A prominent Capitol Hill nonprofit will be taking the lead role in developing an all-affordable housing building as part of the four site, mixed-used project that will one day surround Broadway’s Capitol Hill Station.
Master developer Gerding Edlen has selected Capitol Hill Housing to develop, own, and operate the seven story, 86-unit building. According to Gerding’s winning proposal, half of Site B-North’s units will be restricted to households making no more than 30% of the area median income. The other half will be made affordable to households at or below 60% of AMI. Initial plans call for a community center and a day care, as well as a rooftop deck and computer lab.
CHH’s involvement in the project still needs to be approved by the Sound Transit board. The affordable housing provider operates 42 apartment buildings mostly concentrated around Capitol Hill.
Gerding’s partnership with CHH comes after the Sound Transit board selected the Portland-based company in April to be the master developer of the 100,000 square foot, “transit oriented development.” According to Gerding, the company will purchase the affordable housing property from Sound Transit and sign leases for the three others. Contract negotiations for the properties, which are estimated to be worth around $25 million, are expected to last at least through this summer.
Site B-North was always intended to be developed and run by a nonprofit housing organization, but Gerding’s original partner pulled out from the project last year. CHH filed a formal protest when Gerding won the bid without first securing a nonprofit partner. At the time, CHH CEO Chis Persons said he believed it was an honest mistake.
Capitol Hill Housing had originally been part of a proposal with the Jonathan Rose Companies to develop the property.
The price tag for the outright purchase of Site B-North is $2,847,000, according to Sound Transit. Around 42% of that will go towards paying back federal transportation grants that were secured for the project.
Overall, the TOD plans call for 418 apartments with 38 percent of units to rent for below market rate for 12 years and Site-B North’s 86 units designated for “permanent affordable housing.” A third of the units will have at least two bedrooms. Gerding estimates the project to cost $124 million for three sites, not including the affordable housing site. According to the 262-page bid document, construction for Site A is slated to start around summer 2016 and last through August 2017. The entire project is expected to be complete sometime in 2018.
Meanwhile, the $1.8 billion light rail extension connecting downtown to the University of Washington under Capitol Hill is expected to open for service by early 2016. Sound Transit forecasts that by 2030, there will be 14,000 boardings a day at Capitol Hill Station.