Franz Anderson unit-mix change raised and deferred; council asks jurisdictions for more information

Jacinda Steljes and the City of Olympia summarized Lehigh's request to adjust the unit mix for the Franz Anderson permanent supportive housing development on city-owned land. The original plan prioritized deeply affordable units for people experiencing homelessness; Lehigh asked to change 35 units to target 50% AMI and keep the remainder at 30% AMI. Olympia said the change is driven by shifting funding conditions, uncertainty about voucher availability from the Housing Authority and the need to secure private equity to complete the project.

Council members, especially representatives from Lacey and other jurisdictions, raised governance and sequencing questions: how the change interacts with Maple Court outcomes; whether the Interlocal Agreement (ILA) requires amendment; and whether all jurisdictional funders could remain committed if the unit mix changes. Several members urged more time to brief city councils and county managers and to receive written clarifications from Lehigh.

A motion to adopt the proposed unit mix was moved but withdrawn to allow more time for questions and possible ILA amendments; staff agreed to place the item on the February agenda and to compile questions and answers for all jurisdictions. Olympia said it is willing to pursue an ILA amendment if required and asked members to notify their councils quickly to meet Lehigh’s funding timeline.