Council authorizes CHIP grant application for affordable housing infrastructure near Outlook Road

The Sunnyside City Council on July 28 authorized the interim city manager to submit an application to the Washington State Department of Commerce’s Connecting Housing to Infrastructure Program (CHIP) to support infrastructure upgrades needed for a proposed affordable housing development off Outlook Road.

Camille Gallegos, housing development associate with Catholic Charities Housing Services, asked the council to allow the city to be the applicant because the program requires an application from a jurisdiction. Gallegos said Catholic Charities plans to build affordable units and that CHIP funds would offset substantial infrastructure costs tied to the project.

City staff described eligible uses for CHIP funds that could include connection fees, upsizing water and sewer lines, and other infrastructure related to the development. City staff also said the money could be used to help finance a new well and additional reservoir capacity the city is exploring to serve expected growth.

Council members asked that the final application be shared with council before submission; staff said the application is due Sept. 26 and that Catholic Charities and the applicant team will work quickly. The council voted to authorize the interim city manager to submit the application and agreed staff would email the final application to council members for review prior to submission.

No commitment of city funds was made during the meeting; staff said the grant application would be used to reduce costs for the developer and that any project-specific capital work would return to council for approvals and budget action if required.