How Bellingham passed a housing levy (and what it means for Everett and Snohomish County)

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1 How Bellingham passed a housing levy (and what it means for Everett and Snohomish County) Housing Consortium of Everett & Snohomish County Affordable Housing Conference June 14, 2013

2 Housing Trust Fund Project We work with state and local partners to create and protect housing trust funds

3 Victory in Bellingham 56% of voters say yes to levy!!

4 Housing Trust Funds: advancing how we fund affordable housing Securing dedicated sources of public revenue. Committing that revenue to support critical housing needs.

5 Today there are nearly 700 housing trust funds Growth of Housing Trust Funds Number Year

6 States with housing trust funds Housing Trust Funds collect a combined total of nearly $1 billion a year to support affordable housing.

7 Big Night at the Ballot Box: Nov 6, Communities Pass Local Housing Trust Fund Initiatives 65% of voters approved San Francisco CA Proposition C 56% of voters in Bellingham WA approved Proposition 1 7 Massachusetts Communities Adopt Community Preservation Act: Beverly (53%), Canton (56%), Fall River (58%), Great Barrington (62%), Salem (58%), Somerville (76%), and Somerset (52%) Houston, TX, and Rhode Island Pass Housing Bonds

8 Housing Trust Funds: Who Gets Served?

9 What it means to Leverage funds From our 2007 survey of housing trust funds: State housing trust funds $1.00 : $7.00 City housing trust funds $1.00 : $6.50 County housing trust funds $1.00 : $10.50 An example from Portland, Oregon: Hazelwood Station Apartments Fund commits $100,000 HOME funds commit $750,000 Fee deferrals equal $96,973 LI Housing Tax Credit commits $4,190,528 Private loan equals $2,800,000 Other state funds equal $236,636 Total development costs = $8,174,137

10 How Housing Trust Funds Work Legislation or Ordinance Establishes the Housing Trust Fund Administration Agency or Department Oversight Board Dedicated Revenue Sources Taxes or Fees Program Generated Revenue Interest Earned Other Revenues Programs Distribution of Funds Program Requirements Eligible Applicants Eligible Uses

11 Administration Virtually all housing trust funds are administered by staff of a public agency or department. Most housing trust funds have some kind of oversight board. They may be either decisionmaking or advisory boards. These boards are appointed and have broad representation from the affordable housing community. Administrative costs can be paid from trust fund revenues or other public funds.

12 Programs Funds are awarded either through a request for proposal process; a notification of funding availability; or direct funding of specific programs. Funds are available either as grants or loans and/or other sources of financing. The application process may be combined with other available sources of affordable housing funds, such as: HOME, CDBG, etc.

13 Program Requirements Eligible Applicants: nonprofit developers, for-profit developers, housing authorities, governments, Native American tribes, etc. Eligible Uses: acquisition, new construction, rehabilitation, predevelopment costs, housing related services, operating costs, capacity building, rental assistance, foreclosure assistance, etc. Application Requirements: income targeting to control who benefits, long term affordability, accessibility, leveraging, etc.

14 Why Dedicate Public Revenues to Affordable Housing Having sufficient housing to match local incomes is fundamental to the health of every state. The private market cannot respond to homes that require subsidies. Developing affordable housing requires long-term planning and investment. Affordable housing cannot be dependent on budget surpluses.

15 Cities and Counties Commit Dozens of Revenue Sources document recording fees real estate excise tax sale of government owned land condominium conversion fees hotel/motel taxes filing fees property sales disclosure forms building permit fees real estate transfer taxes impact fee on new commercial construction tax increment revenues land bank revenues demolition fees parking garage proceeds restaurant tax inclusionary zoning in-lieu fees property tax sales tax court settlements casino revenues

16 State Enabling Legislation Has increased the number of local housing trust funds more than any other single development in the housing trust fund movement RCW authorizes cities, counties and towns to impose an additional regular property tax levy up to fifty cents per thousand dollars of assessed value of property for up to ten consecutive years.

17 Case Study: Bellingham s winning Home Fund campaign Lay the ground work

18 Campaign timeline Recruit campaign team Develop message Execute winning strategy Lay ground work Build coalition

19 Laying the ground work for the Home Fund Levy Existing strategic plans call for this approach Housing Affordability Taskforce 10-Year Plan to End Homelessness Other compelling indicators of need Housing market data Census data showing prevalence of high housing cost burden

20 Laying the ground work for the Home Fund Levy Developing the levy program details Legal authorities Levy rate and time period Allocation across activities Looked to Seattle levy for guidance

21 Laying the ground work for the Home Fund Levy Key early decisions Geographic scope (county or city?) Ballot initiative City Council decision? Citizens initiative?

22 Housing Levy details Funding Source: 7-Year Property Tax Levy Cost: $6.89/month to average homeowner

23 Developing the message Critical to the success of the campaign Center for Community Change technical assistance WLIHA research, Seattle Levy and other locales Top level message discipline!!!!!!! Lower tier messages for coalition building Jobs and economic development Environmental

24 Housing Alliance Message Frames Everyone should have the opportunity to live in a safe, healthy affordable home It should be possible for working people* to afford housing and still have enough money for the basics like groceries, gas and child care Children deserve a chance to succeed in school and in life, which all begins with their families being able to afford a decent place to live It s better for society, the environment and families if people can afford to live close to where they work. * Can insert US military veterans, senior citizens, people with disabilities, and families

25 Delivering the message It s all about helping people

26 Delivering the message

27 Re-delivering the message Important considerations of housing Lesson levy programs learned: Bill Rumpf Pay attention WA State legal authorities to the name Practical considerations and the ballot!

28 Building a coalition Reaching out to non-housing partners Peace/justice Health care Environment Labor Private sector contractors 501 c 3 orgs CAN endorse! Get these key partners out in front Voters Elected officials

29 Recruiting the campaign team Core team every community has the talent you need Co-chairs Message and media Campaign manager Fundraising co-chairs Treasurer Volunteer coordinator Consultants Message Technical program details

30 Executing a winning strategy 50% + 1! Consult with local campaign gurus You will be under-resourced Focus on securing the base and winning persuadables Bellingham s perfect storm

31 Executing a winning strategy Doorbell, doorbell, doorbell! MESSAGE DISCIPLINE! Force opponents to use your message

32 Implementing the promise Admin and financing plan Align levy with other funds/plans Develop funding priorities

33 Report and Repeat!

34 Report and Repeat! 80% 70% Seattle Housing Ballots - % Voting Yes 74% 66% 60% 50% 58% 54% 54% 40% 30% 20% 10% 0% 1981 General 1986 Primary 1995 General 2002 Primary 2009 General

35 Important considerations for housing levy programs WA State legal authorities RCW (Can exceed regular levy lid. $.50 per $1,000 in value) RCW (counts against locality s levy lid capacity) Practical considerations Length and Amount of Levy. Program Selection number of households assisted & long-term impact

36 Important considerations for housing levy programs Practical considerations--program Elements Homeownership Assistance Incomes up to 80% of median? Political and levy implications Rental Production Leverage assumptions--meshing with other public funders Production assumptions Operations and Maintenance Connected to projects financed How to handle renewal issue. Capitalized fund. Site Acquisition Fund Can be an interim use of funds. Rental Assistance Serves higher number of people Administration politically sensitive

37 Winning a levy here Everett Snohomish County

38 Sign up for the Housing Trust Fund Project Follow e-newsletter! us on The Housing Trust Fund Project publishes a quarterly e-newsletter with updates on state and local housing trust fund campaigns from around the country. housingtrustfundproject.org

39 Michael Anderson Housing Trust Fund Project Center for Community Change 3909 SE 51 st Ave Portland, OR (503)