Washington is throwing $54.5 million at the unglamorous guts of development – water, sewer, and stormwater hookups – in a bid to crack open thousands of affordable homes across the state. Officials announced Tuesday that the grants will connect 70 housing projects to water-related infrastructure, a move expected to clear the way for roughly 4,517 affordable units from Vancouver to Spokane. By picking up the tab for underground utility and stormwater work, the funding is designed to cut the kind of upfront costs that routinely stall or kill affordable housing deals. Local governments and nonprofit builders say the awards give long-planned projects a jolt, especially for low- and moderate-income residents who have been waiting on the sidelines.
How CHIP Funding Works
The Washington State Department of Commerce said the awards, part of the Connecting Housing to Infrastructure Program (CHIP), will offer grants of up to $1 million per project to cover water, sewer, and stormwater work and to reimburse public utilities for waived connection fees, reducing upfront development costs, according to the Washington State Department of Commerce. This round of CHIP funding backs 70 projects in 22 counties and is expected to help create 4,517 affordable units. To qualify, projects must reserve at least 25% of new homes as affordable for households earning less than 80% of the area median income. The awards also carve out roughly $5 million for a pilot aimed at moderate-income projects in Chelan, Douglas, and Okanogan counties.
Sequim And Vancouver Projects Highlight Impact
Officials and local leaders are already pointing to projects in places like Sequim and Vancouver as early proof of what this funding can unlock. In Sequim, a CHIP grant will help power a 50-unit affordable development built in partnership with Clallam County Habitat for Humanity. In Vancouver, Lincoln Place II, which opened in September 2025, had earlier secured $493,000 in CHIP support, according to KOMO News. Gov. Bob Ferguson cast the awards as part of a broader statewide effort to get more roofs over people’s heads, saying “we urgently need more affordable housing all across Washington,” as reported in the same coverage.
Where This Fits In Washington's Housing Plan
Commerce says this latest round of CHIP awards brings total program investments to nearly $152 million since 2021 and has helped move roughly 14,000 affordable units forward statewide, part of a larger drive to close a housing gap officials peg at more than one million homes by 2044, according to the Washington State Department of Commerce. Interim Commerce Director Sarah Clifthorne said the money is meant to strip away infrastructure barriers that slow construction and to help local jurisdictions move projects to the finish line faster. For cities and developers juggling tight land availability and fragile financing, the grants are intended to get projects into the ground sooner and into service for residents who cannot afford to keep waiting.
