$47 million investment in affordable housing

OLYMPIA — The Washington State Department of Commerce announced $47 million in funding for infrastructure improvements Jan. 30 to support 43 construction projects that will provide more than 3,000 units of affordable housing statewide.

Washington state is projected to need 1.1 million new units of housing over the next 20 years. Connecting Housing to Infrastructure Program grants help local governments reduce per unit connection fees, which are used to pay for area-wide improvements to municipal sewer, water and stormwater systems. Grants pay for the below ground infrastructure, such as water and sewer pipes and to reimburse system infrastructure charges paid by housing developers.

“Addressing the lack of affordable housing in communities all across Washington is crucial to our economy. CHIP grants provide vital infrastructure to jump-start construction of units that will serve households most in need,” said Commerce Director Mike Fong.

Many of the awarded projects will also provide supportive housing for individuals and families experiencing, or at risk of, homelessness.

Commerce received 74 applications for a total of $79 million. With $55.5 million appropriated this biennium, demand significantly exceeded resources. Since 2021 and including these awards, Commerce has invested more than $88 million in CHIP funding, supporting the creation of over 7,800 affordable housing units.

Eleven of the developments are for projects to encourage homeownership. Most use the community land trust model, where the occupant purchases the home itself while the land is held in a common trust. The home can only be resold at a reduced price to another low-income household for a period of 25 years. These housing developments provide not only a safe place to live, but also an opportunity for families to build equity for long-term financial stability.