by Jake Goldstein-Street, Washington State Standard
June 11, 2026
The Ballmer Group is committing hundreds of millions of dollars to fund 10,000 new affordable rental homes in Washington state, a dramatic investment focused on keeping families out of homelessness.
The money, announced Thursday, will cover up to $150,000 in forgivable loans per unit, which could result in as much as $1.5 billion from the philanthropy founded by former Microsoft CEO Steve Ballmer and his wife Connie. Though it’s unclear if the total will reach that level.
“We’re a little careful about not saying that we’re committing $1.5 billion, but if that’s what it ends up taking to build the units, we are committing to what it takes,” said John Griffith, the group’s executive director of strategy and operations as well as national housing.
Eligible rentals will have at least two bedrooms and be affordable to families earning roughly 50% of the area median income. For a family of four in Seattle, that would be $82,200.
To qualify for the forgivable loans, developers have to offer rent at a significant discount compared to market rates and vow to keep affordable rents for at least 60 years. The Ballmer Group expects families to save $750 per month on rent on average.
“Ballmer Group’s mission is to improve economic mobility for kids and families in the United States, and we’ve always known that housing is essential to that mission,” Griffith said. “If you’re going to give kids a fair shot at reaching their full potential, you kind of have to start with the basics, and the most basic is a safe and stable place to call home.”
The announcement comes after the Ballmers’ philanthropy late last year vowed to donate up to $170 million per year over the next decade for thousands of additional early childhood education slots for low-income families in the state. In that case, the Legislature had to pass a bill creating an account to accept the funding.
The Ballmers’ housing investment won’t need the same treatment, meaning the money is available immediately. A loan for a project in Frederickson, Pierce County, is already closed, and nine others, ranging from West Seattle to Twisp, have been approved.
The Pierce County development was a roughly $13 million subsidy with around 100 units, about 90 of them considered affordable under the new program, known as the Washington Family Housing Fund. That would pencil out to over $140,000 per unit.
Griffith expects the first families to move in within 18 months.
In total, over 1,100 new homes are already in the pipeline, according to the Ballmer Group. The organization has been “happily surprised” by the interest from developers, Griffith said. The loans will be available at least until the 10,000-unit goal is met.
The money comes with no strings for the state. The early childhood education funding came with a condition of the state pledging not to cut its own investment in that space.
Developers seeking to tap these loans would first go to the advisory group the Ballmer Group has brought in. Then the philanthropy organization would pre-approve the loan, before the Washington State Housing Finance Commission would finalize the terms, Griffith said. The state commission is technically the lender and would oversee compliance with loan agreements.
Steve Walker, head of the housing finance commission, said the state is excited about the “new approach that builds rental housing across the state without using overstressed public resources.”
“By working together, we can use this flexible philanthropic capital as a new tool alongside traditional public financing and unlock affordable homes for many more families,” Walker said in a press release.
Last fall, the Ballmer Group invested $150 million in two private affordable housing firms that build across the country.
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Washington state has made affordable housing a focus in recent years, with hundreds of millions of dollars spent per year on construction. This year, lawmakers committed another $123 million for the state’s Housing Trust Fund, which is expected to help build or preserve 3,000 housing units. In 2025, they drove $760 million into affordable housing, mostly through that fund.
Lawmakers this year also passed legislation pushed by Gov. Bob Ferguson that aims to develop housing in commercial and mixed-use zones, like strip malls and vacant properties.
State officials estimated in 2023 that Washington would need 1.1 million new homes by 2044 to keep pace with projected population growth. About half of those would need to be affordable to residents making under half the area median income.
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