Seattle proposes record $349.5 million housing package; officials outline pipeline, Fort Lawton and Lake City timelines

The Seattle Office of Housing presented the Select Budget Committee with a proposed 2026 budget that would invest roughly $349,500,000 in affordable housing and expand the city’s role in an active pipeline of projects across the city. Michael Winkler‑Chin, director of the Seattle Office of Housing, told the committee the mayor’s proposed package includes $344,500,000 in the Office of Housing’s budget plus a separate $5,000,000 payroll expense tax allocation moved into Finance General for the Northgate Commons project.

The budget matters because it funds projects at varying stages of a long development cycle that the office says can span several years from award to final closeout. Winkler‑Chin told the committee, “The city is making record investments in affordable housing,” and described a process in which awards, legal obligation and construction often occur over multiple mayoral or council terms.

Office of Housing officials used a new slide to show the life cycle of projects from NOFA (notice of funding availability) through design, construction, lease‑up and final mortgage conversion. They emphasized that awards do not mean immediate spending and that many projects take three to six years or longer to move from award to drawdown of city funds. The office said there are projects with awards that could create more than 1,000 new rental homes and 143 permanently affordable for‑sale homes, and other projects already encumbered that will deliver more than 3,700 rental apartments and roughly 300 permanently affordable for‑sale homes.

Committee members asked for specifics on a handful of high‑profile projects. On Lake City Community Center redevelopment, the office said it is coordinating with Seattle Parks and King County and will provide a detailed legislative and schedule plan in the coming month or two aimed at closing by late 2026 so construction can begin as soon as possible. On Fort Lawton, Winkler‑Chin said the project is in the environmental impact statement process and that U.S. Department of Housing and Urban Development has accepted the city’s supportive‑housing component, allowing other project pieces to move forward. He said Habitat for Humanity would pursue permanently affordable homeownership (up to about 200 units under current zoning), Catholic Housing Services would provide multifamily rental (up to about 200 units), and Chief Seattle Club was selected to provide up to about 100 units of supportive housing.

Council members also pressed for details about Northgate Commons; staff said moving $5,000,000 into Finance General would allow a direct intergovernmental transaction with the Seattle Housing Authority and is intended as a final commitment to make financing work, but that exact construction timing must be provided by the housing authority.

Committee discussion repeatedly returned to two cross‑cutting operational themes: (1) the long, overlapping timing of development awards and drawdowns, and (2) operating and staffing pressures on affordable‑housing providers. The office described past one‑time stabilization investments and an ongoing escalator built into operating grants; it also said capital costs have risen sharply since the levy modeling — construction costs are about 15% higher than modeled, and higher interest rates and lower tax‑credit pricing have increased the resources needed to meet levy goals.

On neighborhood engagement and building operations, the office said community notification and outreach are required in funding applications and that providers are expected to maintain good‑neighbor communication during construction and operation. Kelly Larson, director of policy and planning at the Office of Housing, said the department “reviews those plans and make[s] sure that the planning does include community notification and partners are required to keep people informed through the development process.” Committee members pressed for stronger, contract‑level expectations and resources for ongoing resident services, safety, and vacancy reporting; the office said it has prioritized vacancy reporting among the largest providers but that smaller providers lack capacity to update real‑time data systems.

The office also summarized program details: multifamily rental financing remains the largest portion of the budget and includes long‑term loans monitored for asset health for the life of the city’s contracts; homeownership and home repair programs continue; and staff and administration pay for program management such as MHA and MFTE. The office noted a technical change that would shift $5,000,000 of payroll expense tax into Finance General to facilitate the Northgate Commons intergovernmental transaction; officials said all other 2026 proposed changes were primarily technical.

Committee members asked for follow‑up materials, including (1) a public dashboard or easier access to the cash‑balance/project‑stage data the office already maintains, (2) an updated timeline for Lake City Community Center and Fort Lawton permitting steps and legislative path, and (3) details on timing for the SHA Northgate Commons project. Office staff said they expect a new, improved project dashboard by April 2026 and committed to returning with the requested schedules and timing details. The office also noted planning underway with the Office of Civil Rights and OPCD around the city’s Reparations Housing Fund work and said that the current proposals represent an intentional focus rather than an entirely new stream of funding.

The committee did not take any formal votes on housing legislation during the presentation. Members repeatedly emphasized the importance of transparency about where projects are in the multi‑year development cycle and of additional support for operators’ staffing and resident services as capital investments come online.

Looking ahead, the office said it will continue to balance new production with preservation and stabilization funding for existing assets, and that achieving levy unit production goals now requires higher payroll expense tax resources and adjustments for rising construction and financing costs. The Office of Housing pledged to return to the council with more detailed schedules and a public reporting plan for the city’s funded pipeline.