Housing Authority of Snohomish County briefs Lynnwood council on financing, pipeline and local project plans

Lynnwood — The Housing Authority of Snohomish County (HASCO) outlined how federal tax credits, state gap funding and private investors combine to finance most U.S. affordable housing, described why construction costs are high, and reviewed plans for a Lynnwood project during a City Council work session on June 18.

Laurie Olsen, incoming chief executive officer of the Housing Authority of Snohomish County, told council members that the Low-Income Housing Tax Credit program (LIHTC) and related financing remain central to producing affordable units. "The Low Income Housing Tax Credit program is actually a program administered by Treasury and the IRS," Olsen said, describing how banks and other investors use tax credits as equity to make deals feasible.

Olsen and Chris Collier, program manager for the Alliance for Housing Affordability and soon-to-be director of government relations at HASCO, walked council through the long history of funding mechanisms — including the Community Reinvestment Act, Community Development Block Grant and HOME programs — and the practical effects of that layered finance on local projects. Olsen said the state capital budget recently included roughly $600 million in gap…