Commission hears updates on local housing projects: low-cost rental pilot, stalled Mount Washington development and RDA priorities

City staff briefed the Housing Opportunities Commission on Jan. 8, 2025, about several projects and redevelopment efforts that could affect the city’s affordable-housing supply.

Held low-cost rental pilot: Staff described a developer-led project by Mark Held on the city’s north side that consists of two 12-unit structures using cost-saving design choices (surface parking, exterior stairwells, unit-level HVAC, simplified finishes) and shared that the developer’s planned rents are "around $700 a month all in," which staff said corresponds to a 50% CMI rent target in the presentation. Staff said the project’s site-plan approvals are complete and that the developer had not pulled permits before the winter freeze; staff expect site work and permits to move forward when ground conditions allow. Commissioners suggested inviting the developer to a stakeholder meeting to discuss how the project was made to work.

Mount Washington redevelopment: Staff reported the Mount Washington project is on hold after public notices showed a construction lawsuit with almost $1,000,000 in unpaid construction costs; the site was gutted and some demolition had been completed, improving a long-standing blight on the property, but staff said they do not know when or whether the larger redevelopment will proceed.

Eau Claire Academy and other inquiries: The former Eau Claire Academy building has attracted multiple developer inquiries over the past year; staff reported conversations with at least four developers exploring redevelopment scenarios ranging from roughly 100 to more than 200 housing units, including potential reuse of gym and commercial-kitchen spaces as tenant amenities. Two developers who considered light-tech (workforce) projects did not submit LIHTC or similar applications this round, staff said, but interest remains.

Redevelopment Authority (RDA) focus areas: Staff said the RDA is exploring surgical, targeted redevelopment and possible expansion of the Cannery District into the southwest quadrant and Short Street industrial area, including acquisition and remediation of blighted rental properties in order to redevelop them as affordable housing. Staff and commissioners discussed risks: removing naturally occurring affordable housing (NOAH) stock can cause displacement unless replacement affordability is ensured; staff said city-owned parcels or redevelopment authority acquisitions could be structured to preserve affordability (including offering land to LIHTC developers or transferring properties to the housing authority).

Commissioners raised concerns about zoning changes, neighborhood opposition and the need for community education and advocacy to accompany redevelopment efforts. No formal votes were taken; staff said they will continue monitoring litigation and developer interest and report back to the commission as projects advance.