North Greenacres Neighborhood

NEIGHBORHOODS: FOR SALE OR RENT?

Apr 23, 2006

NEIGHBORHOODS FOR SALE OR RENT

There?’s an elephant sized housing problem that is begging to be recognized. Developments are overtaking former neighborhoods and rechristening them with names like Hidden Valley Ranch, Happy Trails, etc., things that resound of homey salad dressing or vast expanses of land with Lassie loping at your side. There?’s something else hidden besides the misleading names.

These catchy developments hold the dream of family homes, roots, friends talking over a fence, the fond familiarity of a stable neighborhood. Buying a home is one of the only ways most families accumulate wealth. People purchase their home fully expecting to live alongside others who will share their pride in ownership but buyer beware. Many of the homes in these developments are being sold to investors as rentals. New neighbors who recently bought into a nearby development, felt betrayed after assuming the assurances of all homes sold meant owner occupied, were transformed into streets lined with ?“For Rent?” signs as the ?“Sold?” signs came down. Typically, homes in a rental community will not appreciate as well, are not as well kept, and the investor?’s pride of ownership is displayed strictly in his bank account. Talk about buyer regret, to pay between $170,000 and $200,000 for a home only to find it?’s a glorified apartment complex but apartment complexes offer more green space. What is more ironic is the notion this is affordable housing.

Contacting some nearby rental properties, three bedroom houses rented between $1,000 and $1,300 a month. A 2004 study conducted by the National Low Income Housing Coalition found that a Spokane County household must have an income of $21,070 to afford (pay 30% of their monthly income) a two-bedroom unit that rents at $525.
One land baron offered if that was too steep, he also rented homes at $400 per bedroom. What in the world would cause someone to hatch a rental matchmaker scheme? If this is new trend, it?’s an even larger indicator of the housing crisis.

?“Empty Nest Syndrome?” has been declining as the ?“Nothing to Feather a Nest Syndrome?” is bringing children back home. The Spokane Housing Authority reports they have 5,000 families on their Section 8 waiting list, and the waiting list is closed. According to the 2000 census, nearly one-third of the households in Spokane County make less than $25,000 annually and that 47% of Spokane County renter households pay more than 30% of their household income for rent and utilities. Twelve percent of the population, live below the federal poverty threshold ($17,603 for a family of four). Even at Spokane Valley?’s average annual income of $39,000 for a family of four, there?’s little leeway for savings or a mortgage

Another obstacle to affordable housing is while government cannot curtail investors from cornering and inflating the rental market, the average homeowner is prohibited from being able to provide an apartment over their garage or building a small cottage for a struggling family member or to help keep on top of their bills. Here?’s the double standard ?– the rationale is to prevent rental spaces in neighborhoods. You can put a temporary shelter, such as manufactured home on your property for a disabled relative but you have to provide medical proof annually.

Property taxes has dramatically risen and we?’ve been condemned by association to higher valuations. If you intend to live in your home, it doesn?’t matter how much the market says its worth. Idaho has tried to protect homeowners from losing their homes by a new law that allows you to exempt $50,000 of your primary home value from property tax. This should be a priority item for Washington legislators.

There are some good developers. Greenstone Homes has a contractual clause that tries to deter investor driven home sales by requiring any profit gained from selling within the first year must be paid to the builder. They are unique in their vision of building planned communities. They stay with the developments after they are built, and their reputation for value and ingenuity is noteworthy, carrying their expertise into the arena of weighing in on affordable housing. Jason Wheaton, President of Greenstone testified recently, ?“Development is a privilege not a right.?”

Central Valley School District should be lauded for their continued efforts to bring accountability by demanding impacts fees for new schools. All the Spokanes, County, City and Valley hold fast to no action on charging developers their fair share. The Washington State Legislature passed a law allowing municipalities to give incentives to developers to build affordable housing. That?’s scarry, what else won?’t they have to pay for? They don?’t pay any impacts that are causing us to need new schools. parks, roads, police and something more than toilet paper. While we don?’t want to become communist America, it is possible to mandate affordable housing. It?’s done in other parts of the country. Unaddressed, we all pay for this problem in some way.

Once, I was given a recipe for elephant soup. Take one elephant, two optional rabbits, and salt and pepper. Then, cut it all up into bite size pieces, cover with gravy and cook for about a month. It served 3,800 people but don?’t add the rabbits unless necessary. Most people don?’t like ?‘hare?” in their soup. Isn?’t land development a bit like elephant soup? Parcels are cut up into small pieces, houses of varying sizes of uniformity are planned, a few gravy features are added to taste, and the house is cooked up in about a month, but be careful. There may be a ?“hare?” in the soup.