Spokane: Mayor Brown Announces Proposals to Jumpstart New Affordable Housing Developement
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Erin Hut, Communications Director, ehut@spokanecity.org

In alignment with the priorities laid out in the H.O.M.E. Starts Here Plan, Mayor Lisa Brown has introduced a new legislative package aimed at jumpstarting affordable housing development across Spokane.

The H.O.M.E. Starts Here Initiative establishes a comprehensive guiding plan for addressing housing and homelessness across the City of Spokane. The plan identifies a clear roadmap for how City departments can align efforts to improve housing stability through key indicators of success, like reducing the number of Spokane residents who are housing cost-burdened, adding new housing units at all income levels, and expanding local homeownership rates.

The package of proposals introduced Monday will reduce barriers to building affordable housing and help create much-needed units.

Establishing and Expanding the HEART Fund

Since 2020, the City of Spokane has leveraged House Bill 1590, which authorized a 0.1% local sales and use tax for affordable housing and supportive services to expand access to housing options across Spokane.

A new ordinance put forward by Mayor Brown looks to align the program with state law to help achieve the City's housing target of 22,359 new units by 2046 through several new levers and renames the fund to better reflect its purpose. The proposal creates more flexibility in the percentage of awards made for capital construction projects and services, brings City Council prioritization into the process earlier, and establishes funding deadlines to better coordinate state funding match opportunities for developers building affordable housing.

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Additionally, following a community campaign led by the Spokane Alliance, the proposal seeks to rename the fund the "Housing Equity and Attainable Residences Trust (HEART)" Fund.

Establishing an Affordable Housing Permit Fee Deferral Program

Permit fees, while necessary to support critical city services, can often pose a financial burden to developers because they are typically due early in a project and before construction financing is fully in place. To help ease this upfront cost and encourage the creation of more affordable housing, Mayor Brown is looking to establish a permit fee deferral program specifically for developers building income-restricted units.

Under the proposal, certain affordable housing projects may defer up to $150,000 in building and street obstruction permit fees.

By allowing fees to be paid later in the development process, this initiative would support housing production while maintaining the City of Spokane's commitment to responsible growth and affordability.

Creating a Clear and Intuitive Development Code

The City of Spokane Community and Economic Development Department, in conjunction with the update to the Comprehensive Plan, will be assessing and updating the City's unified development code to modernize the City's development regulations to reflect current City policy, recent state legislation, and best practices, while improving clarity, equity, and efficiency.

Spokane's unified development code has evolved incrementally over many years, and while various updates have been made, some of the development code remains inconsistent and out of date. This project will lead to an updated unified development code that is clear, concise, and user-friendly, reducing uncertainty, streamlining permitting processes, and lowering development costs.

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GFC Waivers for Affordable Housing

Mayor Brown is also proposing a public rule update following passage of Senate Bill 5662. This state law, put forward by Senator Marcus Riccelli, allows municipalities like Spokane to remove hurdles for developers building affordable housing by waiving General Facilities Charges (GFCs). GFCs are one-time fees paid when a new development connects to existing utility systems.

"Spokane needs more housing units at all levels, but especially affordable units," Mayor Brown said. "These proposals remove barriers that have stalled progress for too long and give us the tools to put shovels in the ground where they are most needed."

"We are honored by Mayor Brown's recognition of the role that community leadership played in creating this source of flexible, local dollars for affordable housing. The HEART Fund reflects the power of grassroots vision to shape public investment for the common good," said Daniel Roberts, member of the Spokane Alliance Housing Equity Action Research Team.

"The lack of affordable housing is one of biggest challenges facing Spokane and this legislation will help organizations like Habitat for Humanity build more homes and create stability for more people in our community," Senator Riccelli said.

"At Habitat for Humanity, we see every day how urgently Spokane needs more affordable homes. The HEART Fund and the new permit fee deferral program are critical tools that will help us build more houses, more quickly, and reach more families dreaming of stability and homeownership," said Michelle Girardot, Chief Executive Office of Habitat for Humanity Spokane. "By reducing barriers and creating permanent, flexible funding, these initiatives move us closer to a Spokane where everyone has a safe, decent place to call home. We're proud to partner with the City to turn this shared vision into reality."

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