(The Center Square) – The Seattle City Council will soon vote on a $2 million loan to be provided to the Seattle Social Housing Developer as part of the public development authority’s ongoing startup phase.
The Seattle Social Housing Developer, or SSHD, was established through Initiative 135, passed by voters in 2023. SSHD is a public development authority created to develop, own and manage permanently affordable, publicly owned housing for low-to-moderate-income residents in Seattle.
The startup phase of the SSHD has involved establishing its operational framework, securing initial funding, and preparing to develop or acquire social housing properties.
The loan will face final approval by the city council on Tuesday after being recommended for passage by the Seattle Finance Committee on July 2.
The loan allows SSHD to continue operations until the new payroll expense tax revenue rolls in. According to City Finance Director Jamie Carnell, the loan is the most efficient and financially responsible way to provide the bridge funding to the public development authority.
Seattle City Finance will continue to intercept the tax proceeds coming in until the loan and interest has been fully repaid, which is expected to occur within the first three months of 2026.
SSHD CEO Roberto Jiménez said the authority’s major focus over the next six months will be hiring staff and finalizing the organization’s work plan. The loan would mainly be used for hiring the staffing needed to begin work. Seattle City Councilmember Dan Strauss noted that as of now, the authority consists of a working board of volunteers.
Currently, SSHD is reviewing four properties for feasibility.
“We hope to have one property under contract by the end of the year, and we’re on schedule to do that,” Jiménez said during the July 2 Finance Committee meeting. “We plan to have two others under contract by the end of 2026.”
In February, Seattle voters approved Proposition 1A, which creates a 5% tax annual compensation above $1 million paid in Seattle to any employee and would provide more than $50 million per year to the Seattle Social Housing Developer.
The first tranche of new revenue generated by this tax is expected to be received by the city within the first three months of 2026.
The city provided $870,000 in financial assistance to the developer as part of an obligation for start-up support for the first 18 months of operations.
The Washington State Department of Commerce has also provided an additional $180,000 to SSHD, bringing the total startup support to approximately $1 million.
The final city payment of startup funding was dispersed in March. Seattle Mayor Bruce Harrell’s office previously noted that if the $2 million bridge loan is not approved, SSHD would face tough financial decisions until the new revenue is received.
