Whitefish struggles to provide workforce housing

Jason and Abby Forrest began to test the waters of Whitefish’s housing market shortly after the arrival of their first child three years ago.

The couple considered themselves lucky to be renting a decent duplex in town, but with a growing family, they sought a modest house with a big yard and a garage — a place they could call home for years to come.

Jason is a sales manager at Whitefish Mountain Resort and Abby works for the Center for Restorative Youth Justice in Kalispell. Yet, even as a two-income household, they quickly realized they might be all but priced out of the Whitefish housing market.

In 2013, the median price for a home in Whitefish was $245,000. That compares to $167,000 just 15 miles down the road in Kalispell and $153,000 in Columbia Falls.

“We knew we wanted to stay in Whitefish,” Jason said. “But when we started to look around and compare prices, we found we probably could only afford Columbia Falls or Kalispell.”

There simply was no stock in Whitefish at their price point, and the rental market was bleak at best, Jason said.

“If you want a luxury condo, or to be a ski bum and share a room with someone — that’s doable,” Jason said. “But there’s not a lot of rentals for families.”

Finally, after years of searching, a home became available this spring through the Whitefish Housing Authority’s affordable homeownership program. The Forrest’s income qualified for the program and in March they moved into their new home — just in time for the arrival of their second child due in December.

Since 2005, the housing authority has successfully sold 28 houses through the program.

“The housing authority offered us an opportunity to own a home — a place we can invest in,” Jason said. “This gives us a sense of ownership.”

“But if it hadn’t worked out, we would have bought a place in Columbia Falls. I’m seeing more and more of our Whitefish friends moving out of town.”

The Forrests’ story represents a trend that has Whitefish community leaders concerned.

The lack of workforce and family housing is often discussed by Whitefish City Council, and the topic was highlighted at a recent series of neighborhood meetings hosted by the Whitefish Chamber of Commerce.

At one of the neighborhood meetings, Grouse Mountain Lodge manager Karen Baker called the lack of workforce housing “a huge issue” in the service industry.

Whitefish resident Anne Shaw Moran bluntly described the local rental stock as “nonexistent.”

“Can people live and work here?” Moran asked. “We need to make sure we have the bedrock of what makes a community.”

According to a 2012 study by the Whitefish Housing Authority, about 12 percent of Whitefish residents have a household income of less than $15,000, and 18 percent have a household income less than $25,000.

What’s more, the study notes, is that half of Whitefish households qualify for low-income housing programs. In fact, a couple with a household income less than $46,000 would qualify for housing assistance.

“These are not poor people,” said Lori Collins, director of the Whitefish Housing Authority. “These are nurses, teachers, police officers and waitresses — and they can’t afford to live here.”

An affordable mortgage or rent payment is calculated by taking 30 percent of a household’s gross income, according to the housing authority. Based on that calculation, a construction worker making $17 an hour could afford a monthly payment of $816, while a registered nurse making $28 an hour could afford a payment of $1,370.

That price range, between $800 and $1,300, represents a black hole in Whitefish’s housing market, says Jill Zignego, owner of Five Star Rentals in Whitefish.

“As quick as we get something in that range, it rents, then there’s no stock again,” she said.

“It’s a dilemma. We need more housing in that price range. I don’t know what the solution is, but I know we have a problem.”

For years, the city of Whitefish has offered density bonuses to developers in an effort to encourage the construction of more affordable housing. Yet to date, no developer has been able to take advantage of the incentive.

“The economics usually don’t work,” says Whitefish developer Sean Averill. “The land here is so expensive, it’s hard to pencil out.”

The density bonus helps the math, Averill says, but added density is often met with opposition.

Averill knows well the challenges associated with developing affordable housing in Whitefish.

Averill, along with Will MacDonald, proposed last year to build a 174-unit apartment and condominium project on 24-acres off East Second Street. The initial rendition of the project proposed to provide the housing authority with 17 rent-regulated units in exchange for the density bonus.

But neighbors quickly and loudly voiced opposition. They said it was out of scale of the neighborhood and too dense for the area.

“ I thought it would be embraced,” Averill said. “I was expecting open arms from the city. I thought it was a need that needed to be filled.”

The developers returned asking for 150 housing units, and then reformatted the design to 143 units. After months of back-and-forth with neighbors, the project eventually was reduced to a 62-lot subdivision of single-family homes with no affordable housing.

Last month, Averill brought forth a different proposal for a 60-unit apartment complex off U.S. 93 South. In order to gain the density bonus, six of the units will go to the housing authority as deed-restricted rentals.

That proposal also has seen push back from neighbors in the Park Knoll area who say it’s too dense and worry about housing along the commercial strip.

The project is slated to go before city council on Nov. 3.

Averill says he now realizes that any development he proposes will face opposition from neighbors, but says that at some point the city needs to take a stand.

“The city has to ask what kind of town it wants to be,” Averill said. “Do they want to encourage [affordable housing] or not?”

“They’re going to have to take a stance and realize that someone might not like it. But they have to look at what’s best for the greater good of the town.”

As an operator of The Lodge at Whitefish Lake, Averill says he’s seen first hand the need for workforce housing.

“As one of the larger employers in town, I see it and hear it on a daily basis,” he said.

According to a housing authority study, the largest segment of Whitefish’s workforce — about 30 percent — is in the hotel and food service industry. Those workers earn between $17,000 and $22,000 annually, the study notes.

“Hopefully we can take care of our town’s working base,” Averill said.

Collins supports the apartment project as proposed and said the six affordable rentals would be a huge benefit to the community.

She rather would have seen the Second Street project happen with more housing within walking distance to town, but says she’s glad to see another proposal come forward.

“This type of housing has got to go somewhere,” she said.

“There’s room for everybody in this town.”