316 households in Salishan and Hillside Terrace will see their units updated and renovated over the next two years.
TACOMA, WA – December 10, 2025 — The Tacoma Housing Authority (THA) has secured new funding to rehabilitate over 300 of its existing affordable housing units. 316 households representing over 1,000 residents of northwest Salishan and Hillside Terrace 2300 will see their units updated over a two-year period. This $150 million effort will bring much needed upgrades and renovations to these decades-old properties.
Resyndication is a feature of the Internal Revenue Service (IRS) Low-Income Housing Tax Credit (LIHTC) program in which affordable housing providers seek to secure a new allocation of tax credits for the purpose of 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 THA family properties. This program was recently expanded by Congress and championed by Senator Maria Cantwell.
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
“Salishan and Hillside Terrace are family properties at their core,” said Director of Asset Management and Real Estate Development Ken Short. “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.”
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.
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.
About Tacoma Housing Authority
Established in 1940, Tacoma Housing Authority provides high-quality, stable, and sustainable housing and supportive services to people in need, in ways that help our clients prosper and help our communities develop equitably. THA develops and manages real estate, provides rental housing, and partners with thousands of private landlords to help families pay the rent in the private rental market. In addition, THA delivers supportive services to help families succeed as tenants, parents, students, wage earners, and builders of assets who can live without assistance. THA seeks to do its work in ways that help our community be an “attractive place to live, work, attend school, shop and play,” and that help Tacoma be “safe, vibrant, prosperous, attractive and just.”