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BETTESWORTHConstruction
affordable housing

Seattle Social Housing Developer Advances First Construction Project

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Seattle Social Housing Developer (SSHD) has unanimously approved the Central District House, its first ground-up construction project. Planned for 2402 E Yesler Way, the building is expected to provide about 20 mixed-income homes, with at least half designed as two- or three-bedroom apartments. Construction is planned for 2027 and tenant opening is expected in 2028, subject to design, permitting, financing and bond issuance.

The project is an early test of whether Seattle’s voter-created public development authority can deliver permanently affordable, publicly owned housing while serving households across a broad range of incomes.

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What Seattle’s first social-housing construction project is

The Central District House will occupy a 7,800-square-foot site at 2402 E Yesler Way in Seattle’s Central District. SSHD’s board approved the project in October 2026. The current concept calls for approximately 20 homes, and SSHD expects at least half of them to have two or three bedrooms.

The property is associated with former Washington House Speaker Frank Chopp and is being sold by his widow, Nancy Long. The reported land sale price is $1.2 million. SSHD’s early total development estimate is about $15 million, covering land, design, construction and soft costs.

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Interim CEO Tiffani McCoy told The Urbanist that the site has personal significance because Chopp was an early political supporter of Seattle’s social-housing campaign. The project’s location also gives SSHD a chance to test its community-return goals in a neighborhood with deep historical ties for many Black residents and other Central District families.

When construction will start and the building will open

Current schedule

  • Board approval: October 2026.
  • Construction target: 2027.
  • Expected completion or tenant opening: 2028.

These are planning targets, not guaranteed dates. SSHD still must advance design, secure permits, complete financing and issue bonds. The agency has said a more accurate project budget will follow additional design and development work.

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How much the project is expected to cost

SSHD currently estimates total development at approximately $15 million. That figure includes the reported $1.2 million land purchase as well as design, construction and other soft costs. Dividing the estimate by 20 planned homes produces a rough arithmetic equivalent of $750,000 per home, but that is not a final per-unit budget: the home count and total cost can change as the design, approvals and financing are completed.

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Site area 7,800 square feet Central District parcel at 2402 E Yesler Way
Reported land price $1.2 million Reported by The Urbanist in 2026
Total development estimate About $15 million SSHD’s 2026 estimate, including land, design, construction and soft costs
Planned homes About 20 Current concept; at least half expected to be two- or three-bedroom units

Who will be eligible for the apartments

Mixed-income lottery

SSHD plans to invite applicants across income bands and select residents through a lottery. The agency says its social-housing model serves households up to 120% or more of area median income, rather than limiting the building to one narrow income bracket. Exact income limits, rents, application dates and bedroom-by-bedroom eligibility rules have not yet been published for Central District House.

Community preference and affirmative marketing

Seattle’s Community Preference policy and an affirmative-marketing plan are intended to help people with current or historical Central District roots return to the neighborhood. Those policies are separate from the income lottery: applicants must still meet the project’s eventual eligibility requirements, while the preference and outreach approach is designed to reach residents connected to the community.

What happens if a resident’s income increases

SSHD says residents are not evicted solely because their income rises. That feature distinguishes the agency’s model from programs that require tenants to leave when they exceed an income threshold, although the project’s final lease and compliance rules will determine how the policy is administered.

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What Passive House and accessibility goals mean here

Passive House target

SSHD says the building will target Passive House standards. In practice, that target generally means designing for very low energy demand through a highly insulated and airtight enclosure, carefully controlled windows and doors, reduced thermal bridging, and balanced mechanical ventilation with heat recovery. It is a performance objective, not evidence that the building has already received certification. Final energy targets, equipment selections and certification status have not been announced.

Kelsey Essential Certification

The development team is also exploring Kelsey Essential Certification, an accessibility standard. SSHD has not released a final checklist of features or confirmed certification. Residents should therefore treat accessibility certification as a project goal under evaluation rather than a completed approval.

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How the project fits SSHD’s existing work

SSHD effort Homes or scope Delivery status Route
Elara at the Market 150 units Acquired and operated by SSHD Existing-building acquisition
Central District House About 20 planned homes Approved in October 2026; construction targeted for 2027 New ground-up construction

Central District House is therefore a smaller project by unit count than Elara at the Market, but it is the agency’s first attempt to control the full new-construction process, from land and design through permitting, financing and delivery.

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How Seattle is funding social housing

Seattle voters created SSHD through Initiative 135, which received 57% approval in February 2023. In February 2026, the City Council unanimously approved an interlocal agreement transferring approximately $115 million to SSHD for permanently affordable, publicly owned housing. The funding is supported by a 5% employer tax on compensation above $1 million.

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That public capital is intended to be combined with debt, including lower-cost bond financing. The Central District House is an early demonstration of whether that structure can make mixed-income, publicly owned housing financially workable. SSHD’s model also avoids displacing residents solely when their earnings increase, allowing affordability to remain tied to the public asset rather than to a single income snapshot.

What else SSHD plans—and what remains uncertain

The Urbanist has reported a board-approved pipeline of six new-construction projects and four acquisitions through the end of 2027, contingent on bond issuance. SSHD’s own announcement says it expects another acquisition before the end of 2026 and aims to begin construction on two land sites in 2027.

  • The pipeline consists of plans, not completed developments.
  • Bond issuance, permitting and design can change both timing and scope.
  • The approximately $15 million Central District House estimate is preliminary.
  • Final rents, unit mix, income bands and application dates have not been released.

Mayor Katie B. Wilson described social housing as part of Seattle’s response to high housing costs, saying the city needs “more housing of all types and all sizes.” Whether Central District House can meet its 2028 opening target will provide the first major construction test of that public-development strategy.

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