Seattle committee reviews proposed updates to Housing Funding Policies and Levy financial plan

The Housing, Arts & Civil Rights Committee on June 10 heard from the Seattle Office of Housing about proposed technical and procedural updates to the 2023 Seattle Housing Levy administered financial plan and the broader Housing Funding Policies.

Office of Housing presenters Kelly Larson and Nathan Antonio told the committee the package is primarily housekeeping and alignment with current practice, but includes several substantive changes intended to respond to rising development and operating costs. Among the technical updates, staff proposed increasing per-unit subsidy caps for homeownership development by $30,000 per unit, an adjustment they said aligns with prior levy modeling and helps account for inflation, financing, labor and material costs. "These caps are being raised by $30,000 per unit," Nathan Antonio said, explaining the adjustment applies across studio, one-bedroom and larger units.

The presenters also clarified how operating, maintenance and services (OMS) subsidies are applied and how income-targeting (AMI) rules interact with project underwriting. Staff said OMS subsidies generally target households at or below 30% area median income (AMI) but acknowledged underwriting realities can result in some regulated units being set at 50% AMI for financing reasons. Kelly Larson described several procedural clarifications designed to match long-standing Office of Housing practice — for example, clearer language on review, contract renewal and invoicing processes and updates to eligible uses of funds so policy text better reflects contract language.

Public commenters and provider representatives pressed for more attention to nonprofit operational stability. Alicia Ramirez of Habitat for Humanity Seattle King and Counties voiced "strong support for the housing levy and financial plan" and said higher per-unit caps are "particularly meaningful" for Habitat's ability to build. Marta of the Low Income Housing Institute urged the committee to direct the Office of Housing to host two public meetings before adopting the proposed changes, saying rent-assistance stabilization and operating funds remain insufficient and that some nonprofit owners are considering asset sales to manage financial strain.

Committee members asked how partner funders are treating the shift from counting units to counting residents and pressed staff on data and geographic equity. Vice Chair Eddie Lin asked whether King County and other funders are adopting similar resident-focused measures; staff said King County is considering related changes and that OH will continue coordinating with partner funders. Lin also raised concerns about concentrated poverty and potential impacts on Seattle Public Schools; staff said they are working with Seattle Public Schools and the University of Washington on mapping and data work to better align investments with educational and neighborhood outcomes.

Staff emphasized most edits are technical and accessibility-related (removing embedded tables and other formatting to improve screen-reader compatibility) and said they will return to committee for vote after continued engagement. Chair Dionne Foster asked members to send amendment requests to central staff by June 15 at 5:00 p.m. for consideration as the committee prepares for formal action.

Next steps: staff said they will submit a legislative-intent response addressing provider strain later in the month and return to the committee for a follow-up briefing and vote.