The Seattle City Council unanimously approved legislation on February 10, 2026, to begin funding the Seattle Social Housing Developer (SSHD), fulfilling a commitment made to voters. In February 2025, over 63 percent of Seattle voters supported Proposition 1A, aimed at addressing the city’s housing affordability crisis. The approved bill allows the city to transfer revenue generated from a 5 percent tax on employers for annual compensation exceeding $1 million to SSHD, which will create and maintain publicly owned, permanently affordable housing.

Councilmember Dan Strauss emphasized the significance of this legislation as a major investment in affordable housing, while Councilmember Dionne Foster noted the importance of social housing in providing stability for families facing rising housing costs. Interim CEO of SSHD, Tiffani McCoy, stated that the revenue will facilitate the acquisition of the first building, aiming to house hundreds of residents at various income levels. The city has already begun collecting Prop 1A payments for the 2025 tax year, with plans for a $2 million bridge loan to support SSHD’s initial operations. The council will continue its efforts to enhance social housing in Seattle.