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Council deadlocks on ordinance to use state CHIP grants to reimburse developer connection fees; members call for more study
Summary
After extended debate about whether city ordinance should allow use of state CHIP capital grants to reimburse system‑development and connection fees for affordable units, the council failed to approve the ordinance and did not adopt a motion to table; a subsequent motion to reconsider the item passed, leaving the proposal unresolved.
Sedro‑Woolley council members split Tuesday over an ordinance (filed as Ordinance 210225 in the meeting packet) that would allow the city to accept state CHIP (Capital Housing Incentive Program) grant revenues and use them to reimburse utility permitting and connection fees for qualifying affordable‑housing units.
The city attorney’s staff described the program as a state capital‑budget grant that can be layered with local programs to reduce per‑unit development costs. Kelly (city finance) and Charlie (city attorney/staff) told the council that CHIP grants are competitive, administered from the state capital budget, and typically function as reimbursement grants: developers or eligible applicants pay upfront and, if awarded a state grant, get…
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