Affordable Housing Financing

Human Services in partnership with the Pierce County Community Development Corporation provides financing for the development and preservation of affordable rental housing and the development of homeownership opportunities all to benefit low-income households in Pierce County, providing for the following activities:

Acquisition of rental and for-sale housingNew Construction of rental and for-sale housingRehabilitation & Preservation of rental and for-sale housingOngoing Operations and Maintenance of rental housingSupport for developers and buyers of for-sale housing
AcquisitionNewConstructionRehabExistingOperations & MaintenanceForSale

2022 nofa Awards were announced September 20, 2022, TOTALLING $17,718,097 for 335 new and 17 rehabilitated affordable units

See the list of awards here

Funding is allocated at least once per year through a competitive Notice of Funding Availability (NOFA). 

Find out more about the financing programs and awards:

  1. Rental Housing Capital Financing

Rental Housing Capital Financing is allocated at least once per year in a competitive Notice of Funding Availability (NOFA). Low interest loans are given to developers to finance the acquisition, construction, or preservation of rental housing. Obligation to repay the loan is evidenced by a promissory note and secured by a deed to secure debt. Each housing project using HOME funds shall be regulated by a covenant agreement for a minimum of 30 years.

These funds are considered gap financing, and can be used as local leverage for other sources including LIHTC, private debt, and Washington State financing mechanisms. No loans may be made until the project is fully financed and environmental review completed.

The following source of funds may be used for rental capital projects:

  • HOME Investment Partnership Program
  • 2060 Document Recording Fee Fund
  • 1406 Affordable Housing State Sales Tax Fund

All rental projects must:

  • Be rented at prices affordable to households at or below 60% Area Median Income for Pierce County, as determined annually by the Department of Housing and Urban Development. Preferences will be given to projects that serve households at or below 30% AMI.
  • Be located in Pierce County. If the project is inside the City of Tacoma or Lakewood, the respective city may also be required provide project financing if awarded HOME Investment Partnership Program funding.
  • Comply with applicable labor standards, development standards, and landlord-tenant laws

The following are eligible uses of County funds for rental projects:

  • Acquisition of existing standard property, or substandard property in need of rehabilitation;
  • Acquisition of vacant land to be used for new construction;
  • New construction;
  • Alteration, improvement, rehabilitation or modification of existing structures; 
  • Conversion of an existing structure from another use to housing;
  • On-site improvements, including sidewalks, utility connections, sewer and water line connections where none are present;
  • Demolition of an existing structure if construction will begin on the project within twelve (12) months;
  • Reasonable and necessary project related soft costs, including but not limited to: financing costs, professional services (i.e. architectural, appraisal, environmental, engineering, market studies, legal, and capital needs assessments), audit costs, affirmative marketing, insurance, permits and other project related soft costs approved by Pierce County and/or the CDC; and
  • Developer fees of up to twelve percent (12%) of the project costs depending on the size and complexity of the project. The developer fees can be provided only upon the completion of specific milestones as outlined in the contract and/or written agreement.
  • Sign up for Pierce County's Affordable Housing Developer Mailing List and Pierce County Human Service's Solicitations and Competitive Bids list to receive notice of financing opportunities. 
  • Review past NOFAs and Awards
  • If you are seeking technical assistance for affordable housing development or financing in Pierce County, reach out directly to Housing Unit staff.
  1. For-Sale Capital Financing
  1. Rental Housing Operations & Maintenance Financing
  1. Past NOFAs
  1. Past Awards

Sources of funding include the following:

  1. HOME Investment Partnership Program

The HOME Investment Partnership program is administered through the Pierce County Community Development Corporation (CDC). The HOME program is awarded annually to the County from HUD and is used locally to support both rental and homeownership projects. The annual financing amount is determined by HOME's budget, as set by anually by Congress, and income from previous loans.

Projects must be located in Pierce County. In addition, if a project seeking HOME funds is located inside the cities of Tacoma or Lakewood, the respective city must also provide project financing.

Home Program Resources:

HOME Program Regulations

2022 HOME Program Income and Rent Limits for Pierce County

Pierce County HOME Rental Housing Policies

Community Housing Development Organization (CHDO) Application

  1. 2060 Document Recording Fee Fund
  1. 1406 Affordable State Sales Tax Fund