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Council to Vote on New Affordable Housing Option

By Beacon Staff

Kalispell looks poised to begin a new affordable housing program after city council members indicated tentative approval of a plan to begin a community land trust introduced at Tuesday night’s work session.

No votes are allowed at a work session, but city council members raised few objections to Community Development Manager Katharine Thompson’s proposal to apply for a share of the $19.6 million in federal dollars allocated to Montana through the Neighborhood Stabilization Program, signed into law by the Bush administration last year. City Council plans to vote to allow for the application of the federal funds at the upcoming June 1 meeting.

A community land trust provides availability of public housing by leaving ownership of the land in the trust, while the home buyer purchases the house itself, making for a lower price, but still allowing the new home owner to build equity through the improvements and stewardship of the house.

Under the plan, the city would partner with local nonprofit the Community Action Partnership, formerly Northwest Montana Human Resources, to apply for about $4 million in funds from the Neighborhood Stabilization Plan (NSP) with the expectation that Kalispell may not receive all those funds. Those funds would then be used to purchase foreclosed homes in Kalispell that would become part of the community land trust. How many homes could be purchased would depend on the amount of NSP money received.

NSP rules dictate that a portion of the funds must be used to assist families with an income between 80 percent and 120 percent of the area median income. The median household income in Flathead County is $40,706, as of 2006, according to the state Department of Commerce. Thompson said she believes these income levels describe most of the families making up the Flathead Valley’s workforce, who despite the recession and recent drop in real estate, still have trouble finding an affordable home.

The Community and Economic Development Department has $18,000 earmarked to contribute to the Community Land Trust if Kalispell receives the funds. Community Action Partnership, which would administer the trust, has committed $24,000 to the project. Thompson also proposed the addition of a local mill levy, which voters would have to approve. With council approval, the application for the NSP funds could be complete by July.