Seattle was ranked as the hottest real estate market in the country in 2018. The influx of technology-based companies and the presence of online retail giant Amazon has created an increased demand for housing. 56% of black families, 50% of Hispanic families, and 35% of white families are severely cost-burdened, and renters are more likely than homeowners to pay more than 50% of their income to housing costs. Seattle also has the third-largest concentration of homeless people in the country, trailing behind only Los Angeles County and New York City. The homeless population in 2018 rose to more than 12,000 — more than half of them unsheltered.

Located in Seattle, the Low Income Housing Institute (LIHI) is an experienced, affordable housing developer and member of the NeighborWorks® network. LIHI’s focus is to create or preserve housing for very-low-income and homeless populations. Remarkably, 75% of its 2,200 unit rental portfolio is affordable at 30% of Area Median Income (AMI). “To accomplish our mission, purchasing land is a critical need for us because funders won’t talk to you unless you already have a property. You can dream about what you want to build for an unmet need, but if you don’t have a site, you can’t apply for any financial assistance,” said Sharon Lee, Executive Director of LIHI.

In 2018, LIHI received a $6 million acquisition line of credit (LOC) and a $500,000 unsecured predevelopment LOC from Community Housing Capital (CHC). LIHI has used the LOC to acquire vacant land close to transit in South Seattle, and a rural site with water views in Island County north of Seattle. And soon, the organization will refinance three additional properties that it already owns.

“We are very grateful for the line of credit and have already put it to use. With CHC’s help, we are doing more work in rural communities. For example, we are using a portion of the LOC to develop 50 new homes for homeless veterans and their families, as well as low-wage workers in Oak Harbor on Whidbey Island,” said Lee. “We will also use CHC’s LOC to develop a 22,000 square foot site in the diverse but gentrifying neighborhood of Rainier Valley, near South Seattle’s light rail system. The Henderson Street project will add 88 affordable homes for families and individuals earning no more than 60% AMI,” Lee added.

LIHI owns or manages 2,200 housing units at 60 sites in six counties throughout the Puget Sound region, housing over 4,200 low-income people. Developments include permanent supportive housing, workforce housing, senior housing, and housing for families, veterans, young adults, and people living with disabilities. LIHI’s housing development work includes new construction, rehabilitation, and preservation of multifamily rentals, mixed-use properties, and manufactured home communities. The organization also provides development consulting for other agencies and develops affordable for-sale housing. LIHI emphasizes high-quality construction, prioritizing durability over the lowest short-term cost. Whether or not required to by funders, LIHI builds to the energy efficiency guidelines of the Evergreen Sustainable Development Standard and also works with award-winning architects to develop high-functioning spaces that meet the requirements of special-needs populations.