CB 121153 — Version 1 https://webapi.legistar.com/v1/seattle/Matters/16757/Texts/18090 CITY OF SEATTLE ORDINANCE __________________ COUNCIL BILL __________________ ..title AN ORDINANCE relating to the Social Housing Tax; authorizing the Mayor or designee to enter into an interlocal agreement with the Seattle Social Housing Developer to establish the terms and procedures for the implementation, administration, transfer, reporting, and oversight of the Social Housing Tax, including provisions for reimbursement of the City's administrative and implementation costs and outstanding loan balances; creating the Social Housing Tax Fund; and ratifying and confirming certain prior acts. ..body WHEREAS, on February 14, 2023, Seattle voters approved Initiative 135, a citizen-initiated measure to create an independent public development authority, the Seattle Social Housing Developer (the "PDA"), to develop, own, and maintain public affordable social housing in Seattle; and WHEREAS, on February 11, 2025, Seattle voters approved Proposition 1A, imposing a five percent tax rate on employers doing business in Seattle for any annual employee compensation above $1,000,000 (the "Tax"), which the City is responsible for collecting and transferring to the Seattle Social Housing Developer and is intended to support the development and operation of social housing in Seattle; and WHEREAS, Section 5.37.070 of the Seattle Municipal Code dictates that up to 5%, but no more than $2,000,000, of the annual Tax revenue may be allocated to administer the Tax with the remaining revenue to be promptly transferred to the PDA; and WHEREAS, the City and the PDA executed a loan agreement for up to $2,000,000 as authorized by Ordinance 127246; and WHEREAS, cities and public agencies are authorized to enter into interlocal cooperation agreements in accordance with chapter 39.34 RCW to jointly provide services; and WHEREAS, the City and the PDA desire to enter into an interlocal agreement for the purpose of governing the implementation, administration, transfer, reporting, and oversight of the Tax; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS: Section 1. The Mayor or designee is authorized to enter into an interlocal agreement with the Seattle Social Housing Developer substantially in the form attached to this ordinance as Attachment 1, with such changes as the Mayor deems appropriate and are consistent with this ordinance. The Mayor or designee is further authorized to execute amendments from time to time during the term of the agreement as the Mayor deems appropriate and consistent with this ordinance. Section 2. The Director of Finance is authorized to take all necessary and appropriate action to carry out the terms of the interlocal agreement. Section 3. A new Social Housing Tax Fund is created in the City Treasury, into which the revenues from the social housing tax in Seattle Municipal Code Chapter 5.37 will be deposited, and from which associated expenditures may be paid, including, but not limited to, City implementation costs, City administration costs, loan balances, and accrued loan interest, and from which the transfer of the net Tax proceeds to the Seattle Social Housing Developer will be made. All interest and other earnings on the Fund shall be deposited in the Fund and shall be used for the purposes of the Fund. Section 4. Any act consistent with the authority of this ordinance taken prior to its effective date is ratified and confirmed. Section 5. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070. Passed by the City Council the ________ day of _________________________, 2026, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2026. ____________________________________ President ____________ of the City Council Approved / returned unsigned / vetoed this ____day of _______________, 2026. ____________________________________ Katie B. Wilson, Mayor Filed by me this ________ day of _________________________, 2026. ____________________________________ Scheereen Dedman, City Clerk (Seal) Attachments: Attachment 1 - Interlocal Agreement By and between The City of Seattle and the Seattle Social Housing Developer Andrew Robinson OCF Seattle Social Housing Developer ILA ORD D1b 2 Template last revised February 19, 2025 2 Version No. 1