Latest news with #I-135
Axios
19-03-2025
- Business
- Axios
When social housing could open in Seattle
Seattle's new social housing developer hopes to have its first property under contract by the end of the year, potentially allowing it to open its first mixed-income public housing building by mid-2026, CEO Roberto Jiménez tells Axios. Why it matters: Voters approved a new tax last month to pay for social housing, a public housing model that caps rent prices at 30% of a tenant's income. It's different from typical affordable housing, largely because the units are open to people making up to 120% of the local median income. Last year, the median income in Seattle for the purpose of affordable housing programs topped $100,000 for a single person. Between the lines: The concept behind social housing is that the higher rents paid by wealthier renters will help subsidize the lower rents paid by lower-income tenants. The model should allow the buildings to sustain themselves over time without ongoing government rental subsidies, said Jiménez, who was appointed CEO of the social housing development authority last year. Flashback: Seattle voters created the social housing development authority by passing I-135 two years ago, but the 2023 ballot measure didn't include taxes to pay for the program. The latest: To get things up and running, the social housing developer plans to use the tax money voters approved last month to help buy or construct its first buildings. Proposition 1A, which voters approved in the Feb. 11 special election, will raise an estimated $50 million per year for social housing. The new 5% payroll tax applies to Seattle companies with workers who make at least $1 million a year. Employers are to pay the 5% tax on the portion of an employee's salary that exceeds $1 million. The fine print: It will take about a year to set up the systems necessary to collect the tax, Julie Johnson, spokesperson for the city finance office, told Axios. For that reason, the city doesn't plan to make the first tax payments due until Jan. 31, 2026, Johnson said. What they're saying: Jiménez told Axios his agency will most likely try to access some of the Proposition 1A revenue before then. That probably will mean requesting advance funding from the city or some type of bridge loan, he said, in order to meet the goal of having an agreement in place to buy a property by the end of the year. Zoom in: The agency is looking at multiple buildings that it could acquire and convert to social housing, Jiménez told Axios. If one of those deals goes through and the building doesn't need major work, Jiménez said he's hopeful it could open by the middle of next year. Buying land and constructing a new building would take longer, he said. What we're watching: Tiffani McCoy with the Proposition 1A campaign told Axios she expects opponents may still file a lawsuit to try to overturn the tax.
Axios
28-01-2025
- Business
- Axios
Seattle voters weigh how to pay for social housing
Seattle voters are faced with competing ballot measures as they decide whether to raise taxes on businesses to pay for public housing projects. Why it matters: The Feb. 11 special election will determine how much money will go toward the city's new social housing developer, which voters created two years ago through a different ballot measure, I-135. Catch up quick: Social housing is a type of publicly owned housing that caps rents at 30% of a tenant's annual income. People making up to 120% of the area median income can live there, with the goal that higher rents paid by middle-income tenants will help subsidize the lower rents paid by lower-income residents. Last year, the median income in Seattle for the purpose of affordable housing programs topped $100,000 for a single person, per city officials. Zoom in: One measure on the Feb. 11 ballot, Proposition 1A, would enact a new 5% payroll tax on Seattle companies with workers who make at least $1 million a year. An employer would pay the 5% tax on the portion of an employee's salary that exceeds $1 million. Businesses would be prohibited from passing the tax on to workers. That proposal would raise an estimated $50 million per year. A second option, Proposition 1B, wouldn't raise any new tax revenue. Instead, it would allocate $10 million per year of the city's existing JumpStart payroll tax revenue to the social housing developer, with the plan sunsetting after five years. This approach would spend a maximum of $50 million, a fifth of what Proposition 1A would raise over the same five-year period. How it works: To enact either measure, voters first must select "yes" to indicate they want to pass one of the two competing proposals. Then, they can choose whether they are voting for Proposition 1A or Proposition 1B. Voters could also answer "no" to the initial question, indicating they'd rather not enact either policy. Flashback: Supporters of imposing the 5% tax gathered more than 35,000 signatures last year to ensure that Proposition 1A qualified for the ballot. But members of the City Council decided to put forth Proposition 1B, with City Councilmember Maritza Rivera arguing the city shouldn't "give a blank check to yet another new agency that does not have the experience creating housing." What they're saying: Tiffani McCoy of the Proposition 1A campaign told Axios the alternative plan effectively rejects the social housing model that voters approved two years ago, while siphoning money away from other public housing projects. She said the mixed-income model is vital to ensure Seattle can be affordable for everyone, including nurses, teachers and other middle-income workers. The other side: Rachel Smith, president and CEO of the Seattle Metropolitan Chamber of Commerce, told the Seattle Channel that the idea behind Proposition 1B is "to use the money for those who need it most" by focusing on people who make up to 80% of the area median income. What's next: Ballots must be postmarked by Feb. 11 or returned to an official ballot dropbox by 8pm that day to be counted.
