Workforce Housing Summit

January 3, 2019Alderbrook Resort & Spa

Union, Mason County, Washington

NWCUF’s Financial Reality Fair 2.0

Shelton High School – January 29, 2019

At the end of the simulation, students are prompted to put money into their savings account at the credit union and make a payment on their debt.Each student will receive a ‘budget breakdown’, take a quiz and share the results with their teacher to receive credit for the activity.

Affordable Housing

Workforce Development

Small Business Success

Economic Empowerment

Affordable Workforce Housing

Affordability

• HUD sets the following standard: housing is affordable when families spend 30% or less of their monthly income on housing.

• Households are cost burdened when they spend more than 30% of their income on housing.

• Households are severely cost burdened when they spend more than 50% of their income on housing.

NWCUF uses Area Median Income (AMI) to set guiderails on our program priorities.

Area Median Income

Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

LESS THAN $20,000 $20,000 TO $34,999 $35,000 TO $49,999 $50,000 TO $74,999 $75,000 OR MORE

11.40%

9.20%

5.80%3.90%

1.70%

MASON COUNTY HOUSING AFFORDABILITY – ALL HOUSEHOLDS

Under 20% 20% ‐ 29% 30% or more

MASON COUNTY HOUSING AFFORDABILITY – ALL HOUSEHOLDS

Home Value & Ownership Cost- Mason County

Source: Zillow 2018

88%Median 

Home Value &  Home Ownership

Costs

Past 20 Years

Mason County – Rentals

Source: Zillow 2018

20%

Rents

7%Hourly Wages

Zero Affordable Housing RentalsZero Low Income Apartments

• Allyn• Grapeview• Hoodsport*• Skokomish• Union

* 100% housing burdened* 28% of residents rent

Source: HUD2012 to 2017 

Goals for Today

Outcomes

• Summary Document• Speaker presentations• Spark Cards• Feedback from Break out sessions

• Summary available 45-60 days following summit

• MasonWebTV• iFiberOne New Radio – 1:1 Interviews with All Speakers

• Daybreak – Tuesday & Thursdays, 6:45 a.m.• Continuing Conversations

Missing Millions of Homes

Congressman Denny Heck

Missing Millions of Homes

Congressman Denny Heck(video saved in folder)

Housing Underproduction in Washington State and Housing Affordability in Mason County

Mike Kingsella, Executive DirectorUp for Growth National Coalition

Housing Underproduction in Washington StateEconomic and Fiscal Impacts of Enabling Compact Livable Communities to

Address Washington’s Housing Affordability Challenge

Source: Build Zoom

Expensive

Expansive

Legacy

Source: St. Louis Federal Reserve, GEOFRED

Source: U.S. Census Bureau American Community Survey 5‐Year Data (2006‐2010 & 2013‐2017)

46%

51%

43%

44%

45%

46%

47%

48%

49%

50%

51%

52%

2010 2017

Cost Burdening Increased for Rentersshare of households paying > 30% of inocme on housing

Monthly Rent as Percent of Income

LA

NY

San Jose

SeattleSan Francisco

Las Vegas

Portland

R² = 0.51

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

0.50%

$750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250

Shar

e po

pula

tion

that

is h

omel

ess,

Jan

. 201

7

Median Gross Rent, 2016

Source: ECONorthwest calculated using data from the U.S. Department of Housing and Urban Development, Point‐In‐Time count and the U.S. Census Bureau ACS

Seattle Metro has 4th Highest Rate of Homelessness 

1.88

1.00

0.00

0.50

1.00

1.50

2.00

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Million pe

r Yea

r

U.S. Household Formation vs. Housing Starts (in millions)

Source: U.S. Census Bureau

Since 1960 ‐ 1.11 Units per Household

2000 to 2016 ‐ 0.98 Units per Household  

2010 to 2016 ‐ 0.72 Units per Household  

Household Formation

HousingStarts

Housing Starts per Household FormedBy County, 2010 to 2016

Sources: U.S. Census, Bureau of Economic Analysis, Moody’s Analytics 

Source: Washington Office of Financial Management Data on Housing Units and Population 2010 and 2016

1.20

0.54

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2000‐2016 2010‐2016

Housing Units Built Compared to New Households Formed

Source: ECONorthwest calculation, U.S. Census

0.47

0.77

0.84

Price Elasticity of Supply

(% change in price)

(% change in supply)

Source: ECONorthwest Calculations, Seattle Times

Scenarios Distributed as 3 Construction Types:Single Family

5 Units per Acre

Medium DensityUp to 5 stories

120 Units per Acre

TowerHigh Rise 6+ stories240 Units per Acre

More of the Same Smart Growth

Assumes same growth pattern will continue

Targets underutilized transit corridors, and high opportunity areas 

with low VMT Source: ECONorthwest Calculations

WA State Cumulative Gross State Product

$25 billion

Source: ECONorthwest Calculations, REMI

Source: ECONorthwest Calculations, REMI

WA State Jobs Supported Through Smart Growth

Marginal Units Generate Positive Fiscal Revenue

Marginal Units Generate Negative Fiscal Revenue

Source: ECONorthwest Calculations, REMI

www.upforgrowth.org

@Up4Growth

Policy Framework for Missing Middle Problems & Solutions

Emily GrossmanPolicy and Strategy Advisory

Washington State Department of Commerce

Missing Middle   Policy Framework

Emily Grossman, Community Services and Housing DivisionEmily.Grossman@commerce.wa.gov

Topics:• What is the Missing 

Middle?• What is the Problem?• State Policy 

Considerations• Local Problems and 

Solutions

39

Affordability

• Mason County median sales price for a single‐family home $240,000 

• Mason County median family income $64,600• Mason County median household income $25,661• Mason County HAI: 135• Mason County First Time HAI: 38• Mason County single‐family inventory:

2012: 22,425 units2017: 23,138 units

• Mason County multifamily housing inventory: 2012: 7,662 units2017: 7,681 units

Economics 101

“When the market leads to an inefficient allocation of resources” • Rapid Economic and Population Growth• Competition for Builders• Rising Costs of Land and Construction Labor

Response: Help the market deliver.

40

What’s Missing?

What’s the Problem?

Land Use• Regulatory Barriers in land‐use and zoning• Lack of rural market incentives• Developable land within UGA• Community OppositionCost/Finance• Cost of construction relative to rents/purchase 

price• Financial barriers to entry/down payment• Lack of construction financing for low and 

middle‐income projectsInfrastructure• Local streets and sidewalks• Sewer and Water system connections/upgrades

Tools for Missing Middle Housing

• Affordable Housing Incentive Programs

• Subsidies and Tax Credits, Land Trusts

• Planned Actions• Infrastructure 

Assistance• Communication

“Building affordable housing is truly a public‐private partnership and the private only takes you so far."

44

Percent of Area Median Income (AMI)

No income 50% 100%

HUDWashington Housing Trust FundLocal Governments and Housing Authorities

Housing Finance Commission

Private Housing Market

Insurance/IRS Mortgage Deduction

Mason County

Washington’s Future

Affordable Housing Advisory Boardwww.commerce.wa.gov/ahab

Questions?Emily Grossman

Community Services and Housing Division

emily.grossman@commerce.wa.gov

Agenda

10:00 – 10:15 BREAK

10:15 – 11:45 Morning Breakout Sessions:

Local Opportunities – Mt. Washington Room A

Data Opportunities – Mt. Washington Room B,C