Council backs Community Land Trust resale formula change and approves $50,000 to buy a Trailview home

The Whitefish City Council unanimously approved a staff-supported change July 20 to the resale formula used by the Northwest Montana Community Land Trust going forward and also approved a $50,000 contribution from the city's affordable housing fund to help the trust buy a Trailview home.

Kim, representing the land trust, said the trust proposes using the same resale formula used elsewhere in the Flathead Valley: the homeowner may sell for 100% of the purchase price plus 25% of any increase in market value accrued during ownership. Kim said this approach is more sustainable than the current flat annual 3% cap that has increasingly diverged from market trends.

Councilors questioned whether the 100% + 25% approach could lead to larger payouts during hyperinflationary periods and discussed whether a lesser-of formula would be appropriate, but staff and multiple councilors supported adopting the regional standard for future ground leases (not retroactive) to align programs across jurisdictions.

Kim said the land trust has an option to purchase 506 Trailview for $443,525 and requested $50,000 from the city's affordable housing fund to lower the eventual purchase price for a qualifying buyer; staff confirmed the available balance in the affordable housing fund and explained subsequent resort-tax allocations will be used for future needs. Councilor Rebecca moved to approve the $50,000 allocation; the motion passed unanimously.

Staff said the $50,000 is used to buy the land under the house and that the land remains in the land trust in perpetuity, permanently reducing the sales price for future buyers under the ground-lease model.