Thurston Regional Housing Council gives thumbs up to Family Support Center project

The Thurston Regional Housing Council (RHC), on Wednesday, recommended approval of a $1 million funding award to the Family Support Center (FSC) for a new affordable housing project. Now it's up to the Board of County Commissioners. 

The FSC is seeking funding for a three-acre parcel adjacent to its most recent housing development, The Landing, in Olympia, to develop low-income supportive housing.

The initial plans include two-bedroom units, a three-bedroom single-family home, and a one-bedroom single-family home, with an eight-year timeline to expand the project into a larger affordable housing development.

The FSC had submitted a request for $1 million from the RHC's Opportunity Fund.

In January 2024, RHC created the Opportunity Fund to allow review and possible funding of projects that arise and need funding outside the annual request for proposals process. Eligible activities include acquisition, rehabilitation with acquisition, and preservation of manufactured home parks.

The Thurston Affordable Housing Advisory Board (TAHAB) recommended the funding request, though the decision was not unanimous. The board chair, Charlia Messinger, noted they had a thorough discussion and resolution around the concerns raised by some board members about concentrating low-income housing in one area.

The $1 million funding request partially covers the $1.5 million property acquisition cost. The remaining financing will come from seller-provided financing. FSC states that the full $1 million is needed to maintain a cost-neutral budget for the immediate use of the existing structures and ensure the income generated from the PSH properties is sufficient to cover the loan balance, operational expenses, and ongoing maintenance.

TAHAB recommends fully funding the proposal with the following conditions:

• Conduct a Housing Quality Standards inspection on the four existing structures and provide the results to TAHAB before closing.
• Provide the lease agreements for the existing tenants to TAHAB before closing.
• Provide a relocation plan for the existing tenants to TAHAB before closing.

Before approving the recommendation, RHC staff noted that fully funding the $1 million request would leave the Opportunity Fund with a balance of approximately $400,000 until additional funds are anticipated in 2025.

In response to Lacey Councilmember and RHC member Carolyn Cox's inquiry about replenishing the Opportunity Fund, Affordable Housing Program coordinator Jacinda Steltjes said the funding would be replenished at the beginning of 2025.

She reminded the board that the funding is projected amounts collected from sales and use tax, including the Home Fund. The funding comes in continually, and more will be available for the next program year starting in January.

The RHC unanimously approved the funding award for the FSC project and recommended that the Thurston Board of County Commissioners also approve it, with the condition that the conditions outlined by the TAHAB be included in the award contract between FSC and the county.