During a recent government meeting, officials discussed the Washington State Department of Commerce's Connecting Housing to Infrastructure Program (CHIP) grant application, which aims to support affordable housing development. Originally initiated in 2021, the program was reauthorized by the governor in 2023, with a funding allocation of $55 million.

The CHIP program provides grants and deferred loans to local governments and public utility districts for system development charges and utility improvements related to new affordable housing projects that benefit low-income households. The initiative is designed to stimulate the construction of affordable housing in communities.

Island County has awarded the Opportunity Council and Shelter Resources a grant for the Mulberry Village Project, an 80-unit multifamily affordable housing development located in Swan Town. This project will feature a mix of one, two, and three-bedroom units, along with a community building. The estimated cost for the necessary utility infrastructure is around $2.5 million, with the CHIP grant potentially covering up to $1 million of that expense.

The city will act as the granting agency if the funding is awarded, overseeing the project and ensuring compliance with federal regulations. The Opportunity Council will serve as a subrecipient, responsible for managing the project and seeking additional funding sources to cover the remaining costs.

No matching funds are required for the CHIP grant, but the Opportunity Council and Shelter Resources are actively pursuing other funding opportunities, including the Housing Trust Fund, to secure the additional $1.5 million needed for the project. The deadline for grant applications is set for October 31, 2024.

Representatives from Shelter Resources were present during the meeting to address any questions regarding the project and the grant application process.