Regional Partners Secure Supportive Housing Asset With State Funds


Submitted by City of Lacey

Washington State, Thurston County, and City of Lacey are partnering with the Low Income Housing Institute (LIHI) to acquire and convert the current Days Inn hotel located at 8200 Quinault Dr NE, Lacey into an enhanced shelter (8200 Quinault). The property acquisition is funded by the state’s Right of Way Initiative.

During the 2022 supplemental legislative session, a modified version of Governor Inslee’s Rights of Way initiative passed (see Engrossed Substitute House Bill 5963, page 106, Section 132). This bill allocated federal coronavirus recovery funds to create “a targeted grant program to transition persons residing on state-owned rights-of-way to safer housing opportunities, with an emphasis on permanent supportive housing solutions.” Thurston County, working with the cities of Lacey, Olympia and Tumwater, received $37 million dollars from this grant. Twenty million dollars will be used to acquire and activate the 8200 Quinault site. An additional $4 million will be used for two-years of site operations. The enhanced shelter will provide 118 heated units, safety, and a sense of community for unsheltered individuals and couples currently living in the state’s rights-of-way and, as room allows, unhoused individuals from other locations in Thurston County. The enhanced shelter will be operated in accordance with the Washington State Right-Of-Way Initiative operating requirements. Over the next few years, the property will be converted from an enhanced shelter into permanent supportive housing. The remaining $13 million will be used for a variety of programming and services for the unhoused, including $6.2 million for the development of a 50-unit tiny home village on Franz-Anderson Road.

“This is a very important milestone in our efforts to effectively respond to homelessness in Thurston County,” stated Lacey City Manager Scott Spence. “We greatly appreciate the State’s expanded leadership role in creating the Rights of Way initiative. This program has allowed us to collaboratively secure a community asset that will have long-standing and profound impacts on helping vulnerable individuals secure much needed housing and services.”

Thurston County Manager Ramiro Chavez said, “This project is possible because of the strong partnerships built the past two years at the Regional Housing Council. This allowed the region to respond quickly when the state brought the Right of Way Initiative resources to the table.” Chavez added, “This property will be a long-term asset to the entire regional and will contribute significantly to housing the most vulnerable residents of Thurston County.”

As the operators of the shelter, LIHI staff will always be onsite and will provide case management to help residents obtain permanent housing, employment, health care, and other services. LIHI is a 31-year, non-profit, affordable-housing provider with more than 3,000 units of permanent housing across the region, including the Billy Frank Jr. Place and Unity Commons in Olympia. LIHI also operates an enhanced shelter in Tacoma and Seattle, and 16 tiny house villages, including Plum Street Village in Olympia and 15 other locations in Tacoma, Skyway, Seattle, and Bellingham. Visit for more information. It is anticipated the facility will include:

  • 118 fully furnished units
  • 6 staff and case-management offices.
  • Security with fencing fully surrounding the site.
  • 24/7, on-site staff including operations, security, and case management. On-site services including housing-navigation support, employment search, and referrals to education and health resources.
  • A Code of Conduct residents are required to agree to that includes: no drugs or alcohol within public spaces, no violent/threatening behaviors, safety and cleanliness standards, and must work with on-site case management.
  • Resource room with computers to help residents search for housing, employment, and more.
  • Community gathering, kitchen, and laundry facilities.
  • Hot meals delivered daily.
  • Building-wide WiFi.
  • A Community Advisory Group (CAG) consisting of nearby businesses representatives and residents. The CAG would meet regularly to discuss 8200 Quinault operations.

Close of escrow is anticipated to occur in early 2023.

The City of Lacey, with Thurston County, Washington State Department of Commerce, and LIHI, will host two informational community meetings about the 8200 Quinault project on Wednesday, November 16 at 3 p.m. and 6 p.m. at Lacey City Hall, 420 College Street SE, 98503.

The meeting may be viewed remotely on YouTube: 3 p.m. and 6 p.m. 

For more information and updates, visit the City of Lacey website.

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