Council approves city staff to prepare agreement to support HopeSource purchase of Pearl Street affordable units

The Ellensburg City Council directed staff to prepare an affordable‑housing agreement with HopeSource to support acquisition of eight residential units at 211 South Pearl Street and approved necessary budget adjustments to enable the transaction.

HopeSource presented the proposal to purchase four duplexes (eight units total — six studios and two one‑bedrooms) and requested $1,200,000 in city funding to bridge the project gap. HopeSource said the project is expected to be ready for occupancy in September and will be self‑managed; the county previously pledged $250,000 and HopeSource contributed property and other funds earlier in the developer negotiations.

HopeSource’s finance representative said the proposed rents use a 2024 income baseline and account for a utility allowance; the pro forma assumes studio rents of $866 and one‑bedroom rents of $960, which the presenter said equate to roughly 25% of monthly income for a household at 60% AMI. HopeSource acknowledged the project produces a thin operating margin and that eviction and nonpayment costs can be significant. The organization proposed a 25‑year affordability period for the units.

Council discussion acknowledged the $1.2 million city ask is large but noted the city’s dedicated affordable‑housing sales‑tax fund has built balance. Council and the Affordable Housing Commission described the project as a way to add units quickly because construction risk and entitlement work are already substantially complete; commissioners recommended approval while seeking the lowest rents and longest affordability period possible.

A council member recused/abstained due to a board affiliation with HopeSource; the motion to have staff prepare the agreement and make budget adjustments passed on voice vote with the abstention recorded. Staff will prepare contract documents and present final agreement terms for council approval.