Flathead County eschews state housing program

Saying it’s not a fair use of taxpayer funds or to future homebuyers, Flathead County commissioners on Tuesday quashed implementing a state housing program here.  

Commissioners in a split vote denied participating in the program created by the state Legislature through House Bill 819. Commissioners Randy Brodehl and Pam Holmquist voted in favor of denial. 

After reading the bill, Brodehl said he remains convinced that it takes money out of the pockets of taxpayers and redistributes it to new homebuyers. He said the money would have been better spent providing residential property tax rebates.  

“We shouldn’t do the wrong thing just because the money is available,” he said. "I’m not convinced the risk to the taxpayers who are providing the money and the risk to first time homebuyers is a reasonable option for the Flathead."  

House Bill 819 made $4.5 million available to Flathead County to use for a homeownership program that would have provided homebuyers with a loan to assist in lowering the purchase price of a deed-restricted home. In exchange for the assistance, homebuyers agree to an equity cap of 1% per year and that allows for money to be put back into the program for future loans.  

Saying she couldn’t condone a program she claims would allow a homebuyer to purchase a home they can’t afford, Holmquist said the government shouldn’t be involved in making decisions about homeownership because it’s “not in the business of picking winners and losers.”  

“Why would we want to be in a program that would put people in more debt,” she said. “It’s really hard for me to move forward with a program that has the potential to put these families into a worse position than they are now.”   

Commissioner Brad Abell, who initially moved to approve the program, but couldn’t get support from the other commissioners, acknowledged that the program isn’t perfect. 

“I have concerns about this bill,” he said. “But if we don’t take it, we turn $4.5 million back to the other counties in Montana.” 

The vote came on the last day commissioners could approve participation. The funds set aside for Flathead County will be distributed to the other counties participating.  

Over the past several weeks, commissioners have heard from a diverse group of community members supporting the use of House Bill 819. A number of large employers told commissioners one of the acute challenges they face in retaining and recruiting employees is the cost of housing.  

Several on Tuesday reiterated that the program would provide another option for creating workforce housing.  

Mallory Phillips, with Shelter WF, said the money would help teachers and firefighters put money toward housing stability.  

“This makes it possible for people who work in the Flathead to set down roots in this community,” she said.  

As a taxpayer and homeowner, Dru Rafkin told commissioners she’s seen too many individuals move from the Flathead because they can’t afford homes.  

“I’m thrilled to be able to have a say in where my taxes go with this,” she said. “I wish all my taxes to go to House Bill 819.”  

Referencing comments made previously by Brodehl saying it creates a socialized program, John Ghekiere called the remark “inflammatory.” 

“You’ve heard robust verbal and written support for this,” he said. “And if calling it socialism is being used as a notion of protecting us, I can say it’s not protecting us if it’s something we’re looking for.”  

A few individuals on Tuesday also spoke against the program.  

Republican Rep. Tanner Smith of Lakeside reminded commissioners that they are all Republicans and should follow the party’s platform of less government. He likened the program to putting $9 million in the middle of the room saying it wouldn’t be right to just take the money because it’s up for grabs.  

“This is Democrat policies in California that created this exodus to Montana. That’s why folks moved here,” Smith said. “So, as Republicans what we can’t do is have a knee jerk reaction to fix a Democrat policy problem by more Democrat policies. What we don’t want to do is add more layers of government so down the road we will be taking advantage of.”  

Doug Adams, who serves on the Flathead County Library board and recently running as a Republican lost in a bid for Senate District 2, said it’s not the government’s responsibility to fix the housing shortage in the Flathead Valley.  

“Government is so efficient and wise they always make things better, right?” he said. “And we the ignorant subjects are too hapless and stupid to handle things on our own, or maybe we’re just lazy because we know that no matter how badly we run our lives, our sugar daddy government will bail us out.”  

The state Legislature in 2023 put aside $50 million to address workforce housing through housing nonprofits by establishing Community Reinvestment Organizations. House Bill 819 created an account to provide funds to such organizations that along with local matching funds would assist eligible households in purchasing deed-restricted housing.    

A statewide organization that creates homeownership opportunities, NeighborWorks Montana applied in several counties, including Flathead, to carry out the program.   

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