Housing Stability Program

Funding may be used for the capital costs of constructing or acquiring affordable housing, which may include emergency, transitional and supportive housing and new units of affordable housing within an existing structure. Such costs may include:

• Land acquisition, including related costs such as appraisals, environmental reports, excise tax, recording fees and other transaction costs
• Acquisition of existing buildings, including related costs such as a property condition report, environmental report, capital needs assessment, appraisals, and other transaction costs
• Construction activities, including site development, building construction, renovation or conversion of existing properties, and related sales tax.

Funding may also be used for operations and maintenance costs, including on-site supportive services, of new units of affordable housing within projects funded with City capital funds. Such costs may include, but are not limited to: utilities, maintenance, insurance, property taxes, pest control, on-site and off-site property management staff, case management staff, behavioral health staff and other supportive services staff dedicated to the project.

Applicants must demonstrate the capacity to develop, own and operate the proposed project. Eligible entities include:

• nonprofit organizations
• private for-profit organizations
• public housing authorities
• public development authorities
• units of local government

Partnerships involving combinations of the above groups are encouraged, especially when necessary to demonstrate capacity in all areas of the project.

Proposals will be evaluated against the following criteria:

• Cost - Financial feasibility and/or cost effectiveness of the project
• Agency Capacity - Capacity of the applicant team to develop and operate the project
• Leveraging - Leverage of multiple and/or non-City funding sources
• Housing Model - Demonstrated success of diverse housing models in creating long-term housing stability for the proposed population(s) as specified in RCW 82.14.530, including but not limited to affordable family housing; senior housing; transitional housing; permanent supportive housing; group homes for individuals with disabilities; public housing; and mixed income housing
• Citywide Approach - Geographic distribution of housing opportunities across Bellevue
• Project Readiness - Ability to deploy funds quickly and respond with urgency to the current housing crisis
• Partnerships - Demonstration of committed partnership(s) and collaboration with other entities to develop and operate project
• City Planning - Meet critical needs and gaps as identified in City planning documents
• Equity – Projects that serve underserved populations and address the disproportionate impacts of homelessness and housing instability on communities of color

Consistent with past practice in funding projects through the ARCH Housing Trust Fund, awards for capital funding will be made available as either secured grants or loans. The city is willing to offer flexible terms designed to accommodate a range of projects. Most common loan terms are (a) interest only loans, (b) interest only loans with an initial deferral period, and (c) deferred loan until note maturity. ARCH will evaluate the proposed terms, and Cities will make the final determination of which form of assistance will be offered to successful applicants. Loans will be offered whenever feasible without sacrificing initial or long-term affordability. Loan applicants will not receive priority over grant applicants. 

Projects must generally commit to providing long-term affordability in the form of a 55-year regulatory agreement. Such agreements will include both income and rent restrictions and other eligibility criteria to ensure that occupants meet the requirements of RCW 82.14.530. 

If the project is converted to an alternative use or becomes non-affordable at any time during the project's agreed-to term of affordability, the city’s contribution to the project, whether in the form of a grant or a loan, will be subject to immediate repayment, and potentially a proportionate share of appreciation. 

Awards for OMS, including on-site services, will be provided initially as 5-year renewable contracts. Funds will be disbursed on a reimbursement basis for eligible expenses. Grants may be extended in 5-year increments based on consideration of contract performance and for the duration of the term of affordability under any City covenant. 

Note: This section does not cover all the standard terms and conditions included in agreements for city funding. Applicants may contact staff with any questions about other boilerplate provisions. 

Additional funding conditions will be spelled out in an award letter to successful applicants. At a minimum, the following reporting requirements shall apply during development and occupancy:

Quarterly Status Reports 

Quarterly status reports are required from all funded projects during the development stage (from the time funds are awarded until completion and occupancy of the project). The quarterly reports for capital funding will include, at a minimum, the status of funds expended and progress to date. A final budget must be prepared and submitted at the time of construction start and project completion. Staff will rely on the reports to determine if satisfactory progress is being made on the project and funds are expected to be contracted within 12 months of council adoption. OMS reporting will be conducted with City of Bellevue Human Services team.

Ongoing Monitoring 

After occupancy, the project sponsor or manager must submit an annual report summarizing the number of project beneficiaries, housing expenses for the target population and other eligibility criteria established in the regulatory agreement. In addition, for projects with loan payments, financial information must be reported annually which will be used for assessing contingent loan payments and project health. Projects with OMS awards will also be monitored by the City of Bellevue Human Services team. All projects will also be evaluated periodically for long term sustainability. The annual reports will be required for the full duration of affordability.

Proposals will be reviewed using the following process: 

1. ARCH staff will conduct an initial screening of applications to determine the completeness of each application. Staff reserves the right to deny applications that are incomplete.

2. ARCH staff will prepare a summary document and analysis of the proposals and will evaluate whether each proposal meets the population and income level eligibility requirements by RCW 82.14.530.

3. A City of Bellevue interdepartmental staff team with experience in affordable housing, land use and permitting, supportive services, and housing-related services will review and discuss the applications; ARCH staff may request additional clarifications from applicants to support the evaluation of the staff team.

4. Staff will develop a written funding recommendation and conditions based on the recommendation of the staff review team. In the fall round, this will occur concurrently with ARCH review and recommendation process. Applicants will be provided with an opportunity to review and comment on proposed funding conditions.

The City Council will review and approve the funding recommendation submitted by city staff, or will return the recommendation, with comments, for further review before a final decision is reached. The council may choose not to award a proposal during a funding round, to reject any and all proposals, and to bank revenue for future funding rounds.