Vancouver Affordable Homeownership Forum

1
Vancouver Affordable Homeownership Forum

• Washington Homeownership Center and The Federal
  Reserve Bank of San Francisco

2
Vancouver Affordable Homeownership Forum

• Agenda
• Intro and Goals Craig Nolte, FRB-SF
• Washington Homeownership Center Jeff Caden
• State of Homeownership WA Homeownership Report
• Local homeownership issues Tom Cusack, HUD
• Discussion
• Local Solutions to Affordable Homeownership
• Working Paper Jeff Caden
• Next Steps

3
Affordable Homeownership Forum

• Washington Homeownership Center and The Federal
  Reserve Bank of San Francisco

4
Washington Homeownership Center

• First step to homeownership for potential
  first-time homebuyers in Washington with less
  wealth
• The states largest and most comprehensive
  clearinghouse of information related to
  first-time homeownership for those with less
  income

5
Washington Homeownership Center

• Changed name from Community Home Ownership Center
  (CHOC) to Washington Homeownership Center (WHC)
• New URL www.homeownership-wa.org
• New toll-free Homeownership Hotline
• [phone]

6
Washington Homeownership Center

• 700 surveys sent to potential service providers
• New service provider database
• Matches appropriate services with client
  location, income, barrier, and step in
  homeownership process
• Tracks referral source

7
Washington Homeownership Center

• Why do we exist?
• Increasing the size of the pie
• 60,000 incremental homeowners in 15 years
• Connecting the Dots

8
Washington Homeownership Center

• What is our place in the homeownership continuum?
  in the housing continuum?
• It takes a village Washington Homeownership
  Center is YOUR village
• Sharing - Partnership

9
Washington Homeownership Center
Homebuyer Education Curriculum Statewide
Outreach to Prospective First-time
Homebuyers Building partnerships statewide
10
The State of Homeownership in Washington

• Washington is 43rd of 50 states in homeownership
  rate (66)
• Median home price 275,000 (187,500 U.S.)
• 252,000 Clark County
• 390,000 King

11
2005 Washington Homeownership Report

• Objectives
• Understand the barriers and opportunities in
  increasing LMI homeownership opportunities
• Identify areas where increased homeownership for
  families and individuals with less wealth could
  be achieved most readily

12
2005 Washington Homeownership Report

• Statewide
• 300,000 renting households in Washington between
  50 and 100 of AMI
• WHC priorities Spokane, Clark, and Thurston,
  followed by Pierce and Yakima counties.

13
2005 Washington Homeownership Report

• Statewide
• 41 of 2004 home sales could have been afforded
  by households with 80 of median income, and
• 60 of 2004 home sales could have been afforded
  by those with 100 of median.

14
2005 Washington Homeownership Report

• King County 71,900
• 16 of sales affordable for 80 of median, and
• 35 for those at or above 100 of median
• Clark County 67,900
• 57 of sales affordable for 80 of median, and
• 74 for those at or above 100 of median

15
2005 Washington Homeownership Report

• Clark County 67,900
• 4,147 homes could have been afforded by 80 AMI
• 5,382 homes could have been afforded by 100 AMI
• Cowlitz County 55,000
• 851 homes could have been afforded by 80 AMI
• 990 homes could have been afforded by 100 AMI

16
2005Washington Homeownership Report

• Clark County 67,900
• 15,000 renting households under 50 median
• 15,000 renting households between 50 - 100 AMI
• Cowlitz 55,000
• 5,000 renting households under 50 median
• 3,500 renting households between 50 - 100 of
  median

17
Annual Statewide Homebuyer Education Survey

• 10,000 attendees per year at Commission-sponsored
  homebuyer education seminars
• Scantron pre-class survey, WHC follow-up survey
• 52 achieved homeownership within 12 months
• 65 became home owners within 18 months

18
New Home Owners
62
52
48
38
19
Income of Participants 2002 - 2004
20
Most Helpful Resources 2004
21
Homeownership Conversion 2004
Purchased
22
Down Payment Assistance

• Only 30 used down payment assistance
• Programs used
• WSHFC 49
• Hometart 11
• AFL-CIO 1
• Seller assisted programs 8
• IDAs 4
• County/City specific programs, USDA 27
• Native American Loan Programs 1

23
Summary

• Conversion of 15,000 new homeowners 1 increase
• Reframing of low income assistance programs is
  critical in reaching moderate income families
• Increased partnership and creativity is needed to
  reach those with less wealth

24
Solutions Working Paper

• Identify potential LMI first-time homebuyers
• Statewide Benchmark - 2005 Washington
  Homeownership Report
• Opportunities Lowest hanging fruit
• Barriers
• Lack of affordable housing inventory
• Lack of awareness for counseling and assistance
  programs, and an assumption that homeownership is
  not a possibility

25
Solutions Working Paper

• Bring them into the home buying process
• Reframe assistance programs
• Dissemination and Communication of message
• Increase partnerships between real estate
  professionals and non-profit counseling agencies

26
Solutions Working Paper

• Assist conversion to homeownership
• Coordination with non-profit and governmental
  agencies
• Partnerships between Gov/NP and private sector
• Development and Enhancement of Supporting Programs

27
Solutions Working Paper

• Lower the barriers to entry
• Expand IDAs
• At 21 5,000 cap current funds 350 clients
• Public-private partnerships with lending
  institutions
• Expand Down-payment assistance programs

28
Solutions Working Paper

• 5) Lower the cost of existing housing inventory
• Expand CLTs and Self-help programs
• Promote Employer Assisted Housing (tax
  incentives)
• REET exemption for first-time homebuyers
• Innovation
• Lease-to-own CLTs
• Employer-assisted CLTs (tax incentives)

29
Solutions Working Paper

• 6) Increase new affordable housing inventory
• Sales and Use Tax exemptions for new construction
  sold to households earning less than 80 of AMI
• HB 2984 local inclusionary zoning