The Seattle Housing Authority says they're funding construction of low-income rental properties that were lost through HOPE VI redevelopment projects.
Working in partnership with the City's Office of Housing, Seattle Housing Authority will release 50 project-based rental vouchers for "selected organizations" to develop housing for extremely-low-income residents, those with incomes below 30 percent of median income, for 40 years.
"With the redevelopment of Seattle Housing Authority's family communities at NewHolly, Rainier Vista and High Point took, low-income units have been 'de-concentrated' from these areas and spread across the city," the agency said in a statement Friday. "Early in the process, Seattle Housing committed to replacing all of the low-income units that were demolished through the redevelopments."
Through a notice of funding availability (NOFA), Seattle Housing and the City are soliciting proposals for use of these 50 project-based vouchers by nonprofit housing developers. Details of the NOFA are available on the Office of Housing website.
Many nonprofit housing developers provide affordable rental housing that meets the needs of residents earning between 30 and 60 percent of Area Median Income. With receipt of the additional subsidy that a project-based voucher provides, a nonprofit housing developer can provide rentals that are affordable well below this level.
This offering of vouchers is designated to subsidize replacement housing for units that were demolished during the redevelopment of the High Point community. Subsidies will support an inventory of housing units that contain two or more bedrooms, and/or serve elderly or disabled households with on-site supportive services. The units must be designated for households with incomes of 30 percent or less of Area Median Income.
The housing developer applying for the voucher must be committed to keeping the housing unit in its inventory and available for rent to low-income residents for at least 40 years.
Preference will be given to mixed-income projects located in neighborhoods that do not already have a high percentage of households subsidized with vouchers.
Because the voucher subsidy is from the U.S. Department of Housing and Urban Renewal, the project will need to undergo a review to determine if any other federal funds were involved in the original financing of the project.
Funding sources requiring this "subsidy layering" review include low-income housing tax credits, tax-exempt bonds, HOME funds and McKinney Supportive Housing Funds that provide funding to house homeless people.