Council approves $145 million property-tax levy for November ballot; Jan Drago voices reservations

Following the lead of Mayor Greg Nickels, the Seattle City Council voted unanimously Thursday to put a $145 million, seven-year property-tax levy for affordable housing on the November ballot.

Like Nickels, who proposed the levy in April, council members said the need for more affordable housing outweighed concerns about adding to the taxpayers' burden during a recession.

"Our voters have been very generous," said Council President Richard Conlin. "I think they'll say it's a very positive thing to do."

The levy would cost $17 per $100,000 of assessed property value. The council estimates the owner of an average Seattle home — with an assessed value of $460,000 next year — would pay about $79 a year for the housing levy. That's up from $49 a year in the $86 million, 2002 levy that expires this year.

Nickels and the council were emboldened by a survey of 800 Seattle residents showing that a majority supported an even larger levy proposal of $167 million. They were also bolstered by the fact that Seattle voters have rejected only one tax increase in the last 10 years — a proposal to tax their beloved lattes to pay for day care.

Jan Drago was the only council member to voice reservations about the $145 million levy. Drago, who's running for mayor against Nickels, suggested a $120 million levy. But she couldn't get a council member to second her motion.

"I want a levy that's right-sized and will pass," Drago said.

Several business groups, including the Greater Seattle Chamber of Commerce, had urged Nickels to renew the levy but to hold it to $86 million. Drago said some groups that had contributed to past housing-levy campaigns might stay on the sidelines for this one because of its cost.

Eighteen people — mostly advocates, housing providers or beneficiaries of the last levy — testified in support of the $145 million plan. Only retiree Paul W. Locke opposed the levy. "For every one or two people helped I figure a thousand of us are pinched and have to make do with less," Locke said.

The council's proposal would allot the tax money to five areas. Most of the money, $104 million, would go to construct or renovate apartment buildings, creating or preserving 1,670 units. Another $9.1 million would go to loans to assist first-time homebuyers in purchasing 180 homes.

The remainder would go to administration, subsidies to operate about 220 apartments for the most needy, rent assistance for households at risk of homelessness, or to a fund for buying land or buildings that would be developed into affordable housing. A total of $13.2 million would be spent administering the programs.

The council made several changes to Nickels' proposal to assure voters that the lion's share of money would go to people with very low incomes.

The council specified that 60 percent of the $104 million in apartment-production funds would be reserved for people earning just 30 percent of the Seattle-area median income ($17,700 for a single person.) The mayor had recommended 55 percent be dedicated to that income group.

The council also voted that no more than 10 percent of that $104 million could be spent on people making up to 80 percent of the median income ($44,800 for a single person).

Bob Young: 206-464-2174 or byoung@seattletimes.com