Council Approves Interlocal Agreement for Franz Anderson Permanent Supportive Housing Project

During their December 7 meeting, the City Council authorized the City Manager to sign an interlocal agreement with the cities of Olympia and Tumwater, and Thurston County for the Franz Anderson permanent supportive housing project.

Background

The Franz Anderson Road project, located in Olympia, was awarded funding through the Washington State Rights-of-Way Safety Initiative to house individuals living in the Washington State Department of Transportation right-of-way. The first phase of the project included 50 temporary tiny shelters which have been installed and are currently occupied.
The second phase of the project includes the construction of 71 units (35 studio and 36 one-bedroom) of permanent supportive housing on the site. Residents of the tiny shelters will move into the permanent supportive housing after construction is completed. The project will house the residents of the Franz Anderson Tiny Shelter Village and those who are exiting Maple Court until it is converted from an enhanced shelter into permanent supportive housing.

To support the initiative, regional partners including the City of Tumwater and Thurston County are transferring a portion of the funds received through the American Rescue Plan Act of 2021 (ARPA) through the Coronavirus State and Local Fiscal Recovery Funds
(SLFRF) to the project.

Approval of the interlocal agreement will formally transfer the City of Lacey’s commitment of $3 million within the 2023 budget to support the construction of the permanent supportive housing. Since the City of Lacey has dedicated its ARPA funding to support the construction of the Lacey Police Station, Lacey’s transfer will be funded from the general budget.