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City of Seattle Mandatory Housing Affordability

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1 City of Seattle Mandatory Housing Affordability
June 14, 2017 – NCDA Miami, Florida

2 “roots” of the MHA Housing Affordability and Livability (HALA) ; the “grand bargain” Mandatory Housing Affordability; legislation and process Tenant Protections; improving existing protections Assessment of Fair Housing; measuring the impact of MHA and other FH strategies We are facing our worst housing affordability crisis in decades. My vision is a city where people who work in Seattle can afford to live here. Housing affordability is just one building block to a more equitable city. It goes hand in hand with our efforts on raising the minimum wage, providing preschool education for low-income children, and increasing access to parks and transit. We all share a responsibility in making Seattle affordable. Together, this plan will take us there." Mayor Ed Murray

3 Housing affordability & livability agenda
How should private development contribute to affordable housing? In 2014, after nearly two years of discussion, review of data, expert consultation, and Race and Social Justice principles training HALA commission includes 65 recommendations in the final report. “Grand Bargain” results in “Framework for Mandatory Inclusionary Housing and Commercial Linkage Fee.- Ordinance no Mayor Murray responded to the recommendations of the HALA Advisory Committee with a roadmap to make Seattle affordable, a path to reach his goal of 50,000 new homes over the next decade, including 20,000 homes reserved for low- and moderate-income people. Some items in the action plan could be completed this year, while others will require at least two years to implement. We are well underway with this effort. After more than 20 years of impasse, leaders from the community representing diverse stakeholders (for-profit developers, non-profit affordable housing developers, social justice, labor, and businesses) came together through the HALA process to agree on a framework of principles that paved the way for implementing the Mandatory Housing Affordability (MHA) program, one of the HALA recommendations that will ensure that growth brings affordability for all. The Grand Bargain refers to the framework document "Statement of Intent for Basic Framework for Mandatory Inclusionary Housing and Commercial Linkage Fee," which provides the initial principles for developing new MHA policy.  However, since the Grand Bargain, these principles have evolved and through input from the community, the City has developed more principles on the implementation of MHA as demonstrated by the MHA Residential Framework ordinance that passed in August 2016 (ordinance no ) and future zoning legislation to implement MHA. HALA recommendations included: Creation of the MHA and following zoning changes and implementation Strengthening tenant protections Doubling the Seattle Housing Levy to $ Improving the efficiency of housing development by streamlining permitting procedures

4 Mandatory Housing Affordability Framework
Sets the criteria for: Timing of follow on legislation and process to identify neighborhoods for upzoning and regulatory changes Income eligibility requirements for mandatory set asides for affordable housing units and term of guaranteed affordability Formula for calculating fees to allow developers to pay for units outside their development in lieu of performance

5 Mha ordinance: the nuts and bolts
MHA Ordinance passed on 8/17/2016 New development in Seattle either builds units on site or pays into MHA fund for AH units elsewhere Applies to new, additions/alternations that increase # of existing units , change of use Does not apply to publicly funded or LIHTC projects MHA mandated units are reserved for 75 years for 60% AMI City’s 2016 Update to the Growth Management Act targets “adequate provision for the housing needs of all economic segments of the City. (36.70 RCW) Under MHA, new development in Seattle will contribute directly to affordable housing by either building affordable homes on site or making a payment to the City uses to fund affordable housing throughout Seattle. The affordable housing created through MHA would be reserved for 75 years for people earning up to 60% of the area median income (AMI) - $37,980 for an individual or $54,180 for a family of four. We expect MHA will create 6,000 affordable homes in the next 10 years. Acknowledge that 60% AMI is working class; 30% theoretically “freed up” for LI renters. Supplemented by increase in Seattle Housing Levy

6 MHA status In 2016, two districts upzoned with MHA requirements in effect. MHA EIS complete and out for public comment now. Race and Social Equity team reviewing EIS for impact on marginalized populations. Major concern: displacement. 2017 City and Seattle Housing Authority’s Assessment of Fair Housing is considered baseline to measure impact on protected class of MHA over time. University District and Downtown South Lake Union complete – MHA in effect there; next up Uptown and International Districts. Council will adopt the plan for City-wide adoption of MHA and next priority “urban villages” by end of 2017. Like most legislation of this type, already threats of litigation based on protection of property rights and legality of linkage fees. Stay tuned.

7 Other Affordable Housing Strategies
Successful 70% increase of housing levy: $290 Million over seven year passed in 2016 Seattle Housing Levy - Housing | seattle.gov Tenant protections: In Codes and Rules connected to HALA recommendations In Tenants rights laws The 2009 Seattle Housing Levy expired at the end of 2016, and Mayor Murray and City Council have approved a new $290 million levy (over seven years) for the August 2 ballot Seattle Housing Levy Fact Sheet >. Questions may be submitted via to Seattle Housing Levy - Housing | seattle.gov Levy $145M over 7 7ears Since 1981, Seattle voters have approved one bond and five levies to create affordable housing. Seattle has now funded over 13,000 affordable apartments for seniors, low- and moderate-wage workers, and formerly homeless individuals and families, plus provided homeownership assistance to more than 900 first-time low-income home buyers and emergency rental assistance to more than 6,500 households. Tenant Protection in last 5 years: Strengthen Tenant Relocation Assistance Ordinance (TRAO) // Passed October 2015 (SDCI) Increase tenant counseling and landlord education funding (CBO / SDCI) Increase access to housing for people with criminal records (OCR) Expand antidiscrimination protections to tenants with alternative sources of income, passed City Council August 2016 (Ordinance) Bans discrimination on basis of source of income Requires landlords to conduct “first in time” applicant screening (pick first renter who meets criteria Prohibit landlords from offering discounts to certain corporate employees (the Amazon and Microsoft effect) Require landlords to accept NPO pledges for rent for those being evicted if money is received within five days of eviction notice Coming in 2017? Protections for renters with criminal history/records Allow for local portability of tenant screening reports (OH) During the 2016 state legislative session a bill passed that defines tenant screening reports and requires landlords to state whether or not they accept portable reports. The new law also gives tenants the ability to remove certain eviction records from a screening report through a court order, if the tenant prevailed or there was not good cause to evict the tenant. This law does apply to property owners in Seattle. Expansion of rental/operating subsidies for lowest income households (SDCI) Strengthen Rental Registration & Inspection Ordinance (RRIO) (SDCI) Still not enough: National LI Housing Coalitions “Out of Reach” reports that the gap between wages and housing for Seattleites earing the minimum wage (now $15.00) would have to work 87 hours a week to afford a 1 BDR apartment in Seattle. Read the full report here.

8 Questions and comments?
Debra Rhinehart Strategic Advisor, Human Services Department City of Seattle, Jennifer Yost Federal Grants Manager, Human Services Department City of Seattle,


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