![](media/image1.png)

**[King County]{.smallcaps}**

**[Housing Authority]{.smallcaps}**

[Making Transition Work]{.smallcaps}

[Fiscal Year 2007 Plan]{.smallcaps}

## *King County Housing Authority*

### 

#### Stephen J. Norman, Executive Director

#### Board of Commissioners

Peter Orser, Chair

Nancy Holland-Young, Vice Chair

Delores Brown

Doreen Cato

Debra S. Coates

#### KCHA Senior Management

Stephen J. Norman

Dan Watson

Gary Angell

Fred Campbell

Claude DaCorsi

Connie Davis

John Eliason

Rebekka Goldsmith

Deborah Gooden

Donna Kimbrough

Tessa Martin

Mike Reilly

Peter Mourer

Rhonda Rosenberg

Craig Violante

Tim Walter

**Prepared by:**

Judi Jones, Housing Management Analyst

Table of Contents

[Introduction and Executive Summary
3](#introduction-and-executive-summary)

[Section I. Households Served 7](#section-i.-households-served)

[A. Number and Characteristics of Households Served
7](#a.-number-and-characteristics-of-households-served)

[B. Number and Characteristics of Applicants
7](#b.-number-and-characteristics-of-applicants)

[C. Changes in Populations to Be Served at End of Period and Explanation
8](#c.-changes-in-populations-to-be-served-at-end-of-period-and-explanation)

[D. Issues and Proposed Actions 8](#d.-issues-and-proposed-actions)

[Section II. Occupancy and Admissions Policies
10](#section-ii.-occupancy-and-admissions-policies)

[A. Statement of Admissions and Occupancy Policies:
10](#a.-statement-of-admissions-and-occupancy-policies)

[B. Rent Policies 12](#b.-rent-policies)

[C. Planned Policy and Program Initiatives
13](#c.-planned-policy-and-program-initiatives)

[Section III. Changes in Housing Stock
17](#section-iii.-changes-in-housing-stock)

[Section IV. Sources and Amounts of Funding
18](#section-iv.-sources-and-amounts-of-funding)

[A. Sources and Amounts of Funding in the Consolidated MTW Budget
18](#a.-sources-and-amounts-of-funding-in-the-consolidated-mtw-budget)

[B. Sources and Amounts of Funding Outside the Consolidated MTW Budget
18](#b.-sources-and-amounts-of-funding-outside-the-consolidated-mtw-budget)

[C. Consolidated Budget Statement 19](#c.-consolidated-budget-statement)

[Section V. Uses of Funds 20](#section-v.-uses-of-funds)

[A. Planned Expenditures and Changes in Expenses in the MTW Budget
20](#a.-planned-expenditures-and-changes-in-expenses-in-the-mtw-budget)

[B. Level and Adequacy of Reserves for Public Housing and Section 8
Programs
23](#b.-level-and-adequacy-of-reserves-for-public-housing-and-section-8-programs)

[Section VI. Capital Planning 25](#section-vi.-capital-planning)

[A. Major Capital Needs and Projects, Estimated Costs, and Proposed
Timetables
25](#a.-major-capital-needs-and-projects-estimated-costs-and-proposed-timetables)

[B. Capital Plan Expenditures 27](#b.-capital-plan-expenditures)

[Section VII: Owned and Managed Units
29](#section-vii-owned-and-managed-units)

[Section VIII. Management Information for Leased Housing
34](#section-viii.-management-information-for-leased-housing)

[Section IX. Resident Programs 39](#section-ix.-resident-programs)

[Section X. Other Information Required by HUD
44](#section-x.-other-information-required-by-hud)

[Section XI. Community Review of the MTW Plan and Ongoing Policy
Formulation
45](#section-xi.-community-review-of-the-mtw-plan-and-ongoing-policy-formulation)

[Appendices 48](#appendices)

#  

# Introduction and Executive Summary

[]{.mark}

[]{.mark}

The King County Housing Authority (KCHA) is one of 32 public housing
authorities participating in HUD's Moving to Work Demonstration (MTW)
Program. The MTW Demonstration Program is a Congressionally mandated
initiative designed to provide high-performing housing authorities with
the flexibility to develop their own approaches to meeting housing needs
in their local jurisdictions. The intent of the demonstration is to
determine whether greater regulatory and financial flexibility will
enable local housing authorities to increase the efficiency and
effectiveness of their programs.

Under KCHA's agreement with HUD, the Authority is allowed to develop
policies and programs that are consistent with local needs and
circumstances in lieu of HUD rules and regulations and select provisions
of the 1937 Housing Act. The agreement requires KCHA to submit Annual
MTW Plans that are adopted by its Board of Commissioners after receiving
resident and public input through a public hearing process. KCHA has
renamed its local demonstration to better reflect the intention of the
program - Making Transition Work. This is a summary of KCHA's MTW Annual
Plan for Fiscal Year 2007, which begins on July 1, 2006, and ends on
June 30, 2007. FY 2007 will mark KCHA's third full year of participation
in the MTW Program.

MTW Objectives

KCHA has agreed to pursue the following objectives over the course of
the MTW demonstration program:

-   Expand clients' program, location, and other housing choices.
    Increasingly, the communities they choose will be or will become
    more economically integrated and will offer the support services
    they need to be successful.

-   Increase the ability of KCHA's clients to become self-sufficient
    with the goal of more clients becoming employed, retaining
    employment longer, and experiencing significant income progression
    and asset development. This will increase positive transitions out
    of assisted housing, including transition to homeownership.

-   Ensure that KCHA's operations become more efficient and effective
    through simplifying and streamlining, decentralizing management,
    increasing program user-friendliness, and increasing the financial
    stability of KCHA programs.

-   Preserve and increase affordable housing opportunities (including
    both vouchers and dedicated affordable units), while continuing to
    focus on those in greatest need.

Challenges

Driven by a robust economy, the gap between housing costs and income for
the region's poorest households continues to widen. Rising sales prices
and higher interest rates are placing homeownership out of reach for the
working poor. At the same time, due in part to condominium conversions,
there was a net decrease in the number of rental units in King County in
2005. New rental units coming on line are primarily higher-end units.

As the market tightens, rents are increasing and vacancy rates are
dropping. There are roughly 65,000 renter households in King County
earning under 30% of Area Median Income (AMI). There are presently no
market rate rentals affordable to this population at 30% of income; and
an increasing number of poor families and elderly and disabled
households on fixed incomes are paying over 50% of their income for rent
and utilities.

Current and proposed Federal funding reductions pose significant
obstacles to the achievement of some of the Authority's MTW objectives,
and at the same time, make the flexibility offered by this program
absolutely essential. KCHA, like housing authorities around the country,
is experiencing multimillion-dollar funding cuts affecting virtually all
of its federally funded programs - including Section 8 rent subsidies
and administrative fees, Public Housing Operating and Capital Funds, and
grant funding for resident services programs. These reductions are
impacting the physical condition of KCHA's residential communities and
the availability of resident services as well as shifting an increasing
portion of the rent burden to KCHA residents and program participants.

Progress to Date

In the two full contract years since the initiation of KCHA's MTW
Agreement, the Authority has seen significant progress on a number of
critical issues:

-   **Expanding our role as the safety net for homeless and special
    needs populations in King County**: Using its MTW Authority, KCHA
    has worked in partnership with the Gates Foundation and local
    government to create a network of service enriched housing for
    homeless families and redefined local housing preferences to
    facilitate the movement of homeless families into the public housing
    system. Working in partnership with the local behavioral health care
    system and United Way, KCHA has also initiated new programs to
    address the housing and service needs of chronically homeless
    individuals.

-   **Deconcentrating poverty**: Utilizing the HOPE VI program, new
    project-basing rules for Housing Choice Vouchers developed under
    MTW, and KCHA's bond and tax credit financed inventory, KCHA has
    started shifting housing opportunities from the poorest
    neighborhoods in the County to more affluent suburbs. New applicants
    for subsidized housing now have broader choices in neighborhoods
    with strong school systems and ample entry-level job opportunities.

-   **Property-based management:** KCHA has completed its shift to a
    site-based approach to managing its public housing inventory.
    Individual site waiting lists, management offices in each complex
    and site-based budgeting, accounting and asset management promise
    more direct customer service, more efficient operations and better
    long-term planning.

-   **Environmental Sustainability:** Faced with rising utility rates
    and growing environmental concerns in the region, KCHA has initiated
    a major push to reduce the impact of its operations on the
    environment. Using its MTW authority, KCHA has established an Energy
    Savings Company and implemented over \$4 million in water and energy
    saving initiatives in its inventory. Water usage alone is down 17%
    from an FY 2005 baseline.

-   **Encouraging Homeownership**: Using a Resident Opportunities and
    Self-Sufficiency (ROSS) grant and MTW flexibility, KCHA has created
    a successful approach to assisting Section 8 and Public Housing
    residents in becoming homeowners. The program has resulted in 30
    KCHA households purchasing homes utilizing Housing Choice Voucher
    assistance. An additional 16 families relocating from KCHA's Park
    Lake Homes HOPE VI site have also purchased homes in the last two
    years without Section 8 assistance.

Key FY 2007 MTW Initiatives

KCHA will continue prior year initiatives and undertake additional key
efforts in FY 2007:

-   **Ending Homelessness**: KCHA will continue its leadership role in
    the region's efforts to end homelessness. It will continue to expand
    the network of supportive housing for homeless and special needs
    households, work to integrate "hard to house" populations into
    mainstream housing programs and leverage and coordinate service
    funding with affordable housing initiatives.

-   **Family Self-Sufficiency:** KCHA will significantly expand its
    programs to assist Public Housing and Housing Choice Voucher clients
    to achieve economic self-sufficiency and transition to unsubsidized
    housing or homeownership. KCHA will utilize Housing Choice Voucher
    block grant funds to support non-profit service providers in
    developing case management, job training, placement, retention and
    wage progression, asset building and homeownership services.

-   **Rent Simplification:** KCHA will continue the development of new
    policies in both the Housing Choice Voucher and Public Housing
    Programs for the calculation of rent and income to encourage
    resident self-sufficiency. This initiative will seek to simplify the
    determination and verification of tenant income in order to lessen
    non-compliance, program intrusiveness and administrative burden.

-   **Development of a Local Leased Housing Program**: KCHA will begin
    to explore the development of a local leased housing program
    utilizing its Housing Choice Voucher block grant. This program would
    seek to further assist the Authority in encouraging resident
    self-sufficiency, addressing homelessness, reducing administrative
    costs, and increasing the number of households served.

-   **Increased Investment in Public Housing**: The Authority's Capital
    Needs assessment has identified over \$58 million in capital repairs
    and systems replacements that will be necessary over the next 5
    years. Less than \$20 million in capital grant funding is expected
    during this period. This decline in Federal funding necessitates the
    development of innovative new funding approaches to address KCHA's
    capital needs. Over the next year, KCHA will design and begin
    implementing new mixed-finance approaches to assure that our public
    housing inventory is sustainable over the long term. Specific
    projects include the installation of fire/life safety systems in
    eight of KCHA's complexes housing senior and disabled households and
    potential redevelopment of its two largest family housing sites.

-   **Environmental Concerns**: KCHA will continue to explore ways in
    which the environmental impact of its operations can be reduced and
    healthier homes provided for residents. Possible lease modifications
    will include the provision of smoke-free housing for chemically
    sensitive residents and of utility sub-metering to encourage
    responsible consumption.

-   **Administrative Efficiencies:** KCHA will continue to review and
    modify administrative practices and program regulations to enable
    efficient, customer-oriented operation of KCHA programs in the face
    of declining Federal resources. The Authority anticipates using
    outside consultants to assist in re-engineering paper-flow and
    business processes in both the Public Housing and Section 8
    programs.

-   **Development of Performance Measurements**: In order to guide KCHA
    resource investments, evaluate on-going operations and measure the
    impact of the Making Transitions Work demonstration program on the
    Authority's operations, KCHA will undertake both a strategic and
    business planning initiative, and a benchmarking process in FY 2007.

> KCHA is committed to developing its specific policies under the MTW
> program through an open and inclusive process with all stakeholders.
> To assist in this process, the Authority reconstituted the former
> Resident Council into two (2) Resident Advisory Committees (RACs)
> during FY 2006. KCHA is committed to working closely with the RAC
> councils, and other interested parties, to solicit input into the
> policy development process. A list of stakeholder comments regarding
> this Plan is included in Section XI.

# Section I. Households Served

### 

### A. Number and Characteristics of Households Served

KCHA's Public Housing Program currently serves approximately 2,850
households in 48 developments and 12 scattered site single-family homes,
while the Section 8 Housing Choice Voucher Program serves about 8,600
households, including over 1,800 participants utilizing vouchers
initially issued by other housing authorities. These programs serve a
culturally and linguistically diverse population, with some public
housing developments comprised of residents speaking more than 20
languages. Appendices A, B and C provide demographic information for
KCHA residents and participants as of April 1, 2006.

The tables in Appendix A and B show demographic information for public
housing households by development type (family versus mixed
populations), geographic area (KCHA's Public Housing Program is divided
into four (4) geographic areas to maximize the efficiency of service
delivery), and development. Appendix A provides information about
residents in the family developments, while Appendix B covers
information about the Authority's mixed-population buildings.

The tables in Appendix C provide demographic information for all Section
8 Housing Choice households served by the Authority, including voucher
recipients funded through the MTW block grant, participants using
vouchers issued by other jurisdictions ("port-ins") and voucher holders
utilizing Mainstream vouchers which are funded separately from the block
grant.

###  B. Number and Characteristics of Applicants

**Public Housing:** Appendix D provides demographic characteristics for
all public housing applicants. Because of KCHA's considerable geographic
span, the Authority has historically operated regional waiting lists. In
addition, during FY 2006, KCHA adopted and implemented Site-based
Waiting Lists throughout its entire Public Housing inventory. Under the
newly modified application system, applicants may elect to place their
name on up to two Regional or two Site-based waiting lists. The
demographic information in Appendix D represents a snapshot of the
public housing waiting lists as of June 30, 2006.

**Housing Choice Vouchers:** KCHA's waiting list was opened on April
25^th^, 2006 for a two week period, during which more than 10,800
households submitted applications, either through the mail or through
on-line access provided by the Housing Authority. Prior to the opening,
KCHA's Section 8 waiting list had not been opened since July 2002, when
close to 7,000 applications were accepted over a similar two week
period. Appendix E provides information for applicants on the Housing
Choice Vouchers waiting list as of June 30, 2006.

### C. Changes in Populations to Be Served at End of Period and Explanation

**Public Housing:** The Authority expects to be serving slightly fewer
households in public housing at the end of FY 2007. The continued
relocation of residents from the Park Lake Homes HOPE VI site (about 130
households) will be partially offset by the addition of units (approx.
40 units) brought "on-line" with the completion and initial occupancy of
Seola Crossing -- the first phase in the redevelopment of Park Lake
Homes into the new Greenbridge community. Other factors that will
influence the number of public housing households served includes the
status of capital projects (discussed in Section VI) that may require
temporary relocation of existing tenants.

Changes in the demographics of the public housing program are expected
to be insignificant, primarily resulting from:

-   Continued implementation of KCHA's designation plan (through
    attrition), which stabilizes the mix of younger households in the
    mixed-population developments, may result in a slight increase (not
    more than 20) in the number of elderly and near-elderly households
    in these developments.

-   The continued relocation of Park Lake Homes residents to Section 8
    or other public housing developments may result in minor demographic
    changes due to the historically higher percentage of Asian American
    residents at Park Lake Homes.

-   Implementation of revisions to KCHA's waiting list procedures in
    2005 may result in more formerly homeless families moving directly
    from supportive housing into public housing under the Sound Families
    initiative. These families may have greater supportive service
    needs.

**Housing Choice Vouchers:** The Authority does not expect a significant
increase or decrease in the number of Section 8 households served in its
jurisdiction during FY 2007 - about 8,600 as of April 1, 2006. However,
further federal funding cuts may reduce the number of households the
Authority can afford to serve, reduce mobility, concentrate poverty and
increase household rent burdens.

The Program's demographic make-up is not expected to change
significantly during FY 2007. Increasing partnerships with the region's
public and behavioral health care systems will result in a small shift
in resident profiles to reflect the region's priorities under the 10
Year Plan to End Homelessness.

Any change in the distribution of voucher sizes (number of bedrooms),
will be due to continued implementation of prior year's modifications to
KCHA's occupancy standards rather than an actual shift towards serving
smaller household sizes.

### 

### D. Issues and Proposed Actions 

**Public Housing:** During FY 2006 KCHA restructured its Waiting List
System to allow applicants greater choice in determining where they
would like to reside, provide a local preference for households whose
total family income fell below 30% of the Area Median Income and
establish a separate waiting list for families graduating from the KCHA
sponsored Sound Families housing programs. The true impact of these
changes upon KCHA's household profile will begin to become apparent
during FY 2007 and FY 2008 and will require careful evaluation to
determine their impact.

Housing Choice Vouchers: In the past, KCHA has maintained and managed a
closed Section 8 tenant-based waiting list which was reopened when the
number of applicants had been reduced to approximately 1,000. While KCHA
received almost 11,000 applications for the program when the waiting
list was opened early in 2006, the list is currently being limited to
2,500 applicants, determined by lottery from this applicant pool. The
size of the list has been limited to reflect the lack of availability of
Housing Choice Vouchers due to decreased Federal funding. No additional
vouchers are anticipated to be made available this year and Federal
funding cuts necessitated the "retirement" of vouchers upon turnover in
FY 2006. This policy has since been reversed, but the availability of
vouchers remains strictly limited to turnover of existing voucher
holders. Increasing graduation of existing program participants in order
to provide housing opportunities to new families is a major focus of the
FY 2007 Plan.

# Section II. Occupancy and Admissions Policies

### 

### A. Statement of Admissions and Occupancy Policies:

Prior to becoming an MTW program participant, KCHA implemented
admissions and occupancy policies for the Public Housing and Section 8
Programs that were consistent with the 1937 United States Housing Act
and subsequent amendments, including the Quality Housing and Work
Responsibility Act of 1998 (QHWRA). During fiscal years 2004 through
2006, KCHA utilized the authority and flexibility of HUD's Moving to
Work program to adopt and implement a number of new policies that depart
from the 1937 Act and are consistent with the Authority's MTW Agreement.
The following highlights changes to KCHA's admissions and occupancy
policies that have already taken place:

## Public Housing Policies:

***Allocation Plan*.** During FY 2004, KCHA adopted a new Allocation
Plan that sets a preference in each of the Authority's mixed population
buildings for elderly and near elderly (55 to 62 years old) applicants.
This percentage equals the overall percentage of elderly residents in
the mixed-population buildings at the time the policy was adopted.

***Admissions Preferences.*** Under MTW, KCHA adopted a policy to allow
applicants whose incomes are lower than 75 percent of 30 percent of the
Area Median Income (AMI) to self-certify their qualification for a local
preference---the Authority currently implements the former federal
preferences for admissions as local preferences. During FY 2006, KCHA
expanded this measure to consider all families with incomes below 30% of
the Area Median Income qualified as having an "urgent need" for housing.
As a result, these households are now considered qualified for a local
preference for admission to KCHA's public housing developments without
additional "urgent need" documentation requirements.

***Site-Based Waiting Lists.*** During FY 2004 the Authority adopted and
implemented site-based waiting lists for two of its most geographically
remote public housing sites. Expanding upon this model, KCHA implemented
site-based waiting lists at all Public Housing developments during FY
2006, providing applicants the opportunity to place their name on the
waiting lists for up to two specific sites. Alternatively, families with
urgent housing needs and no specific geographic preference were provided
the option of applying for up to two regional lists and receive the
first available unit within the selected region(s). In addition, to
assist families as they worked toward self-sufficiency, KCHA has
established a separate waiting list for graduates of the KCHA funded
Sound Families project for homeless families. Under policies adopted in
2006, eligible applicants for public housing are selected to fill vacant
units utilizing a rotation between each of the three waiting list types:
Site-based, Regional and Sound Families.

***Deconcentration Policies.*** It has not been necessary to implement
the Authority's deconcentration policy, which allows KCHA to skip
applicants on the waiting list, implement affirmative marketing
strategies, and/or other incentives to achieve a more desirable income
mix in affected buildings. KCHA's other deconcentration strategies,
including targeted self-sufficiency programs, flat rents, HOPE VI
redevelopment and the siting of replacement housing under this project
in Eastside suburban communities, in combination with exception rent
policies in the Housing Choice Voucher Program, have resulted in the
creation of mixed-income communities without having to target higher
income applicants.

## Housing Choice Voucher Policies:

***Admissions Preferences.*** Under MTW, during FY 2004, KCHA adopted a
policy to allow applicants whose incomes are lower than 75 percent of 30
percent of AMI to self-certify their qualification for a local
preference - the Authority currently implements the former federal
preferences for admissions as local preferences. KCHA may adopt future
changes to the preference system utilizing the flexibility of the MTW
program.

***Occupancy Standards:*** During FY 2005, the Authority's Board adopted
new occupancy standards for all multiple-bedroom voucher sizes in
response to reductions in Section 8 funding. The occupancy standards
determine the size of the voucher (number of bedrooms) and the FY 2005
changes generally reduced the number of bedrooms for which a family
qualified by allocating one bedroom per two adults or per two minors.
These changes were to become effective on the second annual review of
participating households. During FY 2006, the Housing Authority
determined that these standards could be partially loosened as a result
of stabilized Housing Choice Voucher funding levels, allowing bedrooms
to again be allocated using such family characteristics as sex, age, and
disability status.

***New Payment Standards:*** In an additional response to funding cuts,
the Authority adopted lower payment standards - the maximum amount of
subsidy a tenant may receive for a given voucher size (number of
bedrooms). Utilizing MTW authority, the new payment standards (set at
104 percent of the HUD established Fair Market Rent) were implemented at
the time of annual review for current Section 8 participants. Based upon
an analysis of housing market trends, growing rent burdens and partial
restoration of Federal funds, these payment standards were revised
upwards towards the end of Fiscal Year 2006.

***Inspections:*** During FY 2004, KCHA implemented streamlining
initiatives designed to increase program efficiency and reduce costs.
These changes allowed KCHA staff to complete Inspections and Rent
Reasonable studies on properties in which KCHA held majority interest,
in lieu of the requirement that these functions be completed by outside
contractors. In addition, KCHA implemented policy changes that
eliminated the need for re-inspection of units that failed to pass an
initial inspection as a result of certain minor fail items.

## Policies Specific to Section 8 Project-Based Program:

The Authority adopted a Section 8 Project-Based Assistance Policy in FY
2003 and made further changes in FY 2006 following the release of a
final rule for the Project-based Voucher program. Changes implemented
include:

-   The Authority can allocate project-based assistance to housing units
    owned, controlled or financed by KCHA without competition. The
    Authority can allocate project-based assistance to other housing
    units based upon competitive processes administered by other
    entities (i.e., Gates Foundation, King County) that meet KCHA's
    competitive selection requirements.

-   Project-based assistance provided for HOPE VI replacement housing
    and permanent housing for families and children can only be located
    in areas with poverty rates at or below 15 percent.

-   The Authority and other owners of housing may operate site-based
    waiting lists for units receiving project-based assistance.

-   Due to the limited availability of Section 8 tenant-based vouchers,
    residents exiting housing receiving project-based assistance are
    generally not eligible for tenant-based vouchers. However, in lieu
    of providing tenant-based assistance, policies have been implemented
    that allow project-based Section 8 participants graduating from
    certain supportive housing programs to apply and be granted a
    priority, in limited number, for units available under KCHA's Public
    Housing program

-   KCHA may solicit applications for Project-based assistance from
    supportive service providers who will in turn identify eligible
    housing providers.

-   KCHA reserved the right to execute an AHAP for rehabilitation
    projects only in limited circumstances where necessary to allow the
    project owner to meet financing or other requirements.

-   In the case of supportive housing for homeless and disabled
    households, established policies that allowed the waiting lists to
    be managed through the supportive service provider rather than the
    Housing Authority.

-   For mixed finance developments with another public rental subsidy in
    place, KCHA may conform the operation of the Project Based Section 8
    program to the operational policies of the other government subsidy
    program.

-   Contract Rents are capped at the Payment Standard in all project
    based units to ensure that tenants do not pay more than 30% of their
    adjusted income for rent.

-   Eliminated the rent limitation established by HUD in the project
    based voucher final rule, allowing contract rents on Tax Credit
    units to be set a Market Reasonable Rent, rather than at the Tax
    Credit rent.

-   Implemented a system allowing KCHA to perform its own Subsidy
    Layering and Environmental reviews rather than requiring the work to
    be completed by HUD.

-   Created greater flexibility in the housing types that can be funded
    under the Housing Choice Voucher Program.

### B. Rent Policies

KCHA's current rent policies are based on the Brooke Amendment to the
1937 Housing Act, which limits a household's cost of rent and utilities
to 30 percent of their adjusted income. Over the years, this policy has
ensured a high level of affordability for households under both
programs. However, this basic "30 percent of income policy" has also
resulted in some unintended consequences, including a disincentive for
households to increase their income through employment. Current
federally designed programs are also excessively complicated and not
easily understood by program participants or administered by Authority
staff.

The following rent policy changes have been made so far:

**Housing Choice Vouchers:**

-   **Bi-annual rent recertifications for fixed-income households.**
    Under this policy, full rent reviews can be conducted every two
    years. In the intervening year, rents are adjusted based on cost of
    living increases, if any, provided for Social Security recipients.
    Residents may request a full review at any time if their financial
    circumstances have changed. This change was adopted to reduce
    administrative costs in response to funding cuts.

-   **40 Percent of Gross Income Limitation on New Leases.** The lower
    payment standards adopted in order to reduce per unit subsidy costs
    to new HUD limits results in reduced choice in the rental market.
    KCHA used its authority under MTW to allow households to pay up to
    40 percent of gross income - instead of adjusted income - towards
    their housing costs in the initial year of their lease. This change
    is designed to expand the number of potential units that a household
    is allowed to rent under the Section 8 Program.

Housing Choice Voucher rent policy may undergo further changes in FY
2007.

**Public Housing:**

Although a major target for review during FY 2005 and 2006, KCHA has not
yet implemented new rent policies. Review and evaluation of potential
changes to rent policies, including policies relating to the definition
of income, allowances, utility cost calculations and the amount a
resident pays for rent and utilities are of significant concern to a
large number of stakeholders and will be a primary focus of on-going
discussion and policy development in FY 2007

### C. Planned Policy and Program Initiatives

KCHA will explore, develop, adopt, and/or implement a number of policy
and program changes during FY 2007. Some of these efforts are
continuations of existing initiatives approved under previous annual
plans, while others reflect new initiatives:

## Housing Choice Voucher Program Initiatives 

## Rent Simplification and Possible Development of a New Local Leased Housing Program:

KCHA's initial MTW Agreement authorized comprehensive changes to the
Housing Choice Voucher Program for the 915 vouchers included in the
Section 8 Block Grant and more limited changes for other vouchers.
During FY 2006, the Authority obtained HUD approval of an amendment to
its Agreement that combined almost all KCHA vouchers into a single MTW
Block Grant and allows KCHA to operate the program with a single set of
rules. In addition, the amendment will assist KCHA to respond
appropriately to anticipated future Section 8 program funding reductions
and policy changes. Utilizing the benefits of a single block grant, the
Authority will further explore options for simplifying existing program
rules or creating its own Local Leased Housing Program in accordance
with the MTW Agreement. Objectives governing the design of program
changes will continue to include the guiding principles adopted by
KCHA's Board of Commissioners in response to FY 2005 funding cuts:

-   Ensure that current Section 8 participants continue to receive
    assistance.

-   Expand the ability of the program to serve additional households.

-   Assist in the region's efforts to address those most in need and end
    homelessness.

-   Encourage economic self-sufficiency.

-   Continue to broaden housing choice and minimize poverty
    concentration.

-   Ensure that administrative impacts of any changes are
    cost-effective.

-   Focus on the long-term stability and success of the program.

Program modifications may include major changes to core components of
the current program, including:

-   ***Rent Policy:*** KCHA will review the basic rent formula (30
    percent of adjusted income) and all related policies, including
    adjustments to income and the definition of household income, that
    determine how much rent a participant pays to a landlord and the
    subsidy amounts provided by the Authority. Included in this review
    will be consideration of policy alternatives based on differing
    household income and household types and shifts in subsidy levels
    over time.

-   ***Payment Standards:*** Under a new rent formula, rent payment
    standards may need to be revised, redesigned, or become unnecessary.
    The underlying basis and/or method for setting rent payment
    standards may also be changed. The Authority may consider multiple
    rent payment standards to address issues of poverty concentration,
    rent burdens and housing choice.

-   ***Utility Allowance.*** The Authority will consider alternatives to
    the current utility allowance system in order to simplify and
    support local program implementation while keeping housing costs
    affordable.

-   ***Inspections:*** Changes may include revisions to the frequency
    and procedures for initial and periodic inspections. For example,
    the Authority may explore conducting inspections of a sample number
    of units in a single complex on an annual basis, or clustering
    inspections within regions as a means of reducing costs and
    increasing program efficiency. Any changes to the inspections
    protocols will be designed to ensure that participants have safe,
    decent, and sanitary housing.

Changes to other aspects of the Section 8 program may include those
authorized under Section V.A of KCHA's MTW Agreement (as amended) and
listed in Section VIII of this MTW Plan. KCHA intends to utilize outside
consultants this year to review and possibly re-engineer internal
business processes in conjunction with these initiatives.

## Designation of Vouchers:

In consultation with organizations that serve and advocate for people
with disabilities, KCHA will continue to explore the development and
adoption of a policy to designate Section 8 Vouchers for service systems
that target specific disabilities. Such a policy will comply with all
applicable Fair Housing laws and regulations while addressing supportive
housing needs in the local community and the community's 10 Year Plan to
End Homelessness.

## Public Housing Program Initiatives

-   ***Rent Policy***:. KCHA staff began to engage residents (through
    focus groups, the Resident Advisory Board and surveys) and other
    community partners in a review of the current public housing rent
    policies. After a thorough analysis of the current policies and the
    development of guiding principles for potential modifications, a
    broad range of alternatives may be considered. Potential options for
    change include the basic rent formulas (30 percent of adjusted
    income) and all related policies, including adjustments to income,
    the definition of household income and deductions, and the
    calculation of utility allowances that determine how much rent a
    resident pays. In addition, the review may consider policy
    alternatives based on differing household income and different rent
    policies for different household types and shifts in subsidy levels
    over time. Participants in the policy development process will be
    given full opportunity to respond to policy options or to propose
    their own for consideration. Public hearings and meetings with
    residents will be conducted to gather comments and responses to
    policy recommendations before any final recommendations are
    submitted to the Board of Commissioners. New rent policies will be
    designed to simplify rent calculation procedures for staff and
    residents, provide strong employment incentives for residents, and
    strengthen the financial viability of the public housing program,
    especially in the light of anticipated funding cuts and program
    changes.

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-   ***Inspections:*** KCHA staff may explore and recommend changes to
    current inspection protocols for the Public Housing program as a
    means of reducing costs and increasing program efficiency, while
    ensuring the viability and safety of housing units and communities.

-   ***Utility Allowance:*** The Authority will consider alternatives to
    the Public Housing utility allowance system, including both KCHA and
    tenant-paid utilities, in order to simplify program implementation
    and encourage conservation while keeping housing costs affordable.

-   ***Transfers:*** KCHA will, in consultation with stakeholders,
    review and assess proposed changes to its existing transfer policies
    with the intent of creating greater administrative efficiencies, an
    increased ability to respond to reasonable accommodation requests,
    encourage economic self-sufficiency and enable transfer of tenants
    between public housing and other subsidized housing KCHA controls.

In addition, KCHA may consider changes to other aspects of the Public
Housing program as authorized under KCHA's MTW Agreement (as amended)
and/or listed elsewhere in this MTW Plan.

**Joint Initiatives**

-   **Public Housing and Section 8 Admissions Preferences:**

> KCHA may explore new or modified preferences for both the Public
> Housing and Section 8 programs during FY 2007. Policies adopted for
> each program will be developed in concert with the needs of other
> admissions-related policies. In addition, during the course of FY
> 2007, KCHA will continue to monitor the impact of the creation of
> Public Housing Site-based, Regional and Sound Families waiting lists
> systems and utilize MTW authority to address identified areas where
> adjustments are necessary.

## Family Self-Sufficiency (FSS) Program:

> The Authority is designing changes to the Section 8 FSS Program to
> seek ways to expand the program, provide additional resident
> incentives and decrease the costs associated with managing individual
> escrow accounts and other aspects of program administration. KCHA is
> also exploring the closer coordination of FSS programs with rent and
> income calculation policies and the implementation of an expanded and
> modified FSS Program for public housing.

# Section III. Changes in Housing Stock

The Authority is committed to providing the same or a greater number of
subsidized housing opportunities for low-income households than it had
prior to its participation in the MTW Demonstration. The table below
provides information about the total number of federally subsidized
housing units available through KCHA as of July 1, 2004, 2005 and 2006
as well as the number projected to be available as of June 30, 2007.
These numbers represent the gross number of units in these programs.
Public Housing occupancy is projected at 98.9% and Section 8 at a 99%
lease-up rate for FY 2007.

  --------------------- -------------- -------------- -------------- -------------- ---------------
  **Housing Program**   **7/1/2003**   **7/1/2004**   **7/1/2005**   **7/1/2006**   **6/30/2007**

  Section 8 Vouchers    6,374          6,730          6,850          6,850          6,850

  Low Income Public     3,288          3,288          2,985          2,854          2,763
  Housing (LIPH) Units                                                              

  Section 8 New         174            174            174            174            174
  Construction                                                                      
  Buildings                                                                         

  Preservation Program  271            271            271            271            271
  Buildings                                                                         

  **Total Subsidized    **10,107**     **10,463**     **10,280**     **10,149**     **10,058**
  Units**                                                                           
  --------------------- -------------- -------------- -------------- -------------- ---------------

The total number of Section 8 vouchers (6,850) represents vouchers KCHA
is authorized to issue. While the Authority does not expect to receive
any new vouchers during FY 2006, KCHA will continue to apply for any new
Section 8 vouchers made available by the Federal government.

The public housing numbers in the table above include units that are
available for resident occupancy as well as 9 units currently being used
to accommodate agencies serving KCHA residents. It also includes 10
units destroyed in a fire on July 4, 2003, which the Authority plans to
rebuild. The reduction in the number of public housing units from 2004
to 2006 reflects the units being demolished at the Park Lake Homes HOPE
VI site. All of these units are being replaced on a one-for-one basis
with either new public housing units or project-based replacement
housing choice vouchers issued by HUD in connection with that project.
The first new public housing units will be placed into service in FY
2007, with full build-out anticipated by FY 2010.

The HOPE VI initiative has allowed KCHA to receive a total of 569
relocation and replacement vouchers for the 569 units that will
ultimately be demolished at Park Lake Homes. The reduction in units
reflected in the table above does not mean that KCHA will ultimately be
serving fewer extremely low income residents as a result of HOPE VI.
Instead, it reflects the fact that KCHA received its
replacement/relocation vouchers for Park Lake prior to completing
phase-out of all the Park Lake units.

# Section IV. Sources and Amounts of Funding

This Section details the sources and amounts of funding included in the
Authority's MTW budget statement, the sources and amounts of funding for
Federal housing programs outside this budget, and a Consolidated Budget
Statement.

### A. Sources and Amounts of Funding in the Consolidated MTW Budget

The following table shows the FY 2006 budget adopted by the Board of
Commissioners as well as projected revenues for FY 2007 for the
operation of the housing programs included in the MTW Demonstration. The
Section 8 Housing Choice Voucher funding is reported under two line
items, one for funding received for Section 8 vouchers in the form of a
block grant and one for all other vouchers.

  ----------------------------------- ------------------ ------------------
  **PROJECTED REVENUES**              **FY 2006 BUDGET** **FY 2007 BUDGET**

  Dwelling Rental Income              \$ 7,114,875       \$ 7,063,433

  Investment Income                   96,862             819,012

  Other Income                        520,014            734,082

  Section 8 Block Grant               60,718,303         59,303,861

  Section 8 Subsidy and Port/Admin    3,212,600          3,203,571
  Fees                                                   

  Capital Subsidy (CFP all years)     10,269,954         7,992,260

  Operating Subsidy (PH)              7,376,658          6,901,391

  **Total Revenues**                  **\$89,309,266**   **\$86,522,696**
  ----------------------------------- ------------------ ------------------

### 

### B. Sources and Amounts of Funding Outside the Consolidated MTW Budget

The statement below shows the FY 2006 budget and projected 2007 revenues
for the Section 8 New Construction and Preservation programs, grants
that fund services to KCHA residents and program participants, and the
HOPE VI redevelopment grant for Park Lake Homes.

  ------------------------------- ------------------- -------------------
  **PROJECTED REVENUES**          **FY 2006 BUDGET**  **FY 2007 BUDGET**

  Dwelling Rental Income          \$ 1,409,229        \$ 1,341,546

  Investment Income               347,794             309,580

  Other Income                    55,378              56,871

  Section 8 Subsidy and Admin     2,748,041           3,180,284
  Fees                                                

  Capital Subsidy                 0                   0

  Operating Subsidy               0                   0

  Grants (non CFP)                10,282,074          13,567,510

  **Total Revenues**              **\$14,842,515**    **\$18,445,791**
  ------------------------------- ------------------- -------------------

### C. Consolidated Budget Statement

+--------------------------------+--------------------+-----------------+
| **PROJECTED REVENUES**         | #                  | ####            |
|                                | ### FY 2006 BUDGET |  FY 2007 BUDGET |
+--------------------------------+--------------------+-----------------+
| Dwelling Rental Income         | \$ 8,524,104       | \$ 8,404,979    |
+--------------------------------+--------------------+-----------------+
| Investment Income              | 444,656            | 1,128,592       |
+--------------------------------+--------------------+-----------------+
| Other Income                   | 575,392            | 790,953         |
+--------------------------------+--------------------+-----------------+
| Section 8 Block Grant          | 60,718,303         | 59,303,861      |
+--------------------------------+--------------------+-----------------+
| Section 8 Subsidy and Admin    | 5,960,641          | 6,383,855       |
| Fee                            |                    |                 |
+--------------------------------+--------------------+-----------------+
| Capital Subsidy                | 10,269,954         | 7,992,260       |
+--------------------------------+--------------------+-----------------+
| Operating Subsidy              | 7,376,658          | 6,901,391       |
+--------------------------------+--------------------+-----------------+
| Grants                         | 10,282,074         | 13,567,510      |
+--------------------------------+--------------------+-----------------+
| **Total Revenues**             | **\$104,151,781**  | **              |
|                                |                    | \$105,191,617** |
+--------------------------------+--------------------+-----------------+

# Section V. Uses of Funds

This Section details FY 2006 budgeted and FY 2007 planned MTW
expenditures by line item, an explanation of the changes in expenses
between the two years and intended policy and program initiatives
included in the 2007 budget. It also reviews the level and adequacy of
reserves.

### A. Planned Expenditures and Changes in Expenses in the MTW Budget

  -------------------------------- ------------------- -------------------
  **PROJECTED EXPENSES**           **FY 2006 BUDGET**  **FY 2007 BUDGET**

  Administration and General       19,321,237          19,970,768

  Housing Assistance Payments      2,014,000           1,931,676

  Section 8 Block Grant HAP        60,718,303          59,303,861

  Utilities                        2,877,716           2,829,795

  Maintenance                      1,280,016           1,775,626

  Capital Projects                 9,008,339           6,437,605

  **Total Expenses**               **\$95,219,611**    **\$92,249,331**
  -------------------------------- ------------------- -------------------

## 

## Categories of Costs:

-   Administration and General: Salaries and employee benefits for all
    employees, office costs, professional service contracts including
    those supporting resident services, property and liability insurance
    and debt service on KCHA's Section 8 offices and ESCO financing.

-   Housing Assistance Payments: Housing assistance payments (HAP)
    projected to be paid on behalf of Section 8 participants are
    separated into two categories: Section 811/Five Year Mainstream
    (non-MTW) and all other Vouchers (MTW Block Grant)

-   Utilities: KCHA-paid utilities including water, sewer, electricity,
    natural gas and heating oil. This category also includes trash
    collection costs, in conformity with private sector real estate
    accounting.

-   Maintenance: All materials and contracts for the maintenance of
    KCHA's public housing developments.

-   Capital projects: Most capitalized improvements to KCHA's
    developments are funded through the CFP. This also includes Public
    Housing's pro rata share of any hardware or software costs charged
    to CFP. The costs of a new regional Management/Maintenance office
    for the Southwest region is funded directly from Public Housing
    reserves. This office has been relocated due to the HOPE VI project.

.

**Changes from the FY 2006 Budget:**

-   Administrative and General:

    -   Human resource costs are increasing due to higher medical
        insurance premiums, the cost of Washington State retirement
        plans and general inflation.

    -   In addition, FY 2007 reflects the first full year of repayments
        for KCHA's ESCO project. This amount represents approximately
        25% of the increase in this cost category.

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-   Section 8 HAP is divided into two categories, Block Grant and Five
    Year Mainstream vouchers. HUD approval to block grant 6500 vouchers
    was received in FY 2006. Estimated funding has decreased due to
    continuing Congressional reductions in funding for the program; KCHA
    received approximately 95% of its formula funding in CY 2006, a
    lower percentage than in the prior year.

-   Maintenance costs have climbed due to the materials and contract
    expenditures expected to be incurred in KCHA's unit upgrade project.
    Funding for this will be provided from capital grant funds. All of
    the increase in this category is as a result of this project,
    budgeted at \$577 thousand excluding labor costs.

-   Utility costs are projected to decline following installation of
    \$4.0 million in energy upgrades funded through the KCHA Energy
    Savings Corporation (ESCO) in FY 2006. Consumption of water has
    declined significantly; however, utility rates have climbed during
    the year, offsetting cost savings.

-   Capital programs: There has been a steady decline in CFP funds
    available to the agency. In order to leverage additional capital for
    fire/safety upgrades to eight senior buildings, KCHA will be using a
    mixed finance model in FY 2007 that will combine Low Income Housing
    Tax Credit equity with CFP. Other projects scheduled for FY 2007
    include two roof replacements and infrastructure and heating
    ventilation systems at two family developments.

##  Major FY 2007 Initiatives:

The following are initiatives that the Authority will be undertaking
during FY 2007. Several are continuations of current activities and
others represent the beginning of new strategies that will have
long-term benefits for the Authority and its clients.

-   KCHA has completed the roll out of its Site Based Management
    initiative. An ongoing training program is being developed to assure
    that new property managers are well versed on the legal, regulatory
    and management skills needed to properly oversee their developments.
    Managers have been issued Purchasing Cards which enables them to
    make small purchases for their sites. KCHA will continue to monitor
    use of the Cards to verify best internal controls and compliance
    with HUD purchasing requirements. In addition, during FY 2007, the
    Authority will conduct an ongoing review of current procurement
    systems in order to assess and implement further policy changes and
    streamlining processes where warranted.

-   During FY 2006 KCHA began providing monthly financial statements to
    field property managers. An objective of FY 2007 is to more fully
    automate this process and to provide more training to personnel as
    to financial statement usage and analysis. Property managers have
    already used this training to create property-based budgets for
    their sites during this budgeting cycle. The Authority will also
    investigate new productivity tools to make existing software more
    responsive to user's needs. This may include new software for its
    payroll and/or other financial systems.

-   Now that the Operating Fund Rule has been finalized, KCHA is
    comparing its authority under its MTW Agreement with some of the new
    administrative and financial requirements, particularly those
    relating to Stop Loss. KCHA has been granted fungibility of its
    operating and capital funds and the authority to develop its own
    management indicators which it may seek to use in lieu of the
    published Rules in certain areas.

-   Ongoing Review of Energy Costs. KCHA entered into an Energy
    Performance Contract during FY 2004 for its Public Housing Program.
    Most of the anticipated \$4.0 in energy measures were installed
    during FY 2006, resulting in an approximate 17% drop in water usage.
    During FY 2007, KCHA will begin to bill residents for excess water
    usage. The process of required tenant notices, lease changes and
    hearings and dummy "mock" billing notices to prepare residents for
    this change will take approximately 6 - 8 months. KCHA is
    contracting with a third party billing service to perform this role.

-   A consultant is being hired to review Section 8 office operating
    procedures in order to streamline workflow and simplify business
    processes. Administrative Services piloted a document imaging system
    in FY 2006; this experience will be shared with both Section 8 and
    Public Housing staff in order to reduce on hand paperwork.

-   Park Lake Homes HOPE VI Revitalization. This redevelopment effort is
    transforming an aging public housing development into a new
    mixed-income neighborhood. The first residents will move into the
    initial phase of the new development during the summer of 2006. The
    balance of the existing units on the site will be demolished during
    FY 2007.

-   KCHA will move forward with leveraging a portion of its Capital Fund
    Program in order to fund needed life/safety initiatives at up to
    eight of its senior building programs. These are the last buildings
    in KCHA's twenty-one building mixed population portfolio needing
    such upgrades. It is clear that CFP funds are insufficient to
    address both these and other pressing needs of the inventory using
    CFP funds in this manner will leverage private sector equity.

-   Many of the Authority's public housing units, while in usable shape,
    are dated. In order to reduce the disruption and cost of tenant
    relocation during unit upgrades, the Authority is initiating a pilot
    project to use its own force account for a limited number of unit
    upgrades during the year. Current plans forecast 50 of these
    upgrades, which will take place on turnover. The project should
    increase the lives of the units as well as make them more attractive
    to prospective residents.

-   Streamlined HUD Approval of Mixed-Finance Deals**.** Before the end
    of FY 2007, the Authority will request a HUD waiver to allow a
    mixed-finance closing to occur without review of evidentiary
    material by a HUD attorney, based on a model developed by HUD and
    the Atlanta Housing Authority.

-   Utilization of the Section 8 Block Grant flexibility to help expand
    the regional network of supportive housing units. The Authority
    plans to use Section 8 funding to supportive housing projects that
    serve individuals with disabilities and homeless households.

-   Utilization of the Section 8 Block Grant funds to develop a
    Self-Sufficiency program for Public Housing residents and expand
    current initiatives for housing choice voucher holders.

-   Performance Evaluation and Improvement. KCHA will begin to develop
    measures to evaluate the impact of the MTW Program on agency
    operations and outcomes. On a program level, the Authority will
    continue monthly Section 8 and Public Housing performance review
    meetings and refine performance and outcome indicators to closely
    monitor operations, self-sufficiency initiatives and the quality of
    services to its customers. At the Public Housing project level, site
    reporting will continue to be expanded so that Regional and asset
    managers can quickly react to vacancy, crime or financial challenges
    within their apartment communities.

-   MTW Implementation. The Authority will explore the full use of its
    MTW Authority with HUD to continue to implement already-identified
    initiatives.

-   The Authority is reviewing the advisability of placing its insurance
    portfolio into the commercial insurance market as opposed to the
    current risk pool and a variety of supplemental policies. A probable
    increase in costs will be weighed against the more comprehensive and
    coordinated coverage provided by a single insurer.

-   The Authority will be conducting an assessment of its current
    performance pay structure. This may also result in a broader pay and
    classification study later in the fiscal year. KCHA is already
    working within its collective bargaining agreements to create job
    titles, responsibilities and pay scales more appropriate to site
    based management, and this effort will continue in FY 2007.

-   New Investment Strategies. KCHA has accumulated significant reserves
    in its HUD funded programs. Utilizing the flexibility inherent in
    its MTW agreement, the KCHA Board of Commissioners has initiated a
    strategic and business planning process to develop an approach to
    using these reserves to further the mission of the Authority.

### B. Level and Adequacy of Reserves for Public Housing and Section 8 Programs

  ------------------------------------------------ ----------------------
  **PROJECTED RESERVES**                           **FYE 2007**

  Public Housing                                   \$ 8,172,712

  Section 8 Administrative Fee                     3,531,446

  Section 8 Block Grant Reserve                    8,904,470

  **Total Reserves**                               **\$20,608,631**
  ------------------------------------------------ ----------------------

The Public Housing Program is budgeted to operate at a deficit in FY
2007. As of the date of this plan, KCHA has not been informed by HUD as
to the level of funding for FY 2007 and has made a best estimate of
\$6.9 million. At this level, it is probable that the Authority will
have a \$973,000 deficit in cash flow for its Public Housing operations
at the end of FY 2007. Reserves are adequate to cover this shortfall.
The public housing reserve represents approximately seven months of
operating expense cash flow for KCHA\'s public housing program. A
portion of this reserve has been pledged to contingent development
liabilities on the Greenbridge HOPE VI project. It is anticipated that a
significant portion of this reserve will be committed to addressing the
renovation costs of the Park Lake II and Springwood properties.

The Section 8 project reserve represents the accumulated block grant
reserves captured by the Authority since the inception of the grant. The
Administrative Fee reserve is the accumulated excess in fees over costs
for the Section 8 program, also built up over several years. Under the
authority granted it in its MTW agreement, these reserves can be used
for any purpose supported by KCHA's MTW authorization. A significant
portion of these funds has been set-aside to provide one month's
operating reserve for the voucher program. This reserve has enabled an
increase in payment standards and the release of "retired" vouchers to
bring KCHA's voucher program leasing level back up to its former
baseline. Additional reserve funds will be used to expand housing
opportunities and support resident self-sufficiency initiatives for
Public Housing and Section 8 program participants.

# Section VI. Capital Planning

### 

### A. Major Capital Needs and Projects, Estimated Costs, and Proposed Timetables

The King County Housing Authority's 10-year work plan covers the period
from FY 2003 through FY 2012. It identifies over \$58 million in capital
work that needs to be performed between FY 2007 and FY 2012. The plan
addresses the highest priorities among those identified capital needs
for public housing developments. KCHA's capital grant funding from HUD
has declined steadily over the past four years. These reductions have
been the result of both on-going budget cuts by Congress and the
revitalization of Park Lake Homes under the HOPE VI program.

KCHA is currently expending Capital Fund Program allocations from CFP
years 2003, 2004 and 2005. CFP funds allocated for capital improvement
are fully expended through CFP 2004 and 84% of the CFP 2005 capital
improvement allocation is expended. All CFP 2005 funds for capital
improvements are committed to projects scheduled within the KCHA 10-year
work plan.

The projected Capital Fund availability for the five-year period is
approximately \$19.7 million. The total planned work for the five-year
period is \$34.6 million. For FY 2007, construction contracts for
approximately \$5.5 million will be undertaken. These work items are
indicated below in the five-year projection of capital improvement
expenditures.

KCHA anticipates leveraging additional funding in the amount of
approximately \$14.9 million over the next 5 years by using a mixed
financing approach that combines the proceeds of private activity bonds
and 4% low income housing tax credit equity to fund capital improvements
for selected public housing properties. Annual debt service on the
private activity bonds will be paid in annual installments over 20 years
from the Capital Fund Program. All properties utilizing bond/tax credit
leveraged financing will be sold to tax credit limited partnerships or
limited liability companies controlled by KCHA and will continue to
operate as public housing under regulatory and operating agreements with
KCHA. KCHA currently expects to submit disposition and mixed financing
applications for Brittany Park, Paramount House, Casa Madrona, Plaza 17,
Mardi Gras, Munro Manor, Riverton, Gustaves Manor and Springwood
Apartments in FY 2007.

KCHA may modify the work identified as on-going capital needs
assessments are updated, or as priorities change, or based on funding
limitations. Major projects include the following:

-   **Park Lake Homes Redevelopment.** The redevelopment of Park Lake
    Homes I under the HOPE VI Program is currently underway. This once
    distressed public housing project is being completely redeveloped
    into a mixed-income neighborhood of new low-income and workforce
    rental housing combined with affordable and market rate for-sale
    homes. This planned community is organized around the 8^th^ Ave SW
    "Main Street", which includes facilities for services, recreation,
    neighborhood retail and education, including new Elementary School
    and Head Start facilities. Greenbridge is designed to be pedestrian
    friendly and incorporates an array of parks, walking trails, gardens
    and natural features into the fabric of the neighborhood. The
    original 569 public housing units will be replaced on site with
    three hundred subsidized units for very low-income households and
    269 offsite units to insure one for one "hard unit" replacement. The
    first phase of new housing will be occupied in July 2006.

-   **Park Lake II Redevelopment.** The cost of upgrading the
    infrastructure and housing on this site to acceptable standards is
    such that KCHA anticipates demolishing the existing housing and
    initiating a HOPE VI-like redevelopment of this 31 acre site within
    5 years. Although approximately \$350,000 is budgeted in FY 2007 to
    mitigate chronic moisture and mold problems in some Park Lake II
    units, all other non-emergency capital work will be deferred pending
    redevelopment. For FY 2007, \$150,000 is budgeted to begin master
    planning the redevelopment of the site.

-   **Springwood Apartments Redevelopment.** KCHA has determined that
    this aging and physically distressed 334 unit property cannot be
    sustained as public housing and will need to undergo a financial
    restructuring to leverage the approximately \$40 million needed to
    completely renovate the site and substantially rehabilitate most of
    the buildings on the site. In FY 2007, KCHA will submit a
    disposition application to sell the property to a tax credit limited
    partnership or limited liability company controlled by KCHA. The
    property will be decommissioned as public housing. The sale proceeds
    will be used to leverage other federal, state, local and private
    financing to undertake the renovation and to insure that
    approximately 270 extremely low income units are maintained on this
    former public housing site. Any extremely low income units removed
    from the site will be replaced on a one-for-one basis.

-   **Fire and Life/Safety Upgrades in Mixed-Population Buildings.** The
    Authority has developed a multi-year plan to install sprinklers and
    updated fire safety systems in all its mixed-population buildings.
    Installments in 12 of the buildings are complete with the remaining
    eight buildings to be upgraded over the next 3 years. These
    multistory elevator buildings will use the bond/tax credit leveraged
    financing model discussed above to finance necessary work and will
    be sold to tax credit limited partnership or limited liability
    company controlled by KCHA.

-   **Unit Upgrade Demonstration Program.** Beginning in FY 2007, on a
    demonstration basis, KCHA will begin a program of major unit
    interior renovations on turnover. Approximately \$1 million will be
    budgeted for 50+ interior renovations in selected public housing
    units in multiple properties. KCHA's in-house staff will undertake
    the work necessary to rehabilitate these units. In the past, major
    unit upgrades were undertaken on a building by building basis,
    requiring KCHA to employ architects to develop detailed plans,
    specifications and contract documents and to vacate entire buildings
    and relocate residents for up to 6 months so that general contactors
    could efficiently complete the work. By having a dedicated upgrade
    crew working only in "turnover" units, KCHA expects substantial
    savings on soft costs, general contractor's overhead and profit, and
    relocation costs. Although the 10 year Capital Plan still projects
    major property by property interior renovations in FY 2008 -- FY
    2011, the Capital Plan will be modified to incorporate the unit
    turnover approach if the Unit Upgrade Demonstration Program is
    successful.

-   **Improved On-Site Community Facilities.** KCHA is actively
    upgrading community facilities at its major family sites to
    facilitate delivery of on-site services. Last year, KCHA finished
    the construction of the Kent Family Center, providing Headstart,
    Career Development and primary health care services at the
    Springwood Apartments. The redevelopment of the Springwood Community
    Center including construction of a gymnasium, game room, classrooms
    and computer center for older youth will be completed in July 2006.
    The Jim Wiley Community Center at Greenbridge is currently
    undergoing a \$5.5 million renovation and will also reopen in
    FY 2007. Because KCHA is anticipating the use of New Markets Tax
    Credit financing in connection with this renovation, KCHA will sell
    the Community Center to the Greenbridge Foundation with KCHA
    retaining an operating lease of the facility. The property will
    revert to KCHA ownership in 7 years.

-   **Other Major Multi-Year Projects.** Utilizing its ESCO financing,
    KCHA is completing replacement of all toilets with low-flow
    fixtures, installing energy efficient fluorescent lighting and new
    heating plants in its public housing inventory.

### B. Capital Plan Expenditures 

## Five-Year Capital Plan and Projected Expenditures by KCHA Fiscal Year

+--------+----------+--------+-------+-------+-------+-------+-------+
| ## Pr  | **Scope  | *      | ###   | **FY  | **FY  | **FY  | **FY  |
| operty | of       | *Total | ####  | 08**  | 09**  | 10**  | 11**  |
|        | Work**   | Constr | FY 07 |       |       |       |       |
|        |          | uction |       |       |       |       |       |
|        |          | Cont   |       |       |       |       |       |
|        |          | ract** |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Park   | Heating  | \$3    | \$35  |       |       |       |       |
| Lake   | &        | 50,000 | 0,000 |       |       |       |       |
| II     | Ven      |        |       |       |       |       |       |
|        | tilation |        |       |       |       |       |       |
|        | Upgrades |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Br     | F        | \$1,5  | \     |       |       |       |       |
| ittany | ire/Life | 00,000 | $1,50 |       |       |       |       |
| Park   | Safety   |        | 0,000 |       |       |       |       |
|        | Upgrades |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Par    | F        | \$2,0  | \     |       |       |       |       |
| amount | ire/Life | 00,000 | $2,00 |       |       |       |       |
| House  | Safety   |        | 0,000 |       |       |       |       |
|        | Upgrades |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Pic    | Infras   | \$5    | \$55  |       |       |       |       |
| kering | tructure | 50,000 | 0,000 |       |       |       |       |
| Court  |          |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Nort   | Roofing  | \$2    | \$20  |       |       |       |       |
| hridge |          | 00,000 | 0,000 |       |       |       |       |
| II     |          |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Vista  | Roofing  | \$2    | \$20  |       |       |       |       |
| H      |          | 00,000 | 0,000 |       |       |       |       |
| eights |          |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Valli  | Furnace  | \$1,8  | \$36  |       |       | \     |       |
| Kee    | Repl     | 62,500 | 2,500 |       |       | $1,50 |       |
|        | acements |        |       |       |       | 0,000 |       |
|        | &        |        |       |       |       |       |       |
|        | Exterior |        |       |       |       |       |       |
|        | Envelope |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Casa   | Infras   | \$4    | \$20  |       |       |       | \$27  |
| J      | tructure | 75,000 | 0,000 |       |       |       | 5,000 |
| uanita | (c       |        |       |       |       |       |       |
|        | ommenced |        |       |       |       |       |       |
|        | FY 06) & |        |       |       |       |       |       |
|        | Roofing  |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Ced    | Furnace  | \$     | \$4   |       |       |       |       |
| arwood | Rep      | 42,500 | 2,500 |       |       |       |       |
|        | lacement |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Bou    | S        | \$     | \$5   |       |       |       |       |
| levard | heetrock | 50,000 | 0,000 |       |       |       |       |
| Manor  | walls    |        |       |       |       |       |       |
|        | over CMU |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Casa   | F        | \$3,0  |       | \     |       |       |       |
| M      | ire/Life | 00,000 |       | $3,00 |       |       |       |
| adrona | Safet    |        |       | 0,000 |       |       |       |
|        | y/Infras |        |       |       |       |       |       |
|        | tructure |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Plaza  | F        | \$3,2  |       | \     |       |       | \$75  |
| 17     | ire/Life | 50,000 |       | $2,50 |       |       | 0,000 |
|        | Safety   |        |       | 0,000 |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Lak    | Common   | \$1    |       | \$15  |       |       |       |
| ehouse | Area     | 50,000 |       | 0,000 |       |       |       |
|        | Ven      |        |       |       |       |       |       |
|        | tilation |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| ## Pr  | **Scope  | *      | ###   | **FY  | **FY  | **FY  | **FY  |
| operty | of       | *Total | ####  | 08**  | 09**  | 10**  | 11**  |
|        | Work**   | Constr | FY 07 |       |       |       |       |
|        |          | uction |       |       |       |       |       |
|        |          | Cont   |       |       |       |       |       |
|        |          | ract** |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Mardi  | F        | \$2,0  |       | \     | \$80  |       | \$25  |
| Gras   | ire/Life | 50,000 |       | $1,00 | 0,000 |       | 0,000 |
|        | Safety & |        |       | 0,000 |       |       |       |
|        | Roofing  |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Munro  | F        | \$2,3  |       | \$50  | \     |       |       |
| Manor  | ire/Life | 50,000 |       | 0,000 | $1,85 |       |       |
|        | Safety & |        |       |       | 0,000 |       |       |
|        | Decks    |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| J      | Interior | \$1,2  |       |       | \     |       |       |
| uanita | Re       | 00,000 |       |       | $1,20 |       |       |
| Court  | novation |        |       |       | 0,000 |       |       |
|        | &        |        |       |       |       |       |       |
|        | Exterior |        |       |       |       |       |       |
|        | Envelope |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Ri     | F        | \$1,0  |       |       | \     |       |       |
| verton | ire/Life | 00,000 |       |       | $1,00 |       |       |
| T      | Safety   |        |       |       | 0,000 |       |       |
| errace |          |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| J      | Interior | \$1,4  |       |       | \     |       |       |
| uanita | Re       | 00,000 |       |       | $1,40 |       |       |
| Trace  | novation |        |       |       | 0,000 |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Gu     | Fire     | \$5    |       |       | \$50  |       |       |
| staves | Sp       | 00,000 |       |       | 0,000 |       |       |
| Manor  | rinklers |        |       |       |       |       |       |
|        | R        |        |       |       |       |       |       |
|        | esidents |        |       |       |       |       |       |
|        | Units    |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Sout   | Electric | \$7    | \$2   |       |       | \$75  |       |
| hridge | Meters/  | 70,000 | 0,000 |       |       | 0,000 |       |
|        | Building |        |       |       |       |       |       |
|        | Envelope |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Eve    | Interior | \$1,1  |       |       |       | \     |       |
| rgreen | Re       | 50,000 |       |       |       | $1,15 |       |
| Court  | novation |        |       |       |       | 0,000 |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Ced    | I        | \$1,1  |       |       |       | \     |       |
| arwood | nterior/ | 00,000 |       |       |       | $1,10 |       |
|        | Exterior |        |       |       |       | 0,000 |       |
|        | Re       |        |       |       |       |       |       |
|        | novation |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Green  | I        | \$3,6  |       |       |       | \     | \     |
| River  | nterior/ | 00,000 |       |       |       | $1,80 | $1,80 |
|        | Exterior |        |       |       |       | 0,000 | 0,000 |
|        | Re       |        |       |       |       |       |       |
|        | novation |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Kings  | I        | \$1,6  |       |       |       | \     | \$55  |
| Court  | nterior/ | 50,000 |       |       |       | $1,10 | 0,000 |
|        | Exterior |        |       |       |       | 0,000 |       |
|        | Re       |        |       |       |       |       |       |
|        | novation |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| C      | Interior | \$1,9  |       |       |       |       | \     |
| ollege | Re       | 25,000 |       |       |       |       | $1,92 |
| Place  | novation |        |       |       |       |       | 5,000 |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Ea     | Interior | \$1,5  |       |       |       |       | \     |
| stside | Re       | 50,000 |       |       |       |       | $1,55 |
| T      | novation |        |       |       |       |       | 0,000 |
| errace |          |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| Be     | I        | \$4    |       |       |       |       | \$40  |
| llevue | nterior/ | 00,000 |       |       |       |       | 0,000 |
| 8      | Exterior |        |       |       |       |       |       |
|        | Re       |        |       |       |       |       |       |
|        | novation |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| F      | Siding   | \$     |       |       |       |       | \$7   |
| ederal |          | 75,000 |       |       |       |       | 5,000 |
| Way    |          |        |       |       |       |       |       |
| Houses |          |        |       |       |       |       |       |
+--------+----------+--------+-------+-------+-------+-------+-------+
| **T    |          | **\$   | **\$5 | **\$7 | **\$6 | **\$7 | **\$7 |
| OTAL** |          | 34,620 | ,475, | ,150, | ,750, | ,400, | ,575, |
|        |          | ,000** | 000** | 000** | 000** | 000** | 000** |
+--------+----------+--------+-------+-------+-------+-------+-------+

# Section VII: Owned and Managed Units

This Section provides information required under KCHA's MTW Agreement on
performance indicators for public housing units under KCHA management.

## A. Vacancy Rates

The tables below provide the vacancy rates for public housing
developments as of April 1, 2006. The Authority provides annual
snapshots of performance indicators and other data for April 1 of each
year of the Demonstration because the timing of MTW Annual Plan
submission does not allow for end-of-fiscal-year data to be gathered and
analyzed.

  -------------------------------------------------------------------------------
  **DEVELOPMENT**                   **HOUSEHOLDS**   **UNITS**   **VACANCY RATE**
  --------------------------------- ---------------- ----------- ----------------
  AVONDALE MANOR                    20               20          0.0%

  BALLINGER HOMES                   110              110         0.0%

  BELLEVUE SINGLE-FAMILY HOMES      8                8           0.0%

  BOULEVARD MANOR                   70               70          0.0%

  BRIARWOOD                         70               70          0.0%

  BRITTANY PARK                     43               43          0.0%

  BURNDALE HOMES\*                  49               50          2.0%

  CAMPUS COURT                      13               13          0.0%

  CASA JUANITA                      80               80          0.0%

  CASA MADRONA                      67               70          4.3%

  CASCADE APTS                      107              108         0.9%

  CEDARWOOD                         25               25          0.0%

  COLLEGE PLACE                     51               51          0.0%

  EASTRIDGE HOUSE                   40               40          0.0%

  EASTSIDE TERRACE                  50               50          0.0%

  EVERGREEN COURT                   30               30          0.0%

  FIRWOOD CIRCLE                    46               50          8.0%

  FOREST GLEN                       40               40          0.0%

  FOREST GROVE                      25               25          0.0%

  GLENVIEW HEIGHTS                  10               10          0.0%

  GREEN RIVER HOMES                 59               60          1.7%

  GREENLEAF                         27               27          0.0%

  GUSTAVES MANOR                    35               35          0.0%

  JUANITA COURT                     30               30          0.0%

  JUANITA TRACE                     30               30          0.0%

  JUANITA TRACE II                  9                9           0.0%

  KINGS COURT                       30               30          0.0%

  KIRKWOOD TERRACE                  28               28          0.0%

  MARDI GRAS                        61               61          0.0%

  MUNRO MANOR                       60               60          0.0%
  -------------------------------------------------------------------------------

  ------------------------------------------------------------------------------
  **DEVELOPMENT**                  **HOUSEHOLDS**   **UNITS**   **VACANCY RATE**
  -------------------------------- ---------------- ----------- ----------------
  NORTHRIDGE HOUSE I               69               70          1.4%

  NORTHRIDGE HOUSE II              70               70          0.0%

  PARAMOUNT HOUSE                  70               70          0.0%

  PARK LAKE HOMES I & II Hope VI   131              569         Redevelopment
  Site                                                          

  PARK LAKE HOMES II               164              165         0.6%

  PICKERING COURT                  30               30          0.0%

  PLAZA 17                         70               70          0.0%

  RIVERTON TERRACE                 60               60          0.0%

  SHOREHAM                         18               18          0.0%

  SOUTHRIDGE HOUSE                 80               80          0.0%

  SPRINGWOOD APTS                  321              333         3.6%

  THE LAKE HOUSE                   70               70          0.0%

  VALLI KEE HOMES                  114              114         0.0%

  VICTORIAN WOODS / FEDERAL WAY    16               18          11.1%
  HOMES                                                         

  VISTA HEIGHTS                    29               30          3.3%

  WAYLAND ARMS                     67               67          0.0%

  WELLSWOOD                        30               30          0.0%

  YARDLEY ARMS                     67               67          0.0%

  YOUNGS LAKE                      25               28          10.7%

  **DEVELOPMENTS NOT UNDER         2,693            2,756       1.1%
  REDEVELOPMENT**                                               
  ------------------------------------------------------------------------------

Excluding Park Lake Homes, which is under redevelopment, the overall
vacancy rate as of April 1, 2006, was 1.1% percent. The Authority
expects a similarly low overall vacancy rate for its public housing
properties in FY 2007.

## B. Rent Collections

The Authority anticipates collecting over 98 percent of the public
housing rents assessed during FY 2007. This was the rent collection
level during FY 2006.

## C. Work Orders

KCHA's anticipates responding within 24 hours to 100 percent of the
requests for emergency maintenance work orders during FY 2007. The
Authority also projects responding within 30 days to at least 97 percent
of the requests for regular maintenance work orders during FY 2007.
These were the maintenance work order response levels during FY 2006.

## D. HQS Inspections

HUD's Housing Quality Standards regulations currently require that each
public housing unit and system be inspected annually. KCHA is on track
to complete 100 percent of HQS inspections during FY 2006. KCHA will
review and possibly modify inspection procedures in FY 2007, but will,
pending such notifications, continue to inspect public housing units and
systems in accordance with the Housing Quality Standards in FY 2007.

## E. Security

KCHA employs strict suitability standards for screening applicants,
including the use of criminal background checks by local, state, and
federal law enforcement agencies, as a primary strategy to ensure that
its communities are safe places for households to live. Proactive and
consistent lease enforcement by housing management staff is the
Authority's next line of defense in its anti-crime strategy. KCHA
continues the operation of the core strategies previously funded under
the Drug Elimination Grant (DEG), although the defunding of DEG has
severely curtailed certain drug and crime prevention programs. These
core strategies include:

-   Partnerships with Police Departments throughout the Authority's
    jurisdiction. KCHA has developed and maintains strong relationships
    with police departments to ensure that public housing residents
    receive the services they need for their safety and security. These
    relationships take the form of contracts with police departments
    funded by KCHA and Memoranda Of Understanding between the Authority
    and other local law enforcement agencies. Police Department
    cooperation with management is especially crucial for KCHA's ability
    to access information needed to successfully pursue evictions or
    other solutions in cases of serious criminal and drug activity.

-   Community Policing. KCHA is continuing its community policing
    programs in some family communities through the use of public
    housing reserves. These programs foster a cooperative relationship
    between residents and community police officers. Several sites have
    community police substations on site to deter criminal activity and
    assist residents in their efforts to enhance safety through the
    establishment of block watches and other efforts.

-   After-School and Summer Programs. The Authority has developed
    partnerships with numerous service providers and community-based
    organizations to offer on- and off-site programs and activities for
    children. These include youth sports, homework and youth tutoring
    programs, and summer day camps. A list of these services is included
    in Appendix F.

-   Public Housing Safety Initiative. During FY 2006, the Authority was
    awarded a two year grant in the amount of \$600,000 from the
    Department of Justice to provide a combination of safety prevention
    and intervention services in three public housing developments. The
    grant, which is scheduled to run through March 2008, provides for
    additional community policing efforts and increased after school and
    late night programs for at-risk youth.

The Authority's transition of its public housing operations to
property-based management will increase the on-site presence of
management and maintenance staff and lead to closer management-tenant
relationships, which is anticipated to increase the sense of security
and safety among residents.

## 

## F. MTW Demonstration Initiatives

## 1. Property-Based Management 

During FY 2005, KCHA implemented a property-based management
demonstration by transitioning the operations of one of its five
geographic areas (South Area) from a centralized, program-based model to
a site-based asset management model. Under this model, the Authority is
combining features of private sector property management with aspects of
a program-based management model to equal the efficiencies of private
sector practices. Under KCHA's property-based management system, the
authority for making decisions affecting public housing is decentralized
to staff most closely connected to the developments.

The following management responsibilities were transferred from
area-based to property-based staff in the demonstration area:

-   Monitoring of budgets and financial reports

-   Staffing decisions

-   Purchasing

-   Ongoing maintenance, including work orders

-   Unit turnover

In FY 2006, the demonstration expanded to the entire public housing
inventory. In addition to decentralizing the responsibilities listed
above, the following property management tasks were transferred to
property-based staff:

-   Property-Based Budgeting. The property-based budgets for FY 2005 and
    FY 2006 were developed primarily by central office staff. In FY
    2007, responsibility for developing budgets for individual
    properties, based on actual property specific data from the previous
    year, was transferred to the property managers.

-   Capital Planning. Property-based staff have become more involved in
    assessments of capital priorities.

KCHA will continue to develop its own performance measures and
assessment tools as part of its transition from a program-based to a
property-based system. Primary objectives for FY 2007 include the need
to more fully automate access to financial data, increase availability
and use of productivity tools and to the provision of increased training
to staff regarding financial statement use and analysis.

A key aspect of the shift towards property-based management has been the
development of project-based budgets and accounting reports. During FY
2007, KCHA will continue work toward implementation of a property-based
financial management systems that meet the needs of the Public Housing
program.

## 2. Policy-Related Streamlining Initiatives

The major policy initiatives to be initiated or completed in FY 2007
focus on administrative efficiencies, resident self-sufficiency and
customer service.

## Rent Policy

Central goals of rent policy reform include administrative
simplification of the current policy and encouragement of resident
self-sufficiency. A number of areas will be targeted, including, but not
limited to:

-   Simplification or replacement of the excessively burdensome earned
    income disregards. The Authority is committed to expanding
    employment incentives and rewarding work.

-   Income verification.

-   Frequency of annual reviews.

-   Utility allowance determination.

-   Simplification of medical deductions and other income adjustments
    related to rent determination.

## Admissions Policies

In conjunction with the transition to property-based management, KCHA
implemented a Centralized Applications system in FY 2006 in order to
ensure consistent application of admissions policies and to streamline
operations. During FY 2007, KCHA staff will continue to review and
modify processes, as necessary, to ensure that staff and applicants are
not bogged down by complex layers of admissions-related policies and
procedures. Policies will be designed to remove eligibility barriers,
where appropriate, for hard to house populations, and increase applicant
choice and access to programs while not creating a disparate impact
toward protected classes.

## 3. Other Initiatives

The Authority will continue to explore all options for administrative
streamlining detailed under the MTW Agreement, including the following:

-   Allowing transfers of clients between the Section 8, local programs
    and public housing programs under some circumstances. Revising other
    elements of the transfer policy.

-   Exploring changes in the eligibility policy regarding single,
    nondisabled, non-elderly persons.

-   Exploring options to streamline the grievance procedures.

-   Adopting a locally designed lease consistent with MTW initiatives,
    including provisions regarding utility consumption sub-metering and
    smoke free environments.

-   Exploring and implementing revisions, if any, to inspection
    protocols.

-   Exploring options for revisions to current income calculation and
    verification practices and procedures.

-   Ongoing review of the Admissions and Continued Occupancy Plan to
    seek ways to simplify the Authority's policies and procedures.

# Section VIII. Management Information for Leased Housing

This Section discusses performance measures and objectives required
under KCHA's MTW Agreement with HUD and focuses on the Authority's
efforts to improve program performance under the MTW Demonstration. MTW
initiatives related to policy reforms are discussed in Section II.

## A. Leasing Information

## 1. Lease-up rate

As discussed in last year's annual plan, the Housing Authority's
strategy in leasing units changed when Congress mandated a change from a
funding-based system to a budget-based system and capped Housing
Assistance Payment levels at a level below full funding. Under the new
strategy, the goal is to fund as many vouchers as possible under
existing budget constraints. As a result, lease-up rates were reduced in
FY 2005 and FY 2006. Changes under KCHA'S MTW Program to contain per
unit costs have enabled KCHA to restore vouchers previously pulled out
of circulation. KCHA anticipates its lease-up percentage to be just over
97% by the end of its 2006 fiscal year, and is projecting 99% lease-up
rate in FY 2007.

## 2. Ensuring Rent Reasonableness

KCHA will continue to use the services of Dupre + Scott, a professional
real estate consulting firm that conducts rental market research in the
Puget Sound Region. Dupre + Scott publishes a customized (for the
Section 8 Program) annual rent reasonableness report based on an
extensive survey of rental units in rental sub-markets across King
County. The report establishes a maximum rent for housing units based on
a number of factors, including its location, size, quality, type,
amenities, utilities and general condition. This year, KCHA added a new
web-based resource to provide additional information for performing Rent
Reasonable tests. The new website gives data on all apartment buildings
in the Seattle-King County area with 50 or more units. The data includes
total number of units, age of building, square footage by bedroom size,
rental price of last units rented as well as comparable units within a
stated number of miles. A trained Section 8 inspector uses these reports
as a guide for making rent reasonableness determinations. KCHA staff
make rent reasonableness determinations for all units rented under the
Section 8 program, including units owned by KCHA.

## 3. Expanding Housing Opportunities and Deconcentration

The following are descriptions of strategies the Authority is using to
increase the housing opportunities for low-income households through the
Section 8 program:

## Housing Choice Voucher Project Based Assistance Program 

The Authority has developed and implemented a local Housing Choice
Voucher Project Based Assistance program to preserve and increase the
range of housing options available to low-income households and to offer
more housing opportunities in low-poverty areas. KCHA does this by
converting tenant-based vouchers to Project Based Assistance, which is
tied directly to a project through a contract with an owner for a
specific number of units. The owner is obligated to house Section
8-eligible tenants in this housing and to abide by any other program
parameters established by KCHA and/or partner funders.

Different categories of vouchers will be allocated for a range of
population groups and purposes. These include both transitional and
permanent housing opportunities for individuals and families with
children who may in certain cases need on-site support services. General
numerical targets for units to be project-based in each category are as
follows:

1.  [Private Housing Program]{.underline} (Off-site HOPE VI Replacement
    Housing): KCHA will project-base 269 replacement vouchers under the
    Park Lake HOPE VI project in housing it controls, and in projects
    owned by nonprofit organizations and funded by A Regional Coalition
    for Housing (ARCH) (about 120 units) or other government funders.
    The intent of this initiative is to deconcentrate the supply of
    subsidized housing by shifting it from one of the most impoverished
    communities in the region to more affluent neighborhoods.

> *Units currently under contract: 190*

2.  [Public Housing Redevelopment]{.underline} (On-site Public Housing
    Replacement Housing): To replace or redevelop public housing units
    on-site at former Public Housing sites, KCHA will permanently and/or
    temporarily project-base up to 280 units to serve new and returning
    residents at Greenbridge. Further use of this tool may be
    contemplated if additional redevelopment sites are identified.

###### Units currently under contract: 110

3.  [Housing for formerly homeless families]{.underline}: KCHA will work
    with the Bill and Melinda Gates Foundation's Sound Families
    Initiative to create up to 230 units of supportive housing for
    formerly homeless families.

> *Units currently under contract: 134*

4.  [Supportive Housing:]{.underline} Housing and Services Program
    (HASP) Vouchers will be made available for project-basing to create
    or preserve service-enriched permanent housing opportunities in up
    to 150 units for disabled households and individuals who need
    on-site support services.

> *Units Currently Under contract: 25*

5.  [Families with Children:]{.underline} To increase housing
    opportunities for households with children in low-poverty,
    employment-rich areas with limited subsidized housing opportunities,
    KCHA may commit Project Based Assistance for up to an additional 100
    units in such projects. Such opportunities may be pursued only after
    KCHA's replacement housing goals have been met and will be
    conditioned on the availability of additional vouchers.

> *Units Currently Under contract:0*

6.  [Local Preservation:]{.underline} KCHA may attach Project Based
    Assistance to up to 150 units in projects that require temporary or
    permanent operating subsidies in order to serve extremely low-income
    households.

> *Units Currently Under contract: 73*

7.  [King County's Community Plan to End Homelessness:]{.underline} As a
    partner in the Committee to End Homelessness, KCHA reserves the
    right to identify new program categories that specifically serve
    homeless households and further the goals of the King County Plan to
    End Homelessness for up to 100 units.

> *Units Currently Under contract: 0*

8.  [Transition in Place:]{.underline} If resources are available, KCHA
    will allocate up to 40 "transition in place" vouchers to
    Transitional Housing Programs that are funded by KCHA and Sound
    Families as needed.

> *Units Currently Under contract: 0*

9.  [Demonstration Programs:]{.underline} KCHA reserves the right to
    provide Project Based Assistance to up to 100 units in a limited
    number of pilot projects that will serve an important public
    purpose, but may not qualify under the Program's identified programs
    or policies.

> *Units Currently Under contract: 0*

**Housing Choice Voucher Tenant Based Programs Serving Special Needs
Populations**

KCHA partners with a number of agencies to provide housing opportunities
for populations and households that may not otherwise be able to take
advantage of the Section 8 program and who need supportive services.

To better serve households with disabilities, KCHA created the Housing
Access and Services Program (HASP) in partnership with a consortium of
human service and behavioral health systems. Under this program, support
services are in place to assist disabled participants in 1) utilizing
their vouchers by finding suitable housing and 2) intervening in crisis
situations when a tenant is at risk of losing their housing. Due to
KCHA's commitment in this area, 39% of all KCHA's Section 8 participants
are now disabled households.

To better serve families with special needs, KCHA partners with
nonprofit agencies that serve survivors of domestic violence and
families with parents who have been, or are at risk of being, separated
from their children due to homelessness. KCHA's service partners are
seeking funding to provide supportive services to additional
participants in FY 2007.

## Exception Rent Areas 

To ensure that Section 8 clients can access housing throughout King
County, the Authority continues to establish exception rent areas where
the rent payment standard is higher than in other areas. Due to funding
cuts in FY 2004, the exception area rents were reduced from 120 percent
to 115 percent of HUD's Fair Market Rents (FMRs). The lower payment
standard has remained the same since that time. However, with a recent
increase in the FMR and the stabilization of HUD funding, the Housing
Authority is proposing an increase back to the 120 per cent level in the
exception areas to assist families struggling to obtain and maintain
housing in those areas.

## Landlord Outreach 

The Authority does extensive outreach to current and potential landlords
through a variety of methods. Those methods include staffing a Section 8
information booth at TRENDS/Rental Housing Management Conference and
Trade show, periodic information mailings to let the landlords know of
upcoming changes to the program, and continued refinements to the KCHA
webpage to make it easier for a landlord to gain information about the
program and list any available units.

## Inspection Strategy 

Implementing an effective and efficient Section 8 Housing Quality
Standards inspection program for KCHA's large jurisdiction -- it covers
almost 2,000 square miles -- is a significant challenge.

In FY 2004, KCHA adopted changes to its inspection protocols to ease the
burden on participants and landlords and to streamline the inspections
process. These changes include:

-   Allowing KCHA Section 8 staff to inspect KCHA-owned units;

-   Allowing owners and participants to self-certify corrections of
    minor HQS inspection fail items identified during annual
    inspections.

Additional changes to inspection protocols described in previous plans
will continue to be pursued as part of this year's goals. Additional
changes will be considered this year, with the intent of:

-   Reducing the number of annual inspections through sampling in
    buildings with large numbers of Section 8 families or other
    approaches.

-   Creating a more efficient inspection system by separating the annual
    review from the inspection allowing for clustering of inspections
    located in the same neighborhood or in the same building. Modifying
    initial re-inspection cycles to facilitate the switchover to a
    clustered inspection program.

-   Exploring policy options for reducing the number of missed
    inspections.

-   Accepting inspections by other parties (State Housing Finance
    Commission, County Affordable Housing Program) whose practices and
    standards are similar to those of KCHA.

In pursuing these initiatives, KCHA will continue its commitment to
provide safe, decent, and sanitary housing for all its Section 8
participants.

## 

## B. New MTW Demonstration Initiatives

During FY 2006, the Housing Authority received approval from HUD to
include all HUD-Funded vouchers (except for a small portion designated
for the Mainstream Program) into a single Block Grant. As a result, the
Housing Authority is allowed to apply a single set of program policies
and procedures to the administration of the program. Changes to be
explored and/or implemented under this initiative may include the
following areas:

-   Eligibility criteria for tenants;

-   Property and owner eligibility criteria;

-   Review of rent policies including income inclusions and exclusions,
    deductions, minimum rent, timing of reviews, method of rent
    calculation, and subsidy levels;

-   Expansion of methods of income verification;

-   Waiting list procedures and tenant selection procedures, criteria
    and preferences;

-   The content of the Housing Assistance Payments Contract;

-   Family Obligations;

-   Portability and moving procedures and policies;

-   Alternative means of setting rent payment standards and exception
    payment standards;

-   Standards and procedures for reviewing, setting, and implementing
    utility allowances;

-   Eligibility policy regarding single persons who are not disabled and
    not elderly, live-in aides, and residual family members;

-   Further refinement of the Project Based policy and procedures;

-   Changes to the Inspection protocol.

-   Targeting of vouchers to specific priority populations and
    supportive service providers in coordination with the local 10 Year
    Plan to End Homelessness program priorities and funding.

##  

# Section IX. Resident Programs

This Section describes current resident support services programs
available to King County Housing Authority public housing residents and
Section 8 participants. This Section also describes issues and proposed
actions to be taken in this area during FY 2007. Appendix F provides a
comprehensive list of services now available to KCHA's residents.

## A. Services and Programs

## Strong families are the heart of KCHA's communities. Resident Services provides an array of programs that strengthen families and promote resident self-sufficiency. These services are broadly divided into programs for children and youth; services that create opportunities for residents of all ages to develop career preparedness skills, earn a livable wage and build assets; and finally, services that support seniors and younger disabled populations. KCHA continues to provide these services as a fundamental commitment to its residents in spite of diminished resources available from HUD. In addition, KCHA recognizes that it serves a population that is culturally, socially, and economically diverse and is committed to partnering with a wide range of service organizations to ensure the appropriate delivery of support services to residents living within its housing communities. 

## 1. Children and Youth Support Services 

This effort coordinates youth support activities, both educational and
recreational, delivered at public housing sites and other properties
operated by KCHA. KCHA funds and monitors a series of programs and links
on-site activities to community-based programs. Working with Puget Sound
Educational Service District, KCHA provides three on-site Head Start
centers within the Authority's largest public housing communities.
Working with Boys and Girls Clubs, Neighborhood House, Center for Human
Services and Kent Youth and Family Services, KCHA provides after-school
and late night recreation activities, mentoring programs, homework
assistance and computer center activities to children of all ages.

## 2. Self-Sufficiency Services and Programs

A core KCHA strategy is the creation of support and opportunities for
residents in public housing and those in the Section 8 program to obtain
employment, retain their jobs, increase their incomes and move to
unsubsidized housing. These efforts include:

-   **Career Development Centers**. Two Centers are strategically
    located in KCHA's two largest low income communities to serve large
    numbers of families who receive Temporary Assistance for Needy
    Families (TANF) and other public support. The great majority of
    these families are immigrant and refugee families and the Centers
    focus on providing these residents with an array of services
    including pre-employment training (ESL, GED, job skills
    development), as well as job placement and retention services. The
    Greenbridge CDC (formerly known as the Park Lake CDC) is playing a
    significant role in achieving the site's HOPE VI Community Support
    Service goals while the newly created Kent Family Center CDC
    coordinates with a co-located Head Start Center and WIC Clinic to
    serve low-income families in Kent. KCHA also works with the region's
    community colleges to provide outreach and services to households in
    KCHA' smaller public housing complexes.

-   **Section 8 Family Self-Sufficiency Program.** Section 8
    participants contract with the Housing Authority for up to five
    years to create an escrow account in which the difference between
    their base rent and subsequent higher rents due to increases in
    income is deposited. When FSS participants who have met their
    program goals are ready to end their contract, they receive the
    balance in their escrow account, which can be used for
    homeownership, higher education, or small business development.

## 3. Support Services Coordination for Elderly and Younger Disabled Households

Support Service Coordinators serve residents of 21 mixed-population
public housing buildings (senior and younger disabled households) to
provide assistance and coordinate outside support services with resident
needs. The coordinators help residents assess these needs and link to
community-based services that enable them to remain independent and
healthy for as long as possible. KCHA also works with and coordinates
services, including transportation, provided to residents by
Neighborhood House, Senior Services and other partner agencies.

## Additional Resident Support Service Activities

## Reasonable Accommodations

The Authority provides a 504 Reasonable Accommodation program, which
coordinates responses to resident and applicant requests for reasonable
accommodation in public housing and for Section 8 participants and
applicants.

## Section 8 Partnerships with Human Service Organizations

KCHA coordinates the provision of supportive services to residents with
special needs housed through the Section 8 Housing Choice Voucher
Program. The largest of these partnerships is HASP, the Housing Access
and Services Program, which ensures that people with disabilities find
and maintain housing by connecting the resources of Section 8 to the
supportive services of King County\'s human service systems. Over 1,400
disabled individuals are housed through this program.

Other KCHA partnerships with nonprofit providers serve survivors of
domestic violence, people transitioning from nursing homes, homeless
parents reuniting with their children, and other groups who need
supportive services connected to affordable housing.

## Project-Based Assistance Program

KCHA has made Project-Based Section 8 operating subsidies available to
housing owners and service agencies to assist in the development of
transitional and permanent housing. Many of these projects serve people
with special needs. The project-basing program leverages substantial
investment in support services through local partnerships. One example,
the Sound Families Program sponsored by the Bill and Melinda Gates
Foundation, creates supportive housing with extensive support services
for formerly homeless families. This program aids in KCHA's efforts to
broaden housing choices. Other initiatives include KCHA's partnership
with the King County Behavioral Health Care System and United Way to
develop permanent housing for chronically homeless individuals and
coordination with the County's efforts under the 10 Year Plan to End
Homelessness.

## Public Housing Homeownership Program

This program offers information, counseling and educational workshops
and individual homeownership support to eligible residents of KCHA. A
pilot program begun in 1997 focused on homeownership for residents at
the Youngs Lake public housing development. This program was successful
in assisting residents in their efforts to become self-sufficient and
transition to homeownership. The current homeownership program,
implemented in FY 2004 in partnership with the Seattle Housing Authority
and funded by a ROSS grant, has as its goal the acquisition of homes by
30 public housing residents over a three-year period. The Seattle
Metropolitan Urban League in partnership with International District
Housing Alliance and El Centro de la Raza is responsible for
implementing this program. The program ends in July 2005 and the goal of
30 new homeowners has been meet. Using its MTW flexibility, KCHA has
provided up to \$15,000 in pre- and post-purchase assistance to eligible
households.

## AmeriCorps Program

KCHA provides staffing, supervision, and coordination of a 12-member
team of AmeriCorps volunteers who work in public housing, school and
community settings to support the needs of residents, including youth
tutoring and adult education.

**6. Hope VI Family Services**

The HOPE VI Family Services staff works with families displaced by the
HOPE VI redevelopment project before, during and after they transition
from Park Lake Homes to provide assistance with relocation, housing
stability assistance, emergency issues, self-sufficiency and long term
goal development.

In addition, KCHA utilizes informal and formal relationships with local
community agencies to provide HOPE VI families with additional support
services including homeownership, employment and training, financial
planning, youth activities and healthcare. Over 30 families vacating the
Park Lake site have bought houses - some of them through the
Homeownership Program mentioned above. Services will be available
through 2009 when it is anticipated that all former Park Lake Homes
residents who wish to return to the new community will have had the
opportunity to do so.

## B. Issues and Proposed Actions

The major challenges to the Authority in FY 2007 are the continuation of
the well-established services and programs discussed above, given HUD's
significant erosion of financial support for resident support
activities, and the expansion of resident self-sufficiency efforts. The
Authority will address the following priorities related to resident
services in FY 2007.

## 1. Initiatives to Strengthen Self-Sufficiency Outcomes

KCHA will continue to operate its existing self-sufficiency programs
referenced above. In addition, the Authority will develop a five-year
economic self-sufficiency strategy for Public Housing residents and
Housing Choice Voucher program participants that will include a
continuum of initiatives to address homelessness prevention, housing
stability, employment, job retention, income progression and
transitioning to subsidy-free living. Included in this initiative will
be the development of an integrated tracking system for monitoring the
success of residents who participate in these self-sufficiency
initiatives. This effort may be combined with the implementation of a
new rent policy with more effective employment incentives.

**2. Continuing to Address the Needs of the Senior and Younger Disabled
Populations**

The Authority adopted a new Housing Designation Plan for its 21 senior
and younger disabled buildings in FY 2005. The Support Services
Coordination Program will continue to serve residents in these
buildings. The Authority will also provide services under its Title XIX
Medicaid Administrative Claiming contract with the State of Washington
that began last year. This contract provides additional financial
support and program flexibility to allow Support Service staff to better
serve Medicaid-eligible residents.

KCHA has begun a nutrition and wellness pilot initiative with Senior
Services of Seattle/King County aimed at providing health programs in
the mixed population buildings. The Authority plans to expand this
program to all of its mixed population buildings this year.

3.  **Improving Safety in public housing communities**

In late 2005, KCHA, in partnership with two police departments, several
community service providers and the United States Attorney's Office, was
awarded a public housing safety initiative grant to deliver crime
prevention and intervention services in three housing developments. This
grant provides the ability to improve the physical environment of each
development, increase community policing efforts, create new safety
measures and provide additional after school and late night activities
for at-risk youth.

4.  **Expanding social services in tax credit properties**

Many of KCHA's bond and tax credit properties have a resident population
similar to public housing communities. Increasingly these sites are home
to tenant or project based housing choice voucher holders. Residents
would benefit from services that support economic self sufficiency and
after school youth education and recreation programs. Over the next
year, KCHA will explore the development of a support service strategy
targeted to these communities.

5.  **Creating Better Facilities to Increase Family Support Services**

Over the past several years KCHA has worked with its community service
partners to create, expand and upgrade facilities to enhance program
delivery and access to services for all public housing and Section 8
residents.

-   **Kent Family Center.** In 2004, the Authority, working in
    partnership with Puget Sound Educational Service District and two
    community-based non-profit service providers, completed fundraising
    and construction of a new Kent Family Center. This two-story 20,000
    square foot building houses Head Start, a WIC Clinic and a career
    development center at Springwood, KCHA's largest public housing site
    in south King County.

-   **Springwood Youth Center.** In 2005, the same partnership that
    built the Kent Family Center began raising the capital needed for
    the replacement of the Springwood Community Center with a new Youth
    Center. This 10,800 Center is scheduled to open in August 2006 and
    will provide a state of the art space for after school and late
    night youth activities.

-   **Greenbridge Community Service campus**. As part of the Greenbridge
    HOPE VI project, KCHA is working with over a dozen long time service
    agencies to create a coordinated network of facilities that will
    support comprehensive services for the community. The first building
    completed on land provided by the Housing Authority is the new White
    Center Heights Elementary School, which has been designed as a
    community school, with facilities open to the community after school
    hours The School opened in 2005. Other projects on the 8^th^ Avenue
    campus include:

-   **The Jim Wiley Community Center**. Rehabilitation of this 23,000
    square foot facility to provide youth tutoring, mentoring and
    recreation, family and individual case management, adult basic
    education, ESL and citizenship classes, senior activities cultural
    cases, EITC assistance, energy assistance, community meeting and
    gathering spaces is underway. Re-occupancy is expected in early
    2007.

-   **The YWCA Learning Center at Greenbridge**. This development of an
    8,000 square foot building by the YWCA will include a branch library
    and Washington State University Cooperative Extension Program. The
    Learning Center will provide job search assistance, employment case
    management, youth leadership programs, literacy enrichment, distance
    learning, 4-H programming and basic computer classes. Scheduled to
    open in 2008.

-   **The Greenbridge Early Learning Center.** Developed in partnership
    with the Puget Sound Educational Services District, this 22,000
    square foot building will provide Head Start programs, parenting
    classes, employment services for Head Start parents, regional
    training programs, support and training for informal childcare
    providers, child care, home visits, prenatal/infant/toddler
    services. Scheduled to open in 2008.

To support capital fundraising activities at Greenbridge and Springwood,
KCHA has established two 501(c)3 partnerships with non-profit service
providers. These partnerships, Building Better Futures and the
Greenbridge Foundation, have already been successful in raising close to
\$8 million to assist in the development of these facilities.

# Section X. Other Information Required by HUD

KCHA Commission Resolution and Required HUD Certifications

-   Board Resolution Adopting this FY 2007 MTW Annual Plan

-   PHA Certification of Compliance with MTW Plan Requirements

-   Certification for a Drug-Free Workplace

-   Certification of Payments to Influence Federal Transactions

-   Disclosure of Lobbying Activities

-   FY 2005 Audit Report in Compliance with OMB Circular A-133

# *To access electronic copies of the Board Resolution and related Certifications, please click the icons below:*

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Funding Allocation Forms

-   Calculation of Operating Subsidy

-   Capital Fund Program Estimate

-   Section 8 Estimate of Total Required Annual Contributions for
    Mainstream Vouchers

*To access electronic copies of Funding Allocation forms, please click
the icon below:*

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# Section XI. Community Review of the MTW Plan and Ongoing Policy Formulation

## A. Coordination and Public Notice

The King County Housing Authority is committed to ensuring the MTW
Annual Plan is developed in an open environment that encourages public
and resident review and input. Under guidelines established by the
Housing Authority, "Draft" MTW Annual Plan for FY 2007 was made
available for public review and comment for a minimum period of 45-Days.
Public Notification of "draft" Plan availability was advertised as
follows:

-   Posted on KCHA's website (kcha.org);

-   Posted within all KCHA Public Housing Management offices and each
    development; *and*,

-   Published in the Northwest Asian Weekly and the Seattle Times.

Copies of the "draft" Plan were made available, upon request, to all
interested parties.

In addition, copies of the "draft" MTW Plan were distributed to the
Resident Advisory Councils (RAC) prior to the RAC's regularly scheduled
meetings on June 27^th^ and 29^th^ , 2007. RAC meetings on June 27^th^
and 29^th^ allotted time to review "draft" Plan components, answer
questions and invite further comment and input prior to the Public
Hearing scheduled for August 11, 2007. In response to the RAC request, a
revised draft Plan was forwarded to all members on July 18, 2007.

The efforts commenced with a Public Hearing on August 11^th^, 2006 at
the Kent Family Center, during which participants were invited to
present input and comment on the "draft" Plan. A copy of the Authority's
presentation regarding the Plan is appended as Appendix G.

## B. Comments Received 

Comments regarding KCHA's FY 2007 MTW Annual Plan are summarized below:

  ----------------------- ----------------------- -----------------------
  **Name**                **Comment**             **KCHA Response**

  Jolene B.               Generally liked the     Duly noted -- no
                          plan; Concerned with    changes in plan as a
                          the focus to "End       result.
                          Homelessness" -- wanted 
                          to ensure this did not  
                          mean KCHA intended to   
                          lower screening         
                          standards that could    
                          result in increased     
                          problems associated     
                          with crime/drugs        

  **Name**                **Comment**             **KCHA Response**

  Joe Ingram              Gave positive support   Agreed with the request
                          to the goals and to the to provide materials as
                          Plan development        early as possible to
                          process. Requested      facilitate review.
                          materials mailed as far Committed to providing
                          in advance of meetings  a revised draft --
                          as possible. Suggested  mailing to RAC members
                          a revised draft be      completed July 18,
                          distributed to RAC      2006.
                          members when available. 

  Terry Dige              Stated her appreciation Responded to Ms. Dige's
                          of the Plan's focus on  question regarding
                          children and the        occupancy standards.
                          disabled community.     Comments did not result
                          Questioned KCHA policy  changes in the draft
                          regarding bedroom size  Plan.
                          allocations.            

  Terry Stewart           Commented that she      As the MTW Plan follows
                          liked the plan, but     an established format,
                          would like to see a     a separate section has
                          section on              not been added.
                          homeownership. Noted    However, KCHA's efforts
                          the plan included       to increase
                          planned changes in the  homeownership are
                          delivery of water to    illustrated throughout
                          residential units and   the Plan. Reported on
                          inquired about the HA's efforts to reduce water
                          progress in reducing    usage which have
                          water consumption.      resulted in a 17%
                                                  decrease in water
                                                  costs.

  Unknown                 Question raised about   Explained that the Plan
                          the HA's plan to        indicates the HA
                          redesign its current    anticipates, during
                          rent structure.         FY07, to investigate
                                                  potential changes in
                                                  the current rent and
                                                  income policies.
                                                  However, prior to
                                                  implementation of any
                                                  changes, residents
                                                  would be provided with
                                                  the opportunity to
                                                  review and provide
                                                  feedback on an proposed
                                                  changes
  ----------------------- ----------------------- -----------------------

  ----------------------- ----------------------- -----------------------
  **Name**                **Comment**             **KCHA Response**

  Unknown                 Suggestion that for     Suggestion appreciated
                          greater exposure, the   -- As a result,
                          Notice of draft Plan    Management staff was
                          availability could be   instructed to post the
                          posted on-site in each  Public Notice on all
                          development.            Site bulletin boards
                                                  and in all Laundry
                                                  rooms within PH
                                                  developments.

  Sharon Bosteder         Commented that the FY07 
                          Plan seemed greatly     
                          improved over prior     
                          Plans                   
  ----------------------- ----------------------- -----------------------

## C. Future Program Changes

KCHA is committed to working with key stakeholders to ensure public and
participant input into policy formulation. KCHA will utilize a range of
forums, including Resident Advisory Committee meetings, resident and
program participant surveys, focus groups and public hearings, as
appropriate, to solicit feedback regarding proposed program changes. A
particular challenge for KCHA is the broad ethnic diversity of its
residents and voucher-holders. To address this issue, KCHA will continue
to provide translation and interpretation services to help ensure full
participation.

# Appendices

APPENDICES

## 

## FY2007 MTW Plan 

# *To access electronic copies of Appendices included in the KCHA MTW FY 2007 Annual Plan, please click the icons below:*

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