Affordable housing advocates are pushing the city to use underutilized city owned property to build more housing, but it doesn't always pencil out.

The city of Seattle is sitting on 210 underutilized pieces of property that could be used for new affordable housing projects, advocates claim. Seattle Times reporter Bob Young writes that the city has looked into the potential developments, but has had difficulty making the math work. “Rents from affordable apartments would not cover the costs of developing and maintaining new buildings.”
Further, many of the sites identified by housing advocates are tied up with restrictions on uses or are just too small to accommodate the number of units that would make the development viable. Sharon Lee, executive director of the Low Income Housing Institute (LIHI), argues that the city's analysis presumes a 100 percent affordable housing development, and didn’t look at a potential mix of housing types.
Seattle Mayor Ed Murray’s staff is continuing to look at potential financing mechanisms for new housing development, including "linkage fees" on new development. A previous financing method, known as the Growth Fund, was eliminated in 2002 following the adoption of a law limiting property tax increases.
"Murray’s new development fee and his proposed inclusionary zoning — which requires new residential buildings to either include affordable units or pay a fee in lieu — are carrying out the goals of the old Growth Fund, but without using city tax revenues."
FULL STORY: Advocates push city of Seattle to use orphan properties for affordable housing

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