Funding & Policy Terms#

AMI (Area Median Income)#

The median household income for a metropolitan area, calculated annually by HUD. Seattle’s AMI is used as the benchmark for defining affordable housing eligibility – typically at percentages like 30%, 50%, 60%, or 80% of AMI.

Why it matters: When Seattle says housing is “affordable at 60% AMI,” that means affordable to households earning 60% of the area median – roughly $57,000 for a family of four in 2024. Because Seattle’s AMI is high (~$120,000), even “affordable” housing may be out of reach for many. Understanding AMI helps you evaluate whether affordable housing proposals serve people who actually need them.

See also: Affordable Housing, MHA

Learn more: Seattle Office of Housing: Income and Rent Limits | HUD: Income Limits


Business Improvement Area (BIA)#

A self-taxing district where property owners and businesses collectively fund maintenance, marketing, safety, and beautification for their commercial area. Seattle has 11 established BIAs, including the Metropolitan Improvement District downtown (operated by the Downtown Seattle Association), Pioneer Square, Chinatown/International District, University District, Ballard, Broadway, Columbia City, West Seattle Junction, 15th Avenue East, SODO, and the Seattle Tourism Improvement Area.

Why it matters: BIAs are the primary mechanism through which Seattle’s neighborhood business districts organize, fund, and manage themselves. Every property owner in a BIA is required to pay an assessment, and the funds are used locally for services like street cleaning, security ambassadors, marketing, and public space activation. Understanding BIAs helps advocates engage with the governance of their neighborhood’s commercial areas and influence how district resources are spent. BIAs also serve as key partners for the city’s Office of Economic Development on issues like commercial vacancy and small business support.

See also: Linkage Fees, MHA

Learn more: Seattle OED: Business Improvement Areas | The Urbanist: Business Improvement Areas Provide Community-Driven Approach


Business Community Ownership Fund (BCO Fund)#

A first-in-the-nation program launched in 2024 by Seattle’s Office of Economic Development, Grow America, and JPMorgan Chase that helps small business owners collectively purchase and own the commercial real estate they occupy. The fund creates an LLC for each property, and multiple business owners become members who collectively own the building. Participating businesses secure lease rates below market value with no future increases. The program is backed by a combined $20 million investment.

Why it matters: The BCO Fund addresses the root cause of commercial displacement — the lack of ownership. When small businesses rent, they are vulnerable to rent increases, lease non-renewals, and building sales. By putting business owners on a path to property ownership through a shared model, the BCO Fund creates permanent affordability and wealth-building opportunities. The program prioritizes BIPOC, immigrant, women, and LGBTQIA+ business owners in high-displacement-risk neighborhoods. As of 2024, the fund has opened two properties: La Union Studio in Mt. Baker and Marjorie’s restaurant in the Central District.

See also: Business Improvement Area, Equitable Development Initiative, Legacy Business Program

Learn more: Seattle OED: Business Community Ownership Fund | Mayor’s Office: BCO Fund Launch


BEPS (Building Emissions Performance Standard)#

Seattle’s policy requiring large commercial and multifamily buildings (over 20,000 square feet) to meet greenhouse gas emissions performance targets by 2050, with interim milestones. Buildings must either reduce emissions or pay an alternative compliance fee. It’s one of the first building performance standards in the nation.

Why it matters: BEPS is a major climate policy that affects how buildings are designed, renovated, and operated in Seattle. Building operations account for a significant portion of Seattle’s carbon emissions, and BEPS targets the largest emitters. The policy creates both compliance costs and incentives for energy efficiency upgrades. Understanding BEPS helps advocates follow debates about balancing climate goals with housing affordability.

See also: Social Housing, Housing Levy

Learn more: Seattle OSE: Building Emissions Performance Standard | The Urbanist: Harrell Signs Building Emissions Standard Into Law


Building Electrification#

The transition of buildings from fossil fuel systems — primarily natural gas furnaces, boilers, and water heaters — to electric alternatives such as heat pumps. In Seattle, building electrification is a central climate strategy because over 90% of building emissions come from on-site fossil fuel combustion, and the city’s electricity supply (Seattle City Light) is over 90% carbon-free, primarily from hydropower.

Why it matters: Because Seattle’s electric grid is already largely clean, switching a building from gas to electric heating achieves an immediate emissions reduction — unlike cities that rely on coal or gas for electricity generation. The city’s Clean Heat Program has helped over 2,000 households convert from oil to heat pumps since 2017. Seattle’s Energy Code has progressively tightened requirements for new buildings, pushing toward all-electric construction. At the state level, building electrification has been politically contested: voters passed Initiative 2066 in November 2024 to block gas-to-electric transition policies, but a court ruled it unconstitutional in March 2025 (litigation ongoing).

See also: BEPS, Housing Levy

Learn more: Seattle OSE: Buildings & Energy | The Urbanist: Harrell Signs BEPS Into Law


Community Land Trust (CLT)#

A nonprofit organization that owns land permanently and leases it to homeowners or developers, keeping housing affordable in perpetuity. The trust controls resale prices to maintain long-term affordability while still allowing residents to build equity.

Why it matters: CLTs are one of the most powerful tools for permanent affordability. Seattle’s Homestead Community Land Trust holds 200+ homes, and Africatown Community Land Trust has developed major projects in the Central District. CLTs can prevent displacement in gentrifying neighborhoods by keeping land out of speculative markets.

See also: Displacement, Equitable Development Initiative

Learn more: Homestead Community Land Trust | The Urbanist: Role of Community Land Trusts


Community Benefit Agreement (CBA)#

A legally binding contract between a developer and a community coalition in which the developer commits to specific obligations — such as affordable housing, local hiring, small business support, or restrictions on chain retail — in exchange for the community’s support of a development project. CBAs are negotiated directly between developers and organized community groups, not mandated by government.

Why it matters: CBAs give community members a direct seat at the negotiation table for major development projects. Seattle’s most significant CBA was the 2008 Dearborn Street agreement, negotiated between Puget Sound Sage, Little Saigon small businesses, neighborhood councils, and labor unions on one side, and the developer of a proposed $300 million mall at S. Dearborn and Rainier Avenue on the other. Although that project was canceled during the 2009 recession, the agreement — which included 200 units of low-income housing, $1.8 million for small business support, and chain retail restrictions — established the first legally binding CBA in the Puget Sound region and remains a model for future negotiations.

See also: Equitable Development Initiative, Business Community Ownership Fund

Learn more: Puget Sound Sage: Dearborn CBA | The Urbanist: Convention Center $83M Benefits Package


Equitable Development Initiative (EDI)#

A Seattle program launched in 2016 that provides grants and technical assistance to community-led projects aimed at preventing displacement and increasing access to opportunity for communities of color. Funded projects include cultural centers, affordable housing, and community spaces.

Why it matters: EDI funds grassroots anti-displacement work that traditional affordable housing programs don’t cover. Projects like Africatown’s Liberty Bank Building, the Ethiopian Community Center, and Friends of Little Saigon’s cultural center received EDI support. The program’s funding has been politically contested, making it an advocacy priority.

See also: Displacement, Community Land Trust

Learn more: Seattle OPCD: Equitable Development Initiative | The Urbanist: Seattle EDI Grants


Housing Levy#

Seattle’s voter-approved property tax levy dedicated to affordable housing production, preservation, and services. First passed in 1986 and renewed every 7 years. The 2023 levy was $970 million over seven years – more than triple the previous levy.

Why it matters: The Housing Levy is Seattle’s primary dedicated funding source for affordable housing, separate from MHA fees. It funds the creation and preservation of income-restricted units, homeownership assistance, and rental assistance. Levy funds are administered by the Seattle Office of Housing.

See also: MFTE, MHA

Learn more: Seattle Office of Housing: Housing Levy | The Urbanist: Mayor Harrell Housing Levy Proposal


HEAL Act (Healthy Environment for All)#

Washington’s first statewide environmental justice law (SB 5141), signed in 2021. The HEAL Act requires seven state agencies — Ecology, Health, Agriculture, Commerce, Natural Resources, Transportation, and Puget Sound Partnership — to incorporate environmental justice into strategic plans, budget decisions, and significant agency actions. The law created a 14-member Environmental Justice Council appointed by the Governor.

Why it matters: The HEAL Act establishes a legal framework for addressing the cumulative environmental and health burdens borne by communities of color and low-income communities. It mandates use of the Washington Environmental Health Disparities Map to identify overburdened communities and requires agencies to conduct environmental justice assessments before taking significant actions. For Seattle urbanists, the HEAL Act means state transportation, housing, and land use decisions must now formally consider equity impacts — a lever that advocates can use to push for better outcomes in communities like the Duwamish Valley, where state highway and port decisions have historically compounded local pollution.

See also: JumpStart Payroll Expense Tax, Equitable Development Initiative

Learn more: WA Dept. of Ecology: HEAL Act | Front and Centered: HEAL Act


Impact Fees#

One-time charges on new development to pay for infrastructure (roads, parks, schools) needed to serve new residents. Seattle has been slow to adopt impact fees compared to other cities.

Why it matters: Impact fees are a perpetual debate in Seattle. Developers argue they raise housing costs. Advocates say new development should pay for the infrastructure it requires. Whether and how Seattle implements impact fees affects both housing affordability and public services.

Learn more: MRSC: Impact Fees | MRSC: Impact Fees Do’s and Don’ts


Incentive Zoning (IZ)#

A zoning tool that grants developers additional building capacity (more height or floor area) in exchange for providing public benefits, typically affordable housing. Unlike mandatory requirements like MHA, incentive zoning is voluntary – developers choose whether to take the extra capacity.

Why it matters: Incentive zoning was Seattle’s primary affordable housing strategy before MHA made inclusionary requirements mandatory. The program still operates in some zones and is used in combination with MHA in others. Understanding how incentive zoning works helps advocates evaluate whether developers are maximizing affordable housing contributions when they take bonus capacity.

See also: MHA, FAR, Linkage Fees

Learn more: Seattle Office of Housing: Incentive Programs | The Urbanist: A Brief History of MHA


JumpStart Payroll Expense Tax#

Seattle’s tax on large businesses (payroll over $8.6 million) that pay employees more than $180,000 annually. Passed in 2020, JumpStart was initially dedicated to COVID response but is now the city’s primary progressive revenue source, funding affordable housing, economic development, and the Green New Deal.

Why it matters: JumpStart generates approximately $300 million annually and represents a significant policy shift toward taxing large corporations and high earners. The tax has been politically contested, with some business groups and council members seeking to redirect funds or weaken the tax. For housing advocates, JumpStart is a crucial funding stream for affordable housing production that’s at risk in each budget cycle.

See also: Housing Levy, Equitable Development Initiative

Learn more: Seattle City Council: JumpStart Seattle | The Urbanist: Seattle Leaders Eye JumpStart Funds


Linkage Fees#

Fees charged on commercial development to fund affordable housing, based on the idea that new offices and retail generate demand for workers who need places to live. Part of Seattle’s MHA program alongside residential inclusionary zoning requirements.

Why it matters: Linkage fees were a key component of the 2015 Grand Bargain. They connect commercial growth to housing production, recognizing that office buildings and tech campuses create housing demand. Revenue from linkage fees goes into the affordable housing fund alongside residential MHA payments.

See also: MHA, Grand Bargain

Learn more: Seattle Office of Housing: MHA Commercial | The Urbanist: A Brief History of MHA


Legacy Business Program#

A Seattle Office of Economic Development program launched in 2019 that recognizes small businesses that have operated for at least 10 years and made significant cultural contributions to their neighborhoods. One business is selected from each of the seven council districts annually and receives public recognition, a commercial lease and succession planning toolkit, and marketing and legal consultation.

Why it matters: Legacy businesses — the corner grocery, the family restaurant, the neighborhood barbershop — anchor community identity but face the same displacement pressures as residential tenants: rising rents, lease non-renewals, and redevelopment. The program grew out of the 2016 Commercial Affordability Advisory Committee’s recommendation to study legacy business support, followed by a 2017 study funded at the initiative of Councilmember Herbold. While the program provides recognition and technical assistance rather than direct financial subsidy, it raises the visibility of displacement risk and connects legacy businesses to city resources. The program is consistent with the Race and Social Justice Initiative’s emphasis on supporting women- and minority-owned businesses.

See also: Business Community Ownership Fund, Business Improvement Area

Learn more: OED Bottom Line: Legacy Business Program Launch | The Urbanist: What Could Rapidly Growing Seattle Do to Reduce Small Business Displacement?


MFTE (Multifamily Tax Exemption)#

A city program that gives property tax breaks to developers who include affordable units in new apartment buildings. The tax exemption lasts 12 years.

Why it matters: MFTE is one of Seattle’s main tools for getting affordable units built in market-rate projects. When MFTE buildings’ exemptions expire, those affordable units can go to market rate – creating a slow-motion affordability cliff.

See also: MHA, Affordable Housing

Learn more: Seattle Office of Housing: MFTE Program | Seattle Office of Housing: MFTE Program 7


Move Seattle Levy#

A 9-year, $930 million property tax levy (2015-2024) funding transportation projects including bus speed improvements, bike lanes, bridge maintenance, and sidewalk repairs. Succeeded by a new levy proposal.

Why it matters: Transportation levies are how Seattle funds most of its street and transit improvements. Understanding levy cycles helps you know when to advocate for specific projects and how they’re funded.

Learn more: Seattle SDOT: 2015 Levy to Move Seattle | Seattle SDOT: 2024 Transportation Levy


REET (Real Estate Excise Tax)#

A tax on property sales that funds affordable housing, parks, and infrastructure. Washington recently gave cities more flexibility to use REET funds for affordable housing.

Why it matters: REET is a significant funding source for affordable housing in Seattle. Changes to how REET revenue can be used directly affect the city’s ability to build and preserve affordable units.

Learn more: MRSC: Real Estate Excise Taxes | WA Dept. of Revenue: REET


RSJI (Race and Social Justice Initiative)#

Seattle’s citywide initiative to end racial disparities and achieve racial equity in city government operations. Established in 2004 under Mayor Greg Nickels — the first municipal government initiative of its kind in the United States — RSJI existed only by executive order until April 2023, when the City Council permanently codified it into law (Council Bill 120525). RSJI is a division of the Seattle Office for Civil Rights.

Why it matters: RSJI is the institutional framework through which Seattle applies racial equity analysis to policy, budgets, and programs. Its core tools — Racial Equity Toolkits (RETs) and departmental Change Teams — shape decisions across every city agency. For urbanists, RSJI is the reason equity considerations appear in transportation plans, zoning decisions, and infrastructure investments. Understanding RSJI helps explain why the city conducts displacement risk analyses, funds the Equitable Development Initiative, and requires departments to assess racial impacts before making major decisions.

See also: Equitable Development Initiative, HEAL Act

Learn more: Seattle.gov: Race and Social Justice Initiative | The Urbanist: Seattle EDI Grants


Social Housing#

Publicly or cooperatively owned housing that remains permanently affordable and serves residents across a range of incomes, not just the lowest-income households. Rents are typically set as a percentage of income. Residents have a voice in governance.

Why it matters: Seattle voters approved Initiative 135 in 2023, creating a new Social Housing Developer (public development authority) to build and operate social housing. In 2025, voters approved Proposition 1A to fund it through a tax on high compensation. Social housing represents a new model distinct from traditional affordable housing programs.

See also: Housing Levy, AMI

Learn more: Seattle Social Housing Developer | The Urbanist: Seattle Social Housing Initiative Recipe for Success


Subarea Equity#

A Sound Transit policy requiring that tax revenue collected in each of the agency’s five geographic subareas – North King, South King, East King, Snohomish, and Pierce – be spent on projects and services that benefit that subarea. The policy is legally binding and independently audited.

Why it matters: Subarea equity ensures that communities receive transit investments proportional to their tax contributions, but it also means wealthier subareas like East King County generate more revenue per capita than lower-income areas like South King County. This creates a tension between equity of investment and equity of need – the areas with the most transit-dependent riders are not necessarily the areas generating the most tax revenue. Subarea equity has shaped every major Sound Transit decision, from project lists in ballot measures to the 2021 realignment of project timelines.

See also: ST3, Move Seattle Levy

Learn more: Sound Transit: Regional Tax Information | The Urbanist: Sound Transit Board Pledges Stronger Commitment to Regionalism


TIF (Tax Increment Financing)#

A financing tool where future property tax increases in a designated area are used to pay for current infrastructure investments in that area. Washington authorized TIF in 2021 (HB 1189, codified as chapter 39.114 RCW), making it available to cities, counties, and port districts.

Why it matters: TIF was authorized in Washington in 2021 (HB 1189) and is now available to cities, counties, and port districts. As Seattle plans development around new light rail stations, TIF could become a significant tool for funding the infrastructure needed to support transit-oriented communities.

Learn more: MRSC: Tax Increment Financing | MRSC: TIF Now Available in Washington


Transfer of Development Rights (TDR)#

A market-based tool that allows owners of designated landmarks or other protected properties to sell their unused development capacity to developers building in designated receiving zones. Seattle launched its TDR program in 1985, initially for downtown. The city has since expanded TDR to South Lake Union, University District, Uptown, and North Rainier. A portion of bonus floor area in downtown projects must be obtained through Landmark TDR if any are available in the city’s TDR Bank, which is managed by the Department of Housing.

Why it matters: TDR is the primary financial incentive for landmark preservation in Seattle. It allows owners of low-rise historic buildings in high-value zones to monetize their unused development rights without demolishing the building. For developers, purchasing TDR is one of several options for gaining additional floor area beyond base zoning. The program also includes South Downtown Historic TDR, which supports preservation in the Pioneer Square and International District historic districts.

See also: Incentive Zoning, FAR

Learn more: Seattle DON: Preservation Incentives | MRSC: Historic Preservation


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