The Mt. Baker Housing Association began as a redevelopment project focused on the Mt. Baker Village Apartments in 1988. During the 1980's, this apartment complex suffered from poor maintenance and overcrowding. Although it had 180 apartments, it housed over 1000 people. Many of the residents were Southeast Asian refugees from Viet Nam and Cambodia. While the Mt. Baker community rallied to help the residents, the City of Seattle became increasingly concerned about the living conditions at the apartments. In 1987 the City began efforts to purchase the complex.

In March of 1988 the City purchased the property and sold it to the newly established Mt. Baker Limited Partnership. Rehabilitation began on the nine-building complex in November 1988, and was completed in April 1990. It now contains 144 units that range in size from one to four bedrooms. Residents pay 30% of their income as rent with the remainder subsidized under Section 8 of the Federal Housing Act.

The Mt. Baker Housing Association has since extended its charter, to include developing, owning and operating other low-income and affordable housing units in Southeast Seattle. Mt. Baker Housing also owns the Starliter Apartments and Crestwood Place in Rainier Beach, Orcas House in Columbia City and a development site near the Othello Light Rail station.