Developer pitches 400‑square‑foot ‘tiny home’ village on county land as low‑cost housing option

A Longview developer told the Cowlitz County Board of Commissioners Thursday he is seeking county land and a public‑private arrangement to build a compact “tiny home” community aimed at lower‑cost permanent housing, but commissioners asked for more legal and fiscal detail before proceeding.

Larry Wood described a proposal to lease county developable land (he discussed the fairgrounds and other county‑owned parcels as possibilities), build 400‑square‑foot dwellings priced at an estimated $70,000–$75,000 each and limit the developer’s profits during construction. Wood said he would seek a long land lease — he suggested 40 years in concept — with the county keeping ownership of the land and the developer securing financing to build the homes. He estimated a debt service payment of about $610 per unit at a hypothetical 6.5% interest rate and said that, under his model, rent could be in the “$700s,” which he said would be affordable to people currently priced out of the local market.

Wood said he expects construction costs for a 400‑square‑foot unit to be in the $70,000–$75,000 range, plus an allowance of roughly $10,000 per unit attributed to a shared clubhouse and community facilities. He also said he had consulted lenders and received preliminary feedback that a debt service coverage ratio of about 1.35–1.4 would be typical for a credit union lender in this market. Wood said he would personally sign for project financing and that he was willing not to take developer profit during the construction phase.

He discussed legal and cost drivers for the project, including prevailing‑wage requirements. Wood said he sought a legal opinion that prevailing wage obligations applied to underground work but would not automatically require prevailing wage for above‑ground production housing under the scheme he proposed; he told the board counsel had provided guidance on that point.

Commissioners raised multiple concerns: the legality of a long low‑cost land lease and whether a nominal rent or $1‑per‑year lease would be considered an impermissible gifting of public funds; the county’s exposure to long‑term maintenance and capital replacement costs; and whether the county should operate or own rental housing at all. Commissioner Bloom warned that infrastructure (roofs, plumbing, electrical) and routine capital needs would require ongoing funding and expressed concern about handing the county a maintenance responsibility after decades. Commissioner Farrell and others said the key driver for residents would likely be the low monthly rent rather than finishes.

Wood and his architect, Dave Bridal, provided examples of his past residential projects and preliminary site sketches showing how roughly 30 units could be placed on about three acres; they said duplex configurations and different lot arrangements could change density. Wood said he had discussed potential partnerships with nonprofit housing providers but preferred a for‑profit structure to make lending feasible; he also suggested a future transfer to a nonprofit housing authority was possible after stabilization.

No vote or formal commitment was taken. Commissioners asked staff to research legal constraints (including gifting concerns and property‑leasing options), prevailing wage interpretations and possible county parcels, and to return with information. Wood said he would continue refining cost details and said he welcomed further conversations.