Tumwater allocates $275,000 from ARPA funds to Franz Anderson housing project

Tumwater city council agreed to allocate $275,000 from the American Rescue Plan Act (ARPA) funds to a permanent supportive housing project located along Franz Anderson Road in Olympia during a meeting held on Tuesday, December 13.

The city has $550,000 from the ARPA funds that need to be used for a Regional Housing Council (RHC) affordable housing project. The council agreed to allocate half of this amount and wait for another 60 days to see if another housing project in Tumwater is going to get funded through the Rapid Capital Housing Acquisition (RCHA) funds.

Thurston County affordable housing program coordinator Jacinda Steltjes explained that the RCHA funds would require a 5% local match, so the other $275,000 could be used for the local match.

She said that the application for RCHA is due in early January and is confident that they will hear from the state whether Tumwater got the award or not in two months. She clarified that she would not know what housing project the RHC is considering until tomorrow when the RHC meets but assured the council that the project is in Tumwater.

Councilmembers Michael Althauser and Charlie Schneider considered using the entire $550,000 for the Franz Aderson project, but this was opposed by council member Joan Cathey who suggested holding on to the other half for a hotel conversion project such as the one looked at for OYO Hotel.

Althauser offered to compromise by waiting 60 days to see if something comes up from the RCHA fund.

Around 40 to 70 housing rental units will be built on the 6.2-acre Franz Anderson property to house primarily homeless, low-income single adults.

Olympia purchased the site for $1.65 million in March 2022 with the help of Thurston County. Steltjes explained that neither Olympia nor the RHC will manage the operations of the site as Olympia, who is the legal owner of the site, is looking for a developer to operate the site.

Steltjes said that the project costs approximately around $23 million and will potentially be funded through ARPA funds from Thruston County and Lacey, Housing Trust Fund, and Low-Income Housing Tax Credits. Thurston County and Lacey are likely to commit $3.5 million, according to Steltjes.