Seattle MHA Accelerator: The Proposed 80% MHA Fee Cut, Who Qualifies and When the Council Votes

Seattle is weighing a big, temporary cut to one of the largest fees on new apartment buildings. A proposal from Councilmember Dionne Foster, called the MHA Accelerator, would give an 80% reduction in the Mandatory Housing Affordability (MHA) in-lieu fee for currently vested projects, according to the City Council's announcement. New projects could get 60% off.

The idea is simple: get apartment projects in Seattle, Washington that already have permits, or are close, into the ground.

How the Seattle MHA fee cut would work

MHA is the fee Seattle charges market-rate housing in place of building affordable units on site. Under the proposal:

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• Projects already vested would get an 80% cut, but they'd have to pass their first foundation inspection within two years.
• New projects that vest by the end of 2027 would get a 60% cut, with three years to reach that first foundation inspection. The bill sets a deadline of Jan 1, 2028, for non-vested projects to submit a complete building permit application.
• To get the 60% cut, at least 25% of the units have to be family-sized, with two or more bedrooms.

Projects that miss the construction milestones would owe the rest of the fee back. New projects in areas the city flags for displacement risk generally wouldn't qualify, with an exception for longtime local owners.

Why it's on the table

The numbers behind it are stark. The council's announcement says applications for new housing projects have fallen by nearly 95 percent since 2020. At a September hearing, an economist told the committee Seattle has seen a 26% decline in multifamily permitting, and that the city's share of statewide multifamily permits fell from 28% in 2024 to 16% now, The Urbanist reported.

Supporters say there are more than 30 stalled projects with vested permits ready to deliver more than 6,000 homes. Builders, architects and construction union members packed the hearing to back it. "We can't afford to have housing projects ready to go that simply aren't getting built," Foster said in the announcement.

Some affordable housing advocates raised concerns about trimming a revenue source that pays for below-market housing, The Urbanist reported.

When the Seattle council votes

Committee work paused for the city budget. The proposal comes back for discussion in December, and it could get a vote as soon as early January, according to The Urbanist.

Seattle building permits now

For a sense of current volume, Seattle issued 475 building permits in the 30 days through October 30, 2026, with $229.1 million in reported value, according to our Seattle building permits page.

Common questions about the Seattle MHA Accelerator

What is the Seattle MHA Accelerator?

It is a proposed ordinance that would temporarily cut Seattle's Mandatory Housing Affordability in-lieu fee by 80% for vested projects and 60% for new projects that meet conditions, to restart stalled housing projects.

Who qualifies for the 60% MHA fee reduction?

New projects that vest by the end of 2027, submit a complete building permit application by Jan 1, 2028, and make at least 25% of units family-sized with two or more bedrooms.

When will the Seattle City Council vote on the MHA fee cut?

The proposal returns to committee in December, and a council vote could come as soon as early January.

Sources

• Councilmember Foster proposes Mandatory Housing Affordability accelerator to spur housing construction, Seattle City Council
• Housing advocates, workers pack City Hall to support temporary fee break, The Urbanist
• Seattle building permits, Morningline Leads

More on Seattle construction, including Habitat's 31 affordable condos on MLK Way, and the Morningline Research blog. Want new Seattle projects in your trade every weekday? Get a free sample report.