In what has become a bipartisan quest in Olympia both the Governor and the Senate are now asking the same questions we’ve been asking: why is housing so expensive to build? That question applies to both non-profit subsidized housing and market rate housing. The difference as I’ve pointed out is that when prices go up for market rate builders their only option is to raise the price or rent go the product. Non-profit builders are faced with seeking more tax payer dollars, other subsidies or building fewer units. Senator John Braun (R-20) has proposed a budget that includes the following allocation for a study by the bipartisan Joint Legislative Audit and Review Committee or JLARC. Here’s the text of the budget proviso:

NEW SECTION. Sec. 103 Joint Legislative and Audit Review Committee

$500,000 of the general fund state appropriation for fiscal year 2018 is provided solely for an evaluation and comparison of the cost efficiency of market rate housing in Washington versus publicly subsidized housing projects intended to assist low-income households.

(a) The comparison will include, but not be limited to, a comparison of the costs of:

1. Land acquisition;
2. Preconstruction activities including development an design, environmental review, permitting, and other state and local review processes;
3. Construction and rehabilitation,
4. Capital and financing,
5. Labor costs,
6. Construction administrative costs include legal, contract and finance activities
7. On-going maintenance and operating of the housing constructed, and

(b) The comparison will include a review of the department of commerce housing root cause analysis due to the governor on June 1, 2018 Included in the review will be a consideration of geographic and regional factors affecting costs. The report will include a recommendation for a publically available and easy to read sources and label for each publicly subsidized housing project. For purposes of the evaluation and comparison, publicly subsidized housing project means housing that is funded, in whole or in part, by state, local or federal funds or financing programs to assist low-income households.

(c) The evaluation must solicit input from interested housing stakeholder, including representatives from the Washington state affordable housing advisory board, the department of commerce, the Washington state housing finance commission, representatives from the private rental housing industry, housing authorities, community action agencies, local governments, and nonprofit and for-profit housing developers.

(d) The evaluation and comparison is due to the legislature by December 31, 2018.

As you can see, Senator Braun is building off of the current effort by the Governor to figure out answers to the same question. The Governor has convened the Housing Affordability Response Team or HART to get to the bottom of many of these same issues. Taken together, it feels like we’re finally got some other important people wondering why we’re regulating housing at the expense of renters, people trying to buy homes, and families that need help with housing.  

Take a moment and send a “Thank You” to Senator Braun. You can email him here: john.braun@leg.wa.gov. We’ll be needing your support to keep this budget item funded.