PULLMAN, WA — A Pullman housing project will receive state funding aimed at reducing development costs after the City of Pullman was awarded $110,188 through Washington’s Connecting Housing to Infrastructure Program.

The funding is part of a $54.5 million investment announced Tuesday by the Washington State Department of Commerce, supporting 70 affordable housing projects in 22 counties statewide. The grants are expected to help create 4,517 new affordable housing units.

CHIP funding covers water, sewer and stormwater infrastructure costs tied to housing development and reimburses public utilities for waived connection fees. The program was established in 2021 to offset infrastructure expenses that can delay affordable housing projects.

Projects receiving CHIP funding must designate at least 25% of units as affordable for households earning less than 80% of area median income, according to Commerce.

Commerce officials say Washington will need more than one million new homes by 2044 to keep pace with population growth.

Nearby communities also receiving funding include Walla Walla, which was awarded $115,516 for the Fern Avenue Cottage Homes project.