Our Response to Proposed Housing Strategy Committee

August 6, 2014

Dear Councilmember Clark,

Thank you for proposing a resolution to create a Comprehensive Housing Strategy Advisory Committee.  We think this is a step in the right direction since we have called for the City Council to develop a comprehensive housing plan[1]. Attached you will the find the names of the many people who signed our petition.

They want a comprehensive plan using an array of tools to create housing for people at all levels of income in our city and coming to our city in future years. For it to comprehensive, any strategy must address more than just “affordable housing,” a problematic term (see below). Has the Council discussed this committee effort with the Mayor’s office or does this take the place of his committee?

We’ve also attached our Ideas for Change: Seattle’s Housing Future, a document that catalogs the many ideas for how we can improve housing availability, choice, and price in our city.

We have some specific thoughts about the resolution.

What does “affordable” mean?

First, and probably most important, we urge you to review current literature and best practice on the definition of affordable housing[2]. The history of the term will show you that the idea that housing is affordable when a household spends 30 percent of less of its income on housing is entirely arbitrary, starting as a 19th century prescription of “one weeks wages” per month for housing and then being changed in the early 1980s to 30 percent.

We need a better measure of what we mean by “affordable,” and until we come up with one, we should be careful how we use the term. That word, affordable, is a qualitative measure that is about a household or person’s relationship to price. All housing is affordable to someone.

Notwithstanding the iron clad HUD standard, what does the City of Seattle see as a prescriptive, normative standard for measuring when a person needs help with housing or other residual costs of living[3]. Seattle could lead the country in proposing a new baseline measurement of what we mean when we say, “affordable housing.[4]

Remove the assumptions about need.

The resolution should remove all quantitative assumptions about where there is “the greatest need for assistance.” We have found that data from King County and the City do not support the statement that there is scarcity in the housing market for housing priced so a household earning 60 to 80 percent of Area Median Income (AMI). On the contrary, today, the market is doing pretty well producing housing at that price

The problem appears to be a scarcity of housing for households at lower levels of income, 50, 40, 30 percent and lower of AMI[5]. By putting this assumption in the resolution you will have already created a fundamental disagreement between stakeholders and validated a gross misreading of housing need in the City. Instead, please make the current measure of affordability and identifying the greatest need,  a topic for the Committee to discuss and examine using all available data.

Many existing policies are working, especially MFTE[6]

We disagree with the implications of lines 17 through 23 that “existing policies are unlikely to provide the number of affordable units that will be required.” We oppose this language because, first, we need to decide what we think affordable is, and second, some of the programs like the Multifamily Tax Exemption (MFTE) actually can work very effectively; but this program has come under sustained attack as a giveaway. It is a giveaway: to renters who get lower rents.

Please complete a plan before imposing more rules, fees, and taxes on housing.

Lastly, we would ask that you and Councilmember O’Brien take no action on adjusting the Incentive Zoning fee, changing the code as it affects microhousing, and changing design standards in the city’s low-rise zones until the work of the Committee is done. It simply makes no sense to make decisions that remove options, or lock in specific approaches to the challenges we face accommodating growth, before the Committee has a chance to tackle housing issues. If the Council is genuine in its desire to come up with a plan, it ought to really plan, not try to change a bike tire while still riding the bike.  

Of utmost importance, also, is inclusion of builders and developers of all housing types (i.e. single-family, multifamily, microhousing, mid and highrise) and building managers and landlords on the Committee. 

Thank you for asking us to be part of this and we look forward to having representation on the committee and being an active participant in its work. We would welcome an opportunity to discuss the proposal further with you.

Sincerely,

 

Roger Valdez

 


[1] Smart Growth Seattle. Petition: More Housing Now

[2] There are at least two alternative measures for housing affordability. One is a residual income model that considers all of a households expenses taken together, then determines whether there is enough left over to cover housing costs. If a household can’t pay housing costs they may need a housing subsidy; or they might need a subsidy for day care. This measure better and more comprehensively considers the costs of living in the City. Similarly, the Center for Neighborhood Technology has developed a measure that accounts for the reduced transportation costs of living in the city.

[3] Seattle’s own Diana Pierce, a professor at the University of Washington, has been a leader in exploding the categories of how we measure poverty and affordability. She has created a self-sufficiency measure that should be part of this discussion.

[4] For a brief history of the 30 percent “rule of thumb,” see, Who Can Afford To Live in a Home?: A look at data from the 2006 American Community SurveyMary Schwartz and Ellen Wilson; US Census Bureau.

[5] Housing and Community Development Needs Assessment (Appendix A), see especially pages 70 and following.

[6] “As of the end of 2013, OH had approved MFTE applications for projects comprising 4,369 affordable for-rent units and 108 affordable for-sale units, for a total of 4,477 affordable units,” City of Seattle Multifamily Property Tax Exemption Program 2013 Status Report to City Council – April 21, 2014, page 3.

More Housing Now Petition

Seattle is a growing city. In fact, Seattle was the fastest growing major city in the nation last year. And Seattle’s prosperous job market, along with our city’s cultural and natural amenities, is expected to bring another 120,000 residents and 115,000 jobs over the next 20 years. If we do not adequately accommodate this growth, Seattle will be much less affordable than it is even today and only the most affluent will be able to live in the city.

The City of Seattle needs a housing plan to ensure that the city is encouraging enough housing to be built to accommodate current and future demand. An inadequate supply of housing in the city makes housing much more expensive and displaces working class households to suburbs – placing additional stress on our already burdened transportation infrastructure and increasing sprawl.

While we appreciate that the Seattle City Council has attempted to address affordable housing, it has focused too much of its efforts on housing policies that have produced very few affordable units and actually decrease the availability of housing and increase the cost of most new housing through per square foot fees, zoning and other regulatory restrictions. In this case, good intentions have produced unintended consequences.

Taxing new housing to pay for new housing is not working. Making housing more expensive is not making it more affordable.
In addition to the development of a citywide housing plan, we encourage the Seattle City Council to seriously consider strategies that other cities have used to success, such as:

  • Utilize publicly-owned land for the provision of affordable housing;
  • Establish a fund to acquire, or to encourage preservation of, older housing stock for affordable housing;
  • Review and consider changes to zoning and land use regulations to ensure that the City is encouraging an adequate supply of housing to accommodate future growth; and
  • Eliminate or reduce City policies that limit housing availability and add to the cost of new housing.

Rather than continuing to rely on policies that have clearly not improved Seattle’s affordability (and may have contributed to the problem), we ask that you try more effective approaches and adequately plan for the future. Read more about ideas and tools that can help in our Ideas for Change: Seattle’s Housing Future.

Signed by,

1          A-P Hurd

2          Aaron Buxbaum

3          Aaron Laing

4          Abdullazize Alhammad

5          Adam Brown

6          Adam Peterson

7          Adrien Renaud

8          Al Clark

9          Albert Clark

10       Alessandra Allen

11       Alex Ratner

12       Alex Tiburcio

13       Alexander Broner

14       Amy Towillis

15       Andrew Donaldson

16       Andrew Hunt

17       Andrew Parise

18       Angela Kahler

19       Ann Chamberlin

20       Ann Schuessler

21       Anthony Maschmedt

22       Anton Babadjanov

23       Augustus Bukowski

24       Barb Wilson

25       Barry Margolese

26       Barry Swanson

27       Bassam Jurdi

28       Beau Granger

29       Ben Frost

30       Bill Hinkle

31       Bill Nyland

32       Bob Dedon

33       Brad Easton

34       Brad Kilcup

35       Brandon Ellis

36       Brett Youngstrom

37       Brian Robinson

38       Brittany Granger

39       Bryan Loe

40       Byron Oxford

41       Cal McAllister

42       Canuche Terranella

43       Carol Houston

44       Carrie Dedon

45       Cary Lynn Johnson

46       Casey Schuchart

47       Celine Swanson

48       Chad duncan

49       Charles Spaeth

50       Chris Bajuk

51       Chris Faulkner

52       Chris Rossman

53       Christopher T Benis

54       CJ Bowles

55       Coriann Presser

56       Dan Chhan

57       Dan Duffus

58       Dan Mundle

59       Dan Wick

60       Darrin Granger

61       dave Biddle

62       David Perlmutter

63       Derrick Codomo

64       Diane Undi-Haga

65       Donald Baptiste

66       Donald Marcy

67       Doug Branson

68       Dustin Van Wyck

69       Dylan Simon

70       edgar escandar

71       erich armbruster

72       Erik Ekstrom

73       Erwin Park

74       glenn amster

75       Gloria Arteaga

76       Greg Nelson

77       Greg Smith

78       Hubert Ellwein

79       Hugh Brannon

80       Ian Strader

81       Ila Dickenson

82       Isaac Patterson

83       Jack Rader

84       Jake Seliger

85       James Coombes

86       James Kahler

87       James Parker

88       James r Johnson

89       Jamin Glenn-Harrison

90       Janine Namgung

91       Jeff Curwen

92       Jeff Henderson

93       Jen Clement

94       Jennifer Daly

95       Jennifer Hackett

96       Jerrid Anderson

97       Jill McCormick

98       Jim Sykes

99       Joanne Lee

100     John Carter Woollen

101     John D Cowan

102     John S. Teutsch

103     Jon Coombes

104     jon hudson

105     Jonathan Winslow

106     Jonathon Morrison Winters

107     Julia K-P

108     Julie Merritt

109     Kabi Gishuru

110     Kara Boden

111     Karl Krispin

112     Katie Higgins

113     Keith Hammer

114     Kelly Foster

115     Kirk Gronvold

116     Kristin Jensen

117     Ksenya Lagutina

118     Laura Sullivan

119     Lin Gale

120     Linda Pruitt

121     Lisa Long

122     LP Nitkey

123     Macenzie Hadley

124     maggie capelle

125     Malcolm E. Jolly

126     Marc Rudd

127     Marjan Foruzani

128     Mark Dibble

129     Mark Haizlip

130     Mark Jackson

131     Mary Kathleen Dedon

132     Matt Gangemi

133     Meredith Everist

134     Mia Marshall

135     Michael Ravenscroft

136     Monica Smith

137     Nancy Bainbridge Rogers

138     natalie gualy

139     Nathan Jones

140     Nicholas Draney

141     Nicholas Lee

142     Nick Etheredge

143     Nicole Hernandez

144     Norma Jean Hanson

145     P Scott Cummins

146     Paige Nilsen

147     Patrick Cobb

148     Patrick J Kassin

149     Patrick J Kassin

150     Paul LaBellarte

151     Paul Mendes

152     Paul Poirier

153     Pearl Leung

154     Peter Leahy

155     Randall Olsen

156     Randall Spaan

157     Rich Wagner, FAIA

158     Rob Harrison AIA

159     Rob Stephenson

160     Roger Valdez

161     Ron Day

162     Ryan Fitzgibbon

163     Scott Anderson

164     Scott Dolfay

165     Scott E. Shapiro

166     Scott Erickson

167     Scott Jeffries

168     Scott Matthews

169     Scott McDonald

170     Scott Ulrich

171     Scott Whaley

172     Severin Hagen-Lillevik

173     Sharon Coleman

174     Sloan Ritchie

175     steele granger

176     Steele Johnson

177     Stephen Martineau

178     Steve Gough

179     Stuart Hand

180     Susan Stasik

181     Thomas Frye, Jr. AIA

182     Thomas L Reid

183     Tina Pappas

184     Todd Smith

185     Tony Pai

186     Tony Spinrad

187     Tony Stewart

188     Tracy Ann Michel

189     Ty Bennion

190     Tyler Abbott

191     Tyler Anderson

192     Tyler Smith

193     Veronica de Saram

194     Victor J. Meyer

195     Wende Miller

196     William R. Bannecker

197     Williams Jarvis

198     Winnie Lam

199     Zach Nostdal

200     Zachary Goodwin

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