Washington State has one of the most complex housing ecosystems in the country. Increasing tech salaries has driven some of the highest cost-of-living rates in the nation, while homeownership has become unaffordable for 80% of households. Low- and moderate-income residents face rising housing costs, displacement pressures, widening wealth gaps and uneven access to capital.
As a result, housing organizations in the region are stepping into the gap by pioneering groundbreaking, community-driven solutions for affordable housing shortages and homelessness. But, this innovation isn’t happening in siloes.
Across the state, organizations are collaborating with diverse networks of stakeholders working to make these ideas a local reality. The convening power of those partnerships will take center stage at the National Community Reinvestment Coalition (NCRC)’s Reinvest Washington: A Summit for Community Development Leaders taking place September 22 in Tacoma.
The summit is an opportunity to forge the relationships, knowledge and shared priorities required for long-term change by bringing together advocates, lenders, developers, government leaders and nonprofits to figure out what works and break down systemic roadblocks.
Innovative housing programs driving impact
Three NCRC members are playing key roles on the summit’s host committee and are great examples of what is possible through local cross-sector collaboration and partnerships. While each organization focuses on different aspects of the Community Reinvestment Act (CRA), they all cover the diverse geography of the state and work with community members of different economic backgrounds.
Leading the charge on housing development is the Low Income Housing Institute (LIHI), an affordable housing provider that operates over 3,750 units in the state and has been developing creative solutions to housing shortages since 1991. LIHI also operates two Urban Rest Stops in Seattle where unsheltered people can access free restrooms, shower and laundry services.
Building on these efforts, LIHI launched its Tiny House Village program in 2015, which provides small structures that serve as temporary housing for community members facing homelessness and cost just $5,000 in materials to build. LIHI collaborates with students, volunteers, building trade organizations, tribes, businesses, faith partners and nonprofits to construct them. LIHI currently operates 18 tiny house villages that house over 2,000 people annually and the model has been replicated in other parts of the country.
“The whole goal of the tiny house villages is to work with a case manager and move into housing and navigate into employment or even recovery services,” said LIHI’s Executive Director and NCRC board member Sharon Lee. “And it’s proven to work.”
From a capital perspective, the Washington State Employees Credit Union (WSECU) has been working since 1957 to provide a comprehensive financial ecosystem for homeownership for community members. In addition to educational resources, WSECU provides match-and-grow savings programs, a $10,000 homeownership grant, first-generation loan programs and up to $30,000 in down payment assistance.
In addition to grants and lending, the credit union has also been a proponent of another housing solution: accessory dwelling units (ADUs). ADUs are smaller, independent structures built on a homeowner’s property and can help provide an affordable housing option for multi-generational families.
In 2023, the Washington State legislature passed zoning changes allowing ADUs and detached accessory dwelling units (DADUs) on single-family properties. As a result, financial institutions, developers and city compliance officials have been able to work together more often towards helping homeowners build ADUs and DADUs on their land.
“What’s so cool is they become unintentional partners,” said Dave Puszczewicz, the director of community lending and homeownership development at WSECU. “They all have their own function and operate separately, but there is a partnership that needs to exist between everyone.”
To help residents navigate affordable housing and financing options, the Washington Homeownership Resource Center (WHRC) acts as a hub for homeownership education, resources and cross-sector partnerships. Established in 1995, WHRC operates the official homeownership and foreclosure prevention hotline, which services 11,000 to 16,000 clients annually by connecting struggling homeowners with free HUD-certified housing counseling and legal aid services.
WHRC was a crucial advocate for the Covenant Homeownership Act, which was passed in 2023 to help families overcome generations of economic harm caused by past racial and religious discrimination in housing. The legislation created historic down payment assistance programs for first-time homebuyers across the state who have low-to-moderate incomes and are part of racial groups that have been historically discriminated against.
They are also a core leadership member of the Black Home Initiative, a network of nonprofits, private companies, government offices and associations focused on increasing Black homeownership. The initiative has helped over 1,000 new homebuyers since it launched in 2022.
“Because of a combination of policy changes, increased outreach, education efforts and [collaboration with] housing counselors, loan officers and real estate agents, we’re starting to make a dent in our goal to increase Black homeownership,” said WHRC’s Executive Director Elizabeth Perez.
Partnership and alignment is key
All three organizations cite cross-sector partnerships as essential to their success and are actively collaborating with NCRC to develop programming for the summit.
“Washington is facing significant challenges around housing affordability, displacement, access to capital and the ability of families to build long-term wealth,” said Puszczewicz. “No single financial institution, nonprofit organization, government agency or community group is going to solve them independently – that’s why partnership matters.”
Partnership will be needed for the road ahead as federal funding cuts are likely to continue with the White House’s proposed 2027 fiscal year budget cutting 13% from the Department of Housing and Urban Development (HUD). Local and state capital for affordable housing is also tightening. In 2020, Seattle passed a local payroll tax that was intended to generate funding for affordable housing, but millions of those dollars were diverted by a previous mayor to balance the broader city budget.
“We need banks to step up and do more in our communities, not less,” said Lee. “I’m concerned the new CRA rule would allow banks to invest less in community development and affordable housing. In fact, we’re already starting to see that happen.”
Navigating these institutional roadblocks is why bringing together the region’s housing stakeholders is so critical for building on Washington’s progress.
“One of the things I value most about NCRC and Reinvest Washington is the opportunity to bring together people who experience the same challenges from very different perspectives,” Puszczewicz said. “When we bring those perspectives together, we have an opportunity to move beyond simply identifying problems and begin developing practical solutions.”
Kaitlyn Ridel is a Contributing Writer.
