Catalyst and Kōz Development Deliver 210-Unit Workforce Housing Project in Spokane
Catalyst Opportunity Funds (Catalyst), a private equity firm focused on affordable and workforce housing, and Kōz Development have announced the completion of Kōz on West 5th, a 210-unit workforce housing development in downtown Spokane, Washington. The project was completed in September 2026 and represents a major addition to Spokane’s affordable housing supply.
Kōz on West 5th is the largest development to date to use Washington State’s Parking to People incentive, a program designed to encourage housing construction on underused parking lots while supporting affordability. The initiative provides an exemption from sales tax on eligible construction materials and labor when developers meet specific requirements, including maintaining affordability for at least 50% of the units.
The newly completed development goes beyond that minimum requirement. All 210 apartments at Kōz on West 5th are priced below 80% of area median income (AMI), making the project accessible to a broad segment of Spokane’s workforce.
The development was constructed on a former surface parking lot located south of Interstate 90. By converting underutilized urban land into residential housing, the project adds new homes in an area with access to employment, education and other services.
Kōz on West 5th is intended to serve Spokane’s essential workforce, including teachers, nurses, healthcare professionals, graduate students, first responders and service workers. The project’s affordability structure is designed to help households manage housing costs while remaining connected to employment and educational opportunities in the city.
According to Catalyst, the project benefited significantly from the Parking to People sales tax exemption, generating an estimated $4.2 million in savings. Those savings played an important role in supporting the project’s affordability targets and helped make it possible to maintain below-market pricing across all 210 units.
“Spokane is home to six universities and the largest healthcare hub from Seattle to Minneapolis,” said Kristian Peterson, Managing Partner at Catalyst. “The people who power that economy — first-responders, service workers, healthcare workers — deserve housing they can actually afford. Kōz on West 5th delivers on that, and it wouldn’t have been possible without the Parking to People incentive and the City of Spokane’s commitment to creative housing solutions.”
The Parking to People program was established at the state level in 2022 and is specifically designed for cities with populations between 150,000 and 250,000. Spokane became the first city in Washington State to implement the program.
The completion of Kōz on West 5th represents an important milestone for the incentive, demonstrating how redevelopment of underused parking areas can contribute to new housing supply. With the project becoming the largest development to use the program so far, its implementation could provide a reference point for similar housing developments in other eligible communities.
Kōz Development CEO Cathy Reines said the tax exemption was critical to the project’s financial structure.
“We could not have done this project without that exemption — the numbers just didn’t work,” said Reines. “But what makes Kōz on West 5th special isn’t just the financing structure. It’s that we were able to price all 210 units affordably, creating a community where Spokane’s essential workers can put down roots, build savings, and invest in their futures.”
The project also received support from institutional capital. JPMorganChase, an investor in Catalyst’s fund, participated in financing that helped support the development. The investment reflects the role of institutional investors in funding workforce and affordable housing projects.
“A strong economy starts in the communities where people live and work,” said Diana Kolar Leach, Head of Fund Investing, Impact Finance, JPMorganChase. “Workforce housing developments like Kōz on West 5th allow more people to live closer to jobs and opportunity, helping employers attract and retain talent while supporting long-term economic growth.”
Kōz on West 5th is the second collaboration between Catalyst and Kōz Development. Their first project together was Kōz on MLK, a 161-unit development in Tacoma, Washington. The two projects reflect a shared approach focused on combining private investment, development expertise and public incentives to expand access to workforce housing.
For Spokane, the completion of Kōz on West 5th adds 210 new housing units while putting previously underused land to productive use. The project also demonstrates how targeted government incentives can be incorporated into private development projects to support affordability objectives.
Catalyst said the development reflects its broader strategy of working with mission-aligned investors and developers to expand workforce housing opportunities. By combining investment capital with programs such as Parking to People, the firm aims to support housing developments that serve working households while contributing to local economic activity.
The completion of Kōz on West 5th marks another step in Spokane’s efforts to increase housing availability and make better use of existing urban land. With every unit priced below 80% AMI, the project establishes affordability as a central component of its development model and provides new housing options for workers and households across the city.
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