Tag: Health Through Housing

By Opting Out, Suburban Cities Could Blow an $8 Million Annual Hole in Homeless Housing Plan

Image via King County.

By Erica C. Barnett

At least half a dozen cities have chosen to opt out of a proposed countywide “Health Through Housing” sales tax increase that would provide permanent supportive housing for an estimated 2,000 chronically homeless people.

The cities, which include Renton, Issaquah, Kent, and Covington, will use authority granted by the legislature this year to impose their own 0.1 percent sales tax for affordable housing, a category that includes not just housing for very low-income people but “workforce housing” for people making up to 60 percent of the Seattle-area median income.

The council’s committee of the whole voted 8-1 on Tuesday to approve the countywide tax measure, which would impose an additional 0.1 percent sales tax on purchases throughout King County, on Tuesday, and the full council will vote on the tax proposal next week. Assuming it passes, the county will have to come up with a plan to spend the money.

But how much money will there be? The county originally estimated that the tax would bring in a little under $68 million in 2021; bonding against half that revenue stream, the maximum allowed under state law, could give the county around $400 million to purchase sites and turn them into affordable housing. The cities that have opted out of the tax so far have taken more than $8 million off the table. That brings the county’s annual revenues down to just under $60 million.

Leo Flor, the director of the county’s Department of Community and Human Services, says the county needs between $27 million and $30 million a year (that is, half of $54 to $60 milliion) to purchase bonds worth $400 million. The county could hit that threshold, if retail sales don’t slip below forecasts and if no more cities pull out of the taxing district. “We’re still moving forward,” Flor said Thursday, but “every dollar counts. Even at the full size [with every city opting in], 2,000 people is less than half of the people experiencing chronic homelessness in King County right now.”

Issaquah’s tax, Flor notes, will expire if the city signs a memorandum of agreement with the county to allocate the revenues raised within Issaquah to projects in that city. If revenues prove too low to fund a $400 million housing measure, the county could opt to build less housing.

No matter how much money the county brings in, the plan will require a change in state law to allow the county to purchase distressed properties, such as hotels and nursing homes, and convert them into permanent supportive housing. 

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Morning Fizz: Homeless Tax Preemption and Election Speculation

Homeless advocates see a hotel in Renton that was converted into a temporary shelter as a major success story. Some local politicians see it differently.

Today’s Fizz:

1. This week, cities across King County will be voting on measures that could reduce the size of a proposed countywide sales tax for very low-income housing by millions. On Monday night, Renton, Tukwila, and Issaquah were among first few cities to decide whether they wanted to pass their own 0.1 percent sales tax, as authorized by the state legislature earlier this year, to pay for housing inside the city for people making up to 60 percent of the area median income. Renton’s council voted “yes” unanimously; Issaquah’s approved it on a 4-3 vote; and Tukwila’s rejected the proposal on a 5-2 vote.

I first reported on the proposals last week. Since then, items to supplant the countywide sales tax, which the King County Council will likely vote on next week, have appeared on city council agendas across, primarily South King County—from Maple Valley to Federal Way to Kent. Every city that opts out of the tax—that is, every city that opts to pass a local version of the tax, with proceeds the city can keep to itself—takes some money away from the potential size of the countywide proposal.

On Monday night, proponents of local taxes argued that suburban cities deserved local autonomy to decide what to build in their communities, and specifically cited an emergency shelter for chronically homeless people in Renton—a hotel that has been touted by advocates and service providers as a major success story because it has enabled people to stabilize and begin to deal with underlying conditions that contribute to their homelessness—as an example of what the county would impose on cities if they didn’t act first, and fast.  “By passing this” local tax, Renton council member Valerie O’Halloran said, “we are retaining 100% of the say of how our money is spent within our community.”

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If you don’t wish to become a monthly contributor, you can always make a one-time donation via PayPal, Venmo (Erica-Barnett-7) or by mailing your contribution to P.O. Box 14328, Seattle, WA 98104. We’re truly grateful for your support.

Opponents of going it alone argued that the whole point of being part of a regional solution to homelessness was to think regionally, because homelessness doesn’t end at any single city’s borders. Tukwila council member De’Sean Quinn pointed out that the countywide proposal, which could raise up to $400 million to purchase existing buildings and convert them to supportive housing for chronically homeless people, is a big pot of money that allows the county bond for an even bigger pot of money; collecting smaller amounts on a local-only basis, he argued, would inevitably lead to slower and smaller developments.

The King County Council will vote on the countywide tax next week.

2. Speaking of the county council, rumor is that longtime Republican council member Pete von Reichbauer (who represents much of South King County) does not plan to run for reelection. Possible contenders for the position include former Democratic state representative Kristine Reeves, Federal Way city council member Lydia Assefa-Dawson, Auburn mayor Nancy Backus, and current Republican state rep Drew Stokesbary. Continue reading “Morning Fizz: Homeless Tax Preemption and Election Speculation”