City Takes More Steps Towards for Housing Solutions

Kirstin Davis - (509) 625-7773

Tuesday, August 16, 2022 at 5:15 p.m.

City of Spokane Planning Services staff worked with Council President Beggs, Council Member Bingle and Council Member Zappone to develop and propose changes to update the Multifamily Tax Exemption program. Ordinance C36243 included a public hearing and final reading and was approved by Council at Monday’s legislative session.

“Moving the needle quickly for housing solutions takes a combination of creative and tried and true planning processes,” says Steve MacDonald, Director of Community and Economic Development. “This revised Multifamily Tax Exemption program incentivizes both market rate and affordable housing where it is needed most.”

The ordinance shores up the policies needed to increase housing units. Tonight’s action regarding the Multifamily Tax Exemption aligns Spokane Municipal Code with updated state Revised Code of Washington laws:

  • Fee updates to cover current costs
  • Making the eligible areas for Multifamily Tax Exemption to include the Spokane Targeted Investment Area (34 low-income census tracts) with Affordable Housing Emphasis areas
  • Tax exemption duration periods for developers to include 8 year, 12 year and new 20 year programs
  • Requirements for relocation assistance for low-income households and new reporting requirements (local and state compliance audits)

Mayor Nadine Woodward proclaimed a Housing Emergency and Spokane City Council adopted the Spokane Housing Action Plan in July 2021. Strategies outlined in the plan include the Shaping Spokane Housing code changes for ADUs, Short Plats, and Lot Size Transition approved by Spokane City Council. Mayor Woodward and Spokane City Council members worked together for the Building Opportunity and Choices for All interim zoning ordinance that encourages missing middle housing development over the next year.