New permanent supportive housing facility coming to Olympia

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The Thurston Regional Housing Council (RHC) led collaboration across Thurston County jurisdictions to complete the funding of a brand-new permanent supportive housing facility in Olympia.

In early 2023, the City of Olympia issued a public solicitation to construct the facility on property owned by Olympia on Franz Anderson Road. The Low Income Housing Institute (LIHI) was selected to build and operate the permanent supportive housing facility.

The majority of the $28.8 million needed to fund construction came from Washington state Low Income Housing Tax Credit Equity and the Washington state Department of Commerce Housing Trust Fund, and the remainder was funded through regional collaboration led by Thurston Regional Housing Council.

Thurston County contributed $3.5 million, the City of Lacey contributed $3 million, and the City of Tumwater contributed $275,000 to the funding. The RHC also awarded $1.5 million to the construction through the annual request for proposals funding process.

The facility will include 70 units for couples and singles, one unit for an on-site property manager, common space areas and some parking. Tenants of the building will be offered supportive services from the LIHI and SeaMar.



Permanent supportive housing is defined as low barrier, subsidized, rental housing for extremely low-income populations experiencing homelessness or at risk of homelessness. It’s paired with on-site or off-site voluntary services designed to support a person living with a complex and disabling behavioral health or physical health condition.

“Although this new facility will be located within Olympia city limits, permanent supportive housing facilities like these serve the broader Thurston County community and provide lasting results,” Michael Althauser, RHC vice chair and Tumwater city councilmember, said in a news release. “Thurston Regional Housing Council saw the regional benefit and worked together to ensure the project would be funded.”

In 2022, the City of Olympia and Thurston County purchased property on Franz Anderson Road for use as housing. Franz Anderson Tiny Home Village was built on one parcel and opened in the summer of 2023. The remaining five parcels are where the new facility will be built.

“Permanent supportive housing is essential for building a community where no one is left behind,” Emily Clouse, RHC chair and Thurston County commissioner, said in the release. “This project represents a collective commitment to meeting the needs of our most vulnerable neighbors by addressing the root causes of homelessness with dignity, compassion and real solutions.”

Construction of the permanent supportive housing facility is expected to begin in September 2025 and be completed after 15 months of construction.