Dive Brief:
- Seattle officials unveiled their plan — which some refer to as a "grand bargain" between real estate developers and affordable housing advocates — to create 6,000 units of affordable housing in the city over the next decade.
- The legislation includes a commercial linkage fee, labeled the Affordable Housing Impact Mitigation Program, which mandates developers must pay a fee for each square foot of new commercial development. The money that comes from those fees — which will range from $5 to $17 per square foot — will be used to pay for the new affordable housing units.
- The plan also involves Mandatory Inclusionary Housing for new multifamily developments, which requires that between 5% and 8% of units be affordable for residents who earn up to 60% of the Area Median Income for 50 years. Currently, that figure would be $37,680 for individuals and $53,760 for families of four. If developers choose to construct the affordable housing offsite, they can opt to pay an additional fee.
Dive Insight:
On the developers' side of the bargain, the plan will result in the city looking into the possibility of increasing development capacity. In the downtown and South Lake Union areas, new developments would be permitted to have an extra 1,000 square feet on each floor. Outside of the main downtown area, new buildings would be permitted to add about one story.
Seattle Mayor Ed Murray said: "With this legislation, Seattle — for the first time ever — will require that all new development in the city will pay for affordable housing ... This is a bold, progressive proposal where growth itself will support affordable and environmentally sustainable neighborhoods."
The affordable housing plan was a reaction to rising rents and a lack of low-income options for Seattle residents. With the new plan, the rents for affordable housing units would be capped at $1,008 per month — a figure based on the affordable rate for an individual earning 60% AMI renting a one-bedroom home.
The "grand bargain" will now go to the City Council's Select Committee on Housing Affordability for review.
