Whitefish council updates Legacy Homes fee‑in‑lieu to $378,089

The Whitefish City Council unanimously adopted Resolution 25‑34 on Oct. 20, updating the Legacy Homes fee‑in‑lieu calculation used when developers pay instead of building on‑site affordable units.

Planning staff said the three‑year average home price used in the formula produced a new fee of $378,089. Wendy told the council the previous three‑year average used for calculations was about $1,200,000 for an average house and that the updated fee reflects the latest housing‑market data.

Council debate focused on the program’s original intent. Several councilors reiterated that the Legacy Homes program was designed to encourage on‑site affordable units integrated within developments rather than routine cash payments. Councilor Ben said the city has used fee revenues to support more than 30 subsidized households but cautioned that cash‑in‑lieu should be the exception, not the rule. “The intention of all of this work ... is for the developers to build the housing in the project,” he said.

Despite those concerns, councilors approved the updated fee and adopted the resolution unanimously. The new fee amount will be applied per the city’s administrative procedures for Legacy Homes and used in future PUD and development negotiations where the code allows a payment alternative.

Adoption of the resolution followed a separate council vote earlier in the meeting to deny Ordinance 25‑13 (Taylor Hill PUD), which included a developer offer to pay a fee‑in‑lieu for affordable housing. Councilors said the broader policy discussion around how and when to accept cash‑in‑lieu will continue as part of future code and program reviews.