Encampment Resolution Program for Rapid Capital Projects in Washington

The Washington State Department of Commerce, through its Housing Policy Unit (HPSI), has announced the Encampment Resolution Program Rapid Capital Projects NOFA (#ERP-2025-01) for the 2025 funding round. This Notice of Funding Availability (NOFA) seeks applications for funding to acquire real property for rapid conversion into various forms of housing, including enhanced emergency shelters, permanent supportive housing, transitional housing, permanent housing, youth housing, or shelters for individuals and families experiencing homelessness. The primary goal of this funding initiative is to provide housing solutions for extremely low-income individuals, including those currently in unsheltered and sheltered homelessness situations. The Washington State Legislature has appropriated $20,000,000 for this funding round through the 2024 Supplemental to the 2023-2025 Capital Budget, under ESSB 5949, Section 1007(9). Of this total, $19,400,000 will be competitively available to applicants, while 3% of the appropriation will be retained for administrative costs. There are no explicit maximum or minimum award amounts per applicant or project, allowing applicants to request up to the full amount of available funding. Funds can be awarded in the form of loans or recoverable grants, depending on the project type and population served. Shelters and projects for homeless youth will receive recoverable grants, while projects serving extremely low-income individuals or those providing permanent supportive housing may receive loans with deferred payment terms. Eligible applicants include local governments, housing authorities, nonprofit organizations, and tribal entities that can demonstrate their capacity to acquire and convert properties into housing. Projects must meet the program’s objectives and eligibility criteria, including readiness for development and alignment with housing priorities. The NOFA outlines geographic funding distribution considerations, prioritizing statewide allocation while categorizing projects within the Multifamily Housing Units regions of King County, urban areas, and rural areas. The application timeline includes a technical assistance period from February 4, 2025, to March 21, 2025, during which applicants can seek clarifications. The final deadline for submission is April 11, 2025, by 5:00 PM PST. Applications must be submitted electronically via a file-sharing platform, and late or incomplete submissions will not be reviewed. The Department of Commerce will publish a list of received applications on April 18, 2025, with final funding decisions expected by April 30, 2025. Applications will be evaluated based on the criteria outlined in Appendix A of the NOFA, with considerations such as project feasibility, timeline, target population, financial viability, and the ability to secure additional funding sources. Threshold review will determine whether applications meet minimum eligibility standards, and applicants will be notified of any deficiencies. Qualified applications will proceed to full evaluation, where they will be ranked for final funding decisions. For additional details, applicants are encouraged to review the NOFA and its appendices in full. Questions regarding the NOFA or application process can be directed to the Housing Policy Unit via email at housingpolicy@commerce.wa.gov. The Department of Commerce strongly recommends that applicants submit their materials well before the deadline to allow for any necessary corrections.