Published November 2004

Affordable housing
an important element
of economic development

During the turbulent economic times of the past few years, there has been a lot of talk by politicians and community leaders about the need for economic development — and creating an environment conducive to such development.

The need for better and more affordable education, for an improved transportation infrastructure, for streamlined governmental regulations and for affordable health care have been among the issues under discussion.

And, to be sure, these issues do need to be addressed if Washington state and Snohomish County are to lure new businesses to the area or enjoy the expansion of those already here. But I would suggest that another issue deserves equal billing on the marquee of a community’s economic health — the issue of affordable housing.

According to “Snohomish County Counts 2001,” a report by the United Way of Snohomish County, Washington has become one of the most expensive states in which to rent an apartment, ranking 14th highest of all 50 states plus the District of Columbia and Puerto Rico.

Within the state, Snohomish County is among the most pricey, the report found, requiring an hourly wage of $12.83 to afford a one-bedroom unit, $16.25 for a two-bedroom unit and $22.56 for a three-bedroom unit. For families making less than $30,000 a year, renting in the county just isn’t affordable.

The findings for affordable homeownership are bleaker still, with the Puget Sound region having the eighth most expensive housing market in the United States. In 2001, for example, a machinist making $39,000 a year faced an affordability gap of $95,800 to purchase a median-priced home at $202,300.

Today, the median price of a home or condo in the county is $248,000 — ensuring that the “American dream” remains further out of reach for many working and low-income families.

This dearth of affordable housing is, of course, most directly felt by those individuals and families seeking and unable to find stable shelter. But one should not discount its ripple effect on the community at large — including difficulty in business recruitment and job growth.

As one state official noted in the October newsletter of the Washington State Housing Finance Commission, the affordability of housing is top of mind to companies looking to relocate, as they like to have their work force located within a “reasonable distance” of their facilities.

“Jobs and housing are intrinsically linked,” Stephen Buxbaum, assistant director for housing with the state Department of Community Trade and Economic Development, said in the newsletter. “At CTED, we are extremely conscious of the fact that unless we have adequate affordable housing in the state, we can’t succeed in meeting our goal of having a sustainable, diversified economy.”

In this county, adequate affordable housing — be it fair market or government assisted — remains out of reach for many. In 2001, the Everett Housing Authority alone reported a waiting list of 1,822 households for public housing and 1,248 households for Section 8 vouchers. That same year, the Housing Authority of Snohomish County reported a waiting list of 3,040 households for the two programs.

Addressing the issue of affordable housing is, like those issues of education, transportation, government regulations and health care, no simple task. Indeed, its complexity is, in the words of one local official, “like putting out fires” — with too many hot spots and too few resources.

So, where do we begin?

For starters, by studying successful public-private ventures, such as the renovation of the Monte Cristo Hotel. Having stood vacant in downtown Everett for 20 years, the 1920s hotel was given new life in the early 1990s, thanks in part to local government support and the federal tax-credit program for low-income housing. Today, the building is an eye-catching, mixed-use facility with space for public exhibitions, offices and 69 units of affordable housing.

There also is an opportunity for municipalities to structure future land use so that it supports creation of affordable housing, such as zoning for higher densities in city centers or in the urban villages being developed within urban growth areas. A streamlined permitting process also could cut costs for developers interested in building affordable housing.

But above all, addressing the issue requires a broad range of voices, with members of government, business, nonprofit organizations and the community participating in the conversation.

For the county’s quality of life and economic vitality, it’s a conversation whose time has come.

— Kimberly Hilden, SCBJ Assistant Editor

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