Thursday, October 1, 2026
The Lacey City Council is poised to make a decision on $3 million in funding for the Franz Anderson housing project amid concerns about spending the money.
An amended regional housing agreement, which addresses funding and other issues for the project, is on the city council's agenda at a meeting at City Hall on Tuesday, Sept. 15.
The move follows calls from Lacey residents for closer scrutiny of the regional housing agreement. During public comment at work session on Sept. 8, some residents raised questions about housing oversight, provider accountability and information available.
City staff recommends authorizing City Manager Rick Walk to sign the agreement with Olympia, Tumwater and Thurston County. The $3 million for the project would come from the city's general fund.
The agreement returns after the council requested changes during a review on Sept. 1. Partner jurisdictions have since agreed to the revisions, including provisions for project reporting, behavioral health services and regional support for funding requests for Maple Court’s conversion to permanent supportive housing.
The latest agreement requires the Low Income Housing Institute (LIHI) to submit quarterly activity reports to participating jurisdictions. Sea Mar Community Health Centers or an equivalent provider must provide behavioral health services. Two case managers must also have offices at Franz Anderson.
The council can approve the amendment, request further revisions or reject it. Any additional changes must return to the other partners for concurrence.
Council member Lenny Greenstein urged people to contact the council or attend the Sept. 15 meeting. In a Facebook post on Friday, Sept. 11, Greenstein opposed spending Lacey funds on the Olympia project.
“Time to speak up is running out. On 9/15 the Lacey Council will vote to waste $3M of your money,” Greenstein wrote. "They will vote to give this money to LIHI, or Low Income Housing Institute, for a housing project in Olympia."
Greenstein also questioned further funding involving the LIHI, referring to concerns about its management of Maple Court in Lacey.
Council member Maren Turner also addressed the pending decision, saying more accountability and clarity about services are needed before final approval.
“We are asking for tougher accountability measures and more clarity regarding services before any final agreements to support the Franz Anderson housing proposal,” wrote Turner on Facebook.
The meeting begins at 6 p.m. at Lacey City Hall, 420 College St. SE. Comments can also be emailed to council@ci.lacey.wa.us.
2 comments on this item Please log in to comment by clicking here
nkhloly
"Greenstein opposed spending Lacey funds on the Olympia project."
Councilmember Greenstein, this is not an "Olympia project". Olympia, Tumwater, and Thurston County are sharing project costs to address a regional housing emergency. And Olympia has designated valuable land for this purpose.
It's embarrassing to see an elected representative shirk responsibility. The balkanized thinking that is reflected in your comment is not just short-sighted, it is a serious violation of many years of inter-jurisdictional coordination. and carefully negotiated commitments. In this case sir, you are the problem.
Please move past old protectionist ideas and work with others to actually make progress--for our community, for our families, and for our future.
Tuesday, September 15 Report this
JW
Thank you Lacey city council for standing up to writing yet another blank check for a no-rules Jungle in 4 walls.
Defund LIHI, Interfaith and other NGOs, arrest and trespass the Jungle dwellers.
Tuesday, September 15 Report this