(The Center Square) – An Everett-based shelter manufacturer that built the first tiny home village under Seattle Mayor Katie Wilson’s homeless initiative has shut down.
Wilson announced in April that Pallet would construct a village of high-panel micro-shelters in Seattle’s Interbay neighborhood.
The development, which opened in August, is the first of 4,000 temporary housing units initially planned over four years for unhoused residents under a Wilson initiative.
However, Wilson pivoted on her homeless plan Monday, releasing a statement highlighting a plan to increase available shelter beds by 1,000 the end of the year.
Pallet had said it wanted to build other villages in Seattle, but ceased operations before it could begin further projects.
In a statement posted to its website, Pallet reflected on how the landscape surrounding homelessness responses has shifted since the company was founded in 2017.
“Communities understand the challenge differently. Customer needs have become more complex. Funding environments and political priorities have shifted,” the statement read. “And through nine years of working alongside communities across North America, we have learned an extraordinary amount about what works, what doesn’t, and what is needed next.”
Since its launch, Pallet deployed more than 100 transitional villages across North America, providing over 6,000 temporary beds to an estimated 30,000 individuals, according to the statement.
Seattle had not been a Pallet target for a tiny home village until Wilson took office in January.
While the city already hosts roughly a dozen tiny house villages, another company, the Low-Income Housing Institute, built and manages those sites.
Neighbors around some of the villages have complained of increased crime and fentanyl use stemming from the complexes.
Unlike traditional models, Pallet partnered with non-profit and faith-based organizations to manage its complexes and offer social services.
Wilson’s Interim Communications Director Alex Hudson said the mayor is committed to getting Seattleites who are unhoused and suffering connected with the shelter they need and deserve.
“We are grateful to Pallet for their initial partnership. There are many companies capable of producing tiny houses, and we look forward to working with them to achieve progress,” he said in a statement to The Center Square.
The shutdown leaves local operators of existing Pallet sites responsible for performing their own maintenance and sourcing replacement parts independently.
Despite the operational end, Pallet expressed optimism about its legacy, framing the closure as a necessary evolution on its website.
“Our goal was never to defend one solution. Our goal is to solve the problem,” the company said.