City advances plan to seek IHFA housing trust funds for 429 Washington Ave. redevelopment

Planning and grants staff told the Pocatello City Council work session they will pursue a Housing Trust Fund opportunity through the Idaho Housing and Finance Association to build affordable rental housing on the city-owned property at 429 Washington Avenue.

Christine Howe, grants manager, and Brett McLean, planning director, said the funds — described during the presentation as “just over a million dollars” available from the state’s Housing Trust Fund — could be used for demolition or site clearance, environmental remediation and construction of housing for households earning 30% of area median income or below. “The funds available through the Housing Trust Fund program are just over a million dollars, and they can be used toward site clearance demolition, developing those engineering or architectural plans for the housing, and then construction of those units on the property,” Howe told the council.

The city acquired the building as part of a larger block associated with the historic Alameda town site. Staff said 429 Washington has been vacant since 2022 and environmental testing identified regulated building materials — including asbestos and lead‑based paint — and interior water and mold damage after a burst pipe. Because of those conditions staff presented demolition and redevelopment as the most feasible option.

A concept plan produced by the city’s long‑range planner sketches three single‑family units facing Washington plus an accessory dwelling unit above a rear garage, a layout that could yield up to six rentable units. Staff and council members, however, said the available $1 million‑plus would most likely cover full construction for fewer units; staff said they are “pretty confident” four units could be delivered with the current allocation and that additional units could be added later as funding allows.

Ownership, compliance and management

Rhiannon (IHFA) explained the funding is administered from federal sources and carries compliance documents that look like a loan and regulatory agreement to enforce 30 years of affordability. “The reason that we’re saying a promissory note is because we do have that long term relationship for 30 years with each other,” she said, adding that IHFA intends to forgive portions of the note each year so long as units remain compliant.

Staff said the city would own the property and would not be on the tax roll while the city holds it. The city would contract property management rather than operate as landlord; staff have reached out to Housing Alliance Community Partnership (the local housing authority) and to other nonprofits such as NeighborWorks or Habitat for Humanity as potential partners. Councilman Romagna noted the housing authority’s experience with project‑based vouchers could help fill units.

Other practical matters

- No local match: staff said the Housing Trust Fund program at this income level does not require a local match.

- CDBG amendment: the application requires amending the city’s Consolidated Plan/CDBG to add the trust‑fund allocation; staff said they already have an amendment in process.

- Historic and neighborhood sensitivity: several councilmembers emphasized design sensitivity and preserving Alameda history. Councilmember Nichols asked staff to prioritize designs that fit the neighborhood; the mayor suggested preserving an architectural element from the old Alameda facility in any redevelopment.

Next steps and timeline

Staff asked for general direction to proceed with the application and said their target is to bring a final application or formal request before the council at the July 3 meeting to meet IHFA deadlines. If awarded, staff said they would complete final environmental review, execute legal documents with IHFA, and begin demolition/site clearance followed by design and construction.

Ending

Council members signaled support to move forward with the application and asked staff to return to a public council meeting with the final package; staff noted construction timing and available contractor capacity could affect the schedule and the final unit count.