Seattle's budget crisis could threaten affordable housing funds

Seattle budget woes threaten homelessness, housing funds

Affordable housing advocates fear the City of Seattle could raid funds intended for affordable housing to fix its staggering budget deficit of more than $200 million.

SEATTLE - Affordable housing advocates fear the City of Seattle could raid funds intended for affordable housing to fix its staggering budget deficit of more than $200 million.

The city's JumpStart Housing Fund, financed by an excise tax on large corporations such as Amazon, generates more than $300 million annually. This revenue supports critical affordable housing projects and resources for the city's growing homeless population, funding projects run by the Low Income Housing Institute's (LIHI).

"JumpStart has become a central pillar to Seattle's affordable housing infrastructure," said Jon Grant, LIHI Chief Strategy Officer. "Our organization has been able to build or preserve hundreds of affordable units for working-class families and people experiencing homelessness in just the last year alone."

Patience Malaba, Executive Director of the Housing Development Consortium, shares in his concern. She argues the payroll expense tax has a defined intent that was committed to affordable housing.

"To have a reverse of that commitment is a concern to all of us," said Malaba. "Now, more than ever, those funds are critical to move us forward in producing the necessary affordable housing in our city."

Even if the city retains the housing fund, the need for affordable housing remains pressing. Seattle requires 112,000 new homes by 2044, a target that appears increasingly unattainable due to slow progress.

Seattle's economic disparity is stark: while one-third of residents are classified as low-income, one out of every fourteen is a millionaire. Data from the Seattle Office of Housing indicates that the income of higher-income households has significantly increased over the past five years, widening the wealth gap.

"Just getting ready to do the thing can take several years by itself," said council member Tammy Morales, highlighting the delays that hamper development efforts.

During a presentation to council members on Wednesday, representatives from Seattle's Office of Housing pointed out the significant lag between funding commitments and the actual start of construction. After dollars are locked down, it takes an average of three years before hammer hits nail.