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Clallam County allocates up to $4 million in local funds for 36-unit supportive housing project
Summary
The Clallam County Board of Commissioners approved two agreements committing local funds — $2 million from a behavioral-health reserve and up to $2 million from affordable housing sales-and-use-tax accounts — to support a 36-unit permanent supportive housing complex at 138 West Second Street in Port Angeles.
The Clallam County Board of Commissioners on Dec. 17 approved local funding commitments to support development of a 36-unit permanent supportive multifamily complex at 138 West Second Street in Port Angeles.
County staff said Peninsula Behavioral Health will be the project sponsor. The board voted unanimously to allocate $2,000,000 from the county’s one‑tenth of one percent behavioral‑health reserve and to authorize up to $2,000,000 from dedicated affordable housing sales‑and‑use‑tax accounts (itemized as $1,250,000 in 2024 and up to $750,000 in 2025) toward the project, producing a combined local commitment of up to $4,000,000.
Commissioners and staff framed the package as a leveraged financing strategy intended to combine multiple local, state and private sources so the project can move forward. Staff described the 1/10th‑of‑1% behavioral health reserve as a long–accumulated fund restricted to expenditures for behavioral‑health and substance‑use services; the board’s vote authorized tapping that reserve to support development of permanent supportive housing for residents with behavioral‑health needs.
Peninsula Behavioral Health was identified in the meeting packet and discussion as the host applicant; county staff said the project will require additional funding sources beyond the local commitments to reach financial closing. One county commissioner, speaking in support, thanked Peninsula Behavioral Health, city partners and county advisory groups for coordinating toward the development.
The board approved both agreements by voice vote without recorded dissents. County staff said more detailed project financing and implementation steps will be presented as the developer advances design and funding commitments.
Next steps: county staff will finalize the agreements with Peninsula Behavioral Health and continue coordination with city partners and funders; the board did not set a construction timeline during the Dec. 17 meeting.
