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Microsoft reveals first affordable housing investment of $500M initiative
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Microsoft reveals first affordable housing investment of $500M initiative

Microsoft introduced the first mortgage it’s going to grant as half of its $500 million affordable housing initiative Thursday, seven months after launching the program.

The software program big will present a $60 million, 15-year mortgage at below-market rates of interest to the King County Housing Authority, an impartial group established by Washington State to handle affordable housing and supply different companies. King County accommodates Seattle and Redmond, Wash., the place Microsoft is headquartered.

Microsoft’s capital, together with funding from the county and Housing Authority, brings the overall to $245 million. The funds will permit King County Housing Authority to purchase 5 residential condo complexes in Kirkland, Bellevue, and Federal Method. Taking possession of the 1,029 residences will guarantee they keep affordable for low- and middle-income residents, Microsoft says.

“As a result of of their location, these affordable properties had been at excessive threat of experiencing quickly escalating rents or redevelopment as higher-cost housing,” the corporate stated in a press launch.

In January, Microsoft stated it will dedicate $500 million to fund development of affordable houses and homeless companies within the Seattle area in an effort to alleviate a rising housing disaster pushed by the town’s tech growth. King County estimates that the quantity of affordable rental houses for low- and middle-income households has decreased by 36,000 within the area. Rents elevated 43 p.c between 2012 and 2017.

The affordable housing fund is the biggest philanthropic pledge in Microsoft historical past. The tech big is offering $475 million in loans to affordable housing builders over three years and donating one other $25 million in grants for homeless service suppliers.

Though Thursday’s announcement marks the first investment from Microsoft, the corporate has already began donating grants as half of the initiative. In June, Microsoft donated $5 million to a brand new affordable housing fund launched by Plymouth Housing.

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