Kalispell will see a new workforce housing complex along the Parkline Trail after the project was selected for funding through the Montana Housing Tax Credit Program.

Developers Mach LLC and TE Miller were awarded roughly $8.3 million to go toward construction of the named Outpost at Kalispell, located at 40 Apple Way.  

The three-story apartment building will boast a mix of one- and two-bedroom rent-restricted apartments for households making anywhere below 50% to 60% of area median income. That means one-person households making anywhere under $33,800 to $40,560 a year and two-person households making under $38,600 to $46,320, according to data provided by Mach.  

Rent will be approximately 25% to 30% less than the market rate but designed and built to meet market-rate standards, said Matt Belles of Mach.  

For people making below 50% area median income, nine one-bedroom units will cost around $905 a month at 704 square feet. Eight two-bedroom units will cost $1,086 at 955 square feet.  

For those making below 60% area median income, three one-bedroom units are expected to cost $1,086 a month at 704 square feet. Four two-bedroom units will cost around $1,303 at 955 square feet.  

Three units will be set aside for veterans, victims of domestic violence, or youth aging out of foster care. 

The units will include electric kitchen appliances, in-unit washer dryers and balconies or patios. Grilling stations, a playground and indoor gathering space are also planned. 

The entire project costs $8.75 million. The developers plan to break ground in April and finish June 2027. 

The Community Action Partnership of Northwest Montana is partnering with the developers to ensure rents remain affordable.  

THE OUTPOST at Kalispell is one of five projects awarded funds across the state. The others were located in Miles City, Missoula, Billings and Livingston. The Montana Board of Housing dolls out the funds through either the 4% or 9% housing tax credit program meant to support the construction or preservation of affordable housing. 

Kalispell hasn’t seen many housing tax credit projects in the last five years, according to Grant Schnell of Mach. 

Mach LLC also has two more housing projects planned for Kalispell that will apply for funding through the 4% housing tax credit program, which is typically less competitive. 

“I live here in Flathead County, so I have a soft spot for Kalispell. But as the state’s grown and expanded, construction costs have increased, rents have increased, home prices have increased. It’s just had a direct impact and it’s making people move out of Kalispell unfortunately,” Schnell said.  

Montana was named the country’s least affordable state in 2024 by the National Association of Realtors. As of spring 2025, Kalispell’s rental vacancy rate sat at 1.1%, indicating a constrained supply, according to a housing report released by the city in May.  

Kalispell is expected to grow 63% by 2045, prompting the need for 8,800 to 10,000 new housing units by then, according to the report.  

Reporter Jack Underhill can be reached at 758-4407 and [email protected].