Seattle City Council's Land Use Committee is taking significant steps to address the city's housing crisis by proposing a new incentive program aimed at converting office spaces into affordable housing. This initiative is part of Mayor Harold's downtown activation plan and follows the passage of Washington State Senate Bill 6175, which allows cities to offer sales tax deferrals for such conversions.

The proposed program requires that at least 10% of the newly created housing units be affordable for individuals earning up to 80% of the area median income. If developers maintain this affordability for a decade, they will not have to repay the sales taxes. The resolution passed during the meeting sets the stage for a public hearing on January 30, 2025, where further details will be discussed.

This initiative is expected to produce between 1,000 to 2,000 new housing units over the next seven years, supporting both downtown recovery and environmental sustainability by repurposing existing structures rather than constructing new ones. The sales tax deferral could reduce project costs significantly, making conversions more financially viable for developers.

Seattle aims to be one of the first cities in Washington to implement this program, following Spokane's lead. The committee emphasized that without such incentives, many conversions may not occur, as the costs of converting older office buildings often exceed those of new construction.

The meeting highlighted the potential positive impacts of this program, including stabilizing property values in a downtown area facing high vacancy rates and supporting local businesses by increasing residential density. As the city moves forward, the focus will remain on balancing the need for affordable housing with the economic realities of development.