First Steve Ballmer-Backed Housing Project Breaks Ground
Addison Grove, a 102-unit affordable apartment community in Puyallup, Washington, broke ground last week using a financing model that bypasses the federal Low-Income Housing Tax Credit program. The 122,189-square-foot project is the first to draw on the Washington Family Housing Fund, a partnership between Ballmer Group and the Washington State Housing Finance Commission. Developer Great Expectations closed financing in 90 days, a fraction of the timeline typical for affordable developments. The project targets families earning between 50% and 80% of area median income in Pierce County, Washington, with 90 of 102 units reserved for households below 60% AMI.
The capital stack combines recycled tax-exempt bonds from the Housing Finance Commission, a $13.41 million subordinate loan from the Washington Family Housing Fund, and Fannie Mae’s M.TEB credit enhancement. The Housing Fund loan is forgivable at maturity, a structure intended to deepen affordability while preserving long-term stability. Additional funding came from the state’s Connecting Housing to Infrastructure program, private equity, construction financing from Heritage Bank, permanent financing from CBRE, and bond underwriting by Stifel. The development will consist of four garden-style buildings surrounding a community clubhouse.
The model introduces philanthropic capital with long-term affordability requirements rather than competing for existing public subsidies such as LIHTC or state gap funding. Great Expectations said the approach allows entrepreneurial developers to identify cost-effective delivery methods without displacing traditional funding sources. The 90-day close suggests the structure could accelerate affordable housing production in Washington, where tax credit allocations and layered public funding often extend timelines by months or years.
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