Major grant helps bridge the gap for Vashon HouseHold project

The Washington State Department of Commerce awarded an additional $1.99 million to Vashon HouseHold (VHH) as part of a comprehensive $26.6 million program funding low-income housing projects throughout the state.

The funding, announced by Commerce on Sept. 21, is critical for VHH’s long-delayed Island Center Homes project, which is still awaiting grand opening at Vashon Highway and 188 St. SW.

When VHH first proposed to build affordable housing in 2018, it secured commitments from the Washington State Department of Commerce and the King County Department of Community and Social Services for a total of just a little over $8 million.

Since then, the cost of goods has increased by about $5 million, according to VHH executive director Jason Johnson.

With this grant, the Department of Commerce increased its total price for the Island Center Homes project to $5.4 million. VHH has already requested an additional $3 million from King County, which would bring the county’s overall investment in the project to $6.8 million.

Johnson says the organization “…believes we are well positioned to compete for this award.”

He also noted that the Vashon community provided $52,000 in funds that were matched by Washington State.

“Early community support was critical to the success of this project and our ability to apply for public funds,” he said.

VHH is still awaiting permit clearance, which Johnson says will happen soon. The organization plans to hold a groundbreaking ceremony later this year and begin construction in early 2023, he said.

The construction time for the project will be approximately 17 months, placing move-in dates for residents in mid-2024.

Upon completion, Island Center Homes will add 40 income-qualified rental units to the inventory of affordable housing on Vashon. The 330 to 380 square foot micro-suites will provide accommodation for seniors, veterans and those with incomes between 30% and 80% below the region’s median income of approximately $78,000. $ for Vashon Island, according to 2020 census data.

The homes in the center of the island will be arranged in clusters on the five-acre parcel. Five buildings will each contain eight single-occupancy suites with individual bathrooms. Residents will share the kitchen, laundry room and common living areas.

To facilitate a thriving and healthy community at the site, VHH will create shared space agreements among residents and provide indoor and outdoor custodial and maintenance staff, as it currently does with existing properties.

Throughout planning, Johnson and VHH board members looked to Seattle-area projects for best practices in the design and execution of the site and supporting programs.

“Our goal, as always, is to provide quality, safe and affordable housing for the people we serve,” Johnson said.

Providing comprehensive social services will also be a priority, and the organization plans to assign a social worker to help meet the existing and emerging needs of residents.

The application process for the units is still being developed by the VHH Board and staff.

The organization plans to conduct an extensive outreach campaign in 2024, Johnson said, including outreach activities and community meetings, newspaper advertisements, contacts with funders, interviews and surveys, such as VHH has done this in past projects.

This outreach process will be “an extremely important part of designing the admissions process,” he said.

Johnson also said he plans to bring an intersectional lens to the process, hoping to create a community that represents the growing social, racial and economic diversity of Vashon residents.

The project is focused on environmental sustainability, with a design incorporating a rain catchment system, a community garden, secure bicycle storage and built-in capability to add solar panels to buildings.

Inflation and house prices impact the housing market

The planned completion of Island Center Homes comes as Vashon’s low-income and fixed-income populations, as well as its essential workforce, are impacted by regional and national economic trends. Inflation hit a 40-year high of 9.1% last year, according to the consumer price index (CPI), and is driving household budget deficits.

Moreover, the price of buying a house on the island has skyrocketed year after year. Median home prices have risen 17% over the past two years, from $696,000 in 2020 to over $835,000 in September 2022, according to Multiple Listing Service (MLS) reports. Pandemic-related trends have been a major driver of the recent escalation.

However, residents who cannot afford to buy do not easily find accommodation to rent.

According to 2020 U.S. Census data, the rental availability ratio (the total number of units versus the number of available units) on Vashon is effectively at 0%, while King County’s rental inventory is hovering. overall around 6%.

Founded as a non-profit organization by community activists in 1990, VHH has a long history of working to meet rental housing availability. It already operates 125 units across four properties on the island: JG Commons, Eernisse Apartments, Charter House and Mukai Apartments.

The units are a mix of income-qualified, seniors, veterans, and renters looking for affordability and stability in Vashon’s volatile rental market. Demand for the units remains high, with a waiting list of more than 50 people in January, according to former VHH executive Chris Szala. The organization had to temporarily close waiting lists.

While VHH’s rental programs primarily address the needs of those most at risk of homelessness, the organization also strives to address homeownership and housing availability for primary residents of the hand. -work.

The organization oversees 76 owner units at three locations – Vashon CoHousing, Roseballen and Sunflower. Operating under a community land trust, VHH owns the land at each site, while individuals and families own the homes.

This model provides a framework to ensure homes remain affordable in perpetuity while supporting the homeowner’s ability to reliably build capital. Home valuations are set at the CPI, but appreciation is capped at 3.5% per year and the value of the home cannot be affected by CPI-based depreciation. This provides exceptional stability for owners, all of whom are income qualified and many of whom are first-time buyers.

The housing crisis affects Vashon

Vashon’s shortage of senior housing and labor ripples throughout the economy. Some of the island’s largest employers, including the Vashon Island School District and Sawbones, spoke to VHH about the lack of housing and the resulting staffing issues. In a video on the organization’s website, spokespersons for both organizations speak at length about the issue.

Recent staffing issues at the Vashon post office are well documented. In a recent communication with The Beachcomber, Postal Service Representative Lecia Hall wrote, “One of the recruiting challenges we have encountered in staffing the Vashon office is the cost of the daily ferry service. Working on the island is appealing, but the cost of travel is a personal factor in the decision.

Johnson said catalyzing action around the workforce housing issue is a top priority for the organization.

This fall, it released a survey of Vashon’s largest employers and their employees, hoping to gather the data the organization needs to drive crucial conversations within and beyond the community.

While VHH sees itself as a facilitator and a resource, Johnson is clear that the investment of time — and money — to fix the problem will fall to government, business developers or employers.

Even with the additional 40 units provided by the Island Center Homes project, VHH recognizes that housing needs on the island are still woefully under-met. This fall and through 2023, the organization will add another program – a home sharing initiative.

Inspired by national models — specifically a program run by Associated Departments in Tacoma — the program aims to match 30 people to share homes by the end of 2023.

Applications for the program will be available from VHH later this year.

While the participant matching process is vigorous and the living agreements are detailed, Johnson and the VHH board recognize the need for continued facilitation, he said. To this end, a program coordinator will be hired by VHH to support participants and help mediate in the event of a conflict.

The home-sharing program and the higher-density living opportunity presented by Island Center Homes are new housing strategies for Vashon, who has a long tradition of low-density living.

According to census data, Vashon has a population of 299 people per square mile, unlike King County as a whole, which has a density of 1,073 people per square mile.

Johnson sees higher-density planning, including projects like Island Center Homes, as the way to foster housing affordability on downtown-centered Vashon.

It’s a vision he says represents the stark choice the community now faces – find a way to welcome wage workers and support a robust middle class, or become an increasingly exclusive second-tier enclave. and third residences for the wealthy.