West Yellowstone agrees to $275,000 loan to help residents buy Wagon Wheel Apartments

The West Yellowstone Town Council voted Wednesday to commit $275,000 from the town housing fund as a loan to a NeighborWorks Montana‑led effort to convert the 18‑unit Wagon Wheel Apartments into a resident‑owned cooperative.

Town staff and NeighborWorks presented the proposal at an earlier work session. NeighborWorks executive director Kaya Peterson described a model in which residents form a mutual benefit corporation to own the buildings while HRDC’s community land trust holds the land. Peterson said the project’s financing package is being assembled from multiple sources, including an expected loan program from the Montana Board of Investments, about $500,000 from NeighborWorks’ Gallatin Housing Impact Fund and grants from philanthropic partners.

Why it matters: Council members said the project would preserve long‑term affordable housing for local workers in a town that has struggled to house year‑round employees. Supporters told the council the plan targets existing tenants and includes technical assistance to help residents manage the property and refinance in about 10 years.

Details of the ask: Town staff summarized the formal request as a $275,000 loan from the town’s housing fund (resort‑tax revenues) at 2% interest, amortized over 40 years with a 10‑year balloon payment. NeighborWorks said it can structure servicing and participation arrangements so the town would not need to directly administer loan servicing if the council prefers a less hands‑on role.

Community and partner support: The West Yellowstone Foundation pledged $25,000 and HRDC representatives said they will hold the land and include a ban on short‑term rentals in the ground lease if the council wishes. Several residents and workers spoke in support, citing housing shortages for teachers, firefighters and seasonal employees.

Council concerns and safeguards: Some council members said they wanted a clearer written legal opinion and more documentation before finalizing terms, and asked how defaults would be managed. NeighborWorks described a typical inter‑creditor structure and said an inter‑creditor agreement would tie the town’s loan to other lenders so NeighborWorks or participating lenders would lead default management, reducing the town’s operational exposure. Council member Lisa (surname not provided in the meeting record) said she would abstain from the final vote because she wanted more written detail; the record shows four council votes in favor and one abstention.

Votes at a glance: the council approved the loan commitment (motion to commit $275,000 at 2% interest, 40‑year amortization, 10‑year balloon) by a vote of 4 in favor, 0 opposed, 1 abstention. The motion was seconded by Council member Travis.

What happens next: Town staff and NeighborWorks will finalize loan documents and financing commitments; the parties indicated a need to complete contingencies and finalize ground‑lease language before closing. NeighborWorks said it expects to close the purchase by late winter and has a 120‑day purchase period under the current contract.

Context and caveats: Peterson described the Montana Board of Investments loan program and other state resources under rulemaking as primary financing sources; the state fund referenced in the meeting (new legislation creating a housing fund) is not yet available for allocation pending rulemaking. The transcript uses both “Given Avenue” and “Gibbon Avenue” to refer to the property; the council and NeighborWorks repeatedly referred to the Wagon Wheel Apartments as the project address during discussion. The council resolution authorizing the loan, final documents and any conditions (for example, an explicit short‑term rental prohibition) will determine enforceable limits and responsibilities.