Leavenworth approves funding affordable housing project

LEAVENWORTH — The Leavenworth City Council approved up to $500,000 in earmarked funds on June 23 to support an affordable housing project proposed by Upper Valley MEND and builder Matt Melton.

The funding is expected to subsidize at least three units in Melton’s Leavenworth Cottages development this fall, which will be made permanently affordable through Upper Valley MEND’s Community Land Trust (CLT) model. There is potential for the city to approve additional funding for a fourth unit next spring.

The proposal originated through the Housing Advisory Committee’s community-wide Request for Ideas (RFI), a process designed to identify workforce and affordable housing projects eligible for city support, including permitting assistance, staff facilitation and up to $500,000 in funding.

The Leavenworth Cottages project is expected to include eight cottage-style homes, with up to four units designated as affordable and the rest sold at market rate, creating a mixed-income neighborhood on a single site. The development utilizes the city’s recently adopted cottage housing and unit lot subdivision codes, both intended to encourage smaller units at more affordable price points. The two-bedroom, two-bath units will each total 930 square feet.

“That's another reason why we're so excited about this particular project. It kind of is a poster child, almost, for some of the changes that have been made,” said Housing Advisory Committee chair Justin Horvath.

According to the builder, the market rate for the homes will be listed at $525,000 each, but units reserved for MEND’s CLT program would be offered a $25,000 discount. Combined with a $150,000 city subsidy per unit, the homes would be priced at $350,000 each.

“It is more affordable than what you're going to find on the open market for a new single family home, and it allows us to do what I would consider a pilot project,” said Upper Valley MEND Executive Director Kaylin Bettinger. “We're coming in as sort of a win-win-win threeway partnership with the city, Upper Valley MEND and the developer.”

Under the CLT model, the homes would be available for one, two and three person households earning up to 120 percent of the area median income (AMI), according to MEND. Qualified homebuyers would purchase the homes at below-market prices, while MEND would retain ownership of the land beneath the homes. The homes would also carry resale restrictions intended to preserve long-term affordability for future buyers.

The proposal builds on MEND’s established CLT portfolio, which already has 20 permanently affordable homes with two duplexes on the way. According to Bettinger, the program has already seen a large pool of applicants that would be suited for the smaller cottage units.

“Love the idea. Very creative. I thought it was innovative,” said Councilmember Rob Eaton. “I think it's a really great solution.”

Taylor Caldwell: 509-433-7276 or taylor@ward.media