On Jan. 11, more than 100 University of Washington students, staff and tenants and their supporters held a rally denouncing a proposal by the university administration to privatize four of its residential properties. After the demonstration, protesters packed into the lobby of a small conference room to give public comments and express opposition to the plan at the university’s bimonthly Board of Regents meeting.
In September 2022, the university announced a proposal to lease out four of its off-campus apartment complexes: Nordheim Court, Blakeley Village and Laurel Village, which are located near the University Village shopping center, and Radford Court, which is in the Sand Point neighborhood. Together, the four properties contain more than 1,000 units of housing, ranging from single-student dormitories to three-bedroom student family housing.
The plan is for a private developer to take over the sites for a lump sum of nearly $170 million and more than $2 million a year in exchange for the rights to manage and collect rents on the properties. This money would then be used by the university to replace McMahon, Haggett and Hansee dormitory halls, which are located on campus.
Current tenants fear that the plan could lead to displacement or rent increases. In the 160-student family units of the Blakeley and Laurel properties, the university currently charges rates about 40 percent below market rates. Under the proposal, the developer would be allowed to redevelop the two properties as long as it leaves 160 units to remain affordable for people making 50 percent of the area median income. In the rest of the redeveloped units, as well the ones in Radford and Nordheim, the developer would be allowed to charge market rates. The plan also calls for the developer to expand child care capacity at the Laurel Village preschool by a third.
Penelope Lilley, a UW undergraduate student and resident at Blakeley Village, said at the rally that the university’s affordable student family housing helped her find stability and community.
“As a non-traditional student with a family, it's definitely had its own ups and downs and challenges,” Lilley said. “When I finally got here to UW, I felt like I finally found home and a place where I can grow, and I can become the person who I've always wanted to. And then I found out that I am going to face, possibly, homelessness because UW is going to privatize.”
Lilley added that residents weren’t offered any relocation support during the potential redevelopment of the Blakeley property.
“I even asked them directly: ‘Are you going to open up other UW housing for families during this time of construction?’” Lilley said. “And they said, ‘No, we're giving you two years’ notice; figure it out.’ I have to say, I feel very betrayed by my university, and it really breaks my heart.”
According to UW spokesperson Victor Balta, the university is still considering its options and has not yet made a decision as to whether the proposal will come to fruition. He added that there would be a net increase in affordable housing units with the redevelopment of the on-campus student dorms under the possible deal.
Many demonstrators expressed hopes that the housing would remain in public hands and stay as affordable as possible amid an escalating housing crisis. Some held signs in support of Initiative 135, which would establish a social housing developer and potentially allow for more publicly owned and managed non-market-rate housing.
According to the think tank Up for Growth, Washington state has a shortage of roughly 140,000 homes. Some housing advocates claim this overall lack of housing is also contributing to the rise in prices.
If the privatization proposal is approved, it means that the developer would make more than $170 million in rental profits from tenants over the course of the deal’s lifetime. In an analysis produced by the university’s own consultants, the authors wrote that it’s “probable that overall higher revenue to the University could be achieved in that same time frame without leasing the properties.”
However, the consultants argue that losing out on this extra money is worth it to speed up the redevelopment of the on-campus dormitories.
UW unions also oppose the proposal. Katie Osterhage, a research scientist with the Department of Family Medicine and member of UAW 4121, said that whether the university is a landlord, employer or both, it must treat people fairly.
“We deserve better from an $8 billion, world-class institution that claims to care about its community,” Osterhage said. “This university works because we do.”
Guy Oron is the staff reporter for Real Change. Find them on Twitter, @GuyOron.
Read more of the Feb. 1-7, 2023 issue.