SPOKANE, Wash. — A local real estate company plans to develop two workforce housing complexes in downtown Spokane, marking the first projects to utilize a city tax incentive program designed to boost affordable housing construction.
RenCorp Realty will develop the housing units on Monroe and Broadway, with construction expected to begin next spring. The developments represent the first projects to take advantage of Spokane’s “Pavement to People” program, enacted by City Council ordinance in 2022.
“We need to add 3,200 new market rate housing units downtown to get some balance in the market,” said Chris Batten, CEO and owner of RenCorp Realty.
The city program eliminates sales and use taxes on construction costs for developers who ensure 50% of their housing units remain affordable. The tax break provides significant financial relief that enables developers to offer lower-cost housing options.
“It’s significant and it makes a difference. And but that’s what allows us to offer that level of affordability,” Batten said.
Emilie Cameron, president of the Downtown Spokane Partnership, said the projects demonstrate the program’s potential impact.
“This is the first project that’s come online since that legislation was enacted,” Cameron said.
The housing developments come as Spokane faces mounting pressure to address affordable housing shortages. A new survey highlighting the need for affordable housing in downtown Spokane will be released next week, with results scheduled for presentation at Monday’s City Council meeting.
The Downtown Spokane Partnership is working with the Spokane City Council to evaluate housing targets for the region. Officials hope the tax incentive program will encourage additional housing developments throughout the downtown area.
“There is demand. People want to live downtown. They want to be by amenities. And we know that we have an opportunity to build more places to live for people here in Spokane,” Cameron said.
Batten believes the workforce housing units will benefit the broader downtown economy by increasing the residential population. The developments target low to moderate income renters, addressing a key gap in the local housing market.
“It doesn’t only help downtown, it helps the property owners, the business owners, the restaurants and everybody else, because all of a sudden you have that many more people downtown,” Batten said.
The housing developments remain in the pre-development and design stage. Batten says construction is expected to begin next spring.
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