Spokane Valley to purchase land for affordable housing development

The city of Spokane Valley will use federal COVID relief funding to purchase land it hopes to develop into affordable housing.

The Spokane Valley City Council voted unanimously last week to pay $630,000 to acquire a 1.3-acre property along Carnahan Road between Second and Third avenues.

In 2022, the council dedicated $6 million in federal COVID relief money made available through the American Rescue Plan Act to acquiring land to help improve mental health services and increase affordable housing in the Valley.

Mayor Pam Haley said to avoid recurring costs that may come with other efforts to bolster those services, the council designated the funds toward land purchases. Last year, the council gifted five organizations a combined $4 million to help them provide services and create more housing for homeless people, seniors and low-income families.

Haley said the investments and the land acquisition is all about preventative measures to help the most vulnerable in the city.

“We know that the longer you’re homeless the more apt you are to stay homeless,” Haley said.

Deputy Mayor Tim Hattenburg said he’s excited about the purchase because he thinks it will help revitalize the surrounding, low-income neighborhood.

“It’s something that we’ve been looking at for a number of years because it’s a very low-income area,” Hattenburg said. “We wanted to do something that not only helped the area but some of the organizations as well.”

Hattenburg said he prefers the preventative measures that help keep people housed. The Valley’s long term goal is to avoid having a large homeless shelter, he said.

“I don’t believe they work,” Hattenburg said.

The money to purchase the property on Carnahan will come from the remaining $2 million the city has in COVID relief funds, City Services Administrator Gloria Mantz told the council Tuesday.

“Council made the decision back in the day, recognizing that there is a need for affordable housing in Spokane Valley,” Mantz said. “And the acquisition of land is one of the biggest barriers that our providers are facing right now.”

The property is mostly vacant, except for a single family home with two tenants who’ve indicated they would be willing to move, Mantz said. She told the council that city staff recommend allocating just over $9,000 in relocation expenses to those who live in the house to comply with state law on governmental acquisition of properties.

Local jurisdictions are required to cover relocation expenses for any of the tenants who’ve occupied the land for more than 90 days when using state or federal funds for a property acquisition.

Haley said the city will attempt to deed or lease the property to an organization this summer, and will look for proposals designed to make it easier for people to eventually own their residence.

“I know there is a big desire for most of the council that we want to do home ownership,” Haley said.