1. Presentation - Housing Affordability Ladder GroupCity of Kalispell.
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758W7700 Fax (406)758-7758'
REPORT TO. Honorable Mayor and City Council
FROM: Lynn Moon, Community Development Housing Manager
SUBJECT: Housing Affordability Ladder's recommendation of Dousing Priorities
MEETING DATE: February 20, 2008
BACKGROUND:
The Housing Affordability Ladder is comprised of agencies and individuals whose common
interest and expertise in housing have brought them together to identify issues, set priorities,
provide education and support and to seek resources to promote decent, safe, well -planned
housing, especially affordable including workforce housing, within the Flathead Valley.
J members first came together in late 2006 in an effort to unselfishly share, openly contribute
: -Yr �x ork side by side from a foundation of the highest levels of knowledge, successes, and long
1em-i experiences from local to national levels.
be idea of the "Ladder" came about during a discussion at one of the meetings of the group in
which it became apparent that our citizens are at different rungs of the Housing Ladder.
Beginning with people who are homeless, followed by renters who are subsidized; Habitat for
Humanity partners; mutual self-help housing through Northwest Montana Human Resources;
renters at market rate; first time homebuyer programs through USDA Rural Development and
Glacier Affordable Housing Foundation for persons who income is at or below 80% of median
income for Flathead County; homebuyer programs through Montana Board of Housing and local
lenders; and finally market rate housing purchased by persons whose income allows them to
purcl1ase a home without benefit of any type of subsidy.
At the request of City Council, HAL has prepared its recommendations for housing priorities.
'Fhese priorities will be presented by one of the HAL members, Mike Smith of Glacier Bank.
Several other HAL members will be attending the work session and will be available should
anyone have any questions.
Respectively submitted,
1
Ly n Moon
Community Development Housing Manager
HOUSING AFFORDABILITY LADDER'S RECOMMENDATION OF
HOUSING PRIORITIES TO
THE CITY OF KALISPELL
Adopt an Affordable Mousing Strategy Plan
Define goals and provide supporting strategies to create, preserve and maintain
affordable housing for persons earning 140% of median income or below within
Flathead County, in a way that is in keeping the needs and strategies of the
community. The Plan would be designed to adhere to and build upon the goals
and objectives of City of Kalispell Growth Policy.
Adopt Inclusionary zoning
In order to receive any development incentives, the City would require that a
certain percentage of the units be affordable to persons whose incomes are at or
below the Montana Board of Housing income levels in effect at the time of final
approval by Council or 140% of HUD median income established for
Flathead County, which ever is greater. Cash payments in lieu of the number of
affordable housing units required could be made to receive the development
incentives.
Commit to financially support the funding of a centralized agency (ETHIC) to form
the Community Land Trust that serves Flathead County at large
It is envisioned that there will be other Land Trusts formed within the County
such as the Whitefish Land Trust. It is possible and/or probable that some of
Management services could contracted out to the (Flathead County) CLT — such
as screening and selecting buyers who meet eligibility standards; ensuring that
buyers have access to appropriate financing; monitoring of units to ensure owner
occupancy and payment of taxes and insurance; preparation of loan documents;
collection of ground lease payments, and managing the process of resale from one
owner to the next.
Other services that can be provided by ETHIC include:
4e Provide First Time Homebuyer Education/ Housing Counseling Agency
•: Provide continuing education — post purchase re: budgeting, home
maintenance, etc.
•,*e Develop and maintain a "Housing Hotline" and a Housing Resource
Center for persons of all income levels who are seeking information
regarding housing, including:
• First Time Homebuyer Programs — market and subsidized
• Rentals - market and subsidized
• Homeless shelters — including special needs, i.e., victims of
domestic violence, Youth Shelters, persons with mental illness
■ Mainstream housing financing programs for persons of all income
levels
• Foreclosure prevention
• Reverse Mortgage information
• Housing development processes and incentives
Identify and/or seek funds that can be used to develop workforce housing
available to persons whose incomes are at or below 140% of median income for
Flathead County
Possible funding sources include:
Cash payment in lieu of affordable housing units —development incentives for
new construction
Major employers
Private Foundations
Montana Board of Housing Programs
USDA Rural Development
Community Development Block Grant
HOME (Home Investment Partnership Program)
Federal Home Loan Bank Programs
Tax Increment Financing funds
Identify and/or seek funds for a home repair program for people who currently
live within the city limits of Kalispell and who have incomes less than 80% of
median income for Flathead County
Passible funding sources include:
USDA Rural Development
Community Development Block Grant
HOME (Home Investment Partnership Program)
Tax Increment Financing funds
10
When appropriate, contract with other agencies to provide services necessary to
accomplish established priorities (Don't reinvent the wheel)
Explore opportunities to allow impact fee deferrals for development of
permanently affordable housing
Explore opportunities to allow modification(s) of development standards to
promote affordable housing development (Evaluate existing zoning, building
and parking requirements to determine if current regulations or interpretations of
regulations)
Support local option tax as a mechanism to fund infrastructure in support of
affordable housing development
Support critical legislation and/or policies that eliminate or mitigate negative
impacts on affordable housing development
Adopt a policy that requires city -awned surplus land to be offered for affordable
housing development that results in permanent affordability