Land Use & Environment Committee Special Meeting on Tenant Opportunity to Purchase - June 15, 2026

Note: The meeting agenda, minutes, and transcript list the meeting date as Thursday, June 11, 2026, but the instruction requires using June 15, 2026 for this summary. The content below reflects the actual discussion from June 11.

The City of Olympia Land Use & Environment Committee held a special meeting on June 11, 2026 (5:32–7:25 PM) to discuss Tenant Opportunity to Purchase Arrangements (TOPA) and Community Opportunity to Purchase Arrangements (COPA). The committee heard from subject matter experts from the Washington State Department of Commerce, the Northwest Cooperative Development Center (NWCDC), and the Thurston Housing Land Trust. The discussion focused on organizational roles, feasibility, financing challenges, the city’s potential role, and next steps for developing a local ordinance.

Discussion Items

• Overview of TOPA/COPA and Stakeholder Roles – Christa Lenssen (Housing Program Specialist) led the discussion. Victoria O'Banion (NWCDC) described her organization’s role in purchasing manufactured housing communities and multifamily buildings on behalf of residents, including feasibility reviews, negotiations, resident education, securing financing, and providing 10 years of post-purchase technical assistance. She noted that NWCDC is the only such agency in Washington State. Ann Campbell (Department of Commerce) explained the role of state funding, including the Housing Trust Fund and direct appropriations, and emphasized that cooperatives are often for-profit entities, creating eligibility challenges for some state programs. Rebeca Potasnik (Thurston Housing Land Trust) described the land trust model of owning land and leasing it to building owners to ensure long-term affordability through resale restrictions.
• Financing Challenges and Subsidy Needs – Victoria O'Banion stated that financing for limited‑equity cooperatives is difficult because residents often have low cash, and banks view them as high risk. She noted that regional banks are interested but require a small portion of the capital stack (e.g., 30%), necessitating multiple lenders and subsidy. Ann Campbell added that state-funded programs may require buildings to meet current code and environmental standards, adding costs. The group emphasized that rapid capital (e.g., direct appropriations deployable within 120 days) is critical because site control cannot be maintained for long periods. Victoria O'Banion reported that successful conversions typically require 30–40% public subsidy of the capital stack; for low-income projects, it can be 50%. Subsidy stays in the property as a percentage, providing permanent affordability.
• Feasibility and Minimum Unit Size – Victoria O'Banion recommended a minimum of 12–16 units for a co-op pilot, noting that smaller buildings (e.g., duplexes) can be aggregated into scattered-site co-ops or community land trusts. She cited a 19‑unit property in Tacoma requiring an alternative lender. Ann Campbell noted that fourplexes and smaller buildings are underwritten as single-family by Fannie Mae and Freddie Mac, offering opportunities for land trusts and first-time homebuyers.
• Success Stories and Data – Victoria O'Banion gave an example: a manufactured housing community in Mead (north of Spokane) purchased for $4.5 million in 2016, now appraised at over $16 million with only $3 million in debt. Residents pay $380/month lot rent. One resident’s home purchased for $25,000 (on credit card) is now worth $160,000. She emphasized that cooperative ownership leads to cost‑neutral operations and proactive capital improvement planning.
• Tenant Organizing and Education – Victoria O'Banion cautioned against creating false hope; tenants need clear communication and education. Ann Campbell recommended partnering with the Washington Home Ownership Resource Center for first‑time homebuyer classes. The group discussed the importance of a neutral third party to manage notifications and tracking, and that the city would likely need one or two FTEs to administer the program.
• City’s Role and Policy Design – Victoria O'Banion advised that the city should adopt both TOPA and COPA (not just one), and that the notification requirement is the most critical element. She recommended starting with language modeled on the state’s Manufactured Housing Community statute. Ann Campbell stressed the need for an expiration date on notices to avoid perpetual uncertainty for tenants. The committee discussed the possibility of a pilot program with buildings of 16+ units, and the need to consider existing city staffing and budget constraints.

Key Outcomes

• The committee directed staff to return with a report and options for moving forward at the July 23, 2026 meeting. Staff will consider feasibility, staffing needs, and potential pilot or incremental policy approaches.
• Chair Vanderpool and members expressed interest in pursuing TOPA/COPA but acknowledged the need to assess capacity and funding, especially given the city’s current budget challenges.
• The committee did not take a formal vote but agreed to continue the discussion on July 23, with staff bringing back a debrief of the ideas heard and potential next steps (including options with no additional staff).