HomeMy WebLinkAboutF.3.a HCHT Bridger View Funding RequestHEADWATERS COMMUNITY HOUSING TRUST
September 30, 2020
City of Bozeman City Commission
121 North Rouse Avenue
Bozeman MT 59715
Dear City Commissioners:
Thank you for your willingness to consider the request from the Headwaters Community Housing
Trust for $620,000 from the City of Bozeman’s Community Housing Fund to enhance the affordability
of 31 homes to be built and kept permanently affordable in the Bridger View neighborhood.
You are familiar with Bridger View – a diverse, amenity-rich neighborhood with 62 modest, highly
energy-efficient, owner-occupied (1-bedroom, 2-bedroom, and 3-bedroom) homes to be built on the
8-acre site, immediately adjacent to the Story Mill Community Park, having unanimously approved
the preliminary PUD and plat for this development back in May. 26 of the homes will be made
affordable for “missing middle” income households (with incomes between 80%-120% of local median
income) and 5 homes will be made even more affordable to households at 70% of local median
income, meeting the requirements of the City’s Affordable Housing Ordinance. These 31 sorely
needed homes will be made affordable for local working families through a combination of generous
philanthropic investment, value-engineered design and orchestrated community partnerships that
includes the City of Bozeman.
Originally, the role of the Headwaters Community Housing Trust (HCHT) was to preserve the
availability and affordability of these 31 homes, once completed, for generations to come. Through a
series of relatively recent developments, HRDC will transfer the ownership of the land and overall
responsibility for coordinating the Bridger View development to HCHT in November. Consequently,
HCHT – working in partnership with HRDC and other members of the design and development team
– is assuming responsibility for securing the additional funding and project cost offsets needed to
leverage additional funding commitments from our generous philanthropic partner and bridge the
remaining project budget gap. As we describe in our application, funding of $620,000 from the
Community Housing Fund will go a long way towards bridging this gap.
We elected to request $20,000 in housing affordability assistance for each of these 31 income-
targeted households rather than request $10,000 in down payment assistance plus impact fee waiver
for these homes. In exchange for this commitment of grant funding from the City for these homes in
the Bridger View neighborhood, we – the board of directors of the Headwaters Community Housing
Trust, along with Michael Brown, who has contracted with us to provide technical assistance and
executive management services – commit to keep these homes available and affordable, from one
homeowner to the next, for generations to come.
We welcome you to expand your partnership with us in this exciting endeavor that will not only
create 31 critically needed permanently affordable homes for local working families but serve as a
model for neighborhood development that can be replicated, again and again, here in Bozeman
Thank you for your consideration.
Carson Taylor, Barb Cestero, Randy Carpenter, Kelly Olinger, Tracy Menuez, Christine Walker
Headwaters Community Housing Trust Board of Directors
From:webadmin@bozeman.net
To:Tanya Andreasen
Subject:Community Housing Fund Funding Request Application Submission Entry
Date:Wednesday, September 30, 2020 2:26:06 PM
A new entry to a form/survey has been submitted.
Form Name:Community Housing Fund: Funding Request Application
Date & Time:09/30/2020 2:06 PM
Response #:2
Submitter ID:30943
IP address:8.22.11.92
Time to complete:30 min. , 54 sec.
Survey Details
Page 1
Community Housing Fund Scoring Sheet
Community Housing Allocation Process
1.Organization Seeking Funding
Organization Name Headwaters Community Housing Trust
Address 7600 Sypes Canyon Road, Bozeman MT 59715
Contact Name Michael Brown
Contact Phone Number (320) 363-0912
Contact Email Address mbrown@burlingtonassociates.com
2.Project Information
Project Name Bridger View Neighborhood
Location of Project Corner of Bridger Canyon Drive and Story Mill Road – immediately east of the
Story Mill Community Park – in northeast Bozeman
Project Description
The Headwaters Community Housing Trust (HCHT) is requesting a grant of $620,000 from the Community
Housing Fund to ensure an affordable purchase price for 31 homes being built in the Bridger View
neighborhood – homes that will be kept affordable forever by HCHT.
Bridger View is designed and will be built as a diverse, amenity-rich neighborhood with 62 modest, highly
energy-efficient, owner-occupied (1-bedroom, 2-bedroom, and 3-bedroom) homes on the 8-acre site,
immediately adjacent to the Story Mill Community Park. Through a combination of generous philanthropic
investment, value-engineered design and orchestrated community partnerships, the purchase price of 31
of the 62 homes will be reduced to levels to make them affordable to households currently locked out of
homeownership in Bozeman. 26 homes will be priced affordably and targeted to “missing middle”-income
households – working families with incomes between 80% to 120% local median income who earn too
much to qualify for federal and state assistance programs but still cannot afford to purchase and own a
home of their own here in Bozeman. The other five (5) homes will be priced even more affordably – to
households with incomes at 70% of local median income, meeting the requirements of the City’s Affordable
Housing Ordinance. These homes will be scattered throughout and mixed into the neighborhood in all unit
types and home sizes, indistinguishable from their market-rate neighbors and the homes they own.
The Headwaters Community Housing Trust will ensure that these 31 homes will be well-maintained, that
the owners of these homes will have access and resources needed to be successful as homeowners and as
residents of this community, and that these homes will remain affordable from one working homeowner
household to the next, for generations to come. In so doing, the Headwaters Community Housing Trust and
the Bridger View neighborhood – with the support of the City of Bozeman – are on track to have significant
and lasting impact on a critical segment of the affordable housing crisis we face here in this community.
Headwaters Community Housing Trust
In the summer of 2019, a community-wide assessment was conducted, exploring how best to ensure the
availability and affordability of the 31 income-restricted homes at Bridger View. The result of this feasibility
assessment process was a consensus decision to establish a new community land trust organization with
the focus and capacity needed to create and permanently preserve housing availability and affordability in
Bozeman and the surrounding region.
After months of planning, the Headwaters Community Housing Trust was incorporated in June, 2020,
governed by a founding board of directors that includes: Carson Taylor (former Bozeman City
Commissioner and former Mayor), Barb Cestero (Wilderness Society), Randy Carpenter (Future West), Kelly
Olinger (Comma-Q Architecture), Christine Walker (Navigate, LLC), and Tracy Menuez (HRDC). Technical
assistance and executive management assistance are provided by Michael Brown, a national community
land trust expert who lives just north of Bozeman.
The mission of the Headwaters Community Housing Trust (HCHT) is twofold:
1. To preserve permanently the condition, quality and affordability of the 31 income-restricted homes in
the Bridger View community and to ensure that the owners of these homes have access to the services and
resources they need in their efforts to be successful homeowners.
2. To work in partnership with the City of Bozeman and other public sector and private sector partners to
significantly increase the number of homes that are permanently affordable to working households
otherwise unable to afford to own a home of their in Bozeman and throughout the region – and to act as
the stewardship entity to ensure that these homes remain affordable to limited-income households
forever.
HRDC has owned the 8-acre site and carried lead responsibility for the development of the Bridger View
development, since 2019. From the outset, the plan has been for the Bridger View project to transition
from HRDC to a stewardship entity that could focus on preserving the availability and affordability of the
affordably priced homes, thereby leveraging and protecting the philanthropic and community investment in
the neighborhood. This transition was originally anticipated to take place after the homes were built and
each of the affordably priced homes were sold. The presence and developing capacity of HCHT as an
integral member of the development team has created an opportunity both to accelerate and expand the
changeover.
Consequently, recognizing that HCHT's core mission includes providing homes for middle-income earners,
an agreement has been brokered for HCHT to assume ownership of the Bridger View site, along with lead
developer responsibilities, in November 2020. This arrangement allows HRDC to continue to respond to a
range of housing needs, including those at the lowest of the housing continuum, particularly in response to
the COVID-19 pandemic, while allowing the Headwaters Community Housing Trust to work to achieve two
primary strategic goals – to create a replicable neighborhood development model and to build a portfolio
of homes that enhances its prospects for becoming sustainable over the long haul.
It bears noting that the professional and experienced development team and the resources needed will
remain in place, working with HCHT to complete the Bridger View project, with minimal risk.
The “Missing Middle”
As we all know, the need for affordably priced homes in Bozeman is urgent – and growing dramatically. We
need only refer to the recent Community Housing Needs Assessment for detailed and alarming indicators,
including:
* Demand for housing is up in Bozeman. Local jobs have been increasing at 4.4% each year and
unemployment (pre-COVID) is less than 3% – and naturally occurring affordable housing (NOAH) is rapidly
disappearing.
* Local housing production is up, creating nearly 800 homes each year – but, according to the Needs
Assessment, a total of 5,400-6,400 net new units are needed by 2025.
* Housing affordability is now an economic vitality issue as over 70% of Bozeman employers – representing
one-third (1/3) of the jobs in the city – see housing that is affordable to their workforce as one of the very
most critical problems they face. Many Bozeman workers have no option other than to live elsewhere and
commute in daily to work
* And local housing prices continue to spiral. The median sales price of a home in Bozeman has grown by
75% since 2012.
And this dire situation is only getting worse. The Bozeman Daily Chronicle, on September 18, reported that
the median cost of a home within the city limits increased by 21.5% from August 2019 to August 202o –
and then, in August 2o2o, rose from $510,000 to $585,500, an astonishing 1-month increase of 14.8%.
Households with incomes below 120% of area median income are being squeezed – with the consequence
becoming more extreme and desperate as the level of gross household income decreases.
A growing – and overlooked and misunderstood – face of the housing affordability crisis in Bozeman are
working families who earn more than 80% of local median income (the federal definition of “low income”),
which means they cannot qualify for governmental assistance programs (including many of the City of
Bozeman’s affordable housing programs) but nowhere near enough to be able to afford to purchase and
own a home of their own here in Bozeman. This is the “missing middle” – households with incomes
between 80%–120% of local median income.
One-third (1/3) of all households currently living here in Bozeman fall within this income range. And the
simple but harsh reality is:
1. The marketplace – i.e., conventional builders building homes to Bozeman code and building standards
and to local market preferences – cannot, on its own, create housing that is priced affordably for these
working households. And
2. There are literally no public sector housing affordability resources available to create housing that
middle-income households can afford.
For these urgent reasons, missing middle-income households are the focus and priority of the Bridger View
neighborhood.
The Bridger View Neighborhood
Creating housing affordability in Bozeman – especially for owner-occupied homes – is far from easy and,
almost certainly, is likely not to get any easier in the future. Consequently, we cannot keep doing the same
things and expect different results. Crafting effective, long-term solutions to the growing housing
affordability crisis in our community will, without question, require:
1. Considerable investment of resources from the private sector, including foundations, private donors,
employers and development partner concessions, as well as from the public sector, including the City of
Bozeman, Gallatin County, the State of Montana.
2. New approaches to housing development that incorporate best practices of how established
neighborhoods developed over time here in Bozeman, combined with recent innovations in energy-
efficient, sustainable home designs and sensible land use.
3. A stubborn commitment to ensuring homes made affordable through the investment of private sector
and public sector resources are guaranteed to be kept affordable forever. We must acknowledge that
providing affordability assistance as grants or loans to individual households rather than locking these
subsidies into the homes and controlling the resale prices of these subsidized homes – especially in a
rapidly escalating housing market like Bozeman – is simply not an effective or best use of precious and
limited subsidies.
We are pleased and proud that the Bridger View neighborhood incorporates and embodies these three
foundational principles.
The initial affordability of these 31 homes to be built for and marketed and sold to “missing middle”
households in the Bridger View neighborhood will be created through a combination of intentional
innovation and investment, including:
• Smaller 1-, 2- and 3-bedroom homes ranging in size from 750 to 1,500 square feet, built to exceptionally
high energy-efficiency standards will be constructed on smaller lots in an intentionally designed compact
neighborhood, reducing the cost to produce these homes without sacrificing quality, efficiency and
sustainability.
• The neighborhood has been designed and will be developed by a value-driven, partnership-based effort
that is coordinated by a nonprofit, charitable, 501(c)(3) community-based organization that will not be
collecting a developer fee upon completion of the project.
• The fee-simple sale of 31 Bridger View homes at market-rate prices will help subsidize the 31 homes to be
made and kept permanently affordable by the Headwaters Community Housing Trust.
• A major philanthropic partner has committed a substantial level of philanthropic investment to create an
innovative neighborhood development model for future replication, along with the assurance that 31
desperately needed, income-targeted homes will be cared for and kept affordable forever by a focused and
dedicated stewardship entity.
These unparalleled commitments are already in place to create the initial affordability of 26 homes to be
marketed and sold to working families with incomes between 80%-120% of local area median and five
homes to be marketed and sold to working families with incomes below 70% of local AMI. Even so, there
remains a substantial project gap that needs to be filled through a variety of sources and mechanisms,
including funding commitments, in-kind contributions and project cost-offsets. Grant funding of $620,000
from the City of Bozeman’s Community Housing Fund will allow us to leverage additional millions of dollars
of additional grant funding from our major philanthropic partner to close the remaining project
development cost gap.
The Headwaters Community Housing Trust will ensure that all 31 of these Bridger View homes are initially
made affordable, marketed and sold to middle-income households (or lower, in the case of the homes
meeting the City’s lower-income ordinance requirements). HCHT will ensure that these homes will be well-
cared-for and that all taxes and fees are paid – and that homeowner households will have access to
resources and services they may need in their efforts to remain successful as neighbors and as
homeowners. And, each time a HCHT home is resold, the homeowner/seller will be allowed to keep all of
the equity they earn through paying down the principal balance on their home purchase mortgage plus a
percentage-based share of the home’s increase in value during their ownership, while the remainder of the
equity remains with the home to ensure the home remains affordable for the subsequent “missing middle”
(or lower) homebuyer household without requiring additional subsidy resources from public sector or
private sector sources – for generations to come.
In sum, quoting a comment made by a City Commissioner during the meeting on May 18 2020 when the
preliminary PUD for Bridger View was unanimously approved by the Bozeman City Commission, “This
project ticks a lot of the boxes… a sense of place; a sense of community; a place where people of diverse
incomes can live side by side; shared spaces; compact living; and permanent affordability. What more could
you want?”
Community Housing Fund Funding Request
In order to make the Bridger View neighborhood a reality – to create 31 sorely-needed permanently
affordable, owner-occupied homes in this community and to serve as a replicable model for future
developments here in Bozeman – we need to secure additional community support. For this reason, the
Headwaters Community Housing Trust, in partnership with HRDC and the entire Bridger View design and
development teams, requests a grant award of $620,000 from the City of Bozeman Community Housing
Fund. This request is for $20,000 in home purchase affordability assistance for each of the 31 HCHT homes.
It bears noting that this request is in lieu of (1) a request for $10,000 in down payment assistance for each
of these homeowners plus (2) a request for $7,000 in impact fee reimbursement for each of these homes.
And, in return for this investment, the City will benefit from 31 homes in Bozeman that will remain
affordable forever.
Creating homeownership for middle-income households in a housing market like Bozeman is the most
difficult development to do, as there are no public sector resources targeted specifically to households in
this income range. As a result, we must rely heavily on philanthropy to bridge the resulting affordability
gaps. A $620,000 investment from the City of Bozeman’s Community Housing Fund is necessary to
leveraging these additional charitable dollars. For this reason, the requested grant commitment from the
City is integral to the financial viability and success of the Bridger View neighborhood and its 31
permanently affordable homes for working families.
In the Community Housing Fund online application portal, two questions are asked: (1) “Would you accept
50% of the requested amount?” and (2) “Would you accept 25% of the requested amount?” Each of these
questions allows only a “Yes” or “No” answer. We would like to explain here why we answered both of
these questions “No”. We believe our request is fair, is consistent with the City’s community housing policy,
and demonstrates a commitment to the project. And we know we can, instead, access $10,000 in down
payment assistance per home, as well as access impact fee waivers for each home – which, combined,
would equally nearly the same amount as this request. And, finally, we chose to ask for what we believe is a
fair and appropriate amount, rather than electing to “juice” our request to a higher amount, assuming we
may need to negotiate for a lower amount.
This project – and this request – aligns closely with the allocation priorities of the Community Housing Fund
and merits highest scores in the Community Housing Fund Scoring Sheet:
Alignment with Community Housing Action Plan
The 31 permanently affordable owner-occupied homes in the Bridger View neighborhood match exactly
with the urgent needs identified and the highest priorities articulated in the Community Housing Action
Plan. Specifically, quoting the City’s adopted plan, “Objectives established in the Plan that will continue to
be tracked to ensure progress is made, include:
• Ensuring community housing serves the full range of incomes…. This includes safety net rentals below
30% AMI (about $20,000 per year), additional resident and employee rentals up to 80% AMI (about
$55,000 per year), and ownership housing up to 150% AMI (about $104,000 per year).
• Producing community housing at a rate that exceeds, or at least matches, job growth so that new
employees can find homes.
• Striving to produce community housing at a rate that matches the spectrum of community housing
needs, while also preserving what we have through a target of no net loss of existing community housing
stock below 80% AMI.
Ability of this Project to Address a Community Need
As referenced above, there is an urgent and growing need for housing that is affordable to local working
families who, based on their gross household earnings, do not qualify for existing housing affordability
assistance programs but are forced either to live elsewhere or to pay unreasonably and precariously high
percentages of their income to rent in Bozeman. And this “missing middle” crisis has moved beyond a
community development issue into also being an economic development issue as many local businesses
report serious challenges in recruiting and retaining employees to fill available jobs. Bridger View is the only
housing development geared to innovatively and effectively address this middle-income homeownership
crisis, at scale, here in Bozeman.
Target Income
There is a critical, unmet need to assist middle-income households to secure quality, stable housing they
can afford in the community in which they work and where their children go to school. That is the priority
objective of the Bridger View neighborhood. And by permanently preserving the availability and
affordability of these 31 owner-occupied homes, the Headwaters Community Housing Trust will protect
and leverage the City’s investment by keeping these homes for “missing middle” households (as well as
households with lower incomes) for generations to come.
Opportunity Cost
In a remarkable display of generosity and foresight, our major philanthropic partner has already invested
millions of dollars in grant funds to enhance the success and economic viability of the Bridger View
neighborhood, funding the purchase of the 8-acre site owned by HRDC and to be transferred to HCHT in
November and covering project soft costs, so these costs will not be reflected in the purchase price of the
Bridger View homes. And, finally, this partner has pledged substantial additional grant funding to the
project, contingent on the ability of HCHT and its project partners to leverage these funds by securing
additional grant funding and project cost offsets. A commitment of $620,000 from the City’s Community
Housing Fund will go a long way towards bridging this gap. Conversely, a decision by the City not to fund
this request has the very real potential to jeopardize this substantial philanthropic investment and, thereby,
imperil the successful development and completion of the Bridger View neighborhood – a potentially
devastating opportunity cost lost.
Level of Partnership with Other Organizations
From the outset, Bridger View has been a partnership-based development. In addition to the close working
partnership forged between HRDC and HCHT, Bridger View evolved from a very deliberate collaboration
between a range of community partners – including Comma-Q Architecture, Langlas & Associates, ERA
Landmark Realty, Groundprint, Stahly Engineering, among others, as well as a number of regional and
national partners, including our major philanthropic partner – all committed to designing and creating a
neighborhood that will not only address an urgent community need but also serve as a replicable model for
how Bozeman can grow in the future.
Additionally, the City of Bozeman is also a partner, having approved the preliminary Planned Unit
Development (PUD) and plat for the Bridger View development, as well as entering into a cost-sharing
arrangement for off-site infrastructure upgrades through the Capital Improvements Plan.
Alternate Funding Sources Have Been Committed
See operating budget assumptions below.
Thoroughness of the Application and Budget
It is our hope that you find this application and accompanying documents, including the projected project
budget – along with all of the information available on the Bridger View website (www.bridgerview.org) and
in materials previously submitted to and reviewed by the City in the approval process for the preliminary
PUD and plat – to be thorough and sufficient.
Viability of the Proposed Project
The Bridger View neighborhood is the outcome of several years of design, entitlement, and financial
planning by respected local, regional and national experts. These companies and individuals continue their
commitment to make this not only a successful neighborhood development, but one is replicable, working
model for future Bozeman neighborhoods, as well as a launching pad for the Headwaters Community
Housing Trust. The preliminary Bridger View Planned Unit Development (PUD) and preliminary plan were
unanimously and enthusiastically approved by both the Bozeman Planning Board and the City Commission
– and documents for final PUD approval has been submitted and those needed for approval of the final plat
are to be submitted by year’s end.
All indications point to the Bridger View development proceeding next year. Plans are underway for a
groundbreaking ceremony – and the start of construction – in April 2021.
Scope of Project: Number of Affordable Housing Units to be Built
Bridger View is the first and only development in Bozeman to date to target the affordability of 31 homes to
middle-income households in the City. It is our intention to make sure that this unprecedented
development – in composition and scale – is not the last.
Project’s Generation of Permanently Affordable Housing & Ongoing Project Affordability
The Headwaters Community Housing Trust was established and will operate with a sole, dedicated focus on
the stewardship of permanently affordable housing, including these 31 homes at Bridger View. Building on
the groundwork laid by HRDC, the Headwaters Community Housing Trust will demonstrate here in
Bozeman the proven effectiveness of the nationally accepted and proven framework of the community
land trust model to establish, maintain and sustain the organizational and technical capacity needed to
ensure the ongoing stewardship of permanently affordable homes and their owner-occupants forever.
Projects that Demonstrate a Significant Return on Investment That Advances the Creation of Community
Housing in Bozeman
The City of Bozeman’s investment in the Bridger View neighborhood will not only help create
homeownership opportunities for the initial 31 households who will contribute to the economic vitality and
social fabric of this community but for future generations of homeowners, as well. Across the country, the
average tenure of CLT homeowners is seven (7) years. Additionally, studies conducted in a number of
communities in which CLTs have been operating for some time have documented that nearly 70% of CLT
homeowners selling their homes were able to leverage (1) the security and stability of owning a home they
would otherwise have been unable to afford plus (2) the limited-appreciation return from the sale of their
home to purchase an unsubsidized, market-rate home of their own.
If, as we hope, the experience of HCHT homeowners mirrors this national track record, Bridger View’s 31
HCHT homes could provide affordable homeownership to over 120 limited-income households over the
first 30 years of the existence of these homes. And those HCHT homeowners who elect to sell their Bridger
View homes and move on are very likely to be able to transition into conventional fee-simple
homeownership. And this process will repeat itself for generations to come. This, we suggest, is most
certainly a significant return on the investment of funds committed by the City of Bozeman through the
Community Housing Fund.
NOTE: A more readable version of this proposal, including graphics, is attached a PDF file below.
Project Timing On-site construction, including all necessary infrastructure, will begin in April
2021. The first phase of ten homes will be completed by June 1, 2022. Phase
Two homes will be completed by November 1, 2o22. And Phase Three homes
– and the entire development – will be completed by June 1, 2023. In all
phases, an equal number of market-rate and HCHT homes will be developed
and completed.
Which Community Housing
Action Plan Strategy/Action
Item Does This Project
Address?
As referenced above, the Housing Action Plan adopted by the City of
Bozeman calls for effective long-term community housing strategies that
serve local households in a broad range of incomes – from households with
incomes below 30% AMI (about $20,000 annually) to households with
incomes up to 150% AMI (about $104,000 annually). Bridger View is the only
project in Bozeman on track to create a substantial number of owner-
occupied homes that are affordable to households with incomes toward the
higher end of this range – specifically, from 70%-120% AMI. And, second,
meeting another high priority of the City’s Housing Action Plan, these 31
homes will be kept affordable forever by the Headwater Community Housing
Trust.
# of Affordable Dwelling
Units to be
Generated/Renovated
31 owner-occupied homes will be created.
Area Median Income %
Targeted
All 31 homes will be priced affordably to households with incomes identified
as highest priorities by the Community Housing Action Plan. 5 of the homes
will be priced affordably to households with incomes below 70% of local
median income and the remaining 26 homes will be priced affordability to
households with gross incomes between 80%-120% of local media income.
Project Partners (if
applicable)
Headwaters Community Housing Trust. HRDC. Navigate, LLC. Burlington
Associates in Community Development. Comma-Q Architecture. Evolve
Architecture. Groundprint. Stahly Engineering. Langlas & Associates. Central
Plumbing and Heating. Design 5 Consulting. Design Solutions. Beartooth
Lighting Design. Beyond Efficiency. A major philanthropic funding partner
3.Indicate how this project ensures permanent or long term affordability
[×] Land Trust
Please Explain
Not answered
Page 2
4.Project Funding (Please attach budget at the end of the application)
Total Project Budget The development budget for Bridger View is constantly being refined,
consistent with the project timeline, in advance of start of construction in
April 2021. Construction cost estimates will be updated in November 2020
and finalized in March 2021. And analysis is constantly underway, trying to
assess the impact of COVID on the Bozeman economy, as construction costs
are escalating, projected sale prices for the market-rate homes are increasing
dramatically, and local wages are not simply not keeping pace. As we
continue to refine certainty around these costs – and the variables impacting
these costs – it is difficult for us to provide an actual project cost budget at
this time. Similarly, we cannot predict with any real accuracy just how much
philanthropic investment will be needed. Our budget pro forma is being
updated regularly, in advance of final total development numbers in March
2021. We anticipate the total project budget to be in the range of $35-$40
million dollars. These costs will be paid from the following sources in roughly
these estimated percentages: Land donation: 5%. Sale of market-rate homes:
50%. Sale of HCHT homes: 24%. Local partnerships and fundraising: 6%
(inclusive of Community Housing Fund grant). Additional investment from
philanthropic partners: 15% A contribution of $620,00o from the Community
Housing Fund, while only about 1.5% of the total project budget (at $40
million), would be a substantial investment to help us close the remaining
project gap, by leveraging the additional philanthropic resources needed to
fund the project in toto.
5.Primary Project Funding Sources
1.See answer to #4 above.
$ Amount Not answered
2.See answer to #4 above.
$ Amount Not answered
3.See answer to #4 above.
$ Amount Not answered
Amount Requested From
Community Housing Fund
$620,000
6.Which Project Elements Will Funds Be Used For? (attach line item budget if needed)
1.See answer to #4 above.
$ Amount Not answered
2.See answer to #4 above.
$ Amount Not answered
3.See answer to #4 above.
$ Amount Not answered
7.Type of Funding Requested
(○) Grant
8.If you selected Grant, would you consider a Loan if Grant was not available?
(○) No
9.Would you accept 50% of your requested amount?
(○) No
10.Would you accept 25% of your requested amount?
(○) No
11.Could the Grant / Loan be split among multiple years?
(○) No
12.When would the funds requested need to be received in order to optimize the benefit of the funds
requested for the project?
March 1, 2021
13.Have you received community housing funding assistance in the past 5 years?
(○) No
Page 3
14.Additional Information
What is the level of
urgency behind the funding
request?
$620,000 from the City of Bozeman’s Community Housing Fund are urgently
needed and must be in place no later than March 1, 2021, in order to (a)
leverage a commitment of additional, substantial grant funding from our
major philanthropic partner for the Bridger View neighborhood to reduce the
size of the construction financing loan and (b) provide a level of comfort
needed to the Headwaters Community Housing Trust to proceed with
securing the construction financing in advance of start of construction in April
2021.
If Community Housing
Funds are not allocated to
this project, how does
impact the project?
If funding of the amount requested is not committed, there is the very real
potential that our philanthropic partner will not allocate the additional
funding needed, due to lack of demonstrated local community support. This,
in turn, would mean that the Bridger View development would not proceed.
15.Additional Documentation (i.e. Cover letter, budget, project description, letters of support, etc...)
HCHT_CommunityHousingFund_CoverLetter_September.30.2020.pdf
HCHT support letter 9.30.20.pdf
Thank you,
City Of Bozeman
This is an automated message generated by the Vision Content Management System™. Please do not reply
directly to this email.
September 30, 2020
Ms. Tanya Andreasen
Community Housing Program Manager
City of Bozeman
20 E Olive Street
Bozeman, MT 59715
Dear Ms. Andreasen:
On behalf of Human Resource Development Council of District IX, Inc. (HRDC), please
accept our support for the Headwaters Community Housing Trust’s (HCHT) application for
funding from the City of Bozeman for the Bridger View Neighborhood. HCHT was created
to provide sole focus to the stewardship and development of missing middle housing to
serve Bozeman residents. HRDC and HCHT have been working together over the previous
months to facilitate a transfer of the Bridger View Neighborhood, which HRDC has brought
to the Final PUD stage. As was intended from the project’s inception, HRDC will transfer
the property to the community housing trust entity for development implementation.
HCHT, with support from HRDC, will lead the development and provide stewardship for the
subsidized homes and the owners of the homes to be constructed.
HRDC has worked with the City of Bozeman for over 20 years to address community needs
across the housing continuum, from supporting those experiencing homelessness to
assisting first-time homebuyers. As our community grows, needs along this entire
continuum will grow as well. Providing increased ownership opportunities to middle-
income earning households supports an economically robust community. Bridger View’s
innovative housing model relies on a combination of efficient design, philanthropic
investment, and collaboration with the City of Bozeman and other partners.
Returning homes that people in our community can afford to this site has long been a
desire of HRDC. Through partnership with HCHT, community stakeholders and the City of
Bozeman, this neighborhood can serve as a model for future development to meet our
community needs.
Sincerely,
Heather Grenier
President/CEO