Sedro‑Woolley housing authority details aging stock, KCHA outlines RAD conversion and $2M+ capital needs

The Sedro‑Woolley Housing Authority and the King County Housing Authority told the City Council July 8 that two local public‑housing properties face urgent capital repairs and that converting to project‑based Section 8 through HUD’s Rental Assistance Demonstration (RAD) program is their preferred long‑term financing path.

Deborah Lancaster, chair of the Sedro‑Woolley Housing Authority, said the authority manages 80 subsidized units that house seniors, families and people with disabilities and that the local board has long partnered with KCHA to operate the sites. Penny Bradley, senior vice president for housing management at King County Housing Authority, led the presentation on KCHA’s management role and the condition of the buildings.

Bradley told council members that Hillsview, a 60‑unit building for seniors and people with disabilities, needs an extensive exterior “envelope” repair program, a full elevator replacement (estimated at about $600,000), an upgraded fire‑alarm system (about $400,000) and other siding and structural work (roughly $250,000), amounting to roughly $2.25 million in immediate capital needs at that site. Cedar Grove, the authority’s family‑unit portfolio (described in the presentation as three small family sites, about 20 units total), needs envelope work estimated at about $550,000, Bradley said.

Bradley said RAD conversion would replace public‑housing subsidies with project‑based Section 8 contracts tied to the units. “Converting public housing units to Section 8 provides a more stable subsidy source,” she said, adding that RAD also allows owners to take on loans to finance large capital projects — an option public housing rules prohibit. KCHA said residents’ rents would remain income‑based and generally tied to about 30% of adjusted household income.

KCHA discussed the conversion timeline and protections: the agency said the RAD process can take roughly 18 to 24 months, involves HUD approvals and resident protections, and will include ongoing resident engagement. Bradley said the KCHA board has approved moving forward with planning for a conversion and that agency staff are working through the technical steps.

Council members raised questions about where loan repayments would come from given the fixed incomes of many tenants, and about whether tenants could use mobility vouchers at private rentals. Bradley said a conversion creates contract rents that increase revenue to the property (while residents continue to pay an income‑based share), which can be used to service debt and fund capital projects; she also confirmed that tenant‑based housing‑choice vouchers exist separately and can be used in private housing where available.

KCHA provided multiple figures for demand: at one point staff said there are “about 500” applicants on the general waiting list; later in the discussion staff gave a breakdown—140 applicants for one site and 428 for family sites. The presentation noted wait times can range from three years to eight years, depending on turnover. Council members and staff emphasized the local need for more affordable units and asked about possible city funding. KCHA said its current capital allocation for Sedro‑Woolley is limited (Bradley referenced roughly $350,000 per year in capital funds for the authority), which often requires multi‑year planning for big projects.

The council did not take any formal action on the KCHA presentation itself but discussed funding eligibility and next steps for resident engagement and technical planning if Sedro‑Woolley pursues RAD conversion. KCHA staff encouraged council members and residents to consult the HUD RAD website for program details and offered to return with additional information.

What’s next: KCHA said it will continue planning and resident outreach; council members asked staff to track grant opportunities and other funding sources that could help address immediate needs such as the elevator and alarm replacement. The presentation underscored both the scale of needed capital work and the long timelines for federal regulatory steps.