Executive/Council Action Form (ECAF)
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Motion 25-575, approving a change of scope for the HASCO 200th Street Redevelopment Project awarded AHBH funding
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DEPARTMENT: Human Services
ORIGINATOR: Jackie Anderson
EXECUTIVE RECOMMENDATION: Approved by Lacey Harper 12/9/25
PURPOSE: Change of Scope Motion 2024 AHBH HASCO 200th St. Project Award
BACKGROUND: County Council approved Motion 24-425 making 2024 Affordable Housing and Behavioral Health (AHBH) affordable housing awards which included the HASCO 200th St. Redevelopment Project. The Housing Authority of Snohomish County (HASCO) has submitted a request to approve a change in scope for the project. There have been several factors that have impacted the project’s original scope. These range from the uncertainty surrounding tariffs that have driven up the cost of construction in an already high-cost environment, a financial market with high interest rates increasing the borrowing costs of debt, and a revision to private activity bonds on 4% low-income housing tax credit projects which has unintendedly lowered tax credit equity pricing. Per HASCO, all these changes have resulted in a project that was not financially feasible. Additionally, HASCO did not receive funding originally applied for, creating a budget shortfall. HASCO evaluated the project to address the financial feasibility factors which resulted with an updated design of the buildings and populations served.
Original Scope of Work The original scope of work outlined in the application included the demolition of two properties consisting of 57 units, formerly known as Timberglen and Pinewood situated on two parcels located on 200th St., in Lynnwood, WA. After demolition, the redevelopment plan was to construct two residential multi-family buildings, combining the two properties into one modern complex, featuring 100 newly constructed units of affordable housing contained within 4 garden style walk-up buildings, community gathering spaces, ample onsite parking, and open spaces for residents. The previous 57 existing units would be replaced with 100 new units of affordable housing, with 12 studios, 25 one bedroom and 25 three-bedroom units. All the units were expected to serve 50% AMI levels of affordability. Total Development Cost was estimated at $52,972,982.
Proposed Change of Scope In order to work with the current economic climate HASCO would like to divide the original 100-unit project into two separate projects that will be financed separately, and result in additional affordable units for the community. The overall development will have 119 units and be an intergenerational community with one building housing seniors aged 60 and older, and the other building will house individuals and families. Each building will be on separate tax parcels and developed in a manner that each property can operate independent of each other.
HASCO is requesting that the original $2,180,000 that was awarded to the project be applied to the senior housing development. The senior building will consist of 60 units comprised of 54 one-bedroom units, and 6 two bedroom units, in an elevator operated four story building, 50 percent of the units will serve households earning at or below 30% AMI, 25 percent of the units will serve households earning at or below 40% AMI, and the remaining 25 percent of the units will serve households earning at or below 60% AMI. The project will have several gathering spaces both interior and exterior for residents to socialize, and the revised design for each unit includes adaptability to follow for best practices for aging in place. Total Development Cost is estimated at $33,824,798.
Motion 24-425 requires Council approval by motion for changes to the scope of work for capital projects as follows:
There is a decrease of more than 25% in the proposed number of intended beneficiaries of the project;
There is a change in the characteristics of the intended beneficiaries of the project to include:
• Income level(s), or
• Target population (e.g., seniors, veterans, people with disabilities, etc.).
• There is a change in the location of the project to include a change:
• From one city or town to another city or town;
• From a city or town to unincorporated Snohomish County;
• From unincorporated Snohomish County to a city or town; or
• From a project site not yet identified to an identified project site.
This proposed Change of Scope includes changes that decrease by more than 25% in the proposed number of intended beneficiaries of the project; a change in income level(s) and changes the target populations. which requires approval by Council by motion.
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DEPARTMENT FISCAL IMPACT NOTES: no fiscal impact
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Reviewed/approved by Finance (Nathan Kennedy 12/9/25)