The housing shortage in Washington State has reached a critical point. According to the Washington State Department of Commerce, the state needs to add 1.1 million homes over the next 20 years, with more than half needing to be affordable for residents at the lowest income levels. Housing is the foundation of healthy families and thriving communities, yet the lack of affordable options is leaving many behind. To meet this challenge, we must accelerate the production of affordable homes while expanding the pool of developers who can deliver them.
A recent Urban Institute report highlights the issue: women and people of color are vastly underrepresented in housing development, particularly in multifamily projects. This lack of diversity, combined with barriers to capital and technical support, is stalling the production of affordable housing. The status quo isn’t working—it’s time to change it.
At LISC Puget Sound, we’re tackling this challenge head-on. We know that to meet the affordable housing demand, we must invest in the next generation of housing developers who can help build more homes. That’s why we launched the Housing Equity Accelerator (HEA) in partnership with the Amazon Housing Equity Fund. This program is designed to equip emerging developers—particularly those from historically underrepresented communities—with the tools, resources, and capital they need to scale their operations and contribute to the production of affordable housing.
Since its inception, the HEA has worked with 33 emerging housing developers from across the region. The first cohort included 13 developers from 9 organizations, and based on the learnings from that experience, we expanded the second cohort to 20 developers—including both nonprofit and for-profit developers. This second cohort is currently working on 25 projects, with an estimated 1,866 units in production, 1,411 of which are affordable. These incredible community leaders are working tirelessly to increase affordable housing in our region.
This isn’t just a program—it’s a long-term investment in people and communities. HEA provides grants, loans, personalized coaching, and technical assistance to developers like Leslie Byrd, founder of Alpha Sharp Development. Through HEA, Leslie has been able to expand his team, develop multiple projects, and break ground on a 120-unit affordable housing project. Leslie recently shared his experience and expertise at an Urban Institute event in DC.
But it’s not just about one project. Leslie’s success, and the success of other HEA Fellows, represents a broader commitment to building long-term partnerships that empower emerging developers to thrive in Washington’s real estate landscape.
LISC Puget Sound plays a unique role in bringing housing experts together to provide targeted support for emerging developers. We offer personalized coaching and technical assistance to help developers navigate the complexities of real estate development—whether it’s securing zoning approvals, refining financial models, or structuring deals. We recognize that each developer faces different challenges, and we tailor our support accordingly.
One of the biggest barriers for emerging developers is accessing predevelopment capital, which is often critical for activities like land acquisition, feasibility studies, and early-stage design work. To help them overcome this hurdle, we provide flexible grants and patient capital that enable developers to build their businesses, strengthen their portfolios, and move projects forward. As a Community Development Financial Institution (CDFI), LISC also leverages its lending capital to invest directly in projects and create innovative funding solutions. This includes connecting developers to lenders, from CDFIs to commercial banks, ensuring they have the capital needed to accelerate development.
One of the biggest challenges that emerging developers face is the lack of equity required to finance affordable housing projects. Without sufficient equity, developers are often limited to advancing only one project at a time, slowing the overall production of affordable homes. This is especially true for developers focused on affordable homeownership, where thinner margins limit the amount of debt projects can carry, requiring equity to fill the gap.
To address this, LISC is working with partners to develop creative financing solutions that reduce the amount of equity developers need to raise, allowing them to take on multiple projects simultaneously. By removing this financial barrier, we’re helping developers scale up their operations and accelerate the production of affordable homes.
Meeting Washington’s affordable housing needs will require collective action across sectors. Here’s how you can support the next generation of developers who are shaping the future of affordable housing in our state:
The Housing Equity Accelerator is more than just a program—it’s a long-term commitment to addressing Washington’s housing needs and investing in the people who can build solutions. By supporting emerging developers, we’re not only helping to produce more affordable housing but also creating opportunities for economic mobility and wealth-building in communities that have historically been left behind.
At LISC Puget Sound, we believe that by investing in people, we’re investing in the future of our communities. Whether you choose to invest in predevelopment capital, volunteer your expertise, or advocate for policy change, your involvement can make a lasting impact. Together, we can create the housing solutions our state needs and build a more inclusive, equitable future for all.