Seattle is facing a housing affordability crisis. As the city grows and development patterns shift, Seattle Public Utilities (SPU) is rethinking how development-related infrastructure is funded — aiming to distribute costs more fairly and equitably across the city.
On April 23, 2025, Mayor Bruce Harrell introduced legislation to support housing and essential development in areas currently lacking the utility infrastructure needed to grow. The legislation was unanimously approved by the full City Council on June 3, 2025.
This new Utility Cost Sharing Program, combined with updated and new System Development Charges (SDCs), is a key part of SPU’s strategy to:
- Reduce inequities in housing development costs
- Expand where housing can be built
- Improve the financial feasibility of development projects across more areas of the city
With the City cost-sharing in water, wastewater, and drainage infrastructure construction, more parcels of land that are currently too costly to develop become feasible.
Key Benefits:
- SPU reimburses a portion of the developer-installed infrastructure costs using SDC capital funds.
- All developers contribute to system infrastructure, so more sites become buildable.
- Infrastructure costs become more equitable across the city.
- Future homeowners benefit from shorter, more maintainable service lines.
What’s Next?
- Public outreach will continue through 2025 and into 2026 as the program is finalized.
- Revised and new Director’s Rules will be available for public comment in October and will include program details and requirements.
- The Infrastructure Cost Sharing Program and new SDCs are scheduled to go into effect on January 1, 2026.
Learn More:
- Parks, Public Utilities & Technology Committee 4/23/2025
- Parks, Public Utilities & Technology Committee 5/14/2025
Questions?
Contact: michelle.lange@seattle.gov