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Pierce County to spend $17M raised from new sales tax on affordable housing

John Froschauer
/
The Associated Press

Pierce County has announced $17 million in affordable-housing investments made possible by revenue from the Maureen Howard Affordable Housing Sales Tax.

In 2023, the Pierce County Council approved the sales tax that collected one-tenth of 1% of sales to leverage additional revenue for affordable-housing investments. The tax was named after Maureen Howard, a prominent advocate for the homeless in Tacoma who died in January 2023.

Pierce County Executive Ryan Mello advocated for the sales tax when he was on the Pierce County Council.

In an interview, Mello told The News Tribune he remembered telling Howard the county was going to name the tax after her. He said while she passed away just months before the tax came into effect, he is proud to be able to carry on her legacy as a housing advocate through affordable-housing investments.

Mello said even though the $17 million investment covers a diverse range of projects across a broad scope, it is just a drop in the bucket, as many more affordable-housing units will need to be built in the coming decades.

“To fully meet the housing needs of current and future residents, the county needs to produce, on average, over 2,300 units per year of housing affordable at or below 50% of area median income (AMI) through the year 2044,” the county’s Housing Action Strategy of 2022 found. “Over half of these units are needed for households at 30% of AMI or below.”

According to Pierce County, the region’s Area Median Income is around $98,200 per household.

The round of investments announced by the county March 4 will account for more than 350 affordable-housing units.

Habitat For Humanity will receive $1.1 million for the purchase and rehabilitation of 20 single family homes owned by Pierce County Housing Authority. The homes are on scattered sites throughout Pierce County but mainly in the Spanaway-Parkland area.

The homes will be sold to first-time home buyers earning up to 80% AMI. Habitat For Humanity’s restricted resale model will ensure the homes remain permanently affordable.

Homeownership Center of Tacoma will receive $139,132 for construction of two new single-family homes on two parcels in Lakewood that are owned by the Homeownership Center.

According to the county, those two homes will be adjacent to each other and represent the first of two phases for this project that ultimately will total six single-family homes. These homes will be sold to first time home-buyer households earning up to 80% AMI.

Mercy Housing Northwest will receive more than $3.6 million for development of 80 units of affordable housing near the planned Bus Rapid Transit corridor. Units will be available for households earning less than 60% of AMI, with 20% of units set aside for families with a disability.

According to the county, the project will have a no-cost food market, as well as a community room and shared outdoor green space with walking trails.

Pierce County Housing Authority will receive $892,857 for acquisition of an affordable-housing building in Parkland with 56 units.

According to the county, this acquisition will maintain the long-term affordability of these units and prevent displacement. The building, known as Hidden Firs, is near Sprinker Recreation Center, Spanaway Lake Park, and walking distance to two grocery stores.

Urban Black Community Development will receive $ 1 million for acquisition and rehabilitation of three historic buildings in downtown Tacoma to preserve 78 affordable housing units, which are primarily studios and one-bedrooms for 50% or below AMI.

Bridge Meadows will receive $5.5 million for development of 60 new affordable housing units serving households earning less than 60% of AMI.

Pierce County described the project as a mix of 44 units for seniors and 16 town homes for families with children who have experienced the foster-care system. The project is planned to have supportive services, community rooms, garden, and therapy spaces, on Tacoma’s Eastside near Stewart Heights Park.

Beacon Development Group and Greater Christ Temple Church are to receive more than $4.6 million for development of 65 new affordable-housing units for seniors earning less than 50% of AMI. The site is owned by Greater Christ Temple Church in Hilltop near downtown Tacoma at 21st Street and South Yakima Avenue.

According to the county, 13 units will be set aside for permanent supportive housing to assist those experiencing homelessness. There are also plans to partner with Pierce County Department of Aging and Disabilities Services to provide housing referrals to the site and case management for residents.

Planned amenities include an exercise room, computer room, coffee bar, bistro, community room and outdoor space.

Greater Lakes Mental Healthcare will receive $33,000 for operation and support of the Cedars apartment complex, which consists of 15 studio apartments for single adults with a mental illness and earning less than 30% AMI.

AHAT Homecare will receive $116,000 for operation and support of two adult family homes for low-income individuals living with HIV and AIDS. The projects are known as Three Cedars and Project Open Door.

This article was first published by the Tacoma News Tribune through the Murrow News Fellow program, managed by Washington State University.

Cameron Sheppard is a Murrow News Fellow at the Tacoma News Tribune covering homelessness in Pierce County and its intersections with public policy, housing, health and community.