While the average Habitat for Humanity homeowner in Seattle is moving home, they are 38 years old with a family of four. The later a homeowner goes, the longer it takes for them to start building their own capital, which can have financial consequences.
“What if,” says Habitat’s chief executive Brett D’Antonio, “we can own a 24-year-old in a hospital or school? Can they buy in the open market until they are 38 years old? ”
Habitat for Humanity Seattle-King County plans to begin construction in the coming weeks on a 13-room slow-moving 13-room, one-, two-, and three-bedroom condominium on Capitol Hill, costing people 80% less than the median income, or about $ For 65,000 individuals.
And this is not the only condom project available on the road. Next year, Habitat plans to launch a similar 17-unit project a few blocks from developer Green Canopy.
The Homestead Community Land Trust also has plans to build two toilets in the Phinney Ridge neighborhood. Together, the two buildings will contain 59 condoms, which are scheduled to be completed in 2023 և 2024.
Homestead buildings will be a mix of market interest rates և more affordable reserves, market interest rates will help finance affordable homes.
In a city where there are needs such as health care, jobs, public transit, but short, empty land, “you have to go vertical,” said Kathleen Hosfeld, CEO of Homestead.
Homestead expects to sell affordable condoms for less than $ 300,000 and market homes for $ 300,000 to $ 525,000. Habitat condominiums will cost $ 150,000 – $ 325.00, depending on the size.
Although nonprofits in the region have long built affordable rental housing, such as affordable townhouses and single-family homes for sale, subsidized condoms are less common.
Larger homes remain key for large families. But one- or two-room closets offer options for couples, single parents with empty nests. Other nonprofits have built similar projects, including for Habitat for Humanity in San Francisco and New York.
In affordable home ownership programs, developers use public-private funding to subsidize home construction. Home buyers generate a large amount of capital over time (in this case 1.5% per year), which allows them to collect nest eggs if they decide to sell the house later և buy a house bought on the market.
If they relocate, the house is resold for the original price plus 1.5% per annum, which makes it more affordable than a house with a market interest rate.
Seattle needs much more than a few individual programs can provide.
As Seattle’s housing prices have risen, the proportion of Seattle homeowners has declined, and Seattle is now the majority renter city. Gaps still remain among homeowners. The Seattle metro area, which includes the city of Tacoma Bellou, has the lowest home ownership rates of 29%.
The city estimates that over the next two decades, it will need ,500 9,500-14,500 units of housing available to people with an average income of 50% -80%. (More will be required for people who earn less).
New development is constrained. Despite some highlands in recent years, most of the city’s residential land does not allow for dense housing like apartments.
Today, the average single-family home in Seattle costs $ 875,000, and the average home sells for $ 490,000.
Building upwards brings challenges. Habitat’s usual reliance on volunteer work has less to do with multi-storey projects, D’Antonio said. Condo restrictions are difficult, and funding is difficult to secure.
Habitat expects its Capitol Hill projects to cost $ 4.4 million to $ 5.5 million, funded by charities, mortgages and other sources. Homestead projects, one on privately owned property and the other on surplus urban land, will cost $ 14 million և $ 12.5 million. Funding is still lined up.
Hosfeld said that Homestead will continue to build “rack” developments in the future, but they are unlikely to replace other homes.
“Different cities across the county have different zoning, they want to preserve what they call the unique nature of their neighborhoods, they do not necessarily want condominiums,” Hosfeld said. “Some authorities do not even want town houses.”
Still he said. “There is a demand for affordable homeowners.”