Spokane County considers policy to gift surplus properties for affordable housing

(The Center Square) – Spokane County may auction off one of its surplus properties soon, but one commissioner has another idea: create a system for converting these types of real estate holdings into affordable housing.

State law allows the Board of County Commissioners to do just that: transfer surplus properties at low cost, or even for free, to provide more affordable housing. Commissioner Chris Jordan wants to adopt the law at the local level, creating a policy that mimics the process in Spokane.

He asked his fellow commissioners on Tuesday to postpone the county’s upcoming hearing over a potential sale in Spokane Valley for this reason. Jordan said Habitat for Humanity, Thrive International , SNAP and Family Promise all expressed an interest in using the state law to drive up options.

“If Spokane County can donate or significantly discount surplus property, Habitat can sell at an affordable price,” wrote Michelle Girardot, chief executive officer of Habitat for Humanity Spokane, in a letter to Jordan. “Further, that investment will serve not only the first homebuyer but also the homebuyers for generations.”

Habitat for Humanity uses a subsidy tool called the Habitat Land Trust, which provides a resale restriction to ensure an affordable rate for 99 years; so if a low-to-moderate income household buys the home but later decides to sell, they must do so to a buyer with a low-to-moderate income.

Jordan said he likes that the pathway incentivizes home ownership. According to information shared with him, the county has more than 5,500 severely cost-burdened residents, meaning they spend more than 50% of their income on housing.

“One property’s not going to solve that crisis in and of itself,” he said. “On the other hand, one property that might be able to be locked in for generations of home ownership possibility is something to think about as well, and there may be other properties that come up.”

Commissioner Josh Kerns said the property has an assessed value of just over $300,000, and the market rate is even higher. He questioned its affordability and asked for more information as to whether they would gift or sell it at a discounted rate.

Commissioner Mary Kuney said she’s interested but not in outright gifting the property to a nonprofit. She wants more of a process for determining how and who gets the properties first.

While Jordan mentioned that the city of Ellensburg supports a similar program, Kuney said she’s unaware of any counties doing this. Her primary concern is maintaining a fair, competitive process.

“What’s the mechanism to ensure that the citizens are getting a value back,” Kuney said, “versus we’re just benefiting that nonprofit.”

The Board of County Commissioners agreed to delay its public hearing over auctioning off the surplus property as Jordan gathers more information to potentially draft an ordinance to codify the policy.