Whitefish Council examines changes to housing project

Whitefish City Council on Tuesday will discuss a request to change the parameters of a planned affordable housing development located on a city-donated lot.

The Whitefish Housing Authority is requesting to amend an agreement it has with the city to broaden the income guidelines for future residents of the development. Council will discuss the matter during a work session at 5:30 p.m. 

Council meets on Tuesday because of the Martin Luther King Jr. Day holiday. Council meets for the regular meeting at 7:10 p.m. at City Hall, 418 E. Second St.

The Depot Park Townhomes Project includes 22 townhomes that are deed-restricted for affordable housing. In a developer agreement with the city signed in 2020, the housing authority agreed to keep units for sale to households not to exceed 80% to 120% of the area median income. 

However, due to rising interest rates and actual building costs, the housing authority is asking to increase the income range of households allowed to purchase units and thereby increasing the purchase price of the units. The housing authority is asking to increase the income range 100-215% AMI or 80-215% AMI. 

“While this is a significant increase, the income ranges for ownership units are still within the needs of our community based on the updated Whitefish Housing Needs Assessment and meets the metrics for the Whitefish Community Housing Roadmap,” Housing Planner Luke Sponable notes in a memo to Council. 

He points out that the changes have been brought out due to extreme changes in the building environment. Median home prices in Whitefish have doubled from 2020 to 2023 to now over $1 million and valuations for duplex/townhouse projects have tripled in the same period based on building department data. 

“Both construction costs and real estate values have seen sharp increases since the 2020 agreement and similar trends have been reported nationwide,” he said. 

A $3.2 million shortfall is projected for the project that could be made up by adjusting the income rates. 

Council is set to provide direction to city staff on how to proceed. 

Following the housing project topic, Council is set to discuss a payout increase for volunteer firefighters. 

The Whitefish Firefighter’s Relief Association is requesting City Council authorize a one-time payout of back pay relating to the monthly increase from $225 to $300 per month allowed under HB461. The bill became effective July 2013, but the $300 per month increase did not begin until October 2014. 

The back pay request represents the 15 months that lapsed between the time the increase was authorized by the state and the time it was paid to the firefighters. There are 28 volunteers receiving benefits for 20 years of service and 22 are eligible for backpay. 

Finance Director Lanie Gospodarek said the pension fund has adequate funds for the back pay and will continue to do so after it has been paid to the firefighters. 

DURING PUBLIC hearings, Council will consider two separate resolutions related to annexing property into the city. 

One request is to annex 1.21 acres of land at 26 E. Lakeshore Court and zone the property as suburban residential. 

The other request is to annex 1 acre of land at 485 Armory Road and zone the property country residential. 

Also on the agenda, Council will consider a request from Eric Sikola for a Lake and Lakeshore Protection Permit to repair a concrete wall foundation of an existing boat house with helical piers and concrete pad at 1492 Barkley Lane.

Council will look at awarding the engineering contract to Robert, Peccia & Associates to complete a Comprehensive Safety Action Plan. The city was awarded a Safe Streets for All Grant to complete the plan that could include projects and strategies to make street design changes with multimodal improvements, signage enhancements, speed management and traffic calming projects, pedestrian crossings, sidewalks and shared use paths, safe routes to school projects and public transit service improvements. 

Council will vote on an agreement between the city and the Whitefish School District for the school resource officer program. The city received a three-year federal COPS grant to supply an additional school resource officer to the school district. 

The city and district have since been participating in the school resource program that provides one officer to serve the three campuses of the district. The new agreement provides for a second officer. 

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