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HomeMy WebLinkAboutOHT Chimacum Commons $375,0001 APPLICATION Funding for: HOMELESS RESPONSE SYSTEM OPERATIONS AND HOMELESS AND AFFORDABLE HOUSING DEVELOPMENT PROJECTS Application Proposals must be RECEIVED by: 10/16/26 at 4:00 PM Section 1: Applicant Information 1.1 APPLICANT INFORMATION Name of Project or Program: Chimacum Commons Area of County to be Served: Jefferson County Total Amount of Operating Funds Requested: N/A Total Amount of Development Funds Requested: $375,000 HMIS Project Number (if applicable): N/A Name of Agency/Applicant: Olympic Housing Trust Federal Tax ID: 61-1497176 Contact Person: Kathy Morgan Title: Executive Director Address: PO Box 1537 City: Port Townsend State: WA Zip: 98368 Phone Number: 360-531-2555 Fax Number: Email: Kathy@olympichousingtrust.org 1.2 CERTIFICATION Certification by Authorized Agency Representative (Board President, CEO, or another person authorized to bind the agency in a contract). Name of Authorized Agency Representative: Kathy Morgan Title: Executive Director ● Applicant certifies that these funds will be used as described in this application unless a change has been mutually agreed upon between Contractor and Jefferson County Board of County Commissioners. Substantive amendment requests will also require the approval of the Housing Fund Board (HFB). ● Applicant certifies that the information in this application is true and correct. ● Applicant certifies that it has no outstanding obligations to the County with respect to housing funds. ____________________________________________________ 10/14/2027 Signature of Authorized Agency Representative Date 2 1.3 PROJECT DESCRIPTION 1. Name of Project or Program: Chimacum Commons, Phase I Rental Housing 2. Total Amount of Funding Requested: $375,000 in 1590 Affordable and Supportive Housing Development Funds 3. Provide a brief description of the project or program: Chimacum Commons is a collaborative project of Olympic Housing Trust (OHT), a community land trust, and Jefferson Land Trust, located on 16 acres of historic farmland in the heart of Chimacum. Phase I will construct 16 permanently affordable single-room rental units with shared kitchens and gathering spaces, serving low-income working households in Jefferson County earning 30–50% of area median income (AMI), with a set-aside for local farm and food system workers. The homes are built with stabilized rammed earth (SRE) and meet Evergreen Sustainable Development Standards, delivering durability, fire resistance, and low long -term operating costs. The plat for the site, a Planned Rural Residential Development (PRRD) that includes a new access road from Chimacum Corner Farmstand, has been submitted to Jefferson County, with approval anticipated by December 31, 2026. The requested $375,000 will pay Phase I construction costs and serve as the local community match for Washington State Housing Trust Fund dollars. With these funds in place, construction will begin in the first quarter of 2027, within this grant’s period of performance. Phase II will add homeownership opportunities consistent with OHT’s community land trust model. 4. Identify the specific eligible use(s) under 5386 and/or 1590 for which the Project or Program qualifies, as listed in sections 1.3 and 1.4 of the RFP. If you are submitting for both operating and development funds, please submit separate budgets for each. a. 5386 Operating Funds: Not applicable. b. 1590 Development Funds: Section 1.3(1)(a), constructing affordable housing solely for eligible households. All 16 Phase I units will be income-restricted to households at or below 50% AMI, below the 60% AMI threshold. OHT’s tenant selection plan will give priority to income- eligible households within the populations listed in RFP Section 1.3(4), including veterans, persons with disabilities, persons with mental illness, senior citizens, and domestic violence survivors, including within the farm and food worker set-aside. c. 1590 Operating Funds: Not applicable. Section 2: Approach (10 Points) 1. Specify the project or program goals and expected outcomes. (2 point) 3 Goal: Create stable, dignified, permanently affordable rental housing for low-income working households in Jefferson County, including local farm and food system workers who are essential to the region’s agricultural economy but often lack safe, year-round housing. Expected outcomes: ● PRRD plat approval by December 31, 2026. ● Construction starts in Q1 2027, with 1590 funds fully drawn for construction costs within the 2027 period of performance. ● 16 new permanently affordable rental units completed by December 2026. ● Full lease-up within 90 days of certificate of occupancy, with 100% of households at or below 50% AMI and 8 units set aside for local farm and food system workers, 8 for low-income population. ● Reduced housing and transportation cost burden for tenants living near their workplaces. ● A replicable model for small-scale, community-based rural rental housing in Jefferson County. 2. Briefly describe how the project aligns with and contributes to the priorities, goals and actions of the 2025-2030 Jefferson County Homeless & Affordable Housing Services Plan. (2 points) The 2025–2030 Plan, adopted by Jefferson County and the City of Port Townsend in December 2025, recognizes every rung of the housing continuum as essential to addressing homelessness and housing instability. It documents that the county’s renters earning under $50,000 shrank by 1,116 people (32%) between 2016 and 2023, and that roughly 8,400 new affordable units will be needed over the next 20 years. Chimacum Commons responds directly by adding 16 permanently affordable rental units in the county’s rural core, where affordable rentals are nearly nonexistent. The project advances the Plan by: ● Increasing the supply of permanently affordable housing for households below 60% AMI. ● Preventing homelessness among low-wage and seasonal workers who face overcrowding, displacement, or loss of housing during the off-season. ● Housing people in a stable setting that meets their needs, through long-term leases and shared community space. ● Using a community land trust structure that keeps units affordable permanently, protecting the public investment. 3. Describe any collaborations that informed the development of this project, including participation in Housing Fund Board and Continuum of Care activities. (2 points) Chimacum Commons has been a partnership between OHT and Jefferson Land Trust since 2023. Jefferson Land Trust provides site control through a lease and will donate the land upon full funding. Together the partners secured a Department of Commerce Capacity Building, Outreach and Support (CBOS) grant that funded predevelopment. OHT has worked closely with Jefferson County DCD through preliminary land use approval and submittal of the PRRD plat, and with neighbors including Chimacum Corner Farmstand to establish the project’s new access road. Local farmers, food businesses, and community members shaped the project through meetings, surveys, and public discussions. 4 Olympic Housing trust took part in the homeless task force and fund board meetings since the beginning. 4. Describe the engagement and participation of lived experts in this project’s development. (2 Points) The project’s design grew out of conversations with local farm and food system workers who have lived through unsafe, overcrowded, or seasonal-only housing. With meeting, charlottes, phone calls OHT has interviewed over 150 farm workers and farmers in Jefferson County Their input shaped key features of Phase I: single-room units with shared kitchens to keep rents low, year-round leases not tied to a single employer, and a location within walking or biking distance of farms and services. During lease-up, OHT will meet with residents’ advisory group of tenants and workers with lived experience of housing instability to inform tenant selection criteria, house agreements, and Phase II design. 5. Provide a brief description of expertise and/or recent, relevant and successful experiences in delivering similar programs and/or projects, including ability, stability and resources to implement this project or program. (2 points) OHT is a 501(c)(3) community land trust serving Jefferson and Clallam Counties. OHT developed the Dundee Hill Community Homes in Port Townsend, five permanently affordable townhomes now nearing construction completion, and stewards four scattered-site homeownership units in Clallam County. Executive Director Kathy Morgan brings more than 30 years of Washington housing experience, including 16 years as Director of Housing and Community Development at OlyCAP. The development team, architect, engineers, and contractor for Chimacum Commons are in place. In the prior cycle, the HFB awarded OHT $190,000 for this project. Because PRRD plat approval was not yet complete, OHT returned the funds unspent rather than hold them idle. The plat has been submitted, and this request is timed so construction, and use of the funds, begins in Q1 2027. OHT’s Housing Trust Fund application for the project reached Tier 1 in the prior round, and OHT is reapplying. Section 3: Impact (10 Points) 1. What services will be funded? This request funds construction of 16 permanently affordable rental units, not services. Shared kitchens and gathering spaces support informal connection and mutual support among residents, and off-site professional property management is budgeted in the operating pro forma. 2. How many individuals by demographic will be served by these funds? Describe how this project supports the original target group or income level of your organization. (2 points) 5 Phase I will serve approximately 16–20 individuals at full occupancy, all at or below 50% AMI: 8 units at or below 30% AMI and 8 units at 31–50% AMI, with 8 units set aside for local farm and food system workers and priority for populations listed in RFP Section 1.3(4). OHT’s mission is permanently affordable housing for Jefferson and Clallam County households priced out of the local market. Phase I extends that mission to deeper affordability for renters at 30–50% AMI, while Phase II returns to OHT’s core permanently affordable homeownership model. 3. How does this project serve marginalized populations and address risk of harm and barriers to housing stability? What is your plan for continuous improvement in serving historically underserved populations? (2 points) In Jefferson County, low-income workers, including seasonal and year-round farm workers, face near-zero vacancy and intense competition for often substandard rentals. Many rely on employer-tied or seasonal arrangements that end when the work does. Chimacum Commons removes those barriers with permanently affordable, year-round leases not tied to any one employer, located in the rural community where tenants work. OHT and Jefferson Land Trust will continue to engage local employers, the food system workforce, service providers, and community organizations to understand housing needs and barriers. Tenant experiences, partner feedback, and occupancy outcomes will info rm adjustments to leasing, outreach, and Phase II design. OHT is committed to equitable access, including, multilingual application materials and outreach through trusted community partners. 4. Specify the measures of success by which the project or program will be assessed. (2 points) ● PRRD plat approved by December 31, 2026; construction begins Q1 2027. ● 1590 funds expended on eligible construction costs within the 2027 period of performance, documented in mid-year and closeout reports. ● Construction completed on schedule and within budget. ● Lease-up within 90 days; occupancy of at least 100% thereafter. ● 100% of households at or below 50% AMI; tenant rent no more than 30% of household income. ● Tenant retention of at least 85% at 12 months; annual tenant satisfaction survey. 5. How would the project contribute to positive movement in Commerce’s Homeless System Performance Measures, including total project entries, length of time homeless, exits to permanent housing, returns to homelessness, and system prioritization? (2 points) Chimacum Commons adds 16 permanently affordable units for households at or below 50% AMI who are at risk of homelessness because of Jefferson County’s high housing costs and low rental availability. Stable, affordable housing reduces the number of people entering homelessness, shortens periods of housing instability, and lowers returns to homelessness. Though not designed as shelter, the project relieves pressure on emergency and transitional housing resources and creates permanent-housing exit options. For years many of the farm workers have been counted as homeless in the annual homeless count. 6 6. For operations programs, how does the proposed project or program demonstrate the following priorities: Preservation of existing services and/or providing services to underserved populations and/or populations not served in the same way elsewhere? (2 Point s Operations funding only) Not applicable; capital development request. 7. For capital development projects, how does the proposed project demonstrate “serving the greatest need” as identified in Appendix D, Prioritization Criteria of Homeless Housing Capital Projects, in the 2025-2030 Jefferson County Homeless & Affordable Housi ng Services Plan. The list of populations shown as serving the greatest need is not prioritized. (1 point Capital Project funding only) Chimacum Commons serves households at or below 50% AMI who are at risk of homelessness due to seasonal or low-wage income, in a rural part of the county with almost no affordable rental housing. 8. For capital development projects, how many new units will be brought online? How many existing units will be preserved? (1 point Capital Project funding only) Phase I will bring 16 new permanently affordable rental units online. No existing units are preserved. Phase II will add approximately 12 more bedrooms, including homeownership opportunities, for about 30 individuals housed at full buildout. Section 4: Budget (10 Points) 4.1 FINANCIAL READINESS (2 points) 1. Is the Project or Program ready to use the funding now or are there actions to be taken before the Project or Program can begin? If so, what are those actions? Yes. The project will be ready to begin construction in Q1 2027, at the start of the period of performance. OHT holds site control through a lease and partnership with Jefferson Land Trust, with the land to be donated upon full funding. Preliminary land use approvals are complete with Jefferson County DCD. The PRRD plat, including a new access road from Chimacum Corner Farmstand, has been submitted, with approval anticipated by December 31, 2026. Construction documents are engineered and prepared to 90% completion, and stabilized rammed earth is approved in Jefferson County and under the International Building Code. The development team and contractor are ready to mobilize. Remaining actions before construction: PRRD plat approval, building permit issuance, and closing on the Housing Trust Fund award 1st quarter of 2027. 2. What other funds, donors, or community support are involved with the project? Identify other sources of funds that would be leveraged with the requested funds and/or how these funds will be used to leverage other funds. Predevelopment was funded largely by the Commerce CBOS grant ($197,500) secured with Jefferson Land Trust, and Jefferson Land Trust is donating the land. OHT is reapplying to the 7 Commerce Housing Trust Fund Multifamily program and pursuing a Commerce EPIC Clean Energy grant and Olympic Housing Trust is matching up to $285,000. Volunteer labor and donated materials will further reduce costs. The 1590 funds serve as the local match for state funding, along with OHT matching leverage HTF award. 3. Will the requested funds, including funds from other sources, fully fund the Project or Program? If not, how does the organization intend to fill the gap? Yes, together with the other sources shown in the Funding Sources table, the project is fully funded with no gap. The $375,000 request is about 12% of the total development cost. If any source comes in lower than projected, OHT will close the difference through expanded campaign and foundation asks and through volunteer labor and donated materials. 4. Describe your staffing plan for this project including how many people will be assigned to do this work and their availability? Will this project require new hires? Kathy Morgan, Executive Director, leads the project as developer’s representative 80%. Matson Contardo and new hire for our philanthropy and grants manager leads the capital campaign and funder relations 100%. Architect, engineers, and our project supervisor Brent Bellamy, with off- site property management provided by OHT, Volunteer construction coordination: Matson Contardo 1 new hire will be for property manager/ homebuyer steward to be place by 12/2027 4.2 FINANCIAL SUSTAINABILITY (2 points) 1. For capital development projects, how are the requested funds matched by operating funds going forward? Specify the degree of matching support. No 1590 operating funds are requested. In Year 1 of the 15-year pro forma, effective gross income of $151,620 (tenant rents of $109,440, rental subsidy of $20,160, operating subsidy of $15,000, and an OHT contribution of $15,000, less 5% vacancy) covers $86,280 in operating expenses and reserves, including $5,600 to the replacement reserve and $6,700 to the operating reserve. 2. Briefly describe your plan for financial sustainability of the Project or Program. The community land trust model keeps the units affordable permanently; stabilized rammed earth construction and efficient mechanical systems keep maintenance and energy costs low; and the pro forma maintains positive cash flow and funded reserves throughout the 15-year projection, see attached pro forma. 4.3 SCALABILITY (Non-scoring question) 1. Is the Project or Program scalable if all funding requested is not recurred? How would the Project or Program be impacted? This is a one-time capital request and does not depend on recurring 1590 funds. If the HFB awards less than $375,000, OHT would increase campaign and foundation asks to cover the difference, and the award would still serve as local match. Site infrastructure and shared 8 systems are designed for the full 16-unit buildout, so reducing units would raise the per-unit cost rather than lower the total. 4.4 REQUIRED ADDITIONAL DOCUMENTS (2 points) Please attach the following items along with your RFP Application submission. Applications without these documents may be deemed incomplete. 1. Please attach a current operating budget for the organization requesting the funding. Attached (OHT operating budget]. 2. Also, if your organization is an HMIS participant, please attach a copy of your 2026 Annual Expenditures Report to Commerce. Not applicable; OHT is not an HMIS participant. 4.5 CAPITAL PROJECTS BUDGET (4 Points Capital Project funding only) 1. Budget Capital Budget for Real Estate Development Uses Financing Categories Estimate Basis of Estimate Total Acquisition Costs $0 Land donation from Jefferson Land Trust Construction $3,197,694 All construction, site work, infrastructure and sales tax, without volunteer discount. Construction Fees $348,000 GC overhead and profit Financing Fees and Charges $47,000 Housing Trust Fund MF deferred loan program Guarantees and Reserves $248,200 7% contingency Developers Fee $379,000 10% of hard costs Soft Costs $266,804 Architecture, engineering, staff project management, etc. Other Development Costs $50,802 Insurance, audit, permitting, etc. Subtotal $4,537,500 TOTAL $4,537,500 9 2. Funding Sources Financing Categories Estimate Indicate if Committed or Application has been made. If not made indicate date application is to be submitted Private Loan $0 Jefferson County Funds $375,000 1590 Development Funds, this application (2027 funds) Public Sources (State or Federal Funds) $3,617,500 Commerce Housing Trust Fund MF deferred loan $3,300,000, reapplying 9/2026 Commerce CBOS grant $197,500, awarded; Commerce EPIC Clean Energy grant $120,000. Foundations $75,000 Donations $470,000 Capital campaign, OHT will match of up to $285,000 Low Income Housing Tax Credits (indicate 9% or 4%) $0 Historic Tax Credits $0 New Market Tax Credits $0 Gap (if any) $0 TOTAL $4,537,500 3. Narrative: Please include any budget narrative that is descriptive or helpful to explain any part of your proposed expenditures in your capital budget(s). Total development cost is $4,537,500, or about $283,600 per unit, including construction, roads, septic, architecture, and permits. The County’s requested investment equals about $34,000 per unit. The budget excludes the substantial volunteer labor and donated materials central to the stabilized rammed earth build, so actual cash costs are expected to come in lower. No administration fee is charged to these capital funds. The larger 1590 request and $470,000 capital campaign reduce the Housing Trust Fund loan needed and demonstrate a deeper local commitment. 4.6 PROGRAM OPERATING BUDGET (4 points Operating funding only) Not applicable; capital development request. No operating funds are requested.