Kalispell is set to receive a new workforce housing complex in 2027, funded through an award from the Montana Board of Housing.
With the $8.3 million grant, the developers, Mach LLC and TE Miller, will construct 24 affordable units, through a mix of one- and two-bedroom flats, at 40 Appleway Drive. The Community Action Partnership of Northwest Montana partnered with the two teams on the project.
The Outpost at Kalispell will be, on average, for those at 53% of the average median income (AMI), with nine one-bedroom units and eight two-bedroom units allocated for those at 50% AMI and three one-bedroom units and four two-bedroom units allocated for those at 60%. Single-person incomes range from $33,800 to $40,560, at 50% and 60% AMI respectively, according to data provided by the developers.
Ten percent of the units will be set aside for veterans, victims of domestic violence, or youth aging out of foster care.
Grant Schnell of Mach LLC is based in Whitefish and said he’s watched as friends and acquaintances have moved away due to rising housing costs in the Flathead Valley.
“Just by living here I’ve felt the need for affordable housing across the northwest,” Schnell said. “It’s crucial that our local workers and their families have housing they can afford.”
Schnell noted that despite the lower pricing, the units are larger than typical market-rate offerings and in line with market standards for a three-story walkup.
Many of the apartments will feature in-unit amenities such as electric kitchen appliances, washer dryers and balconies or patios. The common area will also feature an outdoor playground, grilling stations, and an indoor shared space with a kitchenette. The project is located along the Parkline Trail within walking distance to a grocery store, restaurants, a fitness center, and close to downtown.
For those making 50% of the AMI, rent will be fixed at $905 for a 704-square-foot one-bedroom and $1,086 for a 955-square-foot two-bedroom. For those at 60% AMI, rent will be $1,086 for a one-bedroom unit and $1,303 for a two-bedroom.
The complex is the first award the city has received from the state’s low-income housing tax credit program in a couple years, Schnell said, noting the finite amount of funds that the program has to distribute across the state each year. This year, Miles City, Missoula, Billings and Livingston also received affordable housing awards.
With the area’s high construction costs and expensive real estate, Flathead County has a 3,000-unit housing shortage that could rise to nearly 14,000 units by 2032, according to data collected by the Bureau of Business and Economic Research at the University of Montana.
The project will help fill in some of that, Schnell said, acknowledging that more is needed. The development team is currently working on two other affordable housing to propose next year.
“We’re always actively looking at other projects,” he said. “The stars just kind of aligned on this one in Kalispell.”
Construction will begin on the property-tax exempt project in April, with estimated competition set for 2027.