Stakeholders Respond to Hawkins’ Affordable Housing Bill Progress – Quad City Herald

OLYMPIA - Sen. Brad Hawkins' affordable housing bill has reached the Governor's office and is pending final approval. Those who testified for its approval expressed their excitement for the bill's progress.

"Chelan Valley Housing Trust is very grateful for the efforts of both representative Mike Steele up here in Chelan County and of course, Senator Brad Hawkins," Chelan Valley Housing Trust Executive Director Steve Wilkinson said. "They're really highlighting the need for creative legislation to address the housing crisis we have got here in Chelan County and Senator Hawkins demonstrated great resolve and flexibility to sponsor Senate Bill 5868 for the purpose of expanding that eligible use of the existing rural sales and use tax for funding housing."

SB 5868 is targeted towards expanding the use of rural county public facilities sales and use tax to include affordable workforce housing, generally used for economic development or building infrastructure. This is a 0.09% sales remittance tax that is coming out of the 6.5% state sales tax. If signed into law, this would not increase tax rates and will be eligible for those who do not make more than 120% over the median income within their county. It would be designated for nonprofit housing so that it remains affordable after a resident or developer sells their property.

"There is a major growing issue with housing affordability especially in our areas," Sen. Hawkins said "Places like Leavenworth, Lake Chelan, the Methow Valley, and all throughout the state."

The bill traversed both House and Senate floors March 7-9 and was finally placed on the Governor's desk by March 11.

"Passing any bill in Olympia is difficult but housing bills have proven to be especially challenging, so I'm just really grateful to the many local stakeholders who supported this effort and who helped advocate for it. This bill would not be where it is without their support."

Those who testified for the bill's approval include Upper Valley MEND, Chelan Vallery Housing Trust, Chelan County, Leavenworth Mayor Carl J. Florea, Leavenworth City Councilmember Zeke Reister, Wenatchee Valley Chamber, Confluence Health, and Cascade Medical.

Those who testified against the bill include the Washington Public Ports Association due to the bill's last minute change to fund workforce housing through the state sales tax rather than through lodging taxes. Chelan County Housing & Economic Development Director Sasha Sleiman recalled that the Port's concerns were based in the funding stream becoming too thin down the line.

"I think everybody kind of understands the importance of it, but anytime you expand use of funding, that means hypothetically, other people won't be able to get as much funding. The funding is limited, there's a set amount of money," Sleiman explained. "If you're allowing for more people to apply for that funding, people who are existing recipients of that funding may get nervous, so I think that's where we're seeing that from the statewide port association."

Many proponents for the bill argue that there will be little economic development without more infrastructural development for workforce housing.

"If your workers can't live where you have the infrastructure or you want to build the infrastructure, then what's the point of having money for infrastructure if it's in a place where those kind of skills, those kind of laborers, those kind of workers can't live?" Leavenworth City Councilmember Zeke Reister asked. "It's really important to have people living where they work as much as possible."

Steve Wilkinson reports that both Leavenworth and Chelan are placed in a unique housing position due to their high-income populace driving out the housing market, but with tourism and hospitality at an all-time high, employees have become increasingly scarce.

"We have a much greater populace of affluent retirees that now live here. They are in the need of central year-round services," Wilkinson explained. "There's a need for employees here and for a longer period of time to meet this tourism. When you do not have the housing, it's hard to retain employees and it's hard to attract employees."

Here is Leavenworth Mayor's response regarding WA SB 5868:

Mayor Carl J. Florea:"This is a great bill that will give us one tool to help us address our housing crisis. No one thing, nor any one bill, will solve our housing needs. But this is the first time we have the option to put some locally generated funds towards the problem, and the significance of that cant be overstated. And this is the first time a bill of any kind has come through our state that gives resources towards those needing housing above the affordable housing model that was limited to those making less than 80% of area median income. This bill allows these dollars to go for workforce housing that serves those up to 120% of area median income. Truly groundbreaking.I approached Sen. Hawkins with our need for a funding stream to address workforce housing and asked for his help. He originally agreed to sponsor a bill to allow us to use a portion of our lodging tax. But when that failed to gather the needed support, he changed direction to use these county .09% sales and use tax funds to address the same need. Sen. Hawkins truly gets how the lack of housing is devastating to a community such as ours. I cant thank him enough for his tenacity and steadfastness to work this through the legislature. And both our representatives, Rep. Mike Steele, and Rep. Keith Goehner, were supportive and a help to get this bill through the House. A big first step, one of many that will need to be developed to address our shortage of housing."

COMMON GROUND Community Housing Trust Board President Thom Nees"Senator Hawkins bill, SB 5868, is smart legislation for such a time as this as evidenced by the broad support in the WA State House and Senate. The bill does not create a new funding stream, but instead, offers the opportunity for local jurisdictions, like Chelan and Douglas Counties, to direct existing funding that can increase attainable housing units for our workforce. With the Governors signature, the counties will be able entertain applications from non-profit Community Housing Trusts and the Housing Authority for development infrastructure costs which is a major cost of housing.In the Greater Wenatchee area, we have a median sales price of over $450,000 now, and an affordable price for our workforce is $200,000-$250,000. In order to deliver these housing units to the consumer, we have to fill the gap between what the market place delivers and what is attainable. This legislation gives the opportunity to access funding to help do that.I am grateful for SB 5868 passage. I am also glad to live in the Greater Wenatchee area where local officials recognize our housing crisis, and are responding with their advocacy and funding decisions."

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Stakeholders Respond to Hawkins' Affordable Housing Bill Progress - Quad City Herald