Learn about issues and legislation Impacting affordable housing.
The initiatives below are priorities for HDC that we are currently working on or have recently worked on.
Federal Priorities
Housing Trust Fund
Incentive Zoning
King County Housing Opportunity Fund
Insurance
Seattle Housing Levy
New Local Source to Fund Housing
Federal Priorities
Federally funded housing programs are a critical source of stability for many people in King County. HDC works through the Washington Low Income Housing Alliance on federal issues. HDC's Seattle Outreach Director, Anna Markee, is WLIHA's federal co-chair. HDC makes one lobbying trip to Washington D.C. each year. Click here to read about HDC's federal priorities.
Housing Trust Fund
The need for affordable housing and the cost to create new housing units far outpace the subsidy available. The state's premiere mechanism for responding to the housing crisis is the Housing Trust Fund (HTF), which funds the creation of housing by nonprofits and housing authorities serving the homeless, the working poor and low income homebuyers.The Housing Trust Fund has financed over 700 affordable housing projects statewide,
In recent years the HTF has seen modest funding increases (up to $130 million in 2007), however current estimates of both housing need and rising costs show that investment to be seriously inadequate. HDC and the Washington Low Income Housing Alliance worked hard to ensure that the state's 2007-2009 budget includes a significant new investment in the HTF, and that legislators work towards a long-term funding plan to meet the state's affordable housing need.
Housing Trust
Fund Fact Sheet (PDF)
Housing Trust Fund Projects
in King County Map (PDF)
How the Housing Trust Fund Works
(PDF)
Incentive Zoning
HDC Incentive Zoning Principles (PDF)
King County Housing Opportunity Fund
This program helps fund housing for extremely low income individuals and families who are coming from homelessness or are disabled. Since its inception 2,800 units have been financed in 114 projects. The King County Council appropriated about $3 million per year for the fund from 1996 through 2002. In 2003 the council needed money to alleviate the funding crisis for human services and provided no funding. In 2004, $1 million was restored. Funding is again under consideration in the 2005 budget process. This program is critical; it provides the necessary "local match" for projects seeking state and other funding.
Housing Opportunity Fund Fact Sheet (PDF)
Support for the Housing Opportunity Fund (PDF)
In 2003 many HDC nonprofits were surprised with sudden cancelations or huge premium increases in their property insurance, even though they had never filed claims. Since HDC member's rental properties serve low income persons, most of the properties have rent restrictions on them and therefore the rents cannot be raised to accommodate skyrocketing insurance costs. HDC formed an affinity group to explore ways to stabilize insurance costs. We hired an insurance consultant to give advice on feasible alternative forms of insurance. HDC testified at a House legislative committee detailing the crisis in insurance for nonprofits. In 2004 the legislature passed legislation authorizing nonprofit self-insurance pools and allocated $1 million to help capitalize a pool for nonprofit low income housing. HDC also worked with the Master Builders Association to gain state legislative changes aimed at bringing insurance for condominium builders back into availability. In 2004 and in 2005 the legislature passed bills intended to help reduce the risk for insurers of condominium projects.
Insurance Testimony (PDF)
Condo Legislation Passed
(PDF)
Nonprofit Insurance Pool Legislation Passed (PDF)
2002 Seattle Housing Levy
Seattle Housing
Levy Fact Sheet (PDF)
Learn more: Seattle Office of Housing
New Local Source to Fund Housing
In 2002, the Washington State Legislature authorized a $10 document recording
fee to be used for low-income housing. This created a much needed dedicated
revenue source at the state and local levels for the development and operation
of low-income housing. County auditors who collect the fee keep five percent
for administration. Forty percent of the balance goes to an operating
and maintenance fund administered by the Washington State Community Trade
and Economic Development to assist housing for extremely low-income families
and individuals. The remaining 60 percent is retained by the individual
counties for use in affordable housing projects for households earning
below 50 percent of median
income.
Hot Topics
HDC members participated in a housing roundtable convened by U.S. Senator Patty Murray for a crowd of over 50 affordable housing advocates, developers and low-income residents at Tacoma’s Family Investment Center. Senator Murray sits on the Appropriations Committee charged with drafting the new HUD budget. The roundtable in July was designed to bring the affordable housing community together to discuss the impacts of federal housing policies on Washington State communities, most notably cuts to the Section 8 voucher program. HDC was one of several agencies asked by Senator Murray’s office to help coordinate this event, and was able to give input in framing the topics for discussion by panel members.
At the time of the roundtable, many housing authorities were wondering how to avoid immediate cancellation of support for families who are currently receiving voucher funding to help with their rent. In fact, the day before the roundtable, an article in the Tacoma News Tribune proclaimed, “A proposal before the Tacoma City Council to loan the Tacoma Housing Authority $250,000 looks like the only way to avert a disaster.” Subsequent to the roundtable, housing authorities who formally appealed the cuts were given emergency funds to stem the immediate crisis, but cuts are still projected for the next several years.
The panel of speakers included HDC members Lynn Davison of Common Ground and Kim Herman of the Washington State Housing Finance Commission. Joining them on the panel were Peter Ansara, Tacoma Housing Authority; Renee Rooker, Walla Walla Housing Authority; and Norm McLoughlin, Kitsap County Housing Authority.
Kim Herman painted a serious picture of the impact of the cuts. Section 8 brings $250 million a year in housing funds to the State of Washington. Cuts made this year alone may affect up to 1,755 families in the state and up to 20,000 units of affordable housing could be lost statewide over the next four years if the proposed policies are allowed to stand. Furthermore, investors in the low income tax credit program, a critical source of affordable housing funds, view the current instability of federal policies as a red flag. This type of negative feedback cycle could have deep funding implications for housing poor and vulnerable populations around the state if investors start pulling out their contributions.
Lynn Davison furthered the discussion by highlighting cutback effects on the innovative approach adopted this year to create a statewide version of the Sound Families pilot program, which brought support services together with low-income housing for formerly homeless families in three counties. The state budget provided $2 million for services to leverage additional private funding. The catch – it was based around a guarantee of project-based Section 8 vouchers to make the program feasible. Without Section 8, this model falls apart, despite its proven effectiveness in moving families out of homelessness and into a stable housing situation. Furthermore, Davison pointed out that, “At the same time, changes are being made to the U.S. Department of Health and Human Services, the source of many of the services used by those with Section 8 vouchers. New policies are limiting who can access support services and which services are available.”
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