The Seattle Office of Housing (OH) has announced $170 million in capital funding as part of the 2025 Notice of Funding Availability (NOFA). These funds are designated to support affordable rental housing development projects across Seattle. Eligible projects may focus on new construction, acquisition, preservation, or stabilization efforts.

This initiative forms part of the City’s ongoing work to expand housing affordability, reduce displacement, and support Seattle’s underserved communities. Applicants are required to meet specific qualifications and adhere to the application process and deadlines outlined in the NOFA.

Overview of Available Funding

The 2025 NOFA allocates funding into three categories to address diverse housing needs and support a range of projects. Funding will be allocated based on the applications that OH receives. This flexibility enables OH to be responsive to the needs of the community and affordable housing providers.

New Production and Acquisition

This funding category supports the creation of new affordable rental housing through construction or the acquisition of properties not previously regulated under OH programs. Projects must demonstrate readiness and feasibility, including appropriate zoning and alignment with the City’s overarching policy goals. Additional emphasis is placed on projects that address displacement risks, capitalize on opportunities in underfunded areas, create a higher percentage of two or more bedroom units, or contribute to the City’s equitable development goals.

Preservation

This category provides funding to rehabilitate or recapitalize existing affordable housing properties already regulated under OH agreements. Eligible projects must address challenges such as property maintenance, expiring regulatory agreements, or financial stresses. These investments prioritize extending long-term affordability, maintaining safe living conditions, and ensuring housing stability for current tenants.

Stabilization

The stabilization category, new for the NOFA, targets financially distressed properties in the City’s affordable housing portfolio. Stabilization funding awarded through this NOFA will build on the nearly $142 million the City has invested in affordable housing stabilization since 2023. Stabilization funds are intended to restructure existing debt, restore positive cash flow, and address operational challenges. Eligible proposals must demonstrate ongoing financial viability and compliance with OH affordability standards.

Goals and Objectives

OH funding aims to advance several housing and community development priorities:

• Require at least 20% of the homes designated for people with incomes at 0-30% Area Median Income (AMI).
• Require up to 20% of the homes designated two or more bedrooms for family-sized housing.
• Prevent displacement of vulnerable residents, particularly in neighborhoods where displacement risk is high.
• Address historic inequities through investments addressing redlining impacts or supporting underserved communities.
• Implement sustainable building practices, including energy efficiency and environmentally friendly design.
• Provide affordable housing options near public transit, employment opportunities, and essential services.

Application Process

All developers interested in seeking funding must follow a standardized application process. Below are the key steps for participation:

Step 1. Submit a Pre-Application Intake Form

Applicants must begin by completing the Pre-Application Intake Form. This submission allows OH to gather initial details about the proposed project and sets up a customized SharePoint folder for the formal application.

Step 2. Schedule a Pre-Application Meeting

Following the form submission, applicants will receive a link to schedule their required pre-application meeting. During this meeting, OH staff will provide feedback and guidance to ensure the project aligns with program priorities.

Step 3. Submit Complete Application Materials

All application materials, as outlined in the Seattle Application Checklist, must be uploaded to the assigned SharePoint folder by the deadline of September 18, 2025, at 12 p.m. PST. Late submissions will not be reviewed.

Step 4. Confirm Submission

Applicants must complete a short online confirmation form following the upload of all required documents to certify the application is final and ready for review.

Key Dates

To assist developers in planning their applications, the Office of Housing has outlined the following critical deadlines:

• August 21, 2025: Consistency Letter and Siting Determination deadline
• September 12, 2025: Final day to hold a pre-application meeting
• September 18, 2025 (12 p.m. PST): Final application deadline

Threshold Criteria

To be considered for funding, applicants must meet the following requirements:

1. Submit all materials on time with complete documentation.
2. Limit submissions to no more than three applications per sponsor organization.
3. Participate in the required pre-application meeting with OH staff.
4. Ensure project proposals meet all eligibility criteria for the applicable funding category.

Additional Information

OH staff are available to assist applicants throughout the process. Developers with questions may contact Alex Hutchinson, Rental Housing Program Manager, via email at alex.hutchinson@seattle.gov.

This funding cycle presents a significant opportunity for developers to help maintain and grow affordable housing throughout Seattle. Projects that demonstrate readiness, financial feasibility, and alignment with OH goals will be prioritized. Developers are encouraged to carefully review the 2025 NOFA guidelines and submit compelling proposals to maximize their competitiveness.

For further details, please refer to the complete 2025 NOFA or contact OH staff.