Seattle is launching a pilot program to convert aging rental apartment buildings into permanently affordable homes that low-income residents can buy, a novel attempt to address homeownership barriers in a city where the median home price hit $825,000 last year.

The Homeownership as Preservation program, run by the city's Office of Housing, will acquire older rental properties and sell individual units to buyers earning below the area median income. The units will remain permanently affordable through deed restrictions, preventing future owners from selling at market rate.

The approach tries to solve two problems simultaneously: preserving naturally affordable rental buildings that often get demolished or converted to luxury housing, while creating wealth-building opportunities for households largely shut out of Seattle's housing market. White homeownership rates in the city are 60 percent compared to 30 percent for Black households.

But the program faces a significant complication. Because it will use federal funds, it triggers strict relocation requirements for any current tenants who can't or don't want to buy their units. The city is now seeking experienced relocation consultants to manage that process, requiring expertise in federal relocation law and individualized tenant services.

Consultants will need to find comparable replacement housing for displaced tenants, administer legally required notices, and maintain detailed documentation that can withstand federal audits. The requirements reflect lessons from past controversies: Seattle settled a lawsuit in 2018 over inadequate relocation assistance during public housing redevelopment.

Seattle has lost roughly 20,000 affordable rental units since 2010 as older buildings age out of restrictions or become redevelopment targets. The city added 140,000 residents in that same period while struggling to keep pace with housing demand.

The pilot program emerged from a 2019 strategic planning process that identified limited land and high construction costs as barriers to traditional affordable housing development. Converting existing buildings offers a faster path than new construction.

The Office of Housing expects to launch the first conversions this year. Questions about the program can be directed to Joy Hunt, Acting Manager for Affordable Homeownership, at joy.hunt2@seattle.gov.