SEATTLE — In February, Seattle voters will decide on how to pay for affordable housing after the city council voted to refer Initiative 137 and a proposed alternative to the special election ballot.
As proposed, I-137 would fund the development of affordable, social housing through an additional 5% tax on employers with people who make more than $1 million per year.
The council's proposed alternative would amend the current Payroll Expense Tax to provide the Seattle Social Housing Developer with $10 million a year for five years - with an option for further funding based on results. However, it would pull money away from JumpStart, the city's largest source of funding for affordable housing.
The proposed Social Housing Payroll Tax under I-137 could fund 2,000 units of social housing in 10 years, according to supporters. The money would be used to construct and acquire buildings, along with funding operations and maintenance while increasing staffing of the Seattle Social Housing Developer.
In the alternative, introduced by Councilmember Maritza Rivera along with council members Cathy Moore, Bob Kettle and Tanya Woo, housing would be delivered in "a timely, sustainable and cost-effective manner," according to a statement from the city council. It would require the Social Housing Public Development Authority to have a CEO, CFO and "adequate funding controls prior to receiving capital funds." It would be subject to housing funding policies and would be required to provide annual data on progress being made.
The initiative and alternative will appear on the ballot for the Feb. 13, 2025 special election.