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Council member urges fast approval of social-housing MOU so newly collected tax revenue can flow to developer

Seattle City Council · January 12, 2026

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Summary

Council member Strauss told colleagues the city must approve an interlocal memorandum of understanding with the Seattle social housing authority within weeks so tax receipts from Prop 1a—collected beginning Jan. 1—can be transferred; Strauss said lawyers negotiated the agreement and urged no amendments without counsel.

Council member Strauss said the city and the Seattle social housing authority have a narrowly timed opportunity to finalize an interlocal memorandum of understanding that will govern transferring tax revenue voters authorized under Prop 1a.

"We are in a very tight window," Strauss said, explaining first collections began this month and the agreement must be in place so receipts scheduled for payout after Feb. 25 can be transferred. Strauss said lawyers from both the city and the authority negotiated the document and advised against taking amendments without additional legal review: "I am requesting that we are not taking amendments without speaking to the lawyers." She said the committee plans to hold a single hearing with a vote and send the measure to full council the following week to meet timing requirements.

Strauss noted the council sponsored a $2,000,000 bridge loan last year to help the social-housing developer stand up operations and said the MOU is distinct from that loan. Jennifer Labrec of council central staff was identified as the staff lead working on the interlocal agreement.

If the council does not act within the narrow window Strauss described, she warned, the city risks delaying transfers and creating "unnecessary challenges" for implementing social-housing projects funded by the new tax.

The council member framed the expedited process as a practical step to ensure the developer can receive funds and begin projects rather than a change to substantive policy. Colleagues were invited to consult with legislative legal counsel or the deputy clerk about the process and deadlines. The committee will take up the measure on an expedited schedule.