The Kalispell City Council will vote Monday on whether to apply for federal money and team up with a local nonprofit organization to tackle an affordable housing project.

Council members appeared to support the idea at a Monday workshop session.

The money would come from the federal Neighborhood Stabilization Program, which allocated $19.6 million to Montana to help buy houses.

At least 25 percent of that money has go to families that make 50 percent or less of the median state income.

A Montana family of four's median income is $55,700.

That means that $4.9 million - if not more - must go to families at or below the 50 percent median income mark. For a family of four, that translates to an annual income of $27,850.

The rest of the federal allocation to Montana can go to families earning up to 120 percent of the median income - which would be $66,840 for a Montana family of four.

Kalispell's city staff is thinking about applying for $4 million of the $19.6 million, since Flathead County tallied 35 foreclosures in the first three months of 2009 - the highest rate in the state, said Katharine Thompson, the city's community development manager.

Applying for $4 million does not mean that Kalispell would receive that entire amount, she said.

The council also will vote on whether to team up with Community Action Partnership.

Community Action Partnership has the contacts and expertise to quickly identify and obtain foreclosed homes as part of a community land trust, Thompson said.

Part of the federal program requires that the money be used buy foreclosed homes, which have to be bought for at least 5 percent less than their appraised values.

Consequently, banks and mortgage holders will have to be recruited to help this program, Thompson said.

If the city and the Community Action Partnership team up, the proposed agreement calls for Kalispell to provide $18,000 while the nonprofit group would provide $24,000.

Under this proposal, the Community Action Partnership would try to set up a community land trust with city help.

For more on this story, read Thursday's Daily Inter Lake.