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Affordable Housing Update: $100 million for TOD
Every year, King County loses 3,600 units of affordable housing. Thus, the County is investing $100 million in the 2019-2020 biennium to preserve, acquire, and build affordable housing units, including middle-income workforce housing, in areas located within walking distance of public transit (“transit-oriented development” or “TOD”).
$30 million for KCHA acquisitions
The Council adopted a plan on May 8, and released $30 million in funding for the King County Housing Authority to acquire and preserve three apartment properties as permanent multi-family affordable housing. These properties are located in high-opportunity communities (neighborhoods with access to good schools, transportation, and economic opportunity), or in areas expected to experience increased rents due to development pressures near a new light rail station:
- Kirkland Heights property, 180 units
- Juanita View property, 94 units
- Federal Way property, 308 units
 Kirkland Heights
$40 million for specific projects
The County is committed to a regional approach to housing and homelessness. The adopted budget contains $40 million for specific affordable housing projects that are ready to proceed now:
- $3 million for the City of Burien
- $5 million for the City of Redmond, Esterra Park
- $5 million for Bellweather and Plymouth Housing, First Hill tower on Madison Street
- $5 million for the Renton Housing Authority
- $5 million for the Filipino Community Center, Graham Street Project
- $1.5 million for North Seattle College housing development
- $2.5 million for Seattle Chinatown International District PDA to fund redevelopment of the Pacific Tower North Lot
- $4 million for Shelter America on Vashon Island
- $6.5 million for YouthCare Capitol Hill Housing Opportunity Center
- $500,000 for the City of Shoreline to fund pre-development planning at Fircrest
- $2 million for Mount Si Senior Center
 Filipino Community Center, Graham Street Project
$30 million for competitive TOD projects
In addition, the County has reserved funds for transit-oriented affordable housing projects throughout the region that are not ready today, but where needs exist. The funding prioritizes projects near existing or proposed light rail, train, or other rapid transit stations, and where cities can provide a local match.
Proposed projects will be solicited, submitted, and evaluated as part of the 2019 annual Housing Finance RFP process. Updates on timing can be found on the County’s website. DCHS anticipates distributing award notifications in December 2019, and any unallocated funds will be rolled into the 2020 RFP process.
In an effort to ensure equitable geographic diversity, funds will be allocated as follows:
- $6 million for Seattle projects
- $8 million for north County projects
- $8 million for east County projects
- $8 million for south County projects
 Modular homes are built for King County at Whitley Manufacturing
Other notable projects
- $1.3 million for implementation of recommendations made by the Regional Affordable Housing Task Force.
- At least $8 million for modular housing and micro dwelling units, which can cost less and be opened faster than traditional buildings. The modular structures are moveable, can be sited on county-owned land, and provide around-the-clock shelter.
- The SODO Bridge Housing, scheduled to open this summer, will be located in an unused parking lot on 6th Avenue, and provide transitional housing for up to 48 people in six modular dorm units. It will be operated by the Chief Seattle Club.
- The Elliott Modular Shelter, scheduled to open later this summer, is a $4.5 million pilot project that will shelter about 72 people. It will be operated by Catholic Community Services and serve those with behavioral health needs and people exiting homelessness.
- The County has also provided $3 million for 20 prototype micro dwelling units that will open in late summer 2019 (location to be determined), and will house about 25 people with behavioral health needs and those exiting homelessness.
- King County and the City of Shoreline are collaborating on a new modular permanent supportive housing project at North 198th and Aurora Ave N. that will be comprised of 80-100 units - studios and one-bedrooms. Shoreline will provide the land, and the project will receive $4.5 million from the Veterans, Seniors, and Human Services Levy.
- $300,000 for regional housing collaborations to support implementation of the Regional Affordable Housing Task Force recommendations.
- $390,000 to support the Home and Hope program, which facilitates the development of public sites into affordable housing and education centers.
These funds come from the lodging tax, the Veterans, Seniors & Human Services Levy (VSHSL), the Mental Illness Drug Dependency tax (MIDD), and document recording fees. As you can see, King County is making significant investments to address this challenge, and we appreciate your partnership in this work.
 Rendering of Elliott Modular Shelter scheduled to open this summer
Homelessness Update
Point-in-time Count
All Home released its annual point-in-time homelessness count estimate on May 2. For the first time since 2012, the count showed a decrease in those experiencing homelessness in King County. Here are some of the key preliminary findings:
- 11,199 homeless countywide (8% decrease from 2018)
- 5,971 sheltered (3% increase from 2018)
- 5,228 unsheltered (17% decrease from 2018)
Improvements were observed across all subpopulation groups experiencing homelessness, including families (7%), veterans (10%), and unaccompanied youth and young adults (28% percent). A complete report is expected to be released by the end of May.
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 Jefferson Day Center in Seattle
County homelessness projects
King County works collaboratively with local jurisdictions and organizations to address the needs of people experiencing homelessness. In recent years, the Council has provided funding or space for shelters in Kenmore, White Center, Bellevue, Federal Way, and Kirkland. These investments are helping turn the dial in the right direction.
We have also opened the three new shelters in downtown Seattle in the last 6 months:
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Harborview Hall overnight shelter with 100 beds. We also allocated $4 million in the 2019-20 budget to expand the shelter to 24/7 enhanced shelter with onsite case management by the end of this year. The site is operated by the Salvation Army.
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Jefferson Day Center, which serves as many as 200 people per day. The site provides connections to health and behavioral health services, showers and laundry facilities, case management, housing assistance, meeting spaces, and connections to other community services. The site is operated by the Salvation Army.
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West Wing 24/7 enhanced shelter, which serves 40 adults (with plans to expand to up to 100) with connections to intensive, onsite behavioral health services for those needing a higher level of support to achieve stability. The site is operated by the Downtown Emergency Service Center.
We recognize that shelter by itself is insufficient – to truly help folks move towards more permanent housing, we must also provide access to services and networks of support. To this end, voter-approved levies fund various programs that include rental assistance, affordable housing and navigation centers, youth and family homelessness services, and housing supportive services.
Information on other County emergency response efforts is available on the Department of Community and Human Services website.
 New bed frames were delivered to the Harborview Hall shelter in January.
Governance Reform for Homelessness Response
As we continue our work to address our regional homelessness crisis, we are considering a proposal for consolidating the functions of multiple local government agencies under one regional authority.
Large questions remain to be answered about the legal form of the entity, how it will be governed, what programs will be covered, and how to achieve unified scale and systemization while still providing sub-regional tailoring. Details are expected to take form over the next 3-4 months.
My colleagues and I each represent very different districts: some urban, some rural, some a mix of the two. I represent a district that is one-third Seattle and two-thirds suburban cities. As we review this proposal, we want to be sure we recognize the different manifestations and intensities of homelessness in different communities in this county.
We will be working with you and the Sound Cities Association to structure this proposed new entity. Its scope of work, geographic area of responsibility, and many other details remain open for discussion.
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Advocating in Olympia
King County pursues a robust legislative agenda on housing and homelessness in the state capitol. Working with our legislative delegation and our partners in local cities, we realized a number of significant legislative accomplishments this session.
HOUSING AND HOMELESSNESS
Sales tax credit for local governments
The Legislature adopted HB1406 to provide cities and counties new revenue authority to fund affordable or supportive housing via a .0146 percent sales tax credit. The credit is deducted from the state portion of the sales tax, resulting in no net tax increase for local residents. The revenues are authorized for 20 years, with the expectation that jurisdictions can bond against this revenue source. Cities with populations under 100,000 may also use the proceeds for rental assistance.
In incorporated areas, cities that impose a qualifying local affordable housing levy may claim the full .0146 percent credit. Otherwise, in some scenarios, the city and county are each eligible for a .0073 percent credit.
King County was pleased to join with cities, affordable housing advocates, and others to push for passage of this new revenue source.
Housing Trust Fund
The 2019-2021 Capital Budget contains $175 million for the state Housing Trust Fund (HTF). This appropriation will increase HTF’s funding by nearly 64% for this biennium and represents an historic investment in affordable housing for our state and region.
Of these funds, $95M will be awarded competitively with various set-asides for preservation, modular housing, ultra-high energy efficiency, and housing for targeted vulnerable populations; $35M for permanent supportive housing costs for people with chronic mental illness, including projects that provide behavioral health services or partner with a behavioral health provider; and $45M for other specific projects.
Preventing homelessness
King County advocates for legislation consistent with the recommendations of the Regional Affordable Housing Task Force and One Table, including legislation to prevent homelessness, address root causes, and increase the housing supply.
 King County Regional Affordable Housing Task Force
This session, we advocated for indexing certain property tax exemptions to median county income. The legislature adopted:
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SB5160 to use median county income to determine the thresholds for property tax exemptions for low-income senior citizens, individuals with disabilities, and veterans. The bill also adjusts the disability rating qualifications for disabled veterans.
Several notable measures strengthening tenant protections and preventing foreclosures were adopted, including:
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HB1440: Requires a landlord to provide a tenant at least 60 days prior written notice of an increase in rent, with certain exceptions.
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SB5600: Increases the notice time for a tenant to pay or vacate from 3 days to 14 days, requires landlords to apply payments to rent before other charges, and makes other changes related to attorney’s fees and judicial discretion.
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HB1105: Makes a variety of property tax rule changes to reduce home foreclosures, including allowing payment plans for delinquent taxes, applying payments to oldest delinquencies first, and prohibiting foreclosures for delinquencies less than $100.
Two noteworthy measures to increase housing supply were also adopted:
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SB5334: Addresses the condominium shortage by reducing legal risk and insurance costs for builders (e.g., by modifying the implied warranty for condominium construction and requiring claims to prove actual damage or safety risk).
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HB1923: Provides incentives (not mandates) to cities for increasing urban residential building capacity, including authorizing planning grants and offering exemptions from SEPA and GMA for certain non-project actions. The Legislature appropriated $5.8 million in grant funding to support this initiative.
Other Housing and Homelessness Investments
The Legislature made a number of other significant investments in housing and homelessness, including:
- $14.5 million increase for the Housing and Essential Needs program, to provide essential items and rental assistance for low-income individuals who are unable to work for at least 90 days due to a physical and/or mental incapacity
- $44.1 million for reducing homelessness, including permanent supportive housing and rental assistance
- $9 million for Seattle Chinatown International District PDA to fund redevelopment of the North Lot
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BEHAVIORAL HEALTH
Reforming and investing in the behavioral health system is a major component to tackling homelessness in our region. This session, the legislature passed major legislation and made significant investments in this area.
Policy Bills
HB1394: Establishes new types of community based residential treatment facilities, as part of an overall shift in system capacity away from state-run hospitals. New entities include:
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Intensive Behavioral Health Treatment Facility: a specialized residential treatment facility for people with behavioral health conditions that do not meet criteria for involuntary treatment but who cannot be served in other local facilities
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Mental Health Drop-in Centers pilot project: a peer-focused daytime recovery model that provides a less restrictive alternative to hospitalization for acute psychiatric needs
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Mental Health Peer Respite Centers: to serve individuals in need of voluntary, short-term non-crisis services that focus on recovery and wellness
The bill also directs assessment of hospitals to provide long-term mental health placement and streamlines adding psychiatric beds.
SB5444: Addresses excessive wait times for criminal defendants requiring competency evaluations. Key components include:
- Forensic navigators to assist individuals referred for a competency evaluation
- Expands police authority to divert an individual to treatment instead of criminal prosecution
- Guidelines and restrictions related to outpatient and non-felony competency restoration
SB5432: Continues the Legislature’s work to integrate behavioral health in our state by establishing managed care and behavioral health organizations to coordinate community behavioral health systems.
Capital Budget
- $47 million for competitive behavioral health capacity grants
- $70.9 million for community-based behavioral health projects
- $6 million for the Downtown Emergency Service Center health clinic
- $20 million toward a mixed-use psychiatric care facility in Auburn
- $33.2 million toward a UW behavioral health teaching hospital
Operating Budget
- $74M for Trueblood compliance including community programs, competency restoration beds, competency evaluators, and mental health response and crisis intervention training
- $51.3M to expand community capacity to provide behavioral health inpatient and residential treatment services (119 beds by FY2021)
- $19M for substance use disorder enhancements including two new secure detox facilities and a rate increase for existing facilities
- $8.8M for eight additional Program of Assertive Community Treatment (PACT) teams statewide, including discharge wraparound services for those leaving state psychiatric hospitals
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 Substance Use Disorder
SB5380: Makes a variety of changes to improve treatment and prevention for opioid use disorders. Provisions include new protocols for using medication assisted treatment, making overdose reversal medication more readily available, providing patients information on the risks and alternatives to opioids, and changes to electronic records and monitoring. Particularly noteworthy for local jurisdictions, the state will establish a system for distributing funds to city and county jails for medication assisted treatment for opioid use disorder.
Thank You
As you can see, local and state government are taking significant steps to address some of the root causes of homelessness and to address the housing affordability crisis. Your partnership and leadership on these issues is essential for our shared success. Thank you for all you do to support this work. I welcome your feedback on how King County can partner with you on these and other issues.
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