Success Stories

New Lacey Development

September 3, 2025

McClanahan Village

5025 Mullen Rd Lacey 98503 

The mixed-income neighborhood will provide stable, long-term homes for neighbors whose core issue is a fiscal problem: They cannot afford market rate housing in our community.

36 units will be dedicated to seniors, who are struggling to meet ends meet on likely nothing but a Social Security benefit. Typical Social Security benefits are in the range of $1,600-$2,000/month. Basic market rate apartment rents in Thurston County apartments are around $1,600-$1,800/month. Even for a couple with typical benefits, it is difficult situation and for one person it is not manageable. For many couples it becomes a crisis after the passing of a spouse and the survivor is left with only one benefit. We routinely hear from people facing this challenge. Rents will be structured to be affordable for neighbors in this crisis.

Up to 24 units will serve multi-generational households with incomes up to 80% of the Area Median Income (AMI). As an example, for a family of three that is an income of up to $84,050/year. While that may sound like a lot, in the context of market rate housing, childcare for just one preschooler of at least $1,300/month, and life’s other needs it can be a struggle. Neighbors in his struggle include para-educators, custodians, teachers, health care workers, store clerks and many other hard-working neighbors with modest paying jobs. The Housing Authority will seek referrals from the school district.

The homes are intended to be affordable for the seniors and families without scarce rental subsidies.

The property will be professionally managed by a third-party private property management company, just as present Housing Authority properties are managed. The Housing Authority of Thurston County apartment communities are nice places to live and compliment the surrounding neighborhoods. In 2024 a local newspaper reader poll voted one of the properties as South Sound’s, “Best Apartment Complex.”

What’s with the name? The late Neil McClanahan was a Housing Authority commissioner and chaired the board for several years. Neil and his wife Sandra both served the community in social service leadership roles. Prior to his retirement as Thurston County Undersheriff, Neil was the most decorated law enforcement officer in Thurston County. Neil also served on the Tumwater City Council. Neil was particularly proud of the Housing Authority’s Allen Orchard twin-home community built across the street from Peter G. Schmidt Elementary School and the relationship it enjoys with the school. He long championed the idea of developing another rental home community across from a local school.

The Housing Authority is a public entity. While some of its developments are created with the help of capital grants, the Authority receives no local or state tax funds for its operations. The Authority’s property portfolio is financially self-sustaining.