More affordable housing coming to Libby

While some areas in Montana continue to grapple with the issue of having enough affordable housing, Libby has seen some light at the end of the tunnel.

According to a press release, Cabinet Affordable Housing was awarded federal tax credits for low-income housing at a Montana Board of Housing meeting on Oct. 17.

A $6.5 million tax credit project was awarded to Community Action Partnership of Northwest Montana in October for housing in Libby. It was part of nearly $32 million in tax credits that will also benefit housing projects in Butte, Great Falls, Crow Agency and Missoula.

According to the state Department of Commerce, federal housing tax credits allow developers to borrow less construction money and pass the savings along through lower rent.

In addition, Montana Board of Housing Chair Sheila Rice said, “Enacting a state affordable housing tax credit, as recommended in the Governor’s Housing Task Force report this month, would present an incredible opportunity for the state to support the development of more affordable, attainable housing in the future.”

CAPNM's Cassidy Kipp, who pitched the idea to Libby City Council, said there is a great deal of optimism for the new housing.

"We're very excited," Kipp said. "We really appreciate the Montana Board of Housing for hearing the call of the need and answering it."

The plan is for Cabinet Affordable Housing to build a 24-unit housing project targeting households with limited income. Kipp said they will be located on a 4.1 acre lot on Commerce Way, across from the Flathead Valley Community College.

There will be 24 units in 12 duplex buildings with monthly rent ranging from $634 to $920. When finished, the development would boast 10 two-bedroom and 14 one-bedroom units.

The project is intended to create multifamily units, with income targeting for households below 50% and 60% of the area median income.

According to the release, it is the first time tax credits have been awarded for family projects in the Libby area and the only prior tax credit allocation in Libby was awarded to an elderly project in 1999.

Kristin Smith, a member of the Libby City Council and one who advocated for the project, was pleased to hear of the news.

“I think it’s a win for Libby and our hard-working employees,” Smith said. “It should provide opportunities and upward mobility in housing.

“As an employer who has employed, historically, a number of single women with children, I know there is a need,” Smith said. “I’m very grateful for the partnership. I can’t wait to see it built.”

Proponents say the new project will satisfy a growing community need while offering rents that are well below market rate in the area (20% below the 2-bedroom market rate and 25% below the one-bedroom market rate).

Construction on the project is slated to being in spring 2023, with an anticipated build-time for just under one year.

Kipp said people have already called to get on a wait list, but she said that can't begin until the units are six months from completion.

"Ideally, work will begin in March 2023 and be done by the end of next year, but we'll need all the stars to align for that to happen," Kipp said. "We're dependent on the supply chain, weather and availability of the workforce,"

The project is being developed by American Covenant Senior Housing Foundation and Community Action Partnership of Northwest Montana.

In addition, Community Action Partnership of Northwest Montana will have on-site offices to serve the public, as well as tenants of Cabinet Affordable.

Kipp told city councilors at a meeting in September 2021 that the development would feature an office and community room where her group can connect both tenants and area residents with its services, including homebuyer education and financial skill building courses.

“We’re building good taxpayers. We’re getting skills, skills for long-term success and also assisting for things such as the burden for heating expenses during the winter months,” she said. “It’s really going to be a place where we serve the community in a real accessible manner.”

Three out of the four affordable housing developments in the area are geared toward the elderly. There is a need for housing for younger families, like single parents and children, she said.

“What we see is there is absolutely a shortage of safe and affordable homes,” Kipp said. “We see renters terribly cost burdened with what they’re paying.”

About 30 percent of residents in the Libby area spend 50 percent or more of their income on housing and utility costs, she said.

Kipp said U.S. Department of Housing and Urban Development rules dictate that every bedroom hold two people.

“It’s not uncommon to see households in single rooms and spaces that are pretty small,” she said. “What we envision here is a single mom and a child, a single parent and a child.”

Gerald Fritts of American Covenant Senior Housing Foundation, which is cooperating with Community Action Plan on the project, said that proposed development did not prohibit senior tenants.

“We only have two types of products we can put forward to the Montana Board of Housing: It’s either going to be a senior facility or a family facility,” he said.

“Even though the need is for one and two bedroom units … it doesn’t preclude [seniors] either. It’s a much broader definition for the community.”

Kipp said a third party, Idaho-based Infinity Management, would manage the application process, the same company already in charge of Treasure Manor.