Affordable housing leaders address funding challenges and policy impacts at Seattle forum

Seattle's City Council Select Committee on Federal Administration and Policy Changes convened on April 3, 2025, to address pressing issues surrounding affordable housing and homelessness in the region. A key focus of the meeting was the impact of federal policies and funding on local housing initiatives, particularly in light of recent budgetary constraints and staffing cuts within federal agencies.

Council members and experts discussed the necessity of creating a rental subsidy reserve and increasing financial guarantees to support affordable housing developers. These measures are crucial as rising costs and tariffs on essential materials, such as lumber and gypsum, continue to challenge the financing of housing projects. The discussion highlighted that 72% of imported lumber comes from Canada and 74% of gypsum from Mexico, making local housing production vulnerable to international trade fluctuations.

Jess Blanch from Enterprise Community Partners provided an overview of the current federal policy landscape, noting that the recently passed continuing resolution maintains funding levels for various programs but falls short of what is needed to adequately support homelessness services. The resolution includes $168 million less than required to sustain these services, which could leave thousands of families at risk of losing rental assistance.

The meeting also addressed the implications of recent executive orders affecting community development financial institutions (CDFIs) and the potential for further cuts to essential programs like the Low-Income Home Energy Assistance Program (LIHEAP). With Washington state receiving approximately $66.5 million in LIHEAP funds for FY '24, the uncertainty surrounding federal staffing and funding could jeopardize support for low-income households.

James Lovell, interim CEO of Chief Seattle Club, emphasized the unique challenges faced by Native American communities in Seattle, where a significant percentage of the chronically homeless population identifies as Native. Lovell highlighted the importance of culturally relevant housing solutions and the critical role of federal funding in expanding their capacity to provide services.

As the committee concluded, the urgency of advocating for increased federal support was clear. With the upcoming fiscal year 2026 appropriations on the horizon, stakeholders are mobilizing to ensure that funding for affordable housing and homelessness assistance is prioritized. The discussions underscored the interconnectedness of federal policies and local outcomes, emphasizing the need for sustained advocacy to address the housing crisis effectively.