SEATTLE — The Seattle City Council on Feb. 11 unanimously approved council bill 120937, a measure that creates a local sales- and use-tax deferral for projects that convert underused commercial buildings into residential units with an affordable-housing component.

The bill, approved 9–0, adds a new chapter (5.75) to the city code to implement a state-authorized program intended to encourage downtown activation and increase housing supply amid high vacancy in commercial space.

Council member Solomon, the Land Use Committee chair and sponsor, told the council the program implements authority granted by the state through Senate Bill 6175, effective June 1, 2024, and that the program would require a resolution of intention, public review and a hearing before activation. “I urge your support on this bill today,” Solomon said on the floor.

Council members voiced general agreement on the need for housing and voted to pass the bill without amendment. The clerk recorded the roll call with nine in favor and none opposed; the measure passed and the chair signed it.

The ordinance directs the city to prepare program documents, publish required notices and hold any necessary public hearings before activating the local tax-deferral program. Council staff noted the measure is intended to align with the mayor’s downtown-activation plan and the city’s comprehensive-plan priorities for housing and economic revitalization.