Affordable Multifamily Rental Projects Grant Program

The Washington State Department of Commerce, through its Multifamily Housing Unit (MHU), has released the 2026 Notice of Funding Availability (NOFA) for the Housing Preservation Program (HPP), NOFA #MHU-2026-04. This funding initiative focuses exclusively on preserving and extending the affordability of multifamily rental properties currently within the state’s Housing Trust Fund (HTF) portfolio. The core objective is to support capital improvements that ensure the long-term viability of these properties without expanding their capacity or adding new housing units. This round of funding continues the state’s ongoing commitment to maintaining affordable housing infrastructure throughout Washington. The NOFA is backed by a $50 million appropriation from the State Building Construction Account as part of the 2025–2027 Capital Budget. From this amount, approximately $48.5 million is available for awards after administrative costs are deducted. Up to $24.1 million is allocated specifically for projects already under executed contracts within the Housing Trust Fund. Eligible preservation activities include system replacements (e.g., HVAC, plumbing, electrical), fire safety upgrades, accessibility retrofits, and other capital improvements that add to a building's depreciable basis. Projects must not include unit expansions, furniture, vehicles, or other ineligible expenses such as property acquisition or loan repayments. All work must be performed by licensed third-party professionals unless prior approval is granted for in-house activity. Eligible applicants include local governments, local housing authorities, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes within Washington, and regional or statewide nonprofit housing assistance organizations. Additionally, applicants must be the controlling ownership entity of the property with an existing executed HTF contract. Projects are assessed for eligibility, readiness, and alignment with strategic preservation priorities, including the age of the project, urgency of needs, and benefits to tenants such as enhanced safety or improved quality of life. Evaluation also considers geographic distribution, with funding pools divided among King County, other urban areas, and rural regions to ensure statewide balance. Applications must be submitted electronically by 12:00 p.m. Pacific Time on April 17, 2026. Required components include affidavits, application checklists, detailed project descriptions, and budget documents in specified formats. All submissions must be made via a file-sharing site with access links emailed to the Housing Trust Fund inbox. Applicants are encouraged to test file accessibility prior to submission and may contact Commerce at [email protected] for technical assistance. Late or inaccessible submissions will not be reviewed unless proof of timely submission efforts is provided. Pre-application technical assistance is available via Zoom office hours scheduled for March 10 and March 24, 2026. Commerce also provides an application workshop video and supplemental guidance to help applicants prepare complete and compliant applications. The evaluation process involves multiple decision points, including eligibility and readiness screening, priority scoring within geographic pools, and determinant-based award finalization. Projects will be selected based on demonstrated need, readiness to proceed, tenant benefit, and the capacity of the applicant organization. Successful applicants will be notified around June 8, 2026, with contract execution required by January 2027. All preservation activities must be completed by October 31, 2027. Awards will be made as recoverable grants with a 15-year minimum affordability covenant or a minimum of five years beyond the expiration of any current HTF covenant, whichever is longer. All awarded projects are required to provide title insurance, execute appropriate collateral agreements, and comply with the Evergreen Sustainable Development Standard (ESDS). These requirements help ensure that the state’s investments support high-quality, sustainable, and long-lasting affordable housing solutions.

Submit early to mitigate upload issues; test file access ahead of deadline; ensure all files are legible and properly named