Three housing projects with a combined construction budget of more than $87 million were in front of the Washington State Housing Finance Commission on Oct. 15, and the money on the table could decide when crews show up.
The commission scheduled a public hearing and vote on Thursday, Oct. 15, on allocating federal 9% low-income housing tax credits to three projects, according to the commission's meeting packet. The credits are paid out each year for 10 years, and developers sell them to investors to raise cash for construction. As a condition of the credits, developers commit to serving very low income, extremely low income and special needs households for up to 40 years.
The commission had not posted the outcome of the vote as of Oct. 18.
The three projects
DESC Morrison Preservation, Seattle. The Downtown Emergency Service Center is proposing a substantial rehabilitation of the Morrison, a 190-unit permanent supportive housing building at 509 Third Ave. The commission's staff summary says the building has served formerly homeless adults with significant health and behavioral challenges for more than 35 years and is DESC's largest and oldest residential building. The recommended credit is $2,673,681 a year.
The budget lists $47.4 million in construction costs out of a total development cost of about $83.3 million. DESC's own project page says the work focuses on replacing plumbing supply and return lines with individual shut-off valves in all 190 units, replacing old single-pane windows, and switching from gas-fired to electric heating and cooling.
Lincoln Family Housing, Tacoma. The Low Income Housing Institute plans new construction at 3727 Park Ave. S. in Tacoma's Lincoln District. It's the second of three phases. The first, Patsy Surh Place, finished 78 senior apartments in April 2025. The new building's staff summary lists 73 apartments, from studios to three bedrooms, for families with children, people with physical disabilities and low-wage workers. The recommended credit is $2,271,192 a year, and the budget shows about $29.6 million in construction out of a $39.8 million total.
Makah LIHTC Project #3, Neah Bay. The Makah Tribe is proposing 28 new homes on the Makah Reservation, split between two sites. Sail River will have 16 family-sized units in four fourplexes set up as paired duplexes, and Portage Crossing will have 12 units in six duplexes plus a community building. Seven units will be set aside for households experiencing homelessness. The budget shows about $10.6 million in construction out of a $12.2 million total.
The commission's documents list the Makah credit two ways. Some, including the staff summary and the posted hearing notice, show $884,178 a year. Others, including the draft resolution, show $844,178. Either way, the three projects together come to about $5.8 million a year in credits.
Rents and the money behind them
The staff summaries show how much the credits help. At the Morrison, market rent for a studio is listed at $968, while the proposed rent is $212. In Tacoma, proposed rents run from $597 for a studio to as much as $1,698 for a larger unit, compared with market rents of $1,425 to $2,425. In Neah Bay, proposed rents range from $447 to $723.
Tax credit equity is the biggest single source on all three projects. The packet lists about $23.3 million in credit equity for the Morrison, $16.8 million for Lincoln Family Housing and $6.5 million for the Makah project. Other money comes from the city of Seattle, the state Housing Trust Fund, the city of Tacoma, Pierce County and the tribe, among others.
Why it matters for Contractors
Tax credits are often the piece that lets an affordable project go from plans to a job site. Once credits are allocated, developers can close their financing and start construction.
These three jobs are very different. The Morrison is a rehab of an occupied building in downtown Seattle, with plumbing, window and mechanical work in a structure that has housed people for decades. That calls for careful phasing and subs comfortable working around residents. Lincoln Family Housing is new mid-sized construction in a busy Tacoma business district. The Makah project is fourplexes, duplexes and a community building in one of the most remote corners of the state, where getting crews and materials to the site is part of the job.
None of the documents name a builder. Contractors interested in any of these projects should watch for the commission's results and reach out to DESC, the Low Income Housing Institute or the Makah Tribe directly.