Kalispell Council moves discussion on workforce housing funding to work session

Kalispell City Council is planning a work session later this month to discuss changes to its urban renewal plans that could allow for workforce housing projects to be eligible for tax increment financing funds.

Council on Monday had been set to schedule a public hearing on amending the plans, but a few Councilors expressed concerns and asked for more time for discussion. The proposed changes are to the Downtown Urban Renewal Plan and the West Side/Core Area Urban Renewal Plan.

Updates to the plans would allow for tax increment finance funds to be made available for affordable workforce housing projects. Workforce housing is often used to indicate a program targeted at households earning too much to qualify for traditional housing subsidies — those in the 80% to 120% of area median income or AMI range.

Council Ryan Hunter was the primary objector, while Councilor Jessica Dahlman also expressed concerns about changes as proposed.

Hunter said he has concerns about the proposed income range for housing that would qualify for TIF dollars.

“I’m very supportive of using TIF funds for workforce housing, but I have a number of changes I would like to make to the ordinance,” Hunter said.

In Flathead County, the estimated area median income for a four-person household is $80,300. To be considered at 80% AMI, the same size household would need to earn $63,500. To be at 120% AMI, the household would be earning $95,300.

Hunter said a broader range of salaries should be included, noting a person making $15 per hour does not meet the 80% AMI threshold and still needs housing.

“Though there are federal programs that look at those below 80% AMI, but they are woefully underfunded so there’s even more reason to look at using TIF funds for housing for those workers.”

“I would like low-income housing, not just workforce housing, to be part of the urban renewal plan,” he added. “Our plans have goals to provide housing for a variety of income levels, but we are not serving a variety of income levels if we exclude those below 80% AMI.”

Dahlman agreed, saying she’s not comfortable with the 80% to 120% AMI range.

“Someone at 120% doesn’t need assistance with their housing,” she said.

Based upon the income range and guidelines of affordability, a four-person household at 80% AMI would be able to afford $1,587 per month for total housing costs. The same household at 120% AMI, would be able to afford $2,382 per month.

Kalispell uses TIF funds within the boundaries of both plans as part of the “overall strategy to meet its needs of promoting economic development, improving area employment opportunities, improving area housing opportunities, and expanding the community’s tax base.”

The work session is set for Aug. 22 at City Hall, 201 First Avenue East. Council meets at 7 p.m.

DURING THE meeting Monday, Council also approved the annexation request from William and Simone Bailey for property less than an acre in size on South Woodland Drive. The annexation request is based on a need to connect to city sewer due to a failing septic system. Zoning of R-3 residential was also approved for the property.

Giving its approval of a request from Morning Star and Green Acres Cooperative, Council OK’d the city serving as a host for the submission of a Community Development Block grant application for the purpose of both communities connecting to the city’s sewer system.

Both mobile home communities have septic systems at the end of their life and would like to connect to the city system. If awarded the grants it would help fund the design and construction of the onsite infrastructure needed to connect.

Features Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.