$55M project set to bring 80 affordable-housing units to Tacoma
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- Walsh Construction offers details of site work on 80-unit affordable housing project.
- All 80 units are required to rent to households at or below 60% AMI.
- Estimated development cost $55M; leasing expected winter 2027 to spring 2028.
A new Tacoma apartment site offering affordable units appears to be taking shape after years of planning.
Walsh Construction said Monday in an emailed newsletter that the company “is preparing to begin construction of the 35th & Pacific family housing project for Mercy Housing Northwest.”
The site, 3561 Pacific Ave., is planned as a “5-story, 80-unit affordable housing building consisting of five levels of wood frame construction, surface parking, and a one-story wing market space,” according to the newsletter, with apartments ranging from 1- to 3-bedroom units.
The update stated that initial work is focused on mass excavation, underground utilities and below-grade waterproofing.
The company also noted that street improvements “are scheduled to take place on Pacific Avenue and South Division Lane, accompanied by an expansion of Harrison Street.
“During construction, we can anticipate typical impacts such as equipment noise, temporary overnight street & sidewalk closures and detours,” the newsletter stated.
The company said it “will be limiting those impacts to our approved working hours and approved traffic control plan. Please be alert and safe when around the construction site.”
The newsletter added, “Our working hours are limited to 7 a.m. to 7 p.m. Monday through Friday and 9 a.m. to 7 p.m. on Saturday, which is within the noise ordinance requirements” of city code.
Katie Randall is a project developer with Mercy Housing Northwest. She told The News Tribune on Friday via email in response to questions that “The new housing at 35th and Pacific is expected to be complete in spring 2027.
“The project includes the 5,200 square foot Community HUB on the ground floor that includes flexible gathering and programming space, a kitchen, and space for low- or no-cost food access at a convenient scale.”
Randall added that “The space will provide a variety of services for both building residents and the neighborhood at large. MHNW will engage community partners for operating this HUB in 2026.”
History of Tacoma affordable housing project
The property in spring 2022 was transferred from Pierce County to the City of Tacoma/Tacoma Community Redevelopment Authority “to be developed as mixed-income housing with a minimum 80 units reserved for lower income households,” according to a news release at the time from then-Pierce County Councilmember Marty Campbell.
The agreement also allowed for the site to be used as a temporary shelter through the end of 2023, as allowed under city code, with an option to extend the shelter usage by two years until development began.
Pierce County first acquired the property in 2000 as part of a larger land deal to be developed for county facilities, which never happened. In 2007, the County Council declared the property surplus, but it never sold.
The site served as home for Tacoma Rescue Mission’s 135-bed Forging Path Community, which closed in June of this year.
The Community Redevelopment Authority then transferred the site to an LLC affiliated with Mercy Housing Northwest in September 2025, county records indicate.
Jordan Chames, communications coordinator with Pierce County, told The News Tribune via email in response to questions,“Under Pierce County’s contract, all 80 units must be rented to households earning at or below 60% of the area median income (AMI).”
The City of Tacoma provided a chart showing the rent breakdown for 30 city-assisted units at the site.
Maria Lee, media representative for the city, told The News Tribune in response to questions, “Other funding partners or programs involved in this development may set different affordability requirements for the remaining apartments in the building, but the city is only responsible for the commitment outlined (in the chart).”
She added, “This project also includes a separate set-aside of 20 units dedicated to residents with Intellectual and Developmental Disabilities (IDD). While some households in the 30 city-assisted units may also qualify as IDD residents, the city does not have specific regulatory authority over the eligibility or program structure for these 20 dedicated IDD units.”
A description of the site on Pierce County’s website says 35th and Pacific will include 60 parking stalls and that “amenities include food market, community room, and green space.”
The listing notes that $6.5 million in county funds have been designated for the project, with “projected leasing” anticipated between winter 2027 and spring 2028.
A description of the project on the City of Tacoma’s website states the project will include “37 one-bedrooms, 24 two-bedrooms, and 19 three-bedrooms.”
According to the city, the project has an estimated development cost of $55 million.
During its March 18, 2025 meeting, the Tacoma City Council approved an amendment to the Affordable Housing Fund agreement with the Tacoma Community Redevelopment Authority, which designated $2.24 million to the 35th and Pacific project, as well as an additional $1 million to Aviva Crossing and $3.7 million to HumanGood Affordable Housing’s South Yakima Senior Housing facility.
The council at its Oct. 28 meeting approved an additional amendment to the AHF agreement which designated an additional $5 million to the 35th and Pacific project.
Story updated Nov. 7 with comment from Mercy Housing Northwest representative and additional detail regarding city funding approved Oct. 28.
Previous reporting from The News Tribune contributed to this report.
This story was originally published November 6, 2025 at 5:15 AM.
