Infrastructure funding unlocks 400+ affordable homes across Pierce County

February 11, 2026

Pierce County will receive more than $2.7 million in state funding through the Connecting Housing to Infrastructure Program (CHIP) to support three affordable housing projects that will expand housing options for residents across the county.

The Washington State Department of Commerce announced $54.5 million in CHIP grants statewide, supporting 70 projects in 22 counties and enabling the creation of 4,517 new affordable housing units. CHIP helps communities reduce development costs by funding essential water, sewer, and stormwater infrastructure—often the final barrier to getting affordable housing built.

In Pierce County, CHIP funding will support the following projects:

“These investments show what’s possible when we pair smart planning with real resources,” said Pierce County Executive Ryan Mello. “CHIP funding helps us remove infrastructure barriers so we can deliver housing for working families, first-time homebuyers, and people exiting homelessness. These projects will strengthen our communities and create long-term stability for residents across Pierce County.”

Supporting Affordable Homes for Working Families

The Addison Grove development will create 102 affordable, family-sized rental homes in Frederickson for households earning between 50% and 80% of Area Median Income (AMI). Designed with families in mind, the community will offer rents well below market rates and ensure long-term affordability for at least 60 years.

“Addison Grove is about dignity, stability, and opportunity for working families,” said Alec Thomas with Great Expectations, the project developer. “CHIP funding removes a critical infrastructure hurdle and allows us to move forward with homes that families can truly afford—right in a growing community near schools, parks, and jobs.”

Expanding Entry-Level Homeownership in Frederickson

The Frederickson South project will add 20 to 28 deed-restricted, three-bedroom homes affordable to households earning 80% AMI or below, helping close the widening gap between incomes and housing costs. CHIP funding will support off-site sewer infrastructure, lowering development costs and making attainable homeownership possible for local residents.

“This funding helps turn years of hard work and planning into real homes for families,” said Joseph Beck, Chair of the Pierce County Community Development Corporation. “Frederickson South will provide entry-level homeownership opportunities that are increasingly rare, while preserving long-term affordability so future generations can benefit as well.”

Creating Pathways Out of Chronic Homelessness

Good Neighbor Village, led by Tacoma Rescue Mission, will provide housing and supportive services for people experiencing chronic homelessness. By June 2027, the project will deliver 50 affordable homes, with plans to grow to 285 homes at full build-out.

“Good Neighbor Village is about more than housing—it’s about community, healing, and lasting transformation,” said Duke Paulson with Tacoma Rescue Mission. “CHIP funding helps us build the infrastructure needed to serve some of the most vulnerable people in Pierce County and offer a real, permanent path out of homelessness.”

Investing in Pierce County’s Future

In the current economic climate, the rising cost of infrastructure—from sewer connections to stormwater management—often creates a ‘funding gap’ that can stall affordable projects indefinitely. These CHIP awards are the final piece of the financial puzzle, covering essential site costs that would otherwise be passed on to residents or prevent construction from starting altogether. By absorbing these backend expenses, the state and Pierce County are ensuring that these developments remain mathematically viable and, most importantly, deeply affordable for the long term.

The Goal: More Homes for Everyone

Pierce County is facing a serious housing shortage. By 2044 Pierce County needs more than 100,000 new housing units to meet projected housing demand. 77,000 of these units should be dedicated to households who need affordable options.We aren’t just waiting for it to happen. Pierce County is taking action by speeding up the permitting process so building starts sooner, planning smart to make sure growth happens in the right places, partnering with private developers, and using local tax revenue from the Maureen Howard fund to lower costs.

For more information about affordable housing efforts in Pierce County, visit www.piercecountywa.gov/ah.

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