12. Motion to Grandfather Application for Self-Help Housing - Northwest Montana Human Resourceslam;•. j �n?:: -..;: ..{_:
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.5 City
Post Office Box 1997 W Kalispell Montana 59903-1997 - Telephone (406) 758-7000 Fax W (406) 758-7758
REPORT To: Honorable Mayor and City Council
FROM: James H. Patrick, City Manager
SUBJECT: grandfather Northwest Montana Human Resources' Application for Self -
Help Housing
MEETING- DATE: March 5, 2007
BACKGROUND: Northwest Montana Human Resources submitted a letter requesting
Council's consideration to grandfather certain impact fees. In July, 2006, Northwest Montana
Human Resources representatives requested building fees and impact fees to build 16 new homes
in their mutual self-help housing program. This information was submitted in a grant request to
USDA. USDA approved a grant to purchase land and pay for the known building fees and
SDC's. During the time required for agency approval, Kalispell City Council adopted impact
fees for police, fire and storm water which raised the impact fees $1,668 per home. NW
Montana Human Resources did not receive grant funding to pay this additional amount. This
significantly impacts on the families approved for homes. At the last Council workshop on
February 26, 2007, Council discussed this issue and asked that a resolution be prepared for their
consideration at the next Council meeting. The resolution is attached as requested. This is not a
waiver of impact fees, it is a grandfathering of the fees effective the day the grant was submitted
to USDA. Future grants will include all impact fees.
RECOMMENDATION: That Council adopts the attached resolution and grandfather the
impact fees to the day the grant was submitted. This will directly assist 16 families needing
assistance to build and own a home.
Respectfully submitted,
ames H. Patrick
City Manager
Northwest Montana Human Resources, Inc.
214 Main. Street P.O. Box 8300
Kalispell, Montana 59904-- t 300
Phone: 406-75?-6565 Pax: 406-75'. -65S?
E-mail: nn-ihr @ kalhrdc.hhs.state. mt.us
www.nmhr-distIO.org
A Non -Profit Community Action Partner that Provides Opportunities
for Disadvantaged Citizens to Become Self -Sufficient
February 12, 2007
James Patrick, City Manager
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903
RE: Request for Waiver of New Impact Fees
Dar Mr. Patrick:
As discussed in our phone conversations of last Friday, ! am requesting the City
Council approve a waiver of the recent and new impact fees for police ($533), fire
($43) and storm water ($1092) on the 16 mutual self-help housing homes which
are about to startconstruction in Empire Estates.
These homes have been in the planning and budgeting phase for the past 8
months. We have worked with Dwain Elkins very closely. Last fall we got quotes
from the City Building Department for the costs to be included in each home's
budget to then submit to USDA for approval. The new impact fees were not
included in the budgets at that time. The budgets have now gone through the
entire approval process, closing on mortgages for 18 low-income families have
occurred and no additional dollars are available to pay for the new impact fees.
The Mutual Self-help Housing program has built 72 homes for low-income families
in the last 4 years in the Flathead. All participating families are below 80% of
local -area median income and most are below 50% of LMI. Sixteen homes are in
Kalispell, 8 on Buttercup Loop and 8 on Coot Court. We, along with 16 new
families, are desperately trying to start construction on 8 more in Kalispell on
Rockefeller Drive and 8 on Vanderbilt Drive in Empire Estates. The new impact
fees are a major obstacle.
1 would hope that this waiver request can be put on the City Council's agenda for
February 20, 2007. l will plan to attend that meeting to answer questions. if you
have questions, please call me at 752-6565. Thank you in advance.
Sincerely,
J s
V
Dougl D. Rauthe
Executive Director
District X HRDC
LINCODFLATHEAD
SANDERS LAKE
FIELF�E5,
LIBBY
202 East 6th
P,Oi flax '133
Libby, MT 59923
40�_293-- / I
POLSON
I tQ Main St.
Suite b
PO, Box 132
Poison, MT 59860
406-88 -3)470
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