Real Estate Market & Homes

This vacant property in Tacoma’s North End could soon host 4 affordable-housing cottages

The City of Tacoma has authorized giving away free of charge the the corner lot at 18th and Orchard streets in Tacoma to Tacoma/Pierce County Habitat for Humanity. The former Tacoma Power facility is shown on Wednesday, April 10, 2024.
The City of Tacoma has authorized giving away free of charge the the corner lot at 18th and Orchard streets in Tacoma to Tacoma/Pierce County Habitat for Humanity. The former Tacoma Power facility is shown on Wednesday, April 10, 2024. toverman@theolympian.com

A vacant property in Tacoma’s North End could soon serve as home base for families in need.

The Tacoma City Council recently approved a resolution authorizing the no-cost transfer of roughly 13,000 square feet of property at 1801 N. Orchard St. The surplus land would change hands from Tacoma Power to the Tacoma/Pierce County Habitat for Humanity.

Sherrana Kildun, chief philanthropy officer of Tacoma/Pierce County Habitat for Humanity, thinks the city and the utilities department have been thoughtful in prioritizing affordable housing.

“We do have an affordable-housing crisis,” Kildun told The News Tribune on Monday morning at the site. “And so if there are excess properties like this former substation that we can build affordable units in, I think that’s exactly what our community needs.”

Four small cottages could soon crop up on the lot, along with a community-garden space, Kildun said. Each home can house families with up to three people and have its own parking space. Sitting at around 900 square feet, the buildings will be 1.5 stories with an upstairs bedroom and accessible ground-floor bedroom.

“So not huge houses, but [they’re] a great opportunity to step into homeownership,” she said.

The North Orchard Street property was first offered to the Puyallup Tribe, but the local Habitat for Humanity was the only interested party, according to a city resolution on the transfer.

Construction is expected to be completed by the end of 2028, Greg Muller with Real Property Services told the Tacoma City Council during the April 9 meeting. The city’s Community and Economic Development Department is overseeing the development agreement.

Deputy Mayor John Hines said during the April 9 council meeting that he’s looking forward to the project. He wants to see Tacoma have more opportunities for home ownership and for residents to be able to access the increasingly elusive “American Dream.”

“While I do understand some of the concerns around the trees that were on the site and the impacts of the new development, I would just say as a neighbor — I live right down the street — I’m really excited for this project to happen and to bring more people to our community and really support a lot of families here in the city of Tacoma,” said Hines, who represents District 1.

Habitat for Humanity will be mindful of the surrounding flora, removing unhealthy trees while planting new ones where possible, Kildun told The News Tribune. The homes will be sold to households earning below 80% of the area’s median income and one household earning under 50% AMI.

Purchasing a home in Tacoma today costs about $550,000 on average, Kildun said. Many families who work and live here can’t afford the structures in the current housing stock.

To qualify for the North Orchard space, applicants must have lived or worked in Pierce County for at least a year and have a minimum credit score of 620, she added.

“If they don’t have that yet, we’ll work with them until people are ready,” Kildun said. “Home ownership is a journey that doesn’t always happen overnight. We’re there to be partners and work with people to achieve that dream.”

The City of Tacoma has authorized giving away free of charge the the corner lot at 18th and Orchard streets in Tacoma to Tacoma/Pierce County Habitat for Humanity. The former Tacoma Power facility is shown on Wednesday, April 10, 2024.
The City of Tacoma has authorized giving away free of charge the the corner lot at 18th and Orchard streets in Tacoma to Tacoma/Pierce County Habitat for Humanity. The former Tacoma Power facility is shown on Wednesday, April 10, 2024. Tony Overman toverman@theolympian.com

From January 2019 to December 2023, some 1,163 housing units “at varying affordability rates” were built in Tacoma, city spokesperson Maria Lee said in an email. More than 1,200 others were expected to be added as of the end of last year.

Tacoma Public Utilities spokesperson Jessica Wilson noted that Habitat for Humanity won’t pay anything for the space in Tacoma’s North End — except for closing costs, such as escrow and title. The title transfer is expected to happen within the next month and a half.

After Habitat officially becomes the plot’s owner, development work will begin on the property, which the city gained in 1953 and “used as a substation site,” Wilson said via email.

TPU executive director Jackie Flowers is happy to see the property get “put to productive use.” Housing affordability has turned into a big challenge in the community.

While TPU doesn’t offer housing, it has sought to understand how utility costs can affect vulnerable households, Flowers said. The way she sees it, putting this land into Habitat’s hands works to address a major area of concern.

“Once we determine [a property is] surplus and are able to transfer it to a community in need, we see that as a benefit to the community and to our customers,” she said, “both in terms of eliminating properties that we no longer need that we’re paying to maintain ... but also in this case giving back to the community in a way that is so important.”

This story was originally published April 16, 2024 at 5:00 AM.

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