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1. INTRODUCTION & HOUSING NEEDS <br /> The City of Ellensburg is accepting proposals from service providers to meet urgent housing needs in the City of <br /> Ellensburg. Proposals may be submitted by a single organization that meets all the criteria or by a partnership between <br /> organizations that collectively meet all the criteria. <br /> This NOFA does not have a set closing date; applications will be reviewed and evaluated as received. Applicants are <br /> encouraged to meet with City staff prior to submitting an application for funding, particularly if they are unsure if <br /> proposed activities are eligible for funding.Applications that are deemed complete and meet eligibility criteria by City <br /> staff will be reviewed and evaluated by the Affordable Housing Commission with its award recommendations forwarded <br /> to City Council as the final decision-maker. <br /> Cost-burdened households <br /> One of the best indicators of affordable housing needs is the number of cost-burdened households. A household is <br /> considered cost-burdened if they spend more than 30% of their income on housing and basic utility costs. Cost- <br /> burdened households have limited resources left over to pay for other necessities such as food, clothing, medical care, <br /> transportation, and education, and are also at higher risk of displacement when housing costs rise or life circumstances <br /> change. Based on the most recent available Comprehensive Housing Affordability Strategy data (calculated for 2022), <br /> there were an estimated 2,870 renter households and 589 homeowner households that were cost- burdened in <br /> Ellensburg, about 39%of all households and 54%of renter households. About half of older adults who live alone were <br /> cost-burdened. Cost burdens are highest among populations with lower incomes; for example 90%of households with <br /> incomes below 30%of Area Median Income (AMI)(in 2026 about$26,000 annually for a household of two people or <br /> $32,000 for a household for four people)were cost-burdened. <br /> Displacement risk <br /> Based on Washington State Department of Commerce mapping data that incorporates home price and rent changes, as <br /> well as demographic changes and renter percentage of the population, most of Ellensburg's census tracts indicate a <br /> heightened displacement risk. In addition, in a 2026 survey,45%of renters respondents and 40% homeowner <br /> respondents expressed concerns about displacement due to rent and utility costs or home maintenance costs and/or <br /> property tax increases. <br /> Homelessness <br /> Annual point in time (PIT) counts identified 26 people in in 2025 and a preliminary results for 2026 identified 45 people <br /> experiencing homelessness in Kittitas County, many of whom live in Ellensburg. During the 2025-2026 season, an <br /> average of 11 people per night used the Cold Weather Shelter. <br /> 2. 2026 AVAILABLE FUNDS <br /> In November 2017, Ellensburg voters approved a one tenth of one percent increase in City sales tax for housing and <br /> related services consistent with RCW 82.14.530.The purpose of this local funding source is to support housing and <br /> related services in the City of Ellensburg. Per state law, housing created with these funds or contracted services are <br /> required to serve households earning no more than 60%of AMI. <br /> 2026 Notice of Funding Availability—Affordable Housing Sales Tax—Housing Services Page 2 of 7 <br />