U.S. Senator Maria Cantwell recently celebrated the grand opening of Housing Hilltop, a new 231-unit affordable housing complex in Tacoma. The Tacoma Housing Authority built the project using $50.7 million from the federal Low-Income Housing Tax Credit (LIHTC) program, which helped reduce construction costs.
“I’m trying to get a lot more money for affordable housing in Washington D.C.,” Sen. Cantwell said at the event. “We’re going to keep fighting until we get it done.”
Cantwell also stressed the need for more affordable housing, noting that a 10% increase in housing supply can lower local rents by 1%.
“If you don’t add supply, everyone’s rent is going up,” Cantwell explained.
According to officials, Housing Hilltop is the Tacoma Housing Authority’s largest project since New Salishan. The development includes 231 affordable apartments and 13,000 square feet of commercial space. This space will feature a 10,000 square-foot performing arts and community gathering area. The project also has policies that let households displaced from the Hilltop area return to their neighborhood.
The development consists of two buildings: Housing Hilltop South which is currently leasing 94 affordable housing units, and Housing Hilltop North which is expected to begin leasing 137 affordable housing units in December 2024. Both buildings also feature a combined 13,000 square feet of commercial retail space for local businesses. The planning process for Housing Hilltop began in 2016 through an innovative community design effort called #DesignTheHill, which engaged Hilltop community members to help identify important features and design aspects for both buildings.
The Tacoma Housing Authority is partnering with the Tacoma Urban Performing Arts Center (TUPAC) to lease the performing arts space. They will also prioritize BIPOC businesses for the other retail areas. This initiative aims to boost community engagement and support local businesses.
“We’re so excited to celebrate the opening of these two magnificent buildings with our friends and colleagues in the Hilltop neighborhood,” said Tacoma Housing Authority Deputy Executive Director Aley Thompson. “So many community members and partners contributed their thoughts and recommendations throughout the planning process of Housing Hilltop in the past several years, and we can’t wait to share the end result of the community design effort.”
The LIHTC program is a federal initiative that helps build or renovate affordable rental housing. It combines federal funds with private investment to create housing that might not otherwise be built. Since 1986, the program has financed over 3.8 million affordable homes nationwide, including more than 100,000 in Washington state. LIHTC projects have also created nearly 170,000 jobs and generated over $19 billion in wages.
Last month, the U.S. Senate voted on a tax package that included Cantwell’s proposal to expand the LIHTC. The package, which needed 60 votes, failed with a vote of 48-44. Cantwell’s proposal aimed to lower the bond funding requirement from 50% to 30%, which could allow Washington state to build nearly twice as many housing units in 2024. Her plan also sought to restore a 12.5% tax incentive increase, which could add 600-650 more affordable housing units over the next three years.
Before the vote, Cantwell spoke on the Senate floor to support the LIHTC expansion. She cited a Moody’s Analytics report showing that LIHTC projects in the Seattle area save renters an average of $898 per month compared to market-rate rents.
The U.S. is facing a severe affordable housing shortage, with a need for 3.89 million more rental homes. In Washington state, there are only 28 affordable units available for every 100 extremely low-income renters. This shortage has driven up rental prices, forcing many renters to spend over 30% of their income on housing.
The housing crisis disproportionately affects BIPOC households, who are more likely to rent and face economic inequalities. The LIHTC program is vital for these communities, especially in rural areas where it funds much of the new housing.
Affordable housing is also important for the economy. High housing costs are a major factor in keeping inflation high. Expanding the supply of affordable housing can lower rents and reduce inflation, benefiting both renters and the economy as a whole. LIHTC projects also create jobs, generate wages, and contribute to federal, state, and local taxes.
At the event, Cantwell thanked local leaders and community members for their efforts in making the project possible. She emphasized the importance of building more affordable housing across the country.
“If you don’t build affordable housing, people can’t live there, and you can’t take advantage of the jobs and opportunities,” said Cantwell.
