Habitat for Humanity to purchase 80 homes
Congresswoman Marilyn Strickland has secured funding in the federal budget for 14 South Sound community projects and among them is Tacoma/Pierce County Habitat for Humanity’s project to rehabilitate 80 Pierce County Housing Authority homes and preserve their affordability in perpetuity.
This is an unprecedented opportunity for Habitat, which normally focuses on new home construction. The housing provider is purchasing 80 units as the Housing Authority is selling its single-family rental properties across Pierce County consisting of 120 homes and two duplex units. Tacoma Habitat has been selected as a preferred bidder and is working to acquire houses, rehabilitate them as needed, and bring access to homeownership for underrepresented, income-qualified families.
"As the South Sound continues to grow, our community is feeling the ongoing housing and affordability crunch,” Strickland said. "The Tacoma/Pierce County Habitat for Humanity project further expands access to safe, accessible, and affordable housing.”
"Congresswoman Strickland’s investment is huge,” said Tacoma/Pierce County Habitat for Humanity Chief Philanthropy Officer Sherrana Kildun. "The fact that the federal government is leaning into this as a special project is a big deal and we are so thankful. This is the biggest thing we’ve ever done – a huge, big dream – and a $43 million project.”
The homes are primarily located in Spanaway and Parkland, with additional small clusters in Bonney Lake, Elk Plain, Graham, and on the Peninsula. So far, Tacoma Habitat has purchased about half a dozen Housing Authority homes toward the target 80. All are great entry-level homes for workforce families. Those eligible for the program must have a household income of at least $60,000 a year, with a credit score of 620.
The Tacoma Weekly visited one of the purchased houses in Spanaway with Kildun and Habitat’s Policy and Advocacy Manager Liz Crouse. This three-bedroom, one bath home will sell for about $255,000 and is expected to be ready this month for a working family ready to step into ownership by May.
The house went through key renovations including new paint inside and outside, all new flooring and trim, double-paned windows, energy efficiency upgrades for heating and cooling, and all new cabinets and countertops were installed in the kitchen along with energy efficient appliances. A new deck will be built in the backyard which is fenced making a perfect playground for a family dog. A thorough inspector tested for mold, lead, and asbestos, and the septic system was scoped and inspected.
"We don’t want to have any issues or surprises being put on a modest income buyer because this is ownership. We’re trying to do as much as we can for a renovation house so that’s it’s almost new,” Kildun said.
Another aspect of Habitat’s homebuying program is that it can get families out of the rent cycle that builds no equity for them or their children. As Kildun explained, "Our typical buyer pays about $1,600 a month through Habitat. If this house were on the market as a rental, they’d probably be paying about $2,200-$2,500 a month at least.”
Under Habitat’s program, the non-profit retains ownership of the land and only sells the housing unit. Using a restricted resale model, Tacoma Habitat ensures the permanent affordability of these homes to preserve entry-level homeownership of the units for generations to come. If, or when, a homeowner decides to sell, the home is not placed on the open market. Buyers agree to sell to another qualified income buyer. The resale formula is pre-determined. For these 80 houses, it will be about 1.5 to 2 percent per year that owners are in the home so after 10 years, they could walk away with somewhere in the neighborhood of $70,000, and in 20 years over $200,000.
"That allows us to price it at what a buyer can afford at 80 percent area median income and below,” Kildun explained. "For a family of four in Pierce County, it’s between $60,000 and $87,000 household income.”
Habitat’s strategy to preserve homes is intentional and beneficial to working families. As Kildun said, "If we can preserve existing units in our community, keeping them affordable and letting homeownership step into this neighborhood, that’s exactly what we need to be doing. Our other preservation work is with veterans, seniors and people with disabilities with what we call our Aging in Place program, critical home repairs for existing homeowners.”
Tacoma/Pierce County Habitat for Humanity is making significant strides in addressing homeownership disparities and diversifying the housing market to bridge the historical, racial, and wealth gaps as highlighted in recent disparity reports by the State of Washington and the City of Tacoma. The reports revealed that the homeownership of Black households compared to their white counterparts is at least a 40-45 percent difference. Kildun pointed out that the homeownership rates for Black households in Pierce County are lower today than they were in the 1960s when redlining and discrimination were legal.
"That’s not okay,” she said. "We’re one of the only places that people can step into entry-level homeownership anymore. And we need to do more. We’re in a housing crisis and the cost of houses these days is over half a million dollars in Pierce County and working, entry level families can’t afford it.”
Tacoma Habitat needs new buyers. The website owninpierce.com gives everything anyone needs to know about eligibility, and Habitat will walk with you throughout the home buying journey.
There are many stories to share about this organization, like Chris, a current Habitat homeowner.
"I moved seven times in 10 years. I couldn’t afford a place that was safe and comfortable,” he said. "Working with Habitat makes you feel prideful – like you’re a part of the house. A lot of people think they can’t own a home because they don’t make enough money, and banks don’t make you feel like it’s a possibility for anyone. But Habitat has made my dreams come true.”
MORE FUNDED PROJECTS
In addition to the Tacoma Habitat funding, Strickland was successful in securing funding for 13 additional projects in the South Sound. The City of Tacoma will receive $850,000 for shelter expansion and site preparation to provide 75 units of warm, safe temporary housing to some of the city’s most vulnerable populations. Mayor Woodards called the funding "very exciting news” and credited Strickland and Congresswoman Maria Cantwell for making it happen.
"The city appreciates the support of Congresswoman Strickland and Senator Cantwell and the partnership of its federal delegation. Congresswoman Strickland supported the Community Project Funding request and Senator Cantwell supported the Congressionally Directed Spending request of the city to purchase up to 75 micro-shelter units…and to fund site preparation and expansion of a longer-term location for the micro-shelters,” Woodards told the Tacoma Weekly. "The amount of the funding is different than the city’s proposal, so the city will assess the locations for placement of the additional units once it receives direction from the federal agency administering the funds, but any new units would be placed at existing sites.”
For the Tacoma Police Department, $963,000 will boost its alternative response strategies to improve public safety by hiring Community Service Officers and Designated Crisis Responders to engage in certain limited law enforcement functions.
At the city of University Place, $500,000 will go toward the Chambers Bay Access to Opportunity Project to improve traffic flow at the intersection of 64th Street West and Chambers Creek Road while installing ADA-compliant crosswalks.
The Lakewood Water District will invest $959,752 for its PFAS Mitigation Wells Project that will Drill down to uncontaminated aquifers to partially replace the water supply that has been lost due to PFAS contamination. Lakewood will also receive $1 million for a Living Access Support Alliance campus project to bring 25 new affordable 1-, 2-, and 3-bedroom apartments co-located with case management and peer support to prevent homelessness.
Pierce County’s Sprinker Community Recreation Center building renovations will receive $1 million for improvements at the center. Pierce Transit will invest $2.5 million for system-wide bus shelter modernization to replace vandalized shelters with redesigned shelters that are stronger, less breakable, and reinforced against vandalism.
South Puget Sound Habitat for Humanity’s 3900 Boulevard Project’s $500,000 will go toward mixed-income housing with a neighborhood commercial and community benefit element to serve low- and moderate-income families.
In Bonney Lake, the Good Roots food bank will have $744,000 to address food insecurity by expanding the use of refrigerated smart lockers. The city of Lacey will invest $850,000 in College Street corridor safety improvement to increase pedestrian and vehicle safety on this major north-south artery. The Thurston County food bank will receive $1,666,279 to develop a community hub at Lacey’s Food Pantry consisting of building additional office spaces for local human service partners.
"I’m pleased to help deliver these projects that will uplift local communities across the South Sound. They create local jobs, improve public safety, enhance several roads and water infrastructure, address hunger, expand access to public transit, and build more affordable housing,” said Strickland. "Community Project Funding helps make the South Sound a more safe and secure place to live and work.”