The Comprehensive and Scalable Starter Home Production Plan

Housing Finance Commission’s Coordinated Action to Address Growing Disparities in Homeownership Across Washington State 

In 2023, the Washington State Legislature passed the Covenant Homeownership Act that created the Covenant Homeownership Program, overseen by the Washington State Housing Finance Commission (WSHFC). The broad aim of the program was to address the growing disparities in homeownership across the state by providing access to mortgages for home buyers that had been historically shut out of the market. As the program started up, it shined a bright light on a supply-side problem: there were simply too few affordable homes on the market for first-time homebuyers to buy. The state stands at a critical housing crossroads where housing development and land costs greatly outstrip household incomes for most Washingtonians. The solution called for bold, coordinated action to address this complex and multifaceted problem.

Collaborating with Community Partners to Build a Road Map for a Solution

MFA joined with the team at the nonprofit Civic Commons to help the WSHFC build a road map for a solution. The solution needed to not only address interrelated barriers in land use and development, policy and regulation, financing, and workforce, but also appeal to market actors on all sides of the equation: policymakers, developers, manufacturers, regulators, prospective buyers, property owners, and the public. The overall aim of the resulting Scalable Starter Home Production Plan is to increase the supply of high-quality, affordable starter homes across Washington state. 

Developing a Scalable Plan and Systems-Based Framework

The Plan contains two “playbooks.” The Ecosystem Playbook includes seven strategies—or plays—that would not only address barriers and risks but also support other plays. The plays included establishing a systems-based framework, cultivating systems-based developers, adopting statewide standards, financing infrastructure for factories and systems-based developers, activating land clearinghouses, enhancing existing legislation, and fostering industry inputs. 

The Demonstration Program Playbook outlines the strategic framework for implementing a demonstration project that will evaluate the viability of systems-based development with offsite construction methods. The goals of the playbooks are to reduce time-to-market for affordable homes, reduce costs, rapidly increase the rate of homeownership, create jobs, and position Washington as a national model for housing innovation. MFA staff conducted market research, coauthored the Plan and Ecosystem playbook, facilitated the project, provided the graphic design, and finalized project deliverables.

Outcomes and Ongoing Efforts for Equitable Pathways to Homeownership

The Plan and playbooks, available on the Comprehensive and Scalable Starter Home Production Plan website, provide practical guidance for the multi-year effort to create equitable, efficient, and economically beneficial pathways to homeownership.