Local Leaders Could Start Fixing Washington’s Housing Crisis Now, If They Wanted

Washington State is facing a serious housing crisis. Home prices are rising faster than incomes. Many people, especially workers like teachers, nurses, and firefighters can no longer afford to live in the communities they serve. Rents are high, homes are scarce, and the people who keep our cities running are being pushed out.

State law allows local governments to add a small sales tax, just one-tenth of one percent, to raise money for affordable housing. This does not require a public vote. County commissioners or city councils can choose to do it on their own. The tax does not apply to food or medical supplies, and it could create a local fund that reinvests in the community.

The idea is simple: use this small sales tax to start a housing development fund. The fund would give low-cost loans to developers and builders who agree to create affordable housing. Cities could also borrow from the fund to buy land or install utilities. These loans would be paid back over time, and the money would return to the fund. Eventually, it would no longer need the tax to support it. When the fund becomes self-sustaining, the tax should end.

This fund would work like a revolving account. The money goes out as loans, comes back with interest, and goes out again to support more housing.

Once enough money builds up, counties could use the earnings from these loans to help people buy homes. For example, the fund could offer help with down payments or lower mortgage interest rates. This support could be targeted to essential workers like teachers, nurses, and emergency responders. To keep the homes affordable, any assistance would come with a covenant that limits how much the home could be sold for in the future. A simple rule could be that the home can only be resold for the tax-assessed value plus ten percent. That would allow modest gains without pricing out the next buyer.

It’s true that sales taxes hit lower-income families the hardest. Washington doesn’t allow for an income tax, so this kind of funding relies on what people spend. That’s not ideal. But if the money raised is used wisely by creating housing that working people can afford, then the system can give something valuable back. Some counties could go further by offering rebates or credits to help lower-income residents offset their share of the tax.

If every county in the state adopted this model, Washington could create a network of local housing funds that grow over time and support both renters and future homeowners. These funds would build housing, keep it affordable, and help the people who serve our communities live in them again. It’s not a silver bullet, but it’s a smart, realistic way forward we can begin right now.