$47M Investment Enables 3,000+ New Affordable Housing Units

TL/DR -

The Washington State Department of Commerce has announced $47 million in funding for infrastructure improvements to support 43 construction projects, which will provide over 3,000 units of affordable housing across the state. The state is projected to require 1.1 million new housing units over the next 20 years, and these grants aim to reduce per-unit connection fees for improvements to municipal systems like sewer, water, and stormwater. Eleven of the projects will encourage homeownership through the community land trust model, and a second round of funding is expected to open in fall 2024 with $12.7 million available.

Washington State Department of Commerce Announces $47m for Infrastructure Improvements

Today, the Washington State Department of Commerce declared $47 million in funding to support 43 construction projects, providing over 3,000 units of affordable housing statewide. This commitment forms part of the state's plan to meet the projected need for 1.1 million new units over the next two decades.

Impact of Connecting Housing to Infrastructure Program Grants

These grants play a critical role in the reduction of per-unit connection fees, facilitating area-wide improvements to municipal sewer, water, and stormwater systems. Support is also provided for subterranean infrastructure, including water and sewer pipes, and to recoup system infrastructure charges incurred by housing developers.

"Our economy depends on addressing the affordable housing shortage in Washington state. These grants help spark construction of units for the most in need," expressed Commerce Director Mike Fong.

Supportive Housing Projects

Many of the projects receiving funds will offer supportive housing for individuals and families at risk of homelessness. Since 2021, Commerce has invested over $88 million in CHIP funding, leading to the creation of over 7,800 affordable housing units.

Encouraging Homeownership

Eleven developments aim to promote homeownership, utilizing the community land trust model. This model enables occupants to purchase the home while the land is maintained in a common trust, offering long-term financial stability for low-income households.

Director Fong emphasized the value of such programs, stating that "the community reaps the benefits of reduced housing insecurity and increased stability."

Samya Lutz, Housing and Services Program Manager for the City of Bellingham, highlighted the impact of these grants, stating, "Our partnership with Commerce has facilitated the development of over 300 multifamily housing units."

Future Funding Rounds

A second round of grant applications is expected in Fall 2024, with $12.7 million available. Applications will be evaluated on criteria such as affordability, project readiness, and alignment with growth management principles. For more information, visit the Commerce's CHIP webpage.

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