Title
Approval of a Resolution Authorizing Submission of a Connecting Housing to Infrastructure Program Grant Application for the Franz Anderson Permanent Supportive Housing Project
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution authorizing submission of a Connecting Housing to Infrastructure Program grant application for the Franz Anderson Permanent Supportive Housing Project
Report
Issue:
Whether to approve a Resolution authorizing submission of a Connecting Housing to Infrastructure Program grant application for the Franz Anderson Permanent Supportive Housing Project
Staff Contact:
Jacinda Steltjes, Affordable Housing Program Manager, Office of Community Vitality/Housing and Homeless Response, 360.753.8482
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
In 2023, the City issued a Solicitation of Interest seeking a development team to build permanent supportive housing at 527 Franz Anderson Road and adjacent parcels. Low Income Housing Institute (LIHI) was selected to construct the project. The City and LIHI are now parties to a Real Estate Purchase and Sale Agreement. The property will be sold to LIHI for $1 in return for it being used as affordable housing for low-income populations in perpetuity.
Franz Anderson Permanent Supportive Housing Project
LIHI will build 70 units for households with incomes at or below 30% area median income by household size and one unit for an on-site property manager. The project will implement a low-barrier model and will offer optional supportive services for single adults and couples who are literally homeless upon entry. Services will be offered by LIHI and SeaMar. The project will cost $28,759,623 to construct.
Low Income and Homeless Households
There is an immense need for deeply affordable housing for Olympian households whose income is 30% or less of area median income. Per the Growth Management Act, the City of Olympia is required to plan to accommodate future population growth with a variety of housing. Thurston Regional Planning Council estimates Thurston County will need 3,594 permanent supportive housing units by 2045 to accommodate future population growth. Of these, 818 are projected to be needed in Olympia. The Franz Anderson project will add 70 permanent supportive housing units to Thurston County's Homeless Crisis Response System.
Connecting Housing to Infrastructure Program (CHIP)
The CHIP grant opportunity is offered by the Washington State Department of Commerce. The grant supports the development of affordable housing by paying for water, sewer and stormwater utility improvements and/or waived system development charges for new affordable housing units. Cities, counties or utility districts may apply in partnership with a housing developer. The maximum award amount is $1,000,000 this year. Olympia will request $892,142 for LIHI’s Franz Anderson permanent supportive housing project. This request is based off a third-party cost estimate of the costs required to construct new and connect to existing infrastructure.
The City has successfully been awarded two CHIP grants in past years.
Climate Analysis:
The project is seeking funding from the Washington State Department of Commerce’s Housing Trust Fund. This funding source will be needed to construct the project. The funding source requires that all new construction comply with the Evergreen Sustainable Development Standards (ESDS).
The ESDS is a building performance standard required of all affordable housing projects or programs receiving capital funds from the Housing Trust Fund. The ESDS aligns Washington State’s affordable housing investment strategies with environmentally responsible building practices. Green building improves the economics of managing affordable housing and promotes environmental quality while enhancing quality of life for residents. The ESDS was developed in compliance with RCW 39.35D.080 and contains criteria that safeguard health and safety, increase energy and water efficiency, promote sustainable living, and preserve the environment. In the creation of the ESDS, technical experts in the field of sustainable development were chosen to meet and recommend the best existing green building standard; they chose Green Communities. Modifications were needed in order to accommodate the diversity of projects funded by the Housing Trust Fund and to focus the criteria on building practices, codes, climate and communities in Washington State. The ESDS has been reviewed by Housing Trust Fund stakeholders with widespread agreement that this standard is the best first step for affordable sustainable development in Washington State.
Additionally, the project is supported by the City through a discounted purchase price. It will be subject to City code requiring electrification of the building.
Equity Analysis:
The project will serve single adults and couples who are literally homeless or who are ready to exit temporary housing such as Franz Anderson’s tiny home village. Black and brown individuals are over-represented in Thurston County’s Homeless Crisis Response System. According to the 2024 Point in Time Count, 864 people were found to be experiencing homelessness in Thurston County during the one-day count occurring on January 25, 2024. Forty-three percent of those counted experience a disability and 17% were fleeing domestic violence. Approximately 8% of individuals experiencing homelessness were Black, 2% were Hispanic or Latina/o, and 3% were Native Hawaiian or Pacific Islander. In comparison, the U.S. Census Bureau documents Thurston County's population as 3.2% Black, 9.8% are Hispanic, and 1.1% are Native Hawaiian or Pacific Islander.
Neighborhood/Community Interests (if known):
Affordable housing is a top community concern.
Financial Impact:
Applying for the grant on behalf of the project will not have an impact on the City of Olympia.
Options:
1. Approve the Resolution authorizing the submission of a CHIP grant application in the amount of $892,142 for the Franz Anderson Permanent Supportive Housing Project
2. Approve the Resolution authorizing the submission of a CHIP grant application with amendments.
3. Do not approve the Resolution authorizing the submission of a CHIP grant application for the Franz Anderson Permanent Supportive Housing Project.
Attachments:
Resolution