Covington council approves $220,757 allocation for South King County affordable-housing projects

Covington on Feb. 10 approved a resolution authorizing the allocation of $220,757 from the city’s contribution to the South King Housing and Homelessness Partners (SCIP) housing capital fund to support three affordable-housing projects across South King County.

Claire Goodwin, executive manager for SCIP, told the council the program pools funds from Substitute House Bill 1406, House Bill 1590 and participating cities to finance new construction and preservation projects. “We are a unified, coordinated, and collaborative coalition funding the construction and preservation of affordable housing right here in South King County,” Goodwin said.

Goodwin said the SCIP Executive Board recommended funding three of six applicants this round, totaling just under $4 million in combined awards. The projects the board recommended include an African Diaspora Cultural Anchor Village (129 units, near Tukwila International Boulevard light rail) with a board recommendation that includes $1,200,000 to the project, St. Stephen Housing Association’s Steel House townhomes in Renton ($1,820,850 recommended to that project), and the Mental Health Housing Foundation’s Steel Lake Affordable Housing phase 1 (20 units, $922,000 recommended).

For Covington specifically, Goodwin said the board recommended allocating $87,693 toward the African Diaspora Anchor Village and $133,064 toward St. Stephen’s Steel House, for a total city allocation of $220,757. She described most SCIP awards as deferred, forgivable and contingent loans designed to preserve affordability covenants over multi‑decade terms and to work with projects that use low-income housing tax credits.

Council members asked how deferred loans differ from grants and how the small six‑unit St. Stephen townhome project would prioritize families. Goodwin explained that deferred loans typically do not require annual repayment if project covenants are met, and said she would follow up with St. Stephen about tenant selection criteria. “It tends to be based on what the developer prefers,” Goodwin said of loan versus grant structuring.

Council member Jeff spoke in favor of the allocation, saying the city’s contribution could leverage additional capital and create housing for people exiting homelessness. Council member Jennifer echoed support for the subregional approach. The council moved, seconded and approved the resolution by voice vote; the mayor declared the motion passed.

The resolution authorizes Covington to concur with the SCIP Executive Board’s recommendation and allocate $220,757 from the city’s SCIP housing capital fund contribution to the named projects. The City will retain records and follow SCIP’s interlocal agreement requirements for fund use and reporting.