Housing Crisis Solutions
Affordable housing is getting harder to find in the Puget
Sound area. Rents have skyrocketed, and the cost of an
entry-level home has passed six figures. You may have already run
into this problem if you don't own a home, or if you have
adult children who are looking for housing.
The most common explanation points to the area's growing
population, drawn here by the climate, job market, or just
plain quality of life. But that's just part of the problem.
Changes in America's economy, tax code, and unionization
rate, have led to a growing disparity in wealth and income.
The richest 1% of the population now own as much wealth as
the bottom 90% combined. The purchasing power of the wealthy
has crowded out the affordable end of the housing market.
It's no secret that profit-driven developers prefer to build
luxury housing. The result is that more of our housing
resources and increasingly scarce land are being sold to the
"high-end" market--in other words, the rich. The huge palaces
built for Bill Gates and his kind are a mockery of the
housing problems of working people. But they also worsen the
situation by using up available land, and increasing the
demand for and price of construction materials.
For renters, who make up 51% of the population in Seattle and
37% in King County, the problem is supply plus demand plus
investors plus greed. According to the business
papers, apartments are a "hot commodity," and many buildings
have changed hands in recent months. When new owners come in,
they either raise the rents by hundreds of dollars a month,
or convert apartments to condos, evicting the former tenants
in the process.
Investors have been spared much of the blame which they
richly deserve for the run-up in rents. But there is an
antidote to rent-gouging--rent control. A well-designed rent
control would moderate rent increases and discourage
speculators. Unfortunately, the powerful property owners
lobby knows this, and in 1981 got the legislature to pass a
bill, without a public vote, prohibiting communities from
passing any kind of rent control laws (renters need to get
that bill overturned!).
I attended the recent Community Conference on Affordable
Housing at the Seattle Center, which was called by Seattle
Mayor Schell in response to concerns and criticism raised
during elections last fall. Among the eight hundred present
were politicians, developers, bankers, low-income housing
advocates, and tenants.
The centerpiece of discussion at the conference was a 21-point
agenda put forth by Schell--a former developer himself.
Many of the proposals would make it easier to build in the
city, but wouldn't ensure that the new buildings would be
affordable to live in. There were some worthwhile ideas,
however, such as using public land for housing, and
preserving low-income (Section 8) and moderate-income units.
One focus of the conference was finding ways to allow first-time
home buyers to enter the housing market. (Not a
surprise, since banks, mortgage companies, builders and
realtors were all listed as sponsors of the conference.)
Here's where the unions made their pitch.
The AFL-CIO announced that Seattle was one of thirteen cities
chosen for its Homeownership Opportunity Program. This
program would reduce some loan costs, require only a 3% down
payment, and have easier qualifying guidelines, for purchases
of homes or condos inside the Seattle city limits. Eligible
borrowers are members of unions affiliated with the AFL-CIO,
and employees of King County and the City of Seattle. Which
is fine, as long as you belong to a union.
Fortunately, there were other non-corporate groups with
proposals more challenging to the status quo of real estate
profiteering. The Seattle Displacement Coalition advocated a
"Right of First Refusal Law," which would allow tenants in
low income rental housing to join together to buy their
building if the owner decided to sell or demolish it.
Seattle Tenants Union had their own Housing Action Agenda for
renters. One of their proposals was a pro-active rental
housing inspection program, instead of the current complaint-based
system. This would work better to protect tenants and
prevent housing from deteriorating. Another proposal would
make it illegal to increase rents in buildings with housing
code violations. By one estimate, this would delay or stop
rent increases in 80% of rental units!
The Tenants Union has a hotline to inform renters about their
rights. The phone number is (206) 723-0500. They get about 50
calls a day, so you know there are a lot of landlord problems
out there. They could use some volunteer help answering those
phones, too.
Market forces and public tolerance of greed have made housing
costs burdensome for many. Public law needs to be changed to
favor renters instead of investors, to encourage affordable
over luxury housing. The labor movement should get more
involved in supporting the Tenants Union and other non-profit
groups organizing working people to protect this basic human
need.
--David Yao. A longer version of this article is also
appearing in the newspaper of the American Postal Workers
Union.
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