MacArthur Housing Money a Tiny Little Drop in the Pond

Our first thought on reading that the John D. and Catherine T. MacArthur Foundation had granted $1 million to Seattle and Washington to preserve affordable house was of the first Austin Powers movie, where Dr. Evil tries to hold the world for ransom for the same amount of money. A million dollars, huh? Talk about a drop in the pond.

"Puddle Reflection" by Seattlest Flickr group photog Single Malt.

And that's not exactly money in cash assistance to homeowners. "Despite Washington’s commitment to preservation and its long-standing dedication to providing affordable housing," begins the report, credulously, "some 250,000 households in the state have housing affordability problems with more than 25,000 low-income households in Seattle paying 50 percent or more of their incomes toward rent. The state and city will help nonprofit owners and affordable housing funders implement best practices in asset management to ensure the long-term stewardship of affordable rental homes. Washington and Seattle are receiving a $1 million MacArthur grant."

So the money's not going to directly help low-income homeowners, it's simply meant to help make it more sustainable to maintain properties. Now, there is some wisdom in this--one of the biggest problems in affordable housing over the last decade was the rapidly expanding housing market. As demand grew, it became more and more profitable to convert affordable apartments into high-priced condos. According to the City Council's 2007 Housing Inventory (PDF), between 2004 and the end of 2006 we had a net gain of 179 rental units in the city, after taking into account the almost 4,000 units converted into condos (a process which accelerated through at least most of 2007), and even that assumed that 20 percent of condos remained on the rental market.

But as the housing market collapses, it becomes more affordable for nonprofits and other public facilities to invest in increasing affordable housing stock, which is where the MacArthur Foundation's grant--$700,000 to the State Dept. of Community, Trade, and Econ. Development, and $300,000 to the Seattle Office of Housing--comes in, helping to create resources to streamline processes and develop sustainable business plans. But that still leaves the question of whether our elected leaders will change course and adopt a set of long-term policies that help keep housing affordable, or whether they're return to a policy of leaving housing stock at the mercy of developers once this recessionary bump ends.

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By Jeremy in News on February 27, 2009 1:00 PM

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Anna from Housing Consortium

This grant will help the government and non-profits work more effectively. But the article is right; we need more investment to truly make an impact. Seattle citizens can make that investment by voting to renew the Housing Levy on their ballot this November.

Children deserve a chance to succeed in school and in life, which all begins with their family being able to afford a decent place to live.

Thanks for calling attention to this important grant. It highlights not only that Seattle and Washington State are national leaders in innovative approaches to affordable housing but also the continuing housing crisis for working families.