Seattle Social Housing Is on the February Ballot

The goal of Seattle’s new social housing developer (Seattle Social Housing) is to complement existing housing efforts by creating affordable, high-quality, and sustainable housing for a wider range of residents than other affordable housing is designed to serve. 

On February 11 Seattle voters will make the critical decision of how to fund Seattle Social Housing. 

Here’s what you should know:

Seattle voted for social housing.In 2023, 57% of voters made clear their commitment to expanding housing options for all people in Seattle by voting for I-135, establishing Seattle Social Housing as a public development authority. Its purpose is to develop, own, lease, and maintain housing for individuals and families who make up to 120% of the area median income (AMI) and create housing that is permanently affordable and owned as a public asset forever. Traditional affordable housing typically only serves people up to 80% of AMI. 

Now, Seattle needs to decide how to fund social housing.

Seattle Social Housing received about $850,000 from a combination of start-up support from the City of Seattle and funding from the state. Now, the long-term sustainability and funding structure is up to voters. 

Proposition 1A and Proposition 1B are the two funding options for social housing in Seattle.

Proposition 1A would fully and solely fund Seattle Social Housing allowing it to move quickly on building and acquiring social housing at scale. It would rely on a small excess compensation tax on companies and generate about $53 million each year. The funding under 1A would go toward buildings housing people making up to 120% of AMI. 

The alternative, Proposition 1B, would use money currently allocated to affordable housing providers from the JumpStart Payroll Expense Tax. Seattle Social Housing would receive $10 million a year (for a maximum of 5 years) and could only use those funds to serve residents making up to 80% of AMI.  

Social housing is publicly funded housing that will be owned as a public asset forever. If 1A passes, Seattle Social Housing would be financed by a small excess compensation tax on companies who pay more than $1 million in compensation to any single employee. This approach makes housing more cost effective as it is not encumbered by interest rates, fees and limitations set by commercial lenders.

Flexible funding means more housing for all. Social housing seeks to supplement affordable housing by offering economical housing options for residents who often are rent burdened or priced out of market rate rents, yet don’t qualify for affordable housing. A flexible and comprehensive funding mechanism would mean greater opportunity to create a Seattle that is more accessible and vibrant!