1/29/09

County exec proposes increased help for affordable housing

Snohomish County Executive Aaron Reardon has asked the County Council to consider a proposal to raise the current limits on loan guarantees for agencies that provide affordable housing.

The county currently has the ability to guarantee up to $40 million for nonprofits and public housing agencies, including Housing Hope and the Everett Housing Authority, of which nearly $35 million is already committed. Reardon has asked for a program increase to $100 million.

The loan guarantees can enhance the agencies' abilities to secure a loan at lower interest rates, without costing the county any actual dollars.

"Increasing the available limit to enhance additional loans will provide a significant boost to reaching our affordable housing goals," said Reardon. "This is a way for the county to partner with our community stakeholders and to increase their buying power at no cost to taxpayers."

The county's program helped secure loan agreements in 2007 for the purchase of 220 affordable housing units in Snohomish County by the Everett Housing Authority and the YWCA. The agreement provided for the purchase and rehabilitation of three multi-family housing complexes serving families at or below 50 percent of area median income. The properties involved are the Wear to Live apartment complex in Everett, Victorian Woods apartments in Mountlake Terrace and the Somerset Village complex in Lynnwood.

The price to acquire the properties was $28.8 million. While the county didn't provide any funding, its bond credit backing the loans saved the Everett Housing Authority and YWCA about $2.4 million in financing costs.

"Everyone should have the opportunity to live in a safe, decent, affordable home," said Ed Peterson, executive director of Housing Hope, "and this increased capacity through Snohomish County government provides another important tool toward real housing solutions for local households struggling to afford housing costs."

Councilmembers have voiced their support of affordable housing initiatives while remaining cautious about any budgetary increases. The county government has been struggling with a projected revenue shortfall of $21 million. Every department has cut at least 9 percent from their 2009 budgets and more than 100 county workers have been laid off.

The proposal to increase loan guarantees is not yet on the council's agenda.

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