Like many American cities with more than half a million residents, Seattle is in a housing crisis. The growth of local tech companies, including Microsoft, Amazon, and Expedia Group, is reported to have increased Seattle’s population of higher-income residents by 16 percent, making the task of finding affordable housing more difficult for the city’s working class.
It was announced on September 26 that Microsoft, King County, and the King County Housing Authority (KCHA) will work together to create affordable housing for more than 3,000 residents. Together, they will provide more than $245 million to purchase five apartment complexes in Kirkland, one in Bellevue, and one in Federal Way. These complexes across the three King County cities were chosen for their proximity to transit hubs and burgeoning real estate markets, which would have likely caused significant rent increases in the targeted buildings if they had not been slated for affordable housing.
“This is a long-term effort to stabilize rents in communities where rents are rapidly rising,” said Dan Watson, deputy executive director of the King County Housing Authority, “and fully expect to continue over the next 10 to 15 years.” Watson also confirmed that after the complexes are purchased, their monthly rents could be as much as $500 below similar developments in their respective neighborhoods.
To accrue the necessary funds for the project, Microsoft provided a loan to the KCHA for $60 million, King County provided an additional $20 million, and the KCHA itself chipped in $140 million in bonds. Jane Broom, the senior director of Microsoft Philanthropies, announced that its involvement in the collaboration is one part of a $500 million strategy initiated by the company earlier this year to respond to the myriad of challenges facing Seattle’s middle class (defined as households earning between $60,000 and $120,000 a year). “We are committed to maintaining and bolstering strong, vibrant communities here in the greater Puget Sound region,” said Broom. “Thriving communities include safe, reliable and affordable housing options for people at all income levels. To do this, we all need to come together to not only build more housing options, but also to preserve what already exists.” The remaining $440 million allocated by Microsoft is planned to eventually go towards the construction of additional affordable housing and homeless services.