Olympic Community Action Programs did not receive the Low-Income Housing Tax Credits the organization was depending on to move forward with the 7th and Hendricks streets low-income housing project, according to a press release from OlyCAP.
Low-Income Housing Tax Credits are credits issued by the federal government that subsidize construction of affordable rental housing for low- and moderate-income tenants.
OlyCAP has been working for two years to get its housing project at 7th and Hendricks streets in Port Townsend fully funded. After winning more than $3 million in federal and state financing, OlyCAP was hoping to break ground by fall of 2020. But the organization was banking on a pending application with the state Housing Finance Commission for $10 million in Low-Income Housing Tax Credit funding.
Based on previous years, OlyCAP felt funding was almost certain, according to the press release. But unprecedented competition in this year’s funding cycle resulted in OlyCAP being wait-listed for tax credits. Awarded projects scored 10 points higher than competition in previous years.
Without the tax credit funding, the project will not be able to go forward as soon as originally planned.
OlyCAP plans to reapply for the tax credits next year while working on strengthening its application.
“You never know who might be in the competition pool for LIHTC, so funding is never a guarantee,” said Cherish Cronmiller, OlyCAP’s new executive director. “However, the agency has a strong application and scored well for a rural project. We will look to maximize our points in order to be more competitive next round. The agency has invested a lot of time, energy and money into this process, so we are not giving up anytime soon.”
The plan is to build 43 apartments in a new building at 7th and Hendricks streets in the Castle Hill neighborhood of Port Townsend, according to the press release. The project will include six studio apartments, 18 one-bedroom apartments, 15 two-bedroom apartments and four three-bedroom apartments.
All units will be occupied by households making incomes below 50% of the area’s median income.
Median household income in Jefferson County, according to the 2013 to 2017 U.S. Census, was $51,842. The state’s median income was $66,174. The U.S. figure was $56,267.
The new building will also include an early childhood education classroom and a childcare center and will set aside housing for developmentally-disabled persons living with behavioral or mental health conditions families with children and domestic violence survivors.
The Federal Home Loan Bank of Des Moines, Iowa, selected OlyCAP to receive a $500,000 Affordable Housing Program grant for the project.
In addition, the state Department of Commerce selected OlyCAP to receive $2,936,884 in Housing Trust Fund financing.
OlyCAP also received 32 Section 8 vouchers from the Housing Authority, which will remain available for next year.
OlyCAP is searching for donations to help pay for the costs of reapplying for the tax credits and the studies needed to prove the viability of the project. All donations can be made to olycap.org/donations.
