At a recent work session, Whitefish City Council heard from the Whitefish Housing Authority and the city’s housing planner, Luke Sponable, about potential changes to the Depot Park Townhomes project.

The project, located on the corner of Railway Street and Columbia Avenue, comprises 22 two-bedroom townhouse units that were originally 100% deed-restricted for affordable community housing. The original plan was to make the homes available to households earning 80% to 150% area median income. 

Based on 2022 U.S. Department of Housing and Urban Development numbers for the Flathead Valley, 80% area median income is $63,000 for a family of four, and 150% is $119,000. For a two-person household, 80% is $50,800 and 150% is $95,400.

In June 2020, Council resolved to donate the property, formerly known as the snow lot, to the housing authority. Parties also signed a development agreement, which said the city would pay over $900,000 to the housing authority. A year later, that sum was augmented to $2 million.

The housing authority is now asking Council to consider increasing the range of household area median incomes served by the project. They project a shortage of over $3 million for the original proposal due to rising interest rates and building costs.

The housing authority offered three options. The first keeps funding as is but changes the area median income range served to 80% to 215% with an average of no more than 135% from the original 80% to 150% with an average of 100%.

The second option is to sell the land to the Northwest Montana Community Land Trust to be permanently held in that trust.

The third option is to stay the course, keep the average area median income at 100%, and expect a shortage of over $3 million.

“We’re not giving anybody any direction tonight,” Deputy Mayor Frank Sweeney said. “This is, in my view, a sea change of what we told this community we could provide and what the housing authority told us they could provide.”

City Manager Dana Smith said when the city turned over the land, it was worth about $500,000. According to the 2023 tax appraisal, it was worth $1.9 million.

The housing authority noted that construction costs and real estate values have seen sharp increases since the agreement with the city was made in 2020. They said median home prices in Whitefish have doubled in the last three years while the valuation of townhome projects has tripled.

Another argument made by the housing authority for the change is that the 2022 Whitefish Community Housing Roadmap states that home ownership options should focus on the 70% to 250% AMI range.

Sweeney said the mayor and the city manager would need to be consulted first before city officials offered any feedback on the request.