City of Seattle Mandatory Housing Affordability (MHA)
City of Seattle Mandatory Housing Affordability (MHA)
Mandatory Housing
Affordability (MHA)
a program of the
Housing Affordability and Livability Agenda
Council Briefing
June 7, 2016
MHA-Commercial Ordinance
(Affordable Housing Impact Mitigation)
Fall 2015
MHA-C Refinements
MHA-Residential Ordinance
Transmitted May 3, 2016
No overlap: cannot double count same units for MFTE and MHA
Affordability duration: 50 years from date of final certificate of occupancy
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Affirmative marketing
Owners providing affordable housing must affirmatively market affordable units
Condo conversion
Owner may convert upon payment of a fee in lieu of continuing affordability
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Equity outcomes
from City investments
Mitigate displacement and stimulate
economic development
IZ payment-funded housing
production by affordability (units)
30% AMI
50% AMI
60% AMI
80% AMI
84
units
698 units
1,043
units
576 units
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Outside Downtown/SLU
Additional capacity is generally lower-cost construction
(wood-frame) and a larger percentage of the building
Value of additional capacity is greater for residential
than commercial
Requirements vary by area:
Low-cost area
Medium-cost area
High-cost area
Residential *
5.0%
6.0%
7.0%
Commercial
$5
$7
$8
15
Performance Option
Units
Residential
$7.25 $12.88*
2.8% 5.0%*
700
Commercial
$8.00 $17.50
5.0% 10.6%
1,600
Other areas
High-cost area
Units
Residential*
$7-8 / 5.0%
$12-15 / 6.0%
$18-22 / 7.0%
3,100
Commercial
$5 / 5.0%
$7 / 5.0%
$8 / 5.0%**
800
7-story apartment
building
NC-75 zone
65 total housing units
50,000 gross residential
square feet
Requirement
Performance
outcome
Payment
outcome
High-cost
area
7% or $18/sq ft
4.5 units
11.2 units
($900,000)
Mediumcost area
6% or $12/sq ft
3.9 units
7.5 units
($600,000)
Low-cost
area
5% or $17/sq ft
3.2 units
4.4 units
($350,000)
3.2% or
$8.25/sq ft
20.3 units
51.5 units
($4.1M)
Area
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Displacement analysis
Downtown and South Lake Union
Analysis conducted as part of SEPA finds that MHA will reduce
displacement overall because:
Additional capacity allows more development on fewer sites
MHA will not significantly change the likelihood that an individual
parcel will redevelop
MHA will increase the amount of rent- and income-restricted
housing available
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Addressing displacement
Some displacement will occur as Seattle continues to
grow (with or without MHA)
Economic displacement due to rising housing costs resulting
from a shortage of housing and growing demand
Anti-displacement strategies
Increasing supply of both market-rate and affordable housing
Equitable Development Initiative
Pursue Preservation Tax Exemption (PTE) proposal in 2017
legislative session
Identify at risk properties or sites through analysis
Consider targeted acquisition of priority buildings using current &
future affordable housing resources
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June 7
PLUZ
briefing
June 21
Public
hearing
July 8
PLUZ
discussion
July 19
possible
PLUZ vote
July 25
possible full
Council vote