(The Center Square) – Spokane Valley officials discussed legislation on Tuesday that, if approved, would allow the city to donate surplus properties to build affordable housing.
State law allows municipalities to adopt the practice, but only after enacting local policy to regulate it. The Spokane Valley City Council heard a first reading of its proposed rules on Tuesday; if approved, the ordinance would require recipients to follow a few stipulations.
Spokane County discussed the option in October after Habitat for Humanity, a nonprofit specializing in affordable housing, approached them about it. They argued to the Board of County Commissioners that the community would see benefits for generations to come.
“Utilizing a granting process such as this for surplus land would really help us,” said Dana Le Roy, policy and advocacy coordinator for Habitat for Humanity Spokane. “One of the main barriers to developing affordable homeownership is access to land.”
The city of Spokane, which neighbors the Valley, has a similar measure codified in its municipal code. Le Roy said the nonprofit is already working with them to develop seven units of “permanently affordable homeownership” on land that the city of Spokane previously owned in the Valley.
Leveraging that relationship with the city of Spokane Valley would create additional opportunities for affordable housing. The council also heard an economic report on Tuesday, which showed the local Housing Affordability Index, or HAI, dropping significantly since 2021.
When HAI is at 100 or higher, a household with the local median income has enough to buy the median-priced home. While the HAI for median buyers was around 100 at the beginning and end of 2021, it has since fallen to around 65, fluctuating slightly each fiscal quarter.
The HAI for first-time buyers is even lower, falling from around 85 in 2021 to roughly 52 over the summer. However, the HAI for median renters has floated between 133 and 124 since 2018, with transitional, or middle to low-income, renters sitting between 93 and 87 during that period.
City Attorney Kelly Konkright said the proposed ordinance defines affordable housing as units to be sold or rented to families who make less than 80% of the median household income.
If approved, any grant involving city property must follow six requirements: the transfer must provide a public benefit; the deed must require the new owner to use the land solely for that benefit, with a plan in place if it ceases to exist; the new owner must pay all associated costs that the city would otherwise be responsible for; the transfer cannot violate any existing contract or bond agreements; the planned use must follow the existing zoning regulations and comprehensive plan; and finally, the city must select the recipient through a Request for Proposal or Request for Qualifications.
“This does really address one of [Habitat for Humanity’s] main problems,” Le Roy said.
