inslee ahab letter 01172017

SMART GROWTH GROWTH SEATTLE Director Roger Valdez mart Growth Seattle O Box 2912 eattle, WA 98111-2912 06.427.7707 www.smartgrowthseattle.org oger@smartgrowthseattle.org January 17, 2017 Dear Governor Inslee, We very much appreciate the letter you sent to the Affordable Housing Advisory Board (AHAB) yesterday. We very much agree that we need, “a more thorough analysis of the root causes affecting the lack of affordable housing in our state.” Part of the answer is simple: we don’t lack affordable housing we lack housing, period. Scarcity because production isn’t keeping up with demand puts market rate and subsidized housing out of reach for many households. I’ve attached three documents that I recommend that staff absorb. Each of them points out, as does your letter, to issues related to “zoning and planning, permitting, development, and financing and construction processes” that are costly and raise barriers for housing production for both market rate and subsidized housing. California has found its problem is lack of supply in the face of rising demand, overregulation, and extraordinary costs associated with building housing that uses state and local subsidies and tax credits (see story on Governor Brown). We need strong and appropriately funded legislation this session to, • Understand and quantify the self-imposed regulatory burdens that increase the costs of housing production; • Commission an objective study and comparison of the costs to produce market rate housing with the costs to produce subsidized housing; and • Get a recommendation about how these costs can be reduced for all housing production so that people who need housing and tax payers can benefit from the savings. We are facing limits to our abilities as a state to fully fund education and a host of other needs. Changes to federal tax laws may result in fewer tax credits. Now more than ever Washington must find every possible tool to reduce and limit the costs of producing housing, not simply seek more and more additional funding for expensive subsidized housing. We strongly urge you to support resources for this effort and that it be non- partisan and driven by data and the basic premise that we face housing scarcity because we aren’t producing enough housing of all types, everywhere in our state for all levels of income. Sincerely, Roger Valdez Director

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SMARTGROWTHGROWTHSEATTLEDirectorRogerValdezSmartGrowthSeattlePOBox2912Seattle,WA98111-2912206.427.7707www.smartgrowthseattle.orgroger@smartgrowthseattle.org

January17,2017

DearGovernorInslee,WeverymuchappreciatetheletteryousenttotheAffordableHousingAdvisoryBoard(AHAB)yesterday.Weverymuchagreethatweneed,“amorethoroughanalysisoftherootcausesaffectingthelackofaffordablehousinginourstate.”Partoftheanswerissimple:wedon’tlackaffordablehousingwelackhousing,period.Scarcitybecauseproductionisn’tkeepingupwithdemandputsmarketrateandsubsidizedhousingoutofreachformanyhouseholds.I’veattachedthreedocumentsthatIrecommendthatstaffabsorb.Eachofthempointsout,asdoesyourletter,toissuesrelatedto“zoningandplanning,permitting,development,andfinancingandconstructionprocesses”thatarecostlyandraisebarriersforhousingproductionforbothmarketrateandsubsidizedhousing.Californiahasfounditsproblemislackofsupplyinthefaceofrisingdemand,overregulation,andextraordinarycostsassociatedwithbuildinghousingthatusesstateandlocalsubsidiesandtaxcredits(seestoryonGovernorBrown).Weneedstrongandappropriatelyfundedlegislationthissessionto,

• Understandandquantifytheself-imposedregulatoryburdensthatincreasethecostsofhousingproduction;

• Commissionanobjectivestudyandcomparisonofthecoststoproducemarketratehousingwiththecoststoproducesubsidizedhousing;and

• Getarecommendationabouthowthesecostscanbereducedforallhousingproductionsothatpeoplewhoneedhousingandtaxpayerscanbenefitfromthesavings.

Wearefacinglimitstoourabilitiesasastatetofullyfundeducationandahostofotherneeds.Changestofederaltaxlawsmayresultinfewertaxcredits.NowmorethaneverWashingtonmustfindeverypossibletooltoreduceandlimitthecostsofproducinghousing,notsimplyseekmoreandmoreadditionalfundingforexpensivesubsidizedhousing.Westronglyurgeyoutosupportresourcesforthiseffortandthatitbenon-partisananddrivenbydataandthebasicpremisethatwefacehousingscarcitybecausewearen’tproducingenoughhousingofalltypes,everywhereinourstateforalllevelsofincome.Sincerely,

RogerValdezDirector

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