MHA Housing Accelerator Proposal Hits Seattle Process Snag
A fledgling proposal for a two-year break on builder fees to spur Seattle housing starts amidst a permit drought hit a big snap on Thursday as a key stakeholder rescinded support and Mayor Katie Wilson delayed plans to introduce the legislation. The mayor still appears intent on bringing the proposal back later this year, potentially after budget season this fall.
At its 2021 height, the Mandatory Housing Affordability (MHA) program pulled in $74 million in funding for affordable housing, but as housing starts have plummeted, that figure has trended below $20 million. This has led a coalition of 30 builders called the Seattle Housing Roundtable to propose a temporary break on MHA fees to spur builders to break ground. After negotiations with nonprofit builders and other stakeholders, they arrived at a two-year pilot program with an 80% fee reduction for multifamily builders.
"To meet the Mayor’s goal, the temporary reduction in MHA fees for new housing is laser-focused on spurring thousands of ‘shovel-ready’ Seattle housing units, which are already deep into permitting," the Seattle Housing Roundtable wrote. "By the City’s own data, more than 200 projects are stuck in the City’s pipeline. The City saw more than 50,000 permitted housing units stalled or canceled in just the last two years, and new applications are down a staggering 94% from the peak in 2020."
Housing Development Consortium of Seattle-King County (HDC), a coalition of nonprofit builders and industry partners, had been a key supporter for the MHA break proposal and a negotiator of the reduced terms. HDC Executive Director Patience Malaba even wrote an Urbanist op-ed in favor of the proposal last month. However, Malaba pulled HDC's support on Thursday in an email to consortium members, catching supporters of the MHA accelerator off guard.
https://www.theurbanist.org/mha-housing-accelerator-proposal-hits-seattle-process-snag/