CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to the financing of the Seattle Social Housing Developer; authorizing the Director of Finance to enter into a loan agreement with the Seattle Social Housing Developer; authorizing a loan of funds in an amount up to $2,000,000 from the General Fund as bridge financing to be repaid from future tax proceeds; and ratifying and confirming certain prior acts.
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WHEREAS, on February 14, 2023, Seattle voters approved Initiative 135, a citizen-initiated measure to create an independent public development authority, the Seattle Social Housing Developer, to develop, acquire and maintain public affordable social housing in Seattle; and
WHEREAS, Initiative 135 required The City of Seattle to provide start up support for the first eighteen months of operations; and
WHEREAS, in 2023, the City Council funded $20,000 in consulting assistance and the State provided $180,000; and
WHEREAS, the City appropriated $850,500 for the Seattle Social Housing Developer in its 2024 budget and executed a contract with the Seattle Social Housing Developer effective for 18 months (January 1, 2024 through June 30, 2025); and
WHEREAS, the City released the last tranche of funding owed to the Seattle Social Housing Developer on March 4, 2025 for $445,500; and
WHEREAS, on February 11, 2025, Seattle voters approved Initiative 137, imposing a five percent tax rate on employers doing business in Seattle for any annual employee compensation above $1,000,000 (the "Social Housing Tax"), which the City is responsible for collecting and transferring to the Seattle Social Housing Developer and is intended to support the development and operation of social housing in Seattle; and
WHEREAS, although the Social Housing Tax was imposed effective January 1, 2025, due to the normal due dates and collection procedures, the first proceeds of the Social Housing Tax will not be received in the City's ...
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