Multifamily Housing Program

The City of Spokane Multifamily Housing Program provides financing for low-income rental housing within the Spokane City limits. The program utilizes Home Investment Partnership Program ("HOME") funds from the Department of Housing and Urban Development (HUD).

The City awards HOME funds as low-interest, deferred loans to for-profit, non-profit, and CHDO project sponsors. HOME funds must assist in the acquisition, construction and rehabilitation of low-income rental housing. HOME funds serve as "gap financing" leveraging other sources of financing.

Due to limited program dollars, projects may not receive more than the maximum HOME loan for each unit of HOME assisted housing. Projects awarded HOME funds must agree to tenant rent and income restrictions for a period of affordability.

HOME funds are awarded through a competitive application process. Projects consistent with local housing priorities have a greater likelihood of receiving funding. HOME funding is subject to certain federal requirements and can only be spent on eligible expenses and projects.

If you have questions, comments, or wish to request an application, please contact Multifamily Housing Program staff.

cdinformation@spokanecity.org

(509) 625-6325

City of Spokane
Community Development Department
808 W. Spokane Falls Blvd., #650
Spokane, WA 99201-3339

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity. We encourage and support affirmative advertising and marketing in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

Loans

HOME funds are usually provided as a deferred loan. Typical projects have an amortizing fixed rate loan from a bank or state agency. For-profit sponsors must contribute ten percent owner’s equity to the project as cash while non-profit sponsors may provide other approved forms of equity.

HOME loans accrue interest at 4%, compounded annually, with payments deferred during the HOME period of affordability. Repayment begins when the period of affordability ends. Payments amortize over 10 years at the prevailing prime rate plus 3%.

Loans can be forgiven when projects extend rent and income restrictions. One year’s principal and interest payments will be forgiven for each full year of extended rent and income restrictions for up to 10 years.

CHDO Designation

Non-profit housing development agencies meeting specific criteria can apply for Community Housing Development Organization (CHDO) designation. Each funding round, HOME funds are set aside for CHDO sponsored projects.

Maximum HOME Loan

The maximum HOME loan is determined by bedroom size of units and project type. Loan amounts are based on local housing priorities. The following maximum loan amounts are available to units affordable to tenants earning 50% of the Spokane Area Median Family Income (AMI).

Maximum Loan for 1-4 Unit Structures
for Units At or Below 50% AMI

Unit Size	New Construction	Acquisition, Conversion or Rehab of Uninhabitable	Acquisition or Rehab of Habitable
1 Bedroom	$10,000 per unit	$7,500 per unit	$3,250 per unit
2 Bedroom	$25,000 per unit	$15,000 per unit	$7,500 per unit
3 Bedroom	$35,000 per unit	$25,000 per unit	$12,500 per unit

Maximum Loan for 5+ Unit Structures
for Units At or Below 50% AMI

Unit Size	New Construction, Acquisition, Conversion, or Rehab of Uninhabitable	Acquisition or Rehab of Habitable
0-1 Bedroom	$7,500 per unit	$3,250 per unit
2 Bedroom	$15,000 per unit	$7,500 per unit
3 or More Bedroom	$25, 000 per unit	$12,500 per unit

Larger loans are available to projects making units affordable to tenants earning 30% AMI.

Additional Rehab or Construction Subsidy
for Units At or Below 30% AMI

Unit Size	New Construction, Acquisition, Conversion, or Rehab of Uninhabitable	Acquisition or Rehab of Habitable
0-1 Bedroom	$20,000 per unit	$10,000 per unit
2 Bedroom	$25,000 per unit	$12,500 per unit
3 or More Bedroom	$30, 000 per unit	$15,000 per unit

Period of Affordability

Project sponsors must commit to certain tenant income and rent restrictions on HOME assisted units for a period of affordability: 15 years for acquisition and rehabilitation projects and 20 years for new construction projects. Income and rent restrictions are recorded as a covenant running with the land which remains in force even if the property is sold or the loan is repaid during the period of affordability. Projects are monitored annually for compliance with program requirements.

Tenants of HOME assisted units must have incomes below specific low-income limits for the Spokane area. Also, rent cannot exceed affordable rent limits. Income and rent limits are supplied by HUD and revised annually. Contact program staff for current figures.

Application

Applications are accepted twice yearly, usually in February and August, and are available two months before the application deadline. The application requests financial information similar to that required by banks. Applicants must also provide social services, management, and tenant selection plans for their project.

Housing Priorities

Projects are evaluated, in part, on how they meet the housing needs of Spokane’s priority populations as identified in the City’s Consolidated Community Development and Housing Plan and the annual Action Plans. The priority populations are large households (requiring units with 3 or more bedrooms) with incomes at or below 50% AMI and households with incomes at or below 30% AMI and one and two bedroom units affordable to households below 50% AMI which are located in areas designated as Centers and Corridors in the City of Spokane's Comprehensive Plan.

Projects which are economically viable without HOME assistance are given a low priority.

Eligible Expenses and Projects

HOME regulations specify eligible and ineligible expenses and projects. Ineligible expenses can be paid with another funding source but ineligible projects cannot receive HOME funds.

Eligible Projects:

Acquisition, construction, and rehabilitation of residential buildings.

Ineligible Projects:

Projects previously assisted with HOME or Rental Rehabilitation Program funds.

Shelter housing.

Projects economically viable without HOME assistance.

Projects located outside the Spokane city limits.

Public owned housing.

Eligible Expenses:

Site acquisition, improvements, and demolition.

Accessibility improvements.

Ineligible Expenses:

Commercial space improvements.

Owner-occupied unit improvements.

Land acquisition without construction or "land-banking".

Off-site improvements.

Debt refinance.

Federal Requirements

The Multifamily Housing Program is administered in compliance with the governing federal regulation 24 CFR Part 92. Additional federal requirements may also apply to projects including: federal "Davis-Bacon" prevailing wages, accessibility for disabled persons, Uniform Relocation Act, and bidding/hiring requirements. Detailed information is available from program staff.