Senator Maria Cantwell visits Rainier Vista
Announces stimulus funding for housing in Washington State
SEATTLE—February 19, 2009—On the day that President Obama signed the American Recovery and Reinvestment Act, Senator Maria Cantwell (D-WA) visited Rainier Vista to emphasize the need for affordable housing. She spoke about how the new economic stimulus package would help bring jobs and new housing to King County.
Cantwell described the 20-year old Low-Income Housing Tax Credit Program. It is a public-private partnership that has produced more than 24,000 units of housing in King County.
"In 2008, the Washington State Housing Finance Commission allocated $138.6 million of federal tax credits to 26 competitive projects in 13 counties across the state. Eleven of those projects are ready to begin construction, but because of the credit crunch they have not found enough investors to raise all the capital they need.
"This bill directly addresses that problem. The bill will let the state housing finance agencies trade in some of their 2009 allocated low-income tax credits in exchange for a direct grant. This is money they can put to work right away so we don't lose ground on these ready-to-go projects."
As a member of the Senate Finance Committee, Cantwell has long been an advocate for the low-income tax credit program. She has worked to make the program more effective.
Tom Tierney, Seattle Housing Authority executive director, also spoke at the Cantwell briefing. He described how the Housing Authority is being affected by the economic downturn. "With the crisis in the housing market, we can't sell land to private builders, whose purchases subsidize the construction of low-income units. With the crisis in the capital markets, we can't get necessary credit.
"With too few people and institutions making money, there's reduced interest in tax credits. And, finally, there has been very little in the way of federal grant support for low-income housing in the past eight years."
Senator Maria Cantwell (left) and Seattle Housing Authority Executive Director Tom Tierney addressed the effect of stimulus funding on jobs and housing in King County
Cantwell explained how the new bill would help the economy. "A recent Oregon Housing Finance Agency study found that each on-site job created by an affordable housing development or renovation project can stimulate an additional 1.5 jobs off-site. And that every $1 invested in affordable housing generates an additional $10-$15 for the surrounding community. That is just the kind of result we need to turn this economy around."
Tierney described the benefits that he hopes will come to the Seattle Housing Authority from the American Recovery and Reinvestment Act. He estimated that the Housing Authority could get about $15 million for building projects.
"With that, we can fill the last gap in funding for Tamarack Place, an 86-unit low-income apartment building across the street next to the Boys & Girls Club. We could be under construction before the end of the year, employing—by industry estimates—more than 300 people on that project alone." Final go-ahead for the project will be decided by the Housing Authority's Board of Commissioners, probably in March.
Concluding her remarks, Sen. Cantwell emphasized the need for affordable housing. "Thanks to the Economic Recovery Act, we are able to provide some help to the families that are most at risk of being homeless and provide federal investment in affordable housing development that will also create needed economic stimulus. We need this housing and we need these jobs."