Transit-Oriented Development of Affordable Housing in Washington

The Washington State Department of Commerce is offering a grant program aimed at supporting the construction of affordable housing near transit. This initiative aligns with the department's mission of building communities and addressing housing needs within the state. The program makes $12.5 million in state funds available through a Notice of Funding Availability (NOFA) issued by the Multifamily Housing Unit (MHU). The program's evolution, particularly with changes from the 2024 Legislature, underscores a strategic adaptation to expand eligibility and ensure more projects can benefit from the funding. The primary beneficiaries of this grant are applicants involved in affordable housing projects, specifically those that applied to certain past funding rounds (HFU-2021-02, HFU-2021.05, HFU-2021-06, MHU-2022-02, MHU-2022-04, MHU-2023-01, MHU-2023-02, MHU-2023-03). The impact goal is to increase the availability of affordable housing, particularly in transit-oriented development (TOD) areas. The initial allocation strategy involved Cohort 1 for streamlined applications to "lookback" projects and Cohort 2 for supplemental applications from eligible 2023 applicants. A key priority and focus of this grant program is to fund projects that contribute to affordable housing near transit. Legislative changes in 2024 further refined these priorities by reducing the minimum number of units required and expanding the definition of TOD, thereby broadening the scope of eligible projects. This strategic shift demonstrates the department's commitment to making the grant more accessible and effective in addressing the state's housing challenges. The NOFA is specifically released for Cohort 1 and 2 applicants, indicating a targeted approach to support existing projects or those with prior engagement with the department's funding rounds. The expected outcomes of this grant program include the successful construction or development of affordable housing units near transit hubs across Washington State. Measurable results would involve the number of projects funded, the total number of affordable housing units created or preserved, and the geographic distribution of these projects. The maximum TOD award per project is $5 million, which provides significant financial support to achieve these outcomes. The department's theory of change appears to be that by strategically investing in affordable housing near transit, they can foster more sustainable and accessible communities, reduce commuting burdens, and enhance the quality of life for residents.