Blog Post

THA Announces Successful Closing on Next Financial Phase of New Salishan

October 27, 2008

At its recent Board of Commissioners meeting, the Tacoma Housing Authority announced the successful financial closing on Salishan Six, the next financial phase of its Salishan redevelopment. “We are on a very tight schedule with HUD and with the Washington State Housing Finance Commission to complete Salishan Six rental construction by New Year’s Eve 2009. I am very pleased that we achieved this closing with terms that, especially in this difficult financial market, are quite favorable,” said Ken Miller, Chair of THA’s Board of Commissioners.

The cost for the entire Salishan redevelopment will exceed $ 225 million. Most of that money comes from private investors and lenders. The budget for this recent phase, Salishan Six, is

$22,632,646. This phase will construct 90 rental dwelling units and related facilities. Its funding includes low income housing tax credits, loans and grants. The investor, RBC/Apollo Equity Partners, will acquire membership interests in Salishan Six LLC. KeyBank National Association will lend up to $14,000,000 for construction financing. The Washington Community Reinvestment Association will lend $3,236,065 (subject to adjustment) to provide permanent financing for the project. The City’s Tacoma Community Redevelopment Authority (TCRA) will lend $500,000 from its HOME Funds. The United Way of Pierce County, in partnership with TCRA, will lend a total of $ 200,000 from its Housing Trust Fund Demonstration Project for Salishan Six and the previous financing phase, Salishan Five. THA has also applied to Washington’s Department of Community, Trade and Economic Development for a Housing Trust Fund Loan for $2 million.

THA Executive Director Michael Mirra stated, “As we all know, the nation’s financial markets are seriously troubled. Projects in other parts of the nation have halted for lack of financing. We take this successful financial closing on Salishan Six as an encouraging sign of continued investor and lender confidence in Salishan, THA and Tacoma.”

About the Salishan Redevelopment

THA is redeveloping its Salishan public housing community. Sparked by a $35 million HOPE VI grant from the Department of Housing and Urban Development in 2000, this project will demolish 855 worn out public housing units built in 1942, replace 188 acres of old infrastructure and build a new mixed-income neighborhood of homeowners, renters, commercial buildings and parks. When completed, New Salishan will have new infrastructure, 1,200 – 1,300 dwelling units, including about 350 privately owned single family homes, parks and playgrounds, and a neighbor- hood core with a medical-dental clinic and an education, training and retail center. Within and adjacent to New Salishan, the Tacoma School District also has built a new elementary school and is building a new middle school. New Salishan has already won numerous awards for its attractive and environmentally responsible design. This very ambitious project should finish in 2011.

About Tacoma Housing Authority

Established in 1940, Tacoma Housing Authority engages in a wide range of efforts to help its City meet the growing need for affordable housing. THA develops and manages real estate. It provides rental housing. In partnership with thousands of private landlords, it helps families pay the rent in the private rental market. It delivers supportive services to help families succeed as tenants, parents, students and wage earners who can live without assistance. It helps them purchase their first home. THA seeks to do its work in ways that help neighborhoods be attractive places to live, work, attend school, shop and play, and that help its City be prosperous, healthy and just.

THA News Release – Page 2 October 27, 2008