Permanent supportive housing for low-income individuals to be built on Franz Anderson Road

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Permanent supportive housing will soon be constructed along Franz Anderson Road after Olympia selected the Low Income Housing Institute (LIHI) to complete the project.

Affordable Housing Program manager Jacinda Steltjes was at the city council meeting on Tuesday, May 9, to update the public on the permanent supportive housing project.

According to RCW36.70A.030(19), permanent supportive housing is intended for very low-income individuals and persons with a disabling behavior or physical health condition who are homeless or at imminent risk of homelessness. It operates under a low-barrier entry model.

LIHI proposed building 35 studios and 35 one-bedroom units and is aimed towards accommodating homeless single adults and couples with annual incomes at or below 30% of the area’s median income and will prioritize people relocated from the state rights-of-ways.

Construction is expected to begin in late 2024 and conclude in early 2026.

Map of the Franz Anderson Road project.
Map of the Franz Anderson Road project.

Olympia and Thurston County purchased a 4.4-acre property in 2022.

On February 17, 2023, Olympia released a solicitation of interest from qualified respondents to develop the city-owned property into affordable housing.

All proposals submitted were reviewed by Olympia, Lacey, Tumwater, and Thurston County staff, which led to the selection of LIHI to complete the project.

"It is the first project of this kind and scale to emerge from the Regional Housing Council collaboration," Steltjes added.

The next step, Steltjes said, is to execute a purchase and sale agreement with LIHI. "We will also engage with them around the design, permitting, and construction to make sure that the property and what is produced will meet the needs of those tenants."

To help keep rents affordable, Steltjes said LIHI plans to seek vouchers from the Housing Authority of Thurston County.

"Olympia and the state have invested approximately $250,000 to bring utilities closer to the property, which reduces some of the costs that LIHI will spend to develop it into permanent supportive housing," Steltjes mentioned.

According to Councilmember Dontae Payne, the project construction will cost about $28.2 million. He inquired about the sources of funding.

Steltjes noted that the project was supported by Thurston Regional Housing Council, which cities of Lacey, Tumwater, and Thurston County contributed roughly $6.7 million for the construction.

She also mentioned that LIHI would pursue Housing Trust Fund and apply for Low-Income Housing Tax Credit. Other sources include local, state, and federal funding and traditional financing options like bank or private financing.

Steltjes clarified that two housing projects would occur on Franz Anderson Road: Tiny Home Village on the east and permanent supportive housing on the west.

Updating housing element

Steltjes informed the public that Thurston County is updating the housing element, which involves planning for 34,436 new housing units by 2045. Of this total, approximately 12,000 units are expected to be planned for Olympia.

According to the Washington State Department of Commerce's Housing for All Planning Tool (HAPT), there is a projected need in the county of around 10,415 new housing units for households earning 30% or less of the area median income. Out of this number, an estimated 3,297 units of permanent supportive housing are needed.

Comments

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  • Southsoundguy

    This will solve nothing, but it is an excuse to spend other people’s money and feel important.

    Saturday, May 13, 2023 Report this

  • Larry Dzieza

    I’m in favor of low income housing but do I understand the numbers correctly? $28.2 million to build 70 units?

    If the article is correct, that is $400k per unit. Half of which are studios and other half one bedrooms. And that’s just the construction cost according to the article.

    How does that make sense when a three bedroom house including the cost of land is $500k according to Redfin?

    What are we missing in understanding this?

    Saturday, May 13, 2023 Report this

  • Southsoundguy

    Larry, bits precisely because it’s low income that it costs so much. The government (meaning our tax money) is backing everything up, so the building process will be as expensive as possible.

    Sunday, May 14, 2023 Report this

  • Yeti1981

    For the "why is t so expensive" questions....permit fees, impact fees, taxes, building materials are expensive, building codes above and beyond the necessary, and on and on. The cost of development alone in Thurston County on a typical project can be over $100k. It is expensive because of the time and gymnastics the builders have to manage to meet what the jurisdiction wants.

    Monday, May 15, 2023 Report this

  • Yeti1981

    Bringing back the PJs, interesting.

    Wednesday, May 17, 2023 Report this