Affordable-housing advocates want to have a business plan ready within three months to create a community land trust that would boost affordable housing in the city.

That's because March 31 is the deadline to apply for federal housing money.

In a community land trust, a nonprofit organization sells houses on top of the land but keeps ownership of the land.

The idea is to remove land costs from the price of a new home. Each sale also has contractual obligations that if a house is resold, the price must remain within specific affordable limits.

City and private-sector representatives briefed the Kalispell City Council Monday on local community land trust efforts.

So far, two community land trust efforts are under way in Flathead County.

One is led by the Whitefish House Authority.

Another is the Flathead Valley Community Land Trust, which is being formed to provide at least several dozen affordable houses in the proposed 207-acre, 535-home Siderius Commons project, which is expected to be annexed soon into southern Kalispell.

Some Kalispell housing interests and the city's Community Development Department want to set up a community land trust elsewhere in Kalispell.

The Flathead Valley Community Land Trust has volunteered to be the umbrella nonprofit organization for efforts by the city and others to create community land trusts.

Kellie Danielson, the city's community development director, told the council that the U.S. Department of Housing and Urban Development will receive applications through March 31 for parts of $19.5 million that the federal government has earmarked for Montana this year in housing aid.

Danielson speculated that Kalispell could apply for $1.5 million.

But she added that this is a soft figure, pending the completion of the business plan required to apply for the money.

Unresolved questions are whether the Kalispell effort should buy a big chunk of land or individual lots scattered around the city, how much it should link with the Siderius Commons venture, and whether it should buy vacant land or foreclosed houses.

Northwestern Montana Human Resources - which reorganized and renamed itself the Community Action Partnership as of Jan. 1 - has taken the lead in the private sector's share of this city-private venture.

Reporter John Stang may be reached at 758-4429 or by e-mail at [email protected]