HomeMy WebLinkAboutBriefing re CHIP grant JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Brent A. Butler, AICP, Chief Strategy Officer, Community Development
DATE: October 2, 2023
RE: Connecting Housing to Infrastructure Program (CHIP) Grant Briefing
STATEMENT OF ISSUE:
The Washington State Department of Commerce released a notice of funding availability("NOFA")under
their newly established Connecting Housing to Infrastructure Program ("CHIP"), which seeks to increase
the affordable housing through funding water, sewer, and/or stormwater connections. The grants are due at
the end of October 2023, and affordable housing construction must begin by December 2025. Based on the
CHIP details, several local projects may be competitively positioned.
BACKGROUND:
To receive a grant, CHIP requires that the applicant is a city, county, or public utility. The maximum award
amount is $2 million and no match is required.
Other requirements include:
1) Project delivers new affordable housing
2) 25% of the units affordable at 80% or less of the Area Median Income (AMI)
3) Funding to serve development is dedicated for water, sewer, stormwater connections, or right of
way extensions
4) Waived system development charges for affordable housing
ANALYSIS:
Identified projects that may qualify for funding include:
1) Habitat for Humanity's Mason Street Project
2) Bayside's affordable housing expansion adjacent to the Old Alcohol Plant
3) OlyCAP second phase of South Seven serving older adults
4) OlyCAP Caswell-Brown Village connection to City of Port Townsend sewer
5) Peter's Place so long as permanent supportive housing is included,
6) Chimacum Road Sewer connections to various projects so long as affordability is guaranteed for 25
years, including:
a. Garden Court Apartments (Peninsula Housing Authority)
b. Port Hadlock Motel (Bayside Housing)
c. BNR Mobile Home Court(spaces 39-77 serving ages 55+)
d. Hadlock Village Mobile Home Park
PROCESS - In September 2023, the Chief Strategy Officer met either in person or via telephone with
OlyCAP, City of Port Townsend staff, Chimacum-based farmers/farmworkers at Finnriver, United
Methodist Church, Bayside Housing, and the county Public Works' sewer team to discuss creative ways to
develop housing affordable to the local workforce.During these discussions,the Chief Strategy Officer
sought to understand local developers' near and medium-term objectives and ongoing projects with the
goal of identifying zoning barriers and removing them through an update to the Port Hadlock UGA zoning
and development regulations. In this process, we recognized an opportunity to implement Comprehensive
Plan Goal HS-G-1, namely, "Encourage and support efforts to increase housing availability for county
residents of all income groups of ensuring the availability of a range of housing. "
Given the short timeline to access CHIP grant funds and recognizing how other governments create
equitable and transparent processes through the use of a NOFA, three approaches were drafted, as set forth
below.
Approach 1 —Notice of Funding Approach 2—Direct Contact with Approach 3—Hybrid
Availability (NOFA) - An equitable Local Developers -Jefferson (NOFA and Direct
process may be to advertise that County could reach out to Contact) -The county
Jefferson County seeks to support affordable housing developers to could reach out to eligible
applications by affordable housing determine if any of them would be developers while also
developments in an amount not to interested in partnering. issuing a NOFA.
exceed $2 million and to invite
applications.
FISCAL IMPACT:
Either grant would be budget neutral as no match is required. The Chief Strategy Officer would need to
reach out to various developers and determine which projects would most likely succeed based on the
CHIP program guidelines. This outreach will consume approximately 40 hours.
RECOMMENDATION:
Listen to the staff presentation and provide guidance. Given the short timeline between this regular session
and the grant deadline, staff recommends adopting approach number 3.
REVIEWED BY:
Mark McC 1 , County Administrator at-'