Thurston County to help save affordable housing units on Olympia’s west side
Thurston County wants to help save 112 units of affordable housing on Olympia’s west side with a nearly $1.4 million award.
The units are located at Courtside Apartments, which is between Yauger Park and MultiCare Capital Medical Center.
Vital Housing LLC, a Seattle-based-company, asked the county for acquisition and preservation of the property in April. In their application, the company said the property will lose its affordability restrictions and convert to market rate by January 2027 without intervention, and the company said rents may increase by over $350.
“This project is needed to ensure housing stability for the existing residents who call Courtside home, but also to ensure Olympia has an adequate supply of affordable housing for the lowest income residents of Olympia,” Vital Housing said in its application.
The Board of County Commissioners unanimously approved issuing a commitment letter for the project last month.
The project is just one of many that the county has in the pipeline as it pursues its affordable housing goals.
Thurston County needs about 55,000 new units of housing by 2045 to accommodate growth expected by the Washington State Department of Commerce, according to county documents. Over 16,000 units must be affordable for households that make 30%-80% of area median income, the state’s projections show.
Alex Persse, the county’s Affordable Housing Project manager, said county staff will ask the commission to approve a contract with Vital Housing once the project is fully funded and the company meets all pre-contract requirements.
Vital Housing initially asked for nearly $2.8 million to preserve 211 units of affordable housing, according to its application. However, the Regional Housing Council, which includes representatives from the county and local cities, recommended the county fund nearly $1.4 million instead.
The RHC decision followed a recommendation from the RHC’s Affordable Housing Advisory Board, which reviewed and scored the proposal.
There’s more in the works
On June 18, the county commission approved awarding funding for eight affordable housing projects that total nearly $6 million. The following descriptions were taken from county and RHC documents.
▪ Behavioral Health Resources received a $950,000 commitment for its “B&B Apartments Redevelopment Phase 1” project. This project will convert an existing 8-unit complex at 2104 State Ave. NE in Olympia into 18 units of permanent housing.
▪ Homes First received a $635,969 commitment for its “Four-Plex Acquisition and/or Rehabilitation for Affordable Housing” project. These funds will go towards purchasing a four-plex on Franklin Street in Olympia.
▪ Homes First also received a $165,000 commitment for its “O’Farrell Accessory Dwelling Units (ADUs) Single Family Home” project. This money will support the purchase of four prefabricated ADUs to be placed on a previously purchased property at 721 O’Farrell St. SE, Olympia.
▪ And Homes First received a $375,000 commitment for its “Single-Family Home Acquisition for Low Income Tenants” project. These funds will help Homes First buy a single-family home on Deerbrush Loop in Lacey.
▪ Low Income Housing Institute received a $1.5 million commitment for its “Franz Anderson Permanent Supportive Housing” project. These funds will allow for the construction of 71 studio and one-bedroom permanent supportive housing units for very low-income, single adults, on the 500 block of Franz Anderson Road SE in Olympia. Many occupants will move there from a nearby tiny home village and from encampments on state property as part of the state’s Encampment Resolution Program, formerly known as the Rights-of-Way initiative.
▪ Low Income Housing Institute also received a $1.1 million commitment for its “Maple Court Permanent Supportive Housing” project. This money will cover construction and design costs to convert a former hotel into 124 units of permanent supportive housing. The building, located at 8200 Quinault Drive NE in Lacey, currently serves as transitional housing for people the state relocated from its rights of way.
▪ South Puget Sound Habitat for Humanity received a $560,000 commitment for its “Tâlícn Townhomes Phase 1” project. This amount will fund the construction of seven duplex townhouses at 1150 73rd Ave. in Tumwater.
▪ South Puget Sound Habitat for Humanity received a $700,000 commitment for its “Yelm Longmire Phase 2” project. These funds will be used to construct 14 homes at 407 Longmire St. NW in Yelm.
The Courtside Apartment project was proposed along with these other projects, however the RHC delayed recommending this project to the board until Vital Housing shared additional information.
But wait, there’s still more
Thurston County plans to spend millions of dollars to support new affordable housing projects over the next three years.
The county’s Regional Housing Council has resumed scheduling projects to receive funding in the years ahead after stopping the practice in 2021 due to the COVID-19 pandemic.
The Affordable Housing Capital Pipeline, as the RHC calls the schedule, can include construction, acquisition and preservation projects proposed by organizations. It’s all part of an effort to meet the county’s housing goals and provide organizations with more “financial confidence” as they pursue their projects, county documents show.
The RHC approved a three-year pipeline on June 26 that followed recommendations from the Thurston County Affordable Housing Advisory Board. The plan includes nearly $3.6 million for various projects in 2025, 2026 and 2027.
Projects are considered for the pipeline after organizations respond to a request for information (RFI). However, placement on the pipeline does not necessarily guarantee they will receive the funding for the project in the given year.
Organizations must still respond to a request for proposals (RFP) in the year their project has been scheduled for consideration and the county commission must vote to approve the awards.
The following schedule has been taken from RHC documents. Persse confirmed the location of the projects that have determined a location so far.
Funding awards scheduled for 2025
- Panza is scheduled to receive $1 million to construct a permanent tiny home village with 30 housing units and a community center. The village is planned for 720 Carpenter Road NE. Panza did business as Quixote Communities but recently rebranded to New Horizon Communities, according to its website.
- Habitat for Humanity is scheduled to receive about $2.1 million to develop 28 senior cottages, 36 micro-townhomes and 48 townhomes. The cottages and micro-townhomes are expected to be 2-bedroom units while the townhomes will be 2–4-bedroom homes. The homes will be located at 3900 Boulevard Road SE in Olympia.
- Homes First is scheduled to receive $300,000 to develop four ADUs at a property on 1702 Hays Ave. NW in Olympia.
- Homes First is scheduled to receive $160,000 to help it acquire two yet-to-be-identified single-family homes in Thurston County. They plan to rent the homes to low-income residents.
Funding awards scheduled for 2026
- Habitat for Humanity is schedule to receive an additional $1.5 million to further their project at 3900 Boulevard Road SE in Olympia.
- The Salvation Army is scheduled to receive nearly $1.2 million to construct 60 new units of affordable housing for senior citizens at a still undetermined location.
- Thurston Housing Land Trust is scheduled to receive $180,000 to help acquire two units of housing to bring into low-income ownership after an interim rental period. The location of the units has not yet been determined.
- Home First is scheduled to receive $500,000 and $250,000 for two separate projects. Both projects call for acquiring yet-to-be-identified single-family homes in Thurston County that can rented out to low-income residents.
Funding awards scheduled for 2027
- Habitat for Humanity is schedule to receive about $1.5 million to further their project at 3900 Boulevard Road SE in Olympia.
- The Salvation Army is scheduled to receive nearly $1.1 million to further its effort to develop 60 new units of affordable housing for senior citizens at a still undetermined location.
- Home First is scheduled to receive two $500,000 awards for two separate projects. Both projects call for acquiring yet-to-be-identified single-family homes in Thurston County that can rented out to low-income residents.
