Pocatello City Council advances affordable housing project aiming for six rental units

During the Pocatello City Council Work Session on June 12, 2025, city officials discussed a significant proposal aimed at addressing the growing need for affordable housing in the community. The plan involves the demolition of an existing structure to make way for new residential units, with the potential to create up to six affordable housing units on the site.

Jim, the city’s long-range planner, presented initial concept designs that include three single-family units facing Washington Street, along with an accessory dwelling unit above a garage accessible via an alley. This development is part of a broader initiative to increase the availability of affordable housing in Pocatello, which has become a pressing issue for residents.

The council members engaged in a detailed discussion about the project’s funding and management. The proposed funding comes from the U.S. Department of Housing and Urban Development (HUD) and involves a complex agreement that includes a promissory note and a deed of trust. While these documents may suggest a loan, city officials clarified that the intent is to forgive the note annually, provided the units remain compliant with affordability standards over a 30-year period.

Ownership of the new units would rest with the city, which would act as the landlord. However, to avoid the complexities of property management, the city plans to partner with local agencies, such as the Housing Authority and NeighborWorks, to manage the properties. This collaboration aims to ensure compliance with HUD guidelines while addressing the community's housing needs.

Council members expressed their support for the project, emphasizing the importance of maintaining design sensitivity to the existing neighborhood. Concerns were raised about the historic value of the current structure, prompting discussions about potentially preserving elements of its architecture in the new design.

The council is moving forward with plans to finalize the application for funding, aiming for a vote at the upcoming July 3 council meeting. This project represents a proactive step by the city to tackle the affordable housing crisis while considering the community's historical and aesthetic values. As the council prepares to take action, the focus remains on balancing development needs with the preservation of Pocatello's unique character.