The state of Washington issued a Notice of Funding Opportunity (NOFO) providing over $112 million for multifamily rental affordable housing projects.
The capital funding comes from Washington State’s Housing Trust Fund (HTF) using a traditional competitive process. While the state also operates separate funding programs for Apple Health and Homes (AHAH) and Intellectual and Developmental Disabilities (IDD) projects, this NOFO focuses specifically on the HTF program and is managed by the Multifamily Housing Unit (MHU).
The funds are available for projects to construct, acquire or renovate affordable multifamily housing units, specifically ones serving low-income or special needs residents. Those eligible to apply include local governments, housing authorities, nonprofit community-based organizations, federally recognized Native American tribes and regional or statewide nonprofit housing assistance organizations.
The maximum award per project is $5 million, with a waiver available upon request for special circumstances. There is no cap on project submissions per applicant.
The state is also waiving the traditional 1% monitoring and 1% administration fees for this round of funding, meaning an additional 2% of the award amount would go to successful applicants.
These applicants must meet strict funding requirements, with all non-HTF funding sources secured by January 2026. They must also demonstrate prior affordable housing development experience or partner with an experienced developer.
Winners must begin construction between July 2026 and April 2027. Projects also must meet sustainability requirements under the state’s Evergreen Sustainable Development Standards.
The state scores eligible projects based on priority populations, with extra weight given to those serving special needs groups and homeless individuals. Projects serving extremely low-income communities receive the highest priority ratings. This includes households earning 30% of median income in urban areas, or 50% in rural areas.
New construction projects receive higher scores than renovation projects, reflecting Washington’s push to add new affordable housing rather than preserve existing units.
Projects also earn points for readiness to proceed. The state uses a scoring range from 0-110, with the final 10 points allocated for projects ready to begin quickly. It follows a three-tier system, with the first tier ready for contract execution and construction within 6-12 months of receiving the award. The second tier covers those ready within 12-15 months, while the third tier goes to a waitlist if they need more than 15 months to start.
The total funding is split into three competitive environments: King County, urban areas and rural areas.
The geographic split means projects only compete within their region, giving rural and smaller urban areas a better chance at funding since they do not have to compete against larger King County projects. Technical assistance is available through office hours continuing through Sept. 23, and the state offers pre-development grants for organizations new to affordable housing development. The deadline to apply is Oct. 16, with awards announced in January 2026.
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