Poulsbo and Housing Kitsap set September move‑in date for Nordic Cottages; city, county and state grants cover part of $4M project

Poulsbo City leaders and Housing Kitsap staff told the City Council on July 2 that construction of the Nordic Cottages — eight one‑bedroom, permanently affordable apartments at 609 N.E. Lincoln (the Triangle) — is ahead of schedule and on track for a first‑week‑of‑September completion, with an open house set for Sept. 12 and a target move‑in date of Sept. 15.

The project, a partnership between the city and Housing Kitsap, uses a mix of local, county and state funds and project‑based vouchers to reduce tenant rents. City Administrator Rob Gelder said the overall budget is “just under $4,000,000,” and staff have secured roughly $1,100,000 from outside sources, including an approximately $400,000 legislative proviso from state Representative Tara Simmons, a Kitsap County HOME/CDBG grant of about $400,000 and a Washington State Department of Commerce grant near $300,000. Housing Kitsap will manage the property and administer the vouchers.

Why it matters: Nordic Cottages is the first project on city‑owned land set aside for permanently affordable housing under the council’s 2020 resolution. Council members and staff said the completed cottages will add scarce, low‑income rental housing in Poulsbo and give the city experience in small‑scale development partnerships.

Project and timeline details: City staff said BJC Construction was awarded the contract, utilities and curb/gutter/sidewalk are installed, and interior finishes were underway. Landscaping, fencing, a gazebo and a planned “Hope Garden” — funded in part with the legislative proviso and to be planted with help from nonprofit volunteers — remain to be finished. Staff stated construction is running about a month ahead of schedule.

Tenant selection and occupancy: Housing Kitsap representatives said the eight units are one‑bedroom apartments intended for seniors (62 and older) at or below 30% of area median income (the staff estimate cited roughly $26,000). The housing authority revised a tenant selection plan for the project and will open the waiting list for two business days in July; Housing Kitsap will post notice on its website and handle in‑person application assistance in its lobby during the open period. The agency described two local preferences that will be weighted in selection: residents who live or work in Poulsbo’s nearby ZIP codes and households that are rent‑burdened.

Operational funding and long‑term costs: Housing Kitsap said the property manager fees and initial administrative costs will be paid from the project’s cash flow (rents plus voucher subsidies). Staff told council they expect to establish a modest replacement reserve (the pro forma estimate discussed in the workshop was about $7,400 a year) and that bond payments or other residual obligations may rely on the city’s 0.1% sales tax set aside for housing and related services.

Public outreach and next steps: City staff will circulate the tenant selection plan and the housing‑management agreement for council review. Council members asked staff to push public notice broadly, including a press release, social posts and a banner at the site; staff said they would also contact community partners (Fishline and other case managers) to reach people who lack internet access. Council members confirmed Sept. 12 at 1 p.m. for a contractor/council pre‑walk and an open house, with move‑in targeted for Sept. 15.

Quotes: Dean Nail of Housing Kitsap said the agency plans to “open the wait list in July” and intends to keep that list open for only two days because of anticipated high demand. Rob Gelder described the project as the product of a “city–Housing Kitsap partnership” and noted the council’s 2020 decision to reserve the Triangle site for affordable housing.

What’s next: Staff will return with a detailed pro forma and a property management agreement, provide the tenant selection plan to council for review, and proceed with public notice about the July application window and the September open house.