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Team Spotlight: Compliance Asset Management

Each month, we highlight the work of a team in the Multifamily Housing Unit. In May, we’re featuring the Compliance Asset Management Team, led by Teri Lawless.

After an affordable housing investment is placed in service, it’s transferred to our Compliance Asset Management (CAM) team. The team ensures that our Housing Trust Fund (HTF), HOME and NHTF portfolio are serving communities with high quality affordable housing for generations.

2023 saw 40 communities placed in service, and the CAM team oversees contract and programmatic compliance for the whole term of contract, between 20 and 50 years. As of the 1^st quarter 2024, there are 84 housing projects close to opening and becoming part of the portfolio. Currently, CAM oversees contract and programmatic requirements for 1,234 contracts, of which 6% are federal HOME /National Housing Trust Fund (NHTF) programs and remaining are State HTF.

The CAM Team does this work by performing Annual Reporting Reviews (ARRs) and by conducting onsite inspections, also known as monitoring. Monitoring inspections include reviewing property documents, annual reporting systems, tenant files, building/unit inspections per Uniform Physical Condition Standards (UPCS), and completing a final report of each inspection. ARRs are desk reviews of property documents and reporting systems. In both ARRs and monitoring, CAM provides technical assistance support to contractors.

The 2024 monitoring season began April 1^st. Between Sarah Dunn, Compliance Asset Management Lead, and Josh Peck and Tracy Aiken, Compliance Asset Managers, the team has visited over 40 projects in April. With a full inspection team, it’s anticipated we’ll be able to complete over 240 inspections by the end of October.

For every contract and/or contract change, Sarah Blackburn, CAM Data Specialist, updates the project in WBARS (Web-Based Annual Reporting System). Sarah B. oversees the Commerce WBARS inbox (wbars@commerce.wa.gov), provides WBARS technical assistance to contractors, and ensures data is correct in MHU systems.

The CAM Team will be welcoming Susan Bostain on May 15^th as a Compliance Asset Manager, and our team will be fully staffed.

I’ve been the CAM Supervisor for a little over a year and it’s been an absolute honor supervising the CAM Team! Everyone on this team is dedicated to providing excellent internal and external partnerships and taking compliance work to a new level. This work is hard, and we accomplish it with resourceful strategies and great teamwork!

– Teri Lawless, Compliance Asset Management Supervisor

Application Workshop Trainings Now Available

Looking for guidance on how to complete a 2024 application and the criteria used to evaluate applications for multifamily/rental housing projects seeking capital funding? Agenda and supporting materials will be available on the Department of Commerce Box as the events approach.

Four in-person workshops are currently scheduled:

1. Seattle – May 13th, Pacific Tower – Panoramic Room (Workshop: 11 am to 2pm. Q&A: 2 pm to 3 pm.)
2. Vancouver – May 20th, Clark College – Penguin Union Building Room 258C (Workshop: 11 am to 2 pm. Q&A: 2 pm to 3 pm.)
3. Spokane – June 5th, Spokane Community College – Sasquatch Room (Workshop: 11 am to 2 pm. Q&A: 2 pm to 3 pm.)
4. Yakima – June 10th, Yakima Arboretum – Gardenview Room (Workshop: 12 pm to 3 pm. Q&A: 3 pm to 4pm.)

Register now for the in-person workshops.

Virtual workshops will be available during 2024 application rounds. Check our Resources & Trainings page for the latest information.

Handbook Update Process

Over the course of 2024, the Housing Trust Fund will be providing multiple opportunities to get oriented to and provide input on the updates to the HTF Handbook, as we engage in a multi-part chapter-by-chapter public review process.

Register now for the public review meeting of changes to Chapter 5 on May 14, 2024 from 1:00 pm to 2:30 pm via Zoom. You will receive an email with instructions on joining the meeting after registering.

You can always find the most up-to-date information on the Handbook review process on the Resources & Trainings page on the Housing Trust Fund website.

We’re Hiring!

We currently have two Project Management openings in the federal team. The State Housing Program Manager, leading our resource allocation of state funds, will be advertised and available in May. Our Administrative Assistant 3 position will soon be posted. Find the latest information on the  Jobs at Commerce page.

Housing Trust Fund in the Press

• Washington’s Housing Trust Fund explained | Washington State Standard
• Leaders, future tenants celebrate Bellingham housing project | Bellingham Herald
• Chief Seattle Club Opens 120-Unit Sacred Medicine House Affordable Housing Project – The Registry

Since 1986, the state’s Housing Trust Fund has invested over $2 billion in capital funding and helped build or preserve more than 58,000 affordable housing units statewide.

The Washington Legislature makes biennial appropriations in the capital budget and directs the Department on how to invest the funds. The Housing Trust Fund provides capital financing through loans or grants to affordable housing projects through annual competitive application cycles.

You can always find the latest information on the Housing Trust Fund at commerce.wa.gov/htf. We welcome feedback on the Housing Trust Fund newsletter at HTFStakeholderCommunications@commerce.wa.gov.

Message from the Managing Director

I wanted to share our affordable housing community that I have decided to take on a new assignment in the Multifamily Housing Unit and will serve as the unit’s Housing Investment Manager effective 4/16. I believe the transition will help the unit best implement our strategic priorities to make affordable housing outcomes in Washington the best in the country.

Since we established the Housing Investment Team in 2023 (see the profile of HIT in our February newsletter), it has allowed us to focus more on equity, community outreach and policy — areas where my personal passion flourishes.  I welcome the opportunity to serve in this capacity, and to dedicate the time to work with our communities across the state.  I am grateful to Housing Division leadership for the support to navigate this transition.

We will continue working closely to help ensure the transition is as easy as possible for all of our contractors and the public input processes we are continuing to engage in.  The hiring process for a replacement will be thoughtful and inclusive, and I’m excited to see the division recruit a new leader to champion this work.  Starting on the 16th, Shawn Slape will serve as an Acting MD to allow me to shift to the new position.

– Nate Lichti

Team Spotlight: Asset Management

Each month, we highlight the work of a team in the Multifamily Housing Unit. In April, we’re proud to share introductions from our Asset Management (AM) team. Our AM team handles transfers, restructures, and changes to the scope of existing projects in the Housing Trust Fund portfolio. You can reach Asset Management team at the HTF Portfolio Management Inbox: htfportfoliomgmt@commerce.wa.gov.

Mark Kollmansberger – CS5 Asset Management Team Supervisor:

My name is Mark Kollmansberger, and I have the pleasure of leading an amazing team of dedicated Asset Managers (Milena Jelaca, Rayah Rooks, Dawn Perlman, Jim Porter, Ryan Beeler, Denice Hurley and Jessica Mount), who work tirelessly to oversee, manage and process contractor requests for amendments and contract service change requests for the more than 1,844 active contracts that make up the HTF portfolio.

Over the course of 40 or 50 years, the communities represented in the portfolio go through a lot of changes.  Accordingly, project owners need to refinance their project to deal with maintenance, modify populations being served, and remedy compliance issues.  Each of these go through our team, and there are hundreds of requests annually.  In each situation, our team is focused on preserving the affordable housing asset for the benefit Washington residents.

I’m approaching my 5^th year anniversary with COM in July and have worked in the multi-family/commercial financing industry since 2008.  I find working at Commerce, leading a team, and making a difference in the lives of our constituents extremely rewarding and look forward to seeing all that this dream team will do together in the years to come and could not feel more blessed.

Continuing Affordability Awards – Commerce makes $4.4m in awards to preserve affordable housing

Three (3) awarded projects will preserve seventy (70) units of affordable housing

The Washington State Department of Commerce is announcing investments in three properties that will protect the affordability of housing in rural communities. The funds will help preserve multifamily rental units in projects that are at risk of losing their affordability due to expiration of use restrictions.

The funding was appropriated by the Legislature in ESSB 5200, Section 1022(5). Applications were solicited under the 2023 Continuing Affordability NOFA #MHU-2023-05, published in October of 2023, which provided specific information regarding eligibility, funding requirements and priorities, the process for applying, and dates of significance. Six applications were received.

The review of applications was prioritized around five criteria: location and scarcity, urgency, readiness to proceed, number of units to be preserved, and projects at-risk of losing federal rental assistance.

The total development cost for the awarded projects is approximately $8.1 million. These projects will preserve 70 affordable housing units, 100% of which are in rural communities will retain federal rental assistance as a direct result of these funds.

• Review the 2023 Continuing Affordability NOFA. (#MHU-2023-05) here
• The list of applications received can be found here.
• The list of awarded projects can be found here.

These projects provide critical housing to some of Washington’s most vulnerable populations. Preservation of existing affordable housing is a critical part of the Multifamily Housing Unit’s vision to make conditions in our state for affordable housing residents the best in the nation, addressing the affordable housing crisis and reducing homelessness in permanent and sustainable ways.

Handbook Update Process

Over the course of 2024, the Housing Trust Fund will be providing multiple opportunities to get oriented to and provide input on the updates to the HTF Handbook, as we engage in a multi-part chapter-by-chapter public review process.

A revised version of Chapter 2 (Funding Guidelines) and 3 (Application Requirements) are now available on the Department of Commerce Box.

You can fill out a brief survey to indicate your thoughts on key changes in these chapters.

Commerce is also accepting feedback and input on this revised HTF Handbook chapter via email. Contact HTFStakeholderCommunications@commerce.wa.gov with your input by April 4, 2023. Use the subject line “HTF Handbook: Chapter 2/3” with your email.

Commerce will soon release revisions of Chapter 4 and 5 for public review via email and online. Register now via Zoom for an April 23, 2024 meeting at 1 p.m. to discuss these changes.

You can always find the latest information and links on the HTF Handbook revision process on the Resources & Trainings page.

Biennial Investment Strategy Forum

The 23-25 Biennial Investment Strategy explains how the Multifamily Housing Unit (MHU) plans to administer capital funds appropriated to it in the 2023 and 2024 legislative sessions. MHU endeavors to be pro-equity, quality driven, collaborative and relationally driven. The document will be continually updated, and MHU will host a public forum on upcoming proposed changes to the strategy.

Register for the April 16, 2024 public meeting (1 pm-2:30 pm) via Zoom.

More details will be provided via email prior to the public forum. For questions, please contact Analilia.Nunez@commerce.wa.gov for assistance.

Affordable Housing Technical Assistance Program

The need for housing, especially housing affordable to low and moderate income households, continues to be a major issue across Washington. However, bringing a housing project to fruition, whether it be multi-family rental or single family homeownership, is challenging for even the most experienced developers.  The process of finding a suitable site, conducting due diligence studies, navigating local, state, and federal codes, and developing a feasible project concept are expensive, high-risk early development costs. Yet all of this is necessary before an entity can even begin to complete the applications for a critical Housing Trust Fund award. In rural parts of Washington, the picture is further complicated by a lack of organizations willing and able to take on the work.

Starting in 2022, GS Consulting, together with the Office of Farmworker Housing began working with the Department of Commerce to support jurisdictions and organizations in rural areas to develop housing to meet local needs. Technical expertise was provided in the areas of design and financial feasibility, project concepts and messaging. This opportunity has been renewed for 2024-2025 and expanded to focus on by-and-for organizations in addition to rural projects. If you think your organization might benefit form technical assistance (TA), visit Commerce’s website.

TA Project Spotlight: Housing Lopez

One of groups helped from the TA program is Housing Lopez in San Juan County. Housing Lopez is a new organization formed to create affordable rental housing on the Island – a niche that no existing group was stepping into.  The Board had a lot of skills with retired contractors and non-profit administrators, but they lacked the track record for constructing rental housing.  RTA was able to step in and help fill the gaps to get a project through feasibility and on the road to being constructed.

Housing Lopez had secured approximately 9.8 acres of land in the Lopez Village area for development of affordable housing, with the potential of acquiring additional parcels outside of the Village. They envisioned developing approximately 56 units in 3-4 phases over several years, with the first phase being approximately 16 units. Technical assistance through the TA program allowed the group to first conduct a housing needs assessment to inform Housing Lopez’s decision-making regarding which groups are the highest priority target population(s) for the first and later stages of housing development.

With the housing assessment complete, TA continued to assist Housing Lopez with coordinating site due diligence studies and reports, including a Phase 1 assessment, an appraisal, historic and archeologic reviews, and a wetlands study. A large part of the technical assistance included architectural design and civil engineering services to make sure the project was properly designed. Finally, the technical assistance team provided financial feasibility services and identified potential financing sources and funds for not only construction but for ongoing operations and maintenance. All this assistance allowed Housing Lopez to prepare the detailed application required to compete for a Housing Trust Fund award. The application resulted in a $3.4 million Commerce award and Housing Lopez secured funds needed to develop a 15-unit, $6.6 million first-phase of development, some of which is reserved for homeless families.

Housing Trust Fund in the Press

• $3m Direct Appropriation for Assisted Living Facility in Klickitat County — Columbia Community Connection News Mid-Columbia Region
• Co-living residential housing is coming to Washington after Inslee signs bill into law | The Spokesman-Review
• ‘We’re still a long way off’: Vancouver closing gap between housing, residents’ needs; more work to be done – The Columbian

Since 1986, the state’s Housing Trust Fund has invested over $2 billion in capital funding and helped build or preserve more than 58,000 affordable housing units statewide.

The Washington Legislature makes biennial appropriations in the capital budget and directs the Department on how to invest the funds. The Housing Trust Fund provides capital financing through loans or grants to affordable housing projects through annual competitive application cycles.

You can always find the latest information on the Housing Trust Fund at commerce.wa.gov/htf. We welcome feedback on the Housing Trust Fund newsletter at HTFStakeholderCommunications@commerce.wa.gov.

Team spotlight: Contracts Fiscal

Every month, we highlight the work of a team within the Multifamily Housing Unit (MHU). This month, we’re proud to spotlight the Contracts Fiscal team: Manager Taylor Burton, Nathan Hayes, Michael Miranda, Leilani Hesser, Beau Hamilton, and Cam Ho.

2023 was an exciting and busy year for the Contracts Fiscal Team in the MHU. Contracts Fiscal received a near record-breaking amount of projects, a new supervisor, and a slew of updates to contract language and statutes.

The Contracts Fiscal Team is a team that works on nearly every project or activity undertaken by the unit.  The Contracts Team drafts and executes State and Federal Contracts for funding affordable housing projects, as well as the security and legal documents tied to these contracts. The Contracts Team’s work with the Portfolio Management team includes contract amendments and minor scopes of work for all projects in the portfolio of over 1,600 properties.

In 2023, Contracts Fiscal received a total of 195 project submissions. New contracts accounted for 112 projects, while amendments totaled 83 projects. Of all of the projects that were submitted throughout 2023, Contracts Fiscal executed 106 new contracts and 51 amendments. 5 projects were withdrawn, and the remaining projects submitted in 2023 are pending execution in 2024. The Contracts Fiscal Team took the number of projects we received in stride and each team member was a major contributor to the work the MHU accomplished.

Some notable projects that Contract Fiscal team worked on throughout 2023 are:

• Denny Apartments-YWCA of Seattle-King County-Snohomish County- This project was a Rapid Capital acquisition of a PSH project consisting of 91 units of affordable housing with a total award of $20,000,000.

• Pacific Apartments- Rehabilitation of 87 affordable units in Seattle. The re-syndication of units was a complicated process that involved nearly all hands-on deck.

• Josephinum Apartments- Archdiocesan Housing Authority- Catholic Housing Services of Western Washington- This project was one of the largest unit counts of 2023, with the acquisition of 222 affordable housing units!

Affordable Housing Advisory Board and reimagining of the Policy Advisory Team

Commerce accepted public input on the proposal for a Reimagining of the Policy Advisory Team (including a Community-Based Housing Advisory Committee) that was released on Dec. 1, 2023. You can read the summary of the survey results and comments provided in Box.

Commerce met with stakeholders, reviewed this information, and provided a programmatic response indicating the path forward for the newly named Community Advisory Team.

The amended bylaw language, details of the CAT formation plan, and a message from the AHAB and PAT Chairs can be accessed in the AHAB Materials Box.  

There will be a public forum to discuss the next steps in implementing a Community Advisory Team. You will receive an email with instructions on joining the meeting after registration.

• March 5, 1 p.m. – Register (Zoom)

Registration is now open for the next AHAB meeting. After this discussion, the plan will be presented to the Governor’s Affordable Housing Advisory Board (AHAB).

• March 12, 1 p.m. – Register (Zoom)

Housing Portfolio Preservation (HPP) applications received

The Washington State Department of Commerce is committed to building communities by preserving affordable multifamily housing in our state.  Commerce made $20 million in state funds to projects already in the Housing Trust Fund portfolio and need of funding to extend their useful life via the Notice of Funding Availability (NOFA) #MHU-2023-04.

Commerce received 72 applications, requesting $55.2 million in funding. Review the list of applications received on Box (PDF). Final funding decisions and awards are expected in March 2024.

These projects provide critical housing to some of Washington’s most vulnerable populations. Preservation of existing affordable housing is a critical part of the Multifamily Housing Unit’s vision to make conditions in our state for affordable housing residents the best in the nation, addressing the affordable housing crisis and reducing homelessness in permanent and sustainable ways.

Handbook update ongoing

Throughout 2024, the Housing Trust Fund will be providing multiple opportunities to get oriented to and provide input on the updates to the HTF Handbook, as we engage in a multi-part chapter-by-chapter public review process.

Registration is now open for the second public review meeting at the end of the month. You will receive an email with instructions on joining the meeting after registration.

• March 26, 1 – 2:30 p.m. – Register  (Zoom)

Chapters 2 and 3 will be released via email and published online before the meeting. You can always find the latest information on the HTF Handbook review process on the Resources & Trainings page of the Housing Trust Fund Website.

Housing Trust Fund in the press

• Land trust model to produce Bellingham affordable homes | Bellingham Herald
• Kennewick, Pasco housing projects get millions in funding | Tri-City Herald

Message from the Managing Director

As we enter a new year, the Multifamily Housing Unit (MHU) is committed to connecting our team of housing experts to stakeholders and engaging in a process of continued learning from the communities in our state.

As part of this engagement, we want to provide a monthly overview of the ways you can get involved with the state’s Housing Trust Fund (HTF). In the first week of each month, the Multifamily Housing Unit newsletter will include funding announcements, new supports and technical assistance for applicants, opportunities for public input in program design, funding opportunities, and positions currently open in the unit.

At MHU, we recognize that we are here to address overwhelming challenges in our communities, serve as stewards of historic investments, and we take seriously the responsibility to connect with communities historically impacted by housing discrimination.” Throughout 2022, we undertook a process of reform in collaboration with the Policy Advisory Team and the HTF Equity Alliance to propose a new public advisory body for Commerce’s housing programs. We look forward to updating you on the next steps for the proposal later this year.

This month, we’ll be announcing award decisions, beginning the update of the HTF Handbook that guides our housing programs, and presenting next steps for predevelopment technical assistance for affordable housing organizations, with many more details below. We look forward to working with you to build communities and connections throughout 2024 and beyond.

Thank you,

Nathan Lichti

Managing Director, Multifamily Housing Unit, Department of Commerce

Register for HTF award announcements

Award Round Presentation: Commerce will make a presentation on the $302m in state funding distributed in the 2023 Multifamily Rental and HOME & NHTF application rounds, representing a record commitment to construction of affordable housing in the State of Washington.

Register now for the presentation at 1:00 pm on Wednesday, January 24th, 2024, via Zoom.

For registration questions, contact katherine.mitchell@commerce.wa.gov for assistance.

Public Input Opportunities

Save the date: Participate in the HTF handbook review process

Over the course of 2024, the Housing Trust Fund will be providing multiple opportunities to get oriented to and provide input on the updates to the HTF Handbook, as we engage in a multi-part chapter-by-chapter public review process.

Sections for review at the first meeting will be released in early February. Save the date and register now for the first public review meeting on Feburary 20, 2024 from 1:00 pm to 2:30 pm.

Funding Opportunities

Planning and Predesign Technical Assistance for Capital Projects

The Washington State Department of Commerce seeks proposals from firms to provide technical assistance to community-based organizations that are in the planning and/or predesign stage of a project that may be eligible for funding from select Commerce capital grant programs. This includes housing and non-housing capital programs, such as the Building Communities Fund, Housing Trust Fund, Youth Recreational Facilities Program, and others.

Up to $2 million is available. Awards will range from $250,000 to $500,000.

LEARN MORE

Pre-Proposal Conference

Potential applicants are encouraged, but not required to attend an online pre-proposal conference to learn more about this opportunity.

Wednesday, Jan. 24, 2024, 1:00 pm Pacific Time

Attend via Microsoft Teams

Timeline

• Q&A Period: Dec. 8, 2023 – Jan. 5, 2024
• Pre-proposal conference: Jan. 24, 2024
• DEADLINE: Proposals due Feb. 12, 2024 by 11:59 p.m. Pacific Time

Q&A available for Housing Preservation Program (HPP) application

Frequently asked questions have been answered for the 2023 Housing Preservation Program NOFA #MHU-2023-04 (open until January 22, 2024). Review the questions & answers, or find all of our application resources on the HTF Resources & Trainings page.