SHARE THIS BECAUSE WE HAVE MULTIPLE BRAIDED FUNDING STREAMS FOR THE OFFICE OF HOUSING. I SHARE THIS BECAUSE IT TOOK US SIX YEARS, SEVEN YEARS TO GET MH AYE

ON THE BOOKS. SO BY THE TIME WE STARTED COLLECTING IT, IT WAS AT THE END OF A BUILDING CYCLE. AND WE KNEW THAT THAT WAS NOT ENOUGH, WHICH IS WHY WE PASSED THE JUMPSTART TAX, WHICH IS WHY WE INCREASED

THE MOST RECENT HOUSING LEVY. AND SO THAT IS HOW WE GOT TO A 408% INCREASE FROM EVEN JUST 2019. THE STORY OF YOUR DEPARTMENT, FOR ME, TELLS THAT STORY OF A STARTUP, A SCRAPPY STARTUP. IN 2017 WITH $7

MILLION TO BEING A REALLY BIG COMPANY AT $350 MILLION A YEAR. AND SOME OF THAT WAS, YOU KNOW, INITIAL STARTUP MENTALITY IS TO BE RISK AVERSE, KEEP ALL OF THAT CAPITAL IN THE BANK FOR THE DAY THAT IT

NEEDS TO EXIT QUICKLY. AND WHAT I'VE BEEN IMPRESSED BY IS TO SEE HOW THE DEPARTMENT HAS BECOME HAS GROWN. I WOULD SAY THAT YOUR STAFFING HAS NOT GROWN AT THE LEVEL THAT IT MIGHT YOU MIGHT NEED TO. SO

HERE'S ME SUGGESTING, SORRY. BUDGET DIRECTOR, BUT THEY MIGHT NEED MORE STAFF TO TALK THROUGH TO CREATE THESE SHIP SHAPED PLANS AND TO HAVE THAT CONVERSATION. BECAUSE ONE THING THAT I THINK IT WAS FROM

THE BUDGET LAST YEAR THAT I'M NOT SEEING THIS YEAR IS HOW YOU ACTUALLY STACKED OUT YOUR UNITS YEAR BY YEAR. BECAUSE FROM MY EXPERIENCE, IT TAKES FOUR MINIMUM YEARS TO SIX YEARS ON AVERAGE TO GO FROM A

NOFA TO THE DOORS BEING OPEN. AND SO BECAUSE IT TAKES SO MUCH TIME, IT'S REALLY CRITICAL THAT COMMUNICATION. AND SO I SAW THAT SLIDE LAST YEAR. I DON'T KNOW IF IT'S JUST IN A DIFFERENT PRESENTATION.

IF YOU HAVE THAT UPDATED TODAY, I'D LOVE TO SEE ANOTHER COPY BECAUSE THAT'S THE TYPE OF THE WORK THAT I SEE THE STAFF, YOUR DEPARTMENT NEEDING TO GROW IN AND HOW TO CREATE THAT BETTER ACCESS, NOT ONLY

FOR UNDERSTANDING THAT SEATTLEITES WHO MIGHT BE STRUGGLING WITH RENT TODAY, HAVE A FUTURE IN THE NEAR FUTURE HERE, BUT THEN ALSO GETTING TO THE POINT THAT COUNCILMEMBER FOSTER WAS BRINGING UP THAT YOU

WERE DISCUSSING AS WELL, THAT STUDIOS AND ONE BEDROOMS ARE NEARLY IN PLACES THE SAME COST AS MARKET RATE WHAT WE'RE SEEING AND COUNCILMEMBER LIN BROUGHT UP IS A CASH FLOW TOOL. IT DEMONSTRATES THAT

THROUGHOUT THE ENTIRE CITY BUDGET, WE ARE NOT AT THE END OF THE ROAD. WE DO HAVE OTHER TOOLS THAT EXIST LIKE THIS, AND IT IS INCREDIBLY IMPORTANT THAT WE TAKE THESE TOOLS ONE AT A TIME, WHICH IS WHY

I'VE TALKED ABOUT A MULTIYEAR STRATEGY TO WALK DOWN THE HILL OF STRUCTURAL BUDGET DEFICIT, RATHER THAN STEPPING OFF A CLIFF. THIS COMES BACK TO MY MENTALITY THAT IF WE MAKE SMART CHOICES CAREFULLY AND

SLOWLY OVER A NUMBER OF YEARS, WE DON'T UNINTENTIONALLY CUT PROGRAMS THAT WE MAY ACTUALLY REALLY NEED, OR WE DON'T SHRINK PROGRAMS BEYOND WHAT THEY NEED. AND SO I, I DO APPRECIATE THAT WE ARE USING

THIS TOOL THIS YEAR. IT IS A TOOL THAT WE HAVE HELD OFF ON USING. AND I JUST WANT TO THANK YOU FOR BEING ABLE TO CREATE THAT STABILITY THAT WE NEED WHEN WE'RE USING THIS TOOL. IF YOU ARE A NEW

DEPARTMENT DIRECTOR THAT HAD NOT BEEN HERE AND THAT WE DIDN'T COME TO ALREADY, I WOULD HAVE A LOT MORE FEAR AND RISK THAT THIS STEP WOULD BE DONE INCORRECTLY. SO I GUESS WE DON'T HAVE ANY QUESTIONS

TODAY. I WOULD SAY IN YOUR UPCOMING NOFAS AND IN YOUR UPCOMING FUNDING, ARE YOU STILL FUNDING ONE BEDROOM AND STUDIO, OR HAVE YOU CHANGED ENTIRELY TO FAMILY SIZED UNITS AT THIS TIME? -- WE'VE BEEN

TALKING QUITE A LOT ABOUT THIS THIS YEAR ALREADY. THE TEAM WILL BE LOOKING REALLY CLOSELY AT APPLICATIONS THAT ARE SUBMITTED. WE DON'T WANT TO NECESSARILY SET UP RULES AND INCENTIVES THAT MAKE

PROJECTS IMPRACTICAL OR INFEASIBLE, AND WE WANT THESE PROJECTS TO BE DEEPLY AFFORDABLE, BELOW MARKET AND COMPETITIVE IN THEIR NEIGHBORHOODS. SO AS WE ARE EXAMINING PRO FORMAS AND PROJECTS THAT ARE

SUBMITTED THIS YEAR, WE WILL BE VERY CLOSELY SCRUTINIZING ANY STUDIOS OR SMALL APARTMENTS AND THE LEVELS OF THE RENTS THAT THEY ARE BRINGING FORWARD. IT'S NOT TO SAY THAT WE DON'T NEED ANY STUDIO

APARTMENTS, IT'S THAT THEY HAVE TO BE PRICED RIGHT IN THIS CURRENT MARKET, PARTICULARLY BY SUBMARKET, AND WE REALLY NEED FAMILY SIZED HOMES. SO THERE'S ALWAYS A TRADE OFF FOCUSING ON THE NUMBER OF

PEOPLE THAT WE SERVE, RATHER THAN THE NUMBER OF UNITS THAT WE SERVE. WE ARE ABLE TO STRETCH OUR INVESTMENTS FURTHER, AND WE ARE TRYING TO PUSH MORE TOWARD THOSE FAMILY SIZED HOMES. SO I'M REALLY

EXCITED TO SEE HOW OUR INVESTMENT DECISIONS ARE MADE THIS YEAR. WE'LL BE WATCHING THAT REALLY CLOSELY AND MAKING SURE THAT IT'S INFORMED BY THE DATA THAT WE HAVE RIGHT NOW. -- THANK YOU. THIS ALL

STEMS OFF OF THE POLICY QUESTIONS THAT WERE ASKED EARLIER. I WON'T ASK THEM JUST TO DOUBLE, DOUBLE DOWN ON. WE NEED TO REALLY LOOK AT OUR OPERATING COSTS AS THIS. AT THE SAME TIME THAT WE'RE LOOKING

AT WHAT ARE WE FUNDING TO BUILD? WHAT ARE THE SATURATION LEVELS THROUGHOUT THE MARKET WHERE WE ALREADY SEEING AN OVERSUPPLY OF CERTAIN UNITS IN THOSE RENTS COMING DOWN? THESE ARE THIS IS ALL REALLY

CRITICAL INFORMATION BECAUSE OVER THE COURSE OF THESE LAST TEN YEARS, YOU'VE GONE FROM A STARTUP TO A FORTUNE 500 COMPANY, WHICH WE ARE ALL GLAD FOR. AND THAT WE ARE AT A POINT WHERE THE INVESTMENTS

THAT WE'VE MADE ARE STARTING TO CATCH UP. WE'RE NOT QUITE THERE, BUT IT IS A TIME FOR REFINEMENT AND FOR PIVOTING JUST TO ENSURE THAT WE ARE NOT STILL TRYING TO SERVE THE SAME CLIENT THAT WE WERE

TRYING TO SERVE SIX YEARS AGO, WHERE THE ENVIRONMENT WAS VERY DIFFERENT. AND COLLEAGUES, I WILL JUST SAY, IF WE DID NOT USE THIS BUDGET TOOL, THIS CASH MANAGEMENT, THIS CASH FLOW MANAGEMENT TOOL, WE

WOULD HAVE TO CHOOSE. WE WOULD THERE WOULD BE MORE EMPLOYEES THAT WOULD BE LAID OFF THIS YEAR. THERE WOULD BE MORE PROGRAMS THAT WOULD BE CUT. THERE WOULD BE MORE ONE TIME FUNDING ITEMS THAT WERE NOT

REFUNDED. THERE WOULD BE THE THINGS THAT WERE ONE TIME AND THAT ARE NOW ONGOING, THAT WOULD NOT BE FUNDED. IT REALLY COMES AS I'M LOOKING THROUGH THIS ENTIRE BUDGET. IT COMES DOWN TO ENSURING THAT WE

KEEP OUR EMPLOYEES SO THAT THEY CAN KEEP PAYING THEIR RENT AND THEIR MORTGAGE AND THE OTHER COSTS IN THEIR LIVES. BECAUSE OUR OTHER CHOICE IS TO LEAVE THE CASH IN THIS CASH FUND, OR WE CAN MAKE SURE

OUR EMPLOYEES ARE STILL ABLE TO PAY THEIR MORTGAGE AND RENT. AND FOR ME, THAT'S A GOOD USE OF HOUSING DOLLARS. THANK YOU. WITH THAT, COUNCILMEMBER RIVERA SHORT AND THEN OVER TO COUNCILMEMBER FOSTER TO

CLOSE THIS OUT. -- THANK YOU CHAIR. I JUST REALLY WANTED TO I APPRECIATE COUNCILMEMBER KETTLE YOU BRINGING UP THE POINT ABOUT WE SHOULDN'T BE OPERATING IN SILOS IS BASICALLY THE BOTTOM LINE. AND AS

THE OFFICE OF HOUSING IS MOVING FORWARD WITH THEIR INVESTMENTS, ENSURING THAT THEIR, YOU KNOW, LOOKING AT THE ENTIRE ECOSYSTEM, WHAT'S SHE DOING? WHAT'S THE SOCIAL HOUSING PDA DOING AND MAKING SURE

WE'RE NOT DUPLICATING EFFORTS BECAUSE COUNCILMEMBER KETTLE, I UNDERSTOOD YOUR POINT TO BE IF SHA IS DOING SOMETHING OR SOCIAL HOUSING PDA LET'S NOT US DO THE SAME. WE CAN TWEAK OUR OFFERINGS TO MAKE

SURE THAT WE'RE ABLE TO PROVIDE SOMETHING THEY CAN'T. SO TO ME, IT'S A COORDINATION PIECE. WE KNOW WE DON'T HAVE AUTHORITY OVER EITHER THE SOCIAL HOUSING PDA OR SHA, BUT WE CAN PARTNER WITH THEM AND

MAKE SURE THAT WHAT WE'RE COLLECTIVELY DOING IS WHAT THE WHAT THE CITY NEEDS. AND I THINK THAT THAT'S REALLY IMPORTANT. AND IT GOES TO WE OFTEN ARE OPERATING IN SILOS. LET'S NOT DO THAT. AND LET'S

MAKE SURE WE'RE PARTNERING. AND FOR THAT MATTER, WE ALSO ARE LOOKING TOWARD PUBLIC PRIVATE PARTNERSHIPS BECAUSE THOSE ACTUALLY ALSO HELP US LEVERAGE OUR MONEY. AND SO WE SHOULD BE LOOKING AT ALL OF

IT. SO THANK YOU, COUNCILMEMBER KETTLE, FOR BRINGING IT UP. I THOUGHT THIS WAS A REALLY IMPORTANT POINT, AND I'M NOT SURE HOW WE ARE. WE'D LOVE TO HEAR MORE INFORMATION ABOUT HOW THE OFFICE OF HOUSING

IS SPEAKING TO THESE OTHER ENTITIES. AND EVEN IN THE PRIVATE SECTOR, TO MAKE SURE THAT WE ARE OPERATING WITHIN THIS ECOSYSTEM IN A ROBUST WAY AND NOT SILOED. AND YOU MAY BE DOING THAT. WE JUST DON'T

KNOW ABOUT IT. THANK YOU. THANK YOU, CHAIR. -- THANK YOU. ANYTHING ANY LAST COMMENTS FROM THE COMMITTEE TABLE? THEN I'M GOING TO TURN IT OVER TO COUNCILMEMBER FOSTER FOR LAST WORD. ANYTHING YOU'D LIKE

TO SHARE? THIS IS YOUR LAST CHANCE TO MAKE A PITCH YES, MA'AM. ALL RIGHT. COUNCILMEMBER FOSTER, TAKE US HOME. -- ALL RIGHTY. THANK YOU SO MUCH. WE'RE STILL GOING TO BE RIDING ON THE TRAIN FOR A LITTLE

WHILE BEFORE WE GET HOME. BECAUSE, COLLEAGUES, YOU BROUGHT UP SOME GREAT POINTS THAT I WANT TO JUST TOUCH ON. SO THANK YOU SO MUCH, CHAIR. WHAT A GREAT DISCUSSION TODAY. SO THANK YOU SO MUCH TO ALL MY

COLLEAGUES HERE. AND AGAIN, TO THE TABLE FOR SUCH A ROBUST DISCUSSION, SOMETHING THAT ANOTHER COUNCILMEMBER SAID JUST REMINDED ME OF SOMETHING I WANTED TO TALK ABOUT IN TERMS OF HOME OWNERSHIP, WHICH

YOU ALL KNOW, BECAUSE I TALK ABOUT THIS ALL THE TIME IN COMMITTEE. I CARE DEEPLY ABOUT I OWN MY HOME BECAUSE OF CITY INVESTMENTS IN HOME OWNERSHIP. AND SO I'M JUST LIVING PROOF OF HOW IMPORTANT THAT

IS. AND I THINK IN THE COURSE OF THAT CONVERSATION, WE STARTED TO TALK ABOUT SOME OF THE ONE TIME ADS. AND SO THERE'S SORT OF THERE'S TWO THINGS I WANT TO BRING UP HERE. ONE IS JUST A QUESTION THAT

HAD BEEN FLOATING AROUND IN MY HEAD FOR THE LAST COUPLE OF DAYS, AS WE'VE HAD SOME COUNCIL DISCUSSION. I THINK THIS IS PROBABLY APPROPRIATE FOR DIRECTOR PANUCCI. DO WE KNOW, YOU KNOW, IF WE IF THOSE

ONE TIME ADS HAD BEEN INCORPORATED INTO THE BASELINE BUDGET, DO WE KNOW WHAT WE WOULD BE LOOKING AT CUTTING? BECAUSE OBVIOUSLY WE HAD THIS $175 MILLION DEFICIT WHERE WE'RE DEALING WITH THAT THROUGH A

LOT OF REALLY DIFFICULT DECISIONS. AS YOU, AS YOU SAID, DIRECTOR PANUCCI, A FEW TIMES. BUT IF THOSE ONE TIME ADS HAD BEEN ONGOING, DO WE KNOW WHAT WE'D BE TALKING ABOUT? CUTTING FROM THE BUDGET? --

YEAH, THANKS FOR THAT QUESTION. COUNCILMEMBER FOSTER IN THE GENERAL FUND, THERE WERE ABOUT $53 MILLION OF ONE TIME ADS INCLUDED IN THE 2026 BUDGET. SO THAT WAS $53 MILLION. THAT WAS NOT CALCULATED

WHEN WE WERE TALKING ABOUT 150 TO $175 MILLION PROJECTED DEFICIT, SOMEWHERE BETWEEN 10 AND $15 MILLION OF THOSE ONE TIME ADS ARE MADE ONGOING IN THE 27 PROPOSED BUDGET. AND THEN IN THE JUMPSTART FUND.

AND I'M JUST GOING TO RAISE THIS AS WELL, BECAUSE OF THE SORT OF INTERMINGLING OF THE THESE FUND SOURCES. THERE WAS ANOTHER ABOUT $25 MILLION OF ONE TIME ADS. SO COLLECTIVELY, AROUND $78 MILLION OF

ONE TIME EXPENDITURES INCLUDED IN THE 2026 BUDGET THAT WHEN LOOKING AT PROJECTED ONGOING DEFICITS, WERE NOT CALCULATED -- SO I DID I HEAR 75 MILLION. IS THAT WHAT I GOT? -- YEAH, IT'S 53 PLUS 25. SO

ABOUT 78 TO BE. A LITTLE MORE PRECISE. -- I'LL TAKE IT. DIRECTOR. THANK YOU FOR THAT. I APPRECIATE THAT CLARIFICATION. IT'S JUST BEEN SOMETHING I WAS THINKING ABOUT THROUGH SOME OF OUR PREVIOUS

CONVERSATIONS. AND THEN LOOKING AT THE SLIDE THAT WE HAVE ON THE SCREEN. I, I WANT TO PERHAPS STATE THE OBVIOUS, WHICH IS THE ZERO IN GENERAL FUND THAT THE OFFICE OF HOUSING RECEIVES. AND I THERE'S A

COUPLE OF POINTS I THINK I WANT TO MAKE HERE JUST BECAUSE WE WERE TALKING ABOUT THE IMPACTS OF AFFORDABILITY, THE IMPACTS TO TO SEATTLE RESIDENTS AND TAXPAYERS IS ARE THERE HOW MANY DEPARTMENTS

RECEIVE $0 FROM THE GENERAL FUND -- THERE ARE TWO. THE OFFICE OF ARTS AND CULTURES AND THE OFFICE OF HOUSING. AND JUST FOR ANYONE WHO REALLY LOVES TO READ THE BUDGET BOOK, THERE ARE SOME DEPARTMENTS

THAT DON'T RECEIVE DIRECT GENERAL FUND APPROPRIATION, SO IT WILL APPEAR LIKE THE OFFICE OF LABOR STANDARDS BECAUSE THEY HAVE THEIR OWN FUND. THEIR MONEY FLOWS THROUGH FINANCE GENERAL. AND THEN TO THE.

SO I JUST WANT TO FLAG IF ANYONE WAS LOOKING AT THEIR BUDGET, IT WOULD LOOK LIKE THEY DON'T GET GENERAL FUND, BUT THEY ARE PRIMARILY SUPPORTED BY THE GENERAL FUND. SO JUST TWO OFFICE OF ARTS AND

CULTURE AND THE OFFICE OF HOUSING. -- I HAVE TO SAY, I FEEL DISPROPORTIONATELY REPRESENTED THERE BECAUSE -- [LAUGHTER] -- BOTH OF THOSE ARE IN ARE IN MY COMMITTEE, BUT I WON'T I WON'T TAKE THAT

PERSONALLY, BUT I THINK IT'S A HELPFUL CLARIFICATION, AND I APPRECIATE MY COLLEAGUES BRINGING UP THE IMPACT TO, TO, TO SEATTLE RESIDENTS AND HOMEOWNERS. BUT I KNOW OBVIOUSLY, WE HAVE A HISTORIC

HOUSING LEVY THAT'S REALLY IMPORTANT. BUT THERE WAS JUST SOME POINTS AROUND TAXPAYERS THAT I WANTED TO ASK YOU TO CLARIFY. WHEN IT COMES TO JUMP START AND WHEN IT COMES TO THE SEATTLE SOCIAL HOUSING

DEVELOPER, IN TERMS OF WHO IT IS THAT IS PAYING INTO THOSE. SO CAN I ASK AND MAYBE THIS IS, AGAIN, FOR DIRECTOR PANUCCI THE HOW THOSE ARE STRUCTURED. I JUST WANT TO KEEP THIS FOREFRONT. I KNOW WE KNOW

THIS HERE AT THE DAIS, BUT FOR ANYBODY WHO'S IN THE VIEWING PUBLIC THAT'S WATCHING TO MAKE THAT DISTINCTION. -- I ACTUALLY CAN'T OFF THE TOP OF MY HEAD, SPEAK DIRECTLY TO THE THE DISTINCTIONS. THERE

ARE DIFFERENT THRESHOLDS FOR WHO PAYS INTO THE JUMPSTART TAX AND FOR THE SOCIAL HOUSING DEVELOPER, IT IS THE THE HIGHER THRESHOLD. SO COMPANIES WHO EARN MORE OR OR EARN MORE MONEY. BUT I DON'T HAVE

THAT THRESHOLD OFF THE TOP OF MY HEAD. -- THAT'S OKAY. I KNOW WE'RE HERE TO TALK ABOUT OFFICE OF HOUSING AND THAT OBVIOUSLY THE SOCIAL HOUSING DEVELOPER TAX DOES NOT COME INTO THE OFFICE OF HOUSING,

BUT I THINK IT'S 5% ON INCOMES OR WAGES ABOVE $1 MILLION, IF I REMEMBER CORRECTLY. AND I KNOW THERE'S GRADATION WITH JUMPSTART, BUT I JUST WANTED TO BRING THAT DISTINCTION AS WE'RE TALKING ABOUT SORT

OF THE TAXPAYER AND IMPACTS. OH, WERE YOU SAYING SOMETHING? NO. OKAY. I JUST WANT TO BRING THAT DISTINCTION. SO THANK YOU FOR THAT. AND AGAIN, IT'S NOT THAT THERE'S NOT SOMEBODY PAYING AT THE END OF

THE DAY, BUT I WANTED TO CLARIFY, YOU KNOW, WHAT'S GENERAL FUND, WHAT IS OUR PROPERTY TAX LEVY? AND THEN WHAT IS THROUGH OUR OUR PAYROLL EXPENSE TAX, I THINK A FEW OTHER THINGS THAT I WANTED TO TOUCH

ON BEFORE WE BEFORE WE WRAP UP, JUST THE THINGS I WANTED TO HIGHLIGHT GOING BACK TO THE HOMEOWNERSHIP. AND THANK YOU SO MUCH, COUNCILMEMBER SAKA, FOR BRINGING THIS UP. AND I WANTED TO SHARE, YOU KNOW,

YOU TALKED ABOUT THIS DIRECTOR LARSON, I KNOW THIS IS NOT A QUESTION FOR YOU, DIRECTOR, BUT WE TALKED ABOUT THE. HARVEY. AND I JUST WANT TO SAY THIS IS SOMETHING I THINK IS UNDERRATED IN TERMS OF WORK

THAT THE OFFICE OF HOUSING HAS DONE THIS YEAR. AND THAT ACQUISITION AND THE FACT THAT NOT ONLY WILL IT BE HOMEOWNERSHIP, BUT IT'LL BE HOMEOWNERSHIP WITH COMMUNITY PREFERENCE APPLIED IN THE CENTRAL

DISTRICT, WHICH REALLY JUST GIVES US A REALLY FANTASTIC OPPORTUNITY TO DO HOMEOWNERSHIP RIGHT ALONG WITH EQUITY IS JUST SOMETHING I DON'T THINK WE COULD APPLAUD ENOUGH. AND SO I APPRECIATE YOU

BRINGING THAT UP. IN TERMS OF WORK IN THE PIPELINE. BUT I WANTED TO JUST BRING THAT THAT FINER POINT TO THAT. I THINK THAT BRINGS ME TO THE THINGS I WANTED TO TOUCH ON. AND THANK YOU AGAIN FOR MY

COLLEAGUES, FOR THE DISCUSSION THAT HELPED ME ROUND OUT THINGS I WANTED TO HIGHLIGHT TODAY. SO I'LL CLOSE CHAIR BY SAYING, I THINK OUR INVESTMENTS THAT WE'RE MAKING IN HOUSING ARE HISTORIC, AS YOU

MENTIONED, AND ALSO, AS WE HEARD TODAY, GIVEN THE ONGOING OPERATIONS CHALLENGES, GIVEN THE CHALLENGES IN THE PIPELINE, IT'S ANOTHER AREA WHERE IT'S HARD TO IMAGINE EVER DOING ENOUGH BECAUSE THE NEED

IS SO HIGH, PARTICULARLY IN THAT 0 TO 30% SPACE, AS YOU ALL HAVE ALREADY HIGHLIGHTED. SO I'LL JUST CLOSE WITH SAYING AGAIN MY GRATITUDE TO THE OFFICE FOR YOUR WORK. AND I -- THINK THE PIVOTS THAT ARE

BEING MADE THAT WE TALKED ABOUT THIS YEAR ARE REALLY I'M HOPEFUL THAT THEY'RE GOING TO ALLOW US TO CONTINUE THESE REALLY STRONG INVESTMENTS. AND I KNOW WE JUST HAVE TO KEEP THIS INVESTMENT STABLE AND

DO EVERYTHING THAT WE CAN TO TO MAINTAIN THOSE INVESTMENTS, PARTICULARLY WITH THOSE JUMP START REVENUES. SO THANK YOU SO MUCH, DIRECTOR, AND THANK YOU SO MUCH. -- CHAIR THANK YOU, COUNCILMEMBER

FOSTER, FOR LEADING US THROUGH HOUSING AND ARTS. WITH THAT, WE ARE GOING TO TRANSITION TO OUR NEXT AGENDA ITEM. WE ARE NOT GOING TO TAKE AN EASE OR RECESS. IF YOU DO NEED TO USE GET SOME SNACKS OR GET

SOME WATER, JUST PLEASE DO SO NOW AND WATCH YOUR FIVE. THIS IS WHERE EVERYONE TRANSFERS QUICKLY. THANK YOU. WE ARE GOING. YES. SO PLEASE TAKE THIS MOMENT. IF THE CLERK COULD READ THE SECOND ITEM INTO

THE RECORD. -- AGENDA ITEM TWO. SEATTLE. DEPARTMENT OF CONSTRUCTION AND INSPECTIONS FOR BRIEFING AND DISCUSSION. -- THANK YOU. AND WE HAVE SEATTLE DEPARTMENT OF CONSTRUCTION AND INSPECTIONS. NEXT WE

HAVE DIRECTOR SAM STEEL, SHANE MERKOW STILL HAVE DIRECTOR PANUCCI. AND WE HAVE A COUPLE OTHER FOLKS. YOU ALL AS YOU'RE TRANSFERRING. YOU ALL MADE A SURPRISE GUEST APPEARANCE LAST YEAR, I BELIEVE IN

THE FINAL STAGES OF OUR BUDGET, WHICH WAS OUT OF STANDARD PRACTICE. SO I APPRECIATE YOU BEING HERE DURING THIS PART OF LAST YEAR'S BUDGET, AS WELL AS THE LATE LAST MINUTE. AND MAYBE YOU DIDN'T KNOW

YOU WERE COMING TO THE COMMITTEE TABLE CALL THAT WE MADE LAST NOVEMBER. SO GOOD TO SEE YOU ALL BACK. STILL HAVE QUORUM. IF YOU WANT TO JUST INTRODUCE YOURSELVES, WE'RE GOING TO GO THROUGH THE SAME

PROGRAM, RUN THROUGH YOUR PRESENTATION. WE'LL TURN IT OVER COUNCILMEMBER LIN AND THEN WE'LL COME BACK. SO OVER TO YOU, DIRECTOR STEEL. -- THANK YOU, COMMITTEE CHAIR STRAUSS, I'M SAM STEEL, INTERIM

DIRECTOR OF SEATTLE DEPARTMENT OF CONSTRUCTION AND INSPECTIONS. -- AND I WILL JUST SAY, GENTLEMEN, YOU'RE GOING TO HAVE TO MICK JAGGER PRETEND YOU'RE IN THE ROLLING STONES. PULL THAT MICROPHONE CLOSE.

THANK YOU. -- SHANE. -- SHANE. YOUR TURN. -- SHANE. SHANE, FINANCE DIRECTOR AT SDCI. -- THANK YOU. STILL HAVE DIRECTOR PANUCCI STILL HAVE DIRECTOR WHITSON. JUST TAKE IT AWAY, GENTLEMEN. THANK YOU. --

SO THANK YOU, COMMITTEE CHAIR STRAUSS. AND I WANT TO JUST SAY THAT TO ALL THE COUNCILMEMBERS. THANK YOU FOR THIS OPPORTUNITY TO PRESENT OUR APPROACH ON PROVIDING A A SOLID FINANCIAL STEWARDSHIP WITH

CAREFUL, THOUGHTFUL THOROUGHNESS. AND THAT'S BEING ASKED FOR BY THE PUBLIC RIGHT NOW. I ALSO WANT TO THANK YOUR STAFF MEMBERS WHO HAVE SUPPORTED US. COUNCIL CENTRAL STAFF AND AS WELL AS DIRECTOR

PANUCCI, FOR ALL YOUR WISDOM AND GUIDANCE THROUGHOUT ALL OF THIS. SO LEADING INTO OUR PRESENTATION. OUR VISION, PURPOSE, AND VALUES HAVE REMAINED THE SAME FROM OUR LAST REPORTING PERIOD. WE ADMINISTER

ORDINANCES REGULATING BUILDING CONSTRUCTION, USE OF LAND AND HOUSING. WE SUPPORT KEY PRIORITIES, INCLUDING DELIVERING ESSENTIAL SERVICES AND BUILDING SAFER AND MORE JUST COMMUNITIES. NEXT SLIDE. --

ALL RIGHT. SO ABOUT 91% OF OUR SDCI FUNDING COMES FROM PERMIT FEES, WITH THE REMAINING 9% FROM THE GENERAL FUND AND OTHER SOURCES. STATE LAW REQUIRES PERMIT FEES TO REFLECT THE COST OF PROVIDING THOSE

SERVICES. AND THOSE REVENUES CAN ONLY SUPPORT FEE RELATED WORK. OUR FOCUS IS ON ADVANCING THE CITY'S HOUSING AND PERMITTING PRIORITIES, IMPROVING SPEED AND PREDICTABILITY, AND SUSTAINING CORE SERVICES

AS DEVELOPMENT ACTIVITY AND AVAILABLE RESOURCES CHANGE. ALL RIGHT. SO THIS IS OUR UPDATED MASTER USE PERMIT. SORRY, THIS IS OUR UPDATED MASTER USE PERMIT APPLICATIONS CHARTS THAT SHOWS BETWEEN 2000

AND 7 TO THE 2026 PROJECTED YEAR END AT THE FAR RIGHT. I GUESS IF YOU'RE LOOKING AT IT AND THE LEFT IS THE INTAKE VOLUME BY MASTER USE PERMIT TYPE AND SORRY, ON THE LEFT AND THEN ON THE RIGHT IS THE

FEES INVOICED. AND YOU CAN SEE THE THE RISE AND FALL OF BOTH. SO FOR 2026, OUR MASTER USE PERMIT APPLICATION VOLUMES ARE PROJECTED TO BE ABOUT 60% BELOW THE 2019 LEVELS. WHILE CONSTRUCTION PERMIT

APPLICATIONS ARE PROJECTED TO BE ABOUT 15% BELOW 2019 VOLUMES. AND, YOU KNOW, PLEASE NOTE THAT THERE'S A PRECIPITOUS DROP IN MASTER USE PERMITS, INTAKE FEES, INTAKE, AND FEES IN 2026. BOTH THE FEES

INVOICE AND THE INTAKE VOLUMES ARE BELOW BELOW THE LEVELS IN THE RECESSION PERIOD OF 2009 AND 2010. UNDER CONSTRUCTION PERMIT APPLICATIONS AGAIN, THIS SHOWS ON THE LEFT THE CONSTRUCTION, CONSTRUCTION

PERMIT APPLICATION VOLUME, AND ON THE RIGHT, THE CONSTRUCTION PERMIT VALUATIONS IN BILLIONS OF DOLLARS. CONSTRUCTION PERMIT APPLICATION VOLUMES HAVE IMPROVED SINCE 2024, BUT THE SHIFT TOWARDS SMALLER,

LOW, LOWER VALUE PROJECTS HAS LIMITED THE RECOVERY OF PERMIT FEE REVENUE. WE TOLD THE SAME STORY LAST YEAR AS WELL. ALL RIGHT. AND THEN THIS IS YOUR SLIDE. -- SO THIS IS WHERE WE GO INTO OUR

DEPARTMENT RIGHT SIZING THIS PROPOSAL REDUCES 34 FEE FUNDED POSITIONS, MOST OF WHICH ARE CURRENTLY VACANT. SO OUR STAFFING LEVELS ARE BETTER ALIGNED WITH THE WORKLOAD WE'RE SEEING BASED ON OUR CURRENT

PROJECTIONS, WE DON'T ANTICIPATE IMPACTS TO CORE PERMITTING INSPECTIONS, ISSUANCE OR OVERALL TIMELINES. WE ARE STILL RELYING ON FUND BALANCE IN THE NEAR TERM FUTURE. BUT THESE REDUCTIONS HELP SLOW

THAT DRAWDOWN AND PRESERVE SOME FLEXIBILITY TO RESTORE STAFFING. IF WORKLOAD BEGINS TO INCREASE AGAIN FOR THE FIELD POSITIONS, THE REDUCTIONS ARE CONCENTRATED IN AREAS WHERE WORKLOAD HAS DECLINED,

PARTICULARLY CASHIERING AND PAYMENT PROCESSING AND DESIGN REVIEW RELATED WORK. WE ALSO HAVE SOMEWHAT LESS CAPACITY FOR INTERNAL SPECIAL PROJECTS NEXT SLIDE. THIS IS OUR IMPLEMENTATION OF NEW

REGULATIONS. THE RENTAL REGULATION ENFORCEMENT PROGRAM HAS JUST BEEN RECENTLY ADDED. THIS PROPOSAL ADDS STAFF TO IMPLEMENT AND ENFORCE THE NEW RENTAL REGULATIONS ADOPTED UNDER ORDINANCE 127497. IN

ADDITION TO THE STAFF, THE PROPOSAL ADDS $200,000. FOR CONTRACTING WITH COMMUNITY BASED ORGANIZATIONS FOR OUTREACH AND EDUCATION. THE ADDITIONAL STAFFING WOULD SUPPORT THE HIGHER VOLUME OF CASES. WE

EXPECT, INCLUDING INVESTIGATIONS, OUTREACH, BUILDING WIDE ENFORCEMENT AND ASSISTANCE TO LANDLORDS. THE PROGRAM IS DESIGNED TO BE SELF-SUPPORTING THROUGH A NEW FEE, WITH SOME ONE TIME IMPLEMENTATION

SUPPORT INCLUDED IN 2027. THE STAFFING LEVEL IS INTENDED TO SUPPORT TIMELY AND CONSISTENT IMPLEMENTATION OF THE ORDINANCE, WITH LESS CAPACITY, WE WOULD EXPECT SLOWER CASE RESOLUTION, GROWING BACKLOGS

AND LESS CONSISTENT ENFORCEMENT THE NEXT SLIDE IS THE HOUSING OMBUDS SUPPORT. THIS PROPOSAL ESTABLISHES A HOUSING OMBUDS TO HELP LOW INCOME AND COMMUNITY DRIVEN PROJECTS NAVIGATE THE CITY'S PERMITTING

PROCESS AND IMPROVE COORDINATION ACROSS DEPARTMENTS. THE GOAL IS TO REDUCE DELAYS, IMPROVE OUTCOMES FOR COMMUNITY DEVELOPERS, AFFORDABLE HOUSING SPONSORS AND THE RESIDENTS THAT THESE PROJECTS ARE

INTENDED TO SERVE. THE POSITION IS FUNDED THROUGH THE JUMPSTART PAYROLL EXPENSE TAX FUND AND WAS INITIATED THROUGH MAYOR WILSON'S EXECUTIVE ORDER TO ACCELERATE HOUSING PRODUCTION. THE ADDED CAPACITY

IS INTENDED TO PROVIDE MORE CONSISTENT NAVIGATION AND COORDINATION FOR THESE PROJECTS. -- ALL RIGHT, SO AT SDCI, EVERY YEAR, WE REVIEW OUR FEES TO DETERMINE WHETHER ADJUSTMENTS ARE NEEDED TO MAINTAIN

COST RECOVERY. AND THAT MEANS LOOKING AT UPDATED WORKLOAD REVENUES, EXPENDITURES, STAFFING LEVELS, AND FUND BALANCE, AND DETERMINING WHETHER FEES NEED TO INCREASE OR DECREASE. LAST YEAR, WE INDICATED

THAT WE COULD BE LOOKING AT A INCREASE IN THE 17 TO 18% RANGE FOR 2027, BASED ON OUR UPDATED REVIEW, WE ARE PROPOSING A LOWER INCREASE FOR BUILDING AND LAND USE. 10.7% IN TOTAL, WHICH INCLUDES THREE,

WHICH INCLUDES THE 3.7% INFLATIONARY ADJUSTMENT. THE OVERALL FEE LEGISLATION IS PROJECTED TO GENERATE ABOUT 6.3 MILLION ANNUALLY. THESE ADDITIONAL REVENUES HELP IMPROVE COST RECOVERY, REDUCE THE NEED

TO FOR FURTHER STAFF REDUCTIONS AND SLOW THE USE OF FUND BALANCE WHILE WE CONTINUE TO ADJUST TO CHANGING DEVELOPMENT ACTIVITY FOR REFRIGERATION AND FURNACE FEES, WE MADE SIGNIFICANT REDUCTIONS BETWEEN

2020 AND 2022 IN RESPONSE TO CHANGES IN THE HEATING AND COOLING MARKET AND INSTALLATION PATTERNS. THOSE CONDITIONS HAVE SINCE CHANGED, AND THE PROPOSED INCREASE IS INTENDED TO BRING REVENUES BACK INTO

BETTER ALIGNMENT WITH THE COST OF PROVIDING THE SERVICE. EVEN WITH THE 2027 FEE INCREASE FOR THESE FOR REFRIGERATION AND FURNACE, THESE FEES WILL REMAIN WELL BELOW THEIR 2020 LEVELS. FOR, EXCUSE ME

FOR BOILER AND CONVEYANCE FEES. WE ARE IN THE THIRD YEAR OF A FOUR YEAR EFFORT TO BRING FEES TO A SUSTAINABLE LEVEL. THESE PROGRAMS HAD RECEIVED LITTLE BEYOND INFLATIONARY ADJUSTMENTS SINCE 2017, BUT

OVER TIME, THEIR ACTUAL OPERATING COSTS BECAME CLEAR AS MANAGEMENT, ADMINISTRATION AND BUSINESS PROCESSES WERE BETTER STRENGTHENED OR STRENGTHENED. THE FEES INCREASES ARE INTENDED TO BRING FEE REVENUE

INTO BETTER ALIGNMENT WITH THE CURRENT COST OF OPERATING. THOSE PROGRAMS. THE LEGISLATION ALSO ESTABLISHES THE NEW RENTAL AGREEMENT REGULATION FEE, $11 PER RENTAL UNIT, EVERY TWO YEARS, OR THE

EQUIVALENT OF 550 PER YEAR TO SUPPORT IMPLEMENTATION AND ENFORCEMENT OF THE NEW RENTAL REGULATIONS. FUND BALANCE IMPACT SLIDE. THIS CHART SHOWS THE CHANGE IN OUR OVERALL FUND BALANCE OVER TIME. WE

WERE GENERALLY BETWEEN 80 MILLION TO 100 MILLION THROUGH 2023, BUT SINCE THEN, WE'VE DRAWN DOWN THOSE BALANCES SIGNIFICANTLY AS PERMIT REVENUES HAVE DECLINED. BY THE END OF 2026, WE'RE PROJECTING AN

OVERALL FUND BALANCE OF ROUGHLY $30 MILLION. THE FEE INCREASE IS PROPOSED FOR 2027, ALONG WITH THE EXPENDITURE REDUCTIONS WE DISCUSSED EARLIER, ARE EXPECTED TO STABILIZE THE FUND BALANCE AND SLOW

FURTHER EROSION. ONE IMPORTANT DISTINCTION IS THAT THE TOTAL FUND BALANCE INCLUDES DIFFERENT FUNDING COMPONENTS WITHIN THAT TOTAL, OUR BUILDING AND LAND USE CORE STAFFING RESERVES ARE PROJECTED TO BE

NEARLY EXHAUSTED BY THE END OF 2026. AND THEN I WE HAD A SIMILAR SLIDE LAST YEAR, BUT THIS SHOWS THE IMPACT OF THE CONSTRUCTION PERMITS FOR DIFFERENT SIZED AND DIFFERENT TYPES OF PROJECTS. FOR 500

SQUARE FOOT DAD YOU IT. IT SHOWS THAT THE. THE FEE INCREASE OF THE CONSTRUCTION PERMITS WILL BE 7% ABOVE OUR ASSUMED INFLATIONARY 3.7 INCREASE, 3.7% INCREASE. SO ON. ON THE 500 SQUARE FOOT D ATU THE

CHANGE FOR ONE UNIT IS $369. MORE FOR 4500 SQUARE FOOT, FOUR UNIT TOWNHOUSE, $372 PER UNIT FOR 150,000 SQUARE FOOT, 230 UNIT APARTMENT WITH PARKING APPROXIMATELY $147. PER $147 PER UNIT. AND THESE ARE

JUST FOR ILLUSTRATIVE PURPOSES ONLY. -- THE NEXT SLIDE IS OUR POSITION CHANGES. TO SUMMARIZE, OUR POSITION CHANGES 34 POSITIONS IN OUR BUILDING AND LAND USE FEE SUPPORTED OPERATIONS TO BETTER ALIGN

STAFFING WITH CURRENT WORKLOAD AND AVAILABLE REVENUES. AS OF SEPTEMBER 1st, OF THE 34 POSITIONS THAT ARE VACANT, SEVEN ARE FILLED. SO WE ARE ANTICIPATING SEVEN LAYOFFS. THESE REDUCTIONS GENERATE

ONGOING SAVINGS WHILE PRESERVING OUR CORE PERMITTING INSPECTION AND REGULATORY SERVICES BASED ON CURRENT AND PROJECTED WORKLOAD. WE DO NOT ANTICIPATE A MATERIAL IMPACT TO PRIMARY PERMIT REVIEW,

ISSUANCE OR INSPECTION TIMELINES FOR THE FILLED POSITIONS. THE REDUCTIONS REFLECT WORK THAT IS EITHER MATERIALLY DECLINED OR IS SHIFTING AS DEPARTMENT PRIORITIES AND SERVICE DELIVERY CHANGE. QUESTIONS

-- THANK YOU. DIRECTOR. DIRECTOR. ANYTHING TO ADD? DIRECTOR OR COUNCILMEMBER? LIN. SORRY TO GIVE YOU A PAY RAISE THERE. COUNCILMEMBER LIN AS CHAIR OF THE COMMITTEE, YOU ARE RECOGNIZED. -- THANK YOU

CHAIR. THANK YOU TO OUR PRESENTERS. JUST START OFF WITH A FEW QUESTIONS. WELL FIRST FIRST, THANKS FOR ALL YOU DO. AND OBVIOUSLY THERE'S ALWAYS A LOT OF FOCUS ON ON HOW WE CAN DO BETTER WITH OUR PERMIT

REVIEWS AND SO ON. AND IT'S HARD. WE, WE IMPOSE A LOT OF REQUIREMENTS AND ASK A LOT OF YOU AND ARE FROM OUR PERMIT REVIEWERS AND, AND ALSO A LOT OF PERMANENT REVIEWERS ARE NOT UNDER YOUR DIRECT

CONTROL. A LOT OF FOLKS ARE UNDER OTHER DEPARTMENTS, YOU KNOW, S DOT SPU SEATTLE CITY LIGHT FIRE AND SO ON. AND, YOU KNOW, AND SO WHEN WE LOOK AT THE STAFFING NUMBERS, IN SOME WAYS, IT DOESN'T SHOW

THE FULL PICTURE OF THAT PERMIT REVIEW STAFF. AND I GUESS I'M NOT SURE YOU KNOW, HOW THOSE OTHER DEPARTMENTS, BECAUSE IT DIDN'T COME UP IN THOSE DISCUSSIONS AND THE UTILITIES AREN'T, AREN'T COMING

BEFORE US. BUT I DON'T KNOW HOW THE DOWN DOWNTURN IN PERMIT ACTIVITY AFFECTS SORT OF THOSE OTHER DEPARTMENTS. SO NOT A DIRECT QUESTION TO YOU, BUT JUST SORT OF A GENERAL PONDERING. BUT IF WE LOOK AT

SLIDE FOUR AND THEN FIVE, JUST IN TERMS OF THE MUPS AND, YOU KNOW, WE THINK ABOUT CONSTRUCTION ACTIVITY AND THE OBVIOUSLY ON HOUSING, JUST HAVING HEARING FROM THE OFFICE OF HOUSING, YOU KNOW, THE

GREAT NEED FOR ADDITIONAL SUPPLY, MARKET RATE, THE GREAT NEED FOR MORE AFFORDABLE HOUSING, YOU KNOW, ALL THE COROLLARY IMPACTS THAT GO ALONG WITH CONSTRUCTION, WHETHER IT'S PERMIT FEES. YESTERDAY, WE

HEARD FROM SDOT. THERE'S LESS STREET USE FEES BECAUSE THERE'S LESS CONSTRUCTION ACTIVITY HAPPENING TO PAY FOR THOSE STREET USE FEES, SALES TAXES EMPLOYMENT AND SO ON. BUT, YOU KNOW, I THINK YOU HAVE

SDCI HAS THIS UNIQUE SORT OF INSIGHT INTO OUR ECONOMY BECAUSE YOU SEE EARLY ON BEFORE, YOU KNOW, SOMEBODY BREAKS GROUND, THERE'S YEARS OFTEN OF, YOU KNOW, PERMIT REVIEWS THAT HAPPEN. AND SO JUST COULD

YOU DESCRIBE IN GENERAL KIND OF WHAT'S HAPPENING IN THE PERMIT? IS THERE A CHANGE IN TYPES OF THINGS THAT PEOPLE ARE? I MEAN, OBVIOUSLY WE'RE NOT DOING OFFICE. HAVEN'T BEEN DOING THAT FOR A WHILE, BUT

COULD YOU JUST GENERALLY DESCRIBE WHAT'S HAPPENING WITH PERMIT ACTIVITY? -- YEAH. THANK YOU. COUNCILMEMBER LIN IS VERY CONCERNING TO US IN THE DEPARTMENT. WHEN WE SEE THE SCOPE AND THE VALUATION OF

THE PROJECTS DO NOT MEET WHAT THEY WERE IN THE THE BOOM YEARS AND THE THE TYPES OF PROJECTS ARE SMALLER, LESS COMPLEX, AND THEY HAVE, YOU KNOW, LESS VALUE ADDED TO OUR PERMIT FEE COLLECTION ASPECT.

WE'RE WE'RE STRUGGLING RIGHT NOW WITH THAT AS WE'RE UNDERNEATH THE RECESSION LEVELS FOR, FOR THE PERMIT FEE INCOME. SO THAT IS VERY CONCERNING WITH THE STAFFING LEVELS THAT WE'RE CURRENTLY MANAGING OR

STAFFING UP WITH IT. WE WOULD ANTICIPATE SOME SORT OF SLOW INCREASE IN RECOVERY, WHICH I CAN HAVE MY CHIEF ECONOMIC ECONOMIST COME UP HERE AND GIVE YOU MORE OF A DETAILED BRIEFING ON. BUT AT THIS

POINT IN TIME, YOU KNOW, THIS IS THIS IS SOMETHING THAT WE'RE TRYING TO TRYING TO WORK AROUND AND ANTICIPATE WHEN. BUT AT THIS POINT, WE'RE TRYING TO DO WHAT'S BEST FOR THE TAXPAYERS AND, AND PRESERVE

THE BALANCE OF THE FUND BALANCE THAT WE HAVE LEFT. SO. -- THANK YOU. AND CERTAINLY, YEAH, IT'S PRETTY ALARMING AND CONCERNING ON MANY DIFFERENT LEVELS. YOU KNOW, THE REAL ESTATE, THERE'S ALWAYS CYCLES

AND THE REAL ESTATE WORLD. CAN YOU TALK ABOUT SORT OF HOW YOUR PLANNING TO MANAGE THIS CURRENT DOWNTURN? YOU KNOW, HOW YOU'VE MANAGED STAFFING AND PRIOR DOWNTURNS? I HEARD YOU SAY THAT, YOU KNOW,

THERE'S SOME RESERVES. SO IF THE PERMITTING STARTS TO TICK UP AND CERTAINLY, YOU KNOW, THERE'S TALK ABOUT THINGS LIKE THE MH AYE ACCELERATOR AND HOPING TO GET SOME PERMITS PULLED AND PEOPLE BUILDING

AGAIN. BUT COULD YOU JUST TALK ABOUT SORT OF HOW YOU'RE ANTICIPATING TO, TO MANAGE BOTH THE DOWN CYCLE, BUT ALSO IF, IF WE'RE ABLE TO GET SOME CONSTRUCTION GOING AGAIN? -- THANK YOU. THAT QUESTION IS

SOMETHING THAT WE ARE WORKING ON. WE'RE CONSTANTLY LOOKING AT THE PERMIT VOLUMES. AND, AND HOW WE'RE CAN INCREASE OUR CAPACITY WITH LESS STAFF MEMBERS. WE'RE GOING THROUGH A LOT OF PROCESS CHANGES

THAT WERE WERE INCLUDING ALL OF OUR DIRECTORS IN THE, IN PROCESS CHANGE MANAGEMENT. THERE'S THINGS ALONG THE LINE THAT MAYBE ARE, WERE BEING VETTED OUT BY THE STATE. AND SOME OF THE REGULATIONS AND

SOME OF THE DESIGN REVIEW ASPECTS ARE BEING, YOU KNOW, KIND OF DEREGULATED ALMOST IN THIS ASPECT FOR HOUSING. THE ONE THING THAT WE'RE TRYING TO CREATE IS A, WITH EXECUTIVE ORDER ON HOUSING IS TO

INCREASE CAPACITY AND GETTING, GETTING THE, THE PROJECTS THAT ARE THAT WE CAN KIND OF SKIM OFF THE TOP. AND THE SIMPLEST OF THE PROJECTS AND GET THEM OUT THE DOOR RESPONSIBLY, FASTER. SO THAT'S WE'RE

WORKING ON A LOT OF THOSE AREAS -- THANK YOU FOR THAT. AND CERTAINLY SUPER EXCITED ABOUT THE HOUSING OMBUDS. CERTAINLY EXCITED ABOUT ANY ADDITIONAL STREAMLINING WE CAN DO. I KNOW IT CAN JUST BE A

LITTLE BIT OF A BITTER PILL FOR, FOR SOME OF OUR HOUSING DEVELOPERS TO SWALLOW JUST TO, YOU KNOW, HAVE TO GO THROUGH LENGTHY PERMITTING AND THEN ALSO TO PAY THOSE FEES. AND, YOU KNOW, ANYTHING WE CAN

DO, I MEAN, I KNOW WE'VE TAKEN EFFORTS, FOR EXAMPLE, WITH THE ADUS TO, YOU KNOW, HAVE PRE-APPROVED. AND AS YOU MENTIONED, YOU KNOW, WE HAVE TO HAVE MORE OBJECTIVE STANDARDS FOR DESIGN REVIEW COMING

FROM THE NEW STATE LAW. WE'VE DONE THINGS LIKE RAISING THRESHOLD EXEMPTIONS TO, TO MINIMIZE THE IMPACTS OF THAT ENVIRONMENTAL REVIEW THAT JUST WEREN'T PROVIDING SORT OF REAL BENEFIT TO US BECAUSE WE

HAVE, YOU KNOW, STRONG STANDARDS IN OUR CODES. AND, AND THERE'S JUST IT WAS REDUNDANT. SO ANYTHING WE CAN DO TO REDUCE THOSE REDUNDANCIES TO, TO ALLOW FOR FASTER AND LESS COSTLY PERMITTING PROCESS,

CERTAINLY, AND VERY SUPPORTIVE OF. AND I SEE SOMEBODY WANTING TO CHAT. -- SO I JUST WANTED TO, TO ADD ON THIS ON THIS THEME, THE MAYOR'S OFFICE IS LEADING A INTER-DEPARTMENTAL TEAM TO REALLY FOCUS ON

SOME OF THESE THINGS. THEY HAVE ALL THE BIG DEPARTMENTS INVOLVED. SDCI, OF COURSE, DEPARTMENT OF TRANSPORTATION, CITY LIGHT, PUBLIC UTILITIES, THE FIRE DEPARTMENT, AND ONE OF THE GOALS OF THIS IS SORT

OF TO ONE, TO CREATE END TO END VISIBILITY. THIS WAS A LIKE I WORKED, I STARTED AS A LAND USE PLANNER. SO THIS IS SORT OF WHERE I STARTED MY CAREER IN THE PUBLIC SECTOR. AND NOW HERE I AM THE BUDGET

DIRECTOR. BUT THIS, THIS WAS SURPRISING TO ME TO LEARN THAT CURRENTLY APPLICANTS NEED 30 PLUS PERMITS FROM EIGHT DIFFERENT DEPARTMENTS TO BUILD HOUSING IN THE CITY. SO THAT IS ONE OF THE AREAS THAT

ARE REALLY BEING LOOKED AT, INCLUDING REALLY FOCUSING ON STREAMLINING THE SPEED OF RIGHT OF WAY AND UTILITY PERMITTING, AS THOSE ARE KIND OF THE LONGEST DURATION. SO THERE IS SOME WORK UNDERWAY THAT

IS THE SDCI IS A KEY PARTNER IN, BUT IS SOMEWHAT LIKE, AS YOU MENTIONED, SOME OF THIS IS OUTSIDE OF THEIR THEIR CONTROL. -- THANK YOU. AND THANK YOU, CHAIR. THAT'S ALL I HAVE FOR NOW. -- THANK YOU.

COUNCILMEMBER LIN. I DON'T SEE ANY OTHER HANDS UP. SO IF YOU DO WANT TO SPEAK NOW, AT ANY POINT DURING THIS COMMITTEE, NOW IS THE TIME TO GET IN LINE. COUNCILMEMBER FOSTER FOLLOWED BY COUNCILMEMBER

KETTLE. -- THANK YOU SO MUCH, CHAIR. I APPRECIATE THAT. I WANTED TO JUST TAKE A SECOND TO FIRST EXPRESS MY APPRECIATION TO THE MAYOR'S OFFICE FOR THE HOUSING OMBUDSMAN POSITION. I KNOW COUNCILMEMBER

LIN JUST SPOKE TO IT, BUT I DO THINK I'M REALLY LOOKING FORWARD TO SEEING THE IMPACT THAT THAT POSITION IS GOING TO HAVE FOR OUR NONPROFIT HOUSING PROVIDERS AS THEY SEEK TO NAVIGATE THE 30 PLUS

PERMITS IN THE SYSTEM AND OTHER WORK THAT I KNOW YOU ARE WORKING ON CHANGING AND MAKING EASIER TO NAVIGATE, BUT I AM REALLY LOOKING FORWARD TO THAT. I THINK IT'S GOING TO BE VERY MEANINGFUL FOR FOLKS.

I WANTED TO ASK, JUST TURNING TO SOME OF THE IMPLEMENTATION IN TERMS OF THE THE POSITIONS AND THE FUNDING FOR THE IMPLEMENTATION OF THE, THE RENTAL, I'M JUST GONNA CALL IT JUNK FEES, AS WE'VE BEEN

CALLING IT. BUT CAN WE JUST CAN YOU SPEAK A LITTLE BIT TO THE HOW YOU WORK TO DETERMINE THE APPROPRIATE SIZE OF STAFFING TO SUCCESSFULLY IMPLEMENT THAT ORDINANCE -- THIS IS SOMETHING THAT I THINK,

JEFF OVER HERE COULD ANSWER. -- JEFF, IF. -- I'M HAPPY TO -- [LAUGHTER] -- DO IT. YEAH. IF WE DON'T HAVE THE RIGHT. OH, GO AHEAD, CHAIR, I APOLOGIZE. -- USUALLY WE ONLY HAVE TWO. WE HAD A SPECIAL

EXCEPTION THIS YEAR WITH HSD TO HAVE CHRIS CLASEN JOIN US. JEFF, IF YOU WOULD LIKE TO JOIN US AT THE TABLE, YOU ARE MORE THAN WELCOME. -- AND I COULD I COULD -- [LAUGHTER] -- GIVE IT A SHOT. -- I'M

SURE I'M HAPPY TO TAKE IT IN THE ONE NOTE, IF THAT'S EASIER. -- WHATEVER IS. IF JEFF, YOU'RE HERE, IF YOU WANT TO SPEAK, COME UP NOW. OTHERWISE, WE'RE MOVING ON. NOW IS DECISION TIME. WHAT ARE WE

DOING? MOVING. THANK YOU. AND COUNCILMEMBER FOSTER, TAKE IT AWAY. -- JEFF SDCI, CODE COMPLIANCE DIRECTOR I MEAN, TO BE HONEST, WE DON'T. WE DON'T KNOW EXACTLY. WE BOTH BASICALLY LOOKED AT PAST

EXPERIENCE WITH IMPLEMENTATION OF OTHER NEW REGULATIONS, LIKE WHEN ECONOMIC DISPLACEMENT RELOCATION ASSISTANCE CAME IN AND SAID, WHAT, WHAT, HOW WAS THAT IMPACT ON OUR STAFFING AND OUR WORKLOAD AND

YOU KNOW, TOOK OUR BEST PROJECTION OF WHAT WE THOUGHT THIS WOULD LOOK LIKE. THAT'S REALLY ABOUT ALL THAT COMES TO. -- THANK YOU. AND I'M HAPPY TO DO. I THINK WE'LL TAKE THIS ONE OVER TO THE ONE NOTE

FOR FOLLOW UP. I JUST OBVIOUSLY IS REALLY EXCITED TO MAKE SURE THAT WE IMPLEMENT THIS AND WE IMPLEMENT IT WELL AND WANT TO MAKE SURE WE HAVE THE APPROPRIATE STAFFING LEVELS AND TAKE INTO CONSIDERATION

ANYTHING THAT WE WE NEED TO BE LOOKING AT THERE. THE OTHER QUESTION THAT I HAD, I THINK I HEARD A COMMENT EARLIER. THANK YOU. JEFF, SORRY TO HAVE YOU COME UP FOR ONE BRIEF QUESTION, BUT THE THE OTHER

COMMENT THAT I THINK I HEARD FROM YOU, DIRECTOR, WAS ABOUT GETTING THE PERMIT COSTS CLOSER TO WHERE THEY WERE IN 2020. OR YOU SORT OF SPOKE TO THIS PRE-PANDEMIC LEVELS. CAN YOU ADD JUST ANY, ANY

CLARITY OR COLOR THERE IN TERMS OF SORT OF OUR OVERALL COSTS? THERE? -- I BELIEVE YOU MAY HAVE OR LET'S SEE, WHERE WERE WE? I MAY HAVE BEEN REFERRING TO THE MECHANICAL AND REFRIGERATION FEE ONLY.

OKAY. BECAUSE WE HAD CUT THAT SIGNIFICANTLY, ABOUT 50% BECAUSE TECHNOLOGY HAD CHANGED AND INSTALLATION PATTERNS HAD CHANGED. AND WE WERE JUST STARTING TO COLLECT HEAVILY ON THAT, ALMOST OVER

COLLECTING. AND SO WE CUT BACK ON THOSE FEES SIGNIFICANTLY. AND NOW CURRENTLY WE ARE SEEING THOSE COST CENTERS DECLINE. SO IN ORDER TO MAINTAIN THE COST OF, YOU KNOW, RECOVERING THE COST OF PERFORMING

THOSE INSPECTIONS AND THOSE REVIEWS, WE JUST NEED TO INCREASE IT SOME MORE TO KEEP KEEP UP WITH IT. BUT WE WERE AFRAID OF OVER COLLECTING, SO WE HAD TO REDUCE THE, THE FEES AT THAT TIME. AND THAT WAS

JUST FOR THOSE TWO COST CENTERS. -- THANK YOU SO MUCH. THANK YOU. CHAIR. -- THANK YOU, COUNCILMEMBER FOSTER COUNCILMEMBER KETTLE. IF OTHERS WANT TO SPEAK, PLEASE RAISE YOUR HAND NOW. THANK YOU. --

THANK YOU. CHAIR, I JUST REALLY QUICK. THANK YOU, MR. STEELE AND MR. MITCHELL, AND FOR JOINING THE TABLE, MR. TALENT AS WELL. LATE BREAKING ADDITION LOOKING AT THE BRIEFING AND YOU KNOW, OBVIOUSLY A

LOT OF THIS IS THERE'S A BIT OF A IT IS WHAT IT IS SITUATION IN TERMS OF THE STAFFING. AND YOU KNOW, HOW MANY THE PERMITS, THE MONEY COMING IN AND SO FORTH. IT'S JUST THE SYSTEM. SO I APPRECIATE THE

RIGHT SIZING POINTS THAT YOU'RE TALKING ABOUT. GIVEN THE CONDITIONS. SO THANK YOU FOR THE WORK THAT'S BEEN DONE ON THAT PART. THE OMBUDS SUPPORT PIECE IS SUPER IMPORTANT. I WOULD SAY IT'S NEEDED FOR

EVERYBODY, NOT JUST AFFORDABLE HOUSING. ANYTHING THAT CAN HELP. AND THIS KIND OF GOES TO THE BIGGER PICTURE PIECE IN TERMS OF THE MESSAGES THAT WE'RE SENDING, YOU KNOW, HAVING A STRONG OMBUDS, YOU

KNOW, SOME TYPE OF ASSIST PROGRAM TO NAVIGATE, I THINK, YOU KNOW, SETS THE TONE. AND I THINK THE TONE IS REALLY IMPORTANT IN THIS CITY. AND IT'S NOT NECESSARILY BEEN WHERE IT NEEDS TO BE. BUT I THINK

WE COULD DO BETTER. AND BY THE WAY, THIS OMBUDS PIECE COULD BE FOR ANY NEW REGULATION IN TERMS OF THE DIFFICULTIES THAT IT MAY OR MAY NOT PRESENT. SO THIS KIND OF APPROACH AND BUT I BRING THE TONE

PIECE UP BECAUSE I'VE HAD MORE THAN ONE CONVERSATION WITH A DEVELOPER WHO WAS LOOKING TO ADD TO SLIDES FOUR AND FIVE IN TERMS OF APPLICATIONS. AND SO FORTH, THAT THEY WANTED TO GO AHEAD, BUT FUNDERS

WEREN'T GOING TO INVEST IN SEATTLE BECAUSE, YOU KNOW, THE TONE WAS BAD. THE MESSAGING WAS BAD. AND I THINK WE SHOULD OWN IT. I THINK WE SHOULD OWN IT AS A COUNCIL. I THINK WE SHOULD OWN AS CITY HALL

OVERALL, BECAUSE I'VE HAD TOO MANY CONVERSATIONS WHERE YOU KNOW, I'M DISTRICT SEVEN, WE HAVE THE 21 BOSTON SAFEWAY PROJECT, 325 APARTMENTS THAT ARE THERE NOW. WE COULD HAVE EASILY HAD A STARTUP IN

MAGNOLIA AND ONE IN CAPITOL HILL. VERY SIMILAR PROJECTS, BUT THEY'RE DEAD. WHY ARE THEY DEAD? BECAUSE THE TONE AND WHAT WE'VE DONE AS A CITY GOVERNMENT AND WHAT WE REALLY NEED IS STABILITY. WHAT WE

NEED IS REALLY PREDICTABILITY, SAFETY IS REALLY IMPORTANT, AND POSITIVITY AND LEADERSHIP. I'M JUST SAYING THIS OUT LOUD. OBVIOUSLY, I'M NOT EVEN GOING TO ASK FOR AN ANSWER BECAUSE DIRECTOR PANUCCI IS

REPRESENTING THE BUDGET ASPECTS OF THIS. YOU KNOW, THE ONES AND ZEROS, THE NUTS AND BOLTS. YOU'RE ON THE BACK END. BUT WE AS LEADERS OF THE CITY, ACROSS THE EXECUTIVE AND THE LEGISLATIVE BRANCHES NEED

TO DO BETTER BECAUSE AT THE END OF THE DAY, YOU KNOW WHAT THAT TRANSLATES TO? LET'S JUST SAY THEY'RE HAVING 325 APARTMENTS EACH, JUST LIKE THE 21 BOSTON QUEEN ANNE PROJECT. THAT'S 650 UNITS GONE.

GONE. AND THEY COULD HAVE EASILY BEEN THERE, BUT THEY'RE NOT THANK YOU. THANK YOU, CHAIR. -- THANK YOU. COUNCILMEMBER KETTLE DOES THE. SO FOR EVERYONE, THE LAST TWO GROUPS THAT ARE PRESENTING TODAY,

I'M GOING TO FACILITATE. I WILL ALWAYS CALL ON THE COMMITTEE TABLE. YOU DON'T NEED TO INTERRUPT. COMMITTEE TABLE. DO YOU HAVE ANYTHING TO ADD. -- OH, OKAY. SURE. I JUST WANTED TO SAY THAT I'M THIS

OMBUD POSITION IS EXCITING TO ME TOO. I THINK I'VE SEEN A LOT OF SUCCESS FROM THE SMALL BUSINESS PERMITTING AND CULTURAL SPACE PERMITTING NAVIGATOR THAT WE HAVE. I LIVE DOWNTOWN AND I'VE EVER SINCE WE

REALLY IMPLEMENTED THAT POSITION, I'VE SEEN DOWNTOWN CHANGE A LOT WITH A LOT OF ACTIVE USE OF VACANT STOREFRONTS AND EVERYTHING. AND I THINK IT'S WORKED REALLY WELL. SO I THINK THIS HOUSING OMBUD HAS

A LOT OF POTENTIAL. -- THANK YOU. COUNCILMEMBER KETTLE ANY LAST WORDS? WE'RE GOING TO MOVE ON TO COUNCILMEMBER RINCK. THANK YOU. -- THANK YOU, CHAIR STRAUSS. AND I WANT TO THANK YOU ACTUALLY FOR

BRINGING UP THAT PERMITTING POSITION FOR SMALL BUSINESSES. I ACTUALLY HAD A SIT DOWN WITH A NUMBER OF OUR LOCAL RESTAURANTS EARLIER THIS YEAR, AND I ASKED THEM, WHAT IS ONE THING THAT THE CITY IS

DOING WELL? AND PEOPLE ACTUALLY LIFTED UP THIS PARTICULAR PERMITTING PROGRAM AS ONE THING THAT HAS REALLY DELIVERED MEANINGFUL RESULTS, AND THEY WOULD LOVE TO SEE REPLICATED AND EXPANDED UPON. SO I'M

GLAD THAT CAME UP ORGANICALLY TO BE ABLE TO GIVE THAT OPPORTUNITY TO HIGHLIGHT, AND I WANT TO THANK THIS OPPORTUNITY TO THANK SDCI FOR WORKING WITH MY OFFICE TO EXPLORE TENANT RELOCATION ASSISTANCE

OPTIONS, AND HOW WE CAN ENSURE THAT WE'RE MEETING THE NEEDS OF OUR RENTER COMMUNITY, WHO MAKE UP THE MAJORITY OF THOSE LIVING IN SEATTLE. AND IN ADDITIONAL. THANK YOU FOR BEING SO RESPONSIVE. WHEN MY

OFFICE RECEIVES DIRECT CONSTITUENT PERMITTING AND CONSTRUCTION QUESTIONS OR FEEDBACK. SPECIAL SHOUT OUT TO SDCI LIAISON CHRISTINA FOR BEING INCREDIBLY RESPONSIVE AND HELPFUL, ESPECIALLY AS WE'RE

DIVING INTO THESE COMPLEX ISSUES. I MAY NOT ALWAYS LOVE THE ANSWER I GET, BUT I APPRECIATE GETTING AN ANSWER. SO THANK YOU AND YOUR TEAM FOR ALL OF THAT WORK. A COUPLE OF QUESTIONS FOR TODAY, AND I

THINK A COUPLE OF THE QUESTIONS THAT HAVE ALREADY BEEN ASKED HAVE TOUCHED ON THESE POINTS, BUT I WANT TO FOCUS IN ON THESE POINTS AGAIN, JUST FOR THE PURPOSES OF CLARITY MOVING FORWARD, PARTICULARLY

GIVEN THE CHALLENGING ECONOMIC CIRCUMSTANCES WE FIND OURSELVES IN. I KNOW I'VE SPOKEN AT LENGTH ABOUT MY CONCERN ABOUT THE DROP OFF IN PERMITS ACROSS THE CITY, AND SO MY MY QUESTION IS, CONSIDERING

THE CURRENT ECONOMIC ENVIRONMENT CREATING A GREAT BARRIER FOR DEVELOPMENT, HOW CONFIDENT IS SDCI THAT ADDITIONAL STAFFING CUTS AND FREE FEE INCREASES WON'T BE NECESSARY AGAIN IN THE COMING YEARS? --

TO -- THANK YOU FOR THAT QUESTION. COUNCILMEMBER RINCK. I BELIEVE THAT WE'RE CAUTIOUSLY OPTIMISTIC THAT WE'VE REACHED A POINT WHERE WE DON'T HAVE TO SHED ANY MORE POSITIONS. WE ARE ARE HOLDING ON TO

THE FUND BALANCE, AND IT'S WITH ITS CURRENT REQUESTS FOR THE 7% FEE INCREASE, IT WILL ALLOW THE STAFFING TO BE MAINTAINED THROUGH THE NEXT TWO YEARS. AT THAT LEVEL. NOW, ALL BETS ARE OFF IF THERE'S

NOT SOME SPURRING OF THE ECONOMIC ENGINE THAT DRIVES THE CONSTRUCTION INDUSTRY. SO WE'RE BUT WE'RE FAIRLY CONFIDENT WE'RE WE'RE IN A GOOD POSITION. THE WAY WE STRUCTURED IT -- THANK YOU FOR SPEAKING

TO THAT POINT AND UNDERSTANDING. WE ARE LOOKING AT STAFFING REDUCTIONS. I GUESS I'M WONDERING IF YOU CAN SPEAK TO HOW IT'S POSSIBLE THAT STAFFING REDUCTIONS AT SDCI WON'T IMPACT PERMITTING TIMELINES

FOR CURRENT PROJECTS ACROSS THE CITY -- OUR CURRENT STAFFING IS IN LINE WITH THE DEMAND AND THE PROCESSES THAT WERE WERE DECREASING FOR SOME CAPACITIES. WE'RE ABLE TO INCREASE ANOTHER CAPACITY. SO

WE'RE WE'RE LITERALLY DOING MORE OVERALL GETTING CORRECTION CYCLES REDUCED. SO THAT WAS ONE OF THE COMPONENTS OF THE THE EXECUTIVE ORDER FROM THE LAST ADMINISTRATION. WITH THE PACT, WE'VE TAKEN A

NUMBER OF THOSE INSTANCES AND. AND THEY BECAME OUR BUSINESS MODEL. AND WE'RE WE'RE WE'RE GENERATING PROJECTS WITH FEWER HANDS ON THE PROJECT. SO THEY WILL BE ABLE TO INCREASE OUR CAPACITY -- I, I JUST

WANTED TO ADD THAT WE HAVE, WE CURRENTLY HAVE 11 UNFUNDED VACANT POSITIONS FROM 2025 AND 2026 THAT WE CAN UTILIZE ALONG WITH OUR CONTINGENT BUDGET AUTHORITY TO STAFF UP VERY QUICKLY. AND THAT'S VERY

IMPORTANT FOR SOUND TRANSIT THREE AND HARBORVIEW -- EXCUSE. -- ME. -- I THINK ON THIS QUESTION, IT'S ALSO IMPORTANT TO NOTE THAT MOST OF THE POSITIONS THAT ARE BEING ELIMINATED ARE VACANT AND HAVE

BEEN VACANT FOR SOME TIME, BECAUSE SDCI HAS BEEN VERY CAREFULLY MONITORING THEIR LIKE SPEND DOWN OF THEIR FUND BALANCE. SO I THINK THAT'S ANOTHER INDICATOR AND NOT, YOU KNOW, SOME OF THESE POSITIONS

ARE LAND USE PLANNER POSITIONS. THAT'S, YOU KNOW, RELATED TO DESIGN REVIEW AND THAT THAT SORT OF THING OR ADMINISTRATIVE POSITION. SO I THINK IT'S JUST LIKE FLAGGING THAT MOST OF THIS IS ACTUALLY

THEIR CURRENT STAFFING LEVELS. -- THANK YOU. THAT'S HELPFUL TO JUST ILLUSTRATE, AGAIN, I HAVE AN OUTSTANDING CONCERN. IF WE WERE LOOKING AT JUST STAFFING REDUCTIONS AT ANY LOSS IN EXPERTISE, JUST THE

FLUCTUATIONS AND UNCERTAINTY, OF COURSE, FACING DEVELOPMENT IN THE CITY MAKE FOR A CHALLENGE, OF COURSE, FOR PLANNING FOR THE DEPARTMENT. SO RECOGNIZING THOSE POINTS, I APPRECIATE THAT RESPONSE. AND I

SUPPOSE I'LL CLOSE WITH THIS QUESTION. I THINK IT'S BEEN SPOKEN TO ALREADY, BUT I'LL JUST ASK IT AGAIN, JUST SO I'M CRYSTAL CLEAR. CAN YOU SPEAK TO YOUR CORE STAFFING RESERVES AND WHAT RISK WE'RE IN

WITH THE FUND SET TO BE DEPLETED? -- COUNCILMEMBER RINCK, AYE. MAY I ASK THIS QUESTION IN A BUNCH OF DIFFERENT WAYS? IN JUST A SECOND? -- I'M HAPPY WITH THAT. -- FANTASTIC. SORRY, COUNCILMEMBER RINCK

JUST STOLE MY ONLY QUESTION. I WAS GOING TO KEEP IT. -- SAVE SOME FOR -- [LAUGHTER] -- THE CHAIR. THANK YOU CHAIR. THAT CONCLUDES MY QUESTIONS, ACTUALLY. THANK YOU SO MUCH AGAIN TO SDCI FOR THE WORK

YOU DO. LOOKING FORWARD TO CONTINUED PARTNERSHIP. THANK YOU CHAIR. -- THANK YOU FOR YOUR PARTNERSHIP. COUNCILMEMBER RINCK. IF WE CAN TURN TO PAGE 694 IN THE BUDGET BOOK. SO THIS IS COMING TO KIND OF

WHAT COUNCILMEMBER FOSTER WAS TALKING ABOUT, GENERAL FUND, ET CETERA. WE ARE LOOKING AT THE CONSTRUCTION AND INSPECTIONS FUND. SO COLLEAGUES, THIS IS WHAT COUNCILMEMBER RINCK WAS JUST. THE CORE

STAFFING IS ONE LINE WITHIN THIS ENTIRE FUND. IF WE COULD WALK THROUGH THIS AND YOU COULD HELP ME UNDERSTAND, A LOT OF IT IS CORRELATED TO YOUR POWERPOINT JUST NOW OF BOILERS BUILDING DEVELOPMENT,

ELECTRICAL GRANT REVENUES, INTEREST, JUST IF YOU COULD GIVE ME JUST A TEN SECOND, WE'RE GOING TO WALK THROUGH EACH OF THESE, STARTING WITH CONTINGENT BUDGET AUTHORITY OFFSET. CAN YOU HELP US

UNDERSTAND THE PURPOSE AND WHAT THIS DOES? -- SURE. SO THE TOP IS THE SOURCES OF FUNDS INCLUDES THE CONTINGENT BUDGET AUTHORITY OFFSET, WHICH IS BASICALLY JUST AN OFFSET FOR THE BUDGETED CONTINGENT

BUDGET AUTHORITY. THAT'S UNDER THE EXPENDITURES. SO IT'S NOT REALLY A REVENUE LINE, BUT IT'S A BUDGET LINE. AND IF WE DIDN'T HAVE THAT OFFSET, WE WOULD NEED TO INCREASE OUR FEES DRAMATICALLY BECAUSE

WE'D HAVE $8 MILLION MORE IN EXPENDITURE THAT WE LIKELY WON'T SPEND CONTINGENT BUDGET AUTHORITY WE ONLY ACCESS ONCE EVERY I DON'T KNOW, BETWEEN 5 AND 10 YEARS. IT DOESN'T HAPPEN A LOT, BUT WE NEED IT

FOR WHEN IT WHEN WE DO ACCESS IT, CAN WE. -- PAUSE RIGHT THERE? DIRECTOR PANUCCI, CAN YOU HELP US A LITTLE BIT? -- YEAH. -- I'LL JUST MAYBE TRANSLATE THAT A LITTLE BIT IN, IN MAYBE MAYBE PLAINER

LANGUAGE, BUT I'M NOT SURE ESSENTIALLY WHAT THAT CONTINGENT BUDGET BUDGET AUTHORITY DOES IS IF PERMIT VOLUMES INCREASE OR PERMIT VALUES INCREASE, WE ASSUME AN INCREASE IN REVENUE. AND AND THAT WOULD

ALLOW US TO QUICKLY FILL VACANT POSITIONS FOR THEM TO STAFF BACK UP. SO YOU SEE A CONTINGENT REVENUE ASSUMPTION AND CONTINGENT EXPENDITURE THAT BALANCE EACH OTHER OUT. IS THAT HELPFUL? -- SO THIS IS

THE EMERGENCY RELEASE VALVE THAT WHEN IF PERMITS COME IN, YOU TAKE THAT FEE. YOU DON'T HAVE TO COME BACK TO BUDGET IN A YEAR FROM NOW, YOU CAN START HIRING UP IMMEDIATELY. IS THAT CORRECT? -- THAT

THAT IS CORRECT. THAT'S THE EMERGENCY RELEASE VALVE THAT WE ALL HOPE TO BE ABLE TO PULL SOMETIME IN THE NEAR FUTURE. -- AND THEN JUST GENERALLY THE NEXT SET, THE BOILER BUILDING, ELECTRICAL ELEVATOR,

LAND USE, NOISE, REFRIGERATION AND FURNACE, THESE ARE ALL BASED ON THOSE TYPES OF PERMITS EXPLICITLY. IS THAT CORRECT? -- IT IS, YEAH. WE CALL THEM COST CENTERS BECAUSE WE CAN'T WE CAN'T USE

ELECTRICAL FEES TO PAY FOR THE WORK THAT THE BUILDING PERMIT STAFF DO. THEY HAVE TO BE USED FOR ELECTRICAL INSPECTORS. SO WE KEEP A WE KEEP TRACK OF THAT. AND SO WITH BUILDING DEVELOPMENT IS OUR

LARGEST COST CENTER, OUR LARGEST. IT FUNDS ABOUT 55 TO 60% OF OUR DEPARTMENT. LAND USE IS A VERY. IT'S NOT AS LARGE, BUT IT'S VERY VOLATILE. AND SO WE REALLY MONITOR THOSE TO THE CLOSEST BECAUSE THEY

ARE ECONOMICALLY VOLATILE BASED ON WHAT'S HAPPENING IN THE DEVELOPMENT CYCLE, MORE SO THAN ELECTRICAL BOILER ELEVATOR REFRIGERATION. -- BUILDING A BUILDING IS A BIGGER THING THAN UPGRADING TO SOLAR.

GETTING A BATTERY PACK OR ADDING A NEW PANEL BECAUSE YOUR DRYER IS NOW MORE POWERFUL THAN 1950s. IS THAT GENERALLY WHAT WE'RE TALKING ABOUT? YEAH. AND THEN THANK YOU FOR GOING THROUGH THIS WITH ME.

AND SO EACH OF THESE LINES LISTED ARE ESSENTIALLY THE REVENUE, THE COST CENTER, AS YOU CALL THEM. WE GET THE MONEY IN FOR THE PERMIT BASED ON THIS MONEY WE CAN HIRE AND PAY OUR PERMIT. REVIEWERS. AND

THEN A NEW ITEM, A NEW COUPLE LINE ITEMS HERE ARE FEE CHANGES BASED ON ALL OF THESE, WITH THE LAST ONE BEING THE RENTAL REGULATORY FEE IS AM I CORRECT IN YOUR POWERPOINT? THIS IS WHEN YOU WERE TALKING

ABOUT THE JUNK FEES ORDINANCE AND ENFORCEMENT THERE. IS THAT CORRECT? YEAH. FANTASTIC. SO NOW WE COME TO EXPENDITURES WHERE YOU CAN SEE HOW WE ARE SPENDING OUR MONEY, AND THEN DOWN AT THE BOTTOM IS

WHERE WE HAVE CORE STAFFING AND A PLANNING RESERVE. AND THIS IS WHERE I'D LIKE TO GET IN WITH YOU BECAUSE I'VE SEEN IN PAST YEARS, WE HAVE ALSO HAD IN 2026, JUST LAST YEAR, WE HAD A PROCESS

IMPROVEMENTS IN TECHNOLOGY. WE HAD TENANT IMPROVEMENTS AND AN OPERATING RESERVE AS WELL. HOW HAVE THOSE THREE RESERVES CHANGED? -- YEAH. SO THIS FINANCIAL PLAN, IT SHOWS THAT WE HAVE BEEN DRAWING DOWN

OUR RESERVES OVER THE LAST SEVERAL YEARS AS PERMIT REVENUES HAVE DECLINED. THOSE RESERVES WERE ESTABLISHED TO HELP US MAINTAIN STAFFING AND SERVICE LEVELS THROUGH DOWNTURNS AND THE DEVELOPMENT CYCLE.

AND WE HAD SET THOSE ACCORDING TO WHAT WE WENT THROUGH IN 2009 AND TEN. THAT'S AT THAT LEVEL THAT COULD GET US THROUGH ANOTHER GREAT RECESSION TYPE OF DOWNTURN. BUT THE DOWNTURN WE'RE IN NOW IS KIND

OF STRANGE. IT'S LASTING A LOT LONGER. IT'S NOT REALLY SHARP. SO THE PLAN, IT REALLY REFLECTS THE CONTINUED DRAWDOWN AS WELL AS THE ACTIONS WE'RE TAKING THROUGH THE 2027 BUDGET AND FEE LEGISLATION TO

HOPEFULLY STABILIZE THE FUND GOING FORWARD. -- AND THIS KIND OF GETS TO WHAT COUNCILMEMBER KETTLE WAS JUST TALKING ABOUT A SECOND AGO, AS WELL AS WHAT WE INITIALLY THOUGHT THE PANDEMIC WAS GOING TO

TAKE TWO WEEKS AND WE'D BE RIGHT BACK. AND THEN IT WAS TWO YEARS, AND THEN SIX YEARS LATER, IT FEELS LIKE WE'RE FINALLY OUT OF IT. BUT THE ECONOMIC THE DOWNSTREAM ECONOMIC IMPACTS ARE STILL LASTING

WITH US, AS SEEN IN THIS BUDGET, ABOUT HOW WE'RE USING THE JUMP START FUNDS ACROSS MANY MORE DIFFERENT DISCIPLINES IN OUR GOVERNMENT, BECAUSE IT'S BETTER THAN CUTTING THE PROGRAMS WE HAVE THE CASH

TODAY. WE'RE STILL MAKING NEARLY A COUNTING SOCIAL HOUSING. WE ARE MAKING A HISTORIC INVESTMENT IN HOUSING THIS YEAR. BUT I WANT TO GET INTO THIS CORE STAFFING FUND BECAUSE BEFORE WE HAVE TO USE YOUR

CONTINGENT BUDGET AUTHORITY, MEANING WE DON'T HAVE STAFF. AND SO WE HIRE QUICKLY YOUR CORE STAFFING FUND ALLOWS US TO CREATE A RESERVE. IS THAT ESSENTIALLY IT. -- TO RETAIN STAFF THROUGH A DOWNTURN?

-- SO WE ARE. SO A CORE STAFFING MAY BE SAID IN ANOTHER WAY IS YOU HAVE PERMIT FEES THAT ARE COMING IN AT A LOWER RATE THAN YOUR ENTIRE EMPLOYEE HEADCOUNT. AND SO OUR FEES ARE NOT COVERING ALL OF OUR

SALARIES. AND SO WE HAVE THIS CORE STAFFING FUND TO BUOY US THROUGH THAT STORM. IS THAT. THAT'S RIGHT. GENERALLY, IT. AND IN YOUR PROJECTIONS AND DIRECTOR PANUCCI, AM I CORRECT THAT THE FORECAST

OFFICE FORECASTS THESE NUMBERS, OR HOW ARE THESE NUMBERS FORECASTED? SORRY, THAT'S A NEW QUESTION AND WE CAN YOU CAN GET BACK TO ME IF YOU NEED TO. I WASN'T I DID NOT I USUALLY SHARE MY QUESTIONS, BUT

I DIDN'T SHARE THAT ONE. SORRY. -- I KNOW THAT THERE ARE ECONOMIST WORKS WITH THE ERF TOGETHER IN ORDER TO COME UP WITH THEIR PROJECTIONS, AND THEY KIND OF MAKE SURE THAT THEY'RE THE PROJECTIONS THAT

WE SEE AND WE ARE F SEES THEY THEY WORK TOGETHER JUST TO BOTH ON, YOU KNOW, WE ARE F WORKS ON A LOT OF DIFFERENT THINGS, BUT WE WORK TO HELP INFORM GENERAL FUND AS WELL. SO. -- DIRECTOR -- YEAH, I, I

WILL NOT FULLY ANSWER YOUR QUESTION. I BELIEVE THE DEPARTMENT FORECASTS THEIR PERMIT FEE REVENUES, BUT IT IS A IT IS AN INPUT INTO THE OVERALL. LIKE THE GENERAL FUND FORECAST THAT OUR OFFICE OF

ECONOMIC AND REVENUE FORECASTS AND OTHER INDICATORS. AS YOU NOTED, PERMIT ACTIVITY IS A KEY INDICATOR IN SORT OF ECONOMIC ACTIVITY OCCURRING IN THE DEPARTMENT. BUT FOR REALLY DEPARTMENT SPECIFIC

FUNDS, IT'S WHY THEY ALSO HAVE AN ECONOMIST ON STAFF AS THEY THEY DO THE FORECASTING FOR THEIR PERMIT PERMIT ACTIVITY. -- THANK YOU. BECAUSE, YOU KNOW, I'VE ONLY I'VE ONLY PULLED A COUPLE OF YEARS

BACK DATA FROM OUR BUDGET BOOKS BECAUSE IT TELLS THE STORY OF HOW WE'VE BEEN FORECASTING WHERE WE THOUGHT THE PANDEMIC WOULD BE TWO WEEKS, TWO MONTHS, TWO YEARS. AND SO JUST LOOKING AT 2027. ACTUALLY

IN 2022, WE HAD $34,000 IN THE CORE STAFFING FUND WHERE WE DRAWING DOWN THE CORE STAFFING FUND IN 2022. SO IT WAS STEADY. THAT WAS WHAT WE HAD. -- YEAH. DURING 2020, WE WERE SURPRISED. WE. WE, I

BELIEVE WE HAD A, A RUSH AT THAT TIME, WHICH REALLY, WE INCREASED OUR FUND BALANCE IN 2020 OVERALL. AND THEN IT KIND OF STABILIZED AND DROPPED AFTER THAT. -- BUT AND BY 2024, WE HAD $22,000 IN THE

CORE STAFFING FUND PROJECTED FOR 25, 26, AND 27. -- IT'S DROPPING FAST, -- RIGHT, 34 TO 2022. BUT THEN IN THE 2025 PROPOSED BUDGET, WE HAD 22 STILL IN 25, BUT IT HAD ALREADY DROPPED TO 18,000 IN 2026,

WITH PROJECTING 15,000 IN THE REMAINING 2027, 28, 29. BUT BY THE TIME WE GOT TO 2026, THE BUDGET BEFORE US, WE'VE GOT 12,000 THIS YEAR, FOLLOWED BY SEVEN SEVEN IN BOTH 27 AND 28. AND THEN IN 2029, WE

SEE AN UPTICK. ANOTHER 12,000 GOING UP FROM SEVEN. BUT THEN WE COME TO THIS YEAR'S SORRY FOR THE 2027 BUDGET. AND WE STILL SEE THAT 12 IS AN ACCURATE NUMBER FOR THE 26 ADOPTED. WE SEE WE HAVE 8000 IN

OUR CORE STAFFING FOR 2027, WHICH IS UP 1000. BUT THEN IT DROPS FROM 7000 TO 1000. AND THEN WE'RE ZEROED OUT IN 28 AND 29. YEAH. IS THIS ALL GENERALLY, YOU'RE UNDER? I'M JUST TRYING TO SHOW THE BURN

RATE THAT WE WENT FROM $34 MILLION. 34 SORRY, AM I MISSING THE ZEROS OR IS THIS THOUSANDS? -- IT'S MILLIONS. -- OKAY. I'M SORRY. WE GOT 34 MILLION SITTING IN HERE IN 2022. AND BY THE TIME WE'RE AT

2028, WE'RE AT ZERO. AND THAT'S BECAUSE OF THE PERMIT DECLINE, THE REVENUE, THE FEE BASED GENERATION, ALL OF THAT. IS THAT CORRECT? -- YEAH. OF COURSE. STAFFING RESERVE. WE HAVE THE MAJORITY OF IT IS

BUILDING PERMIT FEE BUILDING AND LAND USE. BUT THERE IS ELECTRICAL AND SITE REVIEW IN THERE AS WELL. SO WE HAVEN'T ACCESSED THAT YET. IT'S MOSTLY BUILDING AND LAND USE THAT ARE JUST DROPPING IN THE

CHART THAT'S UP THERE. THAT'S JUST SHOWING ONLY THE BUILDING AND THE LAND USE CORE STAFF, THE RED AND THE BLUE. -- GOTCHA. DIRECTOR. -- YEAH, AND I THINK THIS MIGHT BE KIND OF WHAT YOU ARE HONING IN

ON HERE, BUT THIS IS A REFLECTION OF LIKE, EVEN WITH THE CHANGES IN THIS PROPOSED BUDGET, WE ARE STILL RELYING ON FUND BALANCE TO MAINTAIN EVEN THE REDUCED LEVELS OF STAFFING. AND THAT'S WHY I'VE SAID

LIKE, WE SPEND A LOT OF TIME TALKING ABOUT THE GENERAL FUND. THERE ARE LIKE 62 FUNDS. THERE'S MORE WORK TO DO. THIS IS ONE OF THEM THAT IS LIKE, WE ARE WE HAVE MORE WORK TO DO. EVEN GOING INTO NEXT

YEAR TOGETHER. AND HOPEFULLY SOME OF THE WORK THAT I KNOW YOU ALL ARE LEADING ON AND THE MAYOR'S OFFICE AND OTHERS WILL HELP BEND THE CURVE IN THE OPPOSITE DIRECTION, I THINK IS THE GOAL. BUT EVEN

WITH THESE CHANGES, THERE'S SOME RELIANCE, WHICH IS WHY WE ARE TRYING TO BE CAUTIOUS TO NOT REALLY LIKE CUT THE CORE CORE STAFFING, BUT ALSO NEED TO BE CAREFUL IN SORT OF HOW HOW TO PROCEED. GIVEN

THIS, THESE PROJECTIONS. -- THE REASON I BRING THIS UP NOW IS BECAUSE LAST YEAR WE GOT TO THE END OF THE BUDGET CYCLE, AND THERE WERE A LOT MORE QUESTIONS ABOUT THIS VERY TOPIC, WHICH IS WHY I'M GOING

REALLY IN DEPTH HERE. COUNCILMEMBER RINCK, THANK YOU FOR LETTING ME ASK MY ONE QUESTION, WHICH HAS 25 DIFFERENT PRONGS TO IT. I BRING THIS UP BECAUSE IT'S REALLY IMPORTANT FOR ME THAT FOLKS SEE THE 1

MILLION AND THE TWO ZEROS IN THIS LINE AS THE BIGGEST RED FLASHING BEACON IN THE BUDGET RIGHT NOW. THIS WAS EVEN JUST, YOU KNOW, WHEN I STARTED AS A BUDGET CHAIR, WE HAD OVER WE HAD $22 MILLION IN

THIS FUND. AND TO BE EXHAUSTED OF THIS FUND IS IT'S JUST VERY SCARY. AND THIS IS AFTER WE'VE ALREADY DONE THE THING THAT IS HARDEST FOR ME AS A PUBLIC SERVANT, WHICH IS LAY OFF MY CITY FAMILY. THIS IS

AFTER WE HAVE INCREASED PERMIT FEES LAST YEAR, I'M SEEING MORE. AND THEN THIS YEAR WE ARE BOTH LAYING PEOPLE OFF AND INCREASING PERMIT FEES. AND SO THE ONLY OTHER OPTION HERE FROM HERE IS TO EITHER

CONTINUE LAYING PEOPLE OFF, ADDING GENERAL FUND OR INCREASING THESE FEES AGAIN, WHICH TO COUNCILMEMBER KETTLE POINT, MAYBE IT WAS A SIDE POINT, WHICH IS THAT IF OUR FEES ARE TOO HIGH, PEOPLE AREN'T

GOING TO WANT TO BUILD. THIS IS BACK TO THE CONVERSATION OF MHA WAS GROSSING US $67 MILLION A YEAR TO 24 MILLION IN THE PROJECTIONS THAT I'M SEEING IN THE MOST RECENT WERE $22 MILLION A YEAR AT BEST.

AND THOSE ARE FLAT. THIS IS A REALLY BIG DEAL BECAUSE ALL OF THE CONSTRUCTION SALES TAX COMES BACK TO US. ALL OF THE 1% ON NEW CONSTRUCTION COMES BACK TO US. ALL OF THE PROPERTY TRANSFERS THAT THAT

FUNDING COMES BACK TO US. THIS IS PAGE 694, THE THIRD TO LAST LINE IS ONE OF THE MOST IMPORTANT LINES OF THE BUDGET. AND I'M JUST TRYING TO BRING OUR ATTENTION HERE, BECAUSE THIS IS THIS IS VERY BAD.

IT'S VERY SCARY. AND I GUESS I DON'T HAVE ANY OTHER QUESTIONS ONLY TO SAY IT IS THE HARDEST THING FOR ME TO DO. PEOPLE CHOOSE TO WORK FOR THE GOVERNMENT BECAUSE IT'S GOT GOOD BENEFITS AND IT'S GOT

GOOD STABILITY. WE DON'T PAY THE BEST. IF YOU NEED TO BE PAID MORE MONEY, YOU CAN GO WORK FOR THE PRIVATE SECTOR AND, YOU KNOW, MAKE A WHOLE LOT MORE MONEY. I THINK EVERYONE'S SITTING IN THIS ROOM

KNOWS THAT. AND WE ALL, FOR THOSE OF US WHO ARE PUBLIC SERVANTS, WE CHOOSE THE THIRD BOTTOM LINE OF OF CIVIC SERVICE BECAUSE OF, YOU KNOW, SERVICE TO OTHERS, SERVICE TO CITIES, SERVICE TO NATION, BUT

ALSO BECAUSE IT'S THE PRIVATE SECTOR GOES THROUGH ROUNDS OF LAYOFFS THAT THE PUBLIC SECTOR DOESN'T. THIS WILL ONLY BE THE SECOND TIME THAT WE'VE LAID FOLKS OFF SINCE 2008. I FEEL LIKE WE ARE STILL

EXPERIENCING THE DOWNTURN FROM 2008. FROM WHAT I'M SEEING WITH THE CULTURE IN YOUR PERMITTING DEPARTMENT, EVERYONE IS CORRECT THAT THERE ARE MANY OTHER DEPARTMENTS. THERE'S EVEN SEATTLE, KING COUNTY

PUBLIC HEALTH WHEN IT COMES TO CERTIFICATE OF OCCUPANCY AND PLUMBING BUT I'M ALSO, YOUR DEPARTMENT HAS A LOT OF ROOM TO GROW AS FAR AS THE. ADDRESSING THE PERMIT AUDIT. AND ONE OF THE THINGS THAT I'VE

NOTICED FROM MY OPINION IS THAT SOME OF THE. SOME OF THE CHALLENGES THAT WE HAVE THAT THAT PERMIT AUDIT IDENTIFIED ARE, ARE DOWNSTREAM IMPACTS OF LAYING HALF OF YOUR DEPARTMENT OFF IN 2008 WITHOUT

HAVING THE CONTINGENT BUDGET AUTHORITY, WITHOUT HAVING THIS CORE STAFFING FUND. AND SO I'M RELIEVED THAT WE LEARNED LESSONS FROM THERE. I STILL FEEL LIKE WE'RE EXPERIENCING THE IMPACTS, AND I'M GOING

TO DO EVERYTHING THAT I CAN TO MAKE THIS REDUCTION AS SMALL AS POSSIBLE. BUT THESE NUMBERS ARE POINTING US IN A VERY EVEN. I MEAN, JUST TO EVEN GO FROM 22 TO 15 TO 7 TO $1 MILLION IN THE COURSE OF

FOUR YEARS IS THE NUMBERS SPEAK FOR ITSELF. AND SO I'M NOT GOING TO SPEND THE BUDGET COMMITTEE FOLLOWING UP ON THE PERMIT AUDIT, BUT I CAN SAY THAT THE LAST TIME THAT I'VE CHECKED IN WITH THE

AUDITORS, WE WERE NOT AT A PLACE WHERE I FELT GOOD. I KNOW, SAM, YOU'RE THE SECOND DEPARTMENT DIRECTOR TO EVER TAKE IT SERIOUSLY, FOLLOWED BY DIRECTOR BAAB. SO I APPRECIATE YOU TAKING ADDITIONAL

EFFORTS, BUT WE NEED TO. I CAN GET A SENSE OF WHERE IT COMES FROM, AND IT'S FROM A SIMILAR SITUATION AS WHAT WE'RE EXPERIENCING NOW. MY ONLY OTHER QUESTION FOR DIRECTOR PANUCCI, WE HAVE, AS WE WERE

DISCUSSING YESTERDAY IN THE BUDGET, WE HAVE 21 EMPLOYEES REVIEWING PERMITS. ARE THOSE PERMIT REVIEWERS? IS THAT FEE BASED COMING BACK TO THE IS ARE THERE -- ASPECTS OF THOSE FEES THAT ARE COMING INTO

THIS CORE STAFFING FUND ARE THOSE FEE BASED POSITIONS? ARE THEY THE SAME OR DIFFERENT THAN THE POSITIONS IN SDCI? AND THIS IS WHY I ASKED FOR DIRECTOR BRADY TO JOIN US, BUT I UNDERSTAND SHE HAS A

CONFLICT. -- I WANT TO MAKE SURE I'M UNDERSTANDING YOUR QUESTION. ARE YOU ASKING ME LIKE SDCI HAS A TEAM OF FULL TIME STAFF THAT IS DEDICATED TO SOUND TRANSIT PERMIT COORDINATION, AND THAT'S FUNDED BY

SOUND TRANSIT, AND THAT'S NOT IMPACTED BY THESE CHANGES. AND THEN ABOUT A YEAR AGO, I BELIEVE, BUT THIS I WASN'T HERE, BUT I DID REVISIT THE ORDINANCE. THE COUNCIL, YOU I THINK I'M NOT SURE PASSED. I

MEAN, ALL OF YOU. BUT I THINK MAYBE YOU SPONSORED IT. I CAN'T REMEMBER, BUT LEAD THERE WAS AN ORDINANCE THAT ADDED ABOUT 50 POSITIONS ACROSS THE CITY TO SUPPORT ST3 WORK. ONLY ONE OF THOSE WAS IN THE

DEPARTMENT OF CONSTRUCTION AND INSPECTIONS. THAT POSITION IS NOT IMPACTED BY THESE CHANGES, NOR ARE THE POSITIONS IN THE OTHER OTHER DEPARTMENTS IMPACTED IN THIS IN THIS BUDGET. SO THAT CONTINUES.

RIGHT NOW, WE ARE ANTICIPATING THE NEED TO FILL POTENTIALLY 2 TO 5 PLAN REVIEW POSITIONS IN THE FUTURE. IF THE ST3 WORK PICKS UP AND THOSE REVENUES COME IN ALONG ALONGSIDE IT. BUT RIGHT NOW THE CORE

TEAM AND SDCI REMAINS. -- THANK YOU. VERY HELPFUL. I'LL FOLLOW UP A LITTLE BIT MORE. COLLEAGUES. THE REASON I ASKED THAT QUESTION IS BECAUSE IN DOWNTURN, IT IS MOST IMPORTANT THAT WE GET CIVIC UNION

BUILT PROJECTS ROLLING. IN THE PANDEMIC, WE HAD THE WEST SEATTLE BRIDGE CONSTRUCTION. WE HAD THE CONVENTION CENTER CONSTRUCTION, WE HAD THE WATERFRONT CONSTRUCTION JUST AHEAD OF THAT AND ENDING DURING

THE PANDEMIC. WE HAD KEY ARENA, CLIMATE PLEDGE, ARENA CONSTRUCTION. WE HAVE LIGHT RAIL COMING, BUT WE DON'T HAVE ANY MAJOR CITY FUNDED PROJECTS GOING ON RIGHT NOW, WHICH IS ONLY CREATING A BIGGER

NEGATIVE IMPACT ON OUR SALES TAX, ON OUR PROPERTY TAX ET-CETERA. AND SO THAT IS THE POWER OF GOVERNMENT MONEY, IS THAT IT CAN STIMULATE OUR ECONOMY WHILE HIRING GOOD, WELL-PAID UNION JOBS. SO I DIDN'T

HAVE ANY OTHER QUESTIONS. ANYTHING THAT YOU'D LIKE TO RESPOND TO ME ON? -- ONE THING COUNCILMEMBER STRAUSS, I WAS PART OF THAT 2009 REDUCTION IN PROJECT HIRE. I WENT TO SEATTLE CENTER FOR FOUR YEARS

AS A CREW CHIEF, AND WHEN THE OPPORTUNITY, WHEN THE ECONOMY PICKED UP AGAIN, I WAS WAS ABLE TO COME BACK TO DPD AT THE TIME. AND SO NOW FOR ME TO BE IN THIS POSITION IS EXTREMELY EMOTIONAL. IT'S, IT'S

IT'S A HUMAN, YOU KNOW, COMPONENT TO THIS THAT IT LEADS ME TO, TO USE THE BEST JUDGMENT AND ACT WITH CHARACTER. SO I JUST WANT TO THROW THAT OUT TO THE, THE, THE COUNCIL HERE THAT, YOU KNOW, THESE ARE

REAL CONSIDERATIONS WITH REAL PEOPLE. AND WE'RE VERY MUCH AWARE OF THE IMPACTS. -- SO VERY WELL, SAID DIRECTOR. WELL, I KNOW IT'S SEVEN PEOPLE IN YOUR DEPARTMENT. THOSE ARE SEVEN FAMILIES, SEVEN RENT

PAYMENTS, SEVEN MORTGAGES, SEVEN TAKING CARE OF TAKING THE KIDS TO WHATEVER PRACTICE THEY'RE GOING TO. AND IT'S THE MOST DIFFICULT DECISION WE CAN MAKE. COUNCILMEMBER LIN TAKE US HOME. -- ALL RIGHT.

THANK THANK YOU, CHAIR AND I APPRECIATE YOUR HIGHLIGHTING THE IMPORTANCE OF THESE POSITIONS, THE IMPACT TO OUR OUR CITY STAFF. YOU KNOW, POTENTIAL LOSS OF INSTITUTIONAL KNOWLEDGE, ABSOLUTELY CONCERNED

ABOUT LIKE WHAT HAPPENED IN 2008 AND DON'T WANT TO SEE A REPEAT, REPEAT OF THAT. SO APPRECIATE THE THOUGHTFULNESS OF TRYING TO MINIMIZE THE IMPACT TO STAFF. AND AGAIN, HOPEFULLY WE CAN GET THIS SHIP

TURNED AROUND A BIT. I DO THINK, YOU KNOW, WHEN ECONOMIC TIMES ARE BETTER, I THINK SOME OF OUR BUSINESSES, DEVELOPERS CAN SORT OF HANDLE THE IMPACTS FROM DELAYS AND SORT OF OTHER, YOU KNOW,

SUBSTANTIVE REQUIREMENTS THAT WE IMPOSE UPON THEM. BUT WHEN THE HEADWINDS ARE AS STRONG AS THEY ARE RIGHT NOW, I JUST THINK IT REALLY HIGHLIGHTS HOW WE WE NEED TO TAKE A SHARPER, CLOSER LOOK AT AND

JUST BE THAT MUCH MORE RESPONSIVE IN OUR PERMITTING AND TAKING A LOOK. AND SO OBVIOUSLY, WE'RE GOING TO BE DOING THAT WITH THE DISCUSSION WITH THE MAYOR'S HOUSING TASK FORCE, LOOK FORWARD TO SORT OF

SEEING OTHER RECOMMENDATIONS THAT COME FROM THEM. AND, YOU KNOW, HOPEFULLY THAT WORK WILL NOT JUST HELP IN THIS SHORT TERM. BUT THEN EVEN HELP, AS YOU KNOW, MAYBE THOSE HEADWINDS GET A LITTLE BIT LESS

THE HARD WORK WILL, PAY OFF. I ALSO JUST THINK THAT, YOU KNOW, AS YOU MENTIONED, CHAIR STRAUSS, THE THE IMPACTS FROM DEVELOPMENT DOWNTURNS ARE MUCH. YOU KNOW, WE TALK A LOT ABOUT SORT OF, YOU KNOW,

THE NEED FOR HOUSING SUPPLY, BUT THERE ARE SO MANY MULTIPLIERS, WHETHER IT'S JOBS, WHETHER IT'S THE CONSTRUCTION TAX, THE SIDEWALKS, WHETHER IT'S THE PERMIT FEES, AND ON AND ON AND ON. AND REALLY

APPRECIATE THE DISCUSSION ABOUT THE SMALL BUSINESS. YOU KNOW, SUPPORT DELAYS IN PERMITTING FOR SMALL BUSINESS CAN BE DEVASTATING. AND SO, YOU KNOW, I JUST I KNOW YOU KNOW THIS AND YOUR STAFF DO A

GREAT JOB, BUT JUST WANT TO REALLY REINFORCE THE NEED FOR THAT CUSTOMER SERVICE SORT OF FOCUS. AND IT MAKES ALL THE DIFFERENCE. AND, YOU KNOW, SDCI PLAYS AN OUTSIZED SORT OF ROLE IN TERMS OF THAT

CUSTOMER SERVICE. SO MANY PEOPLE DO INTERFACE WITH SDCI, WHETHER IT'S ON THE PERMIT SIDE OR ON THE ENFORCEMENT SIDE. AND SO JUST REALLY WANT TO THANK YOU AND YOUR STAFF FOR WHAT YOU DO AND JUST WANT

TO REINFORCE SORT OF THE, THE, THE AT LEAST, YOU KNOW, CALL FROM, FROM ME. BUT I'M SURE A LOT OF MY COLLEAGUES WOULD AGREE, YOU KNOW, REALLY LEANING INTO THAT SORT OF CAN DO PROBLEM SOLVING, CUSTOMER

SERVICE APPROACH. SO THANK YOU -- THANK YOU. WITH THAT, I AM RECEIVING THE NONVERBAL CUES FROM MY COLLEAGUES THAT IT IS LUNCHTIME AND WITH CITY GRIND ONLY OPEN ANOTHER 27 MINUTES, WE WILL TAKE LUNCH

FOR ABOUT AN HOUR. OPCD HAS BEEN WAITING HERE PATIENTLY. THANK YOU FOR BEING EARLY, WHICH IS ON TIME. IN THE WORDS OF COUNCILMEMBER KETTLE. AND WE WILL BE BACK HERE. I'M GOING TO GIVE US THE FULL

HOUR. SO. 135 WHICH MEANS WE START OPCD AT 136, WHICH MEANS WE SHOULD ALL BE HERE AT 134. WITH THAT, IF THERE IS NO OBJECTION, THE SELECT BUDGET COMMITTEE WILL BE IN RECESS UNTIL 1:35 P.M.. HEARING NO

OBJECTION, THE SELECT BUDGET COMMITTEE IS IN RECESS FOR ONE HOUR. THANK YOU

-- GOOD AFTERNOON. THE SEPTEMBER 29th SELECT BUDGET COMMITTEE MEETING. WE'LL COME BACK TO ORDER. IT IS NOT. 1:35 P.M. WILL THE CLERK PLEASE CALL THE ROLL? -- COUNCIL MEMBER RINCK. PRESENT.

COUNCILMEMBER RIVERA. COUNCILMEMBER SAKA HERE. COUNCILMEMBER FOSTER. HERE. COUNCIL PRESIDENT. HOLLINGSWORTH. -- COUNCILMEMBER JUAREZ. -- HERE. COUNCILMEMBER KETTLE. HERE. COUNCILMEMBER LIN HERE AND

CHAIR STRAUSS. PRESENT SEVEN. PRESENT. -- THANK YOU. ANYONE WHO'S NOT HERE IS EXCUSED UNTIL THEY ARRIVE. AND OFFICE OF PLANNING, COMMUNITY AND DEVELOPMENT. YOU ARE THE ONLY THING STANDING BETWEEN US

AND OUR CENTRAL STAFF. PRESENTATIONS THAT COME IN A COUPLE OF WEEKS. COUNCIL PRESIDENT HOLLINGSWORTH IS NOW PRESENT WITH US AS WELL, SO NO PRESSURE. WE'RE EXCITED TO SEE YOU. WITH THAT, IF YOU'D LIKE

TO, WE'RE GOING TO. IF THE CLERK COULD READ THE THIRD ITEM INTO THE RECORD, AND THEN WE'RE GOING TO SWITCH RIGHT OVER TO YOU, WE'LL HAVE COUNCILMEMBER LIN DO INTRODUCTORY AND CONCLUDING COMMENTS. I'LL

ALWAYS GO BACK TO THE COMMITTEE TABLE TO SEE IF YOU HAVE SOMETHING MORE TO ADD WITH THAT CLERK. -- AGENDA ITEM THREE OFFICE OF PLANNING AND COMMUNITY DEVELOPMENT FOR BRIEFING AND DISCUSSION. -- THANK

YOU. TAKE IT AWAY. -- GOOD MORNING, CHAIR OR NO? GOOD AFTERNOON. IT'S AFTERNOON NOW, ISN'T IT? THANK YOU VERY MUCH FOR HAVING US AND FOR ALLOWING US TO DO A PRESENTATION OF OUR PROPOSED BUDGET FOR 27

AND 28. AND ALSO MUCH APPRECIATION. I KNOW THAT YOU HAVE SPENT MANY LONG HOURS ON THE DAIS LISTENING TO PRESENTATIONS, AND WE'RE HONORED TO BE THE LAST TO PRESENT. SO WE ARE HERE TO TALK ABOUT OFFICE

OF PLANNING AND COMMUNITY DEVELOPMENT'S 2027 AND 2028 PROPOSED BUDGET, AND I WILL BE PRESENTING. I'M THE DIRECTOR, RICO QUIRINDONGO AND INTRODUCTIONS. -- GOOD AFTERNOON, COUNCILMEMBERS. MELISSA WILKE,

FINANCE MANAGER FOR OPCD. -- ALY. PENNUCCI. BUDGET DIRECTOR. -- SCHWITZEN DIRECTOR. COUNCIL CENTRAL STAFF. -- ALL RIGHT, NEXT SLIDE PLEASE SO OFFICE OF PLANNING COMMUNITY DEVELOPMENT, WE'RE

CELEBRATING OUR TEN YEAR ANNIVERSARY THIS YEAR. WE'RE VERY EXCITED ABOUT THAT. WE WERE ESTABLISHED TO LEAD CITYWIDE PLANNING EFFORTS FOR THE CITY AND ENSURE THAT INVESTMENTS IN ENSURE THAT INVESTMENTS

THAT ARE MADE ACROSS OUR CAPITAL DEPARTMENTS ARE ALIGNED, AND THAT WE ARE BEING FISCALLY RESPONSIBLE REGARDING OUR CAPITAL INVESTMENTS AND OUR INVESTMENTS IN NEIGHBORHOODS ACROSS THE CITY. WE

COORDINATE WITH CITY DEPARTMENTS TO ENSURE THAT, AS WE ALL DO OUR WORK, THAT IT IS ALIGNED NOT ONLY WITH THE VALUES AND INTENTIONS OF THE ADMINISTRATION, BUT ALSO THAT WE ARE IN ALIGNMENT WITH THE

HIGH LEVEL POLICY GUIDANCE THAT WE'VE ALL AGREED UPON THROUGH THE COMPREHENSIVE PLAN ONE OF OUR RESPONSIBILITIES, OR ONE OF MY RESPONSIBILITIES ALONGSIDE ALY, IS TO CO-CHAIR THE CAPITAL SUBCABINET,

WHICH FACILITATES ROBUST DISCUSSION AROUND OUR POLICY MAKING AND INVESTMENTS THAT SUPPORT ALL OF OUR SEATTLE NEIGHBORHOODS AND BIPOC COMMUNITIES. NEXT SLIDE. SO OPCD IS DIVIDED INTO FOUR DIFFERENT

DIVISIONS. LONG RANGE PLANNING, LAND USE POLICY, AND STRATEGIC INITIATIVES, COMMUNITY PLANNING, AND OUR EQUITABLE DEVELOPMENT INITIATIVE, WHICH I'LL GO INTO SOME GREATER DETAIL ON. YOU ARE ALSO AWARE

THAT WE HAVE. WE ALSO HOUSE THE SEATTLE DESIGN COMMISSION AND THE SEATTLE PLANNING COMMISSION. BOTH OF THOSE COMMISSIONS OPERATE ENTIRELY INDEPENDENTLY OF OPCD STAFF AND HAVE THEIR OWN CHARTERS. NEXT

SLIDE. SO THE PRIORITIES, THE PRIORITIES THAT YOU SEE FOR 27 AND 28 ARE PRETTY CONSISTENT WITH WHAT YOU SEE YEAR OVER YEAR IN OUR OFFICE. SO THANK YOU AGAIN FOR PASSING OF THE COMPREHENSIVE PLAN IN

DECEMBER OF 25, AS WE MOVED INTO 26, WE HAD OUR FIRST SET OF ANNUAL AMENDMENTS. AGAIN, THANK YOU FOR THE PASSAGE OF OUR ANNUAL AMENDMENTS THIS YEAR. WE HAVE OTHER STEPS RELATED TO COMP PLAN. SO THE

PHASE TWO ZONING LEGISLATION, WHICH IS CURRENTLY ON HOLD, THE PHASE THREE WORK THAT WE HAVE UNDERWAY WE, AS I MENTIONED BEFORE, WILL GO INTO SOME DETAIL RELATED TO OUR EDDIE PROGRAM. WE ALSO HAVE

STAFF THAT ARE DEDICATED TO THE DEVELOPMENT OF REGIONAL CENTER PLANS, WHICH WERE INTRODUCED AS A NEW REQUIREMENT FROM PUGET SOUND REGIONAL COUNCIL TO PROVIDE COMPLETE REGIONAL CENTER PLANNING

BEGINNING IN 2018. WE ALSO HAVE STAFF DEDICATED TO WORKING BOTH INTERNALLY WITH SDOT AND EXTERNALLY WITH SOUND TRANSIT RELATED TO STATION AREA PLANNING AND WORKING HAND IN HAND WITH COMMUNITY.

REGARDING VISUALIZATION OF HOW OUR COMMUNITIES WILL GROW AND TAKE THE GREATEST ADVANTAGE OF TRANSIT ORIENTED DEVELOPMENT OPPORTUNITIES. AND THEN FINALLY, ON THIS SLIDE, WE HAVE A COUPLE OF REALLY

IMPORTANT SPECIAL PROJECTS. ONE. CONTINUED LEADERSHIP IN OR WE HAVE AN INNER AGENCY PARTNERSHIP THAT LOOKS AT SOUTH DOWNTOWN REVITALIZATION. AND THEN WE'RE ALSO HAVE STAFF DEDICATED TO WORKING ON

FUTURE PLANNING. NEXT SLIDE. SO EDDIE, YOU'RE ALL FAMILIAR WITH OUR PROGRAM IS AN ANTI-DISPLACEMENT STRATEGIES. IT IS A WAY FOR THE CITY TO BE INVESTED WITH COMMUNITY PARTNERS, BIPOC ORGANIZATIONS

THAT ARE EMBEDDED IN COMMUNITY, PROVIDING SERVICES IN THE WAY THAT ONLY THOSE ORGANIZATIONS KNOW HOW AND CAN. AND THE INVESTMENTS THAT WE MAKE THROUGH THIS PROGRAM ALLOW THOSE ORGANIZATIONS TO STAY IN

PLACE, IN LARGE PART BECAUSE WE ARE HELPING THEM TO BUILD UP A FACILITY OR INVEST IN THE BUILDING OF A FACILITY THAT IS THEIRS TO OWN, WHICH NOT ONLY STEMS DISPLACEMENT, BUT ALSO HELPS TO BUILD

GENERATIONAL WEALTH. NEXT SLIDE. SOME GOOD NEWS FROM 2026. WE ARE NOW FOR THE FIRST TIME SINCE I'VE BEEN IN THIS POSITION, FULLY STAFFED FOR OUR EDDIE PROGRAM. SO WE HAVE EIGHT FULL TIME F FTE. WE HAD

TWO SUCCESSFUL RFP ROUNDS THIS YEAR, ONE CLOSED, ONE OPEN. WE ALSO HAD A NUMBER OF PROGRAM ADMINISTRATION IMPROVEMENTS, WHICH WE'VE BEEN WORKING ON THE PAST COUPLE OF YEARS. AND I CAN TALK A LITTLE

BIT MORE ABOUT THAT. WE ALSO WAS VERY EXCITED ABOUT THIS. WE KICKED OFF A STRATEGIC PLANNING EFFORT, WHICH IS SOMETHING I LIKE TO CALL EDDIE 2.0, WHERE WE'RE LOOKING AT, YOU KNOW, HOW HAVE WE BEEN

SUCCESSFUL IN THE FIRST TEN YEARS? AND THEN WHAT ARE THE THINGS THAT WE CAN CONTINUE TO DO TO BE MORE COLLABORATIVE, MORE EFFECTIVE, MORE STRATEGIC? AS WE LOOK AT CONTINUED INVESTMENTS ACROSS THE

CITY? LASTLY ON THIS SLIDE, I JUST WANT TO REMIND FOLKS THAT WE HAVE BEEN WORKING WITH SEATTLEITE ON A DATABASE DEVELOPMENT SO THAT WE CAN TRACK MORE CLOSELY AND MORE EASILY HOW THE PROGRAM IS DOING,

HOW MUCH DRAW DOWN THEY HAVE BEEN ON INDIVIDUAL CONTRACTS FOR ANY OF OUR EDDIE PARTNERS. THAT PROJECT IS STILL UNDERWAY. NEXT SLIDE. SO I'M NOT GOING TO SPEND ANY TIME ON THE NUMBERS ON THIS SLIDE,

BUT I DO WANT TO SAY A COUPLE THINGS THAT I THINK ARE IMPORTANT. ONE, YOU KNOW, AS OF AS OF 2022, WE ONLY HAD EIGHT COMPLETED PROJECTS AS OF TODAY. WE HAVE 91 EDDIE PARTNERS. WE HAVE OVER 23 COMPLETED

PROJECTS. AND, YOU KNOW, THANK YOU TO ALL OF YOU. THANK YOU COUNCILMEMBER RIVERA, FOR HOLDING US TO ACCOUNT. AND PROVIDING US THE INSPIRATION TO TIGHTEN UP OUR PROGRAM, BE MORE STRATEGIC ABOUT HOW WE

COULD INVEST WITH EXISTING PARTNERS TO HELP MOVE ALONG PROJECTS MORE QUICKLY. AND THEN ALSO BE A LITTLE BIT MORE STRATEGIC ABOUT HOW WE INVESTED NEW DOLLARS FOR NEW PARTNERS, WHAT WE'VE REALLY DONE IS

DONE SOME RIGHTSIZING RELATED TO NOT ONLY THE DOLLARS THAT WE PROVIDE FOR EXISTING PARTNERS, BUT ALSO LIKE HOW MANY NEW THINGS WE TAKE ON A YEAR. SO YOU'LL, YOU'LL NOTE THAT LIKE WITH THE 2026 AWARDS,

WE ONLY HAD FOUR NEW PROJECTS FOR AND FOR NEW $75,000 KIND OF VISIONING. PROGRAM DOLLARS. NEXT SLIDE. SO LOOKING AHEAD. YOU KNOW, WE I THINK WE'VE BEEN VERY FORTUNATE THAT THAT THE PROGRAM HAS GROWN

AND THE BUDGET FOR THE PROGRAM HAS GROWN YEAR OVER YEAR IT IS ANTICIPATED TO EXCEED 29,000,000 IN 2027. WE WILL, AS WE ALWAYS DO, WORK CLOSELY WITH THE EDDIE ADVISORY BOARD RELATED TO SPECIFIC

CRITERIA FOR THE 2027 RFP. WE WILL ALSO WORK WITH THE BOARD AS WE CONTINUE OUR STRATEGIC PLANNING PROCESS AND DEVELOP LONG TERM PROGRAM AND PROCESS IMPROVEMENTS. WE ANTICIPATE THAT WE SHOULD HAVE A

VERY EXCITING STRATEGIC PLAN AND IMPLEMENTATION PLAN FOR EDDIE 2.0 BY THE END OF NEXT YEAR. NEXT SLIDE. AND I THINK THIS IS WHERE I PASS TO YOU, MELISSA. -- THANK YOU. SO I THINK THAT TAKES US INTO

OUR BUDGET SLIDE OPCD 2027. PROPOSED BUDGET REMAINS LARGELY CONSISTENT WITH THE CURRENT YEAR. IT MAKES SEVERAL MODERATE REDUCTIONS, INCLUDING THE ELIMINATION OF TWO VACANT POSITIONS AND MAINTAINS

EXISTING SERVICES. THE TABLE ON THIS SLIDE ACTUALLY LOOKS LIKE A MORE SIGNIFICANT REDUCTION THAN IT ACTUALLY IS. THE REDUCTION YOU SEE HERE IS PRIMARILY DUE TO THE REMOVAL OF ONE TIME ITEMS THAT I

THINK WE SAW WITH SOME OTHER DEPARTMENTS AS WELL, THAT WERE ADDED IN THE 2026 BUDGET OF THOSE, I THINK 3 MILLION WERE SPECIFIC ITEMS FOR SPECIFIC PROJECTS, AND SOME OF IT WAS FOR NORTH AURORA

PLANNING. YOU WILL ALSO SEE ON THIS SLIDE THE OPCD TOTAL POSITION COUNT IS REDUCED FROM 50.5 FTE TO 49 FTE, WHICH IS A FULL TIME POCKET AND A HALF TIME POCKET. BOTH OF THESE POCKETS ARE CURRENTLY

VACANT AND THEY HAVE BEEN VACANT ALL YEAR. SO THE MOST SIGNIFICANT POLICY CHANGE IN OPCD BUDGET IS A FUND SWAP OF $338,000 OF EDDIE FUNDS. JUMPSTART FUNDS TO SUPPORT GENERAL FUND OVERHEAD STAFF. EDDIE

TOTAL BUDGET IN 2027. TOTAL NON-LABOR BUDGET IS 26.8 MILLION, WHICH MAKES IT ABOUT 70% OF OPCD OVERALL BUDGET. THE SWAP OF 338,000 TO SUPPORT GENERAL FUND STAFF REPRESENTS ABOUT A 1% REDUCTION TO NON-

LABOR BUDGETS, WHICH COULD EQUATE TO ABOUT FOUR CAPACITY BUILDING AWARDS OR ONE PREDEVELOPMENT AWARD. THE NEXT SLIDE DETAILS THE POSITION CHANGES AND OPCD PROPOSED BUDGETS. AS WE MENTIONED IN THE

OVERVIEW AND THE BUDGET OVERVIEW, THE PROPOSED BUDGET ELIMINATES TWO VACANT POSITIONS. IN BOTH CASES, THE POSITIONS HAVE BEEN VACANT ALL YEAR AND THE WORK HAS BEEN ALREADY BEEN DISTRIBUTED AMONG OTHER

STAFF IN THE OFFICE. WORK IS CONTINUING ON. ALL ITEMS ON OUR WORK PROGRAM. THERE IS NO IMPACT TO OPCD WORK PROGRAM FOR NEXT YEAR. AS A RESULT OF THESE VACANT POSITIONS GOING AWAY. AND THIS IS THE

FINAL POSITION SUMMARY FOR OPCD SUMMARIZES THE POSITION CHANGES FROM 50.5 TO 49. THE OTHER POSITION CHANGE WITHIN OUR BUDGET IS RELATED TO A SUNSET DATE EXTENSION. AND THAT IS JUST TO ALIGN TO ITEMS

IN THE WORK PROGRAM FOR 27 AND 28. SO WITH THAT, I'LL TAKE US TO QUESTIONS -- THANK YOU VERY MUCH. THOROUGH AND QUICK. AND COUNCILMEMBER VICE CHAIR RIVERA WAS HERE WHILE YOU WERE ON SWITCHING BETWEEN

SLIDE TWO AND THREE, WHICH WAS STILL THE INTRODUCTORY PARTS OF IT. WITH THAT COUNCILMEMBER LIN AS CHAIR OF THE COMMITTEE OVERSEEING THE DEPARTMENT, YOU'RE RECOGNIZED TO KICK US OFF AND CLOSE US OUT.

-- ALL RIGHT. THANK YOU, CHAIR. I DON'T HAVE A LOT TO KICK US OFF. I THINK I'LL SORT OF RESERVE IF THAT'S OKAY. CHAIR, ANY SORT OF FOLLOW UP QUESTIONS, DEPENDING ON WHAT MY COLLEAGUES HAVE TO ASK. BUT

I GUESS I'LL JUST START OFF WITH ONE JUST SORT OF GENERAL QUESTION. OBVIOUSLY, WE'VE HAD IMPACTS FROM LITIGATION, INCLUDING THE GROWTH MANAGEMENT HEARINGS BOARD DECISION. COULD YOU JUST SPEAK TO IN

TERMS OF YOUR YOUR BUDGETING AND PLANNING FOR THAT AND SOME OF THE STATIONARY PLANNING AND THE EXCITING WE HAVE THE OPENING, I BELIEVE. AND SO WE GOT TO GET OUT OF HERE, MAKE SURE THAT COUNCILMEMBER

JUAREZ CAN GET TO THE OPENING. THEY'RE UP AT PINEHURST. BUT COULD YOU JUST SPEAK TO HOW THAT DOES OR DOES NOT AFFECT SORT OF STAFFING? -- I THOUGHT YOU WERE GOING TO ASK ME ABOUT MONEY. SO NO EFFECT

TO STAFFING. WE I'M TRYING TO THINK OF WHAT THE SHORT VERSION IS. WE'RE STILL HARD AT WORK ON, ON THE COMP PLAN ACTIVITIES. LIKE I HAD MENTIONED BEFORE, BOTH PHASE TWO AND PHASE THREE. AND WE HAVE

SUFFICIENT DOLLARS IN OUR BUDGET PRESENTLY TO COVER THOSE ACTIVITIES. AND THE STAFF THAT WE HAVE ARE WE WE'VE HAD TO DO A BUNCH OF REALIGNING AND ADJUSTING TO BE RESPONSIVE TO THE WORK AS IT HAS

CHANGED, INCLUDING CURRENTLY MAKING ADJUSTMENTS RELATED TO THE GROWTH MANAGEMENT, HEARING, HEARINGS BOARD DECISION DETERMINATIONS. BUT WE'RE ABLE TO DO THAT WITH THE STAFF THAT WE HAVE AND ALL OF THE

STAFF ARE FULLY ALLOCATED. YEAH. -- THANK YOU CHAIR. THAT'S ALL I HAVE TO KICK US OFF. -- FANTASTIC. COLLEAGUES. QUESTIONS, COMMENTS. NOW IS THE TIME. COUNCILMEMBER RIVERA. -- NICE TO SEE YOU.

DIRECTOR QUIRINDONGO, AND THANKS FOR BEING HERE. MELISSA. NICE TO SEE YOU AGAIN TOO. I JUST WANT TO THANK YOU FOR PARTNERING WITH ME AND WORKING TOGETHER. I KNOW I GAVE YOU FEEDBACK, I MET WITH SOME

OF THE EDDIE BACK IN 24 RECIPIENTS, AND I KNOW THEY HAD A LOT OF FEEDBACK IN TERMS OF WANTING TO MEET TOGETHER IN THIS QUARTERLY WAY, AND I THINK YOU MADE CHANGES TO THAT. AND CAN YOU SPEAK A LITTLE

TO THAT, TOO, BECAUSE THIS IS IMPORTANT, RIGHT? THEY'RE ALL AT DIFFERENT STAGES OF THEIR DEVELOPMENT OF THEIR PROJECTS, AND THEY WANTED TO HEAR FROM EACH OTHER TO GET IDEAS FOR HOW TO BEST MOVE

FORWARD AND BE SUCCESSFUL. AND OF COURSE, COMPLETING MORE PROJECTS IN A SHORTER AMOUNT OF TIME IS REALLY OUTSTANDING. BECAUSE IF THESE PROJECTS DON'T GET DEVELOPED, THEY ACTUALLY HELP NO ONE. AND

THAT'S THE POINT. SO REALLY APPRECIATE YOU MADE TWEAKS ACTUALLY TO THE PROGRAM IN ORDER TO MAKE SURE THAT WE WERE GOING TO HELP COMMUNITY DEVELOP THOSE PROJECTS FASTER. AND SO I REALLY APPRECIATE THAT

YOU DID THAT AND WOULD LOVE TO HEAR IF THOSE QUARTERLY MEETINGS ARE HAPPENING OR IF THEY'RE HAPPENING AT ALL. HOW, HOW EVER OFTEN I THINK COMMUNITY AND I HAVE CONTINUED TO HEAR FROM SOME OF THE FOLKS

IN COMMUNITY THAT SAY, YOU KNOW, THAT IS IMPORTANT TO THEM -- THANK YOU FOR THE QUESTION. SO WE'RE WE'RE KIND OF DOING IT AS A MULTI-LAYER CAKE. SO WITH THE STRATEGIC PLANNING EFFORT, WE HAVE BEGUN

DOING SOME CONVENING. SO WE HAVE A. I'M CATHERINE CORTEZ, WHO'S OUR DIVISION MANAGER. WILL JUST KILL ME LATER BECAUSE I'M NOT GOING TO GET ANY OF THE NAMES OF THE COMMITTEES CORRECT. BUT. -- EVERYBODY

-- EXCUSE ME THERE. WE'RE IN THE MIDDLE OF A MEETING, SO WE'LL CONTINUE. -- PUBLIC COMMENT. OTHELLO. -- PLEASE CONTINUE. -- SURE. SO WE DO. WE HAVE WE HAVE A NUMBER OF CONVENINGS ON THE CALENDAR, SOME

WITH LARGER BODY OF STAKEHOLDERS FOR LIKE A FULL DAY CONVENING AND THEN SOME SMALLER SESSIONS WITH WORKGROUPS OVER SPECIFIC TOPIC AREAS. IN ADDITION TO THAT, OUTSIDE OF THE STRATEGIC PLANNING PROCESS,

WE ALSO HAVE STARTED TO DO A SEPARATE CONVENING. WE ACTUALLY JUST LAST WEEK HAD A CELEBRATION FOR NU EDDIE PARTNERS, ALONG WITH EXISTING ONES AT OUR PLACE, WHO'S OBVIOUSLY ONE OF OUR PARTNERS, WHICH

WAS REALLY GREAT. SO I VERY MUCH HEARD THAT PIECE OF IT AS WELL. AND IT WAS SOMETHING THAT THAT HAD GONE DORMANT DURING COVID, AND NOW WE'RE BACK IN FULL SWING IN TERMS OF GETTING PEOPLE TOGETHER AND

SHARING BEST PRACTICES AND, AND KIND OF WHERE PEOPLE HAVING WHERE, WHERE PINCH POINTS ON PROJECTS AND WHERE PEOPLE HAVING NEEDS THAT THEY CAN NOT ONLY SHARE WITH STAFF, BUT SHARE WITH EACH OTHER. SO

WE CAN TRY TO FIGURE OUT WHERE THERE ARE OPPORTUNITIES FOR BETTERMENTS. -- YEAH. -- THANK YOU. DIRECTOR. AND THEN YOU ALSO MADE SOME OTHER TWEAKS TO THE PROGRAM AS WELL. I KNOW, AND SO REALLY

APPRECIATE THOSE IN ORDER TO HELP THOSE PROJECTS ALONG FASTER. -- YEAH. AND I THANK YOU FOR THE PROMPT. AND ONE OF THE THINGS I SHOULD HAVE MENTIONED IS THAT WE DID DO A REQUEST FOR QUALIFICATIONS TO

GET A WHOLE CADRE OF TECHNICAL ASSISTANCE CONSULTANTS WHO NOW HELP US THEY HELP EXISTING PARTNERS WITH THEIR PROJECTS AND DIFFERENT DIFFERENT AREAS OF THE WORK, WHETHER IT'S FINANCE OR CONSTRUCTION

RELATED OR OPERATIONS RELATED OR OR OPERATIONS PLANNING. AND THEN WE ALSO HAVE TECHNICAL CONSULTANTS THAT HELP EDDIE PARTNERS ACTUALLY BE RESPONSIVE TO THE CITY, RELATED TO OUR APPLICATION PROCESS AND

WHAT WE HAVE SEEN, THERE IS A IS A HUGE UPTICK IN. APPLICANTS BEING ABLE TO PROVIDE COMPLETE APPLICATIONS AND ONES WHERE, YOU KNOW, THE NEED FOR US TO GO BACK AND ASK FOR MORE IS VERY MUCH REDUCED.

AND THEY'RE THEY'RE ABILITY TO GET THROUGH THE PROCESS TO A COMPLETE AWARD OR A SUCCESSFUL AWARD HAS ALSO INCREASED. -- YEAH. -- THANK YOU. THANK YOU FOR SHARING THAT. THANK YOU. CHAIR. -- THANK YOU,

COUNCILMEMBER RIVERA. COUNCILMEMBER SAKA. -- THANK YOU, CHAIR, AND THANK YOU. DIRECTOR QUIRINDONGO AND YOUR TEAM FOR BEING HERE. PRESENTATION AND THE OFFLINE INFORMATION YOU SHARED EARLIER ABOUT. MY

QUESTION FOR OH. I'LL START WITH I'LL JUST SAY AS A AS A COUNCILMEMBER THAT REPRESENTS DISTRICT ONE, WAS REALLY EXCITED TO SEE THE RECONNECT SOUTH PARK WAS IDENTIFIED IN THE PROPOSED BUDGET AS SORT OF

A. THIS MAJOR ONGOING COMMUNITY PLANNING EFFORT WITH THE DEPARTMENT. SO JUST BE CURIOUS TO BETTER UNDERSTAND HOW CAN OPCD PARTNER WITH SOUTH PARK COMMUNITY GROUPS TO DESIGN INFRASTRUCTURE AND LAND USE

STRATEGIES THAT SIMULTANEOUSLY REDUCE DISPLACEMENT RISKS, STRENGTHEN CLIMATE RESILIENCE, AND ADDRESS LONG STANDING ENVIRONMENTAL CHALLENGES AND ASSOCIATED, IN THE CASE OF RECONNECT SOUTH PARK LIKE

TRANSPORTATION BURDENS? -- YEAH. NO, I APPRECIATE THE QUESTION. THANK YOU. SO WE'VE BEEN REALLY EXCITED TO PARTNER WITH COMMUNITY AND ORGANIZATIONS IN SOUTH PARK RELATED TO VISIONING FOR WHAT'S THE

FUTURE OF, OF THAT PART OF OUR CITY AND THE SOUTH PARK NEIGHBORHOOD, SPECIFICALLY. THERE'S LOTS OF MOVING PARTS THERE, RIGHT? SO THERE'S, THERE IS INFRASTRUCTURE THERE'S IN THE BIG PICTURE, LIKE SEA

LEVEL RISE AND IMPACTS THERE. WE ARE IN PARTNERSHIP WITH SPU WITH OFFICE OF SUSTAINABILITY AND WITH COMMUNITY ORGANIZATIONS RELATED TO WHAT FUTURE INVESTMENTS MIGHT LOOK LIKE ALONGSIDE S DOT AND

WASHDOT AS WELL. WE HAVE A REGULAR REOCCURRING MEETING WITH WASHDOT REGARDING NOT ONLY RECONNECT SOUTH PARK, BUT A NUMBER OF PROJECTS IN OUR OFFICE WHERE WE WANT TO MAKE SURE THAT THE WORK THAT WE DO

PARTNERS WELL WITH WASHOUTS EFFORTS TO DO THEIR ENTIRE CORRIDOR STUDY. AND SO THOSE RECONNECT SOUTH PARK WORK THAT WE'RE DOING, WE WANT TO HAVE IT HELP INFORM SOME OF THE DECISION MAKING THAT'S A PART

OF THAT PROCESS AS WELL. SO I THINK, YOU KNOW YOU'RE NEVER DONE. I THINK THAT WHAT I THINK THAT WHAT WE'VE BEEN ABLE TO DO THAT I'VE BEEN PROUD OF OVER THE LAST THREE YEARS IS TO BUILD SOME WELL-

GREASED CONDUITS FOR COORDINATION AND DISCUSSION AS WE TRY TO BUILD THE PLANE WHILE WE'RE FLYING IT. AS YOU KNOW, WE RELEASED A FUTURES VISIONING STUDY RELATED TO RECONNECT SOUTH PARK WITH FOUR

POSSIBLE FUTURES, AND THAT WILL INFORM SOME OF OUR FUTURE WORK. AND WE, THROUGH THE RECONNECTING COMMUNITIES GRANT PROGRAM, WE HAVE, I BELIEVE, UPWARDS OF $4 MILLION NOW RELATED TO WORK IN SOUTH PARK.

SO A LOT OF GOOD WORK AHEAD. -- THANK YOU FOR THAT. APPRECIATE THE INITIAL CLARITY THERE. AND MY NEXT QUESTION PERTAINS TO YOUR DEPARTMENT'S ROLE IN FACILITATING CRITICAL MAJOR TRANSPORTATION OR

TRANSIT INFRASTRUCTURE UPGRADES, SPECIFICALLY LIGHT RAIL. SO HOW CAN YOUR DEPARTMENT WORK COLLABORATIVELY WITH COMMUNITIES THAT ARE DIRECTLY IMPACTED BY LIGHT RAIL EXPANSION? SO I'M THINKING ABOUT.

YOU KNOW, IN MY DISTRICT, STAKEHOLDERS IN THE WEST SEATTLE COMMUNITY, SPECIFICALLY NORTH DELRIDGE AND THE JUNCTION, SOTO, TO ENSURE THAT UPCOMING LIGHT RAIL STATION AREA PLANNING AND FUTURE PLACE

BASED PLANNING SUPPORT EQUITABLE DEVELOPMENT, STRENGTHEN NEIGHBORHOOD CONNECTIONS AND IDENTITY. FOSTER A VIBRANT AND WALKABLE SET OF NEIGHBORHOODS. WHETHER IT'S THE WEST SEATTLE JUNCTION, THE NEW

NORTH DELRIDGE STATION, SODO, WALKABLE AND VIBRANT BUSINESS DISTRICTS, AND REFLECT COMMUNITY DRIVEN PRIORITIES -- AGAIN, THANK YOU FOR THE QUESTION. I WOULD SAY THERE'S TWO DIFFERENT DEDICATED

PROGRAMS THAT WE HAVE IN OUR OFFICE RIGHT NOW. WE HAVE OUR OUR OUR DEDICATED STATION AREA PLANNING STAFF AND THEY'RE VERY FOCUSED RIGHT NOW ON, ON WEST SEATTLE AND NOT ONLY THE STATION AREA PLANNING

EFFORT FOR ALL THE STATIONS THAT YOU JUST NAMED, BUT ALSO WHAT IS THE FRAMEWORK THAT WE WILL UTILIZE TO TAKE COMMUNITY INPUT, HAVE THAT INFORM THE PLANNING PROCESS, HAVE THE AND THEN HAVE THE

RESULTING PLAN OVERLAYS ADOPTED IN SUCH A WAY THAT IT. IT'S NOT ONLY A DISCOVERABLE EXERCISE, BUT THAT. SUCH THAT IT ACTUALLY INFORMS THE. PRIVATE DEVELOPMENT AND PUBLIC PRIVATE PARTNERSHIPS THAT

RESULT. AFTER THE STATION BOXES ARE COMPLETE. WE'RE STILL WORKING ON THAT. THE OTHER THING I WOULD SUGGEST IS THAT, YOU KNOW, WE HAVE 1.75 MILLION IN FEDERAL DOLLARS, WHICH IS ASSOCIATED WITH

EQUITABLE TRANSIT ORIENTED DEVELOPMENT SPECIFICALLY. SO WE HAVE A COMMUNITY ADVISORY GROUP, THAT IS MADE UP OF COMMUNITY STAKEHOLDERS, THAT IS HELPING TO INFORM US ABOUT HOW WE SHOULD BE THINKING

ABOUT FUTURE CITY INVESTMENTS AND PUBLIC PRIVATE PARTNERSHIPS, AS WELL AS WHO ARE COMMUNITY ORGANIZATIONS THAT WANT TO BE INCLUDED IN THOSE FUTURE PLANNING AND DEVELOPMENT OPPORTUNITIES. AND THEN

ALSO, HOW ARE WE THINKING ABOUT ABOUT BLACK AND BROWN AND SMALL BUSINESS IN TERMS OF DISPLACEMENT, CONSTRUCTION MITIGATION, INCLUSION, AND FUTURE TRANSFER AND DEVELOPMENT OPPORTUNITIES, AND NOT AS AN

AFTERTHOUGHT, BUT INFORMING BOTH THE PLANNING EFFORT AND THE VISIONING. SO AGAIN, I FEEL REALLY OPTIMISTIC ABOUT THE THE WORK AND THE OPPORTUNITY, ACKNOWLEDGING THAT, YEAH, THERE'S A LOT OF

COMPLICATED MOVING PARTS THERE. -- SURE. NO, I APPRECIATE THAT ANSWER. AND LAST YEAR WE ADDED A, A BUDGET AMENDMENT FOR $250,000 FOR ANTI-DISPLACEMENT WORK. AND I THINK THAT WAS DISTRIBUTED BY OED.

BUT THE ULTIMATE CHALLENGE AND ADDRESSING THE ULTIMATE CHALLENGE, I THINK YOUR DEPARTMENT IS, IS IN TERMS OF DISPLACEMENT. THE LAST THING YOU TALKED ABOUT, WHICH IS WHAT I WANT TO DOUBLE CLICK ON JUST

A LITTLE MORE. AND I, I APPRECIATE YOUR ANSWER. THERE REALLY WAS HONING IN AND LOVING THE LAST THING YOU TALKED ABOUT IN PARTICULAR IN TERMS OF, YOU KNOW, SUPPORTING AND MITIGATING AGAINST

DISPLACEMENT, AGAINST THE EXISTING RESIDENTS AND BUSINESSES, ESPECIALLY THE BLACK AND BROWN ONES AND SMALL BUSINESSES. SO WHAT, WHAT, WHAT ROLE DO YOU ENVISION YOUR DEPARTMENT PLAYING IN TERMS OF

DOING EXACTLY THAT DURING THIS UPCOMING YEAR? LEVERAGING THESE BUDGET RESOURCES, YOU DO HAVE TO SUPPORT ANTI-DISPLACEMENT EFFORTS OF SOUND TRANSIT IMPACTED SMALL BUSINESSES AND RESIDENTS, ESPECIALLY

ON THE SMALL BUSINESS FRONT. -- SURE. SO I THINK IT'S A MULTI-PRONGED APPROACH. I WOULD SAY THAT. -- THAT THAT FELT LIKE AN EARTHQUAKE TO ME. WE'RE GOING TO PAUSE. WE'RE GOING TO STAY AT EASE. I MAY

ASK TO CLEAR THE COUNCIL CHAMBERS IN A MOMENT, BUT I JUST WANT TO CHECK TO MAKE SURE THAT. SO WE'RE GOING TO GO AT EASE FOR JUST A MINUTE. IF YOU CAN HIT THE MICROPHONES AND WE'LL COME RIGHT BACK ON

IN JUST A SECOND. WELCOME BACK. WE HAVE JUST EXPERIENCED A 4.0 EARTHQUAKE SIX KILOMETERS WEST OF BURLEY WASHINGTON. AND SO WE ARE GOING TO DO THIS DOUBLE TIME. IF WE HAVE AN AFTERSHOCK OR ANOTHER

EARTHQUAKE, WE WILL PAUSE AND WE'LL JUST END COMMITTEE. SO I'M GOING TO ASK US TO DO THIS DOUBLE TIME. I'M ALSO GOING TO ASK ANY QUESTIONS THAT CAN BE HELD FOR SHAREPOINT TO BE HELD FOR SHAREPOINT. IF

WE DO HAVE ANOTHER EARTHQUAKE, PLEASE STAY AWAY FROM THE GLASS. PLEASE GET UNDER SOMETHING. SO IF YOU ARE SITTING IN CHAMBERS, I WOULD SIT ON THE EDGES OR ON THE BACK WITH THAT AND STAY AWAY FROM THIS

GLASS. SO SIR, WITH THE SHOW UP SEATTLE HAT, I WOULD NOT SIT THERE. MY FRIEND BENNETT, CAN YOU ASSIST OUR GOOD FRIEND? THANK YOU. BACK TO YOU, DIRECTOR QUIRINDONGO. AND IF WE CAN DO THIS DOUBLE TIME.

THANK YOU -- YES. SO, COUNCILMEMBER SAKA, RESPONDING TO YOUR QUESTION, I THINK IT IS A MULTI PRONGED APPROACH, AND I LOST MY TRAIN OF THOUGHT A LITTLE BIT THERE. BUT I THINK THAT, YOU KNOW, WE

CERTAINLY THROUGH OUR COMMUNITY ADVISORY GROUP ARE ARE LOOKING FOR. IDENTIFICATION OF OPPORTUNITIES FOR WHERE WE CAN LEAN IN AND WHERE WE CAN, WHERE THERE MIGHT BE OPPORTUNITIES FOR FUTURE CITY

INVESTMENTS AND PARTNERSHIPS. OPCD. AT OPCD, WE HAVE A LOT OF GREAT RELATIONSHIPS WITH THE DEVELOPMENT COMMUNITY. AND SO AS WE LOOK AT THESE FUTURE SITES, AS WE GET CLOSER TO LIKE THE COMPLETION OF

PLANNING EFFORTS AND THAT SORT OF THING, WE WE WILL ALSO BE VERY INTERESTED TO HEAR FROM PROSPECTIVE DEVELOPERS. WHAT SITES ARE OF INTEREST, WHAT DEVELOPMENTS MIGHT LOOK LIKE, WHAT'S THE ROLE THE CITY

WILL PLAY? WE OBVIOUSLY RELATED TO THE PARTNERSHIP WITH SOUND TRANSIT. WE ARE WORKING VERY CLOSELY WITH DOT AND WITH SDCI. REGARDING THE DEVELOPMENT OF. THE STATIONARY BOXES, THE STATIONS AND AREA

IMPROVEMENTS RELATED TO THE PUBLIC REALM, BUT ALSO LOOKING FOR INPUT FROM COMMUNITY RELATED TO ALL OF THOSE PARTS AND PIECES AS WELL. LAST THING I WOULD SAY IS THAT I THINK THAT OUR RELATIONSHIPS WITH

COMMUNITY THROUGH OUR EDDIE PROGRAM ARE ALSO REALLY IMPORTANT, NOT ONLY BECAUSE ALL OF OUR PARTNERS ARE ALREADY LIKE DEEPLY INVESTED IN COMMUNITY AND HAVE WILL HAVE A LOT OF GUIDANCE RELATED TO HOW

THEY FEEL. COMMUNITY MAY PLAY A ROLE IN FUTURE DEVELOPMENT AND I THINK THAT WE WANT TO BE MINDFUL OF PROVIDING A. VENUE AN OPPORTUNITY TO LIKE, WELCOME PARTNERSHIP WITH OUR PARTNERS FOR FUTURE

PROJECTS. SO -- GOT IT. -- THANK YOU FOR THAT. APPRECIATE THE COMMENTS THERE. FINALLY, I'LL JUST NOTE THAT FOR THE RECORD, THERE ARE SIX. SEATTLE SUCCESSFUL APPLICATIONS FOR FEDERAL OPPORTUNITY ZONE

2.0 DESIGNATIONS, ONE IN THE U. DISTRICT AND UW CAMPUS, ANOTHER IN THE U. DISTRICT AND THE U DISTRICT STATION, AND ANOTHER A THIRD IN THE U DISTRICT. AN EMBARRASSMENT OF RICHES. COUNCILMEMBER RIVERA

ONE IN FIRST HILL S U. CAMPUS NEAR YESLER, EAST YESLER ONE LITTLE SAIGON AND CENTRAL DISTRICTS, ONE IN RAINIER BEACH. AND IT SOUNDS LIKE THE SEATTLE HOUSING AUTHORITY ALSO SUCCESSFULLY SUBMITTED AN

APPLICATION FOR THE NORTHGATE REGIONAL CENTER. SO A LOT OF GREAT OPPORTUNITY. AND AHEAD. AND I APPRECIATE THAT INITIAL INFORMATION AND THE ANSWERS THERE WILL FOLLOW UP WITH ADDITIONAL QUESTIONS AS

NEEDED IN THE IN THE TRACKER. THANK YOU CHAIR. -- THANK YOU. COUNCILMEMBER SAKA COLLEAGUES. ANY OTHER QUESTIONS? COMMENTS, STATEMENTS? I AM GOING TO SAVE MINE FOR SHAREPOINT. I WILL JUST I WAS GOING

TO ASK YOU TO GIVE US THE HISTORY OF EDDIE. I'M JUST GOING TO SAY IT. RATHER THAN DO THE BACK AND FORTH. ALL THAT TO SAY IS IT WAS A ONE TIME PROGRAM FUNDED FROM THE SUPERBLOCK SALE OF DENNY WAY BROAD

STREET OF BROAD STREET. WE WERE JUST LOOKING DOWN THERE. IT'S STILL UNDEVELOPED. THAT'S NOT OUR FAULT AT THIS POINT. BUT WE WERE ABLE TO SELL THAT RIGHT OF WAY FOR DEVELOPMENT, WHICH GAVE US A LOT OF

ONE TIME CASH THAT CREATED THE EQUITABLE DEVELOPMENT INITIATIVE. AND THE ONLY ONLY ONCE WE WERE WE PASSED JUMPSTART WAS THEIR ONGOING FUNDING FOR EDDIE. SO THAT IS HOW YOUR BUDGET FROM 2019 TO TODAY

HAS GROWN. 224%. AND I WILL I HAVE SOME ADDITIONAL FEEDBACK TO SHARE WITH YOU ABOUT THE REGIONAL PLAN MEETING. THE OTHER NIGHT, WE HAD ANOTHER RESIDENT WHO WASN'T ABLE TO MAKE IT THERE. SO LET'S JUST

COORDINATE A LITTLE BIT BETTER. I WANT TO BRING UP LITING I FIVE. WE CAN TALK MORE. I'M PUTTING IT ON THE RECORD NOW THAT IT'S NOT JUST DOWNTOWN. WE NEED TO ALSO BE LOOKING AT PINEHURST BECAUSE WE ARE

HAVING THAT STATION OPEN TODAY. I WANT TO RECONNECT ROOSEVELT WAY. SO IT'S I WANT TO RECONNECT THAT ENVIRONMENT. AND WE DON'T HAVE TO USE PUBLIC FUNDING. WHEN WE LOOK AT WASHINGTON, DC, IT WAS ALL

PRIVATELY FUNDED. IT RECONNECTED THEIR GRID. IT BUILT HOUSING, IT BUILT OFFICE SPACE. WE CAN DO IT UP THERE. AND I'D LOVE TO DIG IN MORE WITH THE STATUS OF YOUR WORK AROUND NORTH AURORA AVENUE, WHERE

IT'S AT AND WHERE WE'RE GOING. SO THOSE ARE MY QUESTIONS THAT I'LL FOLLOW UP WITH YOU ABOUT LATER. COUNCILMEMBER RIVERA YOU HAD ONE MORE QUESTION. -- YES. THANK YOU. CHAIR. I ACTUALLY MEANT TO RAISE

THE OUTREACH. SO RELATED TO THE COMP PLAN. AS YOU KNOW, DIRECTOR QUIRINDONGO, WE HAVE A LOT OF CONSTITUENTS WHO HAVE FELT A LACK OF COMMUNICATION COMING FROM THE FROM YOUR OFFICE, FROM OPCD. AND I

JUST WANT TO MAKE SURE THAT THERE IS A PLAN, A ROBUST PLAN TO ENGAGE FOLKS AS WE CONTINUE EVERY ITERATION OF THE COMP PLAN. THIS IS REALLY IMPORTANT TO CONSTITUENTS. AS YOU KNOW, AND I REALLY

APPRECIATE THAT WHEN YOU AND I TALK, I KNOW YOU ALWAYS GET BACK TO ME WHEN I REACH OUT. AND ALSO THE ONE I ACKNOWLEDGE WHEN CONSTITUENTS REACH OUT TO THE OFFICE, THEY'RE NOT ALWAYS GETTING THAT LEVEL

OF COMMUNICATION AND OUTREACH. AND THEN IT MAKES IT DIFFICULT BECAUSE WE HEAR ABOUT THAT. SO WHATEVER I CAN DO TO HELP THE DEPARTMENT MAKE SURE THAT THEY ARE COMMUNICATING WITH CONSTITUENTS,

RESPONDING BACK TO CONSTITUENTS, AND EVEN BETTER, PROPHYLACTICALLY REACHING OUT TO CONSTITUENTS, AS YOU ALL ARE DOING THE COMP PLAN, EVERY PIECE OF THE COMP PLAN WORK THAT IS IMPORTANT. SOME MEMBERS

OF YOUR TEAM FEEL LIKE BECAUSE THEY DID ONE POSTING OR ONE TOUCH POINT, THAT THAT IS SUFFICIENT. BUT THAT'S NOT HOW CONSTITUENTS FEEL IT. AND I KNOW YOU KNOW ABOUT THIS. SO BECAUSE I, I MEAN, AGAIN,

RICO YOU AND WE'VE KNOWN EACH OTHER A LONG TIME. SO I KNOW YOU HEAR ABOUT THIS, BUT THIS IS REALLY IMPORTANT BECAUSE THIS IMPACTS THE ENTIRE CITY FAMILY. AND SO JUST WHATEVER I CAN DO TO WORK TOGETHER

TO MAKE SURE THAT WE'RE DOING THAT. OPCD IS OPCD IS DOING THAT ROBUST OUTREACH. I WANT TO BE A PARTNER IN THAT BECAUSE I WANT TO MAKE SURE MY CONSTITUENTS FEEL THOSE TOUCH POINTS OUT OF OPCD. THANK

YOU, CHAIR. TALKING SUPER FAST. -- THANK YOU. BACK TO THE COMMITTEE TABLE FOR ANY RESPONSE. -- I APPRECIATE THAT. THANK YOU. COUNCILMEMBER RIVERA. I WOULD SAY A COUPLE THINGS. WE ARE WORKING ON A PLAN

FOR THE NEXT PHASE. SHORT VERSION. BECAUSE OF THE DELAYS RELATED TO PHASE TWO LEGISLATION AND THE LITIGATION UNDERWAY, THE $100,000 THAT WAS IN THE BUDGET FOR 2026, FOR COMMUNITY ENGAGEMENT, WE I MADE

A DECISION THAT WE NEEDED TO HOLD ON THOSE DOLLARS, WHICH WE HOPE TO DIP INTO NOW IN 2027, AS WE AS WE KICK OFF A NEW COMMUNITY ENGAGEMENT. RIGHT NOW, YOU KNOW, WE HAVE BEEN TALKING FOR THE OUTREACH

THAT HAS FOR FOR PEOPLE THAT HAVE REACHED OUT TO US. WE HAVE TRIED TO BE RESPONSIVE THIS YEAR RELATED TO WHAT ARE WE WORKING ON? WHAT WHAT LAYS OUT AHEAD OF US. AND THEN WE'RE ALSO WORKING WITH

DEPARTMENTS TO PUT TOGETHER A NUMBER OF ONE PAGERS THAT PROVIDE INFORMATION THAT ARE KIND OF FREQUENTLY ASKED QUESTIONS, WHETHER IT'S RELATED TO INFRASTRUCTURE, SIDEWALKS, WATER SERVICES ISSUES THAT

OFTEN ARE OPEN SPACE, THINGS THAT OFTEN COME UP WHEN WE'RE IN COMP PLAN MEETINGS. AND THEN WE ARE ALSO TRYING TO RESPOND TO ORGANIZATIONS AND INDIVIDUALS AS WE ARE CALLED TO RESPOND. SO, FOR EXAMPLE,

I'M GOING TO A ONE OIRA EVENT THIS EVENING TO TALK ABOUT OUR COMP PLAN WORK. WE HAVE A MEETING AT THE END OF THE MONTH TO SPEAK WITH A NUMBER OF SUSTAINABILITY AND ENVIRONMENT STAKEHOLDER GROUPS THAT

WANTED TO PROVIDE US SOME GUIDANCE. SO I APPRECIATE THE QUESTION. I THINK THE THE ANSWER IS FOR NOW, IN 26, OUR COMMUNITY ENGAGEMENT IS INFORMAL. AND IN. 27 WE WILL WE WILL BE ABLE TO OUTLINE AND

PRESENT A FORMAL COMMUNITY ENGAGEMENT PROCESS. -- I JUST THINK I APPRECIATE THAT. I JUST WANT TO MAKE SURE THAT THE INFORMAL REACH OUTS ARE EQUALLY AS IMPORTANT AND AND THAT'S WHERE I FEEL LIKE THERE

COULD BE IMPROVEMENT. WE'LL SEE IT THAT WAY. SO AGAIN, WE CAN TALK MORE ABOUT THIS. THANK YOU CHAIR. -- THANK YOU. AND THANK YOU, COUNCILMEMBER RINCK, FOR INDICATING YOU'LL ASK QUESTIONS ON SHAREPOINT

AND COLLEAGUES AS WELL. COUNCILMEMBER LIN IS CHAIR OF THE COMMITTEE OVERSEEING THE DEPARTMENT. YOU ARE RECOGNIZED TO CLOSE US OUT, AND THEN I'LL HAVE A FEW CLOSING REMARKS, AND THEN WE WILL BE DONE.

-- ALL RIGHT. THANK YOU, CHAIR. JUST QUICKLY, FIRST, JUST ON EDDIE, I JUST WANT TO HIGHLIGHT THE IMPORTANCE OF EDDIE. I MEAN, COLLEAGUES HAVE SPOKEN TO IT. WE. BUT JUST WHAT AN IMPORTANT GENERATIONAL

INVESTMENT IT IS. YOU KNOW, IT HAS NOT BEEN AROUND THAT LONG. BUT, YOU KNOW, THESE INVESTMENTS ARE I THINK, YOU KNOW, WE'RE GOING TO LOOK BACK IN TEN, 20, 30 MORE YEARS. AND THESE ARE GOING TO BE

CRITICAL CULTURAL INSTITUTIONS THAT I THINK WE'RE GOING TO LOOK BACK AND, YOU KNOW, BE VERY THANKFUL FOR THAT INVESTMENT THAT WE'RE MAKING TODAY. SO THANK YOU FOR THAT. TODAY'S EARTHQUAKE. WOW. QUITE

A REMINDER OF JUST THE IMPORTANCE OF PLANNING AND UNDERSTANDING THAT WE LIVE ON, A, YOU KNOW, AN UNCERTAIN GROUND. AND THERE ARE CRITICAL AREAS THAT WE NEED TO THINK MORE ABOUT. THE UNREINFORCED

MASONRY THAT IN PIONEER SQUARE C, I'D. ANYWAY, JUST JUST REINFORCES WHY THIS PLANNING WORK IS SO CRITICAL. AND YEAH. SO THANK YOU FOR ALL YOU DO. THANK YOU CHAIR. -- THANK YOU. COUNCILMEMBER LIN. I

FORGOT TO ASK YOU ALL. DID YOU WANT ANY LAST WORDS? NO. OKAY. I WILL JUST CONTEND WITH YOU. COUNCILMEMBER LIN THESE ARE NOT UNCERTAIN GROUNDS. THEY ARE FILL ON TOP OF FAULT LINES. -- WELL, THERE YOU

GO. -- ALL RIGHT. -- JUST SO WE'RE ALL CLEAR. WELL, WITH THAT, THAT BRINGS US TO THE END OF THIS SEGMENT OF BUDGET DIRECTOR PENNUCCI. ANY CLOSING WORDS THAT YOU WANT FOR THIS SEGMENT? THIS IS YOUR

LAST DAY OFFICIALLY AT THE TABLE. WE MAY ELECT TO ASK YOU TO COME BACK, BUT THIS IS YOUR LAST DAY OFFICIALLY HERE. -- DO YOU WANT ME TO TALK ABOUT ONE TIME SPENDING ONE MORE TIME? JUST JUST JUST

KIDDING. JUST A LITTLE BREVITY. JUST A LITTLE BREVITY AT THE END. JUST. THANK YOU. SURE. -- LET'S HEAR IT AGAIN. ALY. ONE MORE TIME. -- TO ANSWERING MORE QUESTIONS AS YOU MOVE THROUGH YOUR PROCESS AND

COMING OUT THE OTHER SIDE AT THE END OF NOVEMBER. THANK YOU. -- THANK YOU. I MEAN, WE'RE STILL GOING TO BE TALKING EVERY DAY. I WILL SAY THAT, COLLEAGUES, DIRECTOR AND I HAD A MISCOMMUNICATION, NOT IN

AN ACADEMIC WAY, IN A WAY THAT I DIDN'T COMMUNICATE WELL. SO TAKING RESPONSIBILITY IN PAST YEARS, WE'VE HAD THE DEPARTMENTS THAT DON'T PRESENT ALSO CREATE POWERPOINTS. I DID NOT MAKE THAT REQUEST IN

THE TRANSITION THIS YEAR. SO I'VE MADE THAT REQUEST FOR NEXT YEAR. LISH HAS ASSURED ME THAT ALL OF THE INFORMATION THAT WOULD BE IN THOSE POWERPOINTS, CENTRAL STAFF WILL BE PRESENTING. AND SO I'M NOT

FEELING A LOSS HERE, AND I'M TAKING ACCOUNTABILITY FOR MISSING THAT STEP IN THE TRANSITION. WE DO. AS YOU ALL KNOW, WE'RE COMING ACCUSTOMED TO IT. PLEASE USE SHAREPOINT, OUR NEXT GATHERING OF THE

SELECT BUDGET MEETING BUDGET COMMITTEE WILL BE THE PUBLIC HEARING ON OCTOBER 6th. VIRTUAL STARTS AT 1 P.M. IN PERSON, STARTS AT 5 P.M. INDIVIDUALS WILL HAVE ONE MINUTE 30s GROUPS OF THREE OR MORE WILL

HAVE FOUR MINUTES AND 30s GROUPS ARE DIFFICULT TO DO VIRTUALLY, YET WE WILL MAKE THAT ACCOMMODATION. IF THAT'S YOUR PREFERENCE. OUR NEXT SEGMENT AFTER THE PUBLIC HEARING WILL BE CENTRAL STAFF

PRESENTATIONS. AND SO I KNOW YOUR TEAM IS WORKING HARD. DIRECTOR WHITSON AND THEN AFTER CENTRAL STAFF PRESENTATION. SO WE WILL HAVE A VERBAL PUBLIC COMMENT THERE ON OCTOBER 13th AS WELL. AND THEN THE

NEXT DEADLINE IS THE OCTOBER 20th NOON DEADLINE FOR COUNCILMEMBER PROPOSALS TO BE SUBMITTED WITH TWO CO-SPONSORS. AND YOU ACTUALLY HAVE TO GET THE CO-SPONSORS. YOU CAN'T JUST KIND OF ASK PEOPLE. SO

WITH THAT, ANY FINAL BUSINESS, ANY ANYTHING FOR THE GOOD OF THE ORDER, THIS DOES CONCLUDE THE. TUESDAY, SEPTEMBER 29th, 2026 BUDGET COMMITTEE AND DEPARTMENT BRIEFINGS AND OUR NEXT REGULAR COMMITTEE

WILL BE ON OCTOBER 13th AS DISCUSSED. WE'LL SEE YOU ALL ON OCTOBER 6th. FOR THE PUBLIC HEARING. THERE'S NO FURTHER BUSINESS. WE WILL BE ADJOURNED. HEARING NO FURTHER BUSINESS. WE ARE ADJOURNED.