Category: housing

Hotel Crisis Overshadows Other Pressing Issues for Homelessness Authority, Including Upcoming Budget Vote

By Erica C. Barnett

After an emergency meeting last Friday, the King County Regional Homelessness Authority sent dozens of its downtown outreach workers, known as system advocates, to four hotels where the majority of people temporarily sheltered by the Lived Experience Coalition have been staying, to assess what their needs are and where they can go now that funding for the LEC hotels has run out.

As PubliCola has reported, the LEC—an advocacy group made up of homeless and formerly homeless people who also appoint members to the KCRHA’s implementation board—received federal grants to move people from the streets into hotels across King County through a partnership with the nonprofit Building Changes, but ended up spending far more money than they had. Money from a philanthropic group called We Are In paid for the rooms, which recently totaled over 200, through April 7.

The KCRHA’s CEO, Marc Dones, has distanced the authority from the hotel debacle, saying they only “recently became aware” of the situation. However, KCRHA’s own system advocates used the LEC program this year to shelter dozens of people as part of an effort to end unsheltered homelessness downtown, which is partly financed by We Are In.

People living in least 55 of the LEC-funded hotel rooms are participants in the state-funded Recovery Navigator program, which provides resources for people with addiction, including co-occurring mental health disorders; that program is now responsible for those residents.

The KCHRA is reportedly trying to place other hotel residents in shelter through the United Way, Salvation Army, and other nonprofit agencies.

“KCRHA, with the support of King County, the City of Seattle, and We Are In, has moved into an active emergency response to address the financially unstable LEC motel shelter program,” a KCRHA spokeswoman told PubliCola Monday.

The challenges are significant: Hotel residents include people with significant physical and mental impairments, including a number of amputees, along with people staying in the hotels anonymously because they are fleeing domestic violence. People who can’t be placed in another shelter or housing will be “exited” to the streets, including several dozen the LEC said were planning to “self-resolve” by leaving without shelter or services.
“At this time, we have verified that there are a significant number of families with young children, seniors, and medically fragile individuals, and these groups are prioritized for placement in shelter and housing with appropriate care,” the KCRHA spokeswoman said.

“There Will Always Be a Crisis”

Dones was at the KCRHA’s emergency meeting on Friday, and did not attend a long-planned, all-day implementation board retreat at the same time. Portions of the retreat were audible at a publicly accessible Zoom link on Friday. During their discussion about an upcoming vote on the agency’s 2024 budget, board members expressed frustration that Dones didn’t show.

Dones has no formal contract or job description, board member Ross added, which will make it hard for the board to conduct a credible evaluation of their performance.

“[The hotel emergency] is one crisis, with up to 300 people, but there are thousands more out there,” board member Christopher Ross said. “There will always be a problem [or] a crisis. You should be able to have other people step up. And this crisis, by the way, has been going on for several weeks, so to miss the one day where you need to bond with your bosses—they are creating a hole by not being in this room.” Dones has no formal contract or job description, Ross added, which will make it hard for the board to conduct a credible evaluation of their performance.

Dones has suggested that the budget vote should be a pro forma matter, since the agency adopted a biennial budget last year, but the proposal includes an expansion of the agency to include 11 new staff positions (two of which are currently grant-funded). Board member Ben Maritz questioned the budget’s focus on adding administrative staff, including three human resources officers. “This budget ask doesn’t reflect our shared goal of getting as many more people inside as possible,” he said.

The budget also assumes that the KCRHA will be able to continue the Partnership for Zero project after private funding runs out. The agency plans to use $5.2 million in Medicaid funding through a program called Foundational Community Supports, which pays for “pre-tenancy services,” like case management, for Medicaid enrollees people with complex health problems that make it difficult to keep housing or hold a job.

Also during the retreat, the implementation board decided to have a special meeting Tuesday evening to go over the budget in more detail before approving it and passing it on to a separate governing committee made up largely of elected officials from around the region. That board, whose job is mostly limited to approving policies and strategies the implementation board recommends, is scheduled to meet this Thursday and pass the budget.

Legislature Scales Back One Pro-Housing Bill While Shelving Another

Image via Sightline.org, shared under a Creative Commons 2.0 license

By Ryan Packer

At the beginning of this year’s legislative session, house housing committee chair Strom Peterson (D-21, Edmonds) predicted that 2023 would be the “year of housing.” But legislation to allow more housing statewide ended up being far more modest than many housing proponents hoped.

The state senate approved a bill on Tuesday that will require most cities in the state to allow at least two units on all residential lots, effectively prohibiting most cities from banning duplexes in single-family areas. Despite significant pushback from local officials wary of losing control over land use, HB 1110, which passed the House on March 6, has now passed both chambers on wide, bipartisan margins, and is moving toward Gov. Jay Inslee’s desk.

“It’s a huge and fundamental change in land use policy in Washington State to create a statewide floor of zoning based on population size of the city,” Rep. Jessica Bateman (D-22, Olympia), the bill’s sponsor, told PubliCola. “And there has historically been a significant amount of opposition to making that change.”

However, the senate dramatically scaled back the bill. As introduced, the legislation would have required nearly all cities in the state, regardless of population, to allow four units per lot, and six units per lot close to frequent public transit. Lawmakers reduced the bill’s scope at nearly every stage of the legislative process; the final Senate bill only required four units per lot in cities with more than 75,000 people, like Seattle, Bellevue, or Auburn.

“We did do away with exclusionary [single-family-only] zoning in the state of Washington, and I’m very proud of that. I think there’s some of us that recognize this was a huge first step, and we would like more steps to follow.”—Sen. Yasmin Trudeau (D-27, Tacoma)

Currently, Seattle allows a total of three units per lot in its neighborhood residential areas—a single-family house plus one detached and one attached accessory unit—so allowing freestanding buildings with four, and potentially six, units could eventually increase density substantially in formerly exclusive single-family areas.

The legislation would allow up to six units in areas where fourplexes are legal as long as two units are affordable housing. In smaller cities, the bill would allow less density on a sliding scale, based on the size of the city; cities under 25,000, like Woodinville and Medina, will only have to allow two units per lot, regardless of proximity to transit or whether the housing is affordable.

The changes were substantive enough that the Association of Washington Cities, the influential lobbying group representing a broad swath of local city governments, had dropped its opposition to the bill by the time it got to the senate floor. For most of this session, the group took a neutral position in the hopes of scaling back the density requirements in the bill.

“I would have liked a stronger bill, in an ideal world,” Sen. Yasmin Trudeau (D-27, Tacoma), who shepherded the bill on the senate side, told PubliCola. “We did do away with exclusionary [single-family-only] zoning in the state of Washington, and I’m very proud of that,” she said. Trudeau noted that this likely won’t be the last time the legislature tries to implement statewide zoning reform. “I think there’s some of us that recognize this was a huge first step, and we would like more steps to follow.”

Only two senate Democrats voted against HB 1110—Bob Hasegawa (D-11,, Seattle), and Christine Rolfes (D-23, Bainbridge Island)—along with 12 Republicans. Some Democrats like Lisa Wellman (D-41, Mercer Island) faced intense pressure to oppose the bill from local elected officials in places like Beaux Arts Village, population 315. “We have a problem, [and] we are addressing it in a very thoughtful way that allows for a lot of individual adjustments on the part of each and every community, regardless of their size,” Wellman said on the senate floor before the vote.

HB 1110 was a centerpiece in the housing supply agenda this year, but now that legislators have slimmed it down, another bill—HB 1337—might have a bigger impact on Washington’s smaller cities. While HB 1110 allows duplexes, 1337 allows property owners to build at least two accessory dwelling units (ADUs), allowing three units per lot, much as Seattle does now. And it applies to unincorporated areas, like White Center and Silverdale, which HB 1110 does not.

Another substantial pro-housing bill that would have required cities to allow larger apartment buildings near transit, SB 5466, won’t advance any further this year after it failed to get a floor vote in the house on Wednesday. Just a few weeks ago, that bill looked like it might advance over HB 1110, with some legislators and local leaders voicing support for density near transit over broad changes to residential neighborhoods.

But after Democrats in the House housing committee revamped SB 5466 to require developers to set aside 20 percent of units for affordable housing, the bill lost most of its Republican support. The bill will probably return next year, but the issue of mandating affordability for developments in individual cities—a dicey proposition at a statewide level—will almost certain remain fraught.

No Clear Solution for Hotel Evictions After Chaotic Homelessness Board Meeting; Budget Decision Postponed

By Erica C. Barnett

Update 11am April 15: This morning, the KCRHA reportedly sent its own outreach workers, known as system advocates, to the hotels where the Lived Experience Coalition has been paying for rooms through a federal emergency grant to figure out who is in the rooms and what their needs are. The KCRHA did not immediately respond to a request for more information about what the goal of this outreach is and whether funding has come through to pay for the rooms or provide other accommodations to the people living in them.

An unusually chaotic meeting of the King County Regional Homelessness Authority’s implementation board yesterday left unanswered questions about the fate of at least 165 people who remain in hotel rooms administered by the Lived Experience Coalition, which ran out of federal grant money to pay for the hotels earlier this year. As PubliCola reported exclusively on Monday, a public-private partnership called We Are In provided $1 million to pay for the hotel rooms through last Friday, but the KCRHA itself has said it can’t provide ongoing assistance for any hotel residents other than its own clients, who numbered about 30 (of as many as 250) as of last week.

In a conversation with PubliCola, Lived Experience Coalition director LaMont Green expressed confidence that no one at the hotels would end up back on the street. “A majority of the folks [who have left the hotels so far] have been accessing diversion, noncongregate shelter, shared housing, and some just regular permanent housing” using rapid rehousing subsidies, Green said.

However, it’s unclear whether the LEC will be able to continue moving people out successfully on their own; a majority of the people who have left so far are KCRHA’s own clients, and if the agency and local funders wash their hands of the situation, the LEC, an advocacy group that is made up largely of volunteers, will be on its own.

“The KCRHA recently became aware of an LEC program that has some financial difficulties . … We need to step away, frankly. I will again clarify for the public, the program is not operated by KCRHA, is not being funded by KCRHA, and has no formal connection to the KCRHA leadership level.”—KCRHA CEO Marc Dones

City officials, including the mayor’s office, did not respond to requests for comment earlier this week. However, on Tuesday, Deputy Mayor Tiffany Washington said in an email addressed to “funders and partners” that the “LEC seems fully capable of winding down the work without assistance from KCRHA. I propose that we release KCRHA leadership and staff to focus on other work and key initiatives like partnership for zero”—a reference to the Partnership for Zero effort, funded by We Are In, to eliminate homelessness in downtown Seattle.

Although the KCRHA’s own downtown outreach workers, known as system advocates, were directly responsible for placing dozens of KCRHA clients into the LEC hotels, agency CEO Marc Dones has maintained that the KCRHA knew little to nothing about the hotel program or its funding.

“The KCRHA recently became aware of an LEC program that has some financial difficulties and we are currently evaluating with the city, county, state, and private funders to determine how to fund the program and support residents of it,” Dones said during Wednesday’s implementation board meeting. “We need to step away, frankly,” Dones added. “I will again clarify for the public, the program is not operated by KCRHA, is not being funded by KCRHA, and has no formal connection to the KCRHA leadership level.”

The board meeting included other signs of the growing schism between the LEC—a coalition that advocates for people with lived experience, which the authority has described as “an independent organization that appoints representatives to the KCRHA Implementation Board and Governing Committee, and is a partner in our efforts to end homelessness”—and the KCRHA. Three positions on the board reserved for people with lived experience of homelessness remain unfilled, and a simmering debate over who should fill those roles bubbled to the surface as part of a separate discussion about bylaws, whose details the board is still debating after three years in existence.

Dones said the process for appointing the lived experience positions has been haphazard and “needs to be rethought,” and that the nominees should include “people who are not members of the LEC.” However, members of the advisory committee that appoints people to the board the nominations have tried to call a special meeting to make their nominations, and claim the KCRHA is blocking them from doing so by refusing to post a meeting notice on their website, as required by law. In short: It’s a mess.

With the clock running down on Wednesday, the board had just a few minutes to ask questions about a 2024 supplemental budget proposal they had received less than 24 hours before the meeting (and that still isn’t posted publicly on the KCRHA’s website).

With the clock running down on Wednesday—the KCRHA ordinarily caps its board meetings at two hours, but this one went long—the board had just a few minutes to ask questions about a 2024 supplemental budget proposal they had received less than 24 hours before the meeting (and that still isn’t posted publicly on the KCRHA’s website). Dones said it was “alarming” that the board wasn’t familiar with the proposal, and noted that the board already approved the agency’s biennial budget in 2023, suggesting that this was just a continuation of that budget.

During a brief discussion, board members argued that biennial budgets still deserve scrutiny, and often change from year to year; both the state of Washington and the city of Seattle, for example, operate on a biennial system but still go through a lengthy annual budget process. The KCRHA just proposed a revision of its new five-year plan that would refocus the agency on immediate shelter under a new mission statement—“To Bring Unsheltered People Inside as Quickly as Possible to Prevent Death and Further Harm”—that could, board member Ben Maritz argued, require the agency to change its spending strategy as soon as next year.

Additionally, the 2024 budget proposal includes requests for funding for nearly a dozen new KCRHA staffers, including three new HR staffers and a new “Housing Central Command Manager” for the “housing command center” that opened as part of Partnership for Zero last year. A memo on the budget that outlined the new positions is available on the KCRHA’s website.

The board decided to postpone approving the budget until its next meeting, which hasn’t been scheduled yet, and the meeting ended abruptly after several members dropped off the Zoom call, depriving the meeting of a quorum.

As Homeless Agencies Bicker Over Blame, Time Runs Out for Hundreds Living in Hotels

By Erica C. Barnett

Up to 250 people experiencing homelessness who have been living in hotels around the region could be back on the streets in the next few days now that funding for the hotels, provided through a one-year federal grant to a group of homeless and formerly homeless advocates called the Lived Experience Coalition, has abruptly run out. The people at risk of eviction include both individuals and families, and most have no housing plan in place.

Ordinarily, the LEC is not a housing or shelter provider; its primary role is advocating for policy solutions to homelessness and ensuring that people who’ve experienced homelessness have a seat at the table when policy decisions are made.

Last year, though, the LEC received a series of federal grants, including a $1 million, one-year grant to rent hotel rooms from FEMA’s Emergency Food and Shelter Program and another $330,000 to program to connect hotel residents to employment. The LEC signed an agreement with the nonprofit Building Changes to serve as its fiscal sponsor—a pass-through agency that distributes funds for new or grassroots organizations.

Over the past year, but particularly between January and March of this year, the LEC moved hundreds of people into hotel rooms funded by the federal grant. By March, cash flow was dire. As of early April, the estimated gap between the funding the LEC had on hand and what it owes various hotels totals more than $700,000, and the shortfall is ballooning at a rate of about $1.1 million a month, according to several sources familiar with the situation.

The King County Regional Homelessness Authority, which has distanced itself from the hotel program, also used the LEC hotel rooms to move people off the streets of downtown Seattle as part of a public-private partnership aimed at ending unsheltered homelessness downtown, called Partnership for Zero.

“We’ve been notifying [the LEC] about the cash issues for a year,” Building Changes executive director Daniel Zavala said. “We shared [concerns] on several occasions throughout 2022, and really in December of this last year we were more formally flagging some of the cash flow issues.”

In emails and memos obtained by PubliCola, the LEC denied this, and said Building Changes failed to provide them with information about their cash flow when they requested it.

“For a very long time, we were operating blindly which caused us to spend $370,000 more than the grant we were awarded,” LEC director LaMont Green wrote in an email detailing LEC’s grievances with Building Changes. “We consistently asked for the financial reports but to no avail. Building Changes made us aware of this gross overspend less than 2 months before year end. … Additionally, when LEC received financial reporting it was often inaccurate.”

Zavala, from Building Changes, disputes this account. “We provided financial information on numerous occasions to the LEC over the last year,” Zavala said. “We’re here because the LEC mismanaged its finances.”

 

But the crisis isn’t just about a single organization falling into arrears.

The King County Regional Homelessness Authority, which oversees the region’s response to homelessness, also used the LEC hotel rooms to move people off the streets of downtown Seattle as part of a public-private partnership aimed at ending unsheltered homelessness downtown, called Partnership for Zero.

The organization that runs Partnership for Zero, another nonprofit called We Are In, initially floated the idea of using $1 million of the remaining program funds to get the LEC out of arrears—and keep the hundreds of people living in the hotels from falling back into unsheltered homelessness.

As of two weeks ago, according to emails, We Are In planned to use $1 million of the $10 million it pledged for Partnership for Zero to pay for the hotels. “We will be allocating $1M of the remaining partnership for zero funds at KCRHA to the outstanding LEC hotel invoices,” We Are In director Felicia Salcedo wrote to Zavala on March 30.

Taking these funds out of Partnership for Zero, Dones responded in the same email thread, would “cause the KCRHA to pause hiring as these funds were obligated to support staffing. My team estimates that this will reduce the overall housing capacity of the project by at least 1/3 if not more.”

On Monday, We Are In spokesman Erik Houser said the organization ended up using $1 million of its own funds, separate from the Partnership for Zero, to pay the LEC’s outstanding invoices for the hotels. That money ran out on Friday, and Houser said it’s now up to “other partners,” including government funders, to address the problem.

A spokeswoman for the KCRHA said Monday that “together with public and private partners, we have been working to identify possible solutions.”

 

Last week, a frenzy of finger-pointing almost overshadowed the imminent human crisis.

In one email exchange with LEC director Green’s requests for help coordinating shelter or housing for people living in the hotels, for example, KCRHA CEO Marc Dones wrote, “As I have stated repeatedly this is not a kcrha program and funding decisions are not being made by kcrha staff. …  I am unclear how else to be of assistance.” It was a comment Dones would echo repeatedly throughout the week, and not without justification—the KCRHA was not involved in the original FEMA grant and played no part in the LEC’s partnership with Building Changes.

But the KCRHA was aware of the program. In fact, the agency’s own system advocates—outreach workers who connect people living unsheltered downtown to shelter and housing—were using the LEC hotel rooms to shelter people living downtown. Starting late last year, KCRHA staff utilized LEC-funded hotel rooms to shelter at least 90 people living in downtown Seattle, something PubliCola first reported back in February. According to an email Green sent to a group of agency and nonprofit partners last week, Green told Dones about the program in April 2022.

Green did not respond to a request for comment (in general, the LEC makes decisions and statements collectively) and the KCRHA declined to speak with PubliCola about the timeline. However, a KCRHA spokeswoman did confirm that of about 30 of the people KCRHA staffers moved into hotels through the LEC program were still in the hotels last week. The spokeswoman said all 30 were either moving into permanent housing or had housing plans in place.

Last week, with accusations flying between the LEC, Building Changes, and the KCRHA, Building Changes announced it was pulling its fiscal sponsorship from the LEC, which will be unable to receive or distribute funds until it obtains its own nonprofit status. The LEC sent a letter to Building Changes saying it would create “cruel and unusual duress” for Building Changes to drop its sponsorship without an exit strategy, but the decision appears final. “I can confirm that we have terminated our business relationship with the Lived Experience Coalition,” Zavala said.

Building Changes is also the fiscal sponsor for We Are In, which has pledged $10 million to the KCRHA for its Partnership for Zero work. That effort, which the KCRHA initially hoped to wrap up within a year, is behind schedule, in part, because landlords have been reluctant to rent to people with one-year subsidies without knowing what happens in “the 13th month,” according to an update from Dones in January.

As the program enters its second year, KCRHA is under pressure to show it’s making progress; We Are In is distributing its $10 million pledge in tranches, including an initial $4 million last year.

 

It’s unclear what, if any, funding is available to cover the hotel funding shortfall, which continues to grow every day the LEC’s clients remain in their rooms, which are distributed across several hotels in South and North King County, as well as one in Tacoma.

The implementation board includes three members (out of a current 13) who were appointed by the Lived Experience Coalition, including LEC co-founder and co-chair Okesha Brandon.

King County, which (along with the city of Seattle) is one of the KCRHA’s primary funders, says it does not have the money to pay for the LEC’s hotel bills. “We were recently made aware that the Lived Experience Coalition (LEC) is unable to maintain their temporary hoteling program, which had been used to shelter people experiencing homelessness,” a spokesman for King County Executive Dow Constantine said Friday.

“To determine how this situation occurred and ensure oversight and accountability, KCRHA is calling for a formal inquiry and audit of how the LEC program was managed and what will be done to prevent a similar situation in the future.”—King County Regional Homelessness Authority

“The hoteling program is independently run and managed by the LEC and is not a program within the KCRHA,” Constantine’s spokesman continued. “However, public and private partners are concerned about the impact on individuals currently sheltered in hotels and are working together to identify possible solutions.”

Spokespeople for Mayor Bruce Harrell and the city’s Human Services Department did not respond to requests for comments.

In a statement, the KCRHA said the agency was “recently made aware that the Lived Experience Coalition (LEC) is unable to maintain their temporary hoteling program, which had been used to shelter people experiencing homelessness.

“The LEC is an independent organization, and their hoteling program is not funded by KCRHA. However, we recognize that the closure of any shelter program has a significant impact on our communities and on the lives of the people given refuge in these hotels.”

The homelessness authority is “calling for a formal inquiry and audit of how the LEC program was managed and what will be done to prevent a similar situation in the future,” the statement concluded. Meanwhile, at press time, it was unclear what will happen to the people still staying in the LEC-funded hotels, and whether they’ll get to stay until they can move to other shelters or housing or be sent back out onto the street.

The KCRHA’s implementation board will meet on Wednesday, when Dones and the board are expected to discuss the hotel issue in public for the first time.

County Approves Controversial Jail Transfer, May Keep Veterans Levy Flat Despite Rising Costs

1. After hours of public comment opposing the transfer of 60 men from the downtown King County Jail to a regional jail in Des Moines called the South Correctional Entity (SCORE) yesterday, the King County Council approved the contract, with only Councilmembers Jeanne Kohl-Welles and Girmay Zahilay voting “no.”

County Executive Dow Constantine secured $3.5 for the transfer, which the county Department of Adult and Juvenile Detention has said will only include mentally and physically “healthy” men accused of low-level crimes, in last year’s budget, but the furor over the decision didn’t begin in earnest until this year, when legislation to move the first group of downtown jail residents came before the council.

The DAJD has said the transfer is necessary to improve safety and reduce workloads for guards at the downtown jail, where understaffing has become a chronic issue and where, as several council members noted Tuesday, some officers have resorted to sleeping at the jail during the brief time between their shifts. Opponents, including prison abolitionists and the union that represents employees at the county’s Department of Public Defense, argued that the move has the potential to endanger prison residents, limits their access to visitors and attorneys, and does little to solve the long-term issue of over-incarceration, including people who languish in jail waiting for competency restoration or because they can’t pay bail.

“[The DAJD has] worked tirelessly at making sure that the standards and the jails health services in a King County Correctional Facility are better than standards in most facilities throughout this country, Caedmon Cahill, policy director for the Seattle Office of Civil Rights, told the council. (Cahill was speaking as an individual, not a representative of OCR.) “That is why I have such concern with this council and the executive outsourcing this responsibility to another agency. I do not have faith that those that SCORE will come to you when they are not meeting your expectations.”

“We need to do more with getting our staffing in place, but we also need to take down this downtown jail. That can’t be done overnight, so we’re talking about short term solutions and long term solutions, but I don’t find the short term solutions really compelling.  We’re going to be asked to put in more money, and more money, and more money, and [never] get to the solutions.”—King County Councilmember Jeanne Kohl-Welles

But DAJD director Allen Nance said removing 60 people would make it easier for the department to ensure the safety of those who remain. “If we can move some people to SCORE, perhaps reduce the number of people that are in the in county jail by moving some folks to our [Regional Justice Center] facility, we can get to a place where we are no longer having to operate as much of the downtown jail as we have in the past, and we are in a better position to provide the level of service to the people who remain downtown in a way that is challenging for us to achieve today,” Nance said.

The agreement included several amendments that council members said would help mitigate its impact, including one sponsored by Councilmember Rod Dembowski that will require council approval for future transfers to SCORE and another, sponsored by council chair Dave Upthegrove, that will require the executive to get council approval for any future contract extensions.

Before the vote, Kohl-Welles, who will leave the council next year, said she expected that Constantine and the DAJD would be back with a request to expand the SCORE contract within a year. “We need to do more with getting our staffing in place,” she said. “But we also need to … take down this downtown jail,” something Constantine has pledged to do. “That can’t be done overnight, so we’re talking about short term solutions and long term solutions, but I don’t find the short term solutions really compelling.  We’re going to be asked to put in more money, and more money, and more money, and [never] get to the solutions.”

2. The King County Regional Policy Committee, which includes elected officials from cities across the region as well as county council members, voted this week to put the six-year Veterans, Seniors, and Human Services Levy on the ballot in August without increasing the initial rate property owners will pay if the levy passes above the current 0.01 percent (10 cents for every $1,000 of property value). The levy pays for housing, behavioral health care, and other services for veterans and seniors.  A staff analysis, first reported on by Crosscut, showed that a flat levy renewal will cut the amount of affordable housing the levy can build by half, and fund ongoing operations at 45 percent fewer units than the current levy.

In contrast, Seattle Mayor Bruce Harrell recently proposed a renewal of the city’s affordable housing levy that would nearly triple the size of the levy, an increase that will only modestly expand the amount of housing the levy will build thanks primarily to the rising cost of construction,

Councilmember Rod Dembowski proposed several amendments that would raise the levy by varying levels—from .011 to .013 percent—but got no support.

In fact, the mayors of two suburban cities—Nancy Backus of Auburn and Angela Birney of Redmond—argued that renewing the levy at 10 cents per $1,000 actually represents an increase, because the current “effective rate” of the tax is just over 8 cents per $1,000. For context, it’s important to know that 10 cents per $1,000 was only the initial levy; it went down over the years as property taxes increased, because the county could raise the fixed amount of money the levy promised with a lower tax rate. Raising the initial level back to 10 cents per $1,000 will cost homeowners about 20 percent more, but that’s only because King County homeowners’ property wealth has skyrocketed over the past six years. If this levy passes, the effective rate will almost certainly decline as property values rise as well.

King County Councilmember Claudia Balducci voted for the 10-cent rate, but said she wanted to keep the tax level open for discussion when the county council’s budget committee meets to discuss the proposal later this month.

“I will support moving this out today with the rate as it is, but would like to set the expectation that we have a real discussion at the committee,” Balducci said . “I hope we don’t walk away from exploring this as deeply as it deserves.”

House Democrats Cede Ground on Density, Scaling Back Transit-Oriented Development Bill

By Ryan Packer

In the final weeks of the legislative session, the future of one of the year’s most substantial housing bills is in doubt.

The legislation, SB 5466, would have allowed dense development near public transit, but Democrats in the state house significantly changed the scope of this transit-oriented development bill last week—a surprise move, given the resounding 40-8 State Senate vote in favor of the bill just a few weeks earlier.

The original bill, sponsored by Marko Liias (D-41, Edmonds), would have loosened density restrictions within a three-quarter-mile walking distance around light rail, Sounder, and bus rapid transit stops, and also around bus stops with service running at least every 20 minutes for most of the day. The bill would have also allowed residential and commercial five-story buildings within the entire three-quarter-mile area, while also allowing buildings eight to nine stories tall within a quarter mile. Developers would not have to build parking within any of those footprints.

“I think this is the smartest way for Washington to address our housing challenges,” Senator Mark Mullet (D-5, Issaquah) said before the senate passed a version of the bill, which scaled back the density allowance for local bus service to a half-mile walking distance. But several state representatives said the process essentially started over in their chamber.

“The scope of the bill was really large, and we also heard from a lot of our constituents, from a lot of our colleagues, that when we included not only light rail but bus rapid transit, and frequent bus stops, that the scope of redevelopment was a little unnerving for many.”—Rep. Strom Peterson (D-21, Edmonds)

Following complaints from local elected officials that the bill applied too broadly, the slimmed-down version moving through the house would only apply to an area within a half-mile of light rail and Sounder stations, and to a quarter-mile around bus rapid transit stops. Meanwhile, frequent local bus service would no longer trigger density bonuses. The bill still bans mandatory parking minimums in the areas where it would still apply, though cities will be able to petition the state for an exemption to require additional parking.

“The scope of the bill was really large, and we also heard from a lot of our constituents, from a lot of our colleagues, that when we included not only light rail but bus rapid transit, and frequent bus stops, that the scope of redevelopment was a little unnerving for many,” Rep. Strom Peterson (D-21, Edmonds), chair of the house housing committee, told PubliCola. “So we wanted to scale that back, to come up with something that might be more of an iterative process.”

Supporters of the original bill saw its broad scope as the best way to encourage both housing development and public transit investment.

“Based upon how you’re developing [housing] around frequent service, a lot of time those [bus stops] turn into BRT stations,” said Bryce Yadon, a lobbyist with Transportation Choices Coalition and Futurewise, which have been advocating for the senate version of the bill. “We want the best transit service across the region and the state … and to do that, you make fast, reliable, frequent service, and then you make sure that there is developable land around that service.”

The most significant change house Democrats made in the housing committee, though, was adding an extra requirement called “inclusionary zoning” for developers hoping to use the additional zoning capacity. Under his requirement, developers would have to set aside at least 20 percent of new units for households earning less than 60 percent of the area median income, which works out to $62,160 for a family of two in King County.

In addition, house Democrats reduced the maximum density, in most cases, to just three or four stories.

“We really wanted to put a bigger lens of affordability onto the bill,” Peterson said. “This was not only true for the Democrats on the housing committee, but also a lot of stakeholders that got involved: cities, the [Washington] Low Income Housing Alliance, and others.” But many housing developers, including those who build affordable units, argue that the new affordability provision is prohibitively high, and will have a chilling effect on the construction of new units.

“The bill that came over from the Senate was a very strong bipartisan bill. This legislation really rolls back generations of policy efforts to create inclusive communities. It will separate the haves from the have-nots.”—Rep. Peter Abbarno (R-20, Centralia)

Developers argue that requiring too many affordable units in otherwise market-rate buildings often means that a project that would make financial sense can no longer be built at all, leading to underdevelopment. “When we do things like say, ‘We’re only going to build new housing if it’s affordable’, we are making the problem worse because that housing has to be subsidized, and therefore cannot be built,” Ben Maritz, founder of Great Expectations, which specializes in constructing buildings with smaller-than-average units that can be rented for below market-rate rents, told PubliCola.

Maritz pointed to the Cornus House, a 199-unit building that Great Expectations is building near the Tacoma Dome Sounder station. If 20 percent of the units had to be affordable to people making 60 percent of the area median income, he said, the company would need to charge more than $2,300 for a 400-square-foot apartment, something that isn’t feasible in today’s market. On top of that, the new density provisions in SB 5466 wouldn’t allow 199 units on the lot, which would lead to even higher market-rate rents. “When we restrict housing, we make housing more expensive, which just makes the problem harder and harder. It’s an unworkable approach to solving our housing problem,” Maritz said.

The house Democrats’ rewrite has sapped Republican support, in a year when most housing bills are passing with bipartisan backing. “The bill that came over from the Senate was … a very strong bipartisan bill,” Rep. Peter Abbarno (R-20, Centralia) said just before every Republican on the house capital budget committee voted “no” on the bill. Abbarno argued that relying on public investment to build affordable units close to transit would create income-segregated areas. “This legislation really rolls back generations of policy efforts to create inclusive communities. It will separate the haves from the have-nots,” he said.

Seattle lawmakers, including Rep. Emily Alvarado (D-34) and Julia Reed (D-36) have taken center stage in the negotiations around SB 5466 in recent weeks. Alvarado previously served as the director of the Seattle Office of Housing as the city was implementing its Mandatory Housing Affordability program, which offers developers slightly more zoning capacity in exchange for building on-site affordable units or paying a fee to subsidize them elsewhere, and has been an outspoken advocate for the affordability mandates in the bill. 

“This is, in its essence, about creating more affordable homes for those with the lowest incomes alongside homes for people with higher incomes,” Alvarado said before voting “yes” in committee. “It is, in and of itself, about fostering inclusion, and opportunity, and diversity—particularly in the communities like [those] across my district where we invest in our transit.”

The session’s other main housing bill, HB 1110, sponsored by Rep. Jessica Bateman (D-22, Olympia), is also seeing some heavy tweaks as it moves toward a final vote. As originally introduced, it would have required cities to require at least four units on most residential lots in the state’s urban areas, regardless of the population of an individual city. Most recently, an amendment by Sen. Mullet scaled the bill back so that it only requires cities with fewer than 75,000 people to allow duplexes on most residential lots—ceding a lot of ground to complaints from local leaders in cities like Mercer Island who had pushed back on the bill, arguing that their low-density areas couldn’t support more development.

Housing advocates saw both bills as necessary to address the state’s shortage of housing. But with 1110 retaining support on both sides of the aisle, and Democrats deciding to go it alone on transit-oriented development, it looks increasingly likely that only one will make it through this year.

ryan@publicola.com