This week the Seattle City Council approved Mayor Ed Murray’s legislation to sell a smaller City-owned parcel to allow the construction of affordable housing by a private developer. The proceeds of the sale will be used to build even more affordable housing elsewhere in Seattle.
The City of Seattle owns a 7,200 square foot parcel at 6th and Yesler. Stream Real Estate intends to build a 140-unit apartment building on the property and adjacent parcels. For the next 50 years, all units in the new building must be affordable to households earning less than 80 percent of area median income.
The sale price for the City-owned parcel is approximately $1.4 million – fair market value. That revenue will be used by the City’s Office of Housing to support additional affordable housing development for our community’s most vulnerable residents.
“This sale encourages the production of more affordable apartments at this site and brings new revenue for future affordable housing throughout Seattle that will serve our lowest-income households,” said Mayor Ed Murray. “Thanks to the Council for quickly seizing this unique opportunity.”
“The City moves one step closer in its goal to produce 20,000 affordable units in the next ten years,” said Councilmember John Okamoto. “With the buyer building on-site affordable units and the City using the sale proceeds to develop additional affordable units, the City gains affordable housing on both sides of this deal.”
“The Mayor tasked the housing affordability committee with finding innovative ways to increase housing options in our City,” said Faith Pettis, co-chair of the Housing Affordability and Livability Agenda committee. “This proposal’s strategic use of City resources, nimble response to new opportunities, and commitment to effective partnerships is a great example of what we can do.”
“This is a win-win-win,” said Steve Walker, Director of the Office of Housing. “This property is too small to be efficiently developed on its own. By working with Stream Real Estate, we will enable affordable housing to be built on site and the City will receive additional resources to add to the existing 12,000 units of income- and rent-restricted housing already funded by the Office of Housing.”