Dec. 12, 2008
Executive and Council Chair lead King County housing stimulus effort
Investing in communities for more housing, jobs, and revenue
More housing and, ultimately, more construction jobs are the goals of a new housing stimulus effort proposed by King County Council Chair Julia Patterson and King County Executive Ron Sims. A motion introduced by Patterson on Monday aims for a more streamlined and cost-effective development and permitting process for builders, which is expected to result in more revenue for the county and more environmentally-friendly development.
Patterson and Sims are proposing a variety of actions that focus on efforts to streamline the permitting process in order to promote new housing development, the preservation and enhancement of the housing supply and more environmentally sustainable housing. It is believed the changes will help create more jobs during the recession.
The improved regulatory environment created by the housing economic stimulus package will also increase certainty, predictability and consistency for housing builders and lenders while providing critical infrastructure, jobs-based training and educational opportunities.
“This housing stimulus proposal is just one of our efforts to help stimulate our regional economy,” said Executive Ron Sims. “These changes will pay big dividends in the long run because they’ll not only help the struggling housing industry, but also continue to provide benefits to the housing development process long after this worldwide economic crisis passes. We have seen a significant decrease in housing permits. It is essential to look forward to ensure there is enough appropriate housing stock to meet the housing needs in the future.”
”Our national economy has been hit hard by the financial crisis, which is placing a burden on everyone that relies on financing to complete projects,” said King County Council Chair Julia Patterson. “We must do what we can on a county-wide level to help ease some of the strain and help stimulate our local economy. By giving builders some flexibility but still maintaining and encouraging a high-level of environmental responsibility that King County residents have come to expect, we are doing our part to kick-start the economy.”
According to 2008 market research by the National Association of Home Builders, an average of 3.05 jobs and $89,216 in taxes are produced from building an average new single family home and the development of a typical one-hundred-unit multifamily apartment complex generates one hundred sixteen jobs, $8,670,900 in income from all affected industries and $3,349,400 in tax revenue. In addition, every job created on site by creating or renovating affordable housing an additional 1.5 jobs are created off site. For every dollar invested in affordable housing, an additional ten to fifteen dollars of economic benefit was generated for the surrounding community.
"Executive Sims' effort to advance a housing stimulus plan represents an important first step toward enhancing the economic vitality of our region's housing market and getting the economy back on track," said Sam Anderson, executive officer of the Master Builders Association of King and Snohomish Counties. "The motion recognizes what a critical role housing plays in our local economy, contributing jobs and helping to fund valuable local services. We commend the Executive for his leadership on this issue and urge support for his motion."
This proposal helps King County continue its commitment to growing strong educational institutions, maintaining high environmental standards, promoting sustained and vibrant economic growth, generating revenues to fund capital facility needs, and creating new affordable housing for residents of King County.
A motion sponsored by Council Chair Patterson was introduced to the Metropolitan King County Council Monday.