Commerce invests $54.5 million in affordable housing across Washington
Grants to connect 70 housing projects to water-related infrastructure will support the creation of 4,517 new affordable units
OLYMPIA – The Washington State Department of Commerce today announced $54.5 million in grants to help create nearly 5,000 affordable housing units across Washington.
From Vancouver to Spokane, grants of up to $ 1 million will support 70 projects in 22 counties. By helping to reduce the cost of development, funds will support the creation of 4,517 affordable housing units.
See the list of awarded projects.
The awards represent the latest round of the Connecting Housing to Infrastructure Program, referred to as CHIP. Established in 2021, the competitive program pays for waterworks infrastructure — such as extending or upsizing water and sewer pipes and new or upgraded stormwater management — and reimburses public utilities for connection fees that were waived to bring these needed water utilities to the project.
 Officials in Sequim celebrate award of a CHIP grant to support 50-unit affordable housing project in partnership with Clallam County Habitat for Humanity.
Since taking office last year, Governor Bob Ferguson has made addressing the state’s housing crisis a top priority. Ferguson recently announced a historic investment in affordable housing.
“We urgently need more affordable housing all across Washington,” Gov. Ferguson said. “My administration is taking action to address our affordable housing crisis.”
"These awards represent a smart, coordinated investment in housing and infrastructure,” said Interim Commerce Director Sarah Clifthorne. “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.”
The state projects needing more than a million new homes by 2044 to keep pace with anticipated population growth. 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.
This round of CHIP funding also included a pilot program to support projects in Chelan, Douglas and Okanogan counties. Approximately $5 million will support moderate-income housing projects for those earning greater than 80% of area median income and up to 100% of state median income in Wenatchee, Chelan and Winthrop.
 The Lincoln Place II supportive housing building opened its doors in Vancouver in September 2025. The project was supported by $493,000 in CHIP funds awarded in 2023. The building provides 40 permanent supportive housing units where residents have access to subsidized rent and supportive services including job training and counseling.
CHIP boosts community and housing choice
“The CHIP program has been very responsive, patient, and proactive in helping us navigate the contracting, amendment, and billing processes. The clear communication and timely processing really stands out and makes a difference for our team and our projects.”
— Samantha Whitley, City of Vancouver
To learn more about this collaborative Commerce investment: Lincoln Place II: Serving unhoused Vancouver residents through a unique healthcare and housing partnership
“These funds were integral for Housing Resources Bainbridge to be able to start the project on time in June (2025). Without the CHIP grant, these funds would have had to be privately raised, which would have delayed the project.”
— Laura Shear, City of Bainbridge Island
“The CHIP funds were crucial in getting the project to full funding and preventing further delays.”
— Tina Ilvonen, King County
Today’s awards bring total CHIP investments to nearly $152 million since 2021, contributing to reducing the cost and advancing the development of nearly 14,000 affordable housing units. There is more information on the Connecting Housing to Infrastructure Program on Commerce’s CHIP webpage.
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