Includes $25 Million for Affordable Housing

Yesterday, Mayor Jenny A. Durkan released her 2020 Proposed Budget. In the second year of the two-year budget biennium, this budget maintains core services while at the same time increasing investments in five key priorities: affordable housing, homelessness, youth opportunity, transit and transportation and public safety.

You can view the Mayor’s 2020 Proposed Budget at: www.seattle.gov/budget. You may also read a transcript Mayor Durkan’s of speech and view the video.

Continuing action on her Housing Seattle Now plan to tackle Seattle housing crisis, Mayor Durkan’s Proposed Budget makes substantial investments to address our critical need for affordable homes as part of her 2020 budget.

The plan, Seattle Housing Now, includes four key priorities:

• Increase opportunity and access to family wage jobs and shared prosperity;
• Build more housing for low- and middle-income earners, and for people experiencing homelessness;
• Address displacement and prevent eviction so Seattle residents can stay in their current housing and community; and
• Secure new tools and resources for the City to address housing in new, innovative ways.

As part of Housing Seattle Now, Mayor Durkan transmitted and City Council approved legislation for the sale of the Mercer Properties, which includes $143,500,000 in cash proceeds, including transformational housing investments outlined in her budget.

The affordable housing investments detailed in Mayor Durkan’s Budget include:

• A total of $25 million in Real Estate Excise Tax (REET) for capital investments in affordable housing for low-income households through 2025 by utilizing a new state law passed in 2019 (HB 1219).

• 175 new Permanent Supportive Housing (PSH) units and funding for the associated Operating & Maintenance subsidies needed.  The Washington State Legislature passed a local option housing bill (HB 1406) that allows Seattle to retain $4.5 million annually in local sales tax for 20 years, including bonding against revenue, to build or support new affordable homes..

• $15 million for Permanently Affordable Homeownership from the Mercer Properties proceedswith $12 million dedicated to nearly double city-regulated permanently affordable homes and up to $3 million to seed an employer-funded program to support permanently affordable homeownership for middle-income Seattle workers.

• $6 million for a pilot loan program to create affordable Accessory Dwelling Units (ADUs) from the Mercer Properties proceeds to help low- and moderate-income families, generating wealth for homeowners and increasing rent and income restricted housing options.

• Low-Income Heating Oil Conversion to electric heat through a heating oil service provider tax to help Seattle reach the goal of becoming a carbon neutral city by 2050 as part of the 2013 Seattle Climate Action Plan. In 2020, $270,000 will be available to OH to fund program delivery. In 2021, this funding level will jump to $750,000 annually through 2029.

Over the next two months, the City Council will review the Mayor’s proposed budget. Final adoption of the budget is expected on Monday, November 25.

Thank you again for your ongoing partnership, 

Emily Alvarado, Director
Seattle Office of Housing