flexiblefullpage
Currently Reading

Public Issues, Private Funds

Advertisement
billboard

Public Issues, Private Funds

The infusion of private capital from outside industries into affordable housing initiatives will change communities, and may change the framework of how shelter is delivered there


By Kate Carsella, Associate Editor March 28, 2019
Microsoft recently announced a $500 million affordable housing initiative for the Seattle area, yet another example of a private, non-housing entity getting involved in the industry to address issues of affordability and homelessness.
Inside Seattle's Public Market | Photo: Unsplash/Taylor Rooney
This article first appeared in the April 2019 issue of Pro Builder.

Microsoft recently announced a $500 million affordable housing initiative for the Seattle area, yet another example of a private, non-housing entity getting involved in the industry to address issues of affordability and homelessness.

“Ultimately, a healthy business needs to be part of a healthy community. A healthy community must have housing within the economic reach of every part of the community,” wrote Microsoft president Brad Smith and CFO Amy Hood in a blog post.

Microsoft’s funding will be separated into three “pillars.” The first two come in the form of subsidies: $225 million in below-market-rate loans to subsidize the construction and continuity of middle-income housing in six local counties; and $250 million in similar loans to support low-income housing in King County. The loans are available to local suburban mayors pledging zoning changes, the creation of new tax incentives for construction, for providing public land near transit stops, and more. The third pillar translates to $25 million in philanthropic grants to address Seattle’s homelessness crisis.

It’s the latest in a recent string of similar initiatives. Healthcare consortium Kaiser Permanente is investing up to $200 million for affordable housing efforts, and the Partnership for the Bay’s Future looks to raise and funnel $500 million in private funds to create and maintain 175,000 affordable units.

While these organizations hope to help create greater equity in local access to shelter and affordable homes, the shift to such models will likely challenge developers and builders, as well as the public review and approvals process, in affected markets.

 

  • This story originally appeared in the April 2019 issue of Professional Builder magazine. See the print version of this article here.
Advertisement
leaderboard2

Related Stories

Education + Training

Trade Programs Report Elevated Enrollment

Overall enrollment in higher education is slowing, but construction trade programs are booming 

Design

Home Design That Differentiates

Shifting consumer attitudes and lifestyle needs demand new thinking in home builders' approach to designing homes

Home Design

Summer 2023 Design Trends Reveal Wellness Features Are Here to Stay

Health and wellness features and outdoor living amenities are among the most popular home design considerations in summer 2023

Advertisement
boombox2

Top Articles

Advertisement
boombox1
Advertisement
native1
halfpage2

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

Advertisement
native2
Advertisement
halfpage1

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.