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Affordable Housing Sales and Use Tax Grants
Program Overview
Pursuant to RCW 82.14.530, the City Council adopted ordinance 3655 authorizing a Sales and Use Tax for affordable housing in the amount of 0.1%. This initiative was passed by voters and took effect on April 1, 2020. Affordable Housing Sales and Use Taxes are collected upon the transaction of all retail sales inside the Port Angeles City limits. Affordable Housing Sales and Use Tax Grants must be used to assist with constructing, procuring, and stabilizing affordable housing and housing-related assistance programs. This webpage was last updated on March 27, 2026.
Program Materials
Affordable Housing Sales and Use tax grants must be utilized for the following:
- Constructing or acquiring property for use as affordable housing (and the construction of infrastructure – water, power, sidewalks, and other public improvements – required for affordable housing development), which may include the following:
- Emergency housing
- Transitional housing;
- Supportive housing;
- New units of affordable housing within an existing structure;
- Facilities providing housing-related services; and
- Acquiring land for these purposes.
- Constructing or acquiring property for use as behavioral health-related facilities or acquiring land for these purposes; or
- Funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers.
- The affordable housing and facilities providing housing-related programs may only be provided to persons within any of the following population groups whose income is at or below sixty percent of the median income of the jurisdiction imposing the tax:
- Persons with behavioral health disabilities;
- Veterans;
- Senior citizens;
- Persons who are homeless or at risk of being homeless;
- Unaccompanied homeless youth or young adults;
- Persons with disabilities; and
- Domestic violence survivors.
See RCW 82.14.530 and RCW 82.14.540 for more information.
The application process is simple and easy. All applicants will:
- Download an Affordable Housing Sales Tax grant application from the City’s website.
- Complete the grant application and attach all other required documentation.
- Submit the completed grant application to Community and Economic Development via ced@cityofpa.us
All funding awards will be honored in accordance with the cost of development at the time of application unless the applicant can prove hardship.
Applicants are required to provide to CED a monthly written update on their project. The City will utilize these reports to monitor the recipient's performance by tracking project progress, overseeing compliance with Affordable Housing Sales and Use tax fund requirements, and ensuring recordkeeping and audit requirements are met. Substandard performance, as determined by the CED Manager, will constitute noncompliance with the contract. Failure to meet these requirements and/or to utilize funds appropriately will result in the recipient returning any funds paid from the Affordable Housing fund.
If the Recipient does not take action to correct such substandard performance within 60 days of the notification of non-compliance by the City, contract suspension or termination procedures may be initiated.
- What are Affordable Housing Sales and Use Tax Grants?
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Affordable Housing Sales and Use Tax is a grant designed to incentivize the development of public services that provide housing support for those most at risk in our community. See RCW 82.14.530 and 82.14.540 for more information.
- Is my project eligible for an Affordable Housing Sales and Use Tax Grant?
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Affordable Housing Sales and Use tax funds must be utilized for the following:
- Constructing or acquiring property for use as affordable housing (and the construction of infrastructure – water, power, sidewalks, and other public improvements – required for affordable housing development), which may include the following:
- Emergency housing
- Transitional housing;
- Supportive housing;
- New units of affordable housing within an existing structure;
- Facilities providing housing-related services; and
- Acquiring land for these purposes.
- Constructing or acquiring property for use as behavioral health-related facilities or acquiring land for these purposes; or
- Funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers.
- The affordable housing and facilities providing housing-related programs may only be provided to persons within any of the following population groups whose income is at or below sixty percent of the median income of the jurisdiction imposing the tax:
- Persons with behavioral health disabilities;
- Veterans;
- Senior citizens;
- Persons who are homeless or at risk of being homeless;
- Unaccompanied homeless youth or young adults;
- Persons with disabilities; and
- Domestic violence survivors.
See RCW 82.14.530 and RCW 82.14.540 for more information.
- Constructing or acquiring property for use as affordable housing (and the construction of infrastructure – water, power, sidewalks, and other public improvements – required for affordable housing development), which may include the following:
- What are the benefits of Affordable Housing Sales and Use Tax Grants?
-
Increased Public Services: The Affordable Housing Sales and Use Tax grant increases development opportunities for necessary public services by leveraging public and private funds.
Reduced Development Costs: The Affordable Housing Sales and Use Tax grant reduces construction and land acquisition expenses to the developer through a grant paid as an advance by the city to the applicant.
- What is the application process?
-
The application process is simple and easy. All applicants will:
- Download an Affordable Housing Sales and Use Tax grant application from the City’s website.
- Complete the grant application and attach all other required documentation.
- Submit the completed grant application to Community and Economic Development via ced@cityofpa.us
Funding requests under $14,999 can be approved by the CED Manager, City Attorney, and Finance Director.
Funding requests between $15,000 and $24,999 must be approved by the City Manager, City Attorney, and Finance Director.
Funding requests over $25,000 must be approved by the City Council and all parties mentioned above.
- How is this grant-funded?
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Affordable Housing Sales and Use taxes are collected upon the transaction of all retail sales in the City of Port Angeles at the rate of one-tenth of one percent.
- I still have questions? Who can I contact for more information?
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Please email the City’s Housing Administrator at jboado@cityofpa.us.
You can also schedule an appointment with a planner by calling 360-797-8616 or visiting our website at www.cityofpa.us/BookAMeeting.