Jurisdictions weigh Lehigh’s proposed unit‑mix change for Franz Anderson housing project
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Summary
Lehigh has asked to shift half of the Franz Anderson project’s 70 units from 30% AMI to 50% AMI to attract an equity investor; jurisdictions and state funders are engaged in ongoing discussions and no local amendments or decisions were finalized.
City and county staff told the Regional Housing Council they are continuing jurisdictional and state coordination over a developer request to change the unit mix for the Franz Anderson permanent supportive housing project.
"The project is permanent supportive housing on Franz Anderson Road, 70 units," Jacinda Stelchos (City of Olympia staff) told members, and the developer’s request would "position about 35 of those units to serve households up to 50% area median income as opposed to all 70 at the 30% area median income." Jacinda said jurisdictions involved (Tumwater, Lacey, Thurston County and Olympia) are still discussing the proposal, and no local decisions have been made.
Public comment earlier in the meeting included a written submission from a service provider (Quinn) who urged the RHC to deny Lehigh’s request and asked members to review written comments submitted previously. "I would strongly encourage the RHC to deny Lehigh's ask as regards to Franz Anderson," Quinn said during public comment, noting concerns about the implications of changing unit affordability levels.
Lacey staff described council discussions and outreach to stakeholders. "The Lacey Council generally provided some direction to the staff to work with Lehigh, to coordinate with the state funders, to make sure that the state funding, like the ERP program and others, will support the unit mix change at Maple Court," Ryan Andrews (City of Lacey staff) said, noting Lacey has not made a final decision.
Staff and managers said the matter involves multiple state funding sources — the Department of Commerce housing trust fund and a Low Income Housing Tax Credit award administered by the Washington State Housing Finance Commission — and that the state is likely to seek local support before approving a unit‑mix change. Jacinda said Lehigh is engaged in conversations with Commerce and the finance commission and that local managers are coordinating with those state agencies.
Members asked what would happen if state funders do not approve the change; staff said the capital side of the project is currently financed and that individual jurisdictions would need to decide how to proceed with their committed funds if the unit mix is not approved. Staff committed to continue coordination and report back as conversations with Lehigh and state funders proceed.
What’s next: staff will update the RHC as Lehigh, local jurisdictions and state funders continue discussions and as any interlocal agreement amendments are proposed.
