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It isn’t easy telling tenants who are losing
their homes to a condo conversion that you can only
help them by giving a tax break to apartment developers.
But that’s the situation two City Councilmembers
found themselves in last week at the Ballard library.
The Sept. 12 meeting of the Ballard Community Council
was advertised in flyers as a forum on affordable housing
— a hot topic these days for residents of Lock
Vista, a Ballard complex that is currently being sold
to a developer who plans to convert its 191 units.
Residents of the complex — some sporting “Save
Lock Vista” T-shirts — packed the room to
ask Tom Rasmussen and Sally Clark, chair and co-chair
of the council’s Housing Committee, what the city
can do to help them. But Rasmussen made it clear that
he and Clark were there to talk about expanding something
called the Multifamily Tax Exemption, not saving Lock
Vista.
Nothing can be done about their apartments, Rasmussen
said, because state law prevents the city from regulating
condo conversions — something Rasmussen is working
to change in the Legislature. The city considered buying
it, Office of Housing Director Adrienne Quinn said at
the meeting, but brokers told her it would cost $40
million — a figure, she said, that dwarfs the
city’s annual $8 million budget for building housing.
Rasmussen and Quinn then outlined “Homes Within
Reach” — the mayor’s name for his
proposal to increase the neighborhoods and income ranges
covered by the city’s existing Multifamily Tax
Exemption. Passed in 1994, the law currently allows
developers in 17 neighborhoods to pay no property tax
on new buildings for 10 years if they make rents or
condo prices affordable in 20 to 30 percent of the building’s
units. (For condos, it’s the initial buyers who
get to take the tax break.)
Today, the top income allowed for an individual renter
is $38,150, or 70 percent of the area’s median
income. The mayor’s plan would increase the tax
break to 12 years and up the income range to 100 percent
of median, covering individuals making $42,000 to $52,000
a year, along with expanding the program to 39 neighborhoods
— including Ballard, which is already in the midst
of a condo boom.
When Ballard resident Wallace Rickard asked who in
the room makes $42,000 a year, no one raised their hand.
“A tax incentive for multibillion-dollar corporations,
to me,” he said, “sounds very Republican.”
Others questioned whose taxes would pay for sidewalks
and other infrastructure that new developments would
require and how long before the new apartments themselves
could be converted to condos.
“We need to act and stop the condo conversion
because we’re losing diversity in our community,”
said one man to applause. “We’re losing
people who grew up here.”
Rasmussen and Quinn stressed, however, that other
city housing funds are available for people who make
less than $42,000 a year. There’s no way right
now, they said, for the city to address the housing
squeeze faced by moderate-income workers such as firefighters,
teachers, and nurses.
“When we have an earthquake, would you prefer
to have the police, the firefighters, the nurses live
in the city, or do you want them to be living in Bellingham?”
Quinn asked. “It’s not a question of one
income group being more important than another, but
what tool can work at each different income level.”
Lock Vista resident Iskra Johnson wasn’t impressed.
“This is extremely timid,” she said. “It
just seems you could do a lot more.”
[Events] Councilmembers will attend
two more meetings to take public comment on expanding
the housing tax break for developers:
- Sept. 19, 7 p.m., at the Youngstown Cultural Center,
4408 Delridge Way S.W.
- Sept. 26, 6 p.m., at the Rainier Community Center,
4600 38th S. For information, call (206)684-8808.
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