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Expanded Land Acquisition Program (LAP)

A partnership between the Commission and Microsoft

The Expanded Land Acquisition Program (ELAP) is a partnership between the Housing Finance Commission and Microsoft Corporation that enables developers to purchase land and improved real property in east King County and develop it later for affordable rental housing or single-family homes.

Created in 2020, ELAP is a revolving loan program administered by the Commission using capital provided by Microsoft. For our statewide LAP program, see our main LAP page here.

Key Program Features

Limited to the communities of East King County, especially the target areas of Redmond, Bellevue, Kirkland, Issaquah, Renton and Sammamish.

Open to all development entities, including for-profit companies as well as local governments, local housing authorities, nonprofit organizations, and tribes

Housing can serve people who earn up to 120 percent of Area Median Income

Housing must remain affordable for at least 20 years

Who is eligible?

ELAP Is open to all development entities including for-profit companies. Borrowers must demonstrate sound experience and strong development capacity.

Program Requirements

ELAP is intended to be a short- to medium-term acquisition bridge financing program: units should be placed in service by no later than the end of the 5th year (or 7th year if an extension is permitted. Ideally, property construction will begin up to 3 years after acquisition

Within 1 year of receiving an ELAP loan, the borrower must present WSHFC with an updated development plan, including committed and anticipated financial resources, and an estimated development schedule showing completion by year five

30-year affordability use restriction

Loan Details

ELAP loans can be made in any amount; however, ELAP is not intended to cover 100% of site acquisition costs. The ELAP may not be used for predevelopment expenses. The ELAP loan will cover a maximum of 75% loan-to-land value.

ELAP loans have a 5% interest rate with an estimated 1% loan fee and a maximum term of 3 years with a 2-year extension available. Interest and principal payments may be deferred for the life of the loan.

The interest rate on an ELAP loan may be reduced by up to 3% (at the sole discretion of the credit committee) for the life of the loan in the event of certain changes to local ordinances or regulations that meaningfully and positively impact affordable housing projects (beyond just the ELAP project in question).

When to Apply?

Applications for ELAP may be submitted at any time. Projects are considered on a rolling basis, depending on available funds, so that developers can take advantage of market opportunities as they arise.

How to Apply

Program Description and Application Guidelines (PDF)

Application (WORD)

     

 
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