Congressman Adam Smith to Speak At Event On Aug. 10 to Praise Preservation of Affordable Housing Community in Federal Way.

SEATTLE--(BUSINESS WIRE)--Aug. 2, 1999--

Smith to Reinforce Need to Improve the Tools Available to

Develop Such Housing Through Passage of Pending Legislation

Congressman Adam Smith will acknowledge the efforts of the King County Housing Authority, the City of Federal Way, the National Equity Fund, and other partners at a ribbon-cutting celebration on Tuesday, Aug. 10 at 9 a.m.

The event will highlight the successful outcome of a joint effort that improved Laurelwood Gardens, a 91-unit multifamily apartment community, and preserved its affordability for low-income families. The event, which is hosted by the King County Housing Authority and the City of Federal Way, will be held near the playground at Laurelwood Gardens, 29505 21st Ave. South, in Federal Way.

Other featured speakers at the event include King County Executive Ron Sims, King County Council Member Peter von Reichbauer, Federal Way Mayor Ron Gintz, Federal Way City Council Member Mary Gates, HUD Secretary's Representative Bob Santos, and others.

Smith will talk about the importance of increasing the dollar amount available to states of two federal programs administered by states that financed Laurelwood Gardens: the low-income housing tax credit and tax-exempt bonds.

"The housing tax credit and tax-exempt bond programs are invaluable tools for community revitalization," said Smith. "As a result of the acquisition and rehabilitation of Laurelwood Gardens to the King County Housing Authority, for example, we now have a beautiful community that will remain affordable to lower-income families in South King County. This is a good example of why the tax credit and tax-exempt bonds are so important."

Legislation to increase the funding for tax credits and tax-exempt bonds is currently pending in Congress.

Built in the late 1960s, Laurelwood Gardens was originally privately owned and financed with a below-market interest rate loan from the U.S. Department of Housing and Urban Development in exchange for an agreement to operate the property as a low-income rent restricted development. The private owner's legal obligation to operate the complex as low-income housing expired in 1988. By 1996, the owner was prepared to convert the property to market-rate housing. At that time, the residents of Laurelwood Gardens asked the King County Housing Authority to purchase the property and preserve it as low-income housing. KCHA purchased the complex in 1997. By June 1999, more than $1.1 million in renovations to the property had been completed. The development, which is conveniently located near numerous stores and businesses, had been a likely candidate for purchase by investors who would have significantly increased rental costs.

"Preserving housing for lower-income families is fast becoming one of the most crucial needs in affordable housing," said Stephen Norman, executive director of the King County Housing Authority. "As more HUD mortgages come due, the greater the risk that affordable housing will be converted to market rate, seriously diminishing an already scarce supply of quality low-income housing in King County."

"Laurelwood Gardens is a testament to the critical role of local organizations in the effort to preserve affordable housing, and of such federal incentives as the Low Income Housing Tax Credit," said Michael Rubinger, president and CEO of Local Initiatives Support Corporation. "This also points up the need to increase these incentives, which is why we at LISC commend Congressman Smith and other members of the Washington state delegation who have co-sponsored legislation in Washington D.C. that provides for these increases."

KCHA administers a range of quality affordable rental housing programs for residents of King County, as well as providing homeownership opportunities to those for whom it would otherwise be out of reach. The Authority serves more than 11,000 households, including families, the elderly, disabled persons, and other special-needs persons.

LISC is the nation's leading community development support organization and the parent of the National Equity Fund, the nation's largest nonprofit housing credit syndicator. NEF invested more than $3 million in housing credit-generated corporate equity in Laurelwood Gardens.