RHC considers converting hotels into permanent supportive housing

The Regional Housing Council (RHC) discussed its interest in purchasing a hotel for use as permanent supportive housing at the Lacey City Council meeting last Thursday, Oct. 28.

Thurston County Housing and Homeless Prevention Manager Tom Webster shared that the RHC aims to add 150 to 200 affordable housing units. Webster said their goal is to fill in the demand for transitional housing, “It really creates a bottleneck to move people from shelter to permanent supportive housing.”

Instead of focusing on a specific group, the RHC wanted to provide affordable housing units to a wider range of people. With this, the housing council is looking into different strategies to reach their goal such as purchasing a hotel. Webster confirmed, “The county and the city of Lacey are currently investigating the possible acquisition of a hotel.”

For this project, the RHC plans to use funds from the American Rescue Plan Act (ARPA) which comes from the county and its jurisdictions. Webster shared that Lacey had even made the commitment to give $6.8 million of their ARPA funds in support of affordable housing.

In addition, the RHC would also need additional funding to turn hotel rooms into living spaces. These include building a functional kitchen and other necessary renovations. Rent collection is also needed to fund the building’s operational cost. To ensure that housing remains affordable, Webster said that the rent for the proposed project should not exceed thirty percent of the county’s median income.

County unsure of pursuing Port-owned hotel

 During the discussion, Mayor Andy Ryder also brought up the issue with the Oyo Hotel in Tumwater, and whether the county would pursue its purchase. Webster explained that they continue to face legal setbacks with the Port-owned property in Tumwater since the Federal Aviation Authority prohibited its use for residential purposes.

Aside from the Oyo Hotel, Ryder also shared that they want to look into a hotel in Lacey as a potential site for supportive housing.

In addition, the RHC also considers other strategies to fill the housing gap, which includes building new housing units, although Webster believed that choosing this option might take more time. The county staff also acknowledged that there are still a lot of details that they needed to work on before they can finalize the project.