February 22, 2006

Three Percent for Housing

Issue: House Bill 2418, the Home Security Fund, just cleared a major legislative hurdle last week by passing the Washington State House of Representatives with a 72-24 vote. Now it begins its process in the Senate before it can go to the Governor for her signature. Clearing a long backlog of affordable housing projects waiting to be built, the bill provides $25 million a year for low-income housing across the state and could provide 2,300 units of affordable housing.

Background: Washington state provides funding for low-income housing through the Housing Trust Fund (HTF), which is part of the state’s Capital Budget. The current rapid increase in housing values has increased the revenue generated from the real estate excise tax, which is imposed upon the sale of property. House Bill 2418 would use some of that increase to develop more affordable housing. Counties around the state have housing projects waiting for increased Housing Trust Funds. In King County, there are 12 projects representing 341 units of housing ready to go if the funding were there.

The hot housing market that is increasing the state revenue also drives up housing prices, making even rent unaffordable for many people in Washington. In King County, a worker has to earn $13.42 an hour just to afford a one-bedroom apartment and over $16 an hour for a two-bedroom at market value. The 10-Year Plan to End Homelessness states that there is a need for more than 9,000 units of affordable housing in the county to serve homeless people. Increasing state funding for low-income housing is an important part of the effort to end homelessness.

• HB 2418 would allow a little more than 3 percent of the proceeds of the REET revenues to be moved from the General Fund to the Housing Trust Fund.

• HB 2418 would generate $100 million dollars over the next four years to fund affordable housing and services for the homeless or disabled, as well as for farm workers, domestic violence survivors, families, and more.

• HB 2418 would make a strong program even better. Housing Trust Fund dollars leverage private resources for affordable housing and stimulate economic growth by creating new jobs.

Action: Please ask your State Senator to support House Bill 2418, which could provide 2,300 affordable housing units for low-income people. Basic human dignity requires that safe and affordable housing be available to all people. HB 2418 is a step in the right direction.

You can find your State Senator and her/his email address by visiting www.leg.wa.gov or you can call the Legislative Hotline at 1(800)562-6000 and the operators will deliver your message.

For more information or to take action online, contact the Washington Low Income Housing Alliance at www.wliha.org.