Congresswoman Schrier Introduces Legislation to Encourage Affordable Housing Development and Address the Housing Crisis

ISSAQUAH, WA- Today, while hosting a roundtable discussion focused on addressing affordable housing, Congresswoman Kim Schrier, M.D. (WA-08) announced her new bill, the Lasting Home Affordability Act of 2024, which increases homeownership opportunities and will help bring Washington state's skyrocketing housing costs down. The bill aims to provide the financial tools necessary by making available low-interest construction loans for entities specializing in lasting affordability for often costly housing projects.

Throughout the Eighth District, home costs have skyrocketed, pricing thousands of residents out of the housing market. According to the Builders Industry Association of Washington, homeownership is unaffordable for 73.3% of households in Washington State, with nearly every county in the Eighth District scoring even higher.

Congresswoman Schrier has worked to address the housing crisis and lower costs for Washingtonians by:

• Introducing the Low-Income Household Water Assistance Program (LIHWAP) Establishment Act. This legislation would lower the water and wastewater utility bills for millions of Americans.
• Supporting legislation such as the Affordable Housing Credit Improvement Act, a bipartisan bill that would revise the Low-income Housing Tax Credit by increasing the per capita dollar amount of the credit and its minimum ceiling.
• Securing $1.5 million for the development of a 12-unit residential building dedicated to low-income senior Veterans in Kittitas County.
• Securing $1 million to upgrade the Granite Falls Wastewater Treatment Plant. Due to an uptick in population, the city placed a sewer moratorium in place, preventing further new housing construction. This project and funding would thus allow for the construction of new housing.
• Securing $500,000 to renovate sixteen units of affordable housing in Enumclaw.
• Securing $200,000 to upgrade and preserve the YWCA Northwest Central Washington Permanent Supportive Housing building. This investment would help YWCA continue to serve the community and provide much-needed safe and stable housing.
• Hosting roundtable discussions with local residents and industry leaders to discuss ways to address the housing crisis in Washington State.

"All across the Eighth District, I've long heard from my constituents who are concerned that rising housing costs have made it unaffordable for them to find a home," said Congresswoman Schrier. "I understand their concerns - at a time where rising prices at the gas pump, grocery store, and more are already putting pressure on Washingtonians, housing costs have only exacerbated the problem. That's why I am proud to introduce this legislation to provide a long-lasting solution and an important step towards combating the housing crisis."

Congresswoman Schrier's bill would specifically create a pilot grant program at the Department of Treasury for state housing agencies to establish an accessible, low-interest revolving loan fund for construction housing projects. Loans would be offered to housing nonprofits, like community land trusts and other entities operating a shared equity homeownership program.

Shared equity homeownership programs sell homes to homebuyers at an affordable rate according to the region's Area Median Income (AMI), using public investments and private donations to bridge the gap between the going market rate of a home and the affordable rate for a given AMI. Homeowners agree to a resale formula in order to keep homes affordable for future reselling. These projects allow homeowners to build meaningful wealth while still allowing subsequent homebuyers to afford a home. They also ensure that public investments are impactful and long-lasting and stay with the housing unit for generations. In a 2023 report, the Washington Department of Commerce and stakeholders recommended exploring this type of lasting affordability model to solve the state's housing crisis.

One of the biggest barriers is the lack of accessible funding to lower the cost of the home for prospective buyers, including the construction of the home. By offering accessible, low-interest construction loans lent out by their state, these nonprofits can access attractive financial resources with less federal regulatory burden when constructing costly housing projects.

"With the housing crisis our communities are facing, we need all the financial tools possible to keep our projects moving forward. Construction loan funding is critical to our work to increase affordable housing inventory for low-to-moderate-income households." said Thom Ness, Executive Director of Common Ground Community Housing Trust. "Below-market loans make it possible for non-profit developers, like Common Ground, to borrow funds at a lower cost, thus reducing the costs of servicing the loans and making it easier to provide affordable housing. Common Ground Community Housing Trust needs funds like this to help address this housing crisis in Wenatchee, WA"

"Access to affordable funds for development and construction of permanently affordable homes that are environmentally sustainable and designed for durability is a critical missing piece here in Snohomish County, where we are constantly competing with multi-family developers. Homes and Hope CLT has more than 45 homes in our pipeline, but can only bring a few homes to construction at a time, due to the steep competition for construction funds," said Kim Toskey, CEO, Homes and Hope Community Land Trust. "A key component to solving our statewide and national housing shortage is to facilitate access to below-market loans for community-based organizations that will produce below-market homes"

"As our state and our nation rise to the challenge of addressing middle-income housing solutions, lower-cost access to construction loan financing for affordable homeownership is a critical tool. Community land trusts throughout Washington State - serving urban and rural communities -- face accelerating construction costs," said Kathleen Hosfeld, CEO/Executive Director, Homestead Community Land Trust, King County, WA. "This solution provides a meaningful resource to increase production of desperately needed homes. We're grateful to Rep. Schrier for listening and responding quickly to a need that affects affordable homeownership on both sides of the Cascades."

"The United States is experiencing a historic low supply of entry-level affordable homes in every state, which is driving up costs. We are thrilled to see the introduction of the Lasting Home Affordability Act of 2024," said Chris Vincent, VP of Government Relations and Advocacy at Habitat for Humanity International. "This bill would take practical steps to increase the supply of affordable homes for purchase, putting homeownership within reach for more households."

"We at Habitat for Humanity Seattle-King & Kittitas Counites know what it takes to build permanently affordable homeownership opportunities for families," said Brett D'Antonio, CEO, Habitat for Humanity Seattle-King & Kittitas Counties. "Programs like this, bridging the gap between public and private funding and home sales to families, is exactly what is needed to scale up and build more houses for more families. This is an important step towards fulfilling the vision of Habitat for Humanity - to build a world where everyone has a safe, decent, and affordable place to call home."

"With high home prices and interest rates, we need to open pathways for more Washingtonians to buy homes," said Steve Walker, Executive Director of the Housing Finance Commission. "Community land trusts and self-helping housing programs are a critical part of the affordable homeownership spectrum."

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