| In
an attempt to address the city’s growing shortage
of affordable housing, some members of the Seattle City
Council have become students of the law of supply and
demand.
Build more units, they say, echoing the words of real
estate developers, and prices will become affordable—
to people who earn $43,600 to $65,400 a year, or 80 percent
to 120 percent of the area’s median income.
It’s a range of so-called workforce renters and
buyers. Incumbents are worried about them in an election
year where skyrocketing high-rises and rents are forcing
lower-income workers out of the city and driving neighborhood
activists nuts with box-like developments that they say
have no character.
In the past two years alone, according to data presented
to incumbent candidates, City Councilmembers Sally Clark,
David Della, Jean Godden, and Tom Rasmussen at a July
20 housing forum with developers, rents in the Seattle
area have jumped 14 percent – and are expected to
do so again over the next two years, which will increase
the monthly rent of a one-bedroom in a brand new building
from roughly $1,500 today to $1,700 in 2009.
A candidates’ forum planned for Aug. 2 on growth
and development will look at what, if anything, Seattle
can do to keep the city growing and affordable. But other
than tinkering with a tax break for developers who build
median-priced affordable housing units, the incumbents
aren’t endorsing any specific tactics or developer
incentives. City Councilmember Jean Godden is facing sharp
criticism that she’s a tool of developers.
At a July 17 meeting where the 43rd District Democrats
voted on their endorsements for the Aug. 21 primary, a
flier co-authored by John Fox of the Seattle Displacement
Coalition stated that Godden has “consistently voted
against the interests of neighborhoods, low-income and
working people while routinely catering to the likes of
Paul Allen, downtown, and the corporate establishment.”
Godden says Fox has it wrong.
“I’ll have to recall which claims I’ve
turned down,” says Godden, who is campaigning for
a second term. “It seems to me when [developers]
wanted to put a hotel into the Alaska Building, I said
no.”
All the same, the statement helped sink her with Democrats
in the University District, resulting in a no endorsement
vote – a shutout that Green Party candidate Joe
Szwaja says will bolster his chances against Godden. According
to Seattle Ethics and Elections reports, Godden had raised
$167,620 as of July 16, in part from real-estate interests
including Al Clise, Frank Stagen, John Teutsch, Greg Smith,
Jon Runstad and Paul Allen’s Vulcan Inc. Szwaja
had raised $30,000.
On July 10, Democrats in Ballard’s 36th District
also gave Godden a no endorsement after several stood
and gave speeches for Szwaja, who said at the meeting
that he wants to see more city money spent on people not
developers.
At last week’s City Council housing forum, however,
seven developers said they make little profit on median-priced
units and that the tax break the city provides for including
more affordable units in a project – the Multifamily
Tax Exemption, or MFTE – is seldom of financial
benefit to them in high-density, high-cost areas such
as Capitol Hill where the tax break is allowed.
Godden and City Councilmember David Della -- the only
other incumbent with a serious challenger this year --
both say they’re interested in reworking or expanding
the tax break so more developers will use it. Both also
broadly endorse the concept of inclusionary zoning, in
which the city grants developers more height in exchange
for including some affordable units, or incentive zoning,
in which developers get extra height in exchange for a
fee that goes toward affordable housing.
Last year, the council passed a downtown incentive in
which developers who pay about $18 a square foot for affordable
housing are allowed to build higher than 190 feet. With
upzoning planned south of downtown and in the South Lake
Union area, Godden and Della both said they would consider
a similar fee.
“We tend to give away our zoning,” Godden
says, so “I think that was an important thing to
do.”
But both were shy on the topic of going back to the Legislature
to get the authority to halt or cap the current rush of
apartments being converted to condominiums – a crisis
that led City Councilmember Tom Rasmussen, chair of the
council’s Housing and Human Services Committee,
to champion a condo conversion bill that failed in this
year’s Legislature.
That hesitation, says challenger Tim Burgess, is one reason
he’s running against Della, who he says has shown
poor leadership on the council. Burgess, who spent 21
years as a marketing consultant for nonprofits, says he
wants to increase developer incentives, but that, in the
short term, the city has to rein in condo conversions.
“I agree with Tom,” Burgess says. “I
think we are in such an emergency that we need to take
at least some temporary measures like a limit on conversions
until the supply of housing catches up.”
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