Grants for below-ground infrastructure, reimbursements for waived development fees will support 24 projects resulting in 1,800 new affordable units

OLYMPIA, WA – On Jan 30th, Gov. Bob Ferguson and the Washington State Department of Commerce announced $14.6 million in grants to support shovel-ready housing projects that will create more than 1,800 affordable units in 10 counties. These awards represent the latest round of the state’s Connecting Housing to Infrastructure Program, referred to as CHIP. The competitive program pays for below-ground infrastructure — such as water and sewer pipes — and reimburses waived development fees typically associated with new housing construction.

The grants will support projects ranging from affordable housing for seniors to permanent supportive housing for people experiencing chronic homelessness.

Ferguson named housing affordability among his top priorities. Ferguson committed to putting Washington on the path to building 1.1 million housing units in Washington over the next 20 years.

In his inaugural address, Ferguson said, “Washingtonians need more housing — lots more housing. We must make it easier, faster and less expensive to build housing of all kinds.”

CHIP helps do exactly that, reducing the costs of development for projects that offer affordable options for people who need them most. Many of the two dozen awarded projects announced on Jan 30th, will provide housing support for people experiencing or at risk of homelessness.

“These grants remove barriers for projects that will help us meet our ambitious goals for building much needed housing in Washington,” Ferguson said. “The Connecting Housing to Infrastructure Program has already resulted in thousands of new units of housing, making our state more affordable for more people.”

Commerce Director Joe Nguy?n knows first-hand the life-changing impact of a stable, affordable home. He grew up in public housing in King County.

"The Connecting Housing to Infrastructure Program does more than put pipes in the ground,” Nguy?n said. “These grants build the foundation for opportunity, security and hope for thousands of Washingtonians, reflecting our commitment to ensuring that everyone, regardless of income, has access to a home they can afford.”

The demand for new housing is staggering: Washington is projected to need to add more than 1 million homes by 2044 to keep up with anticipated population growth. Of those, half will need to be affordable to those earning less than 50% of area median income. Commerce recently reported that more than half of Washingtonians are rent-burdened — meaning they spend at least 30% of their monthly income on rent.

Past projects that benefited from CHIP grants include tiny homes for homeless veterans, senior housing, and modestly designed single-family homes that will remain affordable in perpetuity through a community land trust.

The grants vary from $200,000 to $2.3 million, consistent with the scale of each development. The counties who will benefit from the awards announced on Jan 30th, include King, Pierce, Spokane, Clark, Whatcom, Cowlitz, Kittitas, Jefferson, Island and Asotin.

See the list of awarded projects

Gov. Ferguson’s actions to address the housing crisis

Affordable housing and meeting Washington’s demand for new housing is among Ferguson’s top priorities. Shortly after his inaugural address, Ferguson signed Executive Order 25-02, directing state agencies to review all regulations that impact housing, permitting and construction and identify any provision that can be streamlined, deferred or eliminated. The goal is to remove barriers to build more affordable housing units faster.

Additionally, Lt. Governor Denny Heck presented Ferguson with a 42-page report containing 20 recommendations to address the housing crisis. These included many that reflect ongoing legislative e?orts to expand transit-oriented development, protect vulnerable renters and small landlords, and give local governments tools and incentives to improve housing supply and a?ordability.

Adopting these recommendations is one of Ferguson’s top priorities.

Quotes from local officials around the state

Already, grantees are talking about what these funds mean in their communities:

- Greg Brotherton, chair of the Jefferson County Board of Commissioners: “This award helps Jefferson County move the needle on affordable housing in a real and tangible way that has remained a struggle in our rural county – developing the infrastructure that will facilitate the density that is needed to turn the tide on the housing crisis. We will not be able to work our way out of this housing crisis with single-family homes. Especially in rural areas such as Jefferson County, we need the density that urban infrastructure affords. This grant allows us to grow.”

- John Moon, executive director of Habitat for Humanity in Whatcom County: “The award enables Habitat for Humanity to serve more of the poorest Whatcom County residents than originally contemplated, specifically those earning 30-50% area median income. It's in the best interests of our community that costs associated with providing and improving public infrastructure be supported more broadly by awards such as this, thereby lessening the financial burden for low wage earners.”

- Allison Snow with Horizon Housing Alliance, developers of Clarkston Family Haven:
“This CHIP funding significantly enhances Clarkston’s ability to provide affordable housing by supporting essential utility infrastructure necessary for the completion of Clarkston Family Haven. These improvements not only ensure that this project can move forward, but also set the stage for future development in the area, fostering continued growth and expansion of affordable housing options in the community.”

These additional awards bring total CHIP investments to nearly $98 million since 2021, contributing to more than 9,500 affordable housing units. Commerce recently highlighted some of the innovative projects bolstered by the CHIP in its brief history.

These awards effectively expend the available funding allocated for the CHIP in the last biennium. Future funding is contingent on appropriation in the 2025-27 State Capital Budget, now under consideration by the Legislature.

For more information on the Connecting Housing to Infrastructure Program, visit the Commerce website.