Bethany Presbyterian Church is spearheading a $12.4 million affordable workforce housing development, dubbed the Bethany Project, that will create a community campus with 22 residential units in Spokane's Lincoln Heights neighborhood.

Sharon Rodkey Smith, a church leader at Spokane-based Bethany Presbyterian Church, says the organization is preparing to rebuild after a fire in January 2022 destroyed a 35,000-square-foot building the church owns at 2607 S. Ray.

Rodkey Smith, who heads the rebuilding committee, says the church understands the frustrations associated with operating without a permanent home, which is why a new facility is planned in addition to workforce housing at the 1.5-acre South Hill property.

"We have the property ... and we feel in our faith journey that we are to help people find shelter," she says.

The redevelopment project calls for the demolition of the existing fire-damaged building, followed by the construction of two residential buildings and a community building.

A 7,500-square-foot community building is planned at the northwest corner of the site and will feature worship space, classrooms, a leasing office, and other community gathering areas.

A small play area and open space will separate the community building from the two residential buildings planned on the southwest and southeast corners of the lot. 

One apartment building will have 10 living units, and the other will have 12 units. In all, three one-bedroom units, 14 two-bedroom units, and five three-bedroom units are proposed.

Half of the planned apartments will be available to house graduates of two Spokane-based nonprofit programs, says Rodkey Smith. Three such units will be dedicated to families without housing who are clients of Family Promise of Spokane, and eight units will be available to refugee and immigrant clients of Thrive International. 

"The rest of the 11 units will be available for anyone that qualifies for workforce housing," she says.

The Bethany Project is under development in partnership with Spokane-based nonprofit housing provider Proclaim Liberty and Spokane-based commercial real estate brokerage and property management company Kiemle Hagood.

Shannon Meagher, director of housing development and special projects at Kiemle Hagood, says potential future residents will be subject to income qualifications.

Eight units will be designated for residents earning 60% or less of the area median income, and 14 units will be for residents with incomes meeting 50% of AMI or below.

"A family of three at 60% of AMI is making $52,860 a year," Meagher explains. "A single person at 60% of AMI makes $41,000."

The Bethany Project has secured about 75% of the funds needed to start construction, says Meagher, who is helping in the planning process and finding financing for the development.

Some of the funding sources for the redevelopment project include a $3 million grant from the Federal Home Loan Bank of Des Moines, sponsored by Banner Bank, which is providing a $3 million mortgage for the campus. About $2.1 million has been secured from the city of Spokane's Home Investment Partnership Program, which grants funds allocated by the Department of Housing and Urban Development.

Bethany Presbyterian Church's congregation has pledged a minimum of $600,000 of the insurance proceeds to go back into the project as well, says Meagher.

After reaching the target funding amount for the Bethany Project, which is expected by year-end, construction is anticipated to begin in March 2026. Construction is expected to take about a year to complete, says Meagher.

Another nonprofit with experience developing affordable housing also has been instrumental in helping to bring the Bethany Project from planning to reality. 

Spokane-based nonprofit Proclaim Liberty has over 50 years of experience developing affordable housing, including a 48-unit residential community in Spokane's Perry District, says Brian Grow, board president of the nonprofit.

Proclaim Liberty was established in 1971 by the Presbytery of the Inland Northwest in response to a loss of housing that occurred when Interstate 90 was constructed through Spokane's East Central neighborhood, explains Grow.

The nonprofit is involved in the Bethany Project due to its affiliation with the Presbyterian Church, experience in developing affordable housing in the community, and desire to help immigrant and refugee families. 

Bethany Presbyterian Church plans to lease the land to Proclaim Liberty for $1 a year for 100 years, says Rodkey Smith, who adds that the nonprofit is the entity responsible for the construction of the buildings and will own the structures. 

The church will then lease the community building from Proclaim Liberty for the same terms, Rodkey Smith says.

Kiemle Hagood will manage the affordable housing community on behalf of Proclaim Liberty, Grow says.

"I'm excited to see how this partnership goes forward because I think it has the potential ... to be something that can be replicated," Meagher says.

Bethany Presbyterian Church's decision to redevelop its property with a community building and affordable housing is partly driven by a decline in membership.

Some churches have been grappling with declining congregations and membership and are looking for new opportunities to make use of unused space while practicing their mission and engaging their communities, says Meagher.

Bethany Presbyterian Church has about 40 members now after losing 30 members since relocating to a temporary worship space at 806 W. Knox, in the Emerson-Garfield neighborhood, says Rodkey Smith.

Consequently, the church already had been exploring ways to incorporate affordable housing at its property prior to the 2022 fire, says Rodkey Smith.

"We've been transient since the Washington state Department of Transportation took our building for the freeway," she says, adding that the fire was the second time that Bethany Presbyterian Church needed to find a new place to worship.

Rodkey Smith says Bethany Presbyterian Church won't require church attendance of residents and won't proselytize tenants.

"It's been a long journey, and we just want to be home," says Rodkey Smith. "We're just trying to be a part of the solution. We have space, and we have compassion, and we would like to develop some kind of connection."