The Snohomish County Council passed a resolution Wednesday, May 6, 2009 supporting the Work Force Housing Down Payment Assistance Initiative to stimulate the economy and create jobs. A request will be submitted to Neighborhood Stabilization Program (NSP) for funding for this multi-county proposal.
The American Recovery and Reinvestment Act (ARRA) of 2009 was passed by the US Congress with the goal of stimulating the economy and providing jobs for Americans. One of the principle drivers in the current economic crisis is the decline of the housing industry, resulting in increasing foreclosures, loss of jobs, and reductions in public and private revenues.
"This decline has led to thousands of homes being on the market," said Councilmember Dave Gossett. "Often homes are at depressed prices, further depressing the real estate market and increasing unemployment."
Snohomish, Pierce, King, and Kitsap counties have worked together with representatives of the non-profit and for-profit housing industry to develop the outline of the Work Force Housing Down Payment Assistance Initiative. The initiative targets moderate income families who earn too much for traditional financial aid.
The intent is to apply for $40,000,000 which would provide assistance to purchase between 3,000 and 4,000 homes. The end result is creation of a region-wide pool to provide down payment assistance to first time homebuyers who have demonstrated that they have pre-qualified for the necessary loan and only need down payment assistance.
"I put together the regional plan as a result of a Snohomish County sponsored economic workshop with the housing industry and business leaders several weeks ago," noted Gossett. "I felt NSP monies would help a significant number of Snohomish County families purchase a home."
The Puget Sound region has been concerned for a number of years over the issue of "workforce housing" which refers to the difficulty of working families in this region who have moderate means of affording homes in the communities where they work. By making the down payment assistance a loan, a revolving fund will be created which will allow the program to continue indefinitely into the future.
"This stimulus measure will spur economic growth with job stabilization and new jobs for those involved in the real estate, banking, and housing trades," said Gossett. "Creation of jobs in these industries will then create additional jobs in other industries. It's an important step in getting the economy moving again."