By MBAKS Content Strategist James Slone

The Black Homeownership Initiative is working to close the homeownership gap.

In 2021, the Coalition for More Housing Choices joined a network of associations and organizations to launch the Black Homeownership Initiative with the goal of closing the gap between Black and white homeownership rates in Washington state.

The Coalition—representing a spectrum of nonprofit, business, civic, and labor organizations, including MBAKS— came together to develop a plan to build enough homes to accommodate regional growth in a way that “benefits current residents” and offers affordable housing choices.

The Black Homeownership Initiative was a natural outgrowth of the Coalition’s approach to housing with its strong focus on equity, seeking to align “infrastructure development, housing production and preservation, and underwriting and lending” to double the Black homeownership rate in the state.

They have their work cut out for them.

Mind the Gap

A history of exclusionary housing policies has meant that people of color and other minorities have been denied the financial equity, stability, and peace of mind that comes with homeownership—the basic building block of the American dream. The Black community has been especially impacted.

According to the Urban Institute, Black homeownership in the U.S. has not increased since the 1960s. Indeed, it’s actually declined 5% since 2011 versus just 1% of white households. These days, affordable housing is scarce for everyone, but for Black households, it’s even more elusive.

The situation is especially dire here in our own backyard. The Seattle Times recently reported that just 34% of Black people statewide own homes (compared to 68% of whites). In Seattle, it’s an abysmal 26%.

It is hardly surprising to learn that the median net worth of Black households in Seattle is just $23,000, compared to $456,000 for white households. Economic inequality means Black households are likelier than whites to spend more than half their income on rent and debt (e.g., student loans).

And even when they can save, their chances of being denied a home loan are much greater. An analysis by Zillow found that Black applicants were denied mortgages at a rate 84% higher than white applicants in 2020.

How did it come to this?

Racism’s Self-Fulfilling Prophecy

Black and other non-white people were kept out of most Seattle neighborhoods in the early twentieth century through zoning and racially restrictive housing covenants. While the U.S. Supreme Court struck down the covenants in 1948, lenders and real estate companies continued to discriminate through “redlining,” a practice of designating communities of color “high risk of default.”

Redlined maps determined which neighborhoods received favorable mortgages, interest rates, and refinancing. The result? Homes in Black communities hemorrhaged value, decent loans became hard to come by, and predatory loans led to defaults. The stigma of redlining also led to a loss of jobs, resources, and investment in these communities as capital—and white residents—fled to the suburbs.

The 1968 Fair Housing Act made racial discrimination illegal, but the resulting gap persists—Black households have less intergenerational wealth to pass on or equity to invest in new housing. While gentrification displaces Black residents, single-family zoning means that more affordable types of housing cannot be built in threequarters of Seattle neighborhoods.

(See “Codifying Prejudice” in the fall 2020 issue of Master Builder.)

Mending the Gap

There are signs that things are changing. Perhaps the most prominent recent example is the Africatown Community Land Trust, which has created affordable housing and cultural spaces in the Central District to mitigate the effects of gentrification and underinvestment in the historic Black community. Another recent initiative spearheaded by the Seattle Foundation’s Civic Commons seeks to help 1,500 Black households become homeowners across the Puget Sound over the next five years.

MBAKS supports the Black Homeownership Initiative because closing the gap is a crucial part of solving the housing crisis in the Puget Sound region—which will need to accommodate 60,000 new residents a year—and because it’s the right thing to do.

The Housing Development Consortium (HDC), which encompasses all major nonprofit housing developers in King County, is a leading partner of the Initiative as part of its mission to “ensure that all people live with dignity in safe, healthy, and affordable homes within communities of opportunity.”

Patience Malaba, executive director of HDC, laid out the stakes last June. “We have decades of racial injustice and economic inequality that has consistently, persistently led to disparities in wealth, specifically for BIPOC [Black, Indigenous, and People of Color] communities and disproportionately for Black households. One of the foundational steps in America to build wealth is homeownership.”

MBAKS’ Senior Policy Analyst, Allison Butcher, agrees. “The association recognizes the need to address race-based housing policies of the past to create a more inclusive future for our region. Part of the solution is creating more attainable housing choices for more people close to jobs, transit, schools, healthcare, and other amenities.”

The Initiative’s plan includes seven interrelated strategies to bolster Black ownership. These include marketing and outreach, pre- and post-purchase counseling, purchase supports and tools, changes in policies and practices, support for existing Black homeowners, and housing production to increase affordable homes.

MBAKS’ role, says Butcher, is “advocacy to enable more infill and more affordable ‘missing middle’ housing.” MBAKS sees increasing housing supply of all types as a key strategy to lowering home prices and barrier of entry for Black households.

Only the Beginning

The Initiative is off to a great start, but there’s still much to be done.

Currently most of the focus is on increasing the supply of and access to affordable homeownership. Looking toward the future, Initiative partners and the HDC hope to develop a policy framework that can be used to monitor and evaluate their collective efforts to increase homeownership opportunities.

Meanwhile, a Washington State Department of Commerceled Homeownership Disparities Work Group has developed recommendations for reducing the gap for BIPOC communities that intersects with the Initiative’s work. The report includes specific statewide recommendations that could be actionable in late 2022 or during the 2023 legislative session, creating additional momentum.

These are heartening developments. Solving the ownership gap means ensuring that everyone can find a home of their own. But to be lasting, it must go beyond up-zoning and legalizing more housing types.

It requires acknowledging the long history of racial discrimination that has narrowed homeownership options for Black people and actively working to overcome its grim legacies. Acknowledging that the gap exists—and why it exists—is an important step.

By MBAKS Senior Policy Analyst Allison Butcher

Building Permits Up in Pierce County

Pierce County is experiencing an uptick in permit activity this year, unlike King and Snohomish counties where permits remain flat or down compared to the same period last year. Specifically, single family permits are up 17 percent in Pierce County, while multifamily permits are up 93 percent through September.

The Builders’ Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, U.S. Census Bureau, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report:

Contact:
Stephanie Giralmo, Public Relations & Media Manager
Master Builders Association of King and Snohomish Counties
p 425.457.7067

FOR IMMEDIATE RELEASE

MBAKS Announces 2021 Award Winners

BELLEVUE, Wash., Dec. 9, 2021—The Master Builders Association of King and Snohomish Counties (MBAKS) announced the 2021 award winners at its annual year-end gala on Thursday, December 9.

Each year, MBAKS recognizes members in eight different categories: Spirit of Service, Emerging Leader, Moving the Market, Associate of the Year, Remodeler of the Year, Builder of the Year, Exceptional Service, and the MBAKS Hall of Fame Award. Winners are decided through an open member nomination and awards committee process.

Here are 2021’s winners:

Todd Levitt, Murray Franklyn Family of Companies, Bellevue, WA

Spirit of Service Award

The Spirit of Service Award recognizes an individual or company in the homebuilding industry that has demonstrated compassion and dedication through service. Volunteering time, talent, or ideas that empower or improve the quality of life of individuals, families, or groups in our community.

In 2021, Todd Levitt served as MBAKS President, where he made service his annual theme. In addition to his service to our industry, Todd also volunteers in the community, working with the Boy Scouts of America, Doxa Housing, and MBAKS’ Rampathon and Painting a Better Tomorrow community events.

Cameron Kartak, AAA Kartak Co., Everett, WA

Emerging Leader Award

The Emerging Leader Award recognizes up-and-coming members who have made significant contributions to MBAKS and the homebuilding industry. In addition, they demonstrate tremendous potential for future leadership and service.

Cameron Kartak has mentored members of both MBAKS and staff at his family-owned business. He has served as Membership Council Chair, Associate Director at Large on the MBAKS Board of Directors, and Finance Committee member.

Joe Schwab, Uniplex Construction, Redmond, WA

Joseph Irons, Irons Brothers Construction, Shoreline, WA

Exceptional Service Award

The Exceptional Service award is the highest recognition award for members and staff for their many years of professional leadership and/or exemplary service to MBAKS.

Joe Schwab, who served as MBAKS President in 2008, has always been incredibly committed to the success of MBAKS and all our members. He has shown the same dedication while advancing our industry’s priorities on state and national levels, providing a stable, consistent voice for homebuilding during good times and bad.

Joseph Irons, who served as MBAKS President in 2016, has always had a passion for giving back to the community. As a past chair of the Rampathon Committee, he developed and designed many of the standards and processes members use to build ramps today. Irons Brothers Construction has been building Rampathon ramps for neighbors in need since 2005.

Melissa Irons, Irons Brothers Construction, Shoreline, WA

Sandy McAdams | PWB Woman of the Year

Named after past MBAKS president, Sandy McAdams, who was the first woman president of our association, the recipient of this award is selected by their peers. It honors an individual who exemplifies excellence and commitment to making a difference.

Melissa Irons has been an active member of MBAKS and its councils for more than a decade, along with volunteering for leadership roles within those councils. She has been a proactive volunteer in MBAKS community stewardship programs for several years, participating in Rampathon and Painting a Better Tomorrow.

Evergreen Certified, Seattle, WA

Moving the Market Award, Built Green

The Moving the Market Award recognizes a person, business, or government entity that has taken actions or implemented programs that advance and expand Built Green certification, promote Built Green as a brand, and demonstrate a commitment to environmental stewardship.

For more than a decade, Evergreen Certified has worked with dozens of MBAKS builder members to help remove barriers that would prevent them from reaching for more sustainable practices. The company has verified hundreds of units and their projects have won both local and national awards.

Luellen Smith, Rhino Wine Cellars and Cooling Systems, Issaquah, WA

2021 Associate of the Year

The Associate of the Year award is dedicated to non-builder MBAKS members who have made an impact on the association and its work.

Luellen Smith has a long and accomplished tenure on the MBAKS Board of Directors, she has served as Secretary of the Finance Committee, and chaired the Membership Council, Membership Retention Committee, the REX/T-REX Awards, and Professional Women in Building Council.

Jennifer VanderBeken, VanderBeken Remodel, Marysville, WA

2021 Remodeler of the Year

The Remodeler of the Year award is presented to leaders in the remodeling industry, who display an exemplary talent in their work.

Jennifer VanderBeken’s artistry and skill as a remodeler have earned her numerous accolades, including two REX/T-REX Remodeling Excellence Awards in 2016 and 2020. She has also taken home the BIAW Excellence in Remodeling Award in 2019, 2020, and 2021, the National Chrysalis Award in 2018, and Best of Houzz Service Award.

Brian Holtzclaw, Village Life Homes LLC, Lynnwood, WA

2021 Builder of the Year

The Builder of the Year award doesn’t just go to members with exceptional building capabilities, but to those members who go beyond and are leaders within the industry.

Brian Holtzclaw, served as MBAKS President in 2020, works as legal counsel for Village Life, and represents the great citizens of Mill Creek as Mayor. When the State shut down in March 2020, he lobbied relentlessly alongside MBAKS and BIAW to convince Governor Inslee to reopen the construction industry. As a result, construction was the first major industry to get back to work in May 2020. Brian has had a distinguished career touching on every aspect of homebuilding.

Brian Ross, Oakpointe, Bellevue, WA

MBAKS Hall of Fame

The purpose of the MBAKS Hall of Fame award is to honor people who have made significant and lasting contributions to our association.

Throughout Brian Ross’ time at MBAKS, he has been a tireless supporter of sound housing policy and Government Affairs’ efforts to advance it. He remains active on the Affordable Housing Council board and his dedication and service to MBAKS is matched by his highly attuned business sense when it comes to housing and development.

For more information on this release, contact Stephanie Giralmo at sgiralmo@mbaks.com

About MBAKS

Founded in 1909 and headquartered in Bellevue, Washington, the Master Builders Association of King and Snohomish Counties (MBAKS) is the nation’s oldest and largest local homebuilders’ association. Like our founders, our members continue to take a leading role in all facets of homebuilding and support the planning for a growing region. From new technology to advances in sustainability, from collaborative public policy efforts to investing in our communities, our commitment to a thriving, inclusive and well-planned region never wavers. We are the professional homebuilders, architects, remodelers, tradespeople (carpenters, framers, roofers, plumbers, electricians), planners and engineers, suppliers, manufacturers, and sales and marketing professionals in your community who believe everyone deserves access to a healthy and productive place to call home.

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