Oak Harbor Secures $3 Million in Grants for Mulberry Village Workforce Housing

The City of Oak Harbor has secured $3,000,000 in grants to support the Mulberry Village Affordable Housing Project, a 96-unit multifamily rental development led by Opportunity Council in partnership with Blue Ridge Cascade. The awards will pay for a road extension and site utilities the city says are necessary to move the project forward and address local traffic concerns.

In a press release headlined "City of Oak Harbor Secures Grants for Affordable Workforce Housing Project" and labeled "FOR IMMEDIATE RELEASE," the City said "Island County awarded two million dollars to the City from the Rural County Economic Development (RCED) grant program." The release states, "The funding from Island County will be used to extend the Mulberry Court Road through the property to Swantown Avenue." The City described that work as essential to "alleviate traffic congestion on Mulberry Court and reduce concerns from neighboring households."

The second award comes from Olympia: "The Washington State Department of Commerce awarded one million dollars to the City from the Connecting Housing to Infrastructure Program (CHIP)." The release adds that "The funding is provided from the State Building Construction Account" and that "The funding will be used to install infrastructure for water, sewer and storm utilities." City materials also note site planning metrics: "There will need to be approximately 168 parking spaces at the housing development."

Mulberry Village is being advanced as affordable workforce housing intended to expand rental options for local workers. Opportunity Council is the developer on record, working with Blue Ridge Cascade as a project partner. The Island County RCED money is explicitly tied to the Mulberry Court Road extension through the project site to Swantown Avenue; Commerce CHIP funds are dedicated to on-site utilities.

City officials presented the Mulberry Village awards as part of a broader capital program. City staff presented a biennial capital plan with roughly $62.9 million in capital projects, about $26.3 million of which the administration said comes from grants; the city reported $3 million already awarded and $11 million applied for, with an additional $18.6 million in grant applications planned. The finance team also highlighted a legislative change to increase flexibility in use of real-estate excise tax funds, and "the mayor said Deputy City Administrator and Finance Director David Goldman helped draft that legislative language and that the governor signed it on April 24."

The press release metadata shows multiple dates: the header reads "City of Oak Harbor - February 3, 2026" while the site listing is marked "Posted on December 15, 2025" and "Last Updated on January 21, 2026." The City has not published a construction timeline in the materials provided; permitting, detailed site plans and a schedule for the road and utility work have yet to be released.

For Island County residents, the awards mean concrete steps toward new workforce rental units and accompanying infrastructure that aim to ease congestion on Mulberry Court and provide water, sewer and storm service to the site. Next steps will include permitting and project scheduling with Opportunity Council and Blue Ridge Cascade, and further grant applications as the city pursues the remainder of its capital plan.