Here’s why the city of Lacey will sell property near Mullen Road for $1

Lacey City Council voted unanimously Tuesday night to move forward with an affordable housing project.

The action they took will sell property in the 5000 block of Mullen Road Southeast to the Housing Authority of Thurston County for $1. The city acquired the property in June from the LOTT Clean Water Alliance, the area’s sewer utility, for about $450,000.

Why sell it for $1? To ensure that the project remains affordable housing, which is expected to offer housing to residents who earn 80% or less of area median income (AMI). The most recent AMI is $93,984, so tenants would have to earn less than $75,000.

“Staff recommends the sale price to be $1 (one dollar) in recognition of the affordability requirements and public benefit derived from the partnership with HATC (Housing Authority of Thurston County),” city information reads. “The covenant and memorandum of understanding will ensure an affordable housing project and community engagement process consistent with community priorities.”

The city and the housing authority will enter into a memorandum of understanding (MOU) on the project.

“In that MOU you will see an additional requirement and commitment from the housing authority to engage the community in a neighborhood meeting prior to formal application to the city for development,” Community and Economic Development Director Vanessa Dolbee told the council on Tuesday.

The MOU also spells out that if the transfer of the property is not completed on or before Sept. 25, 2025, the MOU will terminate, although the parties may “mutually agree to extend any deadline.”

The presentation to the council provided no details about the forthcoming housing project, although it has been discussed before in these terms: 60 cottage-style units spread across a five-acre site at 5025 Mullen Road SE.

“I am looking forward to having more affordable housing in Lacey,” Mayor Andy Ryder said.

“We’re looking forward for all of it to come online because it’s desperately needed in our community.”

This story was originally published August 20, 2025 at 5:00 AM.