Seattle reopens fee-cut plan for some housing projects

Seattle Councilmember Dionne Foster has introduced legislation to temporarily reduce Mandatory Housing Affordability fees for some residential developments, reviving a proposal aimed at stalled construction.

Under the bill, projects already in Seattle’s permitting pipeline could receive an 80% fee reduction for two years. To qualify, developers would need to reach foundation inspection within that window. The measure is intended to help restart roughly 30 projects that are not moving ahead now.

The proposal would bar new non-vested developments from using the lower fees in the Central District, the Chinatown-International District and much of Southeast Seattle. Beginning in 2027, some new projects could qualify for a 60% reduction if at least a quarter of the homes have two or more bedrooms and the development reaches foundation inspection within three years after permits are issued.

The legislation also keeps an 80% reduction for legacy homeowners building on their own property.