Habitat for Humanity asks Sheridan to sponsor $1.6M land-buying grant to expand affordable housing

Christine Dietrich, executive director of Habitat for Humanity, asked the Sheridan City Council at a Jan. 12 study session to sponsor an application to the Wyoming Unmet Housing Needs grant program for $1.6 million to purchase land for new housing.

Dietrich told councilors the Legislature appropriated $5 million for the unmet needs program in 2023 and amended eligibility in 2024 to allow land acquisition. She said municipalities must be the applicant; if awarded, the state program (SLIP) would reimburse the city on an approved, reimbursement basis. "We are requesting that the City of Sheridan sponsor an application on our behalf, for this Unmet Housing Needs fund application in the amount of $1,600,000 for land acquisition," she said.

The grant application is due at the end of the month and awards are expected after SLIP's review in February with final awards assumed at the April 2 SLIP meeting; funds must be encumbered by June 30, 2026. Dietrich said the identified site (Bender Lane / Bender West subdivision) consists of two lots: a front R-3 lot that could hold seven fourplexes and a rear M-1 lot with the potential for a minimum of 30 single-family lots, though higher density is possible.

Councilors asked what obligations the city would assume if it sponsored the application and whether the county could be a partner. Dietrich said only one governmental sponsor is required and Habitat approached Sheridan first because of the city's past partnership. She emphasized the program is reimbursement-based and said, "We wouldn't ask you to expend any funds without having a yes or a no from this grant application." City staff later said the city could front the purchase from cash reserves and reimburse once state funds were received, but that a budget revision would be required to spend the money.

Dietrich and Meredith Sopko, Habitat's director of development, described the broader funding picture: Habitat has a $300,000 match pledged from the Standish Family Fund across three years and said pledges have covered much of the first project. Sopko said Habitat has alternative grant options, including a federal HOME program cycle that reopens in April, which the organization plans to pursue whether or not the SLIP application is successful. Sopko also confirmed Habitat submitted a request to the city for ARPA interest funds of about $56,828.60 to cover a remaining shortfall if all other pledges do not materialize.

Council members asked about the status of Habitat's prior development (referred to in materials as Western/Westin Village). Dietrich said 10 homes are sold, 10 more are under contract (20 of 30), and the remaining units are scheduled for certificate of occupancy by December 2026. She said the team has soils, a traffic study, an expired plat that would be redone, and other documents provided by the landowner to support the application.

Several councilors praised Habitat's work but said they wanted more detail before committing to sponsor the application. Staff told councilors they would continue to work with Habitat to finalize the application materials and the council will consider the sponsorship request in light of the reimbursement requirement and the budget revision that would be needed to front funds if the city chooses to do so.

Next steps: Habitat and city staff will finalize the grant application for the SLIP deadline; SLIP review is expected in February with awards likely in April and funds requiring encumbrance by June 30, 2026.