Category: Transit

It’s Time to Make the ORCA Passport Program Work for All

If you have an ORCA card, there’s a good chance you got it through your employer or your apartment building. The largest group of ORCA users get their pass that way, taking advantage of one of two “Passport” programs (ORCA Business Passport Programfor employers and the Multifamily ORCA Passportfor apartment-dwellers).

Either way, you are a beneficiary of the most effective transit pass program in the system. In 2017, King County brought in $76 million in revenue from the ORCA Passport programs for approximately 35 million boardings.

The ORCA Passport Program is both effective in getting people on transit and popular, but unfortunately, it doesn’t serve most low-income people. In 2016, Capitol Hill Housing (CHH), a city-wide affordable housing developer and community development organization, surveyed people living in apartments along Pike Street. We found that in market rate buildings, 68 percent had an ORCA pass subsidized by their employer. In contrast, only 22 percent of the residents in affordable housing buildings had Passports.

Far fewer affordable housing residents are offered an ORCA Passport by employers. These residents must resort to more expensive individual passes or walking long distances to work, school or appointments.

To address this disparity, in 2016-17 CHH piloted an expansion of the ORCA Passport programin affordable housing. The project, funded by Seattle Department of Transportation (SDOT) and Enterprise Community Partners, enabled  57 households in three CHH buildings making below 60 percent of the area median income (roughly $60,000 for a family of four) to purchase ORCA Passports at under $20/month, the same amount or slightly more than what many local employees pay for their Passports through work or their apartment building.

The pilot tested three things:

  • Would affordable housing residents making $20,000-40,000/year pay $10-20/month for an ORCA Passport?
  • How much they use the Passport once purchased?
  • Would the program be easy for an affordable housing provider to administer?

The results of pilot were illuminating. More than half of our residents participated in the program and they used it A LOT, an average of 43 trips per month, 80 percent above what KC Metro models anticipated. And the program was easy to administer. Each month, we collected the rider share of the cost via the same mechanism by which we collect monthly rent.

Our residents loved the Affordable ORCA Passport Pilot. It made it easier for them to connect to jobs, healthcare, and opportunities in our city. Here’s a sample of quotes from participants:

“Makes my family feel normal and connected to public transportation, allowing my family to have extra funds to apply to other household cost(s).”

“Please keep it funded and going! I decided not to keep my car and just use this $10 pass and walk. Loving it and saves me money.”

Unfortunately, the pilot ended in 2017. CHH is pressing for an expansion to affordable housing residents across King County. Other housing organizations, including Seattle Housing Authority, King County Housing Authority and the Housing Development Consortium, support an expansion. King County Council has also received letters from Forterra, Futurewise, the Transit Riders Union, the Mayor of Tukwila and the North Urban Human Services Alliance Board, among others.

Advocacy is working. Last month, the King County Council passed a motion that instructs Metro to address transit access and affordability for affordable housing residents, as well as youth and community college students. The projected costs of these strategies will inform the Council’s Fall budget deliberations and could lead to a major expansion of transit access to low-income households.

Motion 2018-0255 is open ended. One big question is how an expanded Affordable ORCA Passport program would be funded. Based on our estimates, the cost should not be prohibitive. The subsidy cost to serve three CHH buildings for a year was under $35,000. We suggest the County create a $1M pool of funds to launch a robust Affordable ORCA Passport program County-wide and target households making 60% of the area median income and lower-income buildings near transit.

There is still a lot left to figure out, which is why Metro’s work under the motion is so important. It directs them to price options for Council consideration in the Fall budget cycle, allowing for a more nuanced discussion of how we can better connect low-income residents to public transit.

An expansion won’t be simple, but folks are willing to roll up their sleeves to figure it out. Mayor Allan Ekberg of Tukwila writes: “The City welcomes the opportunity to participate in conversations about this expansion and how Tukwila might both contribute to its success and benefit our constituents.”

This is a pressing issue that affects all parts of King County, not just Seattle. In a letter to Councilmember Dembowski, the North Urban Human Services Alliance Board, which includes the Cities of Shoreline and Lake Forest Park, laid out a case that could be made for cities throughout our County and underscores why this should be a high priority for Council and Metro going forward:

“As you well know, North King County is growing rapidly. All of the NKC cities are investing in transit infrastructure.  And all of these cities and the County are spending millions of dollars to build affordable housing near transit  hubs. We want to be sure that the folks who live in those buildings can afford to ride transit to school, jobs and other services.  Fixing the ORCA Passport is a logical step towards meeting this goal.”

 

Tap ORCA Here: When Transit and Housing Access Collide

It's great, I can't ride my bike everywhere_web

“It’s great, I can’t ride my bike everywhere.”

 

Transit Access Is An Equity Issue

After housing, transportation is the second highest cost for most people.  The Center for Neighborhood Technology estimates that households in the Puget Sound Region spend about 19 percent of their income on transportation.  Living in a central, walkable, transit-rich neighborhood like Capitol Hill can help households save a lot on transportation expenses by driving less or not even owning a car – one of the reasons that Capitol Hill Housing believes it is so important to provide affordable housing in neighborhoods like Capitol Hill. However, for many low income people, the regular cost of using transit is still unaffordable.

In 2014, we surveyed over 300 Capitol Hill households about their transit expenses.  We found that while 42 percent of households in market rate buildings had all or part of their transit passes paid for by their employer and school, only 16 percent of households in affordable housing received similar help paying for transit. We wanted to change this for our residents.  An opportunity came when we learned about King County Metro’s new Multi-Family Passport program that allows property managers to offer the same subsidy and discounts as employers.  Unfortunately, we didn’t have the money to contribute our share to the subsidy.  Luckily, SDOT agreed to step in and cover those costs in 3 buildings as a pilot project.

"We love the light rail and the streetcar and go more places than you would think."

“We love the light rail and the streetcar and go more places than you would think.”

 

How Affordable Housing Providers Can Tackle Climate Change

Promoting transit use has other benefits as well. If affordable transit passes reduce driving, that reduces greenhouse gas emissions.  Driving just recently surpassed power plants as the biggest source of greenhouse gas emissions in the United States.  Transportation is an even bigger contributor to emissions in Seattle because we get most of our electricity from hydro power.  If we want to tackle climate change, we need to reduce emissions from driving in ways that also have positive impacts for low income people.

GHGEmissions

Last but not least, transit pass can help reduce housing costs associated with parking.  If transit passes reduce the need for our residents to own cars, we won’t need to build as many expensive parking places.  The average parking garage space on Capitol Hill costs about $33,000 to build.  If our residents no longer need parking in our existing buildings, through our district shared parking program, we can rent out those unused spaces to generate revenue that helps support building maintenance and operations.

How Does the Affordable Housing Transit Pass Program Work?

With funding from SDOT, Capitol Hill Housing was able to purchase transit passes for residents of three of our income restricted apartment buildings, totaling 122 units.  Residents who wish to participate pay 50% of the monthly cost, which is $10, $16, or $17 depending on the building.  This compares with $117 per month for a standard individual pass or $55 per month for a standard individual low income fare or LIFT pass.  Payment for the card is processed along with rent.  Passes completely cover unlimited trips on all local transit including Metro, Sounder Train and Light Rail.

"Please keep doing this. We love it."

“Please keep doing this. We love it.”

Preliminary Results

  • Over 50% of passes sold.
  • 52% of participants previously had a card for which they paid 100% of the cost
  • The small administrative burden is small (less than 4 staff hours per month)
  • We have received anecdotal reports of over $100 in monthly savings by some participating households

Capitol Hill Housing will conduct a comprehensive evaluation of the program in early 2017.

Expanding the Program

Everyone in Seattle should have affordable access to transit.  An expanded Affordable Housing Transit Pass program would leverage affordable housing providers to connect more low income people to low cost transit options.  We hope that by continuing to work with King County Metro, the Seattle Department of Transportation, other affordable housing providers, our residents, and the community at large we can expand this program to eventually serve all affordable housing properties in the city.

"It's an amazing deal. Thanks for setting this up."

“It’s an amazing deal. Thanks for setting this up.”