2021-04-22 Agenda PacketS CITYOFkan �
jvailey�
Spokane Valley Planning Commission
Regular Meeting Agenda
City Hall Council Chambers, 10210 E. Sprague Ave.
April 22, 2021 6:00 p.m.
1. PLEASE NOTE: Meetings are being held electronically in response to Governor Inslee's
March 24, 2020 Proclamation concerning our recent State of Emergency, which waives and
suspends the requirement to hold in -person meetings and provides options for the public to
attend remotely.
2. Public wishing to make comments will need to email planninaaspokanevalley.ora prior to
4:00 Pm the day of the meeting in order to be to speak during the comments period during
the meeting. Comments can also be emailed. Send an email to planning amspokanevalley.org
and comments will be read into the record or distributed to the Commission members
through email.
3. LINK TO ZOOM MEETING INFORMATION:
_https://spokaneval lev.zoom.us/j/93950793161
One tap mobile
US: +13462487799„93950793161# or+16699006833„93950793161#
Dial by your location
US: +1 253 215 8782 US (Tacoma)
Meeting ID: 939 5079 3161
4. CALL TO ORDER
5. ROLL CALL
6. APPROVAL OF AGENDA
7. APPROVAL OF MINUTES: April 8, 2021
8. COMMISSION REPORTS
9. ADMINISTRATIVE REPORT
10. PUBLIC COMMENT: On any subject which is not on the agenda.
11. COMMISSION BUSINESS:
a. Findings Of Fact: Housing Action Plan
12. FOR THE GOOD OF THE ORDER
13. ADJOURNMENT
04-08-2021 Planning Commission Minutes
Page 2 of 4
amendment was modifying Chapters 24.40 and 24.50 of the Spokane Valley Municipal
Code and was approved for recommendation by the Planning Commission at the March
25, 2021 meeting.
Commissioner Beaulac moved to approve the Planning Commission Findings of Fact for
CTA-2020-0004 as presented. There was no discussion. The vote on the motion was
seven in favor, zero against and the motion passed.
b. Public Hearing: Housing Action Plan
The public hearing was opened at 6: 21 pm.
Senior Planner Chaz Bates gave a presentation on the Housing Action Plan (HAP). He
explained that Washington legislation passed a bill (E2SHB 1923) in 2019 encouraging
increased residential capacity through adoption of regulatory mechanisms or adoption of
a HAP. The City decided to develop a HAP and was awarded a $100,000 grant from the
Department of Commerce to hire the consulting firm to assist in developing it. The HAP
identifies strategies and implementing actions to promote housing for all income levels
by providing housing diversity, housing affordability, and increased access to opportunity
for housing. The plan was developed by the gathering of data and public input.
However, the strategies and action are adopted at a later time. The HAP has four basic
elements which includes a housing needs assessment, a housing policy review, proposed
strategies and actions, and a proposed implementation plan.
Mr. Bates explained that the housing needs assessment provides information on existing
housing inventory, the projected housing needs, population trends, and employment
trends. The assessment shows that the City is lacking diversity in housing stock and will
need at least 6,660 new housing units by the year 2037 to handle new growth. However,
45% of these homes will be occupied by residents who make less than the Area Medium
Income (AMI). This means that there is a growing need for affordable housing and the
HAP is geared towards making sure that there are options for all residents.
Mr. Bates stated that the housing policy review looks to see if the proposed strategies
align with identified needs, align with community vision and engagement, identifies
regulatory barriers, and evaluates available programs. The policy review identified that
there is a need for housing for incomes below the AMI and housing that offer more
affordable ownership options.
Mr. Bates said that the housing strategies and actions outlined in the plan are based on
five criteria. This includes zoning and other regulatory strategies, process improvements,
affordable housing incentives, funding for affordable housing, and mitigating
displacement. The three strategic goals outlined are to preserve affordable housing and
mitigate displacement, increase both market -rate and affordable housing supply by
creating focus zones that allow multifamily and missing -middle housing, and increase
housing options and housing choice. Missing -middle housing includes duplexes, cottages
and townhomes because they provide a spectrum of affordability options. The goal in the
HAP to preserve affordable housing and mitigate displacement includes monitoring
regulated properties, retaining affordable market rate units, using caution when proposing
land use changes in areas at risk for displacement, providing tenant support, and
providing homeowner assistance. The HAP proposes to increase market -rate and
2
04-08-2021 Planning Commission Minutes
Page 4 of 4
address the lack of housing availability. She feels that the goals outlined are good
representations of the strategies needed for a growing city. One of the action items is to
provide housing assistance and she feels that will help residents to be more receptive to
affordable housing options. She stated that she is also a proponent of the proposed
housing fund because it would provide a source of flexible funding specifically for
housing needs.
The public hearing was closed at 7:12 p.m.
Commissioner Granrath commented that he would like to see the HAP updated regularly
with current numbers when they become available.
Commissioner Haneke moved to approve and forward to City Council a recommendation
of approval of the Housing Action Plan. There was no discussion. The vote on the
motion was seven in favor, zero against and the motion passed.
Mr. Bates explained that the Findings of Fact will be returned to the Commission at the
April 22, 2021 meeting.
IX. GOOD OF THE ORDER: There was nothing for the good of the order.
X. ADJOURNMENT: Commissioner Beaulac moved to adjourn the meeting at 7:32 p.m.
There was no discussion. The vote on the motion was seven in favor, zero against, and the
motion passed.
Bob McKinley, Chair Date signed
Marianne Lemons, Secretary
4
FINDINGS AND RECOMMENDATION
OF THE SPOKANE VALLEY PLANNING COMMISSION FOR
PROPOSED HOUSING ACTION PLAN
April 22, 2021
A. Background:
1. The GMA allows cities to adopt a Housing Action Plan (HAP) as described in RCW 36.70A.600(2).
The goal of a HAP is to encourage the construction of additional affordable and market rate housing
in a greater variety of housing types and at prices that are accessible to a greater variety of incomes,
including strategies aimed at the for -profit single-family home market.
2. In September of 2019 the City chose to develop a HAP to inform and provide the City guidance on
how to increase housing supply for a variety housing types at all income levels.
3. To assist with the development of the HAP, the City sought and received a $100,000 grant from the
Washington State Department of Commerce (Commerce). The City used the grant to enter into a
contract with Maul, Foster, and Alongi to complete the HAP.
4. The HAP provides policies and strategies that may be used to work towards addressing the housing
needs within the City pursuant to the criteria in RCW 36.70A.600(2). The recommendations in the
HAP were informed by public engagement, data analysis, review of existing planning documents and
staff input. These recommendations are intended to be options for the City to consider for future
implementation. The guidance provided in the HAP will be used as a basis for future conversations
with City Council, Planning Commission, staff, stakeholders, renters, homeowners, advocates,
developers and many others to determine which strategies may be appropriate to provide various
housing types for our community.
B. Findings:
1. The HAP is a planning document to guide future City actions on housing. The HAP does not amend
the City's Comprehensive Plan or development regulations. The HAP is intended to be used for
guidance on future updates to the Comprehensive Plan and implementing development regulations.
2. Consistent with the grant agreement with Commerce, the HAP is required to be formally adopted by
the City. Pursuant to the grant agreement with Commerce and RCW 36.70A.600(2), the HAP is
required to include the following components:
a. Summary of Community Engagement — HAP Appendix D
b. Housing Needs Assessment — HAP Appendix A
c. Recommended policy and code changes — HAP Section 3
d. Housing Strategies — HAP Section 3
e. Implementation Plan — HAP Section 4
3. The HAP contains all the necessary components and meets the requirements of RCW 36.70A.600(2)
(a)-(fl:
a. Quantify existing and projected housing needs for all income levels, including extremely low-
income households, with documentation of housing and household characteristics, and cost -
burdened households. The Housing Needs Assessment included in the HAP as Appendix A
identifies the City's housing needs for all income segments, and detailed information about the
City's demographics.
b. Develop strategies to increase the supply of housing, and variety of housing types, needed to serve
the housing needs identified in (a) of this subsection. Section 3 and 4 of the HAP include strategies
to increase the supply and variety of housing types identified in the Housing Needs Assessment.
c. Analyze population and employment trends, with documentation of projections; The Housing
Needs Assessment included in the HAP as Appendix A identifies population and employment
trends.
Planning Commission Findings and Recommendation 2021 Housing Action Plan
Page 1 of 2
S P 0 K A N E
REGIONAL
HOUSING
NEEDS
SUMMIT
A MARKET BASED NEED
ASSESSMENT FOR THE
S PO KAN E R E G 10 N
The housing supply in the Spokane continues to fall to record low levels
at all pricing points. In February of 2021, we gathered the top minds in
the industry at the national, regional, and local levels to provide a
market -based analysis of housing needs for our region.
This white paper serves as a guidepost that provides a full picture of the
true need for housing, the impacts of housing policies in our region, the
needs of Spokane, what residents want, the influence of buyer migration
from larger metro markets, a history of under -supply and the social
impacts to our community.
1
Executive Summary
The housing crisis in the Spokane region has reached a critical level and is threatening the stability of our
region. That is the consensus of a panel of national and regional economists and housing experts who came
together for a Spokane Region Housing Needs Summit hosted by the Spokane Association of
REALTORS°. These experts were brought together to help us better understand the true housing needs of the
Spokane region, and the answers they provided were alarming.
Among the key findings:
• The Spokane area's housing supply is severe, with a 94% reduction in available homes for sale since
2010.
• A lack of inventory has escalated the median home price in Spokane County 66.8% since 2015 with a
median home increase from $179,000 (2016) to over $300,000 (2020).
• From 2010 to 2019 the Spokane Region underbuilt approximately 32,000 housing units to meet
demand.
• This has resulted in lost economic opportunity - $6-billion dollars in wages and employment since
2010, $1.1-billion dollars in immediate and ongoing tax revenues.
• A lack of inventory has led to thousands of families renting who cannot find a place to buy.
• Vacancies in regional rentals remains at a dangerous level of around 1%.
• The biggest lack of inventory lies in entry level or workforce housing.
• From personal health to family stress, to student performance in school, to increased levels of
homelessness, Spokane's lack of housing has triggered a severe impact on the health of our citizens —
especially among minorities and our youth.
• Spokane has high levels of cost -burdened families spending more of their income on shelter than most
similar cities in the state and the US.
• The Spokane Region is among the top places to move in the country with expected growth of 48,000
more people by the year 2030.
• Many new homebuyers are migrating from larger West coast markets adding 8-to-14,000 new
residents annually
• The market has shifted with bulk of new homes in our region now built across the border in Idaho.
• Local public policy has resulted in the lack of housing production.
• In the City of Spokane's 20-year plan to build around centers and corridors not one single
development has happened
You can watch the summit for yourself here - https://www.youtube.com/watch?v=5t7NYNhMwYl
Spokane Region Housing Costs and Supply
-Data supplied by the Spokane Association of REALTORS°
Spokane County is currently suffering from the lowest level of housing supply in history. In housing terms,
there is under a 10-day supply of homes. By contrast, a 4-to-6-month supply represents a balanced market.
This is a trend that we have seen growing since 2010.
Spokane Association of REALTORS'
MLS Housing Availability Data 2010-2021
2,348
94.3% Decrease 2010-21
1,427
164
�Yti
2010 2017 2021
Homes for Sale end of January
Source: SAR Multiple Listing Service
In raw numbers, there were 2,348 homes available in January of 2010. By the end January of this year, that
number had fallen to 164 homes. This represents a housing inventory reduction of 94%.
Spokane Association of REALTORS°
MLS Lockbox Openings Data 2012 -2020
::::::;0,903
Tff012-20 21,274
14,664
2012 2016 2020
Showings for August
Source: SAR Multiple Listing Service
During this time frame (data kept since 2012) we measured data for the number of home showings as a
representation of customer demand. Was we have seen in an increase in the showings of homes by 45% as
measured by the number of lockbox openings.
Housing Affordability and the First Time Homebuyers Squeeze
James Young — Director of the Washington Center for Real Estate Research
"Since 2017, it has become less affordable for first time homebuyers in Spokane than the
rest of the state."
The Spokane Housing Market continues to show a rapid decline in affordable homes, particularly for those
looking to enter the home ownership ranks for the first time. As recent as the third quarter of 2015, home
ownership has been attainable by roughly 100% of buyers making 85% of the median income in the Spokane
Region. Today, those numbers translate to under 75% of renters.
Too often, those who have saved up and are ready to buy face a regional supply of less than a handful of
homes. The market is seeing multiple offers (often 20 to 30 offers) on these entry level or workforce homes
priced at $250,000 or below, with an average time on market of just a few days before going under contract.
Spokane has long exceeded the rest of Washington for affordability, but in the past few years, that status has
changed, especially for first time homebuyers.
First Time Buyers Housing Affordability Index
First Time Buyers Index
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
m o+0000.. .. .r ..ry N maaevus ,n��rn sc so ronnnrw mmma+mmo 000
rvrvrvrvNrvrvrvNrvrvrvory roinroinN orvry on roi roirvrvrv��nrvrv�roiNNon rvnroirvory rvroirvry Nroi
c"rCr o��2r
-Spokane -Washington
Source: Washington State Housing Market Report WCRM
UNIVERSITY of WASHINGTON
S"!i HHti li]#t {L NiI,M �i1t tt��l CiT4i1 kC 4CkRC F.
These rising rental rates create what we call the Prisoner's Dilemma, where renters find themselves using more
of their resources month -to -month for housing costs, instead of being able to save up for a down payment.
Building Permits by Type
Building Permits by Type
4000
3500
3000
2500
2000
1500
1000
500
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
■Single Family ■Multifamily
Source US Census Ruse u, WCRER
Wt 111iR�175 1lASH1`.t;iU%
w
As a result, the marketplace has reacted with a dramatic increase in multi -family rental units during this same time
period. To put this in context for each construction type - that is more than the TOTAL all of the building permits issues
in the years 2014, 2013, 2012, and 2011. Condominium construction is now less than 10% of the marketplace in 2020,
with over half of these new units age restricted to those 55 and older.
pi
Housing Growth Continues as the Economy Recovers in 2021
Danushka Nanayakkara-Skillington — National Association of Home Builders
Assistant Vice President for Forecasting and Analysis
"We believe the economic recovery will rebound in the second half of 2021, depending
on the new mutations of the Covid virus and the roll out of vaccinations."
The national economy was growing at a strong and steady pace of about a 3.4% GDP growth until the advent
of the coronavirus shutdown. The result led to a complete reversal with a negative 3.6% fall in GDP for 2020.
GDP Growth — Recovery Accelerates During 2H21
Growth continues into 2021 and 2022
40°/, QJQ Percent Change, SAAR
30%
20%
10%
0%
-10%
-20%
30%
-40% J I
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22
Source: U.S. Bureau of Economic Analysis )BEA) and NAHB forecast. ICI -12,
t u— m,c.rs
We see this growth trend resuming once the effects of Covid 19 have been reduced. While there are
immediate concerns with the effects of the emerging new mutations of the virus, we are optimistic that the
roll out of vaccinations will help move the economy to a more normal pace. As such, we see the GDP growth
nationally to reach 3.6% for 2021, and 4% in 2022.
11
Top 20 Markets for Home Price Growth
Cumberiand, MD -WV
YOY Growth Rate in FHFA Home Prices
Idaho Falls, ID
(Q3 2020 vs Q3 2019)
Pocatello, ID
Boise City, ID Ir
Coeur d'Alene, ID
i
Homosassa Springs, FL
�1
Utica-Rome, NY
callan, GA
Olympia-Tumwater, WA
118
WA
SPakWln
hester, VAa1
WV
Creslvlaw Fort Walton Beach-Desti ) F
Twin Falls, ID
�1
Yakima, WA
Bremarton'silverdale, WA
Laka Havasu Ctly-Kingman, AZ
PhoenIX.MesaScoltsdale, AZ
Huntsville, AL
Clarksville, TN -KY
Pueblo, CO
s 4
D
Source: U.S- Census Bureau (BOC)
Growth Rate by Quintile
Less or equal to 3.45%
- Between 3.46% and 4.56%
- Between 4.57% and 5.26%
Between 5.27% and 6.36%
■ MEL
W �
M�
Home prices in Spokane are predicted to continue a strong upward movement with an average annual
increase projected to be between 8.04% and 12.15%. This puts Spokane in the top 20 markets for Home Price
Growth based on a lack of inventory and a growing demand for homes.
Housing Affordability — NAHB/Wells Fargo HOI
40
30
20
2012 2013 2014 2016
Source: NAHB/Walk Fargo Homing Opportunity Index.
2016 2017 2016 2019 2020
, MEL
aarl..uv.a.a..
xew..
While Spokane still ranks above the National mark for housing affordability, we see that number continuing to
fall into 2021 with ann affordability index going below 63%,
13
Housing Underproduction for Washington State and Spokane
Mike Kingsella
Up For Growth National Director
"Spokane's housing stock is rapidly becoming unaffordable. From 2010-2017
Spokane ranked as the number one most affordable entry level home city in the
country. Today it's 45th (of 100) and falling."
Source: AEI Carpenter Index
Across the State of Washington, and in Spokane County in particular, there are not enough homes relative to
need. While this is a trend many attribute to being a nationwide problem, we see the biggest challenges to
growth lies primarily on the West Coast.
22 States Underproduced 7.3 Million Units Since 2000
AM
25,[75 NA
i329,035
30.6<6 RI
T76.1V 55.063
11IL729 ----CT
126,152
259.55
5
_ �t�t9,ee6
r ,
12OX&
\ 9,556
171266 OC
6.081
UNDERPRODUCTION AS %
OF 2015 HOUSING STOCK
2%-S%
5.1%-10%
10.1%-15X
•• 15.1%-qX
�2115.936 No Underproduction
In Washington State, this lack of production has not kept up with growth going back to 2010, with the State
underproducing some 225,000 homes from 2010 to 2017. ECO Northwest that compiled this data for us
determined that Spokane county's growth figure represents approximately .73 homes for every new family,
with a national average of 1.06 homes per family.
15
Cost -burdening happens when families pay more than 33% of their income towards their total housing costs.
The additional challenge for those renters who are cost -burdened is that it makes it incredibly difficult to save
for a down payment to purchase a home.
Cost Burdening Varies by Income in Spokane County
Cost Burdening in Spokane County by Tenure and Household Income,
2018
■ Owners ■ Renters
100%
sus;.
70% 68 °
60%
52°u
50 %
40%
3056 - .- 29%
2o°N ion
9°a
70
OSo
Less than S20.000 S20,000 to S34,999 S35,000 to S49,999 $50,000 to S74,999
22% of Homeowners and 48% of Renters are Cost Burdened
Source: Census ACS, 1 Year 2018
4',�
$75,000 or more
The impact of home ownership continues to drop with each rising cost of housing. Across the board we are
seeing fewer and fewer people able to afford a home in Spokane.
How Affordable is Housing in Spokane?
Housing Stock Affordability by MFI in 2019 (ownership)
(Assuming a 20% down payment)
40% 38%
35%
30-A
25 %
20%
17 % 16%
15°ro
13%
G% 8% 8%
5% • G;s
0-30% 30-5M'0 5080°io 80-1GO% 100-120% 120%+
Median Family Income in 2019 = $72,700
Source: Census PUMS 2019
1/
Spokane Emerges As Top-10 Post-Covid Real Estate Market
Jessica Lautz — VP of Demographics and Behavioral Insights —
National Association of REALTORS°
"Spokane will be among the top 10 housing markets in the United States as a Top-10 Post-
Covid Real Estate Market.
The National Association of REALTORS' has released its Economic forecast for 2021-22 and has determined
that Spokane will be among the top 10 housing markets in the United States as a Top-10 Post-Covid Real
Estate Market.
Top 10 Markets During and in a
Post-Covid-19 Environment
Spokane -
IT Spokane Valley,
WA
1
Boise City,
ID
Provo-Orem,
UT
Phoenix -Mesa
Chandler,
Charleston-
North
Charleston, SC
Dallas
Fort Worth -
Arlington, TX
Atlanta -Sandy
Springs -
Alpharetta, GA
19
With the number of businesses that have closed due to Covid, there is an increased opportunity for small
business creation in the Post-Covid era. One in six homebuyers are now seeking a multigenerational home,
with fits the Spokane profile. Aging parents are the number one reason, with children under 30 the second
reason at 54% Offsetting this number is falling number of buyers with children, at 58% of homes in 1985 down
to only 33% today.
Washington's economic recovery is moving slower than much of the country. 46.4% are working from home.
19.55% expect a loss of income in the next 2-months. 25.7% are having difficulty paying their usual household
expenses, with 5.5% have slight or no confidence in paying next month's rent or mortgage on time.
NAR Housing and Economic Forecast
019
020
2021
Existing -Home Sales
5.340 Million
5.640 Million
6.490 Million
Existing -Home Prices
$271,900
$296,500
$316,000
30-fixed rate mortgage
3.9%
3.1%
3.0%
Unemployment rate
3.7%
8.1%
6.5%
GDP
2.2%
-3.5%
4.0%
https://www.nar.realtor/research-and-statistics
There is good new on the horizon. The National Association of REALTORS° in our Housing and Economic
Forecast are projecting mortgage rates to remain competitively low through 2021 at roughly 3% nationally for
a 30-year fixed mortgage. With unemployment still high at 6.5% - but much lower than the Covid era in 2020
of 8.1%.
21
Population trends in City of Spokane vs. County
City of Spokane share
SO.D%
40.0%
30AY
20.0%
10.0%
OAST
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
One trend that continues is that Spokane continues to shrink its population when compared to that of the
County.
Mid -range forecast of Spokane County through
2030 by WA 4FM
2017 growth management projections
60Q 000
516307
504000
40Q000
300,000
20Q000
104000
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Where has this growth occurred?
23
In trying to make a stronger forecast for population growth specific to the City of Spokane (COS), there are
three separate models to consider that will each represent a different picture.
The first, is a model based on the historical share of Spokane County's population (an average growth rate)
The second is a compounded annual growth rate of the county, and finally the City of Spokane's 2020 share of
the county's population.
Using these approaches, we see a range of population gain in the next ten years of between 15,716 and
23,103 people -with a total population growth by 2030 of between 239,316 and 246,703 people. While the
growth projected gain for Spokane County would be an additional 90,000 people by 2030. The challenge
becomes one for us to answer: "How much do we want to grow?" While these are only 1 to 3 percent growth
numbers, each represents its own set of consequences.
Quick translation into additional housing units
needed by 2030, using mean of estimates
• Likely new housing units total, using COS's
average household size: 8,420
• Assumptions for breakdown by owner -occupied
vs. renter -occupied (from Spokane Trends source, ACS table DP04)
— Owner -occupied 2019 average household size: 2.33
— Rental -occupied 2019 average household size: 2.17
— Share of 2019 owner -occupied household units: 55%
Based on these projections we see the overall need for housing units in the City of Spokane to add an
additional 8,420 homes in the next 9 years. The housing need for these populations are different for owner -
occupied versus those who are renting, with the average household size about 2.33 for homeowners.
25
Which states are contributing to Spokane
County's growth? The top 10
2017-2020 Total
CA
ID
OR -
AZ -
MT -
TX -
Co
FL _
AK _
NV I.IS
Where are these new visitors coming from?
• Top 10 states account for 73% of
total
— Only one state east of Mississippi
• Out-of-state in -migrants
accounted for —62%of total in
latest data (2017-2018) from IRS
• Key WA counties (all county ranking)
— King (i-)
— Stevens (3rd)
— Snohomish (4�,)
— Pierce (s^)
Most are coming from California, Idaho, and Oregon. With Arizona, Montana and Texas following. This
represents roughly three-quarters of all new families. Within the state King County is first, following by
Stevens, Snohomish, and Pierce County. Additionally, we see 2017-2018 IRS data supporting the notion that a
large portion of our incoming population is coming from outside Washington State.
27
6.2.2 Total and Share of Renters Spending 30% or More
of Their Household Income for Shelter Costs
40,000 10(Y.•o
32,000 809,01
L
aJ
c 24,000 600%
y
1G,000 4 0�'•L
0
8,000 2ota
�`b �,c) ti� �� tip' ti ti' tii �A �lb
•,� �� .-,� .-,� .-�� , � ; � .-,w -yam �,� .-�� w
Spokane Corinty - Renters Paying or More
Spokane Cotinty - Share of Renters
-+- Washington State - Share of Renters
-a- United States - Share of Renters
Conventional Wisdom about Homelessness
Vs.
Data Trends
6
Conventional wisdom shows that Risky Behaviors, leads to Drug use, which leads to Academic
Underachievement — and unemployment, which leads to Homelessness.
But the data in Spokane is now clear.
:i.
e
D
rc
M
L7
-00
Mead School
Schoolhouse
WASHINGTON District
Note: The counts below am based on school -level data and vary from the district -level
counts reported annually by OSPI. The OSPI counts can be found by clicking here.
I
Select a District
Maad School District
508 4.6% 39 %
Students Of All Students Of Students Experiencing
222 170 Doubled -Up
116
Hotels/Motels 12°b
Elementary(K-S) Middle(6-8) High(9.12) Shelters '2%
unsheltered . 6°e
Students Experiencing Homelessness Nighttime Residence of
by Grade Band Students Experiencing Homelessness
r 91% � 72% � 63% � 91%
Homeless Housed Homeless Hau>ed Homeless Fcused Homeless Housed
Regular Attendance English Language Arts Mathematics Proficiency 4-Year(On-Time)
Rate Proficiency Rate Rate Graduation Rate
Student Outcomes
Mead School District has seen a comparable number, about 4.6% of all students with similar academic
challenges. But Mead is also seeing a lower graduation rate — only 65% of housing impacted students
compared to 91% graduation rates.
Other impacts to Spokane's youth include higher rates of suicide and greater use of drugs. Rates among Blacks
and those who identify as 2 or more races is also on the increase. It is of note that these groups are
disproportionally seen have having housing issues greater than White, Asian, and Hispanic families in Spokane
County.
si
"Housing Needs Assessment Survey for Spokane Spring 2020"
� Sara Stephenson — American Strategies
"Across all of the groups we surveyed you can clearly see a pent-up demand
reflected for more housing."
American Strategies is a national polling firm specializing in housing issues. We did a survey in Spokane back in April of
2020. Our survey pool was over 500 voters in Spokane. This data has been weighted to match the demographics of
Spokane.
There is a perception of housing costs in Spokane that costs are too high. Half of voters (48% buying a home) say the
cost to buy is too high, compared to over 2/3's who believe rents are too high.
2/3 of Spokane Voters Say the Cost of Rent is Too High;
Almost Half Believe the Cost to Buy a House is too High
80%
60%
40%
20%
0%
Cost of Housing And Rentals
Cost to buy a house I Cost to rent an a pa rtment
■Too high ❑ About right
Q.11 Generally speaking, would you say that the cost to buy a house in Spokane is (ROTATE FIRSTTO LAST AND
LAST TO FIRST) too high, about right, or too low?
Q.12 And would you say that the cost to rent an apartment in Spokane is (ROTATE FI RST TO LAST AND LAST TO MIEREV �� S'I'R.NIT'� ES
FI RST) too high, about right, or too low?
When this survey was conducted at the beginning stages of the Covid crisis, we saw that Spokane residents were already
feeling the economic effects of rising housing costs. 40% reported that housing was putting either a severe or slight
strain on their monthly budgets.
33
When we break down the data even further, we find significant differences with those who are of lower
income, people of color and lower levels of education are feeling a greater financial strain. And remember,
these numbers were done before the full effects of Covid were being felt. Were this survey to be repeated, we
would see these numbers with even higher gaps between these groups.
1/3 of Spokane Voters Would Prefer to Move to a New Home
Majority of renters want to buy a home, • most homeowners plan to stay in their current home.
80%
60%
40%
20%
0%
Preference for Future Housing by Home Ownership
� I
All voters I Renters I Homeowners
■Continue to live where you are now
mBuya new home orcondo
❑Move to a new apartment
Q.22 As you think ahead a few years, would you like to (ROTATE) continue to live where you are now, �,
buy a new home orcondo, or move to a new apartment? A>iIiRIC4� f SRNMIFS
Surprisingly, one in three voters would prefer to move to a new home. We saw the greatest need among
renters, with 51% telling us they are actively looking to buy a new home or condo. One of the key reasons we
heard was that finding a home to buy is a serious challenge. Also, one in five people said they are looking to
buy a new home.
Non -White and Younger Residents Are More Likely to
Want to Buy a New Home
Percent Who Would Like to Buy a New Home in the Next Few Years
Total
---------------
Non-whit,
Renter.
Non -college under
18-34
Womenunder5
Residence length <5 ye
Men under
Post high scho
■Buya new home orcondo
Q.22 As you think ahead a few years, would you like to (ROTATE) continue to live where you are now, buy a new
home orcondo, ormove to a new apartment? •'1 FJUAA 4,�- STRATEGIES
35
"The Shifting Marketplace: How Spokane Lost Market Share To Kootenai
County."
Jim Frank — Founder/Developer — Greenstone Homes
"The real lesson here is the importance of having middle -income housing, the
importance of having housing diversity, the importance of having integrated
neighborhoods with a wide range of housing types along with a wide range of
economic opportunities and neighborhoods. It's going to take a dramatic change in
our development regulations at both the state and local levels to allow that to
happen."
I have been a home builder in this market for almost 35 years. And we've seen key changes in this market over the past
10 years, particularly with a significant market share growth change between Spokane and Kootenai County. If you look
at 2011, there were around 172 new home sales in Kootenai, about 25% of the regional market shared with Spokane. By
2020, the Kootenai County market closed over 1000 homes and for the first time exceeded 50% of the regional housing
market.
New Home Sales Market Share
Percent of Regional SF Closings
80
60
40
20 — Kootenai County — Spokane County
0
2011 2012 2013 2014 2015 2016 2017 2018
2019 2020
This graphic shows the consistent trend over the past 10 years. This is data we collect on closings that lag permits by
about one year. Most of the losses in Spokane County has been seen primarily within the City of Spokane.
There are several key reasons we are seeing this shifting housing market.
37
Out of Town Buyers
Spokane -Kootenai County
(Greenstone Sales 2020)
To put that in a market perspective, we're seeing 59% of out-of-town buyers purchasing homes in Kootenai County —
compared to 30% in Spokane County in 2020. A lot of that is due to the greater range of product, and more housing
stock available, and the impact of Kootenai marketing the quality of life, such as the advantages of being near the lakes,
rivers, and smaller town America. Covid has only accelerated that need.
The real lesson here is the importance of having middle -income housing, the importance of having housing diversity, the
importance of having integrated neighborhoods with a wide range of housing types along with a wide range of economic
opportunities and neighborhoods.
It's going to take a dramatic change in our development regulations at both the state and local levels to allow that to
happen.
M41
We have created our own issues in housing:
• Using environmental standards like the States Evergreen standards to increase costs so now a non-
profit who builds low-income housing and uses State dollars spends over 50% square foot than a
market rate housing developer building the same unit.
• The Growth Management Act said do not spread out BUT assumed cities would implement their
comprehensive plans. The City of Spokane has a Centers and Corridors Strategy BUT has never taken
the step to create density around the 28 Centers and Corridors. This is a byproduct of NIMBYism and
strong neighborhood councils that favor the status quo over any change to current single-family zones.
• The entire system is setup to continue the racial inequities of the last 100 years. Further entrenching
those in poverty in the same neighborhoods with no ability to buy a home and create wealth.
• The Federal and State say if you use any of their funds to build low-income housing in must be in a
census tract with high poverty. Thus you never have mixed income neighborhoods and they are always
in the same neighborhoods. The City perpetuates this by never spreading the multi -family zones to
new neighborhoods and concentrating the density in west central and east central.
We have to build more low-income housing. But we must also build more market rate housing, or the problem
will continue to snowball.
41
I agree with former City Council member Ben Stuckart in that the city has failed to implement its urban development
regulations to develop any urbanized areas. This strategy does not work. As a result, we have a lot of undeveloped land
and missed housing opportunities. We need to change that. If we are committed to a plan, let's implement it. If not,
then let's change it. But right now, what we are doing is not working.
(Editor's note: Commissioner French has called on the City of Spokane to give up some of its GMA housing allotments for
use in Airway Heights and Spokane Valley, with estimates the city has underbuilt GMA targets by 34,000 housing units it
had originally promised by the year 2026.)
43