Description
Title: AN ORDINANCE relating to the Social Housing Tax; authorizing the Mayor or designee to enter into an interlocal agreement with the Seattle Social Housing Developer to establish the terms and procedures for the implementation, administration, transfer, reporting, and oversight of the Social Housing Tax, including provisions for reimbursement of the City’s administrative and implementation costs and outstanding loan balances; creating the Social Housing Tax Fund; and ratifying and confirming certain prior acts.
Summary
The Interlocal Agreement between the City of Seattle and the Seattle Social Housing Developer establishes the framework for the implementation and administration of the Social Housing Tax, approved by voters in 2025. This tax, levied at 5% on annual compensation exceeding $1 million, is designed to generate revenue for public social housing initiatives. The agreement details the roles of both parties: the City will collect and distribute tax revenues, while the Developer will utilize these funds to fulfill its mission of providing affordable housing. The City is reimbursed for administrative costs, capped at 5% of tax revenue. This legislation is crucial as it formalizes the financial and operational relationship between the City and the Developer, ensuring accountability and transparency in leveraging taxpayer funds for social housing.