Seattle's Incentive Zoning Pays Out Funding for Affordable Housing Projects

Seattle's incentive zoning program is paying dividends and funding projects. Look for 110 affordable units to be built in the Capitol Hill neighborhood by 2019.

1 minute read

January 1, 2017, 1:00 PM PST

By James Brasuell @CasualBrasuell


Seattle Mayor Ed Murray recently "announced $47 million in funding for affordable housing via the City’s optional incentive zoning program and the housing levy," reports Doug Trumm.

Seattle's incentive zoning (not to be confused with inclusionary zoning) "allows developers an extra floor above normal height limits in exchange for either the performance option of restricting some units below 80% [area media income] on site or the payment option of contributing to the City’s affordable housing fund," explains Trumm.

While the city of Seattle prepares its initial forays into mandatory inclusionary zoning with the upcoming University District rezoning, "Incentive Zoning receipts were $13 million larger than the Seattle Office of Housing anticipated." Paired with "$15 million earmarked for affordable multi-family housing from the 2009 Housing Levy," the city now has enough affordable housing funding to build 610 units. Among those 610 units are 110 affordable units to be built on a site in the Capitol Hill neighborhood, as detailed in the article.

Friday, December 16, 2016 in The Urbanist

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Bend, Oregon

Bend, Oregon Zoning Reforms Prioritize Small-Scale Housing

The city altered its zoning code to allow multi-family housing and eliminated parking mandates citywide.

1 hour ago - Strong Towns

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

2 hours ago - Smart Cities Dive

Green Skid Row mural satirizing city limit sign in downtown Los Angeles, California.

LA Denies Basic Services to Unhoused Residents

The city has repeatedly failed to respond to requests for trash pickup at encampment sites, and eliminated a program that provided mobile showers and toilets.

3 hours ago - Los Angeles Public Press