Olympia Housing and Homeless Response Director Darian Lightfoot reported that the city is making progress in meeting the demand for some 12,000 additional units over the next 20 years.
Despite the optimistic overall report, funding remains a barrier to creating low-income or affordable housing, she reported.
Lightfoot explained that the Washington State Housing Finance Commission's (WSHFC) funding process for affordable housing projects offering two types of bonds - 4% bond and 9% bond - are now very competitive, making it harder to secure funding.
Lightfoot explained that the 4% bond is granted by the state commission to support the development of low-income housing for households at around 60% Area Median Income (AMI). The 9% bond is provided for affordable housing projects targeting individuals or families with very low income or at 30% AMI.
She said in the recent funding round that the 4% bond competition has become highly competitive. Out of 22 applications, only nine were selected for funding. She recounted two applications from Thurston County; neither was selected. One was for 162 units, and one was for 260 units; both were for 60% AMI housing.
"That's 400 units of low-income housing we have projected to have in our community. We don't have the confidence that they will go forward because they didn't receive the bond they needed from the state," Lightfoot told Commissioner Greg Quentin, who inquired about the barriers to creating more units.
In addition, Lightfoot said the lack of immediate support for rapid rehousing is contributing to the increase in homelessness due to the high cost of housing in the state. "We are just seeing many people fall into homelessness, and we are not seeing the units created fast enough for these units to be subsidized for people to enter back home."
At Monday's committee meeting, Lightfoot presented the various efforts that the city has been making to address the housing crisis, including immediate encampment measures, temporary housing solutions, housing preservation initiatives, rental housing programs, permanent housing projects, and partnerships with the region.
Lightfoot considered a success of transitioning folks living in RVs along Ensign Road to Quince Street Village, a 100-unit tiny village managed by Catholic Community Services.
She said Ensign Road is now clear of homeless people and their vehicles. Other encampments on state-owned properties at Lilly and Pacific are already closed.
The encampments at Sleater-Kinney are being closed starting today, and the residents will gradually be relocated to Maple Court, the former Days Inn hotel in Lacey, with 120 units (see other story today).
For temporary housing, the city entered partnerships with organizations:
Lightfoot cited ongoing projects and initiatives related to permanent housing:
Unity Commons Phase 2 – a 60-unit supportive housing building operated by LIHI on Martin Way. She said Phase 1 is expected to be occupied by the end of this year.
Franklin/Olympia (previous Mitigation Site) - the city has just entered into a purchase and sell agreement with 228 Olympia LLLP to construct 81 low-income housing units.
Quince Street – the plan is three years of tiny home operation, then convert to permanent supportive housing.
Franz-Anderson – the city entered into a purchase and sell agreement with LIHI to develop permanent supportive housing.
Lightfoot noted that Lacey and Tumwater contributed funds for the project. "This is more of a regional effort. We see ARPA and general funds from other jurisdictions in this project."
Homes First – purchase five single-family homes and look to build two auxiliary dwelling units.
Boulevard Road project – Habitat for Humanity is developing 120 units to provide homeownership opportunities for seniors on fixed incomes.
Salvation Army – redeveloping their site for permanent supportive housing for seniors.
Rapid Capital Housing Acquisition – Lightfoot said the Department of Commerce dedicated $7.9 million to Thurston/Mason County. The Housing Authority of Thurston County applied to purchase a motel in Tumwater for senior housing.
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Yeti1981
Despite the somewhat rosy picture painted here, let us remember that the City of Olympia has projected that they need to add 700 units per year to meet the goals set by Department of Commerce by 2044. The City also recently reported that in 2022 they added around 300 doors, and they were mostly ADUs.
Thursday, June 29, 2023 Report this