Apartment project highlights fee in lieu versus affordable housing units

The Whitefish Community Development Board voted to recommend approval for a conditional use permit for a 21-unit multi-family development on Iowa Avenue.

The applicants, JLA Whitefish, LLC., are proposing the building on two lots totaling about half an acre at 7 and 23 Iowa Avenue. The property is bordered by Edgewood Place to the south and Iowa Avenue to the west. 

The property is currently zoned WR-4, higher density residential.

The multi-family building would include three one-bedroom units, six two-bedroom units and 12 studio units, according to Whitefish Housing Coordinator Luke Sponable.

Sponable said the applicants qualify for Legacy Homes Program incentives because they are volunteering to provide affordable housing. They have chosen to utilize the increased density bonus, the building height bonus and the reduced parking allowance.

The applicants must either deed restrict 10% of the units, or 2.1 units, for affordability or pay a fee in lieu of providing the units.

“The applicants have indicated that they intend to provide that payment per the housing mitigation plan which was submitted,” Sponable said. “The total dollar amount at this time is $618,132.90.”

He added that the fee in lieu is important since the city has allocated most of its affordable housing fund for the next two years.

Board members Ben Davis and John Middleton expressed concern about the cash in lieu of affordable units. Davis asked Sponable why the housing mitigation plan was allowing cash in lieu, rather than discouraging it.

“In terms of the city, I think we would like the units very much … it’s not necessarily require one way or the other because this program was written, obviously, to accept both,” Sponable said.

The representative for the applicants, Matt Lawrence with Montana Creative, said the applicants’ original intent was to deed the units but now they are leaning toward paying the cash in lieu.

“I don’t know if they’ve made a final decision,” Lawrence said. “They’re just trying to see if they can do this density on this property and … then make final decisions from there.”

Davis proposed an amendment that would require the applicant to deed restrict two units for affordability plus pay the fractional cash in lieu. That amendment failed to pass, with Davis the sole yes vote.

According to staff reports, the site is generally flat and the project fits into the neighborhood which is predominantly a mix of high- and low-density residential with some commercial properties closer to Wisconsin Avenue. It is estimated the project will increase traffic by 142 vehicle trips per day.

The initial motion to recommend approval passed unanimously. The item is scheduled to be heard by the Whitefish City Council on May 6.