Title
Approval of a Resolution Authorizing a Funding Agreement with Valeo Vocation for Operations at Franz Anderson Tiny Home Village
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution authorizing a funding agreement with Valeo Vocation for operations at Franz Anderson Tiny Home Village.
Report
Issue:
Whether to approve resolution authorizing a funding agreement with Valeo Vocation for operations at Franz Anderson Tiny Home Village.
Staff Contact:
Kim Kondrat, Homeless Response Manager, Community Planning & Economic Development, 360.742.6448
Presenter(s):
None- Consent Calendar Item.
Background and Analysis:
Franz Anderson Tiny Home Village was established under Governor Inslee’s Safety Initiative in 2022 in an effort to clear the State’s Rights of Ways of encampments by providing housing. Fifty tiny homes were constructed and were offered to residents of the Wheeler and Nickerson encampments in Olympia, off the I-5. Originally managed by OlyMAP from 2022-2025, management was transitioned to Valeo Vocation in July of 2025, with the addition of an optional workforce program available to residents. With the closure of Plum Street Village (another City of Olympia tiny home village), 19 of larger Plum St tiny homes were moved to Franz Anderson village spring 2026, replacing some smaller units and expanding the number of residential units to 60.The footprint of available land for Franz Anderson was also expanded to the entire parcel.
Franz Anderson provides a low barrier option for persons experiencing homelessness and also increases pathways to unhoused individuals to employment with an effective case management system and code of conduct. This tiny home village is funded mostly by the Encampment Resolution Program through the Department of Commerce (formerly the Safety Initiative as mentioned above) thus only able to provide shelter to those specified by Department of Commerce as specified on the ERP Eligibility Criteria.
Continued support is encouraged to continue the forward progress of our homeless response system to provide opportunities for unhoused citizens to stabilize physically and psychologically and get out of survival mode to pursue possible pathways out of homelessness. This decreases calls to First Responders by providing shelter/housing and opportunities to calm down before escalating to a level requiring crisis response.
Climate Analysis:
There will be no significant impact to greenhouse gas emissions.
Equity Analysis:
The City of Olympia community benefits by having unhoused folks placed in shelter that gives an opportunity for folks in crisis to stabilize. City First Responders also benefit by fewer calls to respond to crises that result from lack to basic needs. The surrounding businesses and neighboring apartment/house residents are impacted by the increase of foot traffic of unhoused individuals which may lead to increase in vandalism of property, and need for increase security. City departments meet regularly with neighboring businesses and Valeo to address concerns and collaborate in a concerted effort to minimize the negative effects of having a shelter provider in close proximity to their locations. They are positively impacted by Quince Street Village.
Neighborhood/Community Interests (if known):
Homelessness has been at the top priority of concerns that have come through the Public Opinion and Community Engagement Survey distributed to Olympia citizens. There is high community interest in the City’s compassionate yet accountable approach to homelessness as declared in the One Community Plan. Franz Anderson Tiny Home Village supports this approach. City staff and Valeo staff have ongoing contact with surrounding businesses and coordinated City response with the Olympia Police Department. Improved Kitchen and Community spaces were recently moved from another ERP village to enhance community livability and events. Residents who participate in the HIRE (employment) crew and who are compliant with the code of conduct are eligible to be moved to an available larger unit for housing. Enhanced case management is available to delve into other housing options outside of the tiny home village.
Financial Impact:
Operations of Franz Anderson for the FY 2026-27 increases to $1,314,389 from $1,251,799, due to the 5% COLA. Most of that will be covered by ERP funds from Commerce with the balance covered by Olympia Home Fund.
Options:
1. Move to approve resolution authorizing a funding agreement with Valeo Vocation for operations at Franz Anderson Tiny Home Village.
2. Modify Resolution Authorizing a Funding Agreement with Valeo Vocation for operations at Franz Anderson Tiny Home Village.
3. Don’t Approve Resolution Authorizing a Funding Agreement with Valeo Vocation for operations at Franz Anderson Tiny Home Village.
Attachments:
Resolution
Agreement
Financial Table