2M loan proposed for early boost to Seattle Social Housing Developer

Mayor Bruce Harrell proposed a $2 million loan to support the Seattle Social Housing Developer in its efforts to provide a wider variety of public affordable housing. Harrell highlighted the importance of increasing housing supply and diversity, stating that the loan will facilitate planning and operational success. This funding aims to sustain the developer's core functions and enable property acquisitions until revenue from a recently approved employer tax becomes available. The new 5% tax on companies compensating employees over a million annually is projected to generate approximately $50 million each year to fund public housing initiatives. Initiative 135, which established the Social Housing Developer, received strong voter support in February 2023, with 57% approval.

However, the initiative lacked immediate funding due to restrictions in the state’s initiative process. The Seattle City Council will now consider the loan proposal in the Finance, Native Communities & Tribal Governments Committee. The developer has already begun operations with initial funding, hiring its first CEO, Roberto Jiménez.