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

Jim Pitts stands on walkway overlooking filtration chambers at the King County South Treatment Plant in Renton. Aaron Kunkler/staff photo
Human waste: Unlikely climate change hero?

King County treatment plant joins effort to counteract effects of carbon dioxide.

Washington State Capitol Building. Photo by Emma Epperly/WNPA Olympia News Bureau
Legislation targets rape kit backlog

WA has about 10,000 untested kits; new law would reduce testing time to 45 days

File photo
Law enforcement oversight office seeks subpoena power

Organization has been unable to investigate King County Sheriff’s Office.

Call for peace, unity, understanding

City, county and state leaders show support of Islam community in wake of massacre at New Zealand mosques

King County bail reform hinges on pretrial decision making

Data on inmates has shown that being held pretrial affects the likelihood of conviction.

State smoking age rising to 21 in 2020

Legislature approves change

Defense Distributed’s 3D printed gun, The Liberator. Photo by Vvzvlad/Wikimedia Commons
‘Ghost gun’ bill moves to Senate committees

Legislation would make 3-D printed guns illegal.

King County Council with Sarah Reyneveld, chair of the King County Women’s Advisory Board. Photo courtesy of King County
King County proclaims March as Women’s History Month

This year’s theme is Womxn Who Lead: Stories from the past and how they influence the future.

A man addresses the King County Council during a public hearing March 20 at New Life Church in Renton. He presented bags filled with what he said was hazardous materials dropped on his property by bald eagles. Another speaker made similar claims. Haley Ausbun/staff photo
Locals show support for King County waste to energy plant

Public hearing on landfill’s future was held March 20 in Renton.

A man addresses the King County Council during a public hearing March 20 at New Life Church in Renton. He presented bags filled with what he said was hazardous materials dropped on his property by bald eagles. Another speaker made similar claims. Haley Ausbun/staff photo
Locals show support for King County waste to energy plant

Public hearing on landfill’s future was held March 20 in Renton.

Foodborne outbreak investigation at Seafood City

Two individuals got sick after eating raw blue crab in mid-January.

After being homeless, Christy X (pictured) moved into her Coniston Arms Apartments unit in Seattle at the beginning of 2019. She had bounced around from shelters to friends’ places after facing an eviction at her West Seattle apartment in October 2018. A diversion program run by the nonprofit Mary’s Place helped her find housing. File photo
State lawmakers consider eviction reform legislation

Sen. Patty Kuderer, D-Bellevue, is bill’s prime sponsor.