HomeMy WebLinkAboutAction Item 3 - HRDC Hoover WayHRDC seeks financial support from the City of Bozeman to provide permanent, deeply affordable
housing for homeownership utilizing the Community Land Trust model. Hoover Way Townhomes,
located at the corner of Hoover Way and Sartain Street, will provide 24 units, priced to be affordable to
households earning 70% of the Area Median Income. The homes will be deed restricted and held in a
Community Land Trust (CLT) to ensure that the homes are affordable in perpetuity. The CLT model uses
a 99-year, renewable ground lease that limits resale prices – this model allows for a fair return to buyers
to move into non-restricted housing in the community, while ensuring that the community’s investment
in affordable housing endures beyond a single household. HRDC has worked closely with the nationally-
recognized Community Land Trust authority, Grounded Solutions to develop a pricing and resale model
that will serve our community’s workforce for years to come. Our work with Grounded Solutions helped
clarify how important it is to get the initial pricing and resale right; to do so for Hoover Way will require
deep subsidies. HRDC is committed to keeping Hoover Way affordable in perpetuity, and will provide
NSP funds to meet a portion of the needed subsidy. We ask the City to assist in this effort as well, by
committing $20,000 per unit. The City’s investment in this development will ensure that affordable
housing endures in our community long after this assistance.
HRDC acquired the property for Hoover Way townhomes through Neighborhood Stabilization Program
(NSP) revenue generated from the development of West Edge Condominiums. NSP regulations dictate
that the only property that can be purchased using NSP funds must be vacant or foreclosed. Clearly,
Bozeman’s recovery from the housing recession left few large parcels in bank hands, and it took a
significant amount of time to find a qualifying parcel. However; the parcel has some development
constraints. After attempting to do a traditional development application with minor variances, HRDC
and City staff concluded that a Planned Unit Development would allow HRDC to maximize the affordable
housing impact for the community while mitigating the risk associated with upcoming UDC
amendments, particularly those pertaining to garage width in townhomes. To achieve our shared
affordable housing goals, HRDC requests $58,000 to assist with the additional costs associated with the
PUD application.
HRDC has an established history of developing and managing quality affordable housing in our
community. We hope that the City will support this newest effort to provide a source of permanent,
deeply affordable housing for our citizens.