The Washington State Department of Commerce (WSMA) is accepting applications for its Connecting Housing to Infrastructure Program to support the development of affordable housing by paying for water, sewer and storm water utility improvements and/or waived system development charges for new affordable housing units.
Donor Name: Washington State Department of Commerce
State: Washington
County: All Counties
Type of Grant: Grant
Deadline: 10/31/2023
Size of the Grant: $2,000,000
Details:
The Connection Housing to Infrastructure Program (CHIP) was created in 2021 to fund utility improvements for affordable housing. The goal is to help build more housing units more quickly, by covering upfront costs of infrastructure and connecting housing to municipal systems.
The program also helps local governments reduce per unit connection fees, which are used to pay for area-wide improvements to water or wastewater systems. When utilities reduce these connection fees for affordable, multifamily, or infill projects, it can help encourage development of more of these housing options, which tend to be more affordable and make more efficient use of costly infrastructure.
Specifically, CHIP can pay for:
- Onsite water, sewer and stormwater improvements for the housing development
- Offsite water, sewer, and stormwater improvements in the right-of-way, connecting to the development
- Waived system development charges for the project.
Funding Information
- A total of $55.5 million is available.
- Grant awards are a maximum of $2,000,000 per project. No match is required, but the applicant must demonstrate that all funding to complete the affordable housing project is committed prior to contract execution.
Period of Performance
Projects funded with State Building Construction Account funds may only be used to cover eligible costs incurred during the period of May 16, 2023 thru June 30, 2025, subject to re-appropriation by the Legislature.
Eligible Projects
Eligible project activities and costs include:
- Design, architectural, and engineering work;
- Building permits/fees;
- Archeological/historical review;
- Construction labor and materials;
- Construction management from external sources only17;
- Demolition/site preparation;
- Capitalized equipment for sewer, water, and stormwater projects;
- Landscaping; and
- Real property when purchased specifically for the utility project, and associated costs directly associated with property acquisition such as appraisal fees, title opinions, surveying fees, real estate fees, title transfer taxes, easements of record, and legal expenses.
Entities Eligible for Grant
Grants are available to local governments or public utilities located within a jurisdiction that imposed a sales and use tax under RCW 82.14.530(1)(a)(ii), 82.14.530(1)(b)(i)(B), 82.14.540, or 84.52.105. These include the following local governments or public utilities in the following jurisdictions.
Eligibility Criteria
Applications must meet the following requirements:
- The city or county must have imposed a sales and use tax for affordable housing.
- The new housing development must include at least 25% affordable units, which must have a strong probability of serving the target group for at least 25 years.
- Affordable housing must begin construction within 24 months of the grant award. Federal funds must be obligated by December 2024 and expended by December 2026; state funds have a tighter timeline.
- Where applicable, the extension for new drinking water, wastewater, or stormwater connections must be consistent with the approved comprehensive plans under the growth management act and must be within the established boundaries of the urban growth area.
For more information, visit WSMA.
