The City of Tumwater wants to turn this motel into affordable housing for seniors

Officials in the city of Tumwater are planning to convert a nearly 60-year-old apartment building that had a long stint as a motel into affordable housing for low-income seniors — as long as the state supports the project.

The Tumwater City Council discussed the project last week, and all council members supported using some of the city’s remaining federal American Rescue Plan Act money to make it happen. The next step will be to draft a letter of support to the Department of Commerce to get even more funding.

The motel, located at 5895 Capitol Blvd. SE, was formerly Shalimar Suites and later Tumwater Inn & Suites. Along with the motel acquisition would be the purchase of a neighboring property, 111 T St., that has a triplex on it. The goal is to renovate and bring up to code both properties, which would provide nearly 30 units of housing for low-income seniors.

Altogether, the properties would be purchased for $4.8 million, if supported by the state.

Craig Chance, executive director of the Housing Authority of Thurston County, said the Tumwater City Council had previously pledged $550,000 of ARPA funds toward regional housing projects. The Franz Anderson RV safe lot in Olympia, which will be turned into permanent supportive housing, was identified as a project worth supporting.

There was interest in expanding Tumwater’s low-income housing footprint, too. So the funds were split between the two projects, $275,000 each.

Chance said there’s an ever-growing need for housing for low-income seniors. He said not a day goes by that they don’t hear from someone 62 and over who’s struggling to pay the bills.

He said there’s a lot of need for housing out there, and he’s been asked why this project focuses on seniors. His answer was, “You have to pick a need.”

Chance told the council there are 13 households that are 62 and over, have a housing voucher and are actively looking for a new home. Those people will be targeted first, if the motel conversion happens, he said.

But there are 362 households on the waiting list for the voucher, and likely 1,000 more in the county waiting to get on the waitlist.

For this project, the housing authority wants one bedroom apartments to cost around $480 and two bedrooms to cost about $560. Some larger units and those with more amenities will range from $600 to $950, depending on the size.

The funds going toward the motel conversion will work as a down payment for a rapid rehousing grant from the state Department of Commerce. Chance said the motel in Tumwater was chosen because it’s already set up as apartments, with one and two bedrooms and most units with kitchens.

The buildings are also in a neighborhood rich with amenities. There are clinics, healthcare providers, restaurants, grocery stores and more in walking distance. Plus there’s a bus stop right outside.

Chance said it took a while to convince the property owner to sell, and it wasn’t until Dec. 16 that they got close to a deal.

There are some downsides to the property, such as the lack of ADA accessibility and some of the units being two stories, requiring the use of stairs. But Chance said not everyone 62 and older is unable to manage that situation, and it would be fairly easy to relocate a resident if they’re unable to use the stairs any longer. He said the buildings will be brought up to standard code and made ADA accessible.

If the state chooses the housing authority’s application, Chance said there’s another dilemma they’ll have to face: rehoming the 10 families who have been on extended stays at the motel. He said the housing authority has a moral and legal obligation to help them find new housing. But as the motel stands, it’s become a hotbed for police activity, he said, so it needs a refresh.

City administrator John Doan asked Chance if there’s a possibility that the apartments could become market rate or open to all ages. Chance said funding for the project comes with the stipulation that it stays whatever it was originally intended to be.

Chance said the Department of Commerce’s goal is to post applications for the grant by Feb. 3 and to make a final decision by Feb. 28.