Seattle Court Ruling Allows Landlord to Sue City Over Rental Laws That Killed Affordable Housing Project
A Washington state appeals court has allowed a lawsuit by GRE Downtowner LLC to proceed against the City of Seattle, challenging whether local rental regulations constituted an unconstitutional taking of private property. The case centers on the Addison on Fourth, a 254-unit affordable housing complex in Seattle’s Chinatown-International District, which entered federal receivership in January 2026 after suffering severe financial losses. The ruling permits the developer to claim that a series of ordinances, including restrictions on tenant screening and requirements to allow additional occupants, effectively destroyed the viability of the project, which was funded through federal Low-Income Housing Tax Credits. While the city has not yet decided whether to appeal, legal experts suggest the decision could influence similar challenges in other major cities with strict tenant protections.