Title
Affordable Homeownership Study Briefing
Recommended Action
Committee Recommendation:
The Land Use & Environment Committee recommends receiving a briefing on the Affordable Homeownership Study.
City Manager Recommendation:
Receive a briefing on the Affordable Homeownership Study and provide feedback on priorities.
Report Issue:
Whether to receive a briefing and discussion on the Affordable Homeownership Study and provide feedback on priorities.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, City Manager’s Office, 360.570.3762
Presenter(s):
Paul Knox, KnoxWorks Consulting.
Sam Green, Northwest Cooperative Development Center.
Background and Analysis:
One of the strategies in Olympia’s Housing Action Plan is to Increase the Supply of Permanently Affordable Housing for Households that make 80 percent or less of area median income.
Some identified actions relating to support for homeownership or long-term affordability include:
1.a. Donate or lease surplus or underutilized jurisdiction-owned land to developers that provide low-income housing, which the City has had success with and wishes to continue on a proactive basis.
1.b. Fund development projects that increase low-income housing through grants or loans, which the City does through a Home Fund sales tax, however those funds are currently directed at permanent supportive housing, a specific intervention for people experiencing homelessness.
1.g. Partner with low-income housing developers to expand homeownership opportunities.
1.h. Provide funding for non-profit organizations to buy income restricted units proposed to be converted to market-rate housing which the City has does through a Home Fund grant with Homes First.
1.i. Provide funding for low-income and special needs residents to purchase housing through community land trusts.
2.g. Establish a down payment assistance program, for which the City may be interested in partnering with the Washington State Finance Commission to carry out.
Consultants Paul Knox and Sam Green will provide an overview of their work to identify options and promising practices for the City to pursue to support affordable homeownership. Paul and Sam will outline strategies emerging as top priorities for impact.
Extensive stakeholder and expert interviews have been conducted to identify needs and opportunities for greatest impact. Paul and Sam will summarize the rationale for action steps identified, as well as anticipated impact and anticipated resources needed. These actions include opportunities to increase revenue, enact policy, and develop community partnerships.
Suggested timelines and phases for action steps have been included for Council’s consideration.
Discussion will be held to gather feedback on actions identified and direction on Council’s priorities. A final report and briefing will be provided to the Land Use and Environment Committee in February.
Climate Analysis:
It is anticipated that this work will have no direct impact on reducing greenhouse gas emissions. Any low to moderate income households who are able to become homeowners in the future may be eligible for other City-funded programs, such as energy efficiency upgrades and group solar projects. Any residential development funded or pursued as a result of the program study will have impacts on urban density and there may be opportunities to reduce energy use in new or existing construction at a later date.
Equity Analysis:
Many community groups (particularly Black individuals and other people of color) have historically been left out of homeownership and as a result, have had less opportunity to create individual and intergenerational wealth.
Low to moderate income households, people of color, people with disabilities, single parents, and other groups that have more difficulty accessing homeownership opportunities will benefit from increased access to affordable homeownership opportunities.
In Thurston County, the homeownership rate for white, non-Hispanic households is 69%, while the homeownership rate for people of color is 58%. The homeownership rate is lowest for Black or African American households (45%).
The Washington State Department of Commerce report Improving Homeownership Rates for Black, Indigenous, and People of Color in Washington finds that 2,866 Black, Indigenous and People of Color (BIPOC) households would need to become homeowners in Thurston County to equal the rate of white, non-Hispanic homeownership. Only 38% of single female-headed households in Thurston County own their homes.
The average American homeowner has a net worth that is approximately 40 times that of the average renter. Creating homeownership opportunities can not only have an immediate impact on housing stability, but a long-term generational impact on wealth. Decreasing housing costs for cost-burdened households provides more flexibility to increase spending on food, healthcare, and other resources.
Work in this area must ensure that groups that face particular barriers will be addressed through any programs, initiatives or funding decisions issued as a result of this housing study. For example, people who are undocumented who do not have access to a social security number or people with disabilities who are not able to meet 'sweat equity' requirements of some homeownership programs may need additional consideration to ensure they are not excluded from program benefits or funding.
Neighborhood/Community Interests (if known):
Affordable housing is of great interest to the community. In a recent community survey on fair housing, increased access to homeownership was identified as a key priority. Any work on this topic will draw a great deal of local and regional attention and public engagement.
Financial Impact:
$50,000 has been allocated to complete this housing study. Future funding may be necessary to implement strategies and actions identified by the study.
Options:
1. Receive the briefing and discuss to provide feedback regarding priorities for next steps and final briefing to Land Use & Environment Committee.
2. Receive the briefing at another time.
3. Take other action.
Attachments:
Homeownership Project Council Brief
Affordable Homeownership Project Glossary