A year and half ago, providers living in Seattle Housing Authority (SHA) sites started getting notices about requirements for them to sign new Home Based Business Contracts. SHA operates four low and mixed income housing sites in Seattle, and acts as the “landlord” to the residents there. Close to 100 SEIU 925 providers live in those sites, and the vast majority of them are Somali immigrants.
The new Home Based Business Agreements imposed some new, strict requirements. Childcare providers would be limited to operating only from 8 am to 6 pm. The restriction on the hours of operation prompted DEL licensors to shorten the providers’ authorized hours on their licenses, which interrupted the care that families relied on and was devastating to the providers’ income. The new requirements tripled the damage deposit and required providers to carry $1.5 million in liability insurance of $1.5 million. All of this was inordinately expensive and unnecessary. Additionally, SHA would require that providers submit tax returns, and property managers would make decisions on what would be allowable business deductions.
SEIU 925 providers demanded to negotiate with SHA over the new contract terms before implementation. Providers invited SHA managers to meetings and expressed to them how the new requirements created hardships on their businesses and families. Providers reached out to resident committees and SHA board to get their support.
As a result of the providers’ efforts standing together in our union, SHA made considerable changes to the original plan. SHA withdrew the restriction on hours of operation and lowered the requirement for insurance coverage. The extra damage deposit was cut in half, and providers will be able to pay this deposit in installments. Property managers will no longer act as IRS agents or licensors.
As a result of this process, the SEIU 925 providers have developed a better relationship that will help work out issues as they come up in the future. SEIU 925 providers feel more respected by SHA. The new Home Based Business Agreements will go into effect February 2012.
