Developer with purchase option promises to preserve Hostmark affordability, asks council to weigh $3M county funding support

City staff introduced Ian (speaker 11) from Related Affordable, who said his firm has a signed purchase option on Hostmark Village Cove and proposes a comprehensive renovation and an extension of affordability commitments. Ian said Related’s plan is to raise capital (including a County CIH request) to purchase, renovate roofing, plumbing and electrical, and enter a regulatory agreement with the state to preserve affordability long term. “We’ve never taken a single unit out of affordability,” Ian said, describing past projects and asking the council for support to Kitsap County for $3,000,000 of CIH funding to help offset renovation costs.

Council members pressed for details: several asked whether renovations would permanently displace residents (Related said temporary relocation to hotels would be provided when needed and that no resident would be permanently displaced), asked how the property’s existing project-based vouchers run through 2039 would be preserved, and asked for more homework before the city signs on. Mayor Erickson and staff said any letter to the county would come only after additional analysis of program mechanics, CIH program availability (reported county CIH funds ~ $6–7 million annually) and confirmation that resident rights and the waiting list would be protected. Council directed staff to return with a recommendation and more detail before committing city resources or a letter of support.