Seattle council clears final step to launch publicly owned social housing funding

Seattle, Washington – Seattle officials have taken a decisive step toward launching a new era of publicly owned, permanently affordable housing, approving legislation that allows funding to begin flowing to the city’s social housing developer. The unanimous vote by the City Council marks the final action needed to activate revenue created by voters earlier this year.

In February 2025, residents backed Proposition 1A with more than 63 percent support, signaling strong public demand for new tools to address rising housing costs. The measure established a continuing funding source dedicated to the Seattle Social Housing Developer, an entity created to build and manage mixed-income housing designed to remain affordable over the long term. With the council’s latest approval, those dollars can now begin moving into the program.

Supporters described the decision as a milestone for affordability efforts. Council leaders said the city is honoring voter intent while committing to sustained investment in housing that will remain publicly owned. They also pointed to additional funding secured in the current budget aimed at expanding affordable housing construction, framing the combined resources as an unprecedented push expected to shape housing availability in 2026 and beyond.

Housing advocates and program leaders say the first impact could arrive quickly. Revenue from the new tax is expected to support the purchase of an initial building and provide homes for hundreds of residents within the year. Plans call for serving households across a range of income levels while carefully managing funds to stretch long-term affordability.

The funding mechanism behind Proposition 1A applies a five-percent tax on annual compensation above one million dollars, paid by employers rather than workers. The city began collecting payments tied to the 2025 tax year in January, setting the stage for the newly approved transfers.

City officials say oversight and progress updates will continue in the months ahead as Seattle’s social housing model moves from voter mandate to on-the-ground development.