Olympia families hoping to buy affordable homes near LBA Park will wait about a year longer than expected.

South Puget Sound Habitat for Humanity has paused construction on its 112-unit development at 3900 Blvd. Road SE after discovering that cost estimates fell short of what the work required, The Olympian first reported.

The worksite, adjacent to LBA Park and Woods, has sat inactive and closed since the nonprofit halted work.

Spokesperson Scott Wild said in an emailed statement that the organization "discovered that initial cost estimates were insufficient for the scope of work."

The nonprofit explored several financial options before deciding to pause and request new bids for infrastructure, Wild said.

County documents from earlier in 2026 listed the project's total cost at $60.5 million. An updated figure has not been released.

The delay reshuffles a timeline that had already drawn interest from prospective buyers. The nonprofit had hoped to begin accepting homeownership applications in summer 2026.

Applications will now open in 2027, Wild said, and the first 38 homes are expected to be available for homeownership in 2028.

On-site work is scheduled to resume in spring 2027, timed to the start of the dry season, according to Wild.

Who's backing the project

The city of Olympia, Thurston County, the Washington State Department of Commerce and the U.S. Department of Housing and Urban Development (HUD) are all partners on the development, according to the project website.

The city sold the 10-acre parcel to Habitat for Humanity for $1 in 2023, The Olympian reported.

The Thurston County Board of Commissioners approved a $2 million award for the project's initial phase earlier in 2026, according to The Olympian's June coverage.

What the neighborhood will look like

County documents describe a mix of housing types across the 10-acre site: 48 three- and four-bedroom homes, 36 two-bedroom two-story townhomes and 28 two-bedroom one-story accessible townhomes. A neighborhood center is also planned. The development will include solar panels, electric vehicle charging stations and access to an Intercity Transit bus line.

Construction is planned in three phases. The first 38 homes closest to Boulevard Road come first. Two more phases of 38 and 36 homes will follow, with each phase expected to take about a year, Wild said.

Who qualifies

Households must earn between 50% and 80% of the area median income (AMI). For a family of four, that means earning between $61,400 and $98,250, according to the program website. Applicants cannot have owned a home in the past three years and must qualify for a mortgage subsidized up to 33% of their gross income. An information session is also required.

The nonprofit is also nearing completion on Tâlíčn, a 28-home development in Tumwater, where two first-time homeowners moved in during September 2026. A 22-home project in Yelm called Mill Crossing expects its first homeowners in 2027.