King County Executive Dow Constantine on May 19 proposed a new partnership with the King County Housing Authority that would develop or acquire more than 2,000 units of affordable housing with low-cost financing made possible by the county’s excellent credit rating.

Under Constantine’s proposal, the King County Housing Authority, using the county’s triple-A credit rating, could develop or preserve up to 2,200 units of affordable housing over the next six years in strategic locations, such as near mass transit or high-performing schools.

“To ensure a strong, thriving middle class in our region, we must have more housing that is both affordable and connected to opportunity,” said Constantine.

“By joining forces with the King County Housing Authority, we will deliver more than two thousand units of affordable housing countywide – near mass transit and in vibrant neighborhoods.”

Changes in banking practices in recent years have made it difficult for King County Housing Authority to get low-cost financing, despite a solid financial track record.

With King County guaranteeing the loans, the authority will be able to get a line of credit from banks, to acquire property sooner while it’s still relatively affordable.

“This partnership leverages the county’s credit authority to support the county’s social equity and smart growth agenda,” said Stephen Norman, Executive Director of King County Housing Authority.

“County government’s support enables KCHA to work with the market to set the stage for the long term social and economic health of the region.”

Constantine and Norman have directed their staffs to negotiate the details of this agreement, which will need to provide flexibility for the Housing Authority to act quickly while ensuring the protection of the county’s bond rating. A detailed proposal is expected in the summer.

The initiative would expand a partnership that over the past 20 years has helped the Housing Authority acquire more than 2,000 apartments that are affordable to working families.

Also on May 19, Constantine presented to the county council his plan to invest $48 million in transit-oriented development.

Using new authority granted by the Legislature, King County will borrow against future revenue generated from lodging taxes to pay for the investments.

In February, Constantine announced $7 million for capital projects that will create an additional 237 units of affordable housing, including units reserved for military veterans and residents who have previously been homeless. He also announced $10 million for services that help families and individuals remain in housing through case management, help finding employment and other services.

Follow the actions of the County Executive Dow Constantine and the King County Council at www.kingcounty.gov/elected/executive/constantine.aspx and at www.kingcounty.gov/council.aspx.