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Ellensburg approves $1.2M forgivable loan to HopeSource for Addison Place acquisition
Summary
The council authorized the city manager to sign a forgivable-loan agreement with HopeSource to support acquisition of four duplexes (eight units) to be managed as long-term affordable housing for households at or below 60% AMI.
The Ellensburg City Council on Sept. 2 authorized the city manager to sign an affordable-housing agreement and attachments with HopeSource to support acquisition of four duplexes (eight units) known as Addison Place. The city will contribute $1,200,000 and Kittitas County will contribute $250,000 toward the purchase; HopeSource will manage the property under a 25-year affordability covenant.
Lee Frye, the city’s housing program manager, told council the acquisition would add six studio/efficiency units of about 412 square feet and two one‑bedroom units of about 575 square feet. The units will be restricted to households at or below 60% of area median income and to qualifying categories required by the authorizing funding, such as seniors, veterans, people with disabilities, people who are homeless or at risk of homelessness, or survivors of domestic violence.
Frye said the city’s contribution is structured as a forgivable loan with one‑twenty‑fifth of the loan forgiven annually, conditional on compliance with reporting and tenant-qualification requirements. HopeSource’s representative on the call described the project as an opportunistic acquisition that delivers smaller-unit affordable housing quickly and at a lower per‑door cost than many tax-credit developments.
Council received assurances that annual monitoring and financial reports will be provided to the city, and staff said the monitoring form that was omitted from the packet had been agreed with HopeSource and copies were available on the dais. After public comment (none) and brief council remarks acknowledging local partners, the council moved, seconded, and approved authorization for the city manager to sign the agreement.
Why it matters: the acquisition will add eight affordable rental units immediately to the local inventory and preserves affordability for 25 years under the terms of the forgivable loan. The structure preserves the city’s oversight through annual reporting requirements and a funding covenant.
Next steps: the manager will execute agreement documents and HopeSource will complete the property acquisition with tenant move‑in expected this fall, subject to closing conditions and the agreed monitoring regime.
