March 09, 2022

Kilmer Secures New Federal Funding to Support Affordable Housing & Jobs on Tacoma’s Hilltop

House Approves $4.5 Million in Federal Funding for Two Projects

Washington, DC – Today, the U.S. House of Representatives passed new federal funding that has been championed by U.S. Representative Derek Kilmer (WA-06) to support two projects that aim to provide more affordable housing and job opportunities in the Hilltop neighborhood of Tacoma. The investments aim to revitalize a historic Tacoma neighborhood and to help ensure the residential and business spaces will be attainable to community residents and BIPOC-owned businesses.

The House passed $3 million for the Tacoma Housing Authority’s Hilltop Housing and Commercial project to begin redeveloping three parcels of land as part of a public-private partnership. This project will bring approximately 200 units of affordable housing to households earning up to 60% of the Average Minimum Income (AMI) and approximately 20,000 sq. ft. of commercial space for predominately BIPOC-owned businesses. Additionally, the House passed $1.5 million for the Hilltop Attainable Housing and Businesses Development project, which aims to provide community ownership of a mixed-use hub for culture, community, homes, and businesses on the Hilltop.

The initiatives were included in the twelve-bill government funding package that passed the House with bipartisan support. The package also included historic investments in affordable housing – including $11 billion in funding to construct new and repair old affordable housing and improve critical health, safety, and maintenance of public and low-income housing. In addition, the bill provides $1.5 billion for states and local governments through the HOME Investment Partnerships Program, and significantly increases investments in distressed neighborhoods through the Choice Neighborhoods Initiative program. Furthermore, the legislation expands Housing Choice Vouchers by up to 25,000 low-income individuals and families experiencing or at risk of homelessness, including survivors of domestic violence and veterans; includes up to 4,000 new affordable housing units for seniors and persons with disabilities; and protects housing assistance for more than 4.8 million individuals and families. The legislation is expected to be approved by the U.S. Senate and signed into law by President Biden in the coming days.

“As we work to recover from the COVID-19 pandemic, it’s more important than ever that the federal government invests in the revitalization of our communities to support small businesses, grow jobs, and provide access to more affordable housing. Our region had challenges with affordable housing and homelessness before the COVID-19 pandemic – and those challenges have only been exacerbated by it. We can’t afford to leave anybody behind and it’s important that the federal government remains a strong partner as we work to address those challenges.” said Rep. Kilmer. “That’s why I’m thrilled that the House has passed federal funding I’ve been advocating for in order to advance two important projects to increase affordable housing and create more jobs on the Hilltop. I’m excited to see this legislation signed into law so we can get provide more affordable housing, spur economic growth, and continue on the path toward revitalizing the Hilltop.”

“On behalf of the City of Tacoma, I am very excited at the prospect of federal investment in these key housing and economic development projects in the Hilltop neighborhood,” said Tacoma Mayor Victoria Woodards. “Building upon our momentum spurred by Sound Transit’s Hilltop Tacoma Link Extension and the City’s Links to Opportunity infrastructure projects, this federal funding will help bring much-needed affordable housing units to the Hilltop neighborhood. I am grateful to Congressman Kilmer for being the champion of these proposals from our valued community partners, Tacoma Housing Authority and Forterra.”

“We are pleased that Congress has passed the House Appropriations package, which includes a combined $4.5 million funding request made by Representative Kilmer for redevelopment in the Hilltop neighborhood,” said Tacoma Housing Authority Executive Director April Black. “This funding will go a long way to address the needs of the community by bringing over 200 units of affordable housing, and an estimated 13,000 sq. ft. of commercial space for predominantly BIPOC-owned businesses.”

“The $1.5 million will provide critical funding so the Hilltop community and business space will be attainable to the BIPOC community and business,” said Rebecca Bouchey, Forterra managing director of community development. “This community-informed and driven development will provide a beautiful, sustainable community hub for Hilltop culture, community and business. It will make home ownership attainable and aims to meet the needs of Hilltop now and in the future.”

The Tacoma Housing Authority owns three parcels within two blocks in the Hilltop neighborhood of Tacoma. They aim to redevelop these sites as part of public private partnership to bring approximately 200 units of affordable housing and approximately 20,000 sq. ft. of commercial space. The $3 million included in the spending bill will be used to acquire the commercial spaces and provide financial assistance to business owners to do the tenant improvements needed for their spaces. Commercial tenants are expected to include a performing arts center and other BIPOC businesses. The Tacoma Housing Authority has a goal to occupy 80% of the commercial space with BIPOC businesses to reflect the local neighborhood and honor its culture.

In addition, for nearly two years, Forterra has been working with Hilltop community residents and businesses on a real estate development project – the Hilltop Attainable Housing and Businesses project – which aims to address the community’s need for a central cultural hub for the Black community and that will provide a home for small businesses, community ownership, community gathering space, and attainably-priced homes.

Forterra aims to develop four buildings to include 150-175 rental units and 150-175 limited equity cooperative ownership model units. At least 50% of the total rental and home ownership units will be affordable. According to Forterra, their limited equity cooperative home ownership model aims to significantly lower down payments and mortgage payments for prospective homeowners next to Sound Transit’s light rail extension. In addition to the attainable housing, the project will include approximately 50,000 square feet of commercial space for community-owned businesses and local non-profits. The buildings will be designed with community input, providing space for local, small businesses and community organizations, and helping build wealth for families priced out by gentrification and housing scarcity.

Rep. Kilmer led the effort to secure funding for the projects through the House Appropriations Committee’s Community Project Funding process.

The Community Project Funding request by the Tacoma Housing Authority was supported by Tacoma Mayor Victoria Woodards, the Tacoma Housing Authority Board of Commissioners, and Hilltop Action Coalition. The Community Project Funding request by Forterra was supported by the Pierce County Council and Tacoma Mayor Victoria Woodards.