Whatcom County is rolling out a new program to encourage developers to build affordable homes.
The county will distribute state sales tax dollars to help cover public-improvement costs that routinely fall to home builders — everything from water and sewer lines to new streets and sidewalks.
The program is geared to benefit larger housing projects, county Deputy Executive Tyler Schroeder said in an email. The county came up with the grant-and-loan program in consultation with the business community and cities within the county, which must partner with a private or nonprofit developer to apply for the funds.
Business leaders involved in the discussions “encouraged local governments to view the lack of workforce housing as an impediment to economic growth,” Schroeder said.
The state allows rural counties to take .09% of its sales tax for what is called Economic Development Investment or EDI funds, to spend on public infrastructure as a way to spur economic growth.
How much developers may receive in grants and low-interest loans to cover their infrastructure costs depends on the percentage of homes they are setting aside for either workforce or low-income residents. The money can be used for both owner-occupied homes and rentals.
“Workforce” wage earners are those who make 120% or less of the county median income — around $65,000 annually for a household or $33,000 for an individual, according to recent census figures. Those in the low-income category make 60% or less of the median income.
The median sale price for a home in Whatcom County in February was $599,000, according to Realtor.com.
“Housing affordability is hugely important for economic development, economic health and economic stability for employers, who have a heck of a time attracting and retaining employees” in the current housing market, said Paul Schissler, an independent community development expert who is advising Blaine on how to plug into the county’s new funding source.
Blaine is working with Kulshan Community Land Trust and private landowners on what might be the county’s first-ever application to the program, which was announced March 10.
Whatcom County has used state EDI funds in a different capacity since 2011, to pay for certain utility and impact fees that come with building a new home. The county initially set aside $1.2 million loans developers used to pay these fees on affordable homes. The fund has proven successful; it has been supplemented three times since 2011, for a total investment of $2.7 million, Schroeder said.
