Nickels pushes for bigger affordable-housing levy

Not only does Mayor Greg Nickels want voters to renew Seattle's affordable-housing levy in the midst of a recession, he wants them to pay more for the levy.

The current seven-year $86 million property-tax levy for housing expires this year. Nickels proposed on Wednesday a $145 million, seven-year renewal of the levy.

The City Council has final say on what will go to voters in November.

Despite the sagging economy, Nickels said he expects voters to support affordable housing again. He pointed to their willingness to tax themselves for housing in 2002 when they approved the levy during a regional economic slump.

"I think people recognize that in hard times there's even more need. That's what we saw in 2002 in what was actually a worse economy locally," Nickels said.

But advocates may face a tougher sell than during the four previous housing-levy elections in 1981, 1986, 1995 and 2002. The Downtown Seattle Association and the Greater Seattle Chamber of Commerce sent Nickels a letter last week urging that the levy be renewed at $86 million, to better reflect the current financial squeeze.

Nickels' proposal would cost Seattle taxpayers about $17 per $100,000 of assessed property value. The mayor estimates the average Seattle home — with an assessed value of $470,000 next year — would pay about $79 a year for the housing levy, up from $49 a year in the 2002 levy.

Nickels says the levy money would help build or preserve more than 2,000 apartments, allow first-time buyers to purchase 180 homes and provide rent assistance to 550 households a year.

The mayor would allot the tax money to five areas:

• $104 million to construct or rehab apartment buildings, creating or preserving 1,670 rental units.

• $9.1 million in loans to assist first-time homebuyers in purchasing 180 homes.

• $7.9 million to help operate and maintain about 220 apartments for the most needy, such as the disabled and elderly.

• $6.5 million for a fund to buy land or buildings that would be developed into affordable housing.

• $4.2 million in rent assistance for households at risk of homelessness because of job loss, illness, divorce or death.

The remaining $14 million would go to administer the programs.

The 2002 levy has produced or preserved 2,011 apartments; helped homebuyers purchase 211 houses or condos; and provided rent assistance to 4,144 households, according to the city's Office of Housing.

Nickels noted that none of the homebuyers aided by the city has faced foreclosure.

The City Council's housing committee chairman predicted Nickels' proposal would win council approval, despite efforts by some members to trim it.

"I think several will try. I hope it's not successful. This is a time the neediest need help," said Councilmember Richard McIver.

Staff reporter Emily Heffter contributed to this report. Bob Young: 206-464-2174 or byoung@seattletimes.com