The Mayor formed the HALA committee (Housing Affordability and Livability Agenda) to address the growing gap in affordable housing in Seattle, one of the fastest growing cities in the U.S. The HALA committee made 65 recommendations to try to address this gap, but we believe there are serious problems with some of their assumptions.
First, the City Council should define “affordability,” “workforce housing” and “livability,” since HALA did not. Workforce housing, in particular, must start at minimum wage and include strategies to house those in service-sector jobs ($11 to $18/hr. or 30% to 60% of Area Median Income/AMI). HALA-proposed tax breaks to developers who provide a small amount of their new housing to renters at 50% to 60% of AMI in exchange for an extra floor is one piece of the Grand Bargain, but does not address lower income individuals who make 0% to 50% of AMI.
We are short 40,000 units of very low-income housing--which explains the increase in homelessness.
Most of our new housing is built for people with high salaries in new high-tech jobs. And in building these new luxury apartments, townhomes, and rowhouses, many previously affordable apartments and single-family homes are being demolished or rehabbed up, resulting in displacement and gentrification throughout the City, and specifically in some of our more diverse neighborhoods.
The HALA lacked a specific plan for preserving these older multifamily buildings that are at risk. It recommended two funding sources: a preservation tax break for developers that was rejected by the Legislature, and a Growth Fund-restoring a former bond fund financed by growth in the City's income. So far, the Mayor has not lent his support to restoring the Growth Fund, despite its being a HALA proposal that he accepted in principle. Preserving older, unsubsidized buildings is key to maintaining a supply of moderately affordable apartments.
Meanwhile, rents in older housing continue to rise to “meet the market.” And according to All Home (http://allhomekc.org/), for every $100 increase in rent, there is a 15% rise in homelessness.
To truly ensure affordable housing for all, the City should consider:
For specific details on affordable housing as it relates to Area Median Income, see the following.
First, the City Council should define “affordability,” “workforce housing” and “livability,” since HALA did not. Workforce housing, in particular, must start at minimum wage and include strategies to house those in service-sector jobs ($11 to $18/hr. or 30% to 60% of Area Median Income/AMI). HALA-proposed tax breaks to developers who provide a small amount of their new housing to renters at 50% to 60% of AMI in exchange for an extra floor is one piece of the Grand Bargain, but does not address lower income individuals who make 0% to 50% of AMI.
We are short 40,000 units of very low-income housing--which explains the increase in homelessness.
Most of our new housing is built for people with high salaries in new high-tech jobs. And in building these new luxury apartments, townhomes, and rowhouses, many previously affordable apartments and single-family homes are being demolished or rehabbed up, resulting in displacement and gentrification throughout the City, and specifically in some of our more diverse neighborhoods.
The HALA lacked a specific plan for preserving these older multifamily buildings that are at risk. It recommended two funding sources: a preservation tax break for developers that was rejected by the Legislature, and a Growth Fund-restoring a former bond fund financed by growth in the City's income. So far, the Mayor has not lent his support to restoring the Growth Fund, despite its being a HALA proposal that he accepted in principle. Preserving older, unsubsidized buildings is key to maintaining a supply of moderately affordable apartments.
Meanwhile, rents in older housing continue to rise to “meet the market.” And according to All Home (http://allhomekc.org/), for every $100 increase in rent, there is a 15% rise in homelessness.
To truly ensure affordable housing for all, the City should consider:
- Enabling homeowners to age in their homes by encouraging mother-in-law apartments.
- Supporting landlords of older, affordable apartments to maintain their units with low-cost loans in exchange of limits on rent increases.
- Requiring developers of new apartment complexes to set aside a reasonable proportion of their units for apartments at 50% to 60% of AMI, as opposed to paying a fee in lieu, which delays the creation of low-income housing by three to four years.
- Restoring the Growth Fund for preservation of moderately affordable older buildings.
For specific details on affordable housing as it relates to Area Median Income, see the following.
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