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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 housing | New Construction of rental and for-sale housing | Rehabilitation & Preservation of rental and for-sale housing | Ongoing Operations and Maintenance of rental housing | Support for developers and buyers of for-sale housing |
2022 nofa Awards were announced September 20, 2022, TOTALLING $17,718,097 for 335 new and 17 rehabilitated affordable units
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:
Program Structure
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.
Eligible Fund Sources
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
Eligible Projects
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
Use of Funds:
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.
How to Proceed:
- 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.
Program Structure
For-Sale Housing Capital Financing is allocated at least once per year in a competitive Notice of Funding Availability (NOFA). Low interest loans or grants are given to developers to finance the acquisition, construction, preservation of housing, or to provide homebuyer education. Loans may also be provided to qualified homebuyers as down payment assistance. 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. No loans may be made until the project is fully financed and environmental review completed.
Eligible Fund Sources
The following source of funds may be used for rental capital projects:
- HOME Investment Partnership Program
Eligible Projects
All homeowner projects must:
- Be sold to owner-occupier households that are at or below 80% Area Median Income for Pierce County
- Be sold at a price that is affordable to households at or below 80% Area Median Income, meaning no more than 30% of gross income is spent on housing costs, not to exceed 95% of the median price of homes of a similar construction in Pierce County
- 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 and development standards, environmental review, and Section 3 regulations
Use of Funds:
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, homebuyer education, 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.
How to Proceed:
- 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, in particular for HOME regulations
- If you are seeking technical assistance for affordable housing development or financing in Pierce County, reach out directly to Housing Unit staff.
Program Structure
Rental Housing Operations & Maintenance Financing is allocated at least once per year in a competitive Notice of Funding Availability (NOFA). Grants are given to existing owners of affordable housing units to finance the building operation and maintenance costs of said units. The intent of this program is to cover gaps in operating costs of those specific units, not agency-related deficits, service funding deficits or debt services. There will be no obligation to repay the grant.
Eligible Fund Sources
The following source of funds may be used for rental operation and maintenance:
- 2060 Document Recording Fee Fund
Eligible Projects
All operations and maintenance projects must:
- Be rented at prices affordable to households at or below 50% 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
- Not be supported by project-based rental vouchers or otherwise be occupied by tenants with tenant-based vouchers
- Be permanent rental housing with current written leases for all tenants in units; or, transitional housing where the tenant has a lease directly with the property owner and the tenant may reside in the property for up to two years.
- Be located in Pierce County
- Demonstrate operating income is not sufficient to cover operating expenses of the units
- Comply with applicable labor standards, development standards, and landlord-tenant laws
Use of Funds:
The following are eligible uses of County funds for rental operations and maintenance projects:
- On-site salaries and benefits including all personnel costs directly associated with operating the building;
- Off-site management including overhead and personnel costs that are necessary to operate the building but are not located at the site;
- The cost of a financial audit in relation to the total Pierce County investment in the project;
- Project related administrative expenses such as, but not limited to, accounting, legal, advertising and marketing, insurance, collection loss, and real estate taxes;
- On-going maintenance expenses such as materials, janitorial supplies, maintenance contracts, security, and other maintenance expenses; and
Contractor paid utilities specific to the project but not specifically metered to an individual unit and are not the responsibility of the tenant.
How to Proceed:
- 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.
The 2022 NOFA was released with applications due June 10, 2022. To receive email notification when NOFA is published, please subscribe to the Human Services Solicitations and Competitive Bids distribution list.
Sources of funding include the following:
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:
2022 HOME Program Income and Rent Limits for Pierce County
Pierce County HOME Rental Housing Policies
Community Housing Development Organization (CHDO) Application
Funding for this program is derived from the County’s $13 affordable housing document recording fee fund (SHB 2060) as authorized under the Revised Code of Washington (RCW) 36.22.178, which finances affordable housing acquisition and development that serves households at or below fifty percent (50%) Area Median Income, as published by the United States Department of Housing and Urban Development. The annual financing amount is determined by the County's income from the document recording fee, and any income from previous loans.
This program is further governed by the SHB 2060 Guidelines, Policies and Procedures, and Inter-local agreements between the County and the Cities and towns in Pierce County as authorized under Pierce County Council Resolution R2003-96.
SHB 2060 Program Resources:
SHB 2060 Interlocal Agreements
Minutes
Meeting Agendas
Funding for this program is derived from the County’s 1406 Affordable Housing Sales Tax Fund, which was authorized by the Pierce County Council under Ordinance 2019-57. The ordinance allows a portion of the state's sales tax revenue be retained by the County in accordance with RCW 82.14.540, which directs finances to be expended on the acquisition, rehabilitation, and development of affordable housing that serves households at or below sixty percent (60%) Area Median Income, as published by the United States Department of Housing and Urban Development. The annual financing amount is determined by the County's income from the Affordable Housing Sales Tax Fund, and any income from previous loans.