Idea Could Pair Nonprofits, Builders

TACOMA, WA - Church groups and developers may seem like an odd pairing, but the city of Tacoma is considering whether linking the two could increase affordable housing across the city. The "faith-based" concept hinges on the city's ability to connect church groups and other nonprofits that own extra land with builders. Throw in a few extras, like tax abatement, city-sponsored feasibility studies and matching funds – and the city can propel the development of affordable housing, according to Miles Friedman, a consultant who's implemented a similar program in his home state of Virginia.

More affordable housing is necessary in Tacoma because the median home price – $268,500 at the end of the second quarter of 2008 – is still out-of-reach for many mid-level wage earners, said Sandy Burgess, from the Metropolitan Development Council. "Our work force is being priced out of the urban core," she said. Burgess and Friedman presented the plan Monday to the city's Neighborhoods and Affordable Housing Committee, which will study it further.

In addition to providing a means for connecting nonprofits to developers, the plan would also contain provisions for assuring that those who buy the affordable housing units don't just flip them for a large profit. The "faith" component ends with the landowners. Friedman said that those who buy or rent the housing aren't required to belong to a religious group. Beyond creating the connection, the plan depends on clout from the city, Friedman said. "It tends to really leverage resources," Friedman said. It can also help draw interest from state and federal agencies, which could provide more funding, he said.

Friedman said the effort has been successful in his community. "Many churches were fascinated. The thing that made it work is that this was consistent with their mission" of serving their communities, he said. The committee heard other proposals for creating more affordable housing Monday. One recommendation was to extend the property tax abatement for multifamily housing beyond 12 years. Another idea is to increase height limits in some areas.

Mayor Bill Baarsma said that wasn't a popular idea. Currently, the city's Planning Commission is considering amendments to the Growth Management Act that would increase building heights, and the idea has been met with resistance from neighbors. But Connie Brown, of the Tacoma-Pierce County Affordable Housing Consortium, who presented the policy recommendations for the city, said that, used responsibly, it can be a useful tool for increasing density and lowering the cost of housing.

One point of contention among the policy recommendations was repealing the Miller Amendment, which requires affordable housing developments to gain approval from the City Council before building in the downtown core. Councilman Jake Fey said he wondered why a repeal was necessary when the council clearly supports affordable housing. But Michael Mirra of the Tacoma Housing Authority said the group doesn't "favor extra hurdles for affordable housing development."