Sims proposes loan for affordable housing in Redmond

King County Executive Ron Sims today sent the King County Council a proposal to loan $1.2-million to an Eastside non-profit group for housing for low-income residents on the Eastside.

"We are investigating every avenue to help local groups provide affordable housing for their own neighborhoods," says Sims. "By making this loan to St. Andrews, in partnership with A Regional Coalition for Housing (ARCH) and the state, we are enabling people to do good in their own communities, at no additional cost to taxpayers."

"There is a lack of affordable housing on the Eastside and thanks to the support of the County and Executive Sims, this project will make a difference right now," says John Tarrant of St. Andrew's Housing Group, which will manage the apartments.

The Community Development Interim Loan (CDIL) of $1,196,000 will be used to acquire an apartment complex in Redmond. The complex consists of 18 two-bedroom, one-bath apartments in three separate three-story buildings. St. Andrew's Housing Group is a non-profit organization that provides housing for low income individuals and families on the Eastside.

St. Andrew's Housing Group expects to repay the loan with funds from the ARCH Housing Trust, Washington State Housing Trust, and King County HOME program. Those funds will also help rehabilitate the complex's 18 units. The CDIL acquisition loan will enable St. Andrew's to preserve rents affordable to Eastside residents with incomes at or below 80% of the County median. After complete restoration, the units will be affordable to persons with incomes at or below 50% of the County median.

The CDIL Program makes short-term loans of two to three years to eligible Community Development Block Grant (CDBG) projects from the CDBG Fund. Each loan is secured by an irrevocable letter of credit from a bank rated A or better and acceptable to King County. CDIL is an approved use of CDBF funds by the United Stated Department of Housing and Urban Development. King County has made 16 CDIL loans since 1985.