Jefferson County’s property next to its Department of Community Development in the QFC shopping center is one step closer to becoming the site of a 44-unit low-income apartment complex. (Jeannie McMacken/ Peninsula Daily News)

Jefferson County’s property next to its Department of Community Development in the QFC shopping center is one step closer to becoming the site of a 44-unit low-income apartment complex. (Jeannie McMacken/ Peninsula Daily News)

Jefferson commissioners approve letter of intent with Olympic Community Action Programs

Plan is to make county property available for affordable housing

PORT TOWNSEND — Jefferson County is one step closer to making a dent in the affordable housing crisis.

On Monday, the three county commissioners unanimously approved a letter of intent with Olympic Community Action Programs (OlyCAP) to make county-owned property in the Castle Hill neighborhood available for a proposed low-income housing development.

The letter of intent allows OlyCAP to pursue funding for the project, which is expected to offer 44 studio to three-bedroom apartments to people who are below 50 percent of median household income, or about $35,000 a year.

OlyCAP will either purchase the property or enter into a long-term lease agreement.

Half of the units will be for people who are homeless or are at risk of homelessness. Also part of the plan is a community child care center on the lower level that might be an E-CAP or Head Start facility.

The project’s preliminary budget is $15.5 million, with most of the funding originating from outside the county.

Three quarters of it will come from a low-income tax credit investor and a private bank loan. The other quarter will come from state funds. A small portion of local funding will be in the form of land donation and some of the county’s affordable housing funds.

Construction costs are expected to be around $10 million.

Construction is expected to begin in September 2020 and to be completed within 14 months.

The half-acre parcel is located southwest of the intersection of Seventh and Hendricks streets, adjacent to the county’s community development, public health and public works departments. It is near transit, services and Jefferson Healthcare. It is hoped that the location will eliminate the need for private cars.

“This property was identified in 2013 as a potential government property that could possibly be made available for affordable housing,” County Administrator Philip Morley said.

Central Services Director Mark McCauley said there will be a couple public hearings on the project as it moves forward. The county will either sell the property or lease it to OlyCAP for 75 years with the proviso that it can be used only for the stated purpose.

The county also has an interlocal agreement with Jefferson Healthcare for parking at the property, and the county would need to obtain any necessary authorization from them to make the property available. The lot received a new layer of paving two weeks ago.

“In 2017, commissioners declared a housing emergency in Jefferson County and nothing has gotten better since then,” Morley said. “We still have problems with affordable housing. It is one of the top priorities and pressing problems facing our community today.”

OlyCAP Executive Director Dale Wilson said his nonprofit has been looking at partnering with the county to solve some of the need.

“Housing over the past decade has created conditions that are threatening our socio-economic and community at every level. It has not gotten any better, it has only gotten worse.”

Throughout the past several months OlyCAP has been pulling together the project team. OlyCAP’s Kathy Morgan will take the lead. Other team members include Seattle architects Third Place Design Cooperative, Port Townsend’s Terrapin Architecture, Philippa Nye from Aly Community Development, local legal counsel Collette Kostelec, and Seattle-based law firm Kantor Taylor, whose specialty is low income tax credit counsel.

“In the county, 1,540 people are housing cost-burdened, and there has been an increase of 90 people in the homeless count this year,” Nye said. “The numbers are large and getting greater. It’s been over a decade where there has been a significant project that addresses a multi-family rental in Jefferson County. There’s a gap that we’re intending to fill.

“We’re cobbling together a whole lot of money from different places,” she said. “We feel that this project is a very competitive one that will score really well for housing tax credits.”

“We are pushing forward because of the federal home loan bank grant and applications are due at the end of May,” Nye said. “This gives you significant points for below market lease or sale. We figured out what we need for competitiveness and it’s almost a complete donation or a low-market lease. That’s our first $500,000. It’s one of the more difficult ones to get but it is leverage for all the rest of the funding.”

________

Jefferson County Reporter Jeannie McMacken can be reached at 360-385-2335 or at jmcmacken@peninsuladailynews.com.

More in News

Paranormal investigator Amanda Paulson sits next to a photo of Hallie Illingworth at Lake Crescent, where Illingworth’s soap-like body was discovered in 1940. Paulson stars in a newly released documentary, “The Lady of the Lake,” that explores the history of Illingworth’s death and the possible paranormal presence that has remained since. (Ryan Grulich)
Documentary explores paranormal aspects disappearance

Director says it’s a ’ Ghost story for Christmas’

Funding for lodge in stopgap measure

Park official ‘touched by outpouring of support’

Wednesday’s e-edition to be printed Thursday

Peninsula Daily News will have an electronic edition on… Continue reading

Joe Nole.
Jefferson County Sheriff Joe Nole resigns

Commissioners to be appoint replacement within 60 days

Residents of various manufactured home parks applaud the Sequim City Council’s decision on Dec. 9 to approve a new overlay that preserves manufactured home parks so that they cannot be redeveloped for other uses. (Matthew Nash/Olympic Peninsula News Group)
Sequim preserves overlay for homes

Plots can be sold, but use must be same

A ballot box in the Sequim Village Shopping Center at 651 W. Washington St. now holds two fire suppressant systems to prevent fires inside after incidents in October in Vancouver, Wash., and Portland, Ore. A second device was added by Clallam County staff to boxes countywide to safeguard ballots for all future elections. (Matthew Nash/Olympic Peninsula News Group)
Political party officials fine with Clallam’s loss of bellwether

With election certified, reps reflect on goals, security

For 20-plus years, Bob and Kelly Macaulay have decorated their boat and dock off East Sequim Bay Road for Christmas, seen here more than a mile away. However, the couple sold their boat earlier this year. (Doug Schwarz)
Couple retires Christmas boat display on Sequim Bay

Red decorations lit up area for 20-plus years

Hurricane Ridge day lodge funding held up in Congress

The fate of $80 million in funding to rebuild… Continue reading

Judy Davidson, left, and Kathy Thomas, both of Port Townsend, look over the skin care products offered by Shandi Motsi of Port Townsend, one of the 20 vendors at the second annual Procrastinators Craft Fair at the Palindrome/Eaglemount Cidery on Friday. (Steve Mullensky/for Peninsula Daily News)
Procrastinators Market

Judy Davidson, left, and Kathy Thomas, both of Port Townsend, look over… Continue reading

Services could be impacted by closure

Essential workers won’t get paid in shutdown

A now-deceased male cougar was confirmed by Panthera and Washington Department of Fish and Wildlife staff to have been infected with Avian influenza on the Olympic Peninsula. (Powell Jones/Panthera)
Two cougars infected with bird flu die

Risk of human infection still low, CDC says

D
Readers contribute $58K to Home Fund to date

Donations can be made for community grants this spring