Guest opinion: Room for cooperation on affordable housing
The question of downtown housing is complex and often difficult. The answer to that question is more elusive and hard to find now that downtown Spokane has hit its stride. It’s again become a welcome and inviting place to not only work and play, but a place many would like to call home.
In order for Spokane’s renaissance to continue, our community needs to find balance in our downtown housing market that for years has been tipped toward low-income housing. A shift has begun which moves us to more market-rate housing, including million-dollar condominiums. High-end units have a positive impact on downtown and our economy, but we can’t lose focus on the inadequate supply of housing for those who work downtown, people who would like to live amidst Spokane’s thriving urban core and those who require low-income housing options.
Striking a balance is not easy. That can change. To do this we need to see a collaborative effort between government and social service agencies, nonprofit groups and developers. If we leverage our resources and recognize the role each group plays, this community problem will get a community solution.
Social service agencies and local governments must service the population segment that developers cannot — those typically at or below 30 percent of the area’s median income. Developers can and also should help find solutions to this growing problem. But that must be encouraged through incentives rather than forced by legislation.
The New Madison Apartments and the Otis Hotel are examples of the community working toward a solution. RenCorp recognizes that the two structures, like many in downtown, are past their useful life expectancy and are no longer safe by today’s standards.
Not expecting the community’s most vulnerable population to live in these conditions, RenCorp, its clients and partners have made the decision to vacate these two dilapidated structures so they can undergo nearly $12 million in historic renovations. This includes bringing electrical, plumbing and fire suppression systems up to code, which will make the buildings efficient, operable and safe. When completed, the New Madison will be re-opened as affordable apartments, with 20 of the 67 units set aside for residents whose income is at or below 30 to 50 percent of this area’s median income.
During this and other historic renovations with low-income components, the owner’s main priority has been helping tenants find new homes and money to help them relocate. RenCorp and its partners have lost tens of thousands of dollars by keeping the New Madison open for nearly a year after it should have been closed. Prior to giving notice to vacate, the owner made the conscious decision to keep the building in operation for the previous six months due to pending weather.
RenCorp and the owner of the New Madison engaged the assistance of the Downtown Spokane Partnership in facilitating meetings with all involved to determine what if any alternatives might be available. No solutions were offered that would alleviate the current situation. The owner of the New Madison has offered to match the mayor’s offer to contribute $10,000 toward relocation costs, sponsored meetings between residents, social service agencies and landlords.
At RenCorp’s urging, the city has agreed to allocate $250,000 toward relocating residents of the New Madison, the Otis and another downtown property being renovated by a different owner.
Upon closing the purchase, RenCorp has offered to keep the Otis open for at least nine months to give tenants more time to relocate if the city or one of the local housing agencies would agree to lease the building during the transition effort. The city and all local housing associations to this point have refused.
When no one stepped up to the challenge, RenCorp agreed to continue managing the building during this transitional period and has offered to pay $50,000 of its own money toward offsetting the operating deficit. Catholic Charities has agreed to provide a full-time social worker in the Otis to help case-manage residents toward finding new, more suitable housing solutions. Yet the issue of covering the operating losses still needs resolution.
It is unfortunate that people will be displaced, but it is exceptionally clear that RenCorp has gone and continues to go above and beyond what any developer is required to do. The city and local housing agencies should continue to pursue options for keeping the Otis open during this transition and help ensure that our most vulnerable citizens have homes.
This is the best possible example of how as a community we can continue to grow while respecting the rights and needs of all involved.