HSD was created by the Washington State Legislature in 2007 as the first community preservation and development authority in the state to respond to impacts from ongoing construction of major public facilities, public works, and capital projects in both neighborhoods. It is governed by a board of directors with representation from a broad range of stakeholders from both neighborhoods- business interests, residents, arts organizations, non-profits, history and culture and local government.

HSD has used an initial allocation of funding from the Legislature to support a wide variety of projects in both neighborhoods. Projects range from park and public space improvement and activation to neighborhood marketing and technical assistance. HSD’s recent focus has been on projects that address issues affecting both neighborhoods.