Tag: LIHI

City Council, homelessness, housing, human services, King County

The City’s Progress Report on Homelessness Is Also a Reality Check

By Erica C. Barnett

On Wednesday afternoon, the city council’s homelessness committee will get a long-awaited update from the city’s homelessness division about what the division, and the homeless service providers the city funds, have done over the past seven months to move people into shelter and housing—including a report on the two hotel-based shelters the city belatedly funded as part of its pandemic response earlier this year.

Both hotels—the 58-room King’s Inn, operated by the Chief Seattle Club, and the 139-room Executive Pacific, run by the Low-Income Housing Institute—are nearing the halfway mark on their 10-month leases. Yet neither has made much visible progress toward a key goal of their contracts: Moving people quickly from unsheltered homelessness and into permanent housing, using short-term rapid rehousing subsidies to help fund apartments on the private market.

While both rapid rehousing programs have enrolled a similar percentage of clients into rapid rehousing programs, few people have actually identified housing, much less moved out of the hotels and into apartments.

After resisting calls to open hotels to shelter people living outdoors during the COVID pandemic, Mayor Jenny Durkan’s office announced it was signing short-term leases on the two hotels in February. The plan, announced by then-deputy mayor Casey Sixkiller (who quit to run for mayor) and City Councilmember Andrew Lewis last October, was to take people directly off the streets, stabilize them and assess their needs, and move most of them quickly into apartments using rapid rehousing subsidies administered through separate contracts with the Chief Seattle Club and Catholic Community Services, respectively. By cycling most clients quickly through the hotels and into private-market apartments, proponents said, the hotels could serve hundreds of people.

The reality, however, hasn’t lived up to the initial promise. While both Chief Seattle Club and Catholic Community Services have signed up a similar percentage of clients for their rapid rehousing programs, few people have actually found housing, much less moved out of the hotels and into apartments. (Although the online presentation says the Chief Seattle Club has enrolled no households in its rapid rehousing program, its executive director, Derrick Belgarde, says the current number is 38). At the Executive Pacific, 17 people have moved into apartments with rapid rehousing subsidies—seven more than the total three weeks ago. At King’s Inn, not a single person has moved out using a rapid rehousing voucher. Several people have exited both programs into other types of housing—moving in with relatives, for example—and some simply left the hotels and didn’t return.

Belgarde points out that most of the people living at King’s Inn have multiple challenges that will make it difficult or impossible to ever pay market rent. Nearly 90 percent have mental health conditions or substance use disorders; 65 percent are chronically homeless, and 29 percent are elderly. “It’s going to be hard to find them a place they can afford with little to no income,” Belgarde said. “With their underlying conditions, they’re going to need permanent supportive housing.”

One option, Belgarde said, would be moving some of the people currently at King’s Inn into ?ál?al, a Club-owned 80-unit studio apartment building that’s opening in Pioneer Square in October. Some of those living at King’s Inn could use rapid rehousing vouchers to live at ?ál?al, for a year, Belgarde said, and then, if they couldn’t afford market-rate housing, they could apply to move into Sacred Medicine House, a 125-unit permanent supportive housing development in Lake City that’s supposed to open in October 2022. Both buildings, which are designed to cater specifically to Indigenous people experiencing homelessness, are subject to fair housing law, so ensuring that their residents are by and large Native is a matter of getting people’s applications in quickly.

Belgarde points out that most of the people living at King’s Inn have multiple challenges that will make it difficult or impossible to ever pay market rent. Nearly 90 percent have mental health conditions or substance use disorders; 65 percent are chronically homeless, and 29 percent are elderly.

City Councilmember Andrew Lewis, who chairs the homelessness committee, said he initially hoped that the hotels would enable the city to “rapidly house hundreds of people … but that does not seem to be where we are at right now.” Instead, he said, the hotels have turned into a “bottleneck” while the subsidies go unused.

One option, Lewis said, might be to “open up” access to the subsidies to other providers, such as the Public Defender Association and its JustCare program, whose clients might be a better fit for rapid rehousing. Rapid rehousing programs typically best for people who can return to full employment before the subsidy ends—people facing temporary setbacks, not permanent disability. Continue reading “The City’s Progress Report on Homelessness Is Also a Reality Check” →

Affordability, homelessness, housing, Mayor Durkan

City’s Hotel Shelters Face Predictable Challenge: Where Will All the Residents Go?
Mayor Jenny Durkan

By Erica C. Barnett

The homeless service agencies running Seattle’s two hotel-based shelters are running into a predictable problem: Now that the hotels are full, few of their residents are moving out.

The reason, the shelter providers say, is simple: Most of the people currently staying at Kings Inn, run by the Chief Seattle Club, and many of those living at the Executive Pacific Hotel, operated by the Low-Income Housing Institute, have complex challenges, including chronic homelessness and disabling medical conditions, that make them poor candidates for the rapid rehousing program the city said would be hotel residents’ path to self-sufficiency.

Last October, when the city announced plans to open three hotel-based shelters using federal COVID relief funds, city officials said the providers that ran the hotels would move residents into housing quickly using rapid rehousing subsidies—short-term rental assistance that dwindles over time as people gain income and can afford to pay full rent in private, market-rate apartments. When Mayor Jenny Durkan announced the plan to open around 300 hotel rooms as temporary shelter by December of last year, the city estimated that about 231 hotel residents would receive rapid rehousing subsidies through the federally funded program.

“I would say that the majority are not candidates for rapid rehousing,” said LIHI director Sharon Lee. “They’ve been chronically homeless, they have significant drug use, significant disabilities, and their status is unlikely to change.”

Two of the promised hotels, totaling around 200 rooms, opened in March. So far, though, only a handful of people have “exited” the hotels into rapid rehousing through the programs the city funded for this purpose, and the people moving into the hotels, most of them from “priority” encampments that are scheduled for sweeps, need intensive, long-term services, not just a subsidy.

“I would say that the majority are not candidates for rapid rehousing,” said LIHI director Sharon Lee. “They’ve been chronically homeless, they have significant drug use, significant disabilities, and their status is unlikely to change.” (A person is chronically homeless if they have a disabling condition and have been homeless more than a year.) “When you have people who have co-morbidities and are high-acuity, it’s very challenging” to use rapid rehousing, Lee said.

Anne Xuan Clark, a development consultant for the Chief Seattle Club, added, “Most of our residents have mental health and substance abuse issues, and are better suited to PSH [permanent supportive housing],” where residents receive long-term services and are not expected to pay full rent.’

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As we reported in January, the people who tend to do best in rapid rehousing are those who are working or who can find work, those who have been homeless only a short time, and those who don’t face significant barriers to employment and housing.

Instead of seeking out people with those characteristics, the Human Services Department has reserved rooms in the hotels—particularly the Executive Pacific—for people living in encampments the city decides to sweep. The result of this somewhat random process is that, according to Lee, “we’ve only moved two or three people into rapid rehousing.”

The city believes these numbers are turning around. At a press conference about new federal investments in housing and homelessness Tuesday afternoon, Mayor Durkan touted new numbers showing that between the two hotels, about 50 people had “enrolled in a rapid rehousing program.” But all that means, according to Catholic Community Services deputy director Dan Wise, is “that they have met with our team and have said that they believe rapid rehousing is a good path forward for them.”

The city’s hotel strategy was explicitly based on the premise that a couple hundred rooms would be able to serve far more individual people, as many residents moved quickly on from the hotels and into market-rate units using rapid rehousing subsidies

Wise said CCS is nimble enough to “pivot” when it turns out someone who initially wanted one service turns out to be a better fit for another program, as the agency does frequently in its long-term rapid rehousing program for veterans.

“What we know is that if we engage a veteran and [a certain] service isn’t the right match for them along the way, then talk to the VA about another opportunity, like a long-term voucher or supportive services,” Wise said. “So I think what we’re learning from the hotel is to allow the participants in the hotel to lead their own process listen to them and what they want out of housing and then work with the city to support that.”

Asked whether the mix of people currently at the city’s two hotel-based shelters has made the city’s plans to cycle people through quickly using rapid rehousing, Durkan said, “It’s impossible to classify any category of people as a monolith. Are they eligible for rapid rehousing? Are they not? It really is going to depend on the individuals. … The first thing you have to do us bring people inside and get them stabilized in an enhanced environment, and then you will see what paths are available.”

The problem is that the city’s hotel strategy was explicitly based on the premise that a couple hundred rooms would be able to serve far more individual people, as many residents moved quickly on from the hotels and into market-rate units using rapid rehousing subsidies. If the truth is that most of the people living at Kings Inn and the Executive Pacific need permanent supportive housing, a much more expensive and scarce solution, it means that the city’s current practice of using hotels as receiving sites for encampment sweeps is running smack into the city’s promise of turning hotels into short-term lodging for people who just need a little financial boost. Continue reading “City’s Hotel Shelters Face Predictable Challenge: Where Will All the Residents Go?” →

City Council, Health, homelessness, Mayor Durkan

Mayor’s Office Says Hotel Shelter “Service Costs Are NOT Eligible” for FEMA Funding; Shelter Providers, and FEMA Guidelines, Disagree

By Erica C. Barnett

On Tuesday, the Seattle City Council continued to seek clarity on why Mayor Jenny Durkan’s office has not sought to fund hotel-based shelters with funding from the Federal Emergency Management Agency, which recently announced it will reimburse the cost of such shelters, with exceptions for non-shelter services such as case management, at 100 percent. (Previously, FEMA reimbursed for 75 percent of eligible costs, but President Biden increased that amount to 100 percent and made it retroactive to January 2020).

As PubliCola has reported, the City Budget Office, which answers to the mayor, sent a memo to the council late last month outlining a series of objections to funding hotel shelters using FEMA money. Most of the objections related to administrative headaches and hurdles associated with applying for funds. However, the memo also claimed that FEMA “is not paying for any services,” and that such “services” at shelters typically cost between $18,000 and $25,000 a year.

Deputy mayor Tiffany Washington reiterated this point in an email to members of the city’s volunteer commissions this week that explicitly said PubliCola’s reporting was “inaccurate and misleading.” (We stand by our reporting.) “While facility costs (the actual hotel rooms) and operations costs (like security, cleaning, and meals) are eligible, service costs are NOT eligible,” Washington wrote (emphasis hers), and reiterated the $18,000 to $25,000 figure.

Reimbursable items, according to FEMA’s guidelines, include “shelter management,” “health and safety,” “medical staff” “personal assistance service staff,” and other “support services” needed to operate a shelter. 

In fact, FEMA’s own guidelines for non-congregate shelter options during COVID lay out exactly which “shelter services” the agency covers, and they are not limited to “the actual hotel rooms” and operations costs associated with running a bare-bones hotel. (As a city council staffer put it Tuesday, “just leaving them there without any interactions and just dropping a meal off now and then” does not constitute a shelter).

Accordingly, reimbursable items, according to FEMA’s list, include “shelter management,” “health and safety,” “medical staff” “personal assistance service staff,” and other “support services” needed to operate a shelter.

Low-Income Housing Institute director Sharon Lee tells PubliCola this shouldn’t be news to the city; FEMA has already paid for multiple tiny house villages and one enhanced shelter facility that LIHI opened in response to the pandemic, “and there were only a small number of items that they didn’t cover.” (This was during the period when FEMA only reimbursed 75 percent of costs.) Among the items FEMA covered, Lee said, were “office supplies, education expenses, client assistance… all operating costs, and the rest of the staff” who were not engaged in direct case management.

Case managers and behavioral health counselors also make up only a small minority of the staff that will be working at one of the hotel-based shelters that city plans to open using Emergency Solutions Grant (that is, non-FEMA) funding later this month.

According to Chief Seattle Club operations director Virgil Wade, the shelter CSC will operate at King’s Inn in Belltown will have between 10 and 13 staff, including three case managers, to “monitor and assist the clients” living in “about 60 rooms” at the 66-room facility. Consistent with LIHI’s experience operating shelters for people vulnerable to COVID infection, the majority of staff fall under the categories the FEMA guidelines define as reimbursable, assuming all other conditions are met.

According to Low-Income Housing Institute director Sharon Lee, FEMA has already paid for multiple tiny house villages and one enhanced shelter facility that LIHI opened in response to the pandemic, “and there were only a small number of items that they didn’t cover.”

Like other service providers we’ve spoken to, LIHI’s Lee said it’s unclear to her why the city hasn’t gone after more FEMA funding for these services at other kinds of shelter, such as hotels. “We’ve been urging the city and other jurisdictions to make better use of FEMA, but we do know that there’s some hesitancy,” Lee said.

Asked about FEMA”s list of reimbursable services, Durkan chief of staff Stephanie Formas responded by reiterating that the city is seeking reimbursement for “eligible items like meals and security” at other shelters, but not “behavioral health, case management, and mental health.” This does not, unfortunately, answer the question about FEMA’s list of reimbursable services that are not on this concise but ill-defined list.

Formas added that the mayor’s office doubts that every single client being sheltered by the Public Defender Association’s JustCARE program—in the news lately because its funding from King County runs out in less than two weeks—would be considered vulnerable to COVID under FEMA’s standards for reimbursement. That’s a matter of debate on which the mayor’s office and service providers have taken different sides, with the mayor’s office using it as one of many reasons not to try for federal funds and service providers urging them to do so. Continue reading “Mayor’s Office Says Hotel Shelter “Service Costs Are NOT Eligible” for FEMA Funding; Shelter Providers, and FEMA Guidelines, Disagree” →

Addiction, City Council, homelessness, housing, human services, Mayor Durkan, Mental Health, Poverty

City Makes It Official: Chief Seattle Club, LIHI Will Run Scaled-Back Hotel Shelter Program

By Erica C. Barnett

This afternoon, the city of Seattle officially announced the details of a plan, announced last October, to use $26 million in federal Emergency Solutions Grant dollars to place unsheltered people in hotels for up to 10 months. The two hotels, as PubliCola has previously reported, are King’s Inn in Belltown and the Executive Pacific Hotel, and will be operated by the Chief Seattle Club and the Low-Income Housing Institute, respectively. The hotels are expected to start accepting clients sometime in March, more than a year after the city declared a COVID emergency. Originally

King’s Inn has 66 guest rooms; the Executive Pacific has 155. Some of those will be used for on-site case management and other purposes, so the total number of new hotel rooms will be around 200 (about 60 at King’s Inn and about 140 at the Executive Pacific), rather than the 300 the city announced last year.

According to the Seattle Human Services Department, the two hotels, combined, are supposed to move 230 people into permanent housing through rapid rehousing subsidies administered by the Chief Seattle Club and Catholic Community Services, which will serve as LIHI’s rapid rehousing provider. That number is the same as the number announced last October, when the mayor’s office first proposed the plan.

“If you really take a step back, this is actually a rapid rehousing program that has hoteling as a [component],” said Seattle City Councilmember Andrew Lewis, who heads the council’s homelessness committee and supports the hotel shelter program. “So we’re going to get a lot of value out of that 10 months.”

As we’ve reported, rapid rehousing is controversial because it rests on the assumption that unsheltered people can move quickly and seamlessly from street homelessness to paying full rent in market-rate apartments within a few months. Such programs work best for people who are fairly self-sufficient and do not have complicated physical or behavioral health needs, such as addiction or mental illness. 

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We know there are a lot of publications competing for your dollars and attention, but PubliCola truly is different. We cover Seattle and King County on a budget that is funded entirely by reader contributions—no ads, no paywalls, ever.

Being fully independent means that we cover the stories we consider most interesting and newsworthy, based on our own news judgment and feedback from readers about what matters to them, not what advertisers or corporate funders want us to write about. It also means that we need your support. So if you get something out of this site, consider giving something back by kicking in a few dollars a month, or making a one-time contribution, to help us keep doing this work. If you prefer to Venmo or write a check, our Support page includes information about those options. Thank you for your ongoing readership and support.

The mayor’s office also (re-)announced that LIHI will open up to 40 new tiny house units on Sound Transit-owned property in the University District and up to 40 at an unspecified location in North Seattle, and that WHEEL’s existing nighttime shelter, which serves about 60 women, will become a 24/7 enhanced shelter. In all, the “shelter surge” will add about 200 new temporary shelter beds and 140 permanent ones (including WHEEL’s, which opened earlier this month), rather than the 300 temporary and 125 permanent shelter beds the mayor’s office announced last year. The city council added funding for the University District tiny house village to the mayor’s proposed budget last year.

Both hotels will cost significantly more per client than the original cap of just over $17,000, although just how much more is unclear. LIHI director Sharon Lee said her agency is still negotiating with the city over the final budget. “One of the things we were concerned about was laundry and trash service, and the city said they would pay for that,” Lee said. “Our budget is getting smaller and [the city’s] is getting bigger.”

A representative from the Chief Seattle Club did not immediately return a call for comment.

The Public Defender Association, whose JustCARE program has moved about 124 people with complex behavioral health issues off the streets in Pioneer Square and the Chinatown-International District neighborhoods, was tentatively selected to operate the Executive Pacific, but HSD and the mayor’s office rejected their bid when it turned out to be much more expensive, at about $28,000 per client, than the $17,000 cap.

The PDA proposed a scattered-site hotel program that would distribute clients to different hotels with which the group has contracts, but told the city that if they were going to use the Executive Pacific, they would limit the number of clients there to 60, on the grounds that a larger group would lead to more high-needs clients on downtown streets. Continue reading “City Makes It Official: Chief Seattle Club, LIHI Will Run Scaled-Back Hotel Shelter Program” →

Health, homelessness, human services, neighborhoods, Uncategorized

Battle Over RVs in South Seattle Illustrates Need for Safe Spaces
L-R: The Gateway Park North site, the Georgetown Tiny House Village, and the future dog park site at the Georgetown Flume

by Erica C. Barnett

This is a story about a new park for people, a proposed park for dogs, and how confusion among at least four city departments has left more than a dozen people living in RVs and trailers in a state of limbo, living on disputed territory amid neighbors—including a permitted tiny house village—who want them gone.

It’s also, inevitably, a story about homelessness: A reminder, in a city where people without permanent places to live are routinely swept from place to place, that even the urgency of a global pandemic has not produced lasting solutions to a problem that is currently more visible than it has ever been. Because while the city’s policy of removing people from public spaces based largely on neighborhood complaints has subsided in the past year, that short-term reprieve hasn’t been coupled with enough new shelter or housing to get more than a few hundred of Seattle’s growing homeless population indoors on even a temporary basis.”

“We’ve been working very hard to try to transform that area into an off-leash dog park, and things can’t move forward on that when we have RVs on that plot of land.” Greg Ramirez, board chair, Georgetown Community Council

The story begins, as a lot of stories about homelessness seem to, in the Georgetown neighborhood, where the Seattle Parks Department is just starting construction on a new park facing the Duwamish River across from Boeing Field. The Gateway Park North project will improve and provide better access to a tiny piece of riverfront land that’s partly occupied by the out-of-commission Georgetown Pumping Station.

Since March, the city tacitly allowed people living in RVs, cars, and trailers to occupy the site, which is owned by the Seattle Parks Department. In early December, however, the department put  up signs announcing it was about to start work on the new park and warning RV residents that they needed to be gone by the following week. REACH, the nonprofit that had been doing outreach to the vehicle residents for the last eight months, worked quickly to figure out where the residents wanted to go and how to get them there; since many of the RVs had been sitting in place for longer than usual, 11 of them no longer ran.

“We talked about who needed to move and asked them, ‘Where do you guys want to go?’,” said Dawn Whitson, a REACH case manager who works in Georgetown. “They had already identified the site—the Georgetown Flume.”

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If you’re reading this, we know you’re someone who appreciates deeply sourced breaking news, features, and analysis—along with guest columns from local opinion leaders, ongoing coverage of the kind of stories that get short shrift in mainstream media, and informed, incisive opinion writing about issues that matter. Earlier this month, we took a look back at just some of the work we’ve been able to do thanks to generous contributions from our readers, but those pieces represent just a handful of the hundreds of stories we’ve published this year.

We know there are a lot of publications competing for your dollars and attention, but PubliCola truly is different. We cover Seattle and King County on a budget that is funded entirely and exclusively by reader contributions—no ads, no paywalls, ever.

Being fully independent means that we cover the stories we consider most interesting and newsworthy, based on our own news judgment and feedback from readers about what matters to them, not what advertisers or corporate funders want us to write about. It also means that we need your support. So if you get something out of this site, consider giving something back by kicking in a few dollars a month, or making a one-time contribution, to help us keep doing this work. If you prefer to Venmo or write a check, our Support page includes information about those options. Thank you for your ongoing readership and support.

The Georgetown Flume—so named because it was the site of a flume that transported water from the Duwamish to the Georgetown Steam Plant, which closed in 1975—is another disused property a few blocks north of the pumping station site. Seattle City Light owns the land, but plans to give it to the Parks Department in exchange for a street vacation (the permanent closure of a public street) on property it owns in SoDo. Street vacations require some kind of public benefit; hence the trade to Parks. The plan is for the property to become a dog park for the surrounding neighborhood.

“We’ve been working very hard to try to transform that area into an off-leash dog park, and things can’t move forward on that when we have RVs on that plot of land,” Greg Ramirez, the board chair for the Georgetown Community Council, said. “We want to assist these individuals to find a better location, but this is not it. The flume is not that spot. Gateway Park North is not that spot.”

“If the city is going to pay for [RVs] to be towed to the impound yard, why won’t they pay for people to have places to go?”—Dawn Whitson, REACH

Georgetown is already the site of one longstanding tiny house village run by the Low Income Housing Institute, which the community council and other local groups initially opposed but which, according to Georgetown Tiny House Village Community Advisory Council chair Barbara Grace Hill, has since become “a big part of the neighborhood.” (According to LIHI director Sharon Lee, “we are on record supporting the dog park.”)

The issue, Georgetown residents say is that nobody at the city asked them what they thought of the idea. This, they say, is part of a pattern that has included not just the tiny house village but the proposed relocation of an overnight sobering center into a historic building in the neighborhood core—a proposal that would have put the sobering center far away from other city services. “It’s been a pattern with the city,” Hill said. After a neighborhood lawsuit helped sink the sobering center proposal, “it was like, again, ‘Would you please communicate with us? Would you please let us know what’s going on?'” Continue reading “Battle Over RVs in South Seattle Illustrates Need for Safe Spaces” →

Affordability, housing, Sightline

Nonprofit Housing Providers Struggle to Pay Bills In COVID Crisis

This is an excerpt from a piece that originally appeared at Sightline.org, where you can read the entire story.

It’s the first of May. As another rent day arrives, tenants aren’t the only ones seeking relief from the financial fallout of COVID-19, which has led to widespread job loss in nearly every economic sector, and the highest unemployment rate since the Great Depression.

Cascadian affordable housing providers that receive funding through the federal Low Income Housing Tax Credit (LIHTC) program, which helps to fund about 90 percent of all new affordable housing in the US, have also been hit hard by the crisis. Nonprofit providers of subsidized housing for low- and moderate-income wage earners report unpaid rent rates of 20 percent or more, a shortfall that has left many struggling to balance their books.

“Our delinquency rate shot way up, and we are now accepting partial payment for rent and doing some payment plans,” said Sharon Lee, the director of the Low Income Housing Institute, which serves communities throughout the Seattle metro area and in Olympia, Washington. “We’re working with tenants and doing partial payment plans for people who’ve recently become unemployed.”

In Oregon, about half the tenants in buildings owned by REACH Community Development earn income from wages. Anthony Petchel, REACH’s philanthropy and public relations director, says about 10 percent of their tenants had asked for rent forbearance as of late April, but he expected that number to go up as people continue to weather the economic collapse. “[The issue] is having the cash to manage the cash flow disruption” from missed rents, and “how long can all the organizations manage that,” Petchel says.

Daniel Delfino, the program and planning development director for the Alaska Housing Finance Corporation, said that once the 60-day rent and mortgage freeze ordered by Gov. Mike Dunleavy ends, there are few protections for struggling tenants or for nonprofit housing owners with mortgages to pay.

Currently, nonprofit landlords are working out arrangements with tenants on a “case by case basis,” he said, but with more than 40,000 Alaskans unemployed, it’s unclear when or whether rent payments will get back to normal. “There are usually reserves that are put in place to handle four to six months of operating expenses and debt payments. Those aren’t set up to handle something like COVID-19, when the economic occupancy”—the percentage of people who pay their rent—”goes down from 93 percent to 40 percent.”

Enterprise Community Partners, a national low-income housing advocacy and funding group, estimates that a 10 percent income loss among renters could add up to $238 million per month in losses to groups like these that run LIHTC-funded buildings across the US. That’s based on an average loss of $792 in monthly rent from the three million tenants in LIHTC buildings that Enterprise estimates could miss rent payments if they don’t get assistance.

Susan Boyd, the executive director of Seattle nonprofit provider Bellwether Housing, said wage earners had a delinquency rate of about 21 percent as of mid-April, up from 2 to 3 percent in a typical month, as “about 30 percent of the people who were wage earners have lost all or a part of their income.” Likewise, Chris Persons, the director of Seattle’s Capitol Hill Housing, said April rents are falling about 22 percent short.

It’s easy to see why. With a patchy social safety net, hourly wage earners were already on the precipice of financial disaster before a nationwide economic shutdown led to mass unemployment.

A full-time worker making minimum wage in Oregon earns just over $23,000 a year; in Washington, that number is just over $28,000. According to the Urban Institute, the median income for US renters in low-income tax credit buildings was $17,470 before COVID, and about four in ten of these renters spent more than 30 percent of their income on housing.

In King County, which includes Seattle, about 77,000 people making less than $40,000 a year had lost their jobs as of April 16; in Multnomah County, which includes Portland, about 38,000 low-income jobs had vanished. The pandemic puts the US housing crisis on steroids. Low-income renters often live paycheck to paycheck, and if they lose their jobs they simply can’t pay rent. The eviction moratoriums enacted in many jurisdictions throughout the US only grant a reprieve.

Even organizations whose revenues don’t rely primarily on renter incomes—groups like Plymouth Housing and the Downtown Emergency Service Center in Seattle, whose tenants pay their rents using federal vouchers and stable income sources like Social Security Insurance (SSI)—are struggling.

“We rely a lot on local dollars, most of which come from specific local taxes and fees like the [state] document recording fee for housing and homelessness, and of course those could go down if real estate transactions slow down, which seems likely,” DESC director Daniel Malone said. “And as local government taxation goes down, there certainly could be some squeeze on what they choose to fund and what they choose to cut.”

On April 21, Seattle’s City Budget Office released a worst-case revenue forecast that predicts a 2020 funding shortfall of up to $300 million, with some of the biggest revenue losses coming from the construction, retail, and food service sectors. In Portland, a smaller city, the shortfall could be as much as $100 million.

Read the entire story here.