Washington State Rolls Out New Housing Program

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The Washington State Housing Finance Commission has rolled out a new loan program designed to help developers rapidly acquire land or properties for use in affordable housing projects, in communities where gentrification and similar trends pose a threat.

The new Rapid Response Program (RRP) was created by state law enacted earlier this year. Some $10 million in state funds have been appropriated for the program. The Commission is accepting applications from developers for funding under the program on a rolling basis; it began accepting applications in August. The program offers loans of up to 50 years.

Eligible uses of loans include the purchase of real property (including land, buildings, or mobile home parks) for the preservation or development of affordable housing and community facilities. According to the Commission, “These properties must be located in rapidly gentrifying or redeveloping areas, or in communities with a significant low-income population that is threatened with displacement by such gentrification. The intent of this program is to position eligible organizations to quickly respond to those market conditions that threaten affordable housing and communities.”

An RFP issued by the Commission to solicit developer concept proposals noted that the Commission, in partnership with the state Department of Community Trade and Economic Development, will develop program guidelines and performance evaluation measures.

All housing developed under the RFP must target households at or below 80% of the area median income, and be affordable for at least 30 years.

Top priority is to be given to proposals that:

  • Preserve mobile home parks facing foreclosure.
  • Are properties in neighborhoods in King County (Seattle is in this county) facing gentrification or development.
  • Utilize properties in the city of Spokane facing the threat of displacement of low-income tenants due to the loss of affordable rental housing.

(Details: http://www.wshfc. org/rrp/index.htm)