PORT ANGELES — Clallam County has inked an agreement with Peninsula Housing Authority to help pay for infrastructure to redevelop the Mount Angeles View neighborhood.
Commissioners voted 3-0 Tuesday to authorize the chairman to sign a memorandum of understanding with the organization and to direct the Auditor’s Office to cut a $901,200 warrant — the full amount of a previously-approved Opportunity Fund grant.
Grant uses
The housing authority will use the grant to help pay for site preparation, grading, stormwater remediation, curb and gutter, sidewalks, water, sewer, power and communications infrastructure for the Mount Angeles View Phase 1 redevelopment.
The $18.5 million project will replace 33 affordable housing units with 63 new units at the 18-acre family housing complex in Port Angeles.
County commissioners, all of whom have expressed support for the project, raised concerns about the intended use of the grant in a July 3 work session.
At that meeting, County Administrator Jim Jones said it was his understanding that the money would be loaned to a consortium of investors.
Housing Authority Executive Director Kay Kassinger clarified the mechanics of the funding during the public comment portion of Tuesday’s meeting.
Mt. Angeles View I LLLP
The Peninsula Housing Authority board created Mt. Angeles View I LLLP (limited liability limited partnership) in 2013 to apply for grants and to accept 9 percent federal Low Income Housing Tax Credits program funding for the first phase of the three-phase project, Kassinger said.
Since the housing authority is tax exempt, the LLLP was formed as a taxable entity to use federal tax credits awarded by the Washington State Housing Finance Commission.
The first phase of the redevelopment is 70-percent funded with low income housing tax credits. A tax credit investor provides money to the LLLP to build its project in return for tax credits used to reduce federal tax liability, Kassinger said.
As the general partner of the LLLP, Peninsula Housing Authority has “exclusive control over the partnership’s business and has all the rights, powers and authority generally conferred by law or necessary, advisable or consistent with accomplishing the partnership’s purposes,” Kassinger said.
Funding for the project comes from state Department of Commerce Housing Trust Fund, Public Housing Capital Fund, city of Port Angeles Community Development Block Grant and Clallam County.
Transferred as a loan
The funds are transferred as a loan from Peninsula Housing Authority to the LLLP according to federal tax law, Kassinger said.
“All of these funds retain their original character, purpose and use throughout the life of the project,” Kassinger said, repeating the sentence in her testimony.
“There is no consortium of investors. As I have previously stated, Peninsula Housing Authority will bring one limited partner into Mt. Angeles View I LLLP — National Equity Fund.”
The housing authority will manage construction, construction draws, project inspections and bill payments for the project, Kassinger said.
“No one has signing authority for the project funds other than the general partner of Mt. Angeles View I LLLP, Peninsula Housing Authority,” Kassinger said.
Property owners
“Peninsula Housing Authority continues to own the property and the buildings on which this phase of the project sits.”
Board Chairman Mark Ozias thanked Kassinger for clarifying the record.
Commissioners approved the memorandum of understanding without further discussion.
The board held public hearings on the spending authority for the Opportunity Fund grant Feb. 28 and April 11.
Commissioners held a second public hearing out of an abundance of caution because the agenda item and legal notice for the first hearing erroneously said the grant would be used for construction of a new Boys & Girls Club.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at rollikainen@peninsula dailynews.com.
