Opal applies for state grant for housing project in Eastsound

OPAL Community Land Trust is pursuing a major affordable housing project for Orcas Island.

OPAL Community Land Trust is pursuing a major affordable housing project for Orcas Island.

At the May 10 San Juan County Council meeting OPAL Executive Director Lisa Byers laid out the need for a $200,000 Housing Enhancement Grant through the Washington Community Development Block Grant Program. The proposal to authorize the submission of these grants was adopted by the council.

“There seems to be a real deficiency at first glance of people making $35,000 to $80,000 a year being able to find affordable rentals,” Orcas County Councilman Rick Hughes said. “So, I think this will help at various levels with providing decent accommodations in the heart of the community.”

The grant would help fund a $8,857,227 residential complex consisting of 30 rental residences in seven buildings for households earning from below 30 percent to about 100 percent of the area median income, in accordance with low income housing tax Credit regulations, which are laid out in the info-graphic that accompanies this story. Three residences will be available for Section 811 rent subsidy, providing housing for people with disabilities referred by the Washington Department of Social and Health Services. Eight residences will give priority to homeless residents.

Housing has become a major issue for business owners in the county. “Captain” Hobbes Buchanan is trying to open two new restaurants in Friday Harbor. He has purchased the equipment and is renting the property for one restaurant, but due to the lack of affordable housing, the planned opening in May has been delayed two months until July. He estimates that the delay will cost him around $40,000.

“There’s just not the pool of people to choose from on San Juan Island, so you almost have to hire from off island, and having said that there’s almost nowhere for them to live,” said Buchanan. “And, I’m just asking the county for ideas. There are lots of people who want to live on the island but they can’t afford everything because vacation rentals are sucking everything up.”

A couple of factors seem to be driving the housing shortage. One, according to OPAL, is the advent of online vacation rentals to the island. Also, maintaining the rural character of the islands is often brought up in county council meetings. According to Buchanan and Mark Gero, owner of the Cask and Schooner, solutions like putting temporary home like a trailer on vacant land can be in violation of county ordinance. When asked about maintaining the rural character of the islands Gero said he wants housing and the pastoral feel to coexist.

“People like me come here to live here, and I don’t want it to turn into L.A.,” Gero said. “We are like a ski resort (in regards to seasonal employment), and what do they do?”

The things ski resorts do that Gero referred to are dormitory-style housing for seasonal staff. However Gero can’t afford to build such housing because of costs.

“We really need housing and everyone tells us to go build something,” Gero said. “But, then we have to raise prices (to pay for housing).”

Gero and Buchanan’s frustration isn’t lost on councilman Hughes. While this housing project isn’t a county project he supports any organization making efforts to ease the crisis.

“I applaud any organization county wide who is willing to take on a opportunity to fix a community need, and there is obviously a need county-wide for long-term affordable rental housing, so the fact that they (OPAL) are willing to take the project on is only going to strengthen the community,” said Hughes. “It’s a three-pronged issue that we have to take on. We need to have family-wage jobs, we need to have affordable rentals, and we need to have access to affordable day care; and the three of those things put together will make our community stronger.”

Plan Details

The plan for Orcs Islan outlines a complex in Eastsound on North Beach Road across the street from Children’s House and the Funhouse Commons to be completed, by fall of 2018. These residences will be phase one of the project, leaving nearly one acre for future development, which is expected to include 15 new units.

OPAL has already secured a pre-development loan of $85,000 from Impact Capital, a grant of $50,000 from Enterprise Community Partners and private donations and pledges of $290,000. The remaining funds will come from the Washington State Housing Trust Fund, low income housing tax credits, private donations and grants and a bank loan of $1 million.

The most recent housing development dedicated to rentals on Orcas were built in 2006, and before that, the last rental housing units were built was in 1990. Thirty percent of Orcas Island housing is renter-occupied. Less than 4.5 percent of Orcas Island’s housing stock is multifamily housing compared to 7 percent in all of San Juan County and 26 percent in Washington state, according to OPAL. According to the proposal’s documents submitted to the council, online vacation rental services have not only caused the price of rentals in San Juan County to go up, but have also made finding rentals on the islands nearly impossible, specifically low income housing. This has made it difficult for local employers to find prospective employees and keep the employees they already have according to OPAL.

“We need to be able to find places for people who are moving into places for the first time and have new jobs,” said Hughes. “Either as transitional housing until they find something that they want and the ability to have a decent rental place for their family.”