Low Income Housing Institute to build 70-unit affordable housing project in Olympia
Olympia is one step closer to having 70 more units of permanent supportive housing for low-income residents of Thurston County.
The Low Income Housing Institute has been chosen to transform the Franz Anderson Road safe parking lot into a permanent structure. Construction will likely start in late 2024 and be completed in early 2026.
Jacinda Steltjes, affordable housing program manager for Olympia, shared the news with the City Council last week. She said the goal is to have 35 studios and 35 one-bedroom apartments for single adults and couples.
It will be an entirely electric facility and the first project of its kind to be supported by the Regional Housing Council since it was formed in 2021, Steltjes said.
Right now, 50 temporary tiny homes that are being constructed just across the street, and the housing complex will replace the RV safe lot that has allowed dozens of people to live in their RVs without being fined.
Steltjes said requests for proposals were due March 27, and officials from Olympia, Lacey, Tumwater and Thurston County all agreed on LIHI as the best fit. The Seattle-based nonprofit already runs Unity Commons Phase I on Martin Way and Billy Frank Jr. Place in downtown Olympia.
LIHI’s plan includes serving those who are without housing or facing that situation. It’s for those whose household income doesn’t exceed 30% of the area median income, which for a single adult amounts to $21,200 annually, Steltjes said.
Steltjes said permanent supportive housing also serves those who have disabling behavioral or physical health conditions. There are few requirements to enter, she said, and support services are made available, but they’re voluntary. There’s no limit to the length of stay, either.
She said Thurston County is in need of 34,436 minimum new housing units by 2045. Of those, a minimum 10,415 need to be affordable housing.
LIHI will work directly with those seeking housing to make the process more streamlined. Steltjes said those who have been relocated through the state rights-of-way initiative — where those living along I-5 were moved — will be the first to be moved in. Many of them were relocated to the tiny home village across the street from the new project.
Council member Lisa Parshley asked Steltjes if the state has any investment in LIHI’s $28 million project. Steltjes said the new project isn’t getting direct funding from the rights-of-way initiative, even though the new housing structure will be on the same site as the state’s tiny home village.
Most of the funding for the project will be handled by LIHI. Steltjes said the nonprofit plans to apply for state funding, as well as submit an application for a portion of the city’s Home Fund dollars. They may also apply for Thurston Housing Land Trust dollars, as well as funds through the Low-Income Housing Tax Credit program. Steltjes said the nonprofit will likely apply for a mortgage bank loan, too.
The city of Olympia and the state contributed $250,000 to bring utilities closer to the property and reduce building costs. On top of that, Thurston County, Lacey and Tumwater are providing $6.7 million to the project, some of which is American Rescue Plan Act dollars.
Tumwater spokeswoman Ann Cook told The Olympian the Tumwater City Council will vote May 16 on a letter of commitment for the project. She said there was unanimous support from the council during its previous meeting, and some ARPA and Local Fiscal Recovery Funds have already been dedicated to the project.
Olympia council member Jim Cooper asked Steltjes to clarify how the property will work alongside the state’s tiny home village. She said it’s better to think about the tiny home village as a short-term solution, and LIHI’s project as a long-term one.
Steltjes said the tiny home village is expected to stay standing for around three years to keep people housed while the permanent structure is built. Once the 70 units are built, the tiny home village will be decommissioned and its residents will be moved across the street. She said the hope is that LIHI will partner with Shelter Resources to build workforce housing and resources for low-income households on the eastside property.
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