The King County Council recently voted 8-1 in favor of a $1 billion workforce housing initiative that would tackle the region’s housing crisis. The initiative allows the county to use debt financing to work with local developers and housing agencies.
Through these partnerships, the county will create rent-restricted housing. In addition, the King County Council’s initiative will encourage the construction and sale of homes to buyers who meet certain income requirements.
King County Executive Dow Constantine will oversee creating the housing plan. Constantine’s staff must evaluate how the plan will affect the county’s bond rating and overall financial standing.
A future implementation plan will be needed to determine how many housing units can be created with $1 billion. Additionally, the implementation plan must consider other logistics, such as which income levels would make this project financially feasible. If the plan is eventually approved, it will prioritize transit-focused projects and working with historically and currently underrepresented developers.
Previously, King County’s Regional Affordable Housing Task Force found that 124,000 low- and moderate-income households are classified as cost-burdened, which means they devote more than a third of household income to housing and utility costs. Currently, the initiative doesn’t specify which income levels will be targeted. In the future, the King County Council will decide if the project should be geared toward workers at 50%, 80%, or 120% of area median income (AMI).
Developers, the Housing Development Consortium, and the Seattle Metropolitan Chamber of Commerce back the initiative. Once Constantine’s staff develops the implementation plan, the legislation can be voted on during the first half of 2025.
This post was based on information found on Puget Sound Business Journal.
