Why Yes on Proposition 1?
Stable housing is the first step for families and individuals to build a future. Tacoma is starting to become unaffordable for families and individuals who work here:
- Housing costs are up 35% in the last four years compared to just a 7.4% increase in incomes.
- Only 55% of Tacoma residents own their own homes, well below the national average.
- 35% of Tacoma residents pay more than 35% of their income for housing – that doesn’t leave enough to pay for basic needs like food, quality childcare, and health insurance.
It’s time to start creating affordable housing options for our working families, elderly, handicapped, and first-time homebuyers. This important measure will appear on the November 8, 2005 ballot.
How will Proposition 1 work?
Homeowners in Tacoma would pay 18 cents per assessed $1,000 of valuation for the next 6 years. For the average homeowner, that would be about $30 per year, or just $2.50 a month. With the $15 million raised, 740 housing units will be built or rehabilitated for owners and renters.
While providing needed affordable housing options we’re also investing in our future. F or every $1 that’s collected, the levy will generate $4 in matching funds from state, federal and private sources . Right now, too many of those dollars pass us by. This money will be used to hire local architects, engineers, and building contractors to design and build the housing. The investment of these funds in the local housing market will spin-off jobs and generate new sales taxes that will go back into the local economy.
Who supports Proposition 1
- United Way of Pierce County
- Master Builders Association of Pierce County
- Affordable Housing Consortium
- Tucci & Sons
- Key Bank
- Washington Mutual
- Boys and Girls Club of Puget Sound
- A.F. Evans
Contact Us
Sandy Burgess, Chair, Campaign Committee, Homes Now, (253) 627-4675
Paid for by Homes Now, P.O. Box 1573, Tacoma, WA 98401-1573
Housing Trust Fund Frequently Asked Questions (FAQs)
1. Why should I help someone else, what’s in it for me?
- Affordable housing makes families more stable and neighborhoods safer
- Improved neighborhoods protect your investment in your home
- It reduces crime and turns eyesores and empty lots into nice homes
- It makes Tacoma more livable for your children, grandchildren, and you
- It makes Tacoma more affordable for seniors and the disabled, helping our elders continue living in our neighborhoods
- It adds jobs, attracts other investors, and boosts the economy
2. Who qualifies for this type of assistance? How much do they make and what kind of jobs do they have?
The bulk of the levy funds ($1,950,000 per year) can only be used to assist households with an income up to 50% of the median income. In Tacoma, that includes many entry level positions such as teachers, nurses, child care workers, waiters and waitresses, mechanics and laborers, those earning $28,000/yr. or less for a family of three. At times, even households with more than one income still make less than 50% of the median income. A portion of the funding can be used to support homeowners and renters earning up to 80% of the median income, though the typical homeowner assisted earns 65% or less of the median income level, or about $36,000 per year for a family of three. The funds go to cut the cost of building homes; they are not given as hand outs.
3. Who manages this housing to make sure there is not an adverse impact on the neighborhood?
Most affordable housing providers manage their own rental units. Tacoma’s nonprofits have a reputation of providing high quality oversight of their rental units and adhere to the Crime Free Multi-Housing standards. The projects are managed locally by developers who care a great deal about the neighborhoods in which they build. Some of the funds will go to homeownership. Homeowners typically take great pride in their homes, especially when they are new or refurbished. In most cases, when the house is sold, the non-profit finds another eligible buyer making sure more families can benefit.
4. Who are the housing providers in the community/how do they use the funding?
There are many experienced housing providers in Tacoma including: Metropolitan Development Council, Martin Luther King Housing Development Association, Tacoma Housing Authority, Catholic Community Services, Habitat For Humanity, Homeownership Center of Tacoma, Intercommunity Housing, Catapult Community Developers and the Tacoma Community Redevelopment Authority. Most are non-profit but for-profit developers may also apply for funding. The for-profits have the same high standards and commitment to quality as the non-profits.
These organizations and others must apply to the City for the funding. This is a competitive process, and only feasible projects that benefit the community are funded. The funds are typically awarded as a low interest loan to the housing development organization, allowing them to keep the rents or home prices low because they are not repaying this funding at market/bank rates.
5. How do people qualify for a home-what’s the process used to give out loans for homeownership?
Only a portion of the funds will be used for homeownership opportunities. To qualify for a home purchase loan, applicants must first be under the maximum income allowable. They must also have credit history that enables them to qualify for the loan. Some organizations such as Habitat require volunteer work. Community members select applicants based on strict criteria. Often, the housing development organization works with people before and after the loan to help them reach financial independence.
