Seattle is taking bold steps to address its housing affordability crisis through recently approved social housing developments. With voters backing new funding mechanisms and ongoing projects reshaping the city, here’s everything you need to know about the latest initiatives tackling Seattle’s housing challenges.
A New Era for Social Housing in Seattle
In February 2025, Seattle voters approved Proposition 1A, creating a dedicated funding source for the Seattle Social Housing Developer (SSHD). This initiative imposes a 5% tax on companies for every dollar over a million paid to a Seattle-based employee, including salaries, stock, and bonuses. This tax is projected to generate approximately $50 million annually, which will help develop or acquire 2,000 housing units over the next decade. However, there is growing concern that corporations may find legal loopholes or strategies to avoid paying this additional tax, which could impact the long-term funding sustainability of the initiative (Capitol Hill Seattle).
What is the Seattle Social Housing Developer (SSHD)?
The SSHD was established through Initiative 135 in 2023 to create, own, lease, and maintain permanently affordable mixed-income housing. The program serves individuals earning between 0% and 120% of the area median income (AMI), addressing the gap for those who earn too much for traditional affordable housing but cannot afford market-rate options (Seattle Social Housing).
A 13-member SSHD board was appointed in April 2023, consisting of individuals with expertise in public finance, affordable housing, labor representation, and those with lived experience in housing instability. Their role is to guide the SSHD’s operations and ensure the program meets Seattle’s pressing housing needs (Seattle City Council).
Current and Future Social Housing Projects
Beyond the SSHD’s newly funded efforts, several other social housing developments are shaping Seattle’s future:
Pride Place: Opened in October 2023 on Capitol Hill, Pride Place is Washington state’s first LGBTQIA+affirming housing community for seniors. The project features 118 affordable apartments, a healthcare clinic, and the GenPride Senior Center, providing critical support for LGBTQIA+ elders (Community Roots Housing).
Yesler Terrace Redevelopment: Originally a public housing neighborhood, Yesler Terrace is undergoing a major transformation into a mixed-income, mixed-use community. The redevelopment plan includes 5,000 residential units, office space, and retail areas while maintaining affordability for low-income residents (2023 Yesler Annual Report).
Northgate Affordable Housing by Community Roots Housing and BRIDGE Housing: Located adjacent to the Northgate Link light rail station, this development will offer 235 affordable apartments, including studio, one-, two-, and three-bedroom units for households earning between 30% and 60% of the Area Median Income (AMI). The project will also feature a nearly 10,000-square-foot daycare on the ground floor. Construction began in January 2024 and is expected to be completed by fall 2025 (Community Roots Housing).
The Future of Social Housing in Seattle
With strong public support and dedicated funding, Seattle’s social housing initiatives are set to create long-term affordable solutions for a wide range of residents. The approval of Proposition 1A signals a significant shift toward city-backed, mixed-income housing developments that prioritize affordability and inclusivity. However, concerns about corporate tax avoidance raise questions about the reliability of funding.
Stay tuned as we continue to track these developments and their impact on Seattle’s housing landscape!
Comments