Kalispell Council to take input on workforce housing funding proposal

Kalispell City Council on Monday is set to take comments on a plan that would allow for city funds to be used for workforce housing projects.

City Council has been wrestling with a decision on the matter, which would open up tax increment financing (TIF) funds to be made available for projects with workforce housing. During previous discussions, Council appeared split on the matter with some wanting more flexibility in the program’s income guidelines and others saying the change is unnecessary because developers can already apply for TIF funds.

The meeting starts at 7 p.m. in the City Hall, 201 First Avenue East.

Kalispell is looking at updating two of its urban renewal plans to allow for TIF funds to go toward housing projects. As proposed, developers could apply for funds to assist with workforce housing for households making 80% to 120% average area median income.

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.

State law allows for the use of TIF funds for workforce housing, but the city’s proposal looks to specifically call that use out in the city’s Downtown Urban Renewal Plan and the West Side/Core Area Urban Renewal Plan, along with providing income parameters.

Currently, a developer could ask the city for TIF funds to be directed to the infrastructure costs of a project, which some argue would then lower the overall cost resulting in reduced housing costs. The proposed changes would allow a developer to apply for TIF funds specifically as a way to reduce the cost of the rent.

UP FOR consideration by Council is a request from Green Acres Cooperative for the city to serve as the host for the submission of a Community Development Block Grant for the purpose of connecting to the city’s wastewater system.

The Green Acres community operates six septic and drain field systems that were installed in the mid to late 1960s and are at the end of their useful life. If awarded, the grant would help fund the design and construction of the onsite infrastructure needed to connect to the mains within South Woodland Drive.

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