City supports Related Affordable's application to preserve Hostmark Village Cove apartments

Poulsbo, Wash. — City staff informed the council June 11 that Related Affordable (the affordable‑housing arm of Related Companies) has an agreement to purchase Hostmark Village Cove, a 120‑unit affordable housing complex at 703 Hostmark Avenue that houses adults with disabilities and older adults. Related Affordable intends to apply to Kitsap County affordable housing funds to pay for a multimillion‑dollar renovation; county funds often require demonstration of local support.

What staff told council: Human Services Director Kim Hendrickson said Related Affordable is well experienced in preserving affordable housing and has publicly stated it has not flip properties to market rate. Related Affordable—0s representative met with staff and has been responsive in the city—0s outreach. For the county application, Related asked for the city to be listed in the application narrative as a supporting jurisdiction; staff noted the county application will not accept separate letters of support for this round.

Council reaction: Councilmember McVeigh and others expressed support for the concept and for Related Affordable's stated preservation track record. Councilmembers asked about property management plans; staff said Related intends to designate local property management (Housing Kitsap was discussed as a candidate) but that management arrangements and the sale have not been finalized and the application is part of ongoing diligence.

Why it matters: Hostmark Village Cove provides a set of deeply affordable units for vulnerable residents; a purchaser that will invest in renovation and preserve affordability reduces the risk of loss of low‑cost units in the community. Staff will monitor the application and provide any follow-up materials the county requires.