Amazon (AMZN) is not only open to online buyers.
Starting this week, affordable housing developers can apply for financial assistance from Amazon’s $1.4 billion pool of total capital of $3.6 billion. Home ownership fundsafter Washington Business JournalTo receive a share of the funding, both new and repeat applicants can submit project proposals via the Fund’s website.
The fund, launched in 2021, is designed to preserve more than 35,000 affordable homes in and around Arlington, Virginia, as well as Puget Sound in the Pacific Northwest and Nashville, Tennessee, per AmazonEach of these locations is an important office market for Amazon.
In June, Amazon increased its original $2.2 billion homeownership fund by $1.4 billion. With the latest funding, Amazon hopes to meet the need for 14,000 affordable homes by offering loans and grants at below-market rates.
Applications for the program are already coming in. An Amazon spokesperson told Business Journal that the Housing Equity Fund will review “each project on a case-by-case basis,” rather than region by region. It is unclear when a decision will be made.
However, according to a company statement, Amazon is particularly looking for applications that target communities with neighborhood services, public transportation systems, workplaces and amenities. In addition to public entities and nonprofit organizations, Amazon is also looking for underrepresented developers.
Once a project gets the green light from Amazon, the e-commerce giant will require the selected developer to adhere to the type of funding and keep rents affordable. The prices required must be capped at the affordability threshold for households earning between 30 and 80 percent of the area’s median income over the long term, the statement said.
“We created the Amazon Housing Equity Fund to preserve and create housing that will remain affordable into the next century and ensure families can stay in their communities for generations to come,” said Amazon CEO Andy Jassy said in an earlier opinion.
In recent years, the e-commerce giant has kept its word. So far, the Washington, DC metropolitan area has received around $1.1 billion in Amazon project funding for 9,400 units. In 2022 Amazon $24 million was provided for 122 affordable apartments in Strathmore Square in Bethesda, Maryland. The year before, Amazon’s Housing Equity Fund had provided loans and grants for Crystal House at Arlington 1900 South Eads Street. Barcroft Apartments at 130 South George Mason Drive in Arlington also received $542 million from the Housing Fund.
An Amazon spokesperson did not immediately respond to a request for comment.
You can reach Anna Staropoli at [email protected].
