New Olympia neighborhood will have 112 affordable homes. Families can apply soon
A local nonprofit is constructing a new neighborhood with 112 units of affordable housing in Olympia.
The project, located at 3900 Blvd. Road SE, is being led by South Puget Sound Habitat for Humanity.
The Thurston County Board of Commissioners approved a $2 million award for the project at their Tuesday meeting in Olympia. However, the cost of the entire project is far higher. County documents indicate the $2 million will support an initial phase of construction that’s expected to yield 38 units. The total cost for the project is listed at about $60.5 million. Once completed, there will effectively be a new 10-acre neighborhood adjacent to LBA Park and Woods with a mix of two-, three- and four-bedroom homes.
“We are thrilled for Thurston County’s unanimous decision to support affordable homeownership in our community,” said South Puget Sound Habitat for Humanity spokesperson Scott Wild in an emailed statement Thursday. “The $2 million grant will have ripple effects in the region, supporting the workers that drive our local economy by creating permanently affordable homes.”
The development is targeted at people who are seniors, living with disabilities or have low incomes, according to county documents.
The 10-acre parcel will be subdivided into 48 three- and four-bedroom homes, 36 two-bedroom, two-story townhomes and 28 two-bedroom, one-story accessible townhomes, per the documents. A neighborhood center will also be built.
The development also will feature solar panels, car and bicycle parking, electric vehicle charging and access to an Intercity Transit bus line, according to county documents and the project website.
South Puget Sound Habitat for Humanity specializes in creating affordable homes for “qualified homebuyers,” according to their website. Those interested must fill out an interest form to be accepted into the program.
To qualify for the program, interested households must meet the following requirements:
Total household income must be between 50-80% of the area median income. There’s a sliding scale depending on household size. For a household of four, the minimum income is $61,400 and the maximum is $98,250, according to the program website.
Eligible participants also must qualify for a home mortgage subsidized up to 33% of their gross income. Additionally, participants must not have owned a home in the last three years. Lastly, they must attend an information session.
“State, local, and private funds help us ensure that homeowner mortgage payments are affordable to each household,” Wild said.
Those interested in signing up for an information session can visit spshabitat.org.
The nonprofit is not yet accepting applications for the 3900 Blvd Road project. Their website indicates applications will be accepted later this year. The process from application to move in takes about one year.
“Our goal is to start taking homeownership applications for 3900 Boulevard this summer, with homebuyers ready to close 10-18 months later, depending on construction progress,” Wild said.
On-site excavation started in April, and initial ground clearing, grading and sewer work followed, per the project website. On- and off-site work is expected to continue through summer 2026, the website states.
Once the infrastructure phase is complete, South Puget Sound Habitat for Humanity will build 38 homes that are closest to Boulevard Road, Wild said. Two more construction phases with 38 and 36 homes will follow, he added.
“We expect each of the three phases to take approximately one year,” Wild said. “… Several factors — such as funding, weather, supply chains, etc. — may impact this planned timeline.”
Thurston County board approves more awards
In addition to the 3900 Blvd. project, county commissioners approved eight other awards Tuesday. Six of the awards are for preserving single-family homes, and two are for preserving multifamily homes. All nine awards totaled just under $7 million.
The largest award goes to Vital Housing. This Seattle-based company is being given $3 million to preserve 210 units at Courtside Apartments, an affordable housing complex between Vaguer Park and MultiCare Capital Medical Center in Olympia.
Other organizations receiving awards include Rebuilding Together Thurston County, Thurston Housing Land Trust, Homes First, Foundation for the Challenged and Interfaith Works.
“Once a project is fully funded and has met all pre-contract requirements, the Office of Housing and Homeless Prevention will come back to the board to request authorization to sign a contract for each award,” Jen Freiheit, Thurston County Public Health and Social Services Director, told the board on Tuesday.
The funding for the awards comes from a mix of local, state and federal funding, including Local Home Funds, Substitute Senate Bill (SSB) 5386 document recording fees, Substitute House Bill (SHB) 1406 sales tax, and the federal HOME Investment Partnership Program, according to a May 26 Regional Housing Council news release.
“(South Puget Sound) Habitat for Humanity is building those homes and selling them,” Tom Webster, Thurston County Office of Housing and Homeless Prevention Manager, told the board at a May 19 meeting. “There’s no ongoing cost for (South Puget Sound) Habitat for Humanity kind of construction projects.”
The RHC is an advisory body with voting members from the cities of Olympia, Lacey, Tumwater and Yelm as well as Thurston County. The council unanimously voted to recommend the board approve the funding during an April 22 meeting following a recommendation from the Thurston Affordable Housing Advisory Board.
The county accepted the applications through a Request for Proposals process from Jan. 23 to March 6, per the release.
The city of Olympia sold the 10-acre property to Habitat for Humanity for $1 in 2023, The Olympian previously reported.
