Funding & Policy Terms#

AMI (Area Median Income)#

The median household income for a metropolitan area, calculated annually by HUD. Seattle’s AMI is used as the benchmark for defining affordable housing eligibility – typically at percentages like 30%, 50%, 60%, or 80% of AMI.

Why it matters: When Seattle says housing is “affordable at 60% AMI,” that means affordable to households earning 60% of the area median – roughly $57,000 for a family of four in 2024. Because Seattle’s AMI is high (~$120,000), even “affordable” housing may be out of reach for many. Understanding AMI helps you evaluate whether affordable housing proposals serve people who actually need them.

See also: Affordable Housing, MHA

Learn more: Seattle Office of Housing: Income and Rent Limits | HUD: Income Limits

BEPS (Building Emissions Performance Standard)#

Seattle’s policy requiring large commercial and multifamily buildings (over 20,000 square feet) to meet greenhouse gas emissions performance targets by 2050, with interim milestones. Buildings must either reduce emissions or pay an alternative compliance fee. It’s one of the first building performance standards in the nation.

Why it matters: BEPS is a major climate policy that affects how buildings are designed, renovated, and operated in Seattle. Building operations account for a significant portion of Seattle’s carbon emissions, and BEPS targets the largest emitters. The policy creates both compliance costs and incentives for energy efficiency upgrades. Understanding BEPS helps advocates follow debates about balancing climate goals with housing affordability.

See also: Social Housing, Housing Levy

Learn more: Seattle OSE: Building Emissions Performance Standard | The Urbanist: Harrell Signs Building Emissions Standard Into Law

Community Land Trust (CLT)#

A nonprofit organization that owns land permanently and leases it to homeowners or developers, keeping housing affordable in perpetuity. The trust controls resale prices to maintain long-term affordability while still allowing residents to build equity.

Why it matters: CLTs are one of the most powerful tools for permanent affordability. Seattle’s Homestead Community Land Trust holds 200+ homes, and Africatown Community Land Trust has developed major projects in the Central District. CLTs can prevent displacement in gentrifying neighborhoods by keeping land out of speculative markets.

Learn more: Homestead Community Land Trust | The Urbanist: Role of Community Land Trusts

Equitable Development Initiative (EDI)#

A Seattle program launched in 2016 that provides grants and technical assistance to community-led projects aimed at preventing displacement and increasing access to opportunity for communities of color. Funded projects include cultural centers, affordable housing, and community spaces.

Why it matters: EDI funds grassroots anti-displacement work that traditional affordable housing programs don’t cover. Projects like Africatown’s Liberty Bank Building, the Ethiopian Community Center, and Friends of Little Saigon’s cultural center received EDI support. The program’s funding has been politically contested, making it an advocacy priority.

See also: Displacement, Community Land Trust

Learn more: Seattle OPCD: Equitable Development Initiative | The Urbanist: Seattle EDI Grants

Housing Levy#

Seattle’s voter-approved property tax levy dedicated to affordable housing production, preservation, and services. First passed in 1986 and renewed every 7 years. The 2023 levy was $970 million over seven years – more than triple the previous levy.

Why it matters: The Housing Levy is Seattle’s primary dedicated funding source for affordable housing, separate from MHA fees. It funds the creation and preservation of income-restricted units, homeownership assistance, and rental assistance. Levy funds are administered by the Seattle Office of Housing.

See also: MFTE, MHA

Learn more: Seattle Office of Housing: Housing Levy | The Urbanist: Mayor Harrell Housing Levy Proposal

Impact Fees#

One-time charges on new development to pay for infrastructure (roads, parks, schools) needed to serve new residents. Seattle has been slow to adopt impact fees compared to other cities.

Why it matters: Impact fees are a perpetual debate in Seattle. Developers argue they raise housing costs. Advocates say new development should pay for the infrastructure it requires. Whether and how Seattle implements impact fees affects both housing affordability and public services.

Learn more: MRSC: Impact Fees | MRSC: Impact Fees Do’s and Don’ts

Incentive Zoning (IZ)#

A zoning tool that grants developers additional building capacity (more height or floor area) in exchange for providing public benefits, typically affordable housing. Unlike mandatory requirements like MHA, incentive zoning is voluntary – developers choose whether to take the extra capacity.

Why it matters: Incentive zoning was Seattle’s primary affordable housing strategy before MHA made inclusionary requirements mandatory. The program still operates in some zones and is used in combination with MHA in others. Understanding how incentive zoning works helps advocates evaluate whether developers are maximizing affordable housing contributions when they take bonus capacity.

See also: MHA, FAR, Linkage Fees

Learn more: Seattle Office of Housing: Incentive Programs | The Urbanist: A Brief History of MHA

JumpStart Payroll Expense Tax#

Seattle’s tax on large businesses (payroll over $8.6 million) that pay employees more than $180,000 annually. Passed in 2020, JumpStart was initially dedicated to COVID response but is now the city’s primary progressive revenue source, funding affordable housing, economic development, and the Green New Deal.

Why it matters: JumpStart generates approximately $300 million annually and represents a significant policy shift toward taxing large corporations and high earners. The tax has been politically contested, with some business groups and council members seeking to redirect funds or weaken the tax. For housing advocates, JumpStart is a crucial funding stream for affordable housing production that’s at risk in each budget cycle.

Learn more: Seattle City Council: JumpStart Seattle | The Urbanist: Seattle Leaders Eye JumpStart Funds

Linkage Fees#

Fees charged on commercial development to fund affordable housing, based on the idea that new offices and retail generate demand for workers who need places to live. Part of Seattle’s MHA program alongside residential inclusionary zoning requirements.

Why it matters: Linkage fees were a key component of the 2015 Grand Bargain. They connect commercial growth to housing production, recognizing that office buildings and tech campuses create housing demand. Revenue from linkage fees goes into the affordable housing fund alongside residential MHA payments.

See also: MHA, Grand Bargain

Learn more: Seattle Office of Housing: MHA Commercial | The Urbanist: A Brief History of MHA

MFTE (Multifamily Tax Exemption)#

A city program that gives property tax breaks to developers who include affordable units in new apartment buildings. The tax exemption lasts 12 years.

Why it matters: MFTE is one of Seattle’s main tools for getting affordable units built in market-rate projects. When MFTE buildings’ exemptions expire, those affordable units can go to market rate – creating a slow-motion affordability cliff.

See also: MHA, Affordable Housing

Learn more: Seattle Office of Housing: MFTE Program | Seattle Office of Housing: MFTE Program 7

Move Seattle Levy#

A 9-year, $930 million property tax levy (2015-2024) funding transportation projects including bus speed improvements, bike lanes, bridge maintenance, and sidewalk repairs. Succeeded by a new levy proposal.

Why it matters: Transportation levies are how Seattle funds most of its street and transit improvements. Understanding levy cycles helps you know when to advocate for specific projects and how they’re funded.

Learn more: Seattle SDOT: 2015 Levy to Move Seattle | Seattle SDOT: 2024 Transportation Levy

REET (Real Estate Excise Tax)#

A tax on property sales that funds affordable housing, parks, and infrastructure. Washington recently gave cities more flexibility to use REET funds for affordable housing.

Why it matters: REET is a significant funding source for affordable housing in Seattle. Changes to how REET revenue can be used directly affect the city’s ability to build and preserve affordable units.

Learn more: MRSC: Real Estate Excise Taxes | WA Dept. of Revenue: REET

Publicly or cooperatively owned housing that remains permanently affordable and serves residents across a range of incomes, not just the lowest-income households. Rents are typically set as a percentage of income. Residents have a voice in governance.

Why it matters: Seattle voters approved Initiative 135 in 2023, creating a new Social Housing Developer (public development authority) to build and operate social housing. In 2025, voters approved Proposition 1A to fund it through a tax on high compensation. Social housing represents a new model distinct from traditional affordable housing programs.

See also: Housing Levy, AMI

Learn more: Seattle Social Housing Developer | The Urbanist: Seattle Social Housing Initiative Recipe for Success

TIF (Tax Increment Financing)#

A financing tool where future property tax increases in a designated area are used to pay for current infrastructure investments in that area. Washington authorized TIF in 2021 (HB 1189, codified as chapter 39.114 RCW), making it available to cities, counties, and port districts.

Why it matters: TIF was authorized in Washington in 2021 (HB 1189) and is now available to cities, counties, and port districts. As Seattle plans development around new light rail stations, TIF could become a significant tool for funding the infrastructure needed to support transit-oriented communities.

Learn more: MRSC: Tax Increment Financing | MRSC: TIF Now Available in Washington

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