Habitat and private developer present competing plans for city land; council to rank proposals

The Spokane Valley City Council heard presentations from two proponents responding to the city’s affordable‑housing request for proposals for two city‑owned parcels near Third and Carnahan.

The proposals: Habitat for Humanity Spokane proposed building approximately 24 permanently affordable homeownership units on the larger 1.35‑acre parcel and a larger single family unit on the smaller 0.15‑acre site. Habitat’s presentation emphasized a land‑trust model, volunteer labor, private donors, and partnerships with local lenders to lower buyer mortgages. Habitat CEO Michelle Gerardo said the nonprofit has completed more than 430 homes countywide and cited low default rates and a revolving subsidy model that returns down‑payment assistance to the organization for future projects. Habitat estimated the total project cost at roughly $7.5 million and projected staged occupancy beginning in mid‑2026 if the city selects the proposal.

Millennium Northwest, represented by Mark Michaelis and Mike Stanekar, proposed a two‑phase mixed‑income development of about 54 units, including a four‑story walk‑up building and six townhomes, that would combine workforce‑rental units and market‑rate apartments. The private developer said the project could be financed through a mix of social‑impact investment, conventional lending and private equity without depending on state grant awards, and estimated combined project costs near $17.6 million ($14.4M for the multifamily phase and $3.2M for the townhomes). Representatives said their approach prioritizes faster delivery and a funding model designed to be less dependent on uncertain grant cycles.

City process and next steps: City staff said the city acquired the larger Carnahan parcel in March 2024 and had budgeted $2 million for acquisition to support affordable housing. The RFP included both the larger parcel and a nearby smaller lot. Staff asked councilmembers to rank the two applications separately for each parcel and return ranking sheets by April 9; staff expect to return for a council motion on April 22. The RFP evaluation criteria included feasibility, affordability, long‑term maintenance, community impact and alignment with council housing priorities.

Questions from council addressed unit mix, long‑term affordability, financing risks and how homeownership versus rental elements would be preserved. Habitat said its land‑trust model preserves long‑term affordability and that revolving subsidy dollars have helped finance subsequent builds. Millennium said its mixed‑income model would deliver more rooftops quickly and said it already has private capital available for construction.

What council must decide: Council members will weigh tradeoffs between permanent affordable homeownership (Habitat), which prioritizes lower ongoing housing costs but requires subsidy layering, and the Millennium approach, which offers greater density and faster delivery of a larger number of rental units using private capital. Staff materials and interview notes from proponents are in the council packet; councilmembers have been asked to return ranked priorities ahead of the April 22 motion consideration.