City of Missoula to buy affordable housing apartments

MISSOULA (AP) — The city of Missoula has an agreement to buy a 21-unit apartment building that provides affordable housing for people living with mental illness or disabilities, the city said Monday.

The Western Montana Mental Health Center built the apartment building in 1998 with public funds, but restrictions on the building's use based on that funding have expired.

The center's board decided earlier this year to move away from offering housing to clients. CEO Levi Anderson said they couldn't find someone to buy the building to continue to provide low-income housing, so they put it on the market for nearly $2.2 million.

Missoula and another buyer put in offers and the center initially accepted the other offer, drawing anger from Mayor John Engen. The other buyer backed out for undisclosed reasons and the city is now working to purchase the building through the Missoula Redevelopment Agency.

"One of the most effective ways to house folks is to ensure that they're not homeless to begin with," Engen said in a statement. "Our agreement with Western guarantees long-term, stable housing for residents who would otherwise be exceptionally vulnerable in Missoula's tight real-estate market."

The city plans to take care of any deferred maintenance while also seeking a partner to operate and potentially purchase the building, provided they guarantee it will remain low-income housing, Engen said.

"The Western Montana Mental Health Center is excited to arrive at a resolution that allows this supportive housing to be maintained in public ownership while allowing our agency to continue focusing on clinical programs and services," Anderson said in a statement.