Seattle's Housing Levy invests in solutions to prevent and end homelessness

In 2002, Seattle voters approved the city's fourth property tax levy to create housing affordable for low- income Seattle residents, including people experiencing homelessness. The $86 million Housing Levy, which expires in 2009, is invested to create and preserve rental housing - including for people who are homeless - assist first-time homebuyers, and provide emergency rental assistance to prevent homelessness.

Target Populations. The largest element of the Housing Levy program which makes $8 million available annually is capital funding to support development of rental housing affordable to families with children, people with disabilities, the elderly, and homeless families and individuals. The program funds rehabilitation, new construction and redevelopment of all types of rental housing. The Levy will fund up to 40% of total development cost. Housing is dispersed across the city.

Target Income Levels. At least 59% of resources must support housing that serves people with incomes at or below 30% of area median income ($16,350 for a 1- person household). Up to 10% of funding is targeted to households up to 60% of median income. The balance of funds are assigned to households up to 50% of median income. Housing serves eligible residents for a minimum of 50 years.

Levy Policies. Housing Levy programs are guided by policies in the City's Administrative and Financial (A&F) Plan which is adopted by the City Council every two years. The plan is prepared by the Seattle Office of Housing, with the Seattle Department of Human Services and stakeholders for each of the five Levy program areas.

Award Process. Levy funds are awarded through a competitive process. Rental Preservation and Production funds, Neighborhood Housing Opportunity Program (NHOP), and Operating and Maintenance Funds are released in a combined funding round twice each year, along with federal housing funds administered by the Office of Housing. Applicants are typically non-profit housing developers who work in partnership with agencies that provide supportive services. Organizations that receive City funds commit to provide below-market-rate housing to low-income households for a minimum of 50 years.

The Levy's Rental Assistance funds are administered by the Human Services Department, which competitively selects nonprofit service providers for the resources.

Oversight Committee. A Housing Levy Oversight Committee is appointed by the Mayor and City Council to monitor the progress of Levy programs. The Oversight Committee reports to the Mayor and Council on program accomplishments and makes recommendations for policy changes in the Administrative and Financial Plan. The 2007 Committee included: Paul Lambros, Chair, Plymouth Housing Group; Humberto Alvarez, Solid Ground; Bill Block, Committee to End Homelessness in King County; Emily Chen, National Equity Fund; Eric Franklin, Northwest Carpenters; Harris Hoffman, Lorig Associates; Kenny Pittman, Seattle Office of Policy and Management; Dwight Prevo, Wells Fargo Bank; Traci Ratzliff, Seattle City Council Central Staff; Josephine Tamayo Murray, Catholic Community Services; Debbie Thiele, King County Housing Authority; Steve Walker, Washington State Housing Finance Commission; and Dianne Wasson, HomeStreet Bank.

Speaking about the Housing Levy, Seattle Mayor Greg Nickels said "The Housing Levy is making a real difference in the lives of thousands of people in our city. These investments are helping us break the cycle of homelessness for people living on our streets and creating new opportunities for working families in Seattle to find places they can afford."

Individuals who have experienced homelessness benefit from stable housing and improved health and well-being.

Individuals at risk of homelessness benefit from a source of stabilization resources and long-term followup that helps prevent homelessness.

Seattle benefits from neighborhoods with quality housing and stable residents, as well as the savings in health care and public safety costs from the new housing stability of consumers.

Housing and service partners to the Levy's initiatives benefit from having data that demonstrate the cost effectiveness of permanent supported housing as partners pursue more resources to create additional permanent supported housing opportunities.

Seattle and King County benefit from an improved quality of life for all citizens and reduced economic impact on costly community infrastructure, including health care, treatment, and law enforcement.

During its first five years, the Seattle Housing Levy has achieved these results, each of which exceeds its original 2003-2007 goal:

Rental Production and Preservation:
Goal: 1,087 units
Actual: 1,387 units

Neighborhood Housing Opportunity Program:
Goal: 140 units
Actual: 262 units

Operating & Maintenance:
Goal: 110 units
Actual: 181 units

Homebuyer Assistance:
Goal: 136 homes
Actual: 162 homes

Rental Assistance/Homeless Prevention:
Goal: 2,500 households
Actual: 3,592 households

Leveraging Other investment
Each dollar of Seattle rental housing funds is matched with over $3.60 of other public and private funding. In total, over $371 million was invested in low-income housing development.

Ending Homelessness
A total of 994 apartments - with rent subsidies and services - have been set aside for homeless individuals and families. Emergency help supported more than 500 households per year at risk of losing their home.

Housing Levy funding awards in 2007 also demonstrate City support of the 10 Year Plan to End Homelessness in King County. Of the total 417 housing units, 295 will be setaside for people who have been homeless, including 257 units for homeless individuals and 38 units for homeless families. This housing component also received awards of Levy Operating and Maintenance Program funds or project-based Section 8 vouchers to serve very low-income homeless residents.

Further, in one year of operation, two of Seattle's Housing First projects for persons who were chronically homeless saw a combined cost avoidance of over $4 million in crisis and emergency services, such as visits to the emergency room and 911 calls.

Preventing Homelessness
Levy Rental Assistance funding supports two homeless prevention programs administered by the Seattle Human Services Department.

Emergency Rent Assistance Program
The program provides short-term, one-time financial help up to $750 to renters with incomes up to 50% of median facing temporary hardship. The Human Services Department contracts with United Way of Seattle-King County to administer the Emergency Rent Assistance Program. Nine community-based nonprofit organizations distribute the rent assistance and conduct follow-up contacts after six months to determine success in meeting the goal of long-term housing stability. $300,000 is available annually.

The program's goal is to serve 400 households per year. During 2007, the Emergency Rent Assistance Program served 602 households (a total of 1,367 individuals) with averaging approximately $481 per household. Of the total households served, 320 were families with a total of 625 children (46%) under 18 years old.

Kinds of assistance provided to households served in 2007:
- 400 (66%) were assisted to remain in their current home
- 27 (4%) were assisted to move from high rent to more affordable housing
- 35 (5%) were assisted to move into permanent housing following housing loss (causes such as unavoidable eviction, unsafe/unsanitary conditions)
- 140 (24%) were assisted to move from homelessness into permanent housing

Emergency assistance has effectively helped households maintain stable housing. Of 682 households that received emergency rent assistance in one year, 72% or 495 households were still housed six months after receiving services.

Rental Stabilization Program
The program provides rent subsidies for 6 - 18 months, with case management services for families and individuals with incomes up to 50% of median who are moving out of homelessness, or are in immediate danger of eviction or at risk of homelessness.

A follow-up assessment is done with each household six months after rent subsidies end. The Human Services Department contracts with the Salvation Army to administer the program.

In 2007, the program assisted 48 households (34 new and 14 carried over from 2006). Of these, 29 homeless households accessed move-in assistance and rent subsidies, and 19 households received rental assistance to maintain their housing and avoid eviction. All households received case management services. As of December 2007, 67% had maintained housing stability at the six-month mark.

A Citizens' Advisory Committee co-chaired by former Seattle Mayors Norm Rice and Charles Royer made recommendations to Seattle Mayor Greg Nickels about the current Housing Levy.

Voters supported similar ballot measures in 1981, 1986 and 1995.

Each past Levy has outperformed its goals and City- funded projects have received funding from other sources, leveraging about $4 for every dollar of Levy funds.

Learn more about the Seattle Housing Levy .

Learn more about 2007 results from the Housing Levy, a report from which much of this background information was developed.

Learn more about the Seattle- King County 10- Year Plan to end homelessness, "A Roof over Every Bed in King County" unveiled in March 2005 and other related initiatives.

Learn more about the Seattle-King County United Way and recent investment by The Gates Foundation in the goal of ending chronic homelessness.

5 in 5, A Week of Innovations, continues tomorrow with a Special Issue focused on . . . In Atlanta: Identifying Resources through (Creative) Solutions to End Homelessness - Take one Development Authority, add a Car Rental Tax and a Parking Garage, put in a Tax District and more to achieve results . . .

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