Whitefish affordable housing project likely dead

A proposal for an affordable housing complex on Highway 93 South is likely dead after it wasn’t selected to receive critical funding in the form of federal tax credits.

The Montana Board of Housing on Tuesday reviewed 22 proposals that were in the running to receive a slice of $26 million in housing credits available to assist with projects aimed at addressing affordable rental needs across the state.

Applications came from 18 cities, including for one project in Whitefish.

Investors from The Commonwealth Companies hoped to use the funding to assist in purchasing a parcel of land next to the Les Schwab tire store. Phase one of The River View Meadows proposal included 36 units on the property that would stay as affordable housing for at least the next 60 years.

Whitefish Housing Authority director Lori Collins said she was heartbroken to learn that Whitefish was denied funding.

“I’m just so disappointed,” Collins said. “The project is dead. Without the funding, [Commonwealth] can’t do it.”

The Housing Authority was set to be a non-financial business partner in the project, with the investor buying the tax credits.

Collins said most of the projects that received funding were from repeat applicants that likely already own the land.

According to Collins, Commonwealth is considering options for purchasing the parcel with the hope that it better situates the project to receive funding next year.

“That’s a nice piece of land for not a lot of money. If we can purchase it and sit on it... that puts us in a way better position,” she said.

Earlier this month, Whitefish City Council decided to assist in funding a housing needs assessment and plan that is expected to take a year to complete. Collins said having that plan in hand could be helpful in applying for these types of grants in the future.

Some neighbors to The River View Meadows project spoke out against the plan last year, questioning the proposed zoning. In a Dec. 2 letter to the Pilot, the property owners of Rivers Edge at Whitefish said that while they aren’t against affordable housing, the density of the project would negatively impact the quality of life and home values of neighboring homeowners.

Collins was unsure if those concerns played a role in the Board of Housing’s grant selection process.

Local business leaders and city officials both have identified a serious shortage in affordable rentals for Whitefish’s workforce. Some employers say hiring for service jobs has become nearly impossible due to a lack of rentals and rent prices.

Meg O’Leary, Director of the Montana Department of Commerce, notes that the need for affordable housing across the state is growing more urgent every year.

“I hear about the need for affordable housing in all 56 counties,” she said. “This problem is adversely affecting the ability of businesses to grow and hire more employees.”

This year’s total request for Housing Credits in Montana topped $87.5 million.