December 13, 2021
Dear Friends and Neighbors,
As you know, many areas in North Central Washington and our entire state have been experiencing affordable housing challenges. Having stable housing is so fundamental to success in other areas, including our working careers and raising families. Washington state has an increasing number of programs focused on homelessness and very low-income housing, but very few on “workforce” housing. These are the housing programs that support people in our communities who earn 60 to 120 percent of the area’s average income, people who help provide essential services to our communities. Many of these individuals and families, unfortunately, are unable to afford to live in the communities where they work. This is particularly true for the communities of Leavenworth, Chelan, and the Methow Valley, as well as larger communities, including in the Wenatchee Valley.
 Average home prices have continued to increase throughout our region, including in Wenatchee. People working in the Wenatchee Valley often travel in from other towns.
Working together to find housing solutions
I am proud to be partnering with Leavenworth Mayor Carl Florea on a bill to secure a reliable revenue source to address the city and county workforce housing challenges. My Senate Bill 5513 would provide the city of Leavenworth and other municipalities in Chelan County flexibility to use up to one percent of their existing lodging tax revenues on “workforce” housing projects to assist those earning 60 percent to 120 percent of the area’s median income. The lodging tax, also known as the “hotel-motel tax,” was first implemented by cities and counties years ago and varies from a 3-to-5 percent surcharge on overnight stays. Permitted uses of these tax revenues include tourism marketing, special event promotion, or operations/capital expenditures of tourism-related facilities (RCW 67.28.1815) and limited uses for very low-income housing. My bill would allow Chelan County and its cities to dedicate up to 1 percent of their existing lodging tax revenues to "workforce" housing for the next 10 years, if approved by commissioners or a city council.
 “Willkommen” translates to “welcome,” which is fitting because Leavenworth has always been a welcoming community for tourists, but with tourists now purchasing second homes and converting properties to vacation rentals, those who work in Leavenworth are increasingly struggling to live there. This dynamic is creating challenges to preserve the city’s sense of community.
Mayor Florea reached out to me with sincere and deep concerns about Leavenworth’s ongoing affordable housing struggles, especially the city’s “workforce” housing issues. I share those same concerns. We developed a bill idea that does not create a new tax, but rather provides the city with additional flexibility for use of its existing tax revenues. The city of Leavenworth is in a unique situation because, in many ways, it isn’t struggling to attract tourists. The real struggle now is that people providing essential services in the city cannot afford to live there and any available houses are quickly being purchased as second homes or short-term rentals. With every passing month, the Leavenworth community is essentially losing its sense of community. That’s heartbreaking. The situation is similar for the cities of Chelan or Wenatchee, as two examples, and other areas within Chelan County.
 My Senate Bill 5513 would provide the city of Leavenworth and other municipalities in Chelan County flexibility to use up to 1 percent of their existing lodging tax revenues on “workforce” housing projects to assist those earning 60 percent to 120 percent of the area’s median income. Leavenworth is in a unique situation because it isn’t struggling to attract tourists. The real struggle now is that people providing essential services in Leavenworth cannot actually afford to live there.
 Rising home prices are common and very challenging in tourism communities like Leavenworth and Chelan. Home prices in Leavenworth were already high and continue to climb higher.
Partnering again with Leavenworth on legislation
Working together on finding solutions for workforce housing won’t be the first time the city of Leavenworth and I have partnered on legislation. You may recall that back in 2018, the Legislature approved and the governor signed my Senate Bill 6055, which provided the city expanded ways to dispose of brush and yard waste following boundary changes to the state’s apple maggot quarantine area. I am hopeful the city and I will have similar success with my Senate Bill 5513.
 In 2018, former Leavenworth Mayor Cheri Farivar and city officials traveled to Olympia for the signing of Senate Bill 6055, which provided the city with expanded ways to dispose of brush and yard waste.
What supporters are saying about SB 5513
"I am excited to work with Sen. Hawkins to enact this bill that would allow us to begin addressing our critical shortage of housing for all segments of our workforce. One of the prime motivators of my decision to run for mayor was a desire to provide housing that will keep us a sustainable, working community and not just a resort. Not only is this critical for the character of our residential community, but it is also critical for the long-term sustainability of our tourism economy. This goal can only be reached if we can bring options, and dollars, to the table that will enable us to develop housing outside the speculative market. I can’t thank Sen. Hawkins enough for understanding this and wanting to aid us in this way.”
- Leavenworth Mayor Carl Florea
“In Chelan County, where tourism plays a major role in an overall healthy economy, our businesses are having trouble attracting workers when housing costs continue to climb. We support a bill that allows some flexibility in lodging tax revenues. If Senate Bill 5513 is passed, Chelan County and our tourist-dependent cities would be able to provide more workforce housing that supports tourism and, in the end, builds upon our economy.”
- Chelan County Commissioner Kevin Overbay
“Chelan Valley Housing Trust is very thankful Senator Hawkins is introducing legislation that presents an effective and creative solution to address our local housing issues. The proposed legislation would provide important sustainable revenue to develop housing attainable to local wage earners.”
Chelan’s challenges with workforce housing
 Communities near Lake Chelan also struggle with having adequate options to house their workforce. Tourism communities seem to be affected the most.
 Similar to other areas in North Central Washington and throughout the state, housing prices in Chelan continue to increase, making home ownership very difficult for the local workforce.
Listen to my recent local radio interviews
Throughout the legislative session, I call our local radio stations weekly to participate in live interviews about legislative issues. Recently, I participated in a full-hour interview on KPQ’s “The Agenda” with Dave Bernstein. We discussed a variety of topics, including how redistricting will impact the 12th District, my school district consolidation bill, and the 2022 legislative session. Click on this link to listen to my Full KPQ Interview. If you have any questions, please contact me anytime.
Thank you for the opportunity to serve as your 12th District state senator.
Sincerely,
 Brad Hawkins
State Senator Brad Hawkins
12th Legislative District
Website: senatorbradhawkins.org
107 Newhouse Building - P.O. Box 40412 | Olympia, WA 98504-0412
(360) 786-7622 or Toll-free: (800) 562-6000
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