Thurston’s Board of County Commissioners (BoCC) supported a proposed plan to use $3.5 million in funding to support four affordable housing projects at Franz Anderson in case the construction of permanent supportive housing (PSH) gets delayed.
At a meeting on Monday, Aug. 19, Office of Housing and Homeless Prevention (OHHP) Senior Program Manager Tom Webster explained that the projects will utilize the American Rescue Plan Act (ARPA), State and Local Fiscal Recovery Funds (SLFRF), and identified local affordable housing funds.
“We are not requesting any new funding or we are not adding any new projects. All the projects we are talking about today have already been approved. We're really just talking about which fund sources are going to fund which projects,” said Webster.
The funding plan discussed in the meeting will re-obligate the funds to four eligible affordable housing projects in place of a PSH.
The funds need to be obligated by December 31, 2024, and final expenditures for projects must occur by December 31, 2026.
Through an Interlocal Agreement (ILA) with the City of Olympia, the county met the requirement to obligate the amount by the time specified. However, due to a delay in funding from the developer’s failed application, there is a risk that the project will not be able to expend the funds by December 31, 2026.
Last February 2022, the board approved an ILA with the City of Olympia to jointly acquire property at 519-528 Franz Anderson Road.
The lot was initially intended to be a safe parking space for recreational vehicles but has since been eyed as a PSH site.
Under the Governor's Right-of-Way Initiative, the Department of Commerce granted the city of Olympia funding to develop the site and construct the current 50-unit tiny home village. The long-term plan is to develop a PSH on the property.
In Spring 2023, Olympia selected the Low Income Housing Institute (LIHI) to develop the property. The accepted proposal calls for a two-phase project predicted to begin in fall 2024 and be completed by January 2026.
In November last year, the board approved an ILA between Thurston County and the cities of Olympia, Lacey, and Tumwater.
This agreement provides $3.5 million to support the Franz Anderson Road PSH project, and the ILA was executed in December of the same year.
LIHI unsuccessfully applied for funding from the Washington State Housing Trust Fund and the Washington State Housing Finance Commission for Low-Income Housing Tax Credits.
“There's some concern whether the funds will be fully expended by the 2026 deadline. LIHI intends to resubmit their application into the state this fall. We're cautiously optimistic that will be funded. But it is a competitive process, sometimes it takes two or three rounds of applications before you're funded,” said Webster.
“However, in the event that it is not funded this year when things get further delayed, that really puts that expenditure deadline at risk. We are unable to re-obligate those funds after this December deadline,” Webster detailed.
The five county commissioners expressed their support for the funding plan.
Webster said that the next phase would be to approve contracts and then collaborate with the Regional Housing Council to amend the funding source portion of interlocal agreements.
To reduce the risk of losing these funds, OHPP staff has prepared a list of projects that can be funded by obligating the funds around the end of this year and expended by 2026.
The $3.5 million in ARPA-SLFRF funds can fund four eligible affordable housing projects. Three projects involve acquiring existing properties, and one provides manufactured homes for low-income seniors.
The four projects are Homes First’s Four-Plex Acquisition for Affordable Housing Project and Single-Family Home Acquisition for Affordable Housing (Deerbrush Loop) Project, Vital Housing’s Courtside Apartments Acquisition and Preservation Project, and Housing Authority’s Sequoia North Project for seniors.
|
Agency |
Project |
RFP |
Award Amount |
Proposed SLFRF Amount |
|
Homes First |
Four-Plex Acquisition and/or Rehab for Affordable Housing |
2024 |
$ 635,969.00 |
$ 635,969.00 |
|
Homes First |
Single Family Home Acquisition for Low Income Tenants - Deerbrush Loop |
2024 |
$ 375,000.00 |
$ 375,000.00 |
|
Housing Authority |
Sequoia North |
2024 |
$ 1,653,745.00 |
$ 1,653,745.00 |
|
Vital Housing |
Courtside Apts Acquisition and Preservation |
2024 |
$ 1,357,669.15 |
$ 835,286.00 |
|
Total |
|
$3,500,000 |
||
|
LIHI |
Franz Anderson PSH Project |
|
Local Home Fund |
Local Home Fund |
|
Substitute House Bill1406 (Local state-shared tax for affordable and supportive housing) |
$771,580.49 |
|
Substitute House Bill 5386 (old 2060, Local document recording fee revenue) |
$225,000 |
|
Total |
$3,500,000 |
This table only addresses the $3.5 million ARPA-SLFRF funding the County awarded to this project. It does not include the Regional Housing Council’s $1.5 million award to the Franz Anderson project.
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ChuckCross
What the heck is a PSH??? Obviously the proposed housing project, which has been denied tax funding, isn't economically viable. Tax dollars purchased the land involved, and tax dollars will fund the building project. And Thurston County wants to impose increased taxes to fund county road maintenance. No problem folks, just raise taxes. Sign me an unhappy County resident living on a fixed income.
Friday, August 23, 2024 Report this
Boatyarddog
CCross it is in the title of the article Permanant Support Housing, You can Google it. And the city has info on it. And as far as being economically nonviable that's the Port of Olympia in a Nutshell. They've raised taxes to their limit, while continuing to fund many projects and then leave them unfinished and unfunded. This is not a Port Project though. Let ALL talk about the REAL Elephant in the room.
Friday, August 23, 2024 Report this
JW
Remember when the supportive housing went in to Pattison and Martin Way? The Olympia VFW on Martin way sure does. They (and other residents in proximity to the "PSH") now suffer through increased levels of crime, public urination and defecation, and harassment. I hope every resident on Franz Anderson is ready for the giant wave of crime and drug dealing this proposal will bring.
Friday, August 23, 2024 Report this