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Council authorizes staff to solicit developers for DOC CHIP infrastructure grants
Summary
The council approved Resolution 25-52 to authorize staff to solicit and assist developers in applying for Department of Commerce Connecting House to Infrastructure Program (CHIP) grants that reimburse developers for water, sewer and stormwater work when projects meet state affordability requirements (25% of units).
The City Council authorized staff to solicit developers and provide technical support for applications to the Department of Commerce’s Connecting House to Infrastructure Program (CHIP), adopting Resolution 25-52. The program reimburses developers for qualifying on-site infrastructure work (water, sewer and stormwater) when projects meet program eligibility criteria.
City staff explained the proposed approach: the city would be the formal applicant for CHIP funds and staff would offer technical assistance to developers preparing submittals. Staff said they were already in contact with at least one potential developer for a large apartment complex and that staff would review and score applications internally before recommending that the city submit an application on a specific project.
Eligibility requirements mentioned during the discussion include a state affordability rule that 25% of residential units in a CHIP-funded project must meet the state’s affordable-housing definition. Staff characterized the work on CHIP as largely staff time rather than direct city expenditures, though council members asked about potential application costs and timing. One councilmember noted application costs listed in packet materials at an estimated $3,000–$5,000 and asked whether the September due date for the next biennium made it necessary to act immediately; staff responded the current biennium’s application is due in September and the program recurs every two years.
Councilmember Matt moved to adopt Resolution 25-52 to authorize staff to proceed; the council approved the motion by voice vote.
Why it matters: if successful, CHIP awards can reduce developer costs for extending utility infrastructure, potentially lowering barriers for higher-density and mixed-income housing projects in the city. The city must act as the applicant and verify project eligibility, including the 25% affordability requirement.
Next steps: staff will post program notes on the city website, reach out to developers, review submittals and, if appropriate, present recommended applications to council for formal submission.
