Seattle's mayor Ed Murry along with city council member Mike O'Brien, have pushed out what some are calling the "Grand Bargin" between Real Estate developers and affordable housing advocates. Its been proposed that over the next 10 years, 6,000 units of affordable housing will be developed in Seattle. The first part of the plan is to create a commercial linkage fee that will require developers to pay on every square foot of new commercial development. The fee will vary anywhere from $5.00 to &17.00 per square foot. This Linkage fee will also be known as (AHIMP) Affordable Housing Impact Mitigation Program.
The second part of the "Grand Bargain" calls for Mandatory Inclusionary Housing (MIH) for new multifamily developments, requiring 5 to 8 percent of units be affordable for residents earning up to 60 percent of the Area Median Income (AMI) for 50 years. In 2015, 60 percent of AMI is $37,680 for an individual and $53,760 for a family of four.
The second part of the "Grand Bargain" calls for Mandatory Inclusionary Housing (MIH) for new multifamily developments, requiring 5 to 8 percent of units be affordable for residents earning up to 60 percent of the Area Median Income (AMI) for 50 years. In 2015, 60 percent of AMI is $37,680 for an individual and $53,760 for a family of four.
"With this legislation, Seattle — for the first time ever — will require that all new development in the city will pay for affordable housing," Murray said. "This is a bold, progressive proposal where growth itself will support affordable and environmentally sustainable neighborhoods. I am eager to work with the Council as we engage the public on this proposal as it moves through the legislative process."
O'Brien, chair of the Select Committee on Housing Affordability, said that he hears all the time that people in Seattle are struggling to keep up with rising rents.
"I will be working with my colleagues on the City Council to act as swiftly as possible on the legislation behind the Grand Bargain," O'Brien said.
The city estimates more than 45,000 households spend more than half their incomes on housing. Being in the business of Real Estate I don't doubt it. Prices are currently through the roof as well as rent. Not sure where I stand on this just yet but something certainly needs to be done.
Source: http://mynorthwest.com/11/2803967/Seattle-mayor-rolls-out-grand-affordable-housing-plan
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