On February 11, Seattle voters will weigh in on the funding for a proposed social housing initiative, with two competing propositions outlining potential revenue sources. Social housing aims to provide a mixed-income, affordable housing model that is publicly owned and remains affordable indefinitely, catering to individuals from lower middle-income to upper middle-income brackets.
This model contrasts with traditional public housing, which primarily serves those at the lowest income levels, as well as nonprofit affordable housing that supports lower-income residents struggling to find affordable options in the private market. The two proposals for financing social housing are both centered on taxes imposed on large businesses.
Proposition 1A proposes a tax on employee compensation exceeding $1 million—this includes salaries, stock options, and similar forms of compensation. The tax would be paid by businesses, with an estimated annual revenue of around $50 million.
Proposition 1B, introduced by the city council and supported by Mayor Bruce Harrell, allocates $10 million annually from the Jumpstart payroll tax, another tax targeting large companies in Seattle. This funding would be directed to the social housing developer, although the income levels of potential residents would be lower compared to those allowed under the 1A model.
Should neither proposition pass, the social housing developer will continue to operate but will lack the necessary capital to initiate any construction projects. Advocates for Proposition 1A have indicated their determination to revisit voters for funding in the future if their initial efforts do not succeed, emphasizing their commitment to establishing the social housing model.
Social housing represents a shift away from traditional public housing, which primarily targets individuals and families at the very lowest income levels. Instead,The social housing initiative in Seattle is designed to create a sustainable and inclusive housing option for a broader range of income levels, specifically targeting the lower middle to upper middle-income brackets. This approach aims to address the critical shortage of affordable housing in the city while ensuring that the units remain affordable over the long term.
Source: Seattle Medium
