Sound Transit has announced the developer who will transform the empty lots next to the Federal Way light rail station.

The notice of intent to award will mean Federal Way’s own Multi-Service Center (MSC) will take over the project in partnership with Shelter Resources Inc. (SRI).

The two organizations also partnered on the Redondo Heights project, which opened in 2025 and added 334 units of workforce housing. The organizations have “over two decades of experience working together to develop affordable housing in the Puget Sound region,” according to the announcement from Sound Transit.

Their proposal includes approximately 230 homes across two buildings, according to Sound Transit.

The majority of these homes will be two-, three- and four-bedroom units in order to support the community’s need for housing accessible for families in the city.

Community resources and services in partnership with South King County organizations also feature in MSC and SRI’s proposal.

This would include “a cafe led by Project Feast, a local nonprofit that serves refugees and immigrants through food-focused programming,” as well as a commercial kitchen in partnership with FUSION, a Federal Way-based nonprofit that provides housing and support services to families experiencing homelessness, and a childcare facility of some kind.

“We are thrilled about this new project and the opportunity to partner with community-focused organizations like Sound Transit, the Federal Way Chamber of Commerce, city of Federal Way and others as we envision a vibrant Federal Way downtown,” said MSC’s Chief Operating Officer Amanda Santo in a press release. “We envision a space that provides housing for families with easy access to transit, and also a community hub of resources, partnerships, and activities that support a thriving community for all.”

The affordable housing development is just another aspect of a broad plan to develop and invigorate Federal Way’s downtown core, with the latest update including a plan for Town Center 3.

Agency staff will now begin negotiating key business terms with MSC and SRI, which are anticipated to be brought to the Sound Transit Board for approval in 2026. MSC and SRI aim to break ground on the project in 2028, according to Sound Transit.

There are four total parcels of “transit oriented development” land next to the light rail station in Federal Way and plans have not been finalized yet about what those will look like.

Local support has been growing for a proposal from an organized group of Federal Way community members who have formed a nonprofit to work toward creating a public market.

While the city already has a seasonal farmers market, this vision would be for a year-round, permanent public market that would be a hub for cultural and community celebrations, economic development and small business incubation as well as a celebration of the diversity of the city.

The group completed a feasibility study for the project this summer.