Category: News Releases

FOR IMMEDIATE RELEASE: 9/1/2015

Mayor Murray, Councilmember O'Brien introduce legislation to build new affordable housing
Proposal stems from the HALA committee’s “Grand Bargain” to create 6,000 new affordable housing units

SEATTLE - Today Mayor Ed Murray and Councilmember Mike O’Brien introduced legislation that will create 6,000 units of affordable housing throughout Seattle. The proposal comes from the Mayor and City Council’s 28-member Housing Affordability and Livability Agenda (HALA) advisory committee, and has been hailed as a “Grand Bargain” between affordable housing advocates and real estate developers.

“Seattle is experiencing unprecedented growth, and our challenge is to build fairly and affordably. We want sustainable, socially inclusive and economically diverse neighborhoods that are walkable, close to transit and job centers. To build these equitable communities, we must ensure that our teachers, nurses, hotel and restaurant workers who work in the city can also afford to live here,” said Mayor Murray. “With this legislation, Seattle - for the first time ever - will require that all new development in the city will pay for affordable housing. This is a bold, progressive proposal where growth itself will support affordable and environmentally sustainable neighborhoods. I am eager to work with the Council as we engage the public on this proposal as it moves through the legislative process.”

“I continually hear from people in our city struggling to keep up with rising rents. The Grand Bargain represents 6,000 desperately needed, new affordable units that we cannot build fast enough—especially not for those in need today,” said Councilmember Mike O’Brien, Chair of the Select Committee on Housing Affordability. “I will be working with my colleagues on the City Council to act as swiftly as possible on the legislation behind the Grand Bargain.”

There are two major components to the “Grand Bargain.” The first establishes an Affordable Housing Impact Mitigation Program (AHIMP) - commonly referred to as a commercial linkage fee - that will directly fund the construction of new affordable housing by requiring developers to pay a fee on every square foot of new commercial development. The linkage fee will range from $5 to $17 per square foot, based on the size and location of the commercial development.

The second part of the “Grand Bargain” calls for Mandatory Inclusionary Housing (MIH) for new multifamily developments, requiring five to eight percent of units be affordable for residents earning up to 60 percent of the Area Median Income (AMI) for 50 years. In 2015, 60 percent of AMI is $37,680 for an individual and $53,760 for a family of four. As an alternative to on-site units, developers can pay a fee to construct new affordable housing offsite.

“The Grand Bargain is evidence that people across sectors - public, nonprofit and for-profit - all want this city to be a place of opportunity for people of all income levels and all walks of life,” said Susan Boyd, Director of Real Estate Development for Bellwether Housing. “Development can be both a tool for economic growth and a tool for accomplishing equity and justice.” 

In exchange, the City will look to increase development capacity in various ways throughout the city. New developments in downtown and South Lake Union will be allowed an extra 1,000 square feet per floor. Outside of the downtown core, new buildings will be allowed approximately one additional story in height. These changes will be subject to program design and the existing legislative rezoning process. The full chart of proposed changes can be viewed here.

“The legislation being announced today is an important part of a much larger strategy to address housing affordability in Seattle,” said Touchstone President A-P Hurd. “This approach is much more predictable for the City and developers. Downtown and SLU development have contributed fees toward the production of affordable housing in Seattle for years through the City’s Incentive Zoning Program, but this represents both an increased commitment from developers, and an increase in the City's overall capacity to build more housing, which is a critical part of any successful housing strategy in a growing city."

The “Grand Bargain” will be phased in over a number of years. When fully implemented, it will create at least 6,000 new affordable homes over 10 years.

Current market rates for a newer one-bedroom unit range from $1,399 to $1,887. The table below shows average monthly rent rates by neighborhood for buildings built since 2010:

Ballard	$1,769
Capitol Hill/Eastlake	$1,887
Green Lake / Wallingford	$1,671
Queen Anne	$1,694
Rainier Valley	$1,399
West Seattle	$1,615

In comparison, the affordable rate (30% of a household’s monthly income) for a one bedroom unit for an individual earning 60 percent AMI is $1,008. Under the proposed “Grand Bargain” framework, rents for new affordable housing units would be set at this price or lower.

“Seattle is where I work, but I can’t afford to raise my family here,” said Brittany Johnson, a homecare worker. “This plan would allow me to have a home in Seattle for what I’m already paying in Renton - giving me back the hours I lose on the bus to have with my toddler. That would be a dream come true.”
Over 45,000 households spend more than half their incomes on housing in Seattle.

In July, the HALA advisory committee delivered to the mayor 65 recommendations after 10 months of work. The consensus-driven proposal was crafted by affordable housing advocates, community voices, developers and housing experts appointed by the mayor and Seattle City Council in September of 2014.

The legislation will be taken up by the City Council’s Select Committee on Housing Affordability. A schedule for the consideration of the legislation can be found here.

- 30 -

Office of the Mayor

[View in Council Newsroom]

FOR IMMEDIATE RELEASE: 8/31/2015

Councilmember O'Brien Proposes Innovative Legislation to Give Drivers a Voice on the Job

SEATTLE - City Councilmember Mike O'Brien will introduce new legislation next week that would give eligible drivers at taxi, for-hire, and transportation network companies ("TNCs", e.g., Uber, Lyft) a voice on the job and the opportunity to negotiate for improved working conditions at their companies.

"Seattle has made great gains in recent years in promoting fair labor practices and the opportunity to earn a decent living, this is the next step in that work," said Councilmember Mike O'Brien. "Too many drivers in this industry are unable to earn a living wage, or even the minimum wage. So we are embarking on an innovative new approach to raising standards for drivers in an industry that prides itself on innovation. We know that when workers come together to use their collective voice, they can make meaningful changes in their pay and working conditions."

"Drivers just want the same rights as other workers in Seattle," said Takele Woldemariam with the App-Based Drivers Association. "I got help from a C.P.A. to prepare my 2014 taxes. He told me I made $2.75 an hour last year as an UberX driver."

"My community is deeply affected by this issue. These used to be good jobs, and they can be good jobs again. Drivers just don't want to be exploited," said Fasil Teka with the App-Based Drivers Association.

These drivers are considered independent contractors and, as such, are not covered by the National Labor Relations Act that provides for collective bargaining between employers and unions representing employees. Independent contractors are also excluded from a host of labor standards other workers have, such as minimum wage and hour laws, health and safety standards on the job, or reimbursements for workplace related costs. Over the past few years, Seattle has implemented ordinances to raise local labor standards that these drivers are exempt from, including the new minimum wage, paid sick and safe leave, wage theft, and fair chance employment. This legislation would give drivers a chance to address these issues in their industry.

The legislation would create a process whereby a majority of independently contracted drivers working for the same company could choose to join a Driver Representative organization to negotiate the pay rates and conditions of their employment. It also establishes penalties for failure to comply with the new framework, including interest arbitration, the possibility of fines, or the revocation of regulatory licenses.

The legislation will be formally introduced at the next Full Council meeting on September 8, the day after Labor Day. The first committee discussion will take place on Wednesday, September 9 at 2:00pm in the Finance & Culture Committee.

For more information on the legislation, refer to this page Councilmember Mike O'Brien's website: http://www.seattle.gov/council/issues/VoiceForDrivers/.

# # #

Seattle City Council meetings are cablecast live on Seattle Channel 21, HD Channels 321 Comcast, 721 Wave and on the City Council's website. Copies of legislation, Council meeting calendar, and archives of news releases can be found on the City Council website. Follow the Council on Twitter and on Facebook.

[View in Council Newsroom]