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Commissioners authorize $950,000 local-home-fund contract to redevelop B&B Apartments into 19 affordable units

Thurston County Board of County Commissioners · May 6, 2026
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Summary

The board approved a $950,000 Local Home Fund contract with Behavioral Health Resources (BHR B&B Building LLC) to replace a 7-unit building with 19 affordable rental units, reserving four units for people experiencing homelessness and securing a 20-year affordability period via lien.

The Thurston County Board of County Commissioners voted to authorize a $950,000 contract from the Local Home Fund with Behavioral Health Resources (BHR B&B Building LLC) to redevelop the B&B Apartments into 19 affordable rental units.

Director Jen Freyheit of Public Health and Social Services told the board the redevelopment replaces an aging seven-unit, single-story building with a 19-unit project serving people with incomes below 30% and between 30–50% of area median income, and that four units will be reserved for people experiencing homelessness. Residents will be offered supportive services through the applicant’s outpatient programs. The award requires a 20-year affordability period secured through a lien package.

Commissioners asked how this award interacts with funding pressures for other projects (the Queen Street Village was raised) and staff proposed a work session for further discussion. Commissioner Grant moved to approve the contract and authorized the director to sign the contract and any amendments not exceeding 10 percent; the board approved the motion by voice vote.

The contract moves the redevelopment toward construction-ready status; staff said pre-contract requirements are complete and the developer is ready to proceed.