Harrell Proposes $2 Million Bridge Loan To Support Seattle Social Housing Developer

On Monday, Seattle Mayor Bruce Harrell announced legislation to authorize a $2 million bridge loan for the Seattle Social Housing Developer, a Public Development Authority (PDA) created by voters to build, own, and manage publicly owned, publicly financed, mixed-income housing in Seattle.

The short-term loan would be issued by the City’s Finance Director and is intended to support the developer’s core operations and potential property acquisitions through early 2026, when the first revenue from an increase to the Payroll Expense Tax—approved by voters via Initiative 137—is expected to be available.

“Increasing housing supply and diversity have been top priorities for my administration, creating more safe, affordable places for people to call home,” said Harrell. “While there were different strategies for how to fund the social housing developer, we share a vision for this model to be successful and add more housing options across our city. This loan will provide critical support during this interim period for planning and capacity-building so that the developer is set up for success and can achieve its goal of operating publicly owned, mixed-income housing.”

Initiative 135, passed by voters in 2023, established the Social Housing PDA and required the City to provide 18 months of startup funding. To date, the City has contributed $870,000, with an additional $180,000 coming from the Washington State Department of Commerce, totaling $1.05 million in initial support.

This funding enabled the PDA to launch operations, hire key staff, and onboard its first CEO, Roberto Jiménez. The City disbursed the final portion of the startup funding in March 2025. Without bridge financing, officials say the developer could face significant financial challenges before new revenue arrives.

“The Seattle Social Housing Developer is focused on addressing the city’s urgent unmet need for affordable housing that many of our citizens have experienced through the establishment of the innovative social housing model,” said Jiménez. “This housing will be inclusive for all residents, including low-income households and working people like teachers, service workers, firefighters, and more. This loan from the City will allow us to build out the staffing and operational support needed as we look towards property acquisition to make this vision a reality in Seattle.”

The legislation authorizing the loan will be transmitted to the City Council and reviewed by the Finance, Native Communities & Tribal Governments Committee.

“Voters have been clear – Seattle is ready for social housing. Now, we need to do everything we can to make sure this transformative investment is successful,” said Councilmember Dan Strauss, who chairs the committee. “This agreement will help ensure the Social Housing Developer has the resources they need now to hit the ground running next year, when tax revenue starts coming in. Thank you to the Seattle Social Housing Developer, Mayor Harrell, and all the city staff who have partnered with us for months to make this happen.”

In addition to the loan proposal, Mayor Harrell announced his appointment of Brian Abeel to the Seattle Social Housing Board. Recommended by CEO Jiménez, Abeel is a seasoned finance executive with extensive nonprofit board experience and will help guide the board as it prepares to oversee future capital projects.

The proposed loan aligns with Mayor Harrell’s One Seattle Housing Agenda, a comprehensive effort to expand housing affordability and production citywide.