OLYMPIA, WA – December 30, 2009 – (RealEstateRama) — The Washington State Department of Commerce has awarded $22,490,000 from the Housing Trust Fund to 11 multifamily affordable housing projects in seven counties. A total of 706 units will be built or rehabilitated in Clallam, Island, Walla Walla, King, Spokane, Pierce and Snohomish counties.
“The need is great, especially in these difficult economic times,” Gov. Chris Gregoire said. “These investments will be leveraged to make a significant difference in the lives of thousands of Washington citizens.”
“Increasing the availability of affordable housing is crucial for many communities across Washington,” said Rogers Weed, Director of Commerce. “These projects not only create additional jobs statewide but will also provide safe, decent, affordable housing for our Washington families and individuals who need it most.”
Of the $22 million in loans awarded, $17.5 million will directly fund construction of new units or redevelopment of aging housing. This accounts for approximately 13% of the $135 million in overall construction costs. In all, the awards will leverage approximately $140 million in funds from other sources, or more than six dollars for every state dollar spent. This includes more than $23 million in US Department of Housing and Urban Development (HUD) and US Department of Agriculture (USDA) grants and loans, plus more than $71 million in Low Income Housing Tax Credit investments.
More than 90% of the units funded through these loans will provide housing to very low income individuals and families (those earning less than 50% of the Area Median Income), while more than 50% will serve extremely low income households (those earning 30% or less of the Area Median Income). Twenty percent of the units funded will be reserved for individuals with multiple special needs, including developmental and physical disabilities, substance abuse issues, or chronic mental illness, who would otherwise be homeless.
Commerce estimates that the 409 new units to be built through projects in urban areas will support approximately $32 million in local revenue and 499 jobs during the construction period. An estimated $9.3 million in local revenue and 131 jobs will be maintained annually in these local economies once the units are occupied. Similar estimates are not currently available for the effect on rural communities.
With this round of funding awards, the Washington State Housing Trust Fund’s Multifamily capital funding budget for the 2009-11 biennium is now exhausted. Twelve other projects were under consideration but did not receive funding. These projects had proposed another 984 units built or rehabilitated statewide, at a cost of $23,981,202.
For more information about the Washington State Department of Commerce, visit www.commerce.wa.gov.
