Seattle City Councilmember Dionne Foster is proposing temporary reductions in Mandatory Housing Affordability fees for qualifying housing developments, an effort she says could help stalled projects move into construction while maintaining longer-term affordable housing requirements.
Under Foster’s proposed MHA Accelerator ordinance, currently vested housing projects would receive an 80% reduction in the program’s in-lieu fee if they begin construction within two years. New projects could qualify for a 60% reduction if they submit a complete building permit application by Jan. 1, 2028, dedicate at least 25% of their units to family-sized housing with two or more bedrooms and meet other eligibility requirements.
Foster, who represents the citywide Position 9 seat and chairs the Council’s Housing, Arts and Civil Rights Committee, said the proposal is intended to address projects that have been approved or planned but are not moving forward.
“I believe Seattle’s housing crisis demands action on every front. We have to protect renters, prevent displacement, invest in affordable housing, and build more homes,” said Foster. “For me, creating an inclusive city means both protecting the people who are here and creating room for more people to call Seattle home. I’m bringing this legislation forward because we can’t afford to have housing projects ready to go that simply aren’t getting built. Mandatory Housing Affordability has been a key component of our housing landscape for the last decade — and it will continue to be a part of our approach to building an inclusive and affordable city for the long-term future.”
Seattle’s MHA program generally requires new development in areas where it applies to either include income-restricted affordable homes within a project or make payments that the city uses to support affordable housing. According to the city’s 2024 MHA report, developers had committed to providing 505 affordable homes through the program’s on-site performance option through the end of 2024.
Foster’s proposal would temporarily reduce the payment requirement rather than eliminate MHA. For currently vested projects, the reduction would be available regardless of unit mix. For new projects seeking the 60% reduction, at least one-quarter of the units would have to contain two or more bedrooms.
The proposal also includes protections intended to limit the incentive in areas identified as having high displacement risk. Non-vested projects in certain high-risk areas would generally be excluded from the 60% reduction unless the property is owned by a legacy homeowner.
“The moment we face requires a recalibration in order to meet the significant external pressures our housing and construction industry faces today. This proposal gets shovel-ready projects moving, puts people back to work, and creates more homes for families, while protecting communities at greatest risk of displacement,” noted Foster.
Developers receiving the reduction would also face construction deadlines. Vested projects would be required to receive their first foundation inspection within two years, while qualifying non-vested projects would have three years. Projects that fail to meet those requirements would have to repay the remaining balance of the full MHA fee.
Council President Joy Hollingsworth said she supports efforts to increase housing construction while maintaining an emphasis on affordable and family-sized housing.
“The City must use every tool available to increase our housing supply,” said Hollingsworth. “I support programs that can help move projects forward with a strong focus on family-sized housing. Affordable housing will also be a critical part of this strategy, along with protections for neighborhoods that have experienced high levels of displacement and remain at risk. We need to accelerate both family-sized and affordable housing projects so more people can find homes that meet their needs and remain rooted in our city.”
The legislation is paired with a separate resolution signaling the Council’s intent to consider extending an affordability requirement to market-rate residential development in Neighborhood Residential zones, where MHA currently does not apply.
Under the framework outlined in the resolution, future development in those areas could be required either to include lower-cost homes within a project or make an in-lieu payment. The Council would consider setting the requirement at a level intended not to significantly discourage development and keeping that level unchanged for five years.
The proposed framework would also consider lower per-unit fees for developments that use the full housing capacity allowed on a property. A portion of revenue generated by any future program would be directed toward permanently affordable homeownership. The resolution expresses the Council’s intent to explore those policies but does not itself establish the new requirement.
The distinction is important because the two measures would move housing policy in different directions at the same time: the ordinance would temporarily reduce MHA payments for qualifying developments in an effort to encourage near-term construction, while the resolution would begin exploring affordability requirements for market-rate development in Neighborhood Residential areas not currently covered by MHA.
The Housing, Arts and Civil Rights Committee reviewed the proposed ordinance and resolution on Sept. 18. Foster plans to continue discussing the measures with community members during the city’s budget process, with further committee consideration expected later this year.
The proposals remain under consideration and have not yet been adopted by the full City Council.
