The state of Washington is now accepting applications for more than $212 million in funding aimed at supporting the development of affordable multifamily rental housing across the state. Governor Bob Ferguson confirmed that this allocation could help create over 2,500 new housing units in the coming years.
The Washington Department of Commerce will distribute the funds beginning in January, through an application process that closes in October. This initiative is part of a broader $419 million affordable housing package approved by the Legislature for the next two years. Typically, projects break ground within six to eighteen months of a funding award, and residents can often move in within two years from construction start, according to official projections.
Funding will be shared across three regions: King County, urban areas outside King County, and rural areas outside King County, with the goal of an equitable split. Commerce Director Joe Nguyen emphasized that investing in affordable rental housing is “one of the smartest investments we can make in our state’s future,” noting that affordable housing not only strengthens local communities but also bolsters regional economies.
Governor Ferguson has made expanding access to affordable housing a cornerstone of his early tenure, aiming to deliver 200,000 new housing units within his first term. State officials estimate that Washington will need to construct 1.1 million units over the next 20 years, with at least half designated as affordable.
During a discussion at the Pacific Northwest Economic Region conference in Bellevue last month, Lieutenant Governor Denny Heck highlighted that half of the state’s renters and a quarter of homeowners spend more than one-third of their income on housing, classifying them as “rent-burdened” under HUD standards. Nicholas Carr, senior policy adviser on housing in the governor’s office, pointed out that meeting long-term housing goals would require more modular and manufactured housing built off-site. Carr warned that traditional on-site construction alone, even with subsidies and deregulation, wouldn’t be enough to generate the necessary volumes.
This new funding round underscores the state’s commitment to tackling its housing affordability crisis and accelerating the development of accessible homes for thousands of residents.
