Downtown Low Income Housing Preserved

by Sharon Maeda

When I joined the UFCW 21 staff three years ago, I had no idea that I would be able to continue my longtime work around low income housing. Visionary leaders in the Retail Store Employees Union Local 1001 (now part of UFCW 21) launched a plan in 1979 to create housing for their retirees. They acquired land in Seattle’s Denny Regrade near their union hall and the Labor Temple, and walking distance to the downtown stores where 3,000 of their members worked.

By 1981, they had created a nonprofit housing development association, constructed an 82 unit apartment building and called it Sunset House after the stunning sunsets seen from the west side of the building. They received a HUD Section 8 designation which supplements the residents’ rent; residents pay one third of their income, no matter how low that income might be.

Over the years, the union moved away from the neighborhood, and the downtown retail core diminished. By 2008, there was only one union retiree still living at Sunset House and the building was in need of a lot of maintenance and renovation. While UFCW 21 wanted to remain engaged in supporting affordable housing, it is clearly not its core business and downtown Seattle is no longer a base for its membership.

The union’s bottom line was to preserve the 82 units of low income elderly and disabled housing. When I walked developers through the building, they talked about new granite counter tops and creating balconies on the west side of the building. It became clear that offers were tied to the fact that the HUD contract would expire in early 2011, thus allowing a new owner to drop HUD and evict the existing residents. The last thing Seattle needs is 82 more low income folks in need of affordable housing. So, we focused our marketing to nonprofit developers.

We developed a partnership with the Housing Resources Group (HRG) that already owns and operates some 40 low income buildings as their sole mission. During 2010, HRG served as Sunset House property managers, while putting together the financing package for purchase. The residents were brought along on the transition and have already begun their temporary moves to allow the renovation to begin the minute the sale closes.

It is a total win situation: We were able to ensure the preservation of low income housing, HRG was given a year to put together the complex financing strategy, and most importantly, the residents will have a renovated home in downtown Seattle. With the HUD renewal for another 20 years, this partnership is guaranteeing 598,600 bed nights for elderly and disabled Seattleites. And, with HRG’s multimillion dollar renovation, the life of the building will be extended well beyond these next two decades.

UFCW 21 is proud of its predecessor union’s visionary leadership and 30 years of providing housing for many of Seattle’s most vulnerable citizens. Selling Sunset House to HRG will ensure that the legacy will continue.

Sharon Maeda is a PSARA member and Special Projects Director at UFCW 21. She is a former HUD official in the Clinton Administration and was a member of the Retail Store Employees Local 1001 while a UW student.