As Promised, Microsoft makes First Investment Towards Affordable Housing

Earlier this year, Microsoft had pledged to help combat the affordable housing issue in Seattle and surrounding areas.  Microsoft promised $500 million towards different solutions for affordable housing.  Today, they took the first step in that promise.  Together with the King County Housing Authority, $245 million will be used to purchase residential complexes in Kirkland, Bellevue, and Federal Way for low to moderate income residents.  Out of the $245 million, $60 million will come from Microsoft, $20 million from King County, and the remaining $140 million come from bonds from the housing authority.

The apartment buildings in this planned purchase are in areas that are experiencing a past paced growth – which may displace some residents.  By purchasing these buildings, five in total, it will keep over 1,000 units affordable.  The complexes to be purchased are Riverstone in Federal Way, Kendall Ridge in Bellevue, Emerson, Juanita View, and Kirkland Heights in Kirkland.  These complexes appeal to moderate income residents, of which Microsoft has also pledged to help.  These are the population who earn between $60,000 to $120,000 a year.  Those currently living in the complexes can stay there, no matter what their income level. 

It is estimated that rent has increased more than 40% since 2012.  While the rents have cooled in the last year, they are slowly creeping back up as noted in a previous blog.   The Seattle area is also seeing a large decrease in affordable housing.  The county is estimating a loss of about 36,000 affordable units. 

This is the first major investment for Microsoft since announcing their plan in January.  However, this isn’t the first grant provided by Microsoft.  In June, they donated $5 million to Plymouth Housing, a nonprofit organization dedicated to eliminating homelessness and preserving affordable housing. Microsoft’s commitment of $500 million is the largest pledge in the nearly 50 years of business.