SEATTLE–Five credit unions have come together here to finance an affordable housing project.
According to its backers, the Evergreen Impact Housing Fund (EIHF) has reached a milestone with the financing of its first project, Solera.
“This innovative fund will help develop Solera’s 277 affordable housing units by filling a critical financing gap,” the organization said. “These units will be leased to households earning, on average, 50% of King County annual median income, or approximately $54,000-$58,000.”
“Working people who play critical roles in our society – elementary school teachers, grocery clerks, caregivers – cannot afford our region’s skyrocketing rents,” said Kris Hermanns, chief impact officer at Seattle Foundation, which manages the Fund. “This is about providing housing stability and ensuring enhanced equity and economic opportunity across our region.”
EIHF complements public funding with private, patient capital to boost the production of affordable housing. Five credit unions —BECU, Salal CU, Sound CU, Verity CU and WSECU–have pooled their resources and make the Solera project possible. Together, they are contributing $11.1 million to the Fund.
A ‘Dire Need’
“We are excited to work together to help provide affordable housing options, like the Solera Project, for more residents in the Seattle area,” the credit unions said in a joint statement. “Affordable housing is a dire need, so we’re investing in our communities and our members to create a brighter future with financial sustainability.”
According to organizers, Solera shows how private, patient capital can be used in an “innovative way” to stretch scarce public funding for affordable housing.
EIHF said it partners with the Washington State Housing Finance Commission and augments funds provided through the federal 4% Low Income Housing Tax Credit (LIHTC) program. In August 2021, the Commission awarded Solera $70 million in federal tax-exempt bonds. EIHF said it adds to this public funding, filling a gap that allows the project to move forward.
“This fund shows how private capital can fill critical financing gaps and allow public money to do more. We are proud to partner with EIHF and their investors,” said Steve Walker, executive director of the Washington State Housing Finance Commission, in a statement.
Opening in 2024
Solera is being developed by DevCo, LLC, which has already created 7,100 affordable housing units in Washington State. DevCo and their affiliates broke ground on Solera on August 31st and expect to welcome residents in 2024.
Residents of Solera will be close to jobs, schools, commerce, and public transportation, the organization added.