Friday, March 29, 2024

Chelan Council hears updates on Chelan Valley Housing Trust

Trust to construct first 10 -20 homes in 2019

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CHELAN – As requested by the Chelan City Council during a budget workshop back in October, Rachel Goldie of the Chelan Valley Housing Trust presented the latest updates on the non-profit on Tuesday (Nov. 13) evening’s meeting.

In October, Mayor Mike Cooney representing the Chelan Valley Housing Trust had an ask for the Council, which involved the City’s help in form of a grant of $100,000 to help with subsidize GFC fees.

Cooney also asked for the City to pledge $20,000 a year over the next five years in order to help cover development fees and permits.
Before Goldie started her presentation, she thanked the Mayor, the Council and the Planning Department for focusing on affordable housing.

“We are talking about homes, this is where people get to be their true self. This is a place where they make memories with their families and having the opportunity to have that is a huge deal,” said Goldie.

Chelan is home to many, however over the years housing costs have gone up dramatically. “The current median home price is at nearly $400,000.”
Fifty percent of the local population cannot afford those homes because their income is usually less than $50,000, this makes it difficult for employers to find “adequate labor.”

At the same time, the senior population is becoming more vulnerable to poverty and  homelessness. When it comes down to attracting new industries, there’s also trouble.

The City and the County have been working on affordable housing ordinances to help organizations such as Habitat for Humanity and other non-profits’ efforts.

Yet, “there’s still something missing.” Goldie believes that the CVHT can partner up with the City as an “effort to improve the housing market,” through private fundraising.

Three major features of the CVHT include, “serving a variety of incomes and households who are cost burdened, promises a permanent investment in the community because the it is own and run by the community, while maintaining Chelan’s character and diversity.”

Affordable housing is defined as “not spending more than 30 percent of ones income on housing.” At the moment Chelan needs 80 homes to reach a healthy vacancy rate, “I believe that by providing single family home opportunities, we will help get that vicinity rate level,” said Goldie.

Over the next 20 years, CVHT estimates to have 335 units. They will start with 900 to 1,100 sq. ft single family homes, however “this will vary as capacity and need grows and changes.”

The CVHT will have “limited restrictions for who is going to be in the homes.” Income qualifications have to be in between $30,000 to $50,000 a year range. To qualify one must also take a home ownership class, “we will be providing home ownerships classes and being able to be educated home owner is going to be a huge piece.” The last piece then is to qualify for USDA or any conventional loan from the CVHT lenders.

A tripartite board represents the organization. It is made up of leaseholders, the general community and business and public institutions. The board is also advised by different subcommittees, one of them being a  fundraising committee.   

For the next five years, CVHT has set some goals.
    •    2018 – incorporation, marketing and message development, initial fundraising, site research and planning.
    •    2019 – formalization of board, fundraising master plan, site development, Home Owner recruitment, construction of first 10 to 20 homes, vetting next projects.
    •    2020 - fundraising, build next 10 to 20 homes, project vetting for next site .
    •    2021 – fundraising, build next 10 – 20 homes, project vetting for next site.
    •    2022- fundraising, build next 10 – 20 homes, project vetting for next site.

In terms of fundraising, Goldie reported that they have about $70,000 out of their $250,000 goal. “I think we will meet our goal … we are currently vetting out about five different properties and hopefully one of these will turn out.”

North Cascades Bank has offered CVHT “a $2 million construction loan, “as soon as they get any land donation, “once we have the land we can build the houses and that is a very big deal, in 2019 we can have 10 – 20 homes in the ground at least,” said Goldie.

Goldie explained to the Council that their $100,000 donation for subsidy hookups “will rollover for next year,” in case not all the money is used, on the other hand the $20,000 contribution will go to an operational fund.

Council members had a few questions for Goldie. Ty Witt asked, “what is $250,000 being used for?” In short Goldie responded that such money will fund an operational fund, "We need to make sure the organization has the staff it needs, the tools it needs to manage and steward the land.”
The organization has their bylaws created, yet are not an official 501 (c ) 3. “We are hoping that by the end of December we have all this figured out,” said Goldie.

“It is a big ask, so we want to make sure some of the foundation pieces are in place,” said Councilwoman Erin McCardle. McCardle explained that this ask is setting the standards for every other organization that comes in front of Council to ask for any type of monetary support.

McCardle also asked Goldie if the organization had a business plan, which at the moment they do not. She also thinks there should be an exact breakdown of the where the funds are going to be spent and be reported to Council.

Mayor Cooney wrapped up the presentation by saying, “this got started in the very first part of January and I think there’s great progress to date, if this organization is not the one to handle it, who will be?”

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