2023 HOME and National Housing Trust Fund (NHTF) – Washington

The Washington State Department of Commerce is currently accepting applications for its HOME and National Housing Trust Fund.

Donor Name: Washington State Department of Commerce

State: Washington

County: King County (WA)

Type of Grant: Grant

Deadline: 09/18/2023

Size of the Grant: 

• HOME Program: $4,867,377
• National Housing Trust Fund (NHTF): $7,539,822

Details:

Commerce’s HOME and NHTF funds will be used to provide financing and/or supplemental financing to eligible projects. Each program will target housing in eligible areas that is affordable to people who are at or below the specific program’s applicable income limits. In exchange for low‐cost permanent financing, property owners will agree to income, rent, and other restrictions for an affordability period of at least 15 to 30 years (depending on funding source and level). Projects are monitored for compliance during the affordability period.

Funding Information

• HOME Program
  • A total of $4,867,377 is expected to be available in federal HOME funding. Of this, $1,083,059 has been designated as CHDO Reserve funds – see below for additional detail regarding CHDO requirements
  • HOME funds will only be awarded to new construction, rental projects that meet the requirements.
  • HOME Community Housing Development Organization (CHDO) Reserve
    • In accordance with Federal Regulations, Commerce will award, to at least one project, a HOME CHDO reserve
    • If an applicant seeks:
      • HOME funds, and,
      • Intends to be certified as a CHDO for the purposes of the project
• National Housing Trust Fund (NHTF)
  • Approximately $7,539,822 is expected to be available from the NHTF
  • The NHTF is an affordable housing program to increase and preserve the supply of affordable housing for extremely low-income (ELI) and very low-income households (VLI). NHTF, established under Title I of the Housing and Economic Recovery Act of 2008, will be distributed through the U.S. Department of Housing and Urban Development (HUD) on a formula basis to the states. The Department of Commerce Multifamily Housing Unit (MHU) is the designated grantee of NHTF for Washington.

Geographical Areas 

These geographic categories are:

• Rural
• King County
• Urban (not King County)

Eligibility Criteria

Developers and owners of affordable rental housing – including nonprofit developers, public housing authorities, and Department-designated community housing development organizations (CHDOs) – are eligible to apply for HOME/NHTF funding subject to the program- specific limitations noted below:

• HOME
  • While public housing authorities are eligible to apply, public housing units supported by Public Housing Capital or Operating funds authorized by the 1937 Act are not eligible for HOME funding. Non-public housing units owned and developed by a public housing authority are eligible
  • CHDOs are a specific type of community-based nonprofit organization. The HOME program includes an annual set-aside of funds for projects owned, developed, or sponsored by CHDOs. Prior to committing funds, the Department will review the status of any organization seeking funds from the CHDO set- aside to ensure that it meets all HOME requirements, that it has sufficient staff capacity to carry out the project, and that the CHDO meets the requirements of “owner,” “developer,” or “sponsor”.
• NHTF
  • Unlike HOME, NHTF can be awarded to assist in the development of public housing units under limited circumstances. This includes:
    • NHTF funds may be used for new construction or rehabilitation3 of public housing as part of the Choice Neighborhoods (Choice) program under a HUD appropriation act, or for new public housing units that have been allocated and will receive low-income housing tax credits;
    • NHTF funds may be used for the redevelopment of existing public housing units in which the public housing assistance will be converted and used at the properties under the Rental Assistance Demonstration (RAD) program under HUD’s 2012 Appropriations or subsequent statutes;
    • The public housing units constructed using NHTF funds must replace units that were removed from a public housing agency’s public housing inventory as part of a Choice program grant, or as part of a mixed-financed development. The number of replacement units cannot be more than the number of units removed from the public housing agency’s inventory. The public housing units constructed or rehabilitated using NHTF funds must receive Public Housing Operating Fund assistance (and may receive Public Housing Capital Fund assistance). These units cannot receive operating cost assistance or operating cost assistance reserves from NHTF.

For more information, visit WSDC.