The RFI Deadline — Social Housing Tests the Market

January 9th marks a key administrative milestone for Seattle’s newest public agency, as it moves from its organizational startup phase into active property acquisition. As of 5:00 PM today, the Seattle Social Housing Developer’s (SSHD) first Request for Information (RFI) window officially closes.

This process is designed to identify the buildings and land that will form the bedrock of the city’s social housing portfolio. Unlike traditional housing authorities, the SSHD is operating under a mandate to create a self-sustaining model that does not rely on traditional federal subsidies.

The 2026 Pipeline: Acquisitions vs. Construction

The agency is currently vetting several types of property to meet its goal of having a project under contract by early 2026:

• The Shovel-Ready Strategy: The SSHD is specifically targeting multifamily projects that were fully permitted but stalled due to high interest rates. By purchasing these “ready-to-go” sites in neighborhoods like Belltown and First Hill, the agency aims to bypass the years-long pre-development phase and finish them as public housing.
• The Capitol Hill Disposition Sites: The agency is looking at a cluster of six properties near Miller Park currently being offloaded by the non-profit Community Roots Housing. While these are existing affordable units, there is a significant push for the SSHD to intercept these properties to keep them from being re-marketed to private equity firms.
• Anti-Displacement in the CID: Groups like Puget Sound Sage are prioritizing acquisitions in the Chinatown-International District (CID). The goal is to bring existing affordable buildings into permanent public ownership to serve as an anti-displacement anchor for the neighborhood.
• The Crown Jewel: Montlake Surplus Land: The most high-profile potential site in today’s RFI is the WSDOT surplus land (the former Montlake Market site) left over from SR-520 construction. Advocates are pushing for this to be the SSHD’s first ground-up development, potentially focusing on affordable homeownership within the social housing framework.

The Funding Engine: Leveraging JumpStart Revenue

The feasibility of these acquisitions rests on a financial strategy involving the city’s Social Housing Tax.

• The Revenue Stream: In early 2026, the SSHD will receive its first dedicated funds from the 5% tax on individual compensation over $1 million. This is projected to bring in roughly $50 million annually.
• The Debt Strategy: The agency is not planning to buy properties using cash on hand. Instead, they intend to bond this revenue—using the guaranteed tax stream to back municipal bonds. This strategy could potentially unlock $600 million or more in immediate capital for the 2026–2027 development cycle.

Next in this series: We will dive into the Mixed-Income debate – exploring the friction between the self-sustaining social housing model and the urgent needs of Seattle’s lowest-income residents.