Housing Finance Program
The King County Housing Finance Program (HFP) administers funds for the development and preservation of affordable housing throughout King County. The HFP allows community organizations to develop new units of affordable housing through:
- buying land for affordable housing
- acquiring existing rental housing, improving it, making it affordable and preserving it as affordable for many years and
- developing new affordable housing projects.
The HFP also administers funds for a program that focuses on preserving existing units of affordable housing that are already owned and in need of repair and/or rehabilitation. There are two programs available:
- a minor repair/rehabilitation service for small rental complexes or for repair of fewer than 12 units
- a major repair/rehabilitation program for rental complexes with 12 or more units with repair on 12 or more units, or for non-profit owned, publicly subsidized housing projects of any size
Both the minor and major repair programs are open for applications year-round as long as funds are available and you can learn more about this service by clicking here. Requests over $100,000 from the major repair program are reviewed and awarded in the annual HFP funding round. Additional information about the major repair program is included in the section below.
The following types of organizations are eligible to apply:
- Public housing authorities
- Nonprofit organizations
- Local governments
- Community Housing Development Organizations (CHDO's)
- For-profit entities (HOF and HOME funds only)
Partnerships are encouraged among local governments, public housing authorities, other nonprofit housing developers, for-profit developers, and service providers in order to produce the greatest number of units for the most reasonable public investment, and to provide appropriate supportive services to residents with special needs.
Eligible affordable housing projects must be located in the King County Consortium, which is primarily King County outside the City of Seattle. One of our major housing fund sources (HOME) also excludes the city of Normandy Park, which has elected not to participate. Another smaller housing fund source, the Community Development Block Grant (CDBG) also excludes the cities of Bellevue, Auburn, and Kent which receive their own CDBG funds to administer. Staff will consult with you further about matching fund sources with your project.
Eligible Beneficiaries and Affordability Requirements
Projects supported by HFP funds must provide housing that is affordable to income-eligible households. Generally, rental housing projects must be affordable to households at or below 50 percent of median income. Home ownership projects must be affordable to households at or below 80 percent of median income. Click here to view income information.
Projects that serve the following populations will be the most competitive:
- Homeless families and individuals, including youth
- Low income families and seniors at risk of displacement and homelessness
- Renter households with incomes at or below 50 percent of median income
- First-time home buyer households with incomes at or below 80 percent of median income
- Special needs populations, including, but not limited to:
- victims of domestic violence
- elderly and frail elderly
- people with mental illness
- people with developmental disabilities
- people with HIV/AIDS
- people with alcohol/substance abuse problems
Projects must either:
- increase the supply of rental housing affordable to low-income and/or or special needs households;
- preserve existing affordable housing that is likely to be lost; or
- create home ownership opportunities for moderate-income first-time homebuyers.
Projects that preserve existing affordable housing are defined as existing low-income projects in imminent danger of redevelopment or conversion, or projects where health and safety hazards put households at risk of losing their homes.
Priorities for eligible housing project activities are established in the King County Consortium Consolidated Housing and Community Development Plan 2010 - 2012 and the King County Ten Year Plan to End Homelessness. Please refer to those documents for more detailed information about needs and priorities.
In general, funding is available for the following housing project types and development activities:
- creating or preserving permanent affordable rental housing
- creating or preserving transitional housing - projects that allow households to transition in place, or to remain until permanent housing is actually secured, are preferred over traditional transitional housing with a set maximum length of stay
- creating affordable homes for first-time home buyers
- acquiring land for affordable housing
- acquiring and rehabilitating existing housing to preserve it as affordable
- rehabilitating existing housing
- site improvements
The Interim Loan Program provides low-cost financing for the acquisition of property that will be developed to provide low income housing. This program will prioritize projects proposing the development of permanent affordable housing that includes at least 25 percent of the units proposed to be homeless housing units. The affordability of the units must be for households at or below 50 percent of Area Median Income (AMI), with the target for homeless units to be at or less than 30 percent of AMI.
Eligible applicants must have developed and operated at least three publicly funded capital housing projects in King County and be in good standing with local public funders, including being current with annual report submissions.
The interest rate on the King County interim loans will be three percent simple interest with accrued interest paid in full when the interim loan is repaid. Borrowers will have a maximum of five years to acquire permanent project financing before repayment on the interim loan is due.
Prior to submitting an application for a interim loan, the borrower must schedule a pre-application meeting with King County staff, at which time it will be determined if the borrower can submit an application.
You can download an Interim Loan Program brochure (pdf) below or contact Valerie Kendall at Valerie.Kendall@kingcounty.gov or (206) 263-9076.
Interim Loan Program Brochure
In addition, you can download the full Interim Loan Program Guidelines below, and view the Interim Loan provisions in the King County Code, Title 24 (24.22) online at http://www.kingcounty.gov/council/legislation/kc_code.aspx.
Interim Loan Program Guidelines
King County will be looking at Impact Capital as a potential co-lender wherever feasible, so this limited resource can be leveraged to the fullest extent. For more information regarding Impact Capital’s interim loan product, contact Seth Benziger at firstname.lastname@example.org or (206) 658-2605.
This program is intended to provide low-cost loans to existing housing projects in need of repair or maintenance for owners who lack access to affordable capital. This program is subject to the availability of funds and applicants must apply through the annual HFP funding round process. No funding is available at this time.
Housing Finance Program Funding Round
The HFP funding round is open for applications once per year. The funding round is competitive and not all applicants are necessarily able to receive funds. Depending upon the characteristics of your project, HFP staff will work with you to determine the best funding sources for the housing. If you would like to read more about the individual fund sources administered by HFP, click here; if you are interested in the application for HFP funds, click here.
Applicants to the HFP are encouraged to structure the housing project so that tenant displacement is prevented or minimized. If federal HOME or CDBG funds are used in a project that involves a property with residential or commercial tenants, federal relocation requirements must be met. Funded projects will be required to work with King County HCD's Relocation Specialist, Wendy DeRobbio, and are encouraged to contact her early at 206-263-9070.
Neighborhood Stabilization Program (NSP) Optional Relocation Assistance Policy
King County will provide optional relocation assistance to owner-occupants not covered under 49 CFR part 24, Subpart B, who voluntarily sell their property for an NSP-funded project under a short sale. Relocation assistance will be provided under King County’s Option Relocation Policy. The owner-occupant will be eligible for relocation assistance in the flat rate amount of $2,831 (2012 figure), as adjusted each year in accordance with the consumer price index. The funds must be used to pay for security deposits and/or first month’s rent, or other relocation needs as determined appropriate to enable the former owner to find rental housing.
For more information about the Housing Finance Program, please call John deChadenedes at 206-263-9081