Spokane mayor proposes cutting red tape, fees for affordable housing developers

(The Center Square) – Spokane Mayor Lisa Brown proposed several measures on Monday to “jumpstart” the city’s affordable housing supply with hopes of building more than 22,000 units by 2046.

The proposals build on Brown’s H.O.M.E. Starts Here initiative, which the Spokane City Council passed last month as part of her overhaul of the local homelessness response. While largely aspirational, her plan codifies goals aimed at addressing homelessness and housing instability.

The initiative centers on four pillars: healthcare, outreach, multidisciplinary engagement and economic security. Monday’s proposals focus on the last pillar by reducing financial barriers to expanding housing, specifically affordable housing, which benefits developers and residents.

“Spokane needs more housing units at all levels, but especially affordable units,” Brown wrote in a news release published Monday. “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.”

The first proposal would reshape how Spokane allocates tax revenue collected under House Bill 1590, which the city refers to as “1590 funds.” State law currently requires Spokane to allocate at least 60% of that revenue to building affordable housing and the remainder to support services.

Communications Manager Erin Hut told The Center Square that when the city adopted the tax in 2020, local officials split the allocation 75-25. She said Brown wants to realign it with state law.

According to the release, Brown’s first proposal would also allow the council to prioritize certain projects sooner and establish funding deadlines to better coordinate with grant opportunities.

If approved, the fund would be renamed the Housing Equity and Attainable Residences Trust, or HEART Fund, following a campaign by Spokane Alliance, a local nonprofit advocacy group.

“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,” Daniel Roberts, who sits on Spokane Alliance’s Housing Equity Action Research Team, wrote in the release. “The HEART Fund reflects the power of grassroots vision to shape public investment for the common good.”

Brown’s next proposal would allow developers to defer up to $150,000 in permit fees for specific affordable housing projects, while her third proposal could clarify the city’s development code.

The last proposal follows the recent passage of Senate Bill 5662, which allows the city to waive general facilities charges, or GFCs, which developers pay when connecting to existing utilities.

“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,” Michelle Girardot, chief executive officer of Habitat for Humanity Spokane, wrote in the release. “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.”

Tim Clouser | The Center Square