Poulsbo staff recommend NOFO, land bank and rental assistance to speed affordable housing

At the April 8 workshop, Kimberly Hendrickson, director of Poulsbo’s Health, Human Services and Housing Department, presented five recommendations from the ad hoc affordable housing committee aimed at directing the city’s affordable housing sales-tax funds. The proposals include launching a competitive NOFO/RFP process or rotating loan fund, creating a land-bank program, supporting accessory dwelling units (ADUs), partnering with Fishline for rental assistance, and pursuing North Kitsap regional cooperation for shelters or transitional housing.

"What if part of this NOFO or RFP was to encourage affordable units as part of plans that are already going through the approval process?" Hendrickson asked, describing options such as fee waivers, expedited permitting or loans that would braid city funding with other sources. She estimated the local affordable housing tax brings in roughly $650,000–$700,000 per year, with about $250,000 annually committed to Nordic Cottages debt service and about $250,000 historically used for behavioral-health services, leaving roughly $150,000–$200,000 unencumbered each year and a fund balance she estimated at about $500,000.

Community partners and committee members supported a transparent competitive process to attract proposals from both nonprofit and for-profit developers. Kellen (construction representative) noted incentives should be broad and flexible to invite different project types; Fishline’s Charlie Thompson offered to administer expanded rental assistance if council allocated funds. Hendrickson proposed presenting a draft NOFO in June 2026 and opening applications as early as fall, if council gives direction.

Councilmembers asked staff to return with more precise budget estimates, prioritization criteria and outreach plans to county and island partners for any shelter-related work. The presentation is informational and the council did not adopt rules or awards at the meeting.