Dec. 22—Funds available to Flathead County through a state program are desperately needed to address the workforce housing shortage, advocates say, but with the clock ticking, it seems unlikely the county commissioners will approve it.
A wide range of supporters are lobbying for passage of the housing assistance program created by the 2023 Legislature that would provide a total of $9 million to help homebuyers in the county.
Commissioners have until Dec. 31 to approve the program, but as of Friday it was absent from upcoming agendas. Commissioner Brad Abell said he supports the program but is skeptical about an official vote.
“The other two commissioners are concerned, and it takes two commissioners to get it on the agenda,” Abell told Inter Lake.
Private individuals, business representatives and housing professionals have argued that the $4.5 million in state funds made available through House Bill 819, along with a private match required from the nonprofit that administers the program, are critical are.
Kay Burt of Kalispell said she came before the commissioners as a grandparent and disgruntled resident over the housing crisis facing the Flathead Valley. She asked commissioners Tuesday to approve the program.
“I am a grandmother of grandchildren who I hope can be sixth-generation Flathead Valley residents,” she said. “But I can’t imagine them ever being able to afford a house between $600,000 and $800,000. We exchange the inheritance of our grandchildren for that of wealthy foreigners.’
The average cost for a single-family home in Flathead County this year was $650,000, according to figures from the Northwest Montana Association of Realtors.
Kim Morisaki, executive director of the Northwest Montana Community Land Trust, explained that the loan program uses state money to attract private investment. She called it an out-of-the-box creative tool that has a positive impact on the economy.
“If we don’t have a stable community with a stable workforce and stable housing, we all suffer,” she said.
Recent public meetings before the commissioners drew dozens of comments in favor of the program. A public records request filed by Inter Lake shows commissioners also received more than 50 pieces of correspondence in support.
NeighborWorks Montana has signed on to administer the program, which provides homebuyers with a loan to help lower the purchase price of a home. Those loans are then returned to the program to help future homebuyers.
If the commissioners do not sign off on the organization administering the program, Flathead County funds will be redistributed to other participating counties.
The loss of funds already raised is one reason Abell said he supports the program. It’s no different than when the county accepted federal money from the American Rescue Plan Act in 2021 and was subsequently able to do “good things,” he noted.
“I see this much the same,” he said. “I understand the concerns of the other commissioners, but I think the benefit of this outweighs that.”
Commissioner Randy Brodehl did not respond to a request for comment on the public input, but previously told Inter Lake that the program is “socialized” because it is taxpayer-funded and regulated by the government. The best option for affordable housing would be through private investment, he said.
Commissioner Pam Holmquist, who also did not respond last week, previously said she was looking into the program.
Kalispell Public Schools Superintendent Matt Jensen on Thursday chastised commissioners for not putting the program on the agenda for a public hearing and vote.
“Legislation like this has a major impact on hardworking people in our community and not giving them the opportunity to hear the thinking behind a pro or no vote on this issue is disingenuous to the magnitude of the problem we face. have with housing. in our community,” he said.
MORE THAN half a dozen real estate agents and the Northwest Montana Association of Realtors submitted letters in support of the housing program. The Kalispell Chamber of Commerce also supports this, along with major employers like Logan Health, Applied Materials, Nomad GCS and Flathead Electric Co-op, who are seeing ongoing recruitment and retention challenges due to housing.
“The lack of viable housing is often cited by successful applicants as the reason they cannot accept our employment offer,” wrote Austin Neese, vice president of human resources at Logan Health. “Most applicants compare job openings elsewhere and can find cheaper housing, even in much larger metropolitan areas. Housing is also often mentioned in our exit interviews as part of why we struggle to retain our existing workforce.”
The availability of workforce housing is essential to the valley’s continued growth and workforce stability, said Kisa Davison, president of Iron Star Construction.
“Missing out on this funding would not only be a disservice to our community, but it would also mean turning our backs on the opportunity to create long-term, sustainable housing solutions here in the Valley,” Davison wrote. “We cannot allow these resources to be distributed to other provinces when they are so urgently needed in our own backyard.”
Kalispell Public Schools board member Sue Corrigan told commissioners that the school district has done everything it can to increase wages for teachers and school staff, but it is not enough to recruit and retain employees.
“We are doing everything we can to keep people here, but housing is expensive,” she said. “We have to be the community we want to be. We all have to do our part.”
HOUSING ORGANIZATIONS, municipalities and private individuals have expressed their support in letters and at public meetings for commissioners.
Riss Getts, acting director of the Whitefish Housing Authority, praised the commissioners for their careful use of taxpayer dollars and pointed out that tax funds already paid for by their constituents will benefit another community if the program is rejected.
“I believe this program is actually extremely fiscally responsible compared to other forms of housing financing because it is a revolving fund,” she said. “The money will help young families buy homes at a price they can afford with their fair local wages. That loan will flow back into the fund when they sell their home and then benefit another family when the money goes back into the cycle of free people. housing market.”
Daniel Sidder, executive director of Housing Whitefish, said that while the organization offers rental assistance, 70% of the program’s applicants are interested in homeownership opportunities.
Sean Patrick O’Neill, of the Community Action Partnership of Northwestern Montana, said funding from the program is key to keeping those who are struggling in the community by providing a means to homeownership.
Kalispell and Columbia Falls both endorsed the program in letters to county commissioners, and a Whitefish councilman wrote an email to commissioners supporting the program.
Kalispell Mayor Mark Johnson said affordable housing solutions remain a top priority for the city.
“Our mutual economies can grow stronger with accessible housing options, and with the rising cost of housing, our economy and our residents are suffering,” Johnson said in a letter to commissioners. “Finding solutions to this complex housing problem is not easy, but fortunately House Bill 819 gives the county a way to move forward by simply participating [this program].”
While pleading with commissioners to approve the program, citizens point to personal struggles and those of family members and coworkers in finding housing as reasons to implement the housing program.
Claire Graham, who works in Kalispell Public Schools, has witnessed many students become homeless or have to move because guardians can no longer afford housing.
“I have noticed that when some of these children sleep in an RV, on a family member’s couch, or even on the floor, they have difficulty staying awake and paying attention in school,” Graham said in a letter to commissioners . .
Scott Mergenthaler, who works at Logan Health with his wife, told commissioners that the housing situation will only get worse if no action is taken.
“Approving this funding will preserve those who keep our community running – workers who deserve a place to live here in Flathead,” he said. “This is for the teachers, healthcare workers and tradespeople who all need affordable housing.”
The homeownership program would provide homebuyers with 30% of the cost of the home as a loan or investment, in exchange for assistance homebuyers agree to 1% equity per year. The cap allows remaining equity to be put back into the program for future home loans.
The program would like to work with households representing 60% to 140% of the region’s average income. According to government-sponsored Fannie Mae, Flathead County’s median income in 2024 was $88,400, which is 100% of the AMI.
Deputy Editor Heidi Desch can be reached at 758-4421 or hdesch@dailyinterlake.com.
