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Kirkland Heights Gets $125 Million Facelift, Packs In 96 More Affordable Homes

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Published on June 01, 2026
Kirkland Heights Gets $125 Million Facelift, Packs In 96 More Affordable HomesSource: Google Street View

Kirkland Heights, a long-standing affordable housing complex in Kirkland’s Kingsgate neighborhood, has wrapped a roughly $125 million makeover that keeps existing residents in place while adding dozens of new homes for low-income renters. The overhaul bumps the property to 276 income-restricted apartments and refreshes the site with new common areas, more family-sized units and a suite of sustainability upgrades. The King County Housing Authority and partners officially cut the ribbon at a grand-opening celebration last Thursday.

What Changed at Kirkland Heights

The redevelopment rehabbed the original 180 apartments and created 96 additional units by adding third floors to several existing eight-plex buildings and constructing two new 24-plex structures, according to the King County Housing Authority. The revamped property now features a new community building, upgraded playgrounds and improved stormwater systems, along with modern appliances intended to ease monthly utility costs for residents. “Kirkland Heights tells a powerful story about what it means to preserve community,” KCHA President and CEO Robin Walls said in the agency’s announcement.

How the Project Was Financed

The roughly $125 million construction package relied on a mix of 4% low-income housing tax credits, renewable energy tax credits, tax-exempt bonds and both public and private equity, as reported by the Puget Sound Business Journal. Local and regional partners, including King County, ARCH (A Regional Coalition for Housing) and tax credit investors, helped fill the funding stack, while the City of Kirkland chipped in by waiving impact fees to keep the project moving.

Builder, Timeline and Operations

The primary construction contract went to Allied Construction Associates. The Daily Journal of Commerce reported that the firm secured a roughly $99.07 million agreement to renovate multiple buildings and add new ones on site. The multi-year redevelopment rolled out in phases after KCHA acquired the property, with construction sequenced so most families could stay in their homes while the work proceeded, according to the housing authority. With the dust settled, Allied Residential is set to operate the completed community.

Design Choices Aimed at Lowering Costs

Project designers leaned heavily on efficiency and renewable energy in an effort to keep Kirkland Heights affordable over the long haul. A large solar installation, centralized water-heating systems and EV charging infrastructure were all built in from day one, according to a KCHA case study shared with the Housing Development Consortium. That case study also outlines a $3.4 million solar contract and the installation of dozens of EV charging stalls, features that are intended to cut common-area utility expenses and trim resident bills over time. Project leaders say those systems should help keep monthly housing costs more predictable for tenants.

Why It Matters for Kirkland

Holding on to income-restricted housing, and adding more of it, in a high-cost Eastside market has become a central goal for regional planners, and Kirkland Heights is being held up as a case study in how to do that without widespread displacement. City planning documents flag the complex as a major, phased renovation effort in the Kingsgate area, and housing advocates note that the extra apartments, many large enough for families and backed by project-based vouchers, widen the options for households increasingly priced out of the surrounding rental market. Local officials at the opening characterized the project as a model for keeping long-time residents rooted while still making room for new neighbors.

With construction complete, KCHA and its partners say the focus now shifts to resident services, leasing up the new units and tracking how the sustainability systems perform in real-world use. For anyone following affordable housing efforts on the Eastside, Kirkland Heights now stands out as one of the larger preservation-plus-expansion projects to reach the finish line in recent years.

Seattle-Real Estate & Development