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Committee advances amended social housing tax ordinance, requires council approval for future ILA changes
Summary
The committee unanimously passed an amended Council Bill 121153 to authorize an interlocal agreement implementing the voter-approved social housing tax; it requires council approval for future ILA amendments, details a repayment and transfer schedule, and will go to full council on Feb. 10.
Seattle — The Finance, Native Communities and Tribal Governments Committee on Feb. 3 advanced Council Bill 121153, an ordinance implementing the voter-approved social housing tax, after adopting Amendment 1 to require that any future changes to the interlocal agreement (ILA) must return to City Council for approval.
The committee's action was unanimous (4–0) and sends the amended ordinance to the full City Council for consideration on Feb. 10.
What the ordinance does: The bill authorizes the mayor or designee to enter into an interlocal agreement with the Seattle Social Housing Developer to implement, administer and oversee the voter-approved tax, create the Social Housing Tax Fund, reimburse the city for administrative and implementation costs and outstanding loan balances, and ratify prior executive acts related to implementation.
Timing, repayment and transfers: City finance staff said the tax was approved by Seattle voters in February 2025 and is retroactive to Jan. 1, 2025. The city is responsible for collecting the tax and, under the ILA, transferring net proceeds to the developer. Initial tax filings were due Jan. 31; city staff said filings will be reconciled around Feb. 20 and the first transfer to the developer is scheduled for March 2. The city earlier provided a $2,000,000 bridge loan to the developer to support startup operations; officials said that loan (and any interest) will be reimbursed first from initial receipts, followed by principal repayment, reimbursement of the city's administrative and implementation costs, and then transfer of net proceeds to the developer.
Amendment explained: As transmitted, the authorizing ordinance would have permitted the executive to amend the ILA in the future without council approval. Jennifer Labrecht of Council Central Staff called that an "unusual practice" and said Amendment 1 aligns this ILA with the city's general practice by requiring council approval for any future amendments. The committee adopted that amendment by roll call (result: 4 in favor, none opposed).
Public comment and developer readiness: Tiffany McCoy, who identified herself as interim CEO of the Seattle Social Housing Developer, testified during public comment in support of the amendment and the committee action. McCoy said the developer has hired an interim chief financial officer and additional staff and asked the committee to pass the legislation so the developer can move from planning to implementation.
Votes and next steps: Amendment 1 passed on a 4–0 roll-call vote. The committee then voted 4–0 to recommend passage of Council Bill 121153 as amended. The committee recorded the result as "4 in favor, none opposed" and will forward the ordinance to the full council agenda for Feb. 10.
Credits: Presentation and recaps were led by Andrew Robinson and Lena Gerber from the Office of City Finance; Council Central Staff member Jennifer Labrecht explained the amendment's alignment with usual city practice.
