Incentives - Housing Development

Housing Development

"Quality, affordable housing is a core element of the American Dream. It's also an important piece of a stable, healthy community. The City of Spokane offers a range of programs to assist in the creation and maintenance of both single family and multi-family housing. In addition to the HOME funds and the Multi-Family Tax Exemption program, information on other housing finance resources available through the City's Community Development Department can be found at http://www.spokanecitycd.org/housing/index.htm."

Housing Finance

Home Funds
The City awards HOME (Home Investment Partnership Program, from HUD) funds as low-interest, deferred loans to for-profit, non-profit, and project sponsors. HOME funds must assist in the acquisition, construction and rehabilitation of low-income rental housing. HOME funds serve as "gap financing" leveraging other sources of financing. Projects awarded HOME funds must agree to tenant rent and income restrictions for a period of affordability. Applicants must also provide social services, management, and tenant selection plans for their project. Applications are accepted twice yearly, usually in February and August .

Projects are evaluated, in part, on how they meet the housing needs of Spokane's priority populations: large households (requiring units with 3 or more bedrooms) with incomes at or below 50% AMI and households with incomes at or below 30% AMI and one and two bedroom units affordable to households below 50% AMI which are located in areas designated as Centers and Corridors in the City of Spokane's Comprehensive Plan http://www.spokaneplanning.org/Documents/C&C%20handout.pdf). Projects which are economically viable without HOME assistance are given a low priority.

For more information, contact Melora Sharts, 625-6325, msharts@spokanecity.org, or see our Multi-Family Tax Exemption (MFTE) section below .

Information on other housing finance resources available through the City's Community Development Department can be found at http://www.spokanecitycd.org/housing/index.htm.

Multi-Family Tax Exemption (MFTE)

The City of Spokane's Multi-Family Tax Exemption (MFTE) program offers a partial property tax exemption for new improvements that create multi-family housing. The exemption period is 8 years for market rate projects, and 12 years for projects that target at least 20% of the units to low to moderate income households. The program is based on state law (http://apps.leg.wa.gov/RCW/default.aspx?cite=84.14) and described in the Spokane Municipal Code (http://www.spokanecity.org/services/documents/smc/?Chapter=08.15)

Here are a couple key things to remember about this program:

  • "Multi-family" is considered to be a minimum of 4 dwelling units in one building on one parcel.
  • The MFTE program is available for properties in designated target areas all over the city, not just in the downtown. The target areas are selected based on criteria designed to support the revitalization of urban centers.
  • For mixed use projects, at least 50% of the space must be dedicated to residential use.
  • The developer, builder or property owner must apply for this tax exemption BEFORE they apply for their building permit.
  • Before purchasing a specific piece of property, investors should either contact Kim Powe, Incentives and Green Business Specialist (625- 6982, kpowe@spokanecity.org) or come in to use the public access computers at the 3rd floor Current Planning counter in City Hall to double-check that the parcel is actually in a MFTE target area.

The MFTE target areas are generally focused on Spokane's urban centers, found in the Central Business District (CBD) and neighborhood business districts, known as Centers and Corridors (http://www.spokaneplanning.org/Documents/C&C%20handout.pdf). Other development-oriented incentives are available in Centers and Corridors as well, such as a Floor-Area-Ratio Bonus for creating public amenities, structured parking and affordable housing (allows more building on a parcel than the zoning would otherwise allow), and reduced parking requirements. (http://www.spokaneplanning.org/Documents/C&C%20Dev%20Incentives.pdf)

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