Amazon’s $1.4B Housing Fund Now Open for Developer Applications
By Anna Staropoli August 21, 2024 5:38 pm
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Amazon (AMZN) is open to more than just online shoppers.
Starting this week, affordable housing developers can apply to receive financial assistance from the $1.4 billion pool within Amazon’s total $3.6 billion Housing Equity Fund, according to the Washington Business Journal. To receive a fraction of the funding, both new and repeat applicants can submit project proposals through the fund’s website.
The fund, which launched in 2021, is for the preservation of more than 35,000 affordable homes in and around Arlington, Va., as well as the Puget Sound in the Pacific Northwest and Nashville, Tenn., per Amazon. Each of those locations is a major Amazon office market.
In June, Amazon increased its original housing equity fund of $2.2 billion by $1.4 billion. With the latest funds, Amazon hopes to address the need for 14,000 affordable homes, offering below-market rate loans and grants.
Applications for the program have already started to come through. An Amazon spokesperson told the Business Journal that the Housing Equity Fund “will consider each project on a case-by-case basis,” rather than region-to-region. It’s unclear when a decision will be made.
However, Amazon is especially looking for applications that address communities with neighborhood services, public transportation systems, jobs and amenities, according to a company statement. Amazon is also seeking underrepresented developers in addition to public agencies and nonprofits.
Once a project receives Amazon’s green light, the e-commerce giant requires the chosen developer to stay true to the nature of the grant and keep rents affordable. Asking prices have to be capped long-term at the affordability threshold for households that make between 30 to 80 percent of the area’s median income, according to the statement.
“We created the Amazon Housing Equity Fund to preserve and create homes that will remain affordable for the next century, ensuring families can stay in their communities for generations to come,” Amazon CEO Andy Jassy said in a previous statement.
Over the last few years, the e-commerce giant has made good on its word. So far, the Washington, D.C., area has received roughly $1.1 billion in Amazon project funding for 9,400 units. In 2022, Amazon allocated $24 million for 122 affordable homes in Bethesda, Md.’s Strathmore Square. The year prior, Amazon’s Housing Equity Fund allocated loans and grants toward Crystal House at Arlington’s 1900 South Eads Street. Barcroft Apartments at 130 South George Mason Drive in Arlington also received $542 million from the housing fund.
A spokesperson for Amazon did not immediately respond to a request for comment.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
