The Washington State Department of Commerce and state trust funds are contributing financially to build more housing in Renton.
The Department of Commerce recently announced $54.5 million in grants to help create 4,517 affordable housing units across the state. In Renton, $1 million in state funding will go toward Willowcrest Townhomes Phase II.
The city applied for the Connecting Housing to Infrastructure Program (CHIP) grant on behalf of the developer, Homestead Community Land Trust.
Located at 1132 Edmonds Way NE, Willowcrest Phase II is an affordable homeownership project in the Sunset neighborhood consisting of 19 townhomes for people with incomes at 60% of the Area Medium Income (AMI) or less.
“The CHIP grant assists developers of affordable housing in offsetting the costs associated with utility construction, such as sewer, water, and stormwater improvements,” Renton Planning Director Matt Herrera said. “The pool of money comes from the state and the city administers and manages the grant.”
The city also contributed $900,000 to the project from the city’s HB1590 fund, which will be set aside for construction costs associated with three of the townhomes within the development for families that are homeless.
The “townhome-style units” will be comprised of two- and three-bedroom layouts and have a similar aesthetic and size to the Phase 1 portion, east of the site. The housing’s construction is projected to be completed this year.
Additionally, St. Stephen Housing Association will be awarded $1 million for the Steele House from the state’s Housing Trust Fund. The nonprofit organization is building a rental project consisting of six townhomes for families who are homeless and with incomes that are 60% AMI or less, located near 3001 NE 16th Street. The city of Renton also awarded the project developer $500,000 from the city’s HB1590 fund.
“The city’s funding was the first significant funding source for Steele House, and St. Stephen Housing Association was able to use those funds for early design and permitting work as well as leveraging the grant to obtain additional funds from other agencies,” Herrera said.
This was one of 47 awards from state and federal Housing Trust Funds that will help finance affordable housing construction and rehabilitation in 19 counties in Washington. The $208.3 million in state and federal funding will result in 2,461 units of affordable housing statewide.
The state projects needing 500,000 new homes by 2044 to keep pace with anticipated population growth.
“We urgently need more affordable housing all across Washington,” Gov. Bob Ferguson said. “My administration is taking action to address our affordable housing crisis.”
CHIP helps to increase housing supply by offsetting costs that could otherwise stall affordable housing development. Projects receiving CHIP funds must include at least 25% of new units as affordable for low-income households, or those earning less than 80% of area median income.
“These awards represent a smart, coordinated investment in housing and infrastructure,” Interim Commerce Director Sarah Clifthorne said. “By connecting infrastructure funding directly to housing development, we’re reducing upfront costs, accelerating construction timelines, and enabling jurisdictions across Washington to support the development of more affordable housing for the people who need it most.”
