Council approves $100,000 to land trust to buy down Trail View home, 4–2 vote

The City Council on June 2 approved a $100,000 payment to the Northwest Montana Community Land Trust (NWMT CLT) to support purchase of 405 Trail View Way and to lower the home’s resale baseline so it remains affordable under a community-land-trust ground lease.

Kim Morisaki, executive director of the Northwest Montana Community Land Trust, told the council the organization routinely acquires deed-restricted homes in the Trail View neighborhood to convert them to community-land-trust ownership and keep them permanently affordable. "Our hope is to continue to buy those homes, buy the land underneath those homes, and continue to bring them back down into the $300,000 range," Morisaki said, noting several qualified buyers had declined the house at its current restricted price.

How the transaction works: under the proposed arrangement NWMT CLT will contribute toward the purchase and take ownership of the land under the house; the current owner will be paid the agreed sales amount. The city’s $100,000 contribution reduces the baseline purchase price for the next household; future resales will increase by the deed-restriction formula (the organization said the standard annual adjustment is 3 percent). The land trust said the arrangement creates a permanently affordable home for households at an income level defined in the CLT ground lease.

Council debate: councilors discussed the city’s limited affordable-housing fund balance and whether the city should conserve funds for larger projects such as Alpenglow 2 (a previously-planned multifamily project currently on hold). Several councilors noted the average city contribution to prior Trail View homes has been about $31,000 per unit and argued this request is larger than typical. Supporters said the long-term affordability guarantee and permanent CLT ownership justify the higher one-time contribution; opponents said the fund could cover more units if used for smaller subsidies or through a revolving-loan mechanism.

Vote: the measure passed by a 4–2 roll call. Two councilors voted against the payment; meeting minutes record those no votes were cast by Giuseppe and Ben. The remainder voted in favor.

Funding and accounting: staff said the $100,000 will come from the city’s affordable-housing fund (four-mill levy proceeds and other commitments). After approval staff will coordinate closing with NWMT CLT, which plans to place an income-restricting ground lease on the property.

What happens next: NWMT CLT will complete the purchase and record the CLT ground lease and resale restriction. Staff said the city will continue to pursue larger, multi-unit affordable projects (including seeking grant matches), while also supporting one-off acquisitions where permanent affordability can be achieved.