In 2025, THA and our partners began work to rehabilitate 316 of our existing affordable housing units. This 2-year, $150 million project will provide more than 1,000 residents in the neighborhoods of northwest Salishan and Hillside Terrace 2300 with improvements designed to enhance comfort, safety, and sustainability for families.
THA has engaged LMC as the general contractor, who will partner with local development group 1DROP to facilitate outreach and opportunities for local, community-minded small businesses to work on the project.
History
THA undertook the first phases of New Salishan and the Hillside Terrace redevelopment in the early 2000s, and most of the buildings are now 15 to 20 years old. More than half of the units were built for large families, leaving the properties with significant capital needs, from flooring, cabinets and appliances to the windows, siding, and roofs.
THA’s goal is to ensure the highest quality housing in the community. Recertification of the properties offered a chance to take care of several major systems within a single project, making the process less intrusive than if the work were spread across multiple smaller projects.
Resyndication is a feature of the Internal Revenue Service (IRS) Low-Income Housing Tax Credit (LIHTC) program, which provides tax credits to affordable housing providers for preservation, rehabilitation, and/or sustainable development. This critical tool ensures that THA has financial backing to update and renovate hundreds of units and improve the quality of life for tenants at our family properties. This program was recently expanded by Congress and championed by Senator Maria Cantwell.
Rehabilitation plan
Salishan and Hillside Terrace are family properties at their core. This resyndication is more than a construction project—it’s an investment in children, parents, and neighbors who deserve high-quality, safe, and sustainable housing.
Ken Short, Director of Asset Management and Real Estate Development
The rehabilitation project will cover the 270 units in New Salishan Phases 1–3, plus the 46 units in the 2300 block of Hillside Terrace. The rehabilitation project is expected to span two years, with improvements designed to enhance comfort, safety, and sustainability for families.
THA is taking a strategic, staggered approach in which households will be temporarily moved to different units in their community while their home undergoes construction. The scope of work includes:
- New roofs, windows, and heat pumps
- Upgraded appliances, flooring, cabinets, and countertops
- Interior and exterior painting
- Modernized plumbing and electrical fixtures
- Comprehensive site improvements
55% of households whose homes will be rehabilitated include children, and 73% are extremely low-income, earning less than 30% of Area Median Income (AMI). The average annual income of these households is $28,918.
The resyndication is backed by over $150 million in funding from multiple sources, including a $10 million award from the Washington State Department of Commerce, dedicated to energy efficiency upgrades including new windows and heat pumps with air conditioning. Citi Bank is serving as the lender for this effort, underscoring the strong financial partnerships that make this ambitious rehabilitation possible.
Temporary relocation
In some cases, households may need to relocate temporarily while work on their units is being done. Depending on the work, these could be day moves where families can return to the unit every evening, or relocation to a hotel or another unit onsite for a few days or weeks.
THA is assisting the households who need to relocate for the project, taking school, work, and the family’s support networks are into account. Relocations are at no cost to the family. The work is being done in phases, with the first households moving back into their completed units by the spring of 2026.