Issaquah committee backs $1.5M loan to KCHA Trailhead project, $383K grant to LEO condos

The Services, Safety and Parks Committee recommended that the City Council place on the Feb. 23 consent agenda a $1.5 million IHIP deferred loan to the King County Housing Authority for the Trailhead Apartments and a $383,000 secured grant to Life Enrichment Opportunities (LEO) for seven condominium bedrooms serving people with intellectual and developmental disabilities.

The recommendation, presented by Economic Development and Housing Manager Alexis Fitzsimmons and ARCH investments manager Patrick Tippie, said the KCHA project will include a city‑owned Opportunity Center on the ground floor and 156 units above (two designated for on‑site management) with units targeted to 40–60% of area median income. "This is a development that's been, under consideration for many years now, in partnership with the city," Tippie said, describing the site's proximity to the Central Issaquah transit center.

Why it matters: the IHIP program supports preservation and transit‑oriented affordable housing and serves households up to 60% AMI, prioritizing people with behavioral‑health disabilities, veterans, seniors, those at risk of homelessness, and people with intellectual or physical disabilities. The committee was told the $1.5 million award would be structured as a deferred loan with a 55‑year amortization and repayments beginning in year 16, and that the city would reserve contracting conditions requiring designation of the Opportunity Center tenant population before advancing funds.

Details and debate: ARCH recommended the LEO award be a secured grant because the LEO units are intended for households at about 30% AMI and cannot support debt service; staff said LEO had other funders including a state Department of Commerce award and that county funding declined because of eligibility constraints. Patrick Tippie explained the Park By Vintage application was not recommended this cycle because the developer faces litigation with the state attorney general and had not identified local service partners.

Council Member Kevin Nichols asked detailed questions about contingencies, parking and timing. On parking, staff said the 172‑stall count follows an existing development agreement and zoning requirements and that KCHA sought sufficient parking to maintain marketability and serve larger unit sizes.

Next steps: staff requested direction to place the awards on the Feb. 23 consent agenda and to authorize ARCH to administer contracts and compliance. Committee members expressed support and suggested staff provide the full supporting materials in the Council packet and offer assistance to Park By Vintage developers to help de‑risk reapplication.

Ending: The Committee gave direction to move the recommended IHIP awards forward to full Council for consideration on the consent agenda.