Spokane wins housing grant

The federal government has awarded a $2 million grant to build two apartment buildings for people with chronic mental illness in Spokane, the U.S. Department of Housing and Urban Development announced Tuesday.

The grant – the only one of its type received in the Northwest – will allow two Spokane agencies to build 19 one-bedroom apartments in the East Central neighborhood. Spokane Mental Health partnered with Spokane Neighborhood Action Programs on the grant application.

“This is a long-term commitment to the stability of people with mental illness in the community,” said David Panken, executive director of Spokane Mental Health. “We’re really elated to be working with SNAP on this. We have had such a good partnership from the very get-go.”

The project, named Keystone Corners, is planned for 2021 E. First Ave. and 2218 E. First Ave. Construction is tentatively scheduled to begin in early 2008.

On Tuesday, HUD announced $121 million in grants to assist very-low-income people with disabilities.

“It’s an extremely competitive process,” said Holly Martin, housing project coordinator for SNAP. “We needed each other in order to create a successful project.”

Residents will pay 30 percent of their income toward the cost of renting the 540-square-foot apartments. An on-site manager will live in a two-bedroom apartment at one of the buildings.

To be eligible, applicants must not exceed 50 percent of the area’s median income. Most one-person households that receive the housing will have incomes of about $12,550, HUD said.

The capital advance does not need to be repaid as long as the housing is available for at least 40 years. The program also provides a three-year rental subsidy of $200,000.

“This is permanent, stable housing,” Panken said.