Quixote Village, Olympia WA

This is a self-governing community of 30 cottages each 144 sq.feet on 2.2 acres.  The land is leased from the county (40 years at $1 per year) on property adjacent to the county dump.  This program had considerable grant support from both state and federal sources.

Their main web site:  http://quixotevillage.com/

The NYTimes did a long story featuring this village.