Seattle Housing Buzz

Washington State families facing foreclosure, seeking affordable rental housing, or hoping to buy their first home will have a greater opportunity to find housing, or keep the homes they have, because of $297,235 in housing counseling grants announced on Wednesday by the U.S. Department of Housing and Urban Development.

Solid Ground of Seattle will receive $49,402, the Spokane Neighborhood Action Program will receive $49,716, the Community Housing Resource Center of Vancouver will receive $32,236, and the Washington State Housing Finance Commission will receive $166,881 to provide counseling to help Washington families “navigate” the homebuying and homeowning processes. Last year HUD awarded $207,366 to housing counseling agencies in Washington.

“Now, more than ever, it is crucial that Americans understand how to manage their money, navigate the homebuying process, and secure their financial future.” said HUD Secretary Shaun Donovan. “This critical funding will help counseling organizations continue to assist families in making more informed choices before they buy a home and counsel families facing foreclosure.”

Housing counseling grants will assist families in becoming first-time homeowners and remaining homeowners after their purchase. HUD-approved counseling agencies not only provide homeownership counseling, but also offer financial literacy training to renters and homeless individuals and families.

The funding is part of $60 million in housing counseling grants awarded nationwide.

National and regional agencies distribute much of HUD’s housing counseling grant funding to community-based grassroots organizations that provide advice and guidance to low- and moderate-income families seeking to improve their housing conditions. In addition, these larger organizations help improve the quality of housing counseling services and enhance coordination among other counseling providers.

Counseling agencies will use $8 million to help assist senior citizens seeking reverse mortgages or Home Equity Conversion Mortgages (HECM). These agencies will provide counseling for the rapidly growing number of elderly homeowners who seek to convert equity in their homes into income that can be used to pay for home improvements, medical costs, and other living expenses.

The organizations that provide housing counseling services help people become or remain homeowners or find rental housing, and assist homeless persons in finding the transitional housing they need to move toward a permanent place to live. Grant recipients also help homebuyers and homeowners realistically evaluate their readiness for a home purchase, understand their financing and downpayment options, and navigate what can be an extremely confusing and difficult process.

In addition, grantees help combat predatory lending by helping unwary borrowers review their loan documentation, and avoid unreasonably high interest rates, inflated appraisals, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default, and even foreclosure. Likewise, foreclosure prevention counseling helps homeowners facing delinquency or default employ strategies, including expense reduction, negotiation with lenders and loan servicers, and loss mitigation, to avoid foreclosure. With foreclosures at critical levels nationwide, these services are more important than ever.

HUD awards annual grants under the housing counseling program through a competitive process. Organizations that apply for grants must be HUD-approved and are subject to biennial performance reviews to maintain their HUD-approved status.

Adapted from a HUD press release.

Tags: CHRC, Foreclosure, Housing Counseling, HUD, SNAP, Solid Ground, WSHRC

Not housing news, but effective April 1, 2008, the sales and use taxes in King County will increase to from 8.9% to 9.0%. The additional one-tenth of a percent will go towards mental health or chemical treatment services. The sales tax for communities in non-RTA areas will be 8.6%.

See King County’s bulletin on the tax (PDF file).

Tags: King County Sales Tax

Updated for 2009:
Rampathon will be held on May 16, 2009.
Applications are due by February 27th.
Click here for application info.

The Master Builders Care Foundation is currently accepting applications for its May 17th Rampathon project which builds wheelchair ramps for disabled low-income homeowners in King and Snohomish Counties. Last year more than 400 volunteers constructed 25 ramps, bringing the total to over 200 ramps since 1993.

Applications are due to the Master Builders Care Foundation by Thursday, Feburary 28th. Click here for application information.

Tags: , Rampathon

This morning the State House convened to review the condo conversion bill (HB 2014) which passed its third reading by a vote of 94 to 1. The House version of the bill:

• Extends the notification period from 90 days to 120 days.
• Authorizes a city or county government to require developers to provide relocation assistance to low-income tenants in an amount to be determined by the city or county government. Currently, the state requires a $500 relocation assistance payment to low-income tenants.
• Prohibits construction within the 120 day notification. Though, construction may begin earlier provided the developer waits at least 12 hours after the last tenant vacates.
• Authorizes cities & counties to restrict the number of conversions.

On the other side of the aisle the State Senate will hold a public hearing on Tuesday, February 5th at 1:30 PM at 1:30 PM on January 22nd. The senate’s version (SB6411):

• Extends the notification period from 90 days to 180 days.
• Provides that notice of any county or city relocation assistance programs must be expressly stated to tenants.
• Requires developers to pay relocation assistance in an amount determined by city or county ordinance.
• Provides that the amount of relocation assistance may be adjusted annually.
• Allow developers to begin limited construction/remodeling within the 180 day notification period only if all tenants have vacated or if they provide written waivers to the developer.
• Authorizes cities & counties to restrict the number of conversions.

I have been in favor of some sort of change to the current requirements - 90 days notice and $500 towards low-income tenants - which is hardly anything. The cost to move and secure a new place to live is considerably more than $500. And, if you’re not low-income, you get nothing. But, I’m a little skeptical about placing limits on conversions. I’m a firm believer that the market will self-correct and adjust accordingly. And, it has.

1. “Repartmenting”

In the past six months, the slowing condo market has taken its toll in Seattle. At least three heavily promoted conversion projects have reverted, or repartmented, back to apartments. These include the Max in Greenwood as well as the Strata and Gables in West Seattle.

2. Repurposing

Another trend that we’re now seeing in Seattle is the repurposing of condominium projects to apartments. The most recent example was Expo62 in lower Queen Anne. However, it wasn’t the only one. The Landes on First Hill and the Chloe on Capitol Hill, both originally planned as condos, will be developed at apartments.

Also, there is speculation that more are on the way such as the recent announcement that the Domaine project on Queen Anne is currently up for sale as an apartment complex.

3. Constructing

Often overlooked is the new apartment boom that’s occurring in the Emerald City. Several high-rise apartment buildings are presently under construction or in development in downtown. These include The Olivian at 8th and Olive, Kinects on Minor at Stewart, the Aspira at Stewart & Terry as well as three additional high-rises on 2nd & Virginia and 3rd & Virginia, a twin-tower development at 6th & Lenora, and the massive 500+ unit 1200 Stewart project.

A number of smaller apartment projects are under construction around the Seattle Center including The Borealis (Denny & Dexter), Taylor 28 (Taylor & Denny) and the Bernard (Warren & John).

In the north end, The Tyee is currently under construction across from Green Lake, which joins the large apartment projects planned for the old Vitamilk (The Park 71) and Albertson’s (Alexan Green Lake) lots. And, in Greenwood, the old Leilani Lanes parcel is expected to be developed as apartments as well.

Capitol Hill will also see new rental inventory with the Packard (12th & Pine), The Pearl (15th & Madison) and the Agnes Lofts (12th & Pike). Additionally, two large apartment projects are planned on Broadway at Pine Street and the old QFC lot.

4. Fundless
The mortgage meltown and the evolving housing market have combined to dry up funding for conversions. Many developers, as reported by the Daily Journal of Commerce, are finding it difficult to obtain financing for conversions. Lenders are realizing that conversions are now too risky to fund. The heyday of mass conversions that we’ve experienced between 2005 and 2007 has passed.

The heart of the bills are necessary, namely the parts that softens the stress of displacement and provides relocation assistance for tenants. Though, artificially constricting conversions, which provide first-time homeownership opportunities, on the basis of a declining rental stock is simply unnecessary. Clearly, the market has adjusted as witnessed by the more than 1,000+ new apartment homes being built. The new apartments aren’t just for the wealthy, either. A number of projects are aimed towards the affordable apartment housing market.

Tags: Apartments, Condo Conversion, Seattle, Seattle Condos

Not housing related but I came across this article that I thought was innovative. Kyoritsu Seiyaku, a Japanese animal medicine manufacturer, started offering pet-owning employees a monthly pet allowance saying “everyone has the right to own a pet, but they also have the obligation to raise the pet for its whole life.”

http://news.bbc.co.uk/2/hi/asia-pacific/7172050.stm

When I volunteered at the Seattle Animal Shelter I was astounded by the number of people who surrendered their pets because they couldn’t afford them. Wouldn’t it be great if other companies followed suit.

While most of South Lake Union’s construction news have focused on glitzy office complexes and lifestyle condominiums, several affordable housing projects are also under construction or have been proposed for the area.

On the South-West of edge of SLU, Vulcan is currently constructing the Borealis Apartments. Of the 53 units available, 50 will be priced for those making 80% the median income.

Towards the Northend of the SLU district, a low-income senior housing project and an apartment for mentally-ill homeless persons are planned. The Low Income Housing Institute is developing the 6-story Cascade Senior Housing complex near Republican and Minor. The project includes 50 apartment homes for seniors (62 and older) who earn less than $27,250 per person/year. Construction is slated to begin in March 2008 with a 2009 completion date.

Cascade Senior Housing, image courtesy of Runberg Architecture

Nearby, the Downtown Emergency Service Center is planning a 6-story, 83-unit apartment complex to serve mentally-ill homeless adults. The DESC will begin construction around mid-2008. Both projects will include a library, computer labs, exercise facilities and common areas. They will also help assuage community concerns over the loss of affordable housing options for people in need who currently call the area home.

DESC, image courtesy of SMR

The mixture of housing options, businesses and recreation will help define SLU as a true urban center.

Tags: Affordable Housing, Low Income, South Lake Union

The South Lake Union Street Car will begin test runs on Monday, October 29th. To kick-off the street car tests, a press conference event is being held at 9 AM on the 29th. The mayor, representatives from SDOT and the manufacturer (from the Czech Republic) will be on hand.

The S.L.U.T., as it’s affectionately known, will begin operations in December and will cost $1.50 per ride. The current route extends from Fred Hutch to Westlake Center. I’m told rides will be free in December to celebrate its launch.

Tags: South Lake Union. Street Car

The American Planning Association (APA) released its 10 Great Streets and 10 Great Neighborhoods list. Among among the contenders the Pike Place Market district was selected as one of the 10 Great Neighborhoods in America.

The Pike Place Market neighborhood continues to lead by example. Its compact, pedestrian-oriented design and range of housing options served as the inspiration for the city’s Downtown Livability Plan, passed in 2006. Despite ongoing financial and other challenges, its community continues to fight to sustain its viability. It serves as a reminder that it is not just a mix of buildings that define a place but, rather, the mix of people that infuses a neighborhood with a distinct voice and personality of its own.

Read the full APA review of the Pike Place Market

Tags: Pike Place Market, Seattle

The Master Builders Association of King County is hosting its second Tour of Homes this month. The tour will be held on three consecutive weekends (Friday - Sunday) from Noon to 6:00 PM between September 14th and September 30th.

The Tour of Homes spans both King and Snohomish Counties with properties (condos, single family, townhomes) ranging from $250,000 to $1,895,000. Guide books with property information and driving directions are available for free at QFC stores.

Tags: Master Builders

This Sunday (Sept 16th), the Friends of Denny Park will be hosting a neighborhood party at Denny Park from 10 AM to 6 PM. There will be live music, food, art, activities for the kids, and doggy giveaways provided by Scraps.

In addition, a grass-roots movement, Urban Dog Presence, will be on hand to promote the creation of a new dog park as part of Denny Park’s renovation project. As the SLU Gateway district transforms to a more livable neighborhood with many condo projects promoting urban dog amenities, it does become apparent the area needs a dog park.

Denny Park is Seattle’s oldest public park.

Tags: South Lake Union