Councilmembers introduce alternative to I-137 ahead of ballot deadline

Alternative seeks to better align with city housing efforts and build in accountability measures

Seattle City Councilmember Maritza Rivera (District 4) today introduced an alternative to proposed ballot Initiative 137 with Councilmembers Cathy Moore (District 5), Bob Kettle (District 7) and Tanya Woo (Position 8). In addition, Mayor Bruce Harrell has voiced support for voters having an alternative option on the ballot.

The alternative, Council Bill 120864, would amend the Payroll Expense Tax (PET) so that the Seattle Social Housing Developer receives $10 million annually, administered by the Seattle Office of Housing (OH), in dedicated PET funding for five years. This includes an option for future funding based on positive results.

"Make no mistake, we need more affordable housing in Seattle," said Councilmember Rivera. "This alternative measure balances the need for innovation with the need for accountability. It allows the Seattle Social Housing Developer, a new Public Development Authority, to demonstrate proof of concept, rather than the City simply handing over a blank check to yet another new agency with no track record of creating housing. As stewards of public funds, we are ultimately responsible for ensuring that taxpayers see the intended outcomes from this investment."

In the alternative bill, funding could be used to acquire, develop, or rehabilitate social housing and provide administrative support to the Social Housing Developer. It aligns this new social housing effort with the safeguards that apply to Seattle's existing affordable housing providers to ensure public dollars are spent wisely and effectively.

"I want to thank Councilmember Rivera for a thoughtful and truly viable alternative that will make social housing possible. I was pleased to co-sponsor this legislation," said Councilmember Moore.

Among other accountability measures, the alternative would require the Social Housing Public Development Authority (PDA) to have a chief executive officer, a chief financial officer and adequate financial controls prior to receiving capital funds; be subject to the Office of Housing Funding Policies, unless exempted in the ordinance; and provide annual data about how many housing contracts are being awarded and completed.

"I co-sponsored this legislation because it shows a level of good governance that I think the voters deserve. We need this kind of innovation in building affordable housing, but we must also provide the safeguards for taxpayer funds," said Councilmember Kettle.

The alternative gives the Social Housing Public Development Authority an opportunity to deliver housing in a timely, sustainable and cost-effective manner.

"As an affordable housing provider, I know we need more housing of all types," said Councilmember Woo. "We want social housing to succeed and provide an option to voters for it to be funded by a well-established source with proven safeguards and a strong legal foundation."

Background

I-137, as proposed, would fund the development of affordable, social housing through an additional tax on employers with workers who make more than $1 million per year. That money would fund the Seattle Social Housing Public Development Authority, that was approved by voters last year. More than 25,000 people signed a petition to send the I-137 to the ballot.

Next Steps

I-137 and the alternative legislation will be considered by the full council in a special meeting this upcoming Thursday, Sept. 19 at 2 p.m. If approved, both proposals will appear on the ballot in February 2025.

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