Tranel talks housing crunch during roundtable in Kalispell

Flathead Valley housing advocates argued Wednesday that a countywide housing authority is needed to mitigate the lack of affordable housing in the region.

The call for a county-level housing entity was made during a roundtable discussion with Monica Tranel, a Democrat running to represent Montana’s 1st Congressional District, featuring municipal officials, nonprofit leaders and business community representatives in Kalispell. 

“I think one challenge that we have in the Flathead is that we don’t have an overarching housing organization,” said Danielle Maiden, cooperative housing director for NeighborWorks Montana. “We have all the people at this table doing different aspects of housing but we do not have a housing authority for the whole county.”

Several asked Tranel to address the difference between incomes and housing costs, the spike in building costs, and the need for collaboration across private and public sectors if elected to the seat held by Republican Congressman Ryan Zinke.

“I've traveled this district now for years and I can say that when people ask me what I’m hearing about its housing, housing and housing,” Tranel said. 

The average cost of a two-bedroom, two-bathroom home in the Flathead Valley averages about $628,000, according to Erica Wirtala, public affairs director of the Northwest Montana Association of Realtors. 

In Whitefish, a two-bedroom home costs on average around $845,000. That figure is $594,000 in Kalispell. 

Homebuilders present at the roundtable cited supply costs as a factor in housing construction and cost. 

“We have been struggling with material and building prices,” said Merna Terry, operations manager at Terry Homes. 

The three “Ls” of real estate, according to Bill Leininger of the Northwest Montana Association of Realtors, are lumber, land and labor. All three, Leininger said, have seen significant price increases in recent years. 

“You cannot even come close to building at an affordable rate. It’s just impossible,” said Casey Malmquist, the owner of KCM Enterprises and Malmquist Construction.

On the nonprofit side, organizations like Habitat for Humanity of Flathead Valley struggle to retain staff while competing with other labor demands throughout the building industry. Land prices also limit opportunities for the group. 

Another pressing issue is the lack of structures, whether that be homes or apartments, for people to obtain. Hillary Shaw, executive director of the Abbie Shelter in Kalispell, said that women leaving the facility often struggle to secure housing.

Shaw recommended high-density housing, where dozens of units could be created for transitional housing and low-income housing. 

“The reason I am at this table is because domestic violence is the leading cause of homelessness for women,” she said.

Chris Krager, executive director of the Samaritan House in Kalispell, pointed to the lack of affordable units in the valley. The Samaritan House hosts around 100 individuals a night. Many can’t find anywhere else to stay, he said. 

According to Krager, the valley’s scarcity of mental health services adds to the conundrum. 

“A community that is proactive in trying to keep their mental health services has more available [housing]… we’ve just had a rough run,” Krager said. 

Cammi Sullivan, development director at the Flathead Warming Center, echoed Krager and Shaw. 

“We are full every night,” Sullivan said. 

Another issue is the disparity between how much people make and how much it costs to live in the valley. 

That discrepancy may need to be addressed federally, said Marney McCleary with Rural Assistance for Communities, who helps western states with technical assistance, affordable housing and utilities. McCleary is currently working with the Samaritan House on a project to improve its facility. 

“I’d like the state housing credit to come to fruition,” McClearly said. “We need it desperately.” 

There are other federal programs that also benefit the Flathead Valley, said Wirtala with the Northwest Montana Association of Realtors. Those include mortgage interest deduction, the 1031 exchange and continuing to subsidize flood insurance. 

“...The first time home buyer assistance is not matching up with the realities of the market,” Wirtala said. 

Further, individual communities also recognize their own needs. Whitefish City Manager Dana Smith said that a mortgage interest deduction is not as beneficial for her municipality owing to the high number of people who own second homes in the area. 

“Whitefish is impacted by second homes very significantly,” Smith said. 

Employees and residents of Whitefish continue to struggle with finding housing.

“In Whitefish the demand is so high. We can increase density, but if we don't put requirements on those homes being affordable, then they're going at market rate and going to out-of-state individuals, maybe some in-state individuals in other areas,” Smith said. 

Kalispell City Manager Doug Russell said the housing market is always changing. However, one program that needs to be more emphasized is the low-income tax credit program, which Russell said had “withstood the test of time” and helped to create affordable units.

“Housing and homelessness in particular are very complex issues, extremely complex,” said Malmquist. “At the end of the day, I think what we have in terms of the housing challenge is simple math … We need to change the term ‘affordable housing,’ because it is not [affordable], it's never been and it's getting dramatically worse.” 

Tranel hosted the roundtable on Wednesday, Nov. 8 at the Northwest Montana Association of Realtors as a part of her “I’m Listening, Montana” tour. After her roundtable discussion, she was expected to meet with the Flathead County commissioners.

“We didn’t get here overnight and we’re not going to get out of this overnight,” Tranel said.

Other representatives at the discussion included Nathan Dugan with Shelter Whitefish, Mike Smith with Glacier Bank and Mark Freidline with the Flathead Building Association. 

Reporter Kate Heston can be reached at kheston@dailyinterlake.com or 758-4459.