Jacinda Stelges updated the Regional Housing Council Dec. 10 on the Franz Anderson permanent supportive housing project in Olympia, a proposed 71-unit development intended primarily for households at or below 30% AMI. The developer, Low Income Housing Institute (Lehigh), notified staff in mid-2025 that expected project-based voucher support from the housing authority and certain Apple Health & Home operating dollars may be unavailable, producing a projected first-year operating shortfall of roughly $285,500.

Lehigh requested that, if funders and jurisdictions agree, the project be allowed to adjust the unit mix so roughly 35 units would serve households up to 50% AMI while the remaining units continue to target lower AMI or be supported by vouchers that may become available. Stelges said services would remain project-wide and that changing the mix is intended to produce a narrow positive cash flow that could attract tax-credit equity; without equity the state tax-credit award and roughly half the project’s capital funding (estimated at about $15 million in equity) could be at risk and the project might not proceed.

Council members raised operational and equity concerns: Carolyn Cox asked whether mixed AMI projects preserve wraparound services for the most vulnerable residents; Stelges said services would be provided project-wide and that Lehigh is exploring supplemental vouchers (for example, VASH for veterans) to support lower-income units. Members also asked what would happen if the council or jurisdictions decline the change; Stelges said that without a tax-credit investor the project faces the risk of not moving forward, which would leave the community without planned units.

Stelges asked jurisdictions to review the Lehigh request and to be prepared to discuss the proposal at the RHC’s Jan. 28 meeting. She offered to meet with individual councils and provide the project’s pro forma and other materials to inform jurisdictional decisions. The RHC did not vote on the request on Dec. 10; staff will return with a formal request and documentation in January.