Committee recommends charter changes to Seattle Social Housing Developer, enabling financing options and condo-ization

The Housing, Arts & Civil Rights Committee on June 10 voted 4-0 to recommend adoption of Resolution 32209, a package of technical amendments to the charter for the Seattle Social Housing Developer (SSHD). The committee'level vote sends the resolution to the full City Council on June 16 for final consideration.

Central staff Jennifer summarized the amendments and their intent, noting the SSHD board voted to recommend the changes at meetings on May 5 and May 21. The amendments would allow SSHD to create single-purpose limited liability companies or corporations to purchase or develop properties, a change staff said would enable SSHD to access conventional financing and, in some cases, use building revenue or property as collateral. "This is a fairly common practice in real estate," Jennifer said, and staff emphasized that SSHD "would retain control of any housing portion of a building."

The redline also adds a mechanism to allow condo-ization of non-housing (community or commercial) portions while requiring SSHD to control the housing portion and to hold sale-price controls on condo-ized commercial space. Another amendment clarifies the appointment process for seven SSHD board positions currently appointed by the Renter's Commission: once buildings become operational, a building-specific constituency will appoint those positions. Staff also clarified auditor language to reflect existing public-developer audit requirements.

Chair Dionne Foster, sponsor of the resolution, said the changes are intended to prepare the developer for early acquisitions and to "reset for success" by removing technical barriers to conventional financing. Council members asked clarifying questions about the scope of powers in the redline and whether the changes grant eminent-domain authority; central staff said the redline largely clarifies existing powers and declined to interpret specific eminent-domain language during the hearing.

The committee moved and seconded the resolution; the clerk called the roll and recorded four "yes" votes (Hollingsworth, Rinck, Eddie Lin and Chair Foster). The committee'level adoption sends Resolution 32209 to the June 16 City Council meeting for final action.

Next steps: Resolution 32209 will be considered at the June 16 Council meeting. Staff and the sponsor said the amendments reflect recommendations made by the SSHD board and that the changes are intended to help the developer leverage assets and pursue acquisitions while preserving SSHD control over permanently affordable housing.