CITY OF SPOKANE VALLEY REQUEST FOR PROPOSALS

CITY OF SPOKANE VALLEY

REQUEST FOR PROPOSALS

**ADDENDUM #1**

Affordable & Market Rate Housing on City Owned Property RFP

Due Date: 4:00 p.m., January 17, 2025

This Addendum #1 to the City’s request for proposals regarding Affordable & Market Rate Housing on City Owned Property provides notice of a modification to the following sections to the request for proposals: (A) paragraph 1 of the Addenda, Modifications and Clarifications, (B) Schedule, (C) Scope of Work, and (D) Property Transfer. The modifications are as follows:

(A) The Addenda, Modifications and Clarifications paragraph 1 set forth below replaces the Addenda, Modifications and Clarifications paragraph 1 in the original request for proposal:

Addenda, Modifications and Clarifications 1. The City reserves the right to change the RFP schedule or issue addenda to the RFP at any time. All such addenda will become part of the RFP. The City will provide notification of addenda by PUBLIC NOTICE on the City’s website. It is the responder’s responsibility to confirm as to whether any addenda have been issued. The City also reserves the right to cancel or reissue the RFP.

(B) The Schedule set forth below replaces the Schedule in the original request for proposal:

Schedule

The City anticipates the following schedule for completion of the RFP process:

RFP publication date

October 29, 2024

Technical Assistance Session #1

November 13, 2024

Technical Assistance Session #2

December 18, 2024**

RFP submission due date

January 17, 2025

Review Period

January 17 – March 2025

Applicant Presentation to Council

Early March 2025

Anticipated City Council decision

March 2025

Project start date

To be determined – Project dependent

Deliverables by

To be determined

**8:30 a.m. City of Spokane Valley, City Hall, 10210 E. Sprague Avenue. Technical Assistance Session #2 will be available virtually and will be recorded for those who can’t attend in person. A link to the virtual session will be provided upon request.

(C) The Scope of Work set forth below replaces the Scope of Work in the original proposal:

The City is seeking development proposals for two City owned properties. Applicants are encouraged to provide a proposal for one or both parcels.

Property 1

Property 2

Address

228 South Carnahan Road, Spokane Valley, WA 99212

4908 East First Avenue, Spokane Valley, WA 99212

Parcel #

35232.1509 & 35232.1503

35232.1304

Size

1.35 acres

0.15 acres

Zone

Corridor Mixed Use

Corridor Mixed Use

Density

No min density

No min density

The City is not specifying the minimum number of housing units required with the development proposals. However, the housing development should fall under one of the following categories:  

• Permanently Affordable Homeownership: Construction and sale of individual homeownership units (such as townhomes, cottages, or a mix of types) that are sold to buyers whose household income is no more than 80% of the median income in the area where the housing is located and who will occupy the unit, and are sold at prices such that (1) the sum of the monthly mortgage principal, interest, property taxes, homeowner’s insurance, homeowner’s association fees, and land lease fees, as applicable, do not exceed 38 percent of the purchasing household’s monthly income; and (2) does not cause the household’s monthly debt to exceed 45 percent of the monthly household income. 

• Affordable Rental Housing: Construction of rental units that shall be leased to residential tenants whose household income is no more than 80% of the median income in the area where the housing is located, and is leased at rates that do not cause the sum of the monthly rent and utilities (not including telephone service) to exceed 30 percent of the tenant’s monthly household income.

• Affordable housing affects all income levels. However, for the purposes of this RFP and at all times mentioned herein, the term “affordable housing,” both ownership and rental, specifically refers to housing sold or rented to households earning no more than 80% of the median income under the current HUD guidelines for the area where the housing is located.

• A mixture of Affordable Rental Housing and Permanently Affordable Homeownership as identified immediately above.

• Development that incorporates both (1) Affordable Rental Housing and/or Permanently Affordable Homeownership, and (2) market rate housing and/or retail uses.

Proposals that include one or more of the following will be scored more favorably:

• Family-sized (two and three bedroom) units

• Senior housing 

• Mixed income development with no more than 25% market rate residential units

• At least 50% of total units are proposed to be affordable housing as defined in RCW 39.33.015 for households whose incomes do not exceed 80% of the median income for the area in which the housing is located.

• Homeownership opportunities  

NOTICE: The City cannot transfer any property to a successful applicant that will not be used for affordable housing as defined in RCW 39.33.015(8)(a). Therefore, the City will require applicants proposing a mix of affordable housing and either market rate housing or retail uses, if selected as a provider, to pay the full appraised fair market value for that portion of the subject property that is identified for uses other than affordable housing as set forth herein and in RCW 39.33.015(8)(a).

(D) The Property Transfer section set forth below replaces the Property Transfer section of the original proposal:

The City’s intent is to grant a possessory interest in the Property to the chosen applicant(s) at no cost only for those parts of the property that will be used for affordable housing. Selected applicants proposing non-affordable housing uses along with affordable housing uses will be required to pay the City in an amount equal to the full appraised fair market value for those portions of the property to be used for retail and/or market rate housing. The nature and extent of the possessory interest (i.e. fee simple, leasehold, or other property interest) and timing of the property transfer will depend on the applicant’s proposal and will be the subject of negotiations between the City and chosen applicant. However, in accordance with RCW 39.33.015, any deed, lease, or other instrument transferring or conveying property must include both (1) a covenant that runs with the land and requires the property to be used at all times for affordable housing as defined herein; and (2) remedies that apply if the applicant fails to use it to provide affordable housing or ceases using it for such purpose. For purposes of this RFP and any agreement the City enters into with the chosen applicant, “affordable housing” shall mean (a) for rental housing, monthly rent and utility payments (not including telephone) are equal to or less than 30 percent of the household’s monthly income, and (b) for permanently affordable homeownership, both (i) the monthly payments for mortgage principal, interest, property taxes, homeowner’s insurance, homeowner’s association fees, and land lease fees is equal to or lesser than 38 percent of the household’s monthly income, and (ii) total household debt is no more than 45 percent of the monthly household income. For both rental housing and permanent housing, the housing must be owned by or leased to persons whose household income does not exceed 80% of the median income for the area in which the housing is located in order to be considered “affordable housing” in compliance with the aforementioned covenant.

Published November 29, 2024