Regional Housing Council recommends $51,562.69 emergency repair funding for Sandy's Flats

The Thurston County Regional Housing Council on Wednesday recommended that the Board of County Commissioners contract $51,562.69 in homeless services emergency funds to Interfaith Works to repair a permanent supportive housing unit at Sandy's Flats that was damaged by fire.

The request was presented by Jackie Velasquez, representing the Homelessness Advisory and Support Board (HASAB). Velasquez told the council the damage was limited to a single unit and that no people were harmed. "It was a fire. Thankfully, no living beings were harmed, and the damage was isolated to a single unit," Velasquez said. She said Interfaith Works asked to use the RHC emergency fund instead of filing an insurance claim because a claim would likely raise insurance premiums dramatically and would exhaust the provider's contingency funds.

Council members discussed the purpose and remaining balance of the emergency fund before voting. An RHC member who identified the fund's purpose said, in part, "I think this is kind of exactly what we sort of designed this thing for — one-time instances where...people are in crisis who are housed in some of these units." County staff confirmed the emergency fund budget for the fiscal year began July 1 with $200,000 available; the staff member noted about $150,000 remained available for the rest of the year.

Members asked for clarification about the cause of the fire and insurance impacts. Velasquez said staff determined that a resident experiencing a behavioral crisis started the fire in the unit's restroom, and that the resident had been exited from programming. She said providers statewide have reported insurance premium increases even without claims and that premiums for permanent supportive housing are "skyrocketing by up to 400%," creating reluctance to submit claims for major damage.

After questions, RHC member Michael moved the recommendation that the Board of County Commissioners contract $51,562.69 to Interfaith Works for unit repairs at Sandy's Flats; the motion was seconded and passed unanimously. The RHC asked staff to relay thanks to HASAB for reviewing and recommending the request.

Why it matters: The council's emergency fund is intended to cover high-cost, one-off repairs that could threaten a provider's ability to continue housing operations if covered by an insurance claim. Council members said using the fund in this case preserves Interfaith Works' insurance standing and prevents depletion of the provider's contingency funds, but also underscores broader system challenges: providers report rising insurance costs and limited behavioral-health supports for residents in permanent supportive housing.

What happens next: The RHC's recommendation will be forwarded to the Thurston County Board of County Commissioners for contract authorization and payment, per normal county contracting procedures. The council directed staff to pass along the HASAB recommendation and to continue monitoring the emergency fund balance.

Ending note: Council members expressed sympathy for the resident affected and noted this incident as an example of gaps in behavioral-health services that can affect housing stability.