Thursday, October 1, 2026
Two Lacey properties long used for affordable housing have been transferred to nonprofit Homes First, in a deal that includes a clause to revert the land to Thurston County if it ceases to serve low-income residents.
The Thurston County Board of County Commissioners unanimously approved the transfer during their public meeting on Tuesday, Aug. 19.
The property at 5501 SE 32nd Court carries parcel number 83450001400. The adjoining site at 5505 SE 32nd Court carries parcel number 83450001500.
Both parcels are governed by Ordinance 16533, adopted on June 17, 2025, which amended County Code Chapter 2.104 to regulate surplus property transfers for affordable housing in compliance with Revised Code of Washington (RCW) 39.33.015.
Capital Projects Planning Manager Rick Thomas said state law authorizes municipalities to transfer, lease and dispose of surplus real property for a public benefit purpose.
He said “public benefit” is defined under RCW 39.33.015 as affordable housing for low- and very low-income households, along with related facilities that provide economic and social stability for low-income people.
“Homes First has a first right of purchase,” said Thomas, recommending the board approve the agreement.
He added, “The property transfer agreement does include a clause that if the property is no longer used for affordable housing, the property will automatically revert back to the county.”
Thomas then outlined the history of the parcels.
The county entered into a lease with Homes First in 2006 for $1 per parcel through 2056. At the start of the lease, 5501 SE 32nd Court was a vacant lot, while 5505 SE 32nd Court contained a residential home.
Thomas said Homes First built and has maintained a four-bedroom dwelling on the parcel and rehabilitated the existing home next door.
Homes First is a 501(c)(3) nonprofit corporation with a mission “to create and maintain safe, healthy and affordable rental homes.”
The 2006 lease granted the nonprofit the first right of purchase once the 50-year term ended, with options for a 10-year renewal or compensation for the value of improvements.
Because the parcels were already designated surplus and Homes First’s right of purchase had been established, Thomas said the permanent transfer was the appropriate course of action under Ordinance 16533.
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JulesJames
I don't see a healthy exit strategy here. The idea of permanent low-income housing fails to comprehend these units will need gut-to-the-studs renovation every couple of decades. That is empty structure kind of work. If there is no higher rent incentive, there is no incentive to improve the structures. They just gradually degrade. Eventually they become dilapidated slums not worth the rent at any price. Plenty of pain ahead for neighbors and tenants. The NGO? It will pay itself well and likely be long gone when that money is needed for renovation.
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