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Thurston County staff seek $950,000 contract to redevelop B&B apartments into 19 affordable units
Summary
Public Health staff requested board approval of a $950,000 contract with Behavioral Health Resources (BHR B&B Building LLC) to replace a 7-unit building with 19 affordable rental units at 21104 State Avenue NE, serving households at or below 30–50% AMI and reserving four units for people experiencing homelessness.
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Public Health & Social Services staff asked commissioners to approve a $950,000 contract with Behavioral Health Resources (BHR B&B Building LLC) to redevelop an aging seven-unit apartment into 19 newly constructed affordable rental units at 21104 State Avenue Northeast.
Staff said the redevelopment will target households with incomes below 30% area median income (AMI) and those between 30% and 50% AMI who are experiencing mental-health or substance-use challenges. Four of the 19 units will be reserved for people experiencing homelessness. The county’s award requires a 20-year affordability period secured through a lien package and will be funded through the Local Home Fund.
According to staff, BHR submitted its application in March 2024 to the RHC affordable housing advisory board (TAB recommended it and the RHC approved it on May 8, 2024 by unanimous vote); the board previously approved a preliminary funding award June 18, 2024. Staff said pre-contract requirements are complete and BHR is ready to proceed.
Commissioners asked whether using Local Home Fund dollars for this project would affect outstanding operating-fund questions for Quinn Street Village; staff said they would confirm whether those specific funds could be applied and bring a briefing to a work session.
The item was presented as a department item to be included on the May 5 business agenda for formal board action.

