Commercial Linkage Fee Approved—Seattle Moving Forward with Affordable Housing Agenda

Stephen Fesler reports on a significant development in the city of Seattle's highly scrutinized Housing Affordability and Livability Agenda (HALA) process, "when the Seattle City Council unanimously approved a Commercial Linkage Fee tied to all new commercial development."

"Council Bill 118498, as it is known, codifies a new chapter in the land use code," according to Fesler, giving developers three options to contribute to the city's affordable housing supply: "an onsite and offsite performance option, fee in lieu option, or combination of the two." 

A post by Scott Bonjukian provides more information about how the linkage fee works.

Fesler notes that the calculations of the linkage fee—i.e., how much development requires what contribution to the linkage fee requirements—was based "upon a comprehensive study by David Paul Rosen & Associates to evaluate the economic impacts that commercial activity and jobs place on the local housing market." The final linkage fee will implement fees much lower than that report's recommendation. Still, "the fees are projected to rake in well over $195 million over the next decade for affordable housing."

The remainder of Fesler's article details the proceedings of the council hearing that approved the new fee.