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Habitat Flathead’s North Kalispell subdivision proposal up for public hearing

JACK UNDERHILL | Hagadone News Network | UPDATED 2 weeks, 5 days AGO
by JACK UNDERHILL
KALISPELL GOVERNMENT, HOUSING AND TRANSPORTATION REPORTER Jack Underhill covers Kalispell city government, housing and transportation for the Daily Inter Lake. His reporting focuses on how local policy decisions affect residents and the rapidly growing Flathead Valley. Underhill has reported on housing challenges, infrastructure issues and regional service providers across Montana. His work also includes accountability reporting on complex community issues and public institutions. Originally from Massachusetts, Underhill graduated from the University of Massachusetts, Amherst with a degree in Journalism before joining the Inter Lake. In his free time, Underhill enjoys mountain biking around the valley, skiing up on Big Mountain or exploring Glacier National Park. IMPACT: Jack’s work helps residents understand how growth, housing and infrastructure decisions affect the future of their community. | July 14, 2026 12:00 AM

The public on Tuesday can weigh in on Habitat for Humanity of Flathead Valley’s proposed subdivision in North Kalispell, a mixed-income development that would bring nearly 100 new homes to the area.  

Residents also can review a pair of proposals from Montana-based affordable housing developer Mach Development, one of which includes building a low-income apartment building on Kalispell’s east side. 

Kalispell Planning Commission will host the public hearings at 6 p.m., July 14 in City Hall, 201 First Ave. E. 

Habitat Flathead is requesting annexation, initial zoning of R-3 (residential) and planned unit development approval to build 95 residential units on 21.32 acres. The property is located northwest of Northland Drive, east of the U.S. 93 Bypass and south of Four Mile Drive.  

While Habitat Flathead owns the site, just 32 of the cottage-style houses will be built by the nonprofit. The rest are being built by Iron Star Construction, Westcraft Homes and Kalispell Student Built Homes. 

Home prices ranging from $350,000 to $800,000 are intended to support a mixed income neighborhood. The entire community will be covenant restricted to long-term ownership only and managed by a homeowner’s association. 

Habitat Flathead is requesting deviations from city subdivision and zoning code such as allowing for smaller lot sizes and limiting road access to the south end of the property. A few neighbors expressed concern over the increased traffic that will be dumped onto Northland Drive and Northridge Way upon full buildout.  

Kalispell’s Planning staff raised concerns about the soil conditions on the site owing to fill left behind by the Montana Department of Transportation while building the bypass. Because of the variable depth and quality of soils throughout the site, individual homes may require site-specific foundation preparation, and a geotechnical engineer was recommended to monitor construction. 

Habitat Flathead bought the parcel from the Department of Transportation last year at 10% under appraisal. 

MACH DEVELOPMENT is looking to build low-income rental apartments at 40 Appleway Drive, just east of U.S. 93 and south of U.S. 2.  

The three-story, 24-unit 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 last year.  

Three units in what the developers are calling Outpost at Kalispell will be set aside for veterans, victims of domestic violence, or youth aging out of foster care.  

Community Action Partnership of Northwest Montana is partnering with the developers to ensure rents remain affordable. The nonprofit serves low-income households across the Flathead Valley.  

Kalispell City Council last month granted Mach Development a $113,700 loan through the West Side/Core Area tax increment financing program to support the project. The program is intended to address blight and promote economic development in those areas.  

Because the development is exempt from property taxes, the developer did not request a grant.  

The Montana Board of Housing awarded $8.3 million in funding through the Montana Housing Tax Credit Program to support construction. The entire project is estimated at $8.75 million.  

A PUBLIC hearing will be held on another proposal from Mach Development to acquire and rehabilitate an existing federally assisted senior housing community.  

The development, known as Elms Apartments, includes 60 homes located at 330 Third Ave. W. Rents are restricted for senior households earning no more than 60% of the area median income, and 41 of the units receive rental assistance under an existing federal housing contract.  

Reporter Jack Underhill can be reached at 406-758-4407 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.

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