Facing Plummeting Permit Applications, Seattle Weighs Rolling Back Mandatory Affordability Fee

While many factors affect the drop in housing permits, developers say a change to the fee could make a significant impact in moving projects along.

1 minute read

March 29, 2026, 9:00 AM PDT

By Diana Ionescu @aworkoffiction


Construction crane next to large building under construction against sunset sky in Seattle, Washington.

Construction permits have slowed to a trickle, causing concern among city leaders. | oksana.perkins / Shutterstock

A landmark Seattle housing law is facing pushback as the city sees permit applications for new housing drop precipitously, reports David Kroman in The Seattle Times.

City officials saw the Mandatory Housing Affordability program, passed between 2017 and 2019, as “a best-of-all-worlds approach to unleashing the private market while also taking advantage of a generationally good environment for development on behalf of the public.” The program requires developers who want to build larger buildings  to pay into an affordable housing fund or offer affordable units. 

But last year saw only half as many permit applications as 2024, bringing in only $22 million in revenue for affordable housing, prompting city leaders to consider scaling back or pausing the fees for up to three years. A coalition of developers says scaling back the fees by 75 to 90 percent could unlock at least 13 permitted housing projects that are currently on hold.

Wednesday, March 25, 2026 in The Seattle Times

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