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Kalispell council weighs dedicated housing staff, development partnerships and housing study funding

3207534 · May 7, 2025
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Summary

Council members discussed creating or supporting outside partnerships to deliver affordable housing, the possibility of a staff position to coordinate housing programs and plans to fund and complete a housing study and implementation work.

Kalispell City Council members discussed options Tuesday for advancing affordable housing, including hiring or allocating staff time for implementation, partnering with nonprofits and developers, and moving forward with a two-part housing study and implementation plan.

Council discussion focused on two linked tasks: (1) completing an updated housing study that identifies what types and quantities of housing the city needs and (2) creating or enabling programs to produce those units. Several council members and staff said a dedicated staff person — or a partnership with a nonprofit or housing authority — could reduce the city’s administrative burden on tax-credit applications, development packaging and long-term property management.

Speakers noted trade-offs. If the city becomes an active developer or property manager, it would require more staff time and new administrative capacity. Several council members preferred a model that partners with experienced nonprofit or for-profit developers so the city can provide land, incentives or limited gap funding while leaving development and property management with specialists.

Council members asked staff to return with options and clarified that any proposal should include an implementation plan that covers zoning, financing (including tax-credit applications), and potential funding sources such as grants, impact fees or tax-increment financing (TIF). Staff said they would pursue a two-part approach: a housing-stock and needs assessment followed by recommended tools and programs — zoning changes, incentives or partnership models — for producing housing at the types and scale identified by the study.

The council also discussed timing and risk: one speaker said staff expects to see tax-credit and funding opportunities in June and urged proactive outreach to developers. Another recommended engaging the city’s housing and homeless advisory groups and the housing authority to evaluate trade-offs and options.

Council direction: staff to assemble background materials, bring the study scope and implementation options back to council for a future meeting, and to consult with the housing advisory group and potential nonprofit partners. No final policy or funding decision was approved at this meeting.

Next steps: staff will prepare a scope and cost estimate for a housing study and return with recommended implementation options for council review.