FAQ

Where does the money come from to create and maintain social housing?

Social housing is designed to be financially sustainable. For construction, it often relies on traditional short term funding sources such as construction loans and/or government bonds. Ongoing operating costs and the long term “mortgage” is paid by the rents. Social housing typically uses a "cross-subsidization" model, where the full spectrum of rents, higher rents from moderate-income tenants and lower rents for lower-income rents, combine to pay all operating expenses, debt payment and reserves for future repairs and replacements. Additionally, contributions from government or philanthropy can be incorporated to improve affordability.

Who will live in the housing developed by SSHD?

Teachers, day care workers and service workers are just some of Seattle’s residents struggling with rising housing costs. We envision our housing communities will be home to low- and moderate income families, seniors living on fixed incomes, individuals with disabilities, and people working in professions that do not earn enough to afford market rents, as well higher-income households who value living in an income diverse community.

How is SSHD governed?

SSHD is governed by a board made up of 13 appointees. Six different organizations provided appointments to the Board: Seattle Renters Commission, Martin Luther King, Jr. County Labor Council, El Centro De La Raza, Green New Deal Oversight Board, Seattle City Council and the Mayor. The majority of the board are renters with lived experience of housing insecurity. There are several board members with real estate development experience or nonprofit expertise.

What has SSHD been up to since its inception?

Since adoption of its charter, SSHD has:

Drafted and adopted organizational bylaws for clear governance.
Established focused subject matter subcommittees to help build the foundation for the organization.
Secured a website and email domain for effective communication with the public.
Created internal systems for transparently managing financial transactions.
Held monthly board and working committees meetings .
Held its first board retreat to set the vision and values of the organization.
Engaged in a successful CEO recruitment process.
Executed contracts with the City and Washington Commerce, that secured stable funding into 2025.
Hired and onboarded our first CEO

What has SSHD been up to since its inception?

Roberto Jiménez is the new CEO of SSHD. With a background rooted 2o years in affordable housing and community development. Roberto has a wealth of experience from his leadership roles at Farmworker Housing Development Corporation and Mutual Housing California. He has a strong track record of improving housing conditions and advocating for housing policy. Roberto's appointment signals SSHD's commitment to addressing housing affordability with innovative and inclusive solutions.

What is next for SSHD?

Roberto Jiménez joined our team in August of 2024. Together with Roberto, SSHD plans to build out a staffing model that will support the acquisition of properties.

Seattle Social Housing Developer (SSHD) is a public development authority focused on addressing the city’s housing needs through innovative social housing solutions. We intend to build and acquire affordable, high-quality housing that is permanently affordable, sustainable and inclusive for all Seattle residents. Our model bridges a critical housing gap for those who cannot afford Seattle’s high rents but do not qualify for traditional subsidies. By doing so, we ensure that more community members have access to affordable quality housing, helping to prevent houselessness and fostering thriving, sustainable communities where people choose to live long term and build strong neighbor relationships.

What is Social Housing?

Social housing exists in various forms throughout the world. Our Seattle model is a housing model that aims to provide affordable, high-quality, and secure rental housing options for people of all income levels, particularly those who struggle to afford market-rate housing. The Seattle model will be publicly owned in perpetuity, with long-term affordability that provides access to safe and stable living environments, promoting social equity and preventing displacement. Housing is typically managed in part by a governing board with significant involvement and agency by the renters themselves.

What is Seattle Social Housing Developer (SSHD) and how did it come to be?

SSHD is a public development authority (PDA) established to address Seattle’s housing needs through innovative social housing solutions. Our goal is to complement existing housing efforts by creating affordable, high-quality, and sustainable housing for a wider range of residents than other affordable housing is permitted to serve. The Seattle City Council adopted the charter for SSHD as a result of Initiative 135 in 2023, reflecting the community's commitment to expanding affordable housing options.

How is Social Housing different from private market rate housing?

Market rate housing is financed through private capital, often by large real estate funds, banks or Wall St.-based financial institutions. The debt comes with higher interest rates. Social housing can use bonds for debt. Bonds can allow for lower interest rates.

The investor equity in market rate housing requires high returns which are built into the rents. Operators are expected to keep rents up and expenses down to produce the targeted returns for the investors. Social housing does not have investors earning returns.

Owners/Investors produce their returns by setting the rents to the maximum level the market will bear at the beginning. Each year, to maintain or increase returns, rents are raised to whatever the market will bear. Rent levels are not regulated for affordability. Social housing does not require investor returns. Rents are set to cover and maintain the buildings and communities in a state of fiscal health, building health and community well being for the long term health of the housing.

Market rate housing (and even some affordable housing) is eventually sold to another investor, who then looks to increase the value of their new asset by raising rents. This is the cycle of market housing because it is first and foremost, an investment. Social housing is first and foremost, housing. Social Housing does not participate in this investment cycle, therefore creating ongoing affordability and communities where people can live and grow for as long as they want to without being forced out by sale or rising rents.

How is Social Housing different from other forms of public affordable housing options run by nonprofits?

Social housing is mixed income. Other affordable housing options can only house residents with specific levels of low household income, by design. Like some affordable housing, social housing has affordable rents based on the resident’s income, usually no more than 30% of their monthly income. Therefore mixed-income social housing does not concentrate and segregate lower income residents. It provides affordable rents to a much broader range of incomes that struggle to afford market rents in Seattle by having a broad mix of incomes. Social Housing Seattle’s goal is to utilize fewer resources as compared to what is required when concentrating only very low income rents into one building.

The social housing model involves residents of the buildings in governance of the property and board of directors. Our goal is to provide a more “hands on”, community based, and democratic form of governance and community engagement.

How will Seattle benefit from adding social housing to its current inventory of housing options?

The current inventory of affordable and market housing options does not offer enough options for low- and middle income households. Supply is unable to keep pace with the ever-increasing demand in our city, resulting in rising rents year after year. Despite the efforts of existing housing providers relying on a variety of ever changing federal, state, local and philanthropic funding dollars, the need consistently far exceeds the supply of units. The scale of the ongoing and growing crisis demands an increased and imaginative focus on innovative new solutions.

Seattle will benefit from social housing in several ways:

- Increased Affordability: Social housing provides affordable options for residents who are unable to afford market-rate housing, but don’t qualify for subsidized housing, reducing the housing burden for low- and middle-income families.

- Prevention of Homelessness: By offering stable and affordable housing, social housing helps prevent renters from sliding into homelessness over large rent increases, medical events, temporary job loss, divorce, death of a partner and the other myriad personal setbacks that impact one’s ability to pay their rent payment. One of the goals of social housing is to provide a broader but less resource intensive safety net for low and middle income residents of our city.

- Community Stability: Social housing promotes long-term residency and community involvement, leading to more stable and cohesive neighborhoods.

- Economic Diversity: It supports economic diversity by integrating residents from various income levels, fostering inclusive and vibrant communities.

- Sustainability: Social housing communities often incorporate sustainable practices, contributing to environmental conservation and healthier living environments. SSHD projects will prioritize the ultra-low energy Passive House standard for both new projects and retrofitting existing buildings. Our goal is to reduce energy usage and operating cost to buildings and reduce negative financial impacts of rising energy costs on residents of those buildings.

Shouldn’t we focus all our efforts and resources on those living unhoused on our streets?

Seattleites continue to be made homeless at alarming rates. While addressing homelessness is crucial, focusing solely on those already homeless overlooks the importance of prevention. Supporting those who are struggling to remain housed can prevent them from becoming homeless, reducing the overall strain on emergency services and shelters. A balanced approach ensures both immediate needs are met and future homelessness is prevented, creating a more sustainable solution for the housing crisis. Social housing plays a key role in this strategy by providing stable and broader affordable housing options.