A proposal to renovate the Little Jon Apartments in Bigfork won approval from the Montana Board of Housing on Tuesday, with the prospective new owners of the housing complex receiving $2.6 million worth of federal tax credits.

The Bigfork housing complex was the only area project awarded tax credits during an extremely competitive application process, according to Montana Board of Housing Communications Manager Penny Cope. This year’s total request for housing credits from communities across Montana was $87.5 million, while only $27 million in federal tax credits was available to build or rehabilitate rental housing for low- to moderate-income residents.

The Courtyard Apartments in Kalispell narrowly missed making the cut, Cope said, but did get a nod from the board to be a contingent project.

“If any of these developers [for projects awarded tax credits] can’t pull the deal together, the Courtyard Apartments are in line to receive the credits,” Cope said. “It was a heartbreaker, but they’re in a pretty good spot.”

Community Action Partnership of Northwest Montana was vying for tax credits to undertake a major renovation of the 32-unit Courtyard Apartments on Airport Road. The project was valued at $4.7 million in total development costs and Community Action had requested $3.5 million in tax credits.

Timber Meadows, a fixed-income senior apartment complex planned by Immanuel Lutheran Communities, also lost its bid for tax credits. That project is estimated to cost $7.5 million. Jason Cronk, chief executive officer of Immanuel Lutheran, said in September that if Timber Meadows didn’t get the tax credits, “we’ll continue applying until we do.”

The Whitefish Housing Authority likewise lost out in the tax-credit competition.

It has been working for some time with The Commonwealth Companies of Portland to build a 36-unit affordable housing complex in Whitefish. The president of Commonwealth has a home in Whitefish and has wanted to put together a project in the community, Whitefish Housing Authority Executive Director Lori Collins said.

The authority found property along U.S. 93 just north of Les Schwab Tires in Whitefish for its proposed two-phase Riverview Meadows project, but the land purchase was contingent on getting the tax credits, Collins said. The application was for $6.7 million in tax credits over 10 years.

Buying land in Whitefish is a challenge, she said.

“We’re hoping for time to put together private funds” to be able to buy the land, Collins said. “The land is perfectly zoned. We’re hoping for a miracle of miracles.”

Renovation of the Little Jon Apartments in Bigfork is scheduled to begin this spring. GMD Development, based in Seattle, and Missoula-based Homeword, a nonprofit organization, applied in partnership for the tax credits to buy, renovate and preserve the 32-unit apartment complex that currently is owned by Bigfork Associates Limited Partnership.

About a year ago GMD and Homeword began exploring the possibility of buying and fixing up the apartment complex. The apartments, located near Bigfork High School, were built in 1994.

Among the planned improvements at Little Jon Apartments are the addition of a children’s play area, an outdoor community area and a community garden. Energy-efficient appliances would be installed, along with water-flow saving devices and other upgrades.

Part of the renovation to the Little Jon Apartments will provide classroom space within the apartment complex for the ACES after-school program.

Meg O’Leary, director of the Montana Department of Commerce that oversees housing programs, said the 22 applications for tax credits is a strong indicator of an immense need for affordable rental housing.

Seniors on fixed incomes, single-parent families, veterans, housing on reservations, individuals with physical or mental disabilities and working families are among the population sectors that don’t earn enough to pay for rent.

 “The need for affordable housing is growing more urgent every year. Many Montana families and seniors are desperate for affordable housing, just a place to call home,” O’Leary said in a press release. “This problem is adversely affecting the ability of businesses to grow and hire more employees.”

 Montana’s economy will benefit this year from the $30 million to $40 million of construction investment due to the housing credits. It’s estimated the impact from construction investment initiated by this allocation of tax credits will include approximately 187 construction jobs in Montana. An additional 294 jobs will be supported through construction material and service demand, according to the Montana Department of Commerce.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.