July 11, 2023

Sound Transit issues RFP for affordable units in Lynnwood

Photo via Sound Transit [enlarge]

This view looks roughly south at the station, garage and TOD site (in magenta).

As the DJC reported last month, Sound Transit has a roughly 2-acre surplus site at the future Lynnwood City Center Station, where affordable housing is the goal. The agency intends to sell to a qualified developer, with the expectation of about 200 units to be created. The request for proposals was published yesterday in the DJC, and responses are due by Sept. 29.

A virtual pre-proposal meeting will be held on July 26. Sound Transit would like to select the winning proposal by year's end, with board approval by next spring.

The roughly trapezoidal site is now being used for parking. It's on the west side of the elevated tracks and new garage. That's at or near 4520 200th St. S.W., on the corner of 46th Avenue West.

As previously reported, there's a creek in need of daylighting, which will add to the cost and complexity of the project. Also, part of the site has soil contamination from past use as a gas station. A full environmental report is part of the RFP application packet.

Sound Transit values the land at $4.8 million, and expects to sell at a discount.

As to possible future funding sources for both the land development costs, the agency mentions the federal Low Income Housing Tax Credit program (LIHTC), Snohomish County, bonds backed by the Washington State Housing Finance Commission and the Amazon Housing Equity Fund. The city of Lynnwood also has a multifamily tax exemption program.

Market-rate units aren't excluded from any proposals. Rather, as with all Sound Transit's prior TOD deals, developers should stick to the 80/80 rule. That is, 80% of the units should be affordable to households earning up to 80% of area median income. Lower affordability thresholds, down to 60% of AMI for some (but not all) units, are also encouraged.