$2.7M will help support more than 400 affordable homes coming to Pierce County
AI-generated summary reviewed by our newsroom.
- County got $2.7M CHIP funding for projects that will add over 400 homes.
- Addison 50–60% AMI; Good Neighbor 65% AMI; Frederickson up to 80% AMI.
- Addison and Good Neighbor target 2027; Frederickson construction starts in 2027.
Over 400 affordable homes are coming to Pierce County.
According to a news release from Pierce County, three new projects are coming:
- Addison Grove in the Frederickson area.
- Good Neighbor Village in Spanaway.
- Frederickson South in the Frederickson area.
The county received $2.7 million for these projects from the state’s Connecting Housing to Infrastructure Program (CHIP). In January, the state Department of Commerce issued $54.5 million in CHIP grants for 70 projects in 22 counties.
In the release, the county noted that it’s facing a serious housing shortage. By 2044, Pierce County will need more than 100,000 new housing units to keep up with anticipated demand – and 77,000 of these units “should be dedicated to households who need affordable options.”
“CHIP funding helps us remove infrastructure barriers so we can deliver housing for working families, first-time homebuyers, and people exiting homelessness,” county executive Ryan Mello said in the release. “These projects will strengthen our communities and create long-term stability for residents across Pierce County.”
Addison Grove
The Addison Grove project will be located at 17753 78th Ave. E. and bring 102 new “family-sized rental homes,” according to the release.
Alec Thomas, spokesperson for the developer, Great Expectations, told The News Tribune they are expecting to start construction this May and wrap up construction in August 2027.
Thomas said all homes will serve families who make 50% to 60% of the Area Median Income (AMI). Jordan Chames, spokesperson for Pierce County, said 50% AMI breaks down like this:
- $42,300 for a one-person household.
- $48,350 for a two-person household.
- $54,400 for a family of three.
- $60,400 for a family of four.
A 60% AMI breaks down like this:
- $52,240 for a one-person household.
- $59,712 for a two-person household.
- $67,184 for a three-person household.
- $74,594 for a four-person household.
“Designed with families in mind, the community will offer rents well below market rates and ensure long-term affordability for at least 60 years,” the release said.
Frederickson South & Good Neighbor Village
The Frederickson South project will be located at the intersection of 200th Street East and Knoble Road East, near Canyon Road East in unincorporated Pierce County by Frederickson.
According to the release, it will add “20 to 28 deed-restricted, three-bedroom homes affordable to households earning 80% AMI or below.”
Chames told The News Tribune 80% AMI looks like this:
- $67,600 for a one-person household.
- $77,350 for a two-person household.
- $87,000 for a three-person household.
- $96,650 for a four-person household.
In an email to The News Tribune, Chames said they expect construction on Frederickson South to start in 2027.
Also in Pierce County, the Good Neighbor Village will offer 50 homes in Spanaway at 1609 176th St. S.
“By June 2027, the project will deliver 50 affordable homes, with plans to grow to 285 homes at full build-out,” the release said.
Chames told The News Tribune that the Good Neighbor Village will have a 65% AMI threshold, which breaks down like this:
- $54,990 for a one-person household.
- $62,855 for a two-person household.
- $70,720 for a family of three.
- $78,520 for a family of four.
The News Tribune previously reported that the Good Neighbor Village received permit approval from Pierce County in August, which was the final step before construction.
Tacoma Rescue Mission, which is one of Pierce County’s largest homeless shelter operators, will own and operate the project. TRM previously told The News Tribune the project will bring cottage homes to “chronically homeless” people who have been unhoused for more than 10 years, and residents will be required to work and pay rent. There will be about 35 volunteers or employees that will live on-site and provide 24/7 support.
The idea for the village first came from former Pierce County Executive Bruce Dammeier and Republican council members, but the process to approval was long, winding and contentious, with many nearby residents speaking out against the project.
A group called Spanaway Concerned Citizens has spoken out against the project, saying they are worried about its impacts to adjacent wetlands and wildlife. The group hired environmental lawyers, who brought the case before the Pierce County Hearing Examiner — but in June 2024, the hearing examiner approved the project.
This story was originally published February 23, 2026 at 10:00 AM.
