(The Center Square) – Seattle voters are set to decide on dueling social housing measures in the upcoming February special election.
House Our Neighbors, a community campaign, successfully gained enough signatures to place Initiative 137 on the ballot. Seattle City Council halted approving the initiative for the November ballots in order to create a counter measure.
The Seattle City Council approved its counter ballot measure on Thursday with a 6-1 vote. Seattle City Councilmember Tammy Morales voted in opposition to the counter measure. Councilmembers Cathy Moore and Dan Strauss were not present for the vote.
Initiative 137 would place a 5% compensation tax on companies that pay over $1 million a year on Seattle-based employees. At least 95% of tax revenue would be allocated to the Seattle Social Housing Developer.
Up to 5% of the tax revenue would be allocated to administer the tax, but the amount to administer the tax cannot exceed $2 million per year.
The city council’s counter ballot measure would amend the city’s JumpStart Payroll Expense Tax in order for the Seattle Social Housing Developer to receive $10 million on an annual basis over five years. There could be future funding if the developer sees positive results.
The funding would be used to acquire, develop, or rehabilitate social housing and provide administrative support to the Seattle Social Housing Developer.
The $10 million in annual funds is 19.2% of the $52 million proponents of the original I-137 estimate that the tax would generate each year.
The alternative ballot measure would use payroll expense tax funds for units up to 80% of the area median income, whereas all other developers are restricted to 60% of the area median income restrictions.
I-137 would set rent rates at social housing units to be no more than 30% of the household’s income. So if a tenant were to make more money, then said tenant would see their rent adjusted to continue to match the 30% rate. There is no time limit on how long a tenant can stay at a social housing unit.
The Seattle City Council cited struggles with the Seattle Social Housing Developer since voters approved the creation of a new public agency to develop, acquire, and maintain social housing in the city in February 2023.
Seattle City Councilmember Maritza Rivera said the alternative measure ensures accountability of the agency’s work to create more social housing.
