In an effort to spur the construction of new affordable housing, Ballmer Group has launched the Washington Family Housing Fund. The unique initiative aims to help developers build at least 10,000 affordable homes for families across the state.
“In the coming years, we hope the Washington Family Housing Fund can help to unlock capital, speed up the pace of development, and make a meaningful dent in Washington’s housing shortage,” says Terri Ludwig, CEO of Ballmer Group, a leading philanthropy. “It’s one of many solutions needed to realize a future where every family in Washington has access to a safe, stable, and affordable place to call home.”
The move comes at a time when 1 in 4 renters in the state are spending at least half of their monthly income on housing, leaving families one emergency or unexpected expense away from facing eviction. In addition, the state estimates that it will need to build more than 9,000 homes annually to meet the needs of very low-income renters over the next 20 years, reports the organization, which is collaborating with the Washington State Housing Finance Commission (WSHFC) and HR&A Advisors on the multiyear initiative.
Ballmer Group is a leading philanthropic organization focused on advancing economic mobility for children and families across the United States. Reflecting that mission, the fund is designed to address the shortage the affordable housing by supporting the development of new homes for families.
Here are a few key points about the new fund:
- It provides up to $150,000 for each new affordable unit created, delivered as a forgivable loan from WSHFC;
- Projects must be a new-construction rental development in the state;
- Homes must have at least two bedrooms;
- Homes must be affordable to families earning about 50% of the area median income and offer a significant discount relative to comparable market-rate housing in the area;
- Subsidized units must stay affordable for at least 60 years; and
- The fund is supporting properties that are not benefiting from the low-income housing tax credit program or other limited competitive public resources to ensure the fund adds new housing options rather than competing with existing programs.
“While there are other funds that are doing the important work of filling gaps in public subsidy, this is an entirely new source of capital that provides an alternative pathway for developers,” says John Griffith, executive director for national housing at Ballmer.
The family focus is also an important differentiator. “We’re asking developers to think about how they’re going to serve families with children as part of this program,” Griffith says.
Officials have approved their first 10 forgivable loans, with one—a deal in Frederickson in Pierce County with 90 subsidized units—having closed in April. Together, these projects have more than 1,100 affordable units, according to Griffith.
HR&A Advisors is sourcing and underwriting individual projects, and WSHFC is originating the loans and overseeing compliance and asset management throughout the life of the property.
“We’re excited to partner with Ballmer Group on a new approach that builds rental housing across the state without using overstressed public resources—housing that is family-sized and affordable to people earning half of the local median income,” says WSHFC executive director Steve Walker.
Applications are reviewed on a rolling basis.
“We are trying to establish the most flexible capital possible to build units that wouldn’t otherwise be built,” adds Griffith. “We’re striving to meet developers where they are. We have our requirements. It has to be a certain size, reach a certain affordability level, and deliver significant savings to the families who are going to be living there. But importantly, we’re starting a conversation with developers about what they’re trying to build and how they can best serve communities.”
For more information, visit https://ballmergroup.org/wafam/.