New affordable housing complex coming to east Olympia. Here’s what to know
Update: On Tuesday, the Thurston County Board of Commissioners unanimously approved a $950,000 contract with Behavioral Health Resources to help fund the construction of 19 units of new affordable housing in east Olympia.
The total project budget is more than $6 million, Eric Jensen, Director of Finance and Interim BHR Chief Executive Officer, told The Olympian.
“This project wouldn’t be possible without the generous grants and funding at federal, state and local levels,” Jensen said in an emailed statement.
Residents in the existing apartments have been moved to other BHR units as they have become available, Jensen said. The few remaining residents will be moved in the near future, he added.
Demolition and construction is expected to start this summer, Jensen said. The construction process is expected to last about a year, he said.
Initial story: Nineteen units of new affordable housing will replace seven aging apartment units in east Olympia.
The new units will be located at 2104 State Ave. NE, which is near the busy intersection of Fourth Avenue East and Pacific Avenue Southeast.
Behavioral Health Resources, a mental health care provider, is spearheading the project, with the intention of serving people struggling with mental health and substance use disorders, according to Thurston County documents.
To fund the project, BHR has requested $950,000 from the county. The Board of County Commissioners will vote on a contract with BHR on Tuesday.
The units will be reserved for people with incomes below 30% and 30-50% of the area median income, county documents show. Thurston County’s median household income reached $96,317 in 2024, according to the latest available data from the Thurston Regional Planning Council.
Four units will be set aside for people experiencing homelessness as well. All the residents will be offered support services through the BHR outpatient programs, per the documents.
The funding from the county comes from its home fund, a sales tax of 0.1% that generates roughly $5 million a year, according to the county’s website. The tax applies throughout Thurston County except in the cities of Olympia and Tenino, which had their own home funds prior to the county.
If approved, the contract term with Thurston County is expected to start on May 29 and end on May 28, 2027.
The Thurston County Regional Housing Council recommended the project be funded in 2024, and the Thurston County Board of County Commissioners subsequently approved a preliminary funding award that same year.
The RHC is an advisory body that includes elected representatives from the county as well as the cities of Olympia, Lacey, Tumwater and Yelm. The council is a means for the jurisdictions to collaborate on increasing the amount of affordable housing and reducing homelessness in the region.
The new two-story complex will include 11 studios and eight one-bedroom apartments, according to City of Olympia planning documents.
Concept drawings show four main structures will be built around a center courtyard, and a parking lot will be constructed on the eastern side of the property.
Two buildings with a total of seven apartments currently sit on the 0.37-acre site.
This story was originally published May 4, 2026 at 5:00 AM.
