Zahilay Announces Plan for $1 Billion Regional Workforce Housing Initiative

September 5, 2024

King County Councilmember Girmay Zahilay announced on Thursday a plan to create a $1 billion Regional Workforce Housing Initiative, a bold step forward in addressing the region’s housing crisis. This motion directs King County to develop an implementation plan that utilizes the county’s excess debt capacity to partner with housing agencies and developers in creating permanently rent-restricted, multiple-unit housing for the region’s workforce.

“This initiative is about ensuring that the people who power our economy can afford to live near where they work,” said Councilmember Zahilay. “By leveraging King County’s financial resources and partnering with both public and private entities, I believe we can create sustainable, affordable housing solutions for thousands of workers around the region.”

The Regional Workforce Housing Initiative is designed to combat displacement and provide affordable housing to moderate-income households across King County. The initiative will focus on using at least $1 billion in excess debt capacity to build and maintain rent-restricted housing units, with rents set to reflect the true cost of development and operation. The motion also prioritizes fair labor practices, including prevailing wage rates and the utilization of King County’s priority hire community workforce agreement program.

“Workforce housing is a vital part of addressing King County's pressing housing needs,” said Patience Malaba, Executive Director of the Housing Development Consortium. “By leveraging public-private partnerships and focusing on permanently rent-restricted homes, this initiative paves the way for sustainable and inclusive development that meets the diverse needs of our workforce. It recognizes the importance of proximity to jobs, which is crucial for both reducing housing instability and supporting economic growth. As housing providers and developers, we are committed to working alongside King County to create affordable housing solutions that ensure our communities remain vibrant and accessible to all.”

“Affordable, quality workforce housing is a critical need in King County,” said Heather Kurtenbach of Ironworkers Local 86. “This motion has the potential to bring hundreds of jobs to our region and help union members afford to live close to where they work. By supporting ironworkers and others who are pivotal to our workforce and daily life, we can build stronger and more vibrant communities for all. We appreciate the opportunity to work with Councilmember Zahilay on this proposal and hope to see support grow for his legislation.”

“The King County Housing Authority is strongly in support of this motion requesting that Executive Constantine increase the excess debt capacity to increase the supply of workforce housing,” said Robin Walls, President and CEO of the King County Housing Authority. “KCHA has been deeply appreciative of the support of King County council in our shared ongoing efforts to increase housing supply, as one of the main mechanisms for addressing the ongoing housing affordability challenges facing the residents of King County.”

The motion will be formally heard in the King County Council’s Budget and Fiscal Management Committee on Wednesday, September 11, 2024, at 9:30 AM. The full text of the legislation can be found here.

To further discuss this initiative, Councilmember Zahilay will host a press conference on Tuesday, September 10, 2024, at 10:15 AM at IBEW Local 46, 19802 62nd Ave S #105, Kent, WA 98032. The press conference will feature key stakeholders, including Councilmember Rod Dembowski and representatives from Nitze-Stagen, IBEW Local 46, the Seattle Chamber of Commerce, and the King County Housing Authority, among others.
Members of the media are invited to attend this press conference, where they will hear firsthand from the leaders and advocates who are driving this initiative forward.

Quotes: 

Councilmember Rod Dembowski: “We need more housing to increase affordability. As interest rates have risen, projects have stalled or been shelved. Similar to the successful revolving fund models launched in recent years by the private sector, King County can and should use our financial strength and low-cost borrowing capacity to massively boost the production of housing in our region. We have done so before in partnership with the King County Housing Authority, with great success. This proposal offers the potential for a game-changing level of investment by King County, at a time when it’s needed more than ever.”

Peter Nitze, Nitze-Stagen: “As local developers focused on delivering attainably priced multi-family housing to underserved communities in King County, we strongly support Councilmember Zahilay’s motion to establish a regional workforce housing initiative. The County continues to suffer from a lack of housing affordable to residents earning 80% or less of the area median income (AMI); and current market conditions – specifically, elevated cost of borrowing, historically high operating costs, shrinking housing subsidies, and declining revenues due to economic vacancies – have led to a dramatic reduction in new development, further exacerbating this crisis. Now is the time for the County to leverage its strong credit and $9 billion of debt capacity by partnering with mission-aligned developers who, with that support, can provide sorely needed workforce housing rapidly and cost effectively.” 

Nicole Grant, IBEW Local 46: "We need bold and urgent solutions to make sure that working people in King County have access to affordable housing. Councilmember Zahilay's plan will help support our working families by providing a blueprint for sustainable and affordable workforce housing that allows us to live in the comfort, dignity, and stability that we all deserve. IBEW is proud to support this legislation, and we need this investment in our workforce now more than ever."

Press Conference:

•  Date: Tuesday, September 10, 2024
•  Time: 10:15 AM
•  Location: IBEW Local 46, 19802 62nd Ave S #105, Kent, WA 98032

Budget and Fiscal Management Committee Hearing:

•  Date: Wednesday, September 11, 2024
•  Time: 9:30 AM

For more information or to RSVP for the press conference, please contact David Shurtleff at (206) 954-2368 or david.shurtleff@kingcounty.gov.

About Councilmember Girmay Zahilay:

Girmay Zahilay serves as a King County Councilmember, representing District 2. He is the Chair of the Council’s Budget and Fiscal Management Committee. 

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Press Contact:
David Shurtleff
Communications Director, King County Council
Cell: 206-954-2368
David.Shurtleff@kingcounty.gov

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