The Connecting Housing to Infrastructure Program (CHIP) helps local governments encourage the creation of affordable housing by reducing or covering the cost of infrastructure associated with development. The page provides information for local governments interested in applying for CHIP.
Funding available: Applications due Sept. 30
CHIP is accepting applications for competitive grants of up to $2 million. A total of roughly $31 million is available. Applications are due Sept. 30, 2026. Application information and materials are available on the GMA Grants webpage.
Who can apply?
A CHIP applicant must be a city, county or public utility district in partnership with an affordable housing developer. Projects must meet specific criteria:
- Located in a jurisdiction that imposes an affordable housing sales and use tax under RCW 82.14.530(1)(a)(ii) or RCW 82.14.530(1)(b)(i)(B), RCW 82.14.540, or RCW 84.52.105. This includes all counties and the cities within them except Stevens and Ferry counties.
- Located within the urban growth area (UGA) boundary.
- A minimum of 25% of the units are set-aside as affordable to low- or moderate-income households.
- The affordable housing development must begin construction within 24 months of the CHIP award.
- A strong probability of serving residents within the specified income levels for at least 25 years.
Eligible activities
CHIP connects affordable housing projects to utility systems, and can reimburse:
- Water and sewer line upsizing to serve increased density.
- Water and sewer line extensions to serve new infill development.
- Water, sewer and stormwater connections for affordable housing development.
- Water, sewer and stormwater connections for market rate housing when a minimum of 25% of the units are set-aside as affordable to low or moderate-income households.
- Regional stormwater systems or upgrades necessary to support housing development.
- System development charges waived for affordable housing.
Resources
See the CHIP Handbook (PDF) for detailed guidance about the Connecting Housing to Infrastructure Program, including application and contracting requirements and the reimbursement request process.
To be eligible for reimbursement for waived system development charges, the applicant must have in place, or put in place, an ordinance which reduces system development charges for affordable housing units, as authorized by RCW 35.92.380 and 36.94.370.
Examples include:
- City of Bellingham’s Ordinance 2015-07-029
- King County Wastewater’s website, which shows how system development charges are levied across a variety of housing types, with a reduction to 0.32 RCEs for affordability.
Since 2021, CHIP has awarded nearly $98 million to support the development of more than 9500 affordable housing units, helping to create housing for the most vulnerable segments of our population. To learn more about previous funding cycles and who was funded, see the following: