Governmental Affairs Radar
March 15, 2023
SR Leadership meets with Spokane city leaders ahead of Monday night's council vote to bring the Realtor voice to the conversation (L-R): Tom Clark, SR Governmental Affairs committee chair; Tom Hormel, 2023 SR President; Jonathan Bingle, Spokane City Council Member; Nadine Woodward, Spokane City Mayor.
"A devastating blow to home ownership and rental rates."

- 2023 Spokane REALTORS®
President Tom Hormel

See the Spokane REALTORS® news release (pictured) online here.
SR Leadership meets with Spokane City Officials to Discuss Housing Impact Fees ahead of Monday Council Meeting
The Spokane City Council got the "emergency" it wanted, this week, when it rushed through significant increases to housing fees.

The council boasted that these fees will be paid by developers, but we all know that - in the end - all fees are paid by buyers.

Most dramatically, for example, water connections to some single-family homes will increase to $10,407, while water connections to some commercial and multi-family buildings will jump to nearly $470,000 - just to connect the pipe.

In an awkward move, Council agreed to hear additional discussion on city housing fees in two weeks, after it rushed new ones through, this week, under an "emergency."

See the SR issue status page for more information:
Tyler Tjomsland/The Spokesman-Review
Spokane City Council approves major boost to fees on development
Representatives from the Spokane Home Builders Association, Spokane Realtors and others, as well as independent developers, showed up to council chambers en masse prior to Monday’s vote, warning of dire consequences if the council didn’t choose Bingle’s alternative proposal.

Tom Hormel, president of the Spokane Realtors, noted a multi-million dollar project at the airport that would be partially paid for through transportation impact fees.

“It had better be a nice upgrade to the airport, because it’s going to be busy with all the citizens leaving Spokane to find a place that’s affordable to live,” Hormel said.
This is insanity at it's finest for our City of Spokane government. If passed I will stop between 300 and 600 new home lots processing currently. Please vote this down. --Survey comment
The SR asked the top 100+ builders, developers, and REALTOR-builders in the city their thoughts on this emergency ordinance:

Here are the survey results:

  • 88.71% say these rates would be Extremely Harmful to their business

  • 73.68% say they would be Stopping Projects in Development immediately

  • Of these 84% are involved in projects of 50 or less

  • Combined total number of projects to be shut down – 2100

  • 56% agree to the increased fee proposed by Bingle
Many of the individuals who responded to the survey added narrative comments.

This is what they had to say:
 
Adding this increase will cause builders to increase their cost on build making the prices of homes increase as well. It’s hard in enough for people to qualify for homes in a healthy budget and adding this on top will reduce the availability options.
 
The city needs to fully study the detrimental impact on our residents these fees will have. Our community deserves to be able to afford to continue to live in our city and not get priced out due to fees!
 
Everything has increased in price! We are all struggling financially! This is a travesty!
These increases are ridiculous given the city doesn’t want to pay developers for running offsite utilities or any type of compensation and on top of that charge us more $$$ for GFCs. This will put out a lot of developers and builders for continuing.
 
Let's be thoughtful about this. We can't afford to further restrict the development of critically needed housing for our citizens.
I am a Construction Lender and experience first-hand shock for people attempting to build with rising costs on all fronts. You need to slow down on this and do it with proper public input. Jeff Berglund
 
This is insanity at it's finest for our City of Spokane government. If passed I will stop between 300 and 600 new home lots processing currently. Please vote this down.
 
These increases result from a spike in demand which requires massive improvements to infrastructure. The amounts have been carefully determined by trained professionals whose expertise we should acknowledge and respect.
 
This new fee structure hurts those who are struggling with already unattainable home prices. 38k added to home cost will increase the monthly mortgage payment by $320 per month on a 15yr loan. This will cost a family $2/hr off an income.
 
The inept development/ housing creation acumen at the city council is staggering. This plan lacks foresight or logical thought from council on behalf of developers. Not one council member has development experience to make these decisions.
 
There are already connection fees for new services. The City should stop allocating $$$ to other things and return funding to infrastructure. There is no way this is even close to helping with the affordable housing crisis.
 
This is going to dramatically hurt building & developing. Costs are already high, & building & developing are difficult & risky endeavors in this climate of rising interest rates.The City needs to use increased prop tax revenue to offset these costs.
 
Housing affordability continues to be a problem and this greatly adds to the cost of new construction which will limit new supply of homes and apartments. The reduced supply will compound the existing housing affordability issues
 
This will be extremely detrimental to building in Spokane. There is already a housing shortage and this will make it worse. The City needs to use increased property tax revenue to fund these expenses.
This background article (by the same reporter as the article above) ran in Monday's edition of The Spokesman-Review, before the Monday-night council vote:
As Latah Valley building pause ends, Spokane city leaders consider huge jump in fees for developers to pay for growth
While the largest fee increases will be focused on the Latah Valley, where new services are most costly to build, the entire city is going to see increased development costs in the plan expected to pass by the council’s left-leaning supermajority.

Councilmembers Jonathan Bingle and Michael Cathcart have warned the proposal would discourage residential development while the city is already experiencing a housing crisis.

“The trouble is that these rates have been far lower than what they should have been for a very long time, so we’re in a position now where we need to take our medicine,” Bingle acknowledged in a recent meeting.

He argued his alternative would make the medicine a bit less bitter.

In a plan supported by Mayor Nadine Woodward, the conservative council minority calls for significantly smaller increases in the short-term and up to two years of additional study. If no agreement was reached, however, Bingle’s plan would leave the city back at square one.

Still, he argued that the alternative would be falling further behind in a race to build up housing stock.
“I think (Monday’s vote) could set us back years, if not decades,” Bingle said during a Friday news conference.
WR Is Tracking
Over 30 Housing Bills!
House of Origin Cutoff was last week...this means that many bills have either moved on for further work in the Legislature or have officially died.

Fortunately, this is an impactful housing session with plenty of implications for REALTORS® and consumers.

Washington REALTORS® Government Affairs Staff have been tracking over 30 housing bills (many good, some bad).

We've posted a comprehensive list of the housing bills (including REALTOR® Priority Legislation) on our Legislative Session updates page.
Last day of session (Sine Die): April 24, 2023.
Running for Office
Have you ever considered running for office?

Spokane REALTORS® will be hosting private candidate coaching sessions.

Contact Governmental Affairs Director Darin Watkins for more information.
RPAC Update
Did you know that over 70% of Spokane REALTOR® members now support the REALTOR® Party Action Committee?

This helps fund candidates we support and issues that we get behind.

Your auction items are needed for our special event April 1st – please contact RPAC Chair Keri McCombs for details.t Link