Thurston County examines scenarios for potential $5.5 million state 'right of way' share; Unity Commons faces funding shortfall risk

Thurston County staff briefed commissioners on scenarios for the state’s right-of-way initiative — also called the Encampment Resolution Program (ERP) — and the potential allocation the county could receive if the state’s proposed $45 million pool is approved. Staff said the county’s estimated share would be about $5.5 million; final numbers depend on the Legislature’s enacted budget and the Department of Commerce’s allocation.

Tom (county manager) said the county and the cities in the region have been receiving right-of-way funds for several years, and the county currently supports roughly $9.5 million in operating dollars across a range of ERP projects. The state has signaled it will prioritize projects that received state capital funding; staff identified three such projects: Sandy’s Flats (the former Olympia Inn, now permanent housing operated by Interfaith Works), Maple Court (owned and operated by Lehigh), and the Franz Anderson Tiny Home Village (operated by Olympia Mutual Aid Partners). City of Olympia has also indicated interest in funding outreach positions to continue engagement with individuals on rights of way.

Staff presented a notional scenario showing how a $5.5 million county allocation might be distributed and warned that if the state allocation is smaller than anticipated certain operations would face reductions. Commissioners focused on Unity Commons as a project that could face a funding shortfall under constrained state allocations because Unity Commons had previously received funding from multiple pots (right-of-way and other homeless-response dollars). Staff said some projects that were funded by a mix of right-of-way and regular homeless-service dollars may see an overall decrease even if they receive an increase from the consolidated homeless grant side.

Commissioners and staff discussed timing and process: once the Legislature finalizes the budget and the Department of Commerce issues a contract, the county would present the contract to the Board for approval and any subrecipient contracts would subsequently come to the Board. Tom said staff have discussed allocations with City of Olympia and Lacey and expect the Regional Housing Council to develop a regional recommendation after Commerce issues guidance and allocation amounts. The board asked staff to keep communications open with the RHC so that, if the county decides not to accept RHC recommendations for specific projects, the RHC has time to identify alternatives rather than creating service disruptions.

Commissioner Mejia thanked staff for preparatory work and said the proposal gave her greater comfort about how to proceed as Commerce and the Legislature resolve final numbers. Commissioners noted the broader funding environment is uncertain — document-recording fees and state revenue streams have been volatile — and asked staff to provide an overview of which streams are vulnerable to reduction and how that could affect obligations already in place.

Staff framed the presentation as an early, staff-level scenario exercise rather than a final plan; they said the RHC and partner jurisdictions will be engaged as the state provides final guidance.