Funding for NeighborWorks network to boost Cantwell-supported affordable housing projects in Seattle, Spokane, Grays Harbor areas
WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA) announced that the NeighborWorks network, a Congressionally-chartered and funded nonprofit focused on building and restoring affordable homes while offering guidance to buyers and tenants, allocated $1,311,000 to affordable housing organizations in Washington state.
“NeighborWorks provides critical funding to build and preserve affordable housing at a time when we need it most. Since 2010, this Congressionally-chartered organization has helped over 8,000 Washington families find an affordable place to live,” Sen. Cantwell said.
The funding announced today includes grants to these organizations based in Washington state:
- Low Income Housing Institute (Seattle): $496,000
- HomeSight (Rainier Valley, Seattle): $352,000
- Community Frameworks (Spokane): $276,000
- NeighborWorks of Grays Harbor County (Aberdeen): $187,000
The funds will go toward the affordable housing developers to develop and preserve rental homes; build and repair affordable homes; manage affordable rental properties; counsel families and individuals on homeownership challenges; and train the affordable housing workforce. Last year, $1.62 million in funding for NeighborWorks helped support nearly 3,700 renters and first-time homeowners in Washington state.
Sen. Cantwell has been a longtime supporter of the NeighborWorks network, as well as affordable housing organizations in Washington state. This fiscal year, she helped secure $158 million for the organization. In February, she celebrated the grand opening of John Fox Place, a 104-unit affordable housing complex in Seattle’s Greenwood neighborhood built by the Low Income Housing Institute.
Sen. Cantwell is also the leading Senate proponent of a tax package that would significantly boost the Low-Income Housing Tax Credit (LIHTC) program. Since 1986, the Housing Credit has paid for more than 90% of the federally-funded affordable housing construction across the country, and has financed over 3.8 million affordable homes, including more than 100,000 in Washington state. Legislation approved by the House earlier this year on an overwhelming bipartisan vote includes two provisions authored by Cantwell to improve LIHTC, which together represent the most significant investment in affordable housing in the last 35 years.
One provision lowers the requirement for bond funding from 50% of a project to 30% of a project for developers to receive the tax credit, marking the first reduction in the bond test in 35 years. According to the Washington State Housing Finance Commission, this will allow the state to issue millions more worth of bonds and build nearly twice as many units as expected — an additional 1,500 units of housing financed in 2024.
The other provision restores a 12.5% tax incentive increase that originally expired in 2021. According to the Washington State Housing Finance Commission, this improvement will allow Washington state to fund 222 more affordable apartment units in 2024, and 600-650 units over three years. The increase will help the state allocate more funding for housing for the lowest income and most vulnerable people in Washington state, especially the homeless.
More information about Sen. Cantwell’s work to include an expansion to the LIHTC program in the bipartisan tax package is available HERE.
NeighborWorks America is a private nonprofit organization, established by Congress in 1978 as the Neighborhood Reinvestment Corporation. It supports and enhances a network of nearly 250 local and regional nonprofit partner NeighborWorks organizations that bring together residents, private-sector business leaders, and representatives of local government to create communities of opportunity.
In FY 2023, NeighborWorks America and the NeighborWorks network leveraged $9.95 billion in direct investment in communities across the country, providing 428,000 housing and counseling services, including:
- 16,300 homeowners created;
- 11,500 quality, affordable rental homes developed;
- 12,000 homes preserved through rehabilitation, counseling, and refinancing;
- 82,500 homes repaired;
- 204,600 quality, affordable rental homes owned and/or managed;
- 111,600 families and individuals counseled on financial capability, pre-purchase, post-purchase, or foreclosure issues; and
- 15,600 training certificates issued.