In this photo from January 2017, a Federal Way police officer walks through the remains of a homeless encampment in Federal Way. File photo

In this photo from January 2017, a Federal Way police officer walks through the remains of a homeless encampment in Federal Way. File photo

Microsoft will invest $500 million toward regional housing

Mayors of nine cities — including Auburn, Kent, Federal Way, Bellevue, Kirkland, Redmond, Issaquah, Renton and Sammamish — have pledged to help

Microsoft announced Wednesday it would put a $500 million toward creating and preserving affordable housing in the Puget Sound region in an attempt to curb the housing crisis.

Of the $500 million that Microsoft is providing, about $225 million will subsidize middle income housing in Bellevue, Kirkland, Redmond, Issaquah, Renton and Sammamish. Another $250 million will go toward low-income housing across King County.

The remaining $25 million will be given to philanthropic grants to address homelessness in the greater Seattle area. The first $10 million of this will include $5 million for the newly created Home Base program by the Mariners. The remaining $5 million will go to a new joint agency on homelessness being formed by Seattle and King County. Microsoft will also look to provide short-term loans for developers who want to build affordable housing.

“The Puget Sound area’s growth has also created new challenges. In recent years, our region hasn’t built enough housing for the people who live here. Since 2011, jobs in the region have grown 21 percent, while growth in housing construction has lagged at 13 percent,” according to a statement from Microsoft President Brad Smith and CFO Amy Hood. “This gap in available housing has caused housing prices to surge 96 percent in the past eight years, making the Greater Seattle area the sixth most expensive region in the United States.”

Median area income hasn’t kept pace with rising housing costs, a problem that has forced low- and middle-income workers to live farther away from their jobs. This has added to traffic congestion while delivering a blow to teachers, nurses, first responders and those in the services industries. Rising rents have also added to the homelessness crisis. For every $100 increase in rent, the homelessness rate spikes by 15 percent. To top this off, a study conducted by Microsoft and Zillow found this gap between jobs and housing is even worse in Seattle’s suburbs.

Mayors of nine cities — including Bellevue, Kirkland, Redmond, Issaquah, Renton, Sammamish, Auburn, Kent and Federal Way — have pledged to help by changing zoning to increase housing in some areas, providing public land near transit stations, streamlining permitting processes and fees, and creating tax incentives for developers to build more housing.

According to the announcement from Microsoft, the state government should step up and encourage private sector development, including setting aside $200 million for the Housing Trust Fund to expand housing for low-income residents. Other areas where Microsoft has encouraged the Legislature to act includes supporting condominium liability reform, extending the multi-family tax exemption program, and creating incentives for local cities to establish more efficient land use policies.

King County executive Dow Constantine issued a press release praising Microsoft’s announcement.

“With Microsoft stepping up in this way, public sector partners must do the same,” Constantine said. “Government acting alone cannot solve our housing and affordability challenges.”

The announcement comes a month after a report by a task force published a report recommending King County set a goal of preserving or building 44,000 affordable housing units by 2024. The report noted the county needed 156,000 more units now, and another 88,000 units by 2040 to meet its affordable housing needs.

Volunteers in Issaquah finish a tiny house last December before donating it to the Low Income Housing Institute’s newest village for homeless residents in Olympia. The 8-foot by 12-foot house featured insulation, electricity, heat, windows, and a lockable door. Evan Pappas/Staff photo

Volunteers in Issaquah finish a tiny house last December before donating it to the Low Income Housing Institute’s newest village for homeless residents in Olympia. The 8-foot by 12-foot house featured insulation, electricity, heat, windows, and a lockable door. Evan Pappas/Staff photo

More in News

New flyover ramp opens to traffic on Thursday, Feb. 21

Critical link to 40-mile express toll lanes corridor will improve traffic operations by eliminating weaving

Despite Supreme Court Ruling, activists fight youth incarceration in King County

No New Youth Jail Coalition members send Valentines to King County officials asking them to reconsider funding priorities

Southbound traffic backs up as northbound drivers cruise on with ease on the Highway 99 viaduct on Tuesday, Jan. 8, 2019. (Andy Bronson / The Herald)
WSDOT hopes ‘Viadoom’ habits continue

The department credits commuters with adapting to the closure and mitigating impacts.

President’s emergency declaration sparks immediate legal backlash

Attorney General Bob Ferguson said his team will sue the White House if federal funds originally intended for Washington state are interrupted.

One fatality in head-on collision

The collision happened Friday on Southwest Grady Way

Photo from Sunset area plan’s website: http://sunsetrenton.com/multi-service-center/
Center adds to Sunset area supports

The multi-service and career center will give local families a closer place to look for assistance

Renton school has regular late start Friday

District also asks staff to arrive no later than 30-minutes before school starts

Bill targets sexual health curriculum in Washington schools

Senate Bill 5395 is co-sponsored by 17 Democratic representatives and introduced by Sen. Claire Wilson, D-Federal Way.

Most Read