Catalyst Opportunity Funds (Catalyst), a private equity firm focused on affordable and workforce housing, and Kōz Development announced today the delivery of Kōz on West 5th, a 210-unit workforce housing development in downtown Spokane. The project, which delivered in September 2026, is the largest development to leverage Washington State’s Parking to People incentive — a program that exempts developers from sales tax on materials and labor in exchange for building on underused parking lots and ensuring that at least 50% of units remain affordable.

Kōz on West 5th was built on a former surface parking lot south of Interstate 90, transforming underused urban land into much-needed housing for Spokane’s essential workforce — teachers, nurses, graduate students, healthcare professionals, and others. All 210 units are priced below 80% AMI, far exceeding the program’s requirement. The development saved an estimated $4.2 million through the sales tax exemption, which was instrumental in making the project’s affordability profile possible.

“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.”

Spokane was the first city in Washington State to implement the Parking to People program, which was created at the state level in 2022 and is tailored to cities with populations between 150,000 and 250,000. Kōz on West 5th is the largest project to use the incentive to date, and its delivery marks a significant milestone for the program’s potential as a replicable model for other cities.

“We could not have done this project without that exemption — the numbers just didn’t work,” said Cathy Reines, CEO of Kōz Development. “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.”

Kōz on West 5th was made possible in part through JPMorganChase, an investor in Catalyst’s fund, whose commitment reflects the growing role of institutional capital in workforce housing.

“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 Catalyst and Kōz Development’s second collaboration, following Kōz on MLK, a 161-unit development in Tacoma that demonstrated the power of their shared model. Kōz on West 5th is designed to deliver similar outcomes for Spokane residents — reducing cost burden and creating the conditions for working families to build financial stability. This project reflects Catalyst’s broader commitment to bringing together mission-aligned investors and developers — and leveraging innovative public incentives — to deliver on a shared belief: providing quality, affordable housing to working households is good for communities, the economy, and the people who power them.

About Kōz Development: Kōz Development is a Seattle-area based workforce housing development firm with a mission to create affordable, high-quality housing in desirable urban neighborhoods. Kōz’s mission remains simple: create high-quality, efficient housing close to work, school, and transit so people can live where life happens. Since its founding 12 years ago, Kōz has built a reputation for innovative, cost-effective development that prioritizes community impact. The firm’s track record — nearly 2,500 units completed and 1,500+ in production — reflects deep, hands-on knowledge of how to get affordable housing built in Washington State.

About Catalyst: Catalyst is a double bottom-line private equity firm focused on transformative real estate investments in high potential, but historically underserved U.S. markets. With over $1.1 billion in real estate assets, Catalyst invests in impactful, market-rate return oriented development projects with a primary focus on workforce affordable housing. Institutional investment expertise, relationships with qualified sponsors in high-growth secondary markets, as well as significant experience in structuring creative capital stacks, give Catalyst a competitive advantage in delivering long-term value creation to investors, as well as positive outcomes within communities.

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