Co-op Construction and Plans in Rainier Valley Demonstrate That Adding Density to Single Family Zones for Affordable Housing Is Possible

Affordable co-op housing options are emerging in Seattle's South End. One Housing and Urban Development (HUD) project, U-Lex Co-op, is looking for residents to sign up before build. Corvidae Co-op — a new affordable housing project located in the Rainier Valley near the Mount Baker light rail station — that completed construction this past summer. The 10-unit property is designed for low-income and first-time home buyers and has two-bedroom, one-bedroom, and studio apartments for sale ranging from $170,000 to $625,000.

"We had to break down loads of barriers to get this project built, and now the city planners and council have really taken notice," said Leah Martin, architect and cofounder of Allied8 Architecture and Design. According to its website, Allied8 is a small studio of architects and policy advocates. They have designed, developed, and renovated hundreds of properties ranging from homes, penthouses, mixed-use spaces, businesses, and a church.

Martin said she and her co-developers, Frolic, were inspired by a need to show city planners that there are innovative solutions to the affordable housing crisis. "My primary goal was to show the city and the city planners how we can add density to single-family zones and make it affordable, so that single-family zones aren't just for people that earn $300,000 a year," explained Martin. "I wanted to show city planners that we can build added density in single-family parcels without offending neighbors by still meeting the rules of the zoning code and making a thoughtful community."

According to Martin, single-family land is rarely used to develop affordable housing, and it wasn't until recently that city planners and developers began to revisit the conversation. "80% of Seattle is made up of single-family land, and all the rules and regulations around building affordable housing have been ignoring the land … Since 2015 when Mayor Murray introduced HALA, until about last year, there was no talk of tackling affordable housing and single-family land. If it's 80% of the land mass of Seattle, we're never going to put a drop in the housing crisis bucket unless we unlock that land."

Working on a project with a different approach has taken time. "It took us about two years to acquire the land and … do our due diligence to ensure that we could … actually build something on the land. Then … two years to design and permit, two years to find the lenders, and one year to build," explained Martin.

Martin said the hardest part of the project was raising enough money to begin construction. "Our biggest hurdle was finding lenders that would lend us money for the construction loans, because you don't build new co-ops," Martin said.

"Newly developed co-ops are not a thing. They're usually conversions from old apartment buildings, so we spent probably two years courting a myriad of different banks that all amounted to failed banking deals. We finally were able to make strides and get a banking deal together when we decided to essentially invite three different lenders, [so] the construction loan was made up of three banks instead of one."

After striking out with national banks, Martin said they began to look at local banks. "We started with national banks, thinking, 'Oh, they have so much money. This is just a drop in the bucket,' but they had no understanding of the Seattle market," explained Martin. "The one in first position was 1st Security Bank, which is local …[then] we went to the Rainier Valley Community Development Fund, and they both said yes." Then another lender, a community development financial institution (CDFI) that just works with co-ops, filled the financial gap.

In contrast to Corvidae's approach of gathering funding before building, another co-op is in the process of selling units so they can begin construction. According to Pearl Nelson, real estate agent and thought partner for HomeSight's U-Lex Co-op, there are only 20 more units out of 68 available.

"We're building an affordable for-sale opportunity for our community where the entry is as low as $50,000 to buy your share, all the way up to $93,000," said Nelson. "Because this is a [Housing and Urban Development (HUD)] project, we are signing up people. We have about 20 units left, which is amazing for a project that isn't even starting construction yet."

Nelson said construction will take about 18 months and is anticipated to wrap up by the middle of 2026. "We have over 40 people who have already signed and paid a $500 reservation fee to reserve their spot. When it's completed by 2026, people [will] move right into their unit that they purchased, but they don't have to pay anything until they move in."

Since U-Lex Co-op is an affordable housing project, prospective buyers must meet the eligibility requirements. "It's at 80% area median income and below, so that means a single person making $77,000 and below, a qualified family of two making $88,000, and a family of three making just under $100,000 and so on. And then you have to be a first-time home buyer, and want this to be your primary residence," said Nelson.

According to Nelson, part of what makes the U-Lex Co-op project so important is that it gives low-income families an opportunity to own property in one of the nation's most expensive cities. "The opportunity is for people who might not have an opportunity to buy otherwise. With the high cost of rent and the high cost of the median house price being upwards of $900,000 or more in Seattle, I think it's a great opportunity for community to buy into a project where you own your unit, but you also own the building collectively with all 68 members."

To reserve a spot at the U-Lex Co-op, prospective buyers are encouraged to reach out to Pearl Nelson at pearl@homesightwa.org to begin the process. Prospective buyers must register through the online portal, for which a tutorial is available.

Editors' Note: This article was updated on 01/21/2025 to correct information regarding construction timelines, availability of units, and developer titles.