King County spends nearly $300K per unit of sales tax for homeless housing


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A recent report on King County’s homeless supportive housing initiative reveals that the county spends an average of nearly $300,000 in sales tax per housing unit.

King County’s Health Through Housing Initiative receives one-tenth of a cent of sales tax revenue for the purchase and operation of hotels to convert into emergency and permanent supportive housing. The county’s goal is to create and sustain up to 1,600 affordable and supportive housing units for homeless people through the program.

As of the end of 2023, Health Through Housing acquired 1,495 housing units, with 1,358 units currently in operation.

The report found that the average capital per-unit costs among the properties were $273,021 from 2021 to 2023.

The average annual operating costs for the properties last year were $20,759 per unit.

According to the Health Through Housing’s frequently asked question webpage, purchasing hotels during a depressed market averages around $270,000 per unit. In comparison, the average cost to build a new permanent supportive housing facility is approximately $400,000 per unit or more, depending on the location.

Health Through Housing's total 2023 revenue totaled $160.3 million, including $70.3 million in tax revenue, $85 million from bond proceeds, and $4.3 million in interest. The $160.3 million were approximately $2.4 million higher than in 2022.

In 2023, the county spent approximately $17.6 million on capital expenditures and $44.4 million on operating expenditures through the initiative. According to the report, that remains consistent with the initiative’s projected goals

From 2020 to 2023, the county acquired and contracted 16 sites across seven cities. 911 people were served through Health Through Housing in 2023, an increase of 108 people from 2022. 

Throughout the buildings, 480 people were permanently housed or moved on to permanent housing elsewhere through Health Through Housing resources. Out of the 480 people, 466 were chronically homeless. 

According to the July report, 91% of Health Through Housing residents in permanent supportive housing units maintained their housing or moved to another permanent housing destination.

The Health Through Housing 2023 report attributes the economic circumstances of the COVID-19 pandemic to allowing the initiative to grow the region’s stock of affordable and supportive housing units in months rather than years. This is due to the pandemic allowing hotels and apartments to become available for purchase at lower rates.

“I remain confident that Health Through Housing is a powerful component of our regional strategy to address the crises of affordable housing and chronic homelessness,” King County Executive Dow Constantine said in a transmittal letter to the King County Council. “I look forward to continuing to report on the initiative’s progress, and my staff will keep working to overcome these challenges as they bring more people inside.”