Harbor Custom Development : Kitsap Community Resources aims to buy Bremerton townhouse project to create affordable housing

The Mills Crossing townhomes, which opened in late 2021, currently rents for more than $2,500 per month.

Published by Peiyu Lin

A sign points the way to a staged townhome being used as the leasing office at Mills Crossing in Bremerton on Nov. 1, 2022. MEEGAN M. REID/KITSAP SUN

BREMERTON - Kitsap Community Resources is planning to purchase a newly constructed 36-unit townhouse development in East Bremerton to create more affordable housing.

Kitsap County recently committed $2 million and the City of Bremerton $500,000 to support KCR's potential purchase of Mills Crossing, the development located a block west of Highway 303 and near the Kitsap Transit Center. Along the financial commitments, KCR received letters of support from the city and the county and attached them to a funding request sent to the Washington State Department of Commerce for grant money to secure the purchase.

In addition to the potential grant from the Department of Commerce, the requested amount of which wasn't disclosed, KCR may seek funding from other agencies involved in housing issues and is in the process of negotiating with the real estate company that owns Mills Crossing, Harbor Custom Development Inc., KCR Director Tony Ives told Kitsap Sun last week.

Mills Crossing began opening for tenants in August and provides three-floor, two-bedroom and two-bathroom units in the townhomes. It is located at 1003 Little Haven Lane. Each unit ranges from 1,424 square feet to 1,444 square feet and has a garage and a parking lot on the ground floor. The apartments currently lease for $2,500 to $2,800 a month with lease options of six months to one year, according to Harbor Custom Development Inc.

Eric Baker, Kitsap County deputy county administrator, said a proposal was brought to the board of county commissioners and reviewed by the county's policy and human service staff. The board approved the $2 million commitment using the county's American Rescue Plan Act funding Jan. 11, Baker said.

The $2 million dollars became available after the county had discontinued a commitment of its ARPA funds to a project at the Kitsap County Courthouse in Port Orchard. The county was planning to use ARPA money to retrofit the entry to the courthouse for social distancing, but decided to utilize other funding to pay for the improvement, said Eric Baker, Kitsap County Deputy County Administrator.

The county's financial commitment is based on the project's scope and the participation of other funders, including Bremerton, Baker said.

"The project is an excellent opportunity to provide long-term housing to populations that are greatly struggling to find housing in this market," Baker said.

"It is a really exciting project. But if for any reason it doesn't look like it's going to come to fruition, the board needs the opportunity to reprogram those funds, so we will be keeping a close eye on this project as it moves forward," Baker said. The county is required to spend ARPA funds by the end of 2024.

Bremerton's city council approved the $500,000 commitment, which comes from the city's ARPA funding, for the project in a meeting Jan. 11. Bremerton Mayor Greg Wheeler said the city fully supports KCR's plan and Mills Crossing is a chance to provide more affordable housing for individuals and families in the community.

"We know there is a pressing need. In response, we have been supporting ways to increase affordable housing in the City and establishing partnerships so we can act quickly on new opportunities that might come up for residents," Wheeler said in a statement to Kitsap Sun. "It's important to continue looking for ways to increase supply and make more affordable housing available for our low income and vulnerable populations."

The attempt to purchase Mills Crossing is the first step of a joint effort that involves several community partners aiming at the same purpose - to create more affordable housing in the community, said Ives.

Several organizations, including KCR, Bremerton Housing Authority, nonprofit St. Vincent de Paul in Bremerton, Kitsap County and more, are cooperating to identify community needs, search for possible items and funding opportunities to purchase properties for the purpose of creating more affordable housing, said Joseph Crain, the executive director at St. Vincent de Paul Bremerton.

Harbor Custom Development Inc. looks forward to working with KCR, a representative of the real estate company said.

"We are excited for the opportunity to work with Kitsap Community Resources who serve such an important role in providing essential, affordable housing for families in our community, and look forward to their completion of the due diligence approval process," said Sterling Griffin, President and CEO at Harbor Custom Development.

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