Support Homestead

In the current economic climate, the need for stability, predictability and broad access to housing is clearer than ever before. The evidence of families in distress is growing, as foreclosure rates skyrocket and people struggle to meet their basic needs. In King County, home foreclosures continue to be recorded at higher rates than in years before the recession (1).

In the area of employment, the number of reported layoffs in King County last year was more than double that of 2008[2], and labor force participation is currently at a 20-year low[3]. In the State of Washington, King County is ranked lowest in housing affordability among all metropolitan counties[4].

Amid this economic crisis, Homestead fulfills a vital need by increasing access to permanently affordable housing. Across the country, community land trust homeowners have substantially lower delinquency and foreclosure rates than other homeowners. At the end of 2010, conventional homeowners were ten times more likely than community land trust homeowners to be in the process of foreclosure[5].

To date, no Homestead homeowner has experienced foreclosure. Additionally, Homestead protects low- and moderate-income homeowners from predatory lending, both at the time of purchase and throughout their ownership of the home. Homestead’s approach of building long-term affordability and providing post-purchase stewardship supports the success of communities and families, in good times and bad.

Now is the time to take advantage of a unique and exciting opportunity to increase the number of permanently affordable homes in Seattle and King County, while home prices remain lower than usual. Homestead must act now to answer the urgent call for affordability by increasing support for our current homeowners, who face employment hardships due to the recession, while building homeownership opportunities that will long outlive the current economic crisis. By investing now, we can buffer Seattle and King County communities against the potential for dramatic increases in home prices when the economy stabilizes.

[1] United Way of King County Community Assessment: Public Health Seattle-King County

[2] United Way of King County Community Assessment: Washington State Employment Security Department

[3] 2010 King County Economic & Revenue Forecast

[4] Washington Center for Real Estate Research, 3rd Quarter 2009

[5] 2010 CLT Delinquency and Foreclosure Survey