G
oodman Real Estate has filed a 41-page lawsuit against the City of Seattle, alleging that its tenant legislation has crippled the company's ability to operate an affordable apartment building. The complaint claims that the city's ordinances have forced Goodman to accept tenants with criminal backgrounds and additional roommates, ultimately destroying its chances of sustainably running the historic Addison on Fourth building.

    The building, located in the Chinatown-International District, was renovated by Goodman at a cost of $26.5 million after it purchased the property for $12.5 million in 2012. By 2015, the building had stabilized with fully leased studio and one-bedroom apartments for low-income households. However, subsequent city ordinances, including a Fair Chance Housing Ordinance and a "roommate ordinance," have allegedly hurt Goodman's business model.

    The company is seeking an unspecified amount of financial damages and a jury trial. A court date has not been set. Goodman claims that the building now "hemorrhages" money, with a loss of $2.7 million last year, and occupancy has fallen to 60 percent. The city has hired an outside law firm to defend itself in the case, and plans to defend its tenant legislation.

    Goodman Real Estate, founded in 1990, owns over 100 apartment complexes across the US, with a portfolio valued at $3.2 billion. The company's CEO, George Petrie, stated that the city's changing rules have made it difficult for Goodman to provide affordable housing, and that the situation is "heartbreaking and devastating" for all stakeholders.