Plans for a $12.4 million affordable workforce housing development, dubbed the Bethany Project, are moving forward despite a recent federal funding freeze that's holding up a portion of funds for the project, says Sharon Rodkey Smith, a church leader at Spokane-based Bethany Presbyterian Church.

The church is spearheading the development through a partnership with Spokane-based nonprofit housing provider Proclaim Liberty, and Spokane-based commercial real estate brokerage and property management company Kiemle Hagood.

Spokane-based ZBA Architecture is designing the project. A contractor hasn't been selected yet.

“I don’t know where the (grants) stand,” says Smith. “It’s like a fire hose … new information is coming so fast and furious you can’t even process it.”

Out of the $12.4 million needed for the Bethany project, 75% had been secured.

The project received a $3 million grant from the Federal Home Loan Bank of Des Moines, sponsored by Banner Bank.

A separate grant of $2.1 million was awarded by the city of Spokane’s Home Investment Partnership Program, which comes from the Department of Housing and Urban Development, however those funds will be dependent upon the federal government, says Brian Grow, Proclaim Liberty's board president.

“It’s a bit of a mystery,” says Grow. “Hopefully the city will have access to it soon.”

The Bethany project will replace a 35,000-square-foot fire-damaged building located at 2607 S. Ray, in Spokane's Lincoln Heights neighborhood, owned by Bethany Presbyterian Church. The property will be redeveloped with three new buildings, including a 7,500-square-foot community building and two residential complexes.

The church has been operating from temporary accommodations at 806 W. Knox following a fire that destroyed its South Hill building in January 2022.

The project will be split in two phases of construction, says Grow. The first phase will consist of abatement and demolition of the church. The second phase will focus on the construction of the proposed campus buildings. The project is slated to begin when the rest of the funding is secured.

Plans for the new community building will feature a worship space, classrooms, a leasing office, and other community gathering areas.

One apartment building will have 10 units and house graduates of nonprofit programs such as Family Promise of Spokane and Thrive International. The second apartment building will have 12 units. In total, the apartments will consist of three one-bedroom units, 14 two-bedroom units, and five three-bedroom units.

Proclaim Liberty was established by the Presbytery of the Inland Northwest in response to the loss of housing when Interstate 90 was constructed through Spokane’s East Central neighborhood, Grow says. 

The nonprofit has been involved in multiple low-income housing developments, including a 48-unit residential community in Spokane’s Perry District.

—Tina Sulzle