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$4 million grant to buy foreclosed homes

NANCY KIMBALL | Hagadone News Network | UPDATED 15 years AGO
by NANCY KIMBALL
| October 21, 2009 2:00 AM

The city of Kalispell and Community Action Partnership of Northwest Montana can begin plowing new ground for a community land trust.

Over the years, it is expected to provide affordable work-force housing across the city of Kalispell.

A vote by the City Council Monday night gave spending authority for up to $4 million in grant money from the Neighborhood Stabilization Program. It's a Montana Department of Commerce initiative to attack the problem of housing that's too expensive for a community's working citizens.

Two weeks ago the council accepted the grant, promising to obligate the money by next fall as it buys bank-owned houses that are in foreclosure in Kalispell.

Factoring in program administration expenses and what it should cost to buy the homes, Community Action Partnership figures it can buy 22 properties.

The nonprofit, formerly called Northwest Montana Human Resources, is working with the city's Office of Community and Economic Development to buy the homes and set up the community land trust.

As the land itself is purchased and held in perpetuity by the community trust, it makes the cost of the homes affordable for families who put their money only into the building sitting on that ground. As a home is sold in the future, the same arrangement is passed along to the next family in need of affordable housing.

"This is a real opportunity we have to provide affordable housing to a few members of the community and set up a land trust, and for the work force to have an opportunity for housing," council member Jim Atkinson said just before the council's unanimous vote of approval. "A grant to begin placing homes in [the land trust] is a very cheap way to do it."

Council members also:

n Set a Nov. 2 hearing for public comments on proposed changes to the city's engineering standards for design and construction. In general, they put best management practices in place for water protection and site conservation. Local professionals in the industry had a hand in developing the new standards.

n Passed the first reading of a parking ordinance changing the three parking spaces in front of the downtown post office to 30-minute spots. They are along the southbound lane of First Avenue West between Second and Third Streets. They now are two-hour spots.

n Approved the final plat of Ken Madsen's three-lot subdivision on a half-acre residential lot on Seventh Avenue West south of 11th Street West. Madsen has met the 13 conditions required in the preliminary plat.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com

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