HomeMy WebLinkAbout06-29-24 Public Comment - N. Nakamura - Please deny the Guthrie and reconsider affordable housing ordinanceFrom:Natsuki Nakamura
To:Bozeman Public Comment
Subject:[EXTERNAL]Please deny the Guthrie and reconsider affordable housing ordinance
Date:Saturday, June 29, 2024 3:41:06 PM
Attachments:deny guthrie.pdf
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Hello,
My comments regarding the Guthrie project being considered on July 9th are attached, since Iwill not be able to attend in person.
Thank you for your consideration,
Natsuki
Dear Commission:
There are other compelling public comments that have been submitted on why application
23354 can and should be denied. I would like to speak briefly to the piece regarding the issues
with the current affordable housing incentives.
In 2022, a consulting firm (Clarion) helped model what could be possible with incentives for
affordable housing. Several important things to note are:
1. They modeled the proposal for the shallow incentives only. The deep incentives in the
affordable housing ordinance was City staff's best guess about what more could be
bartered.
2. They suggested tying incentives to affordability (for rentals) at the 60% AMI level, not the
80% AMI level in the incentives now. This is a significant difference in affordability (see
table below).
3. They were assuming 3-bedroom units or townhouses would be built, which could then
house a family or be split by roommates who could each end up paying less than
$1000/month. However, why would a developer have larger units if that means fewer
units to be able to collect rents from? In the Guthrie proposal, there are 111 micro units –
most of which appear to be studios, not true 1-bedrooms. This is not housing for the
Missing Middle Family and it would require working people sharing 400 sqft in order to
split rent to be able to pay less than $1000/month. (As of yet, no housing for sale -
targeting 120% AMI - have been developed utilizing either the shallow or deep
incentives because it is more profitable to collect rent from many more units.)
Back when the affordable housing incentives were being considered, most of the Economic
Vitality Board was supportive of the incentives, specifically of the increase from 60% AMI to
80% AMI, while the Community Development Board remained skeptical. A recent housing
needs assessment found that 45% of renters in Bozeman earn below 60% AMI (currently about
$22/hr for an individual). This includes many service industry jobs as well as the starting salary
for teachers at the school district, all vital for keeping our city running.
Below is rent considered affordable (30% of income) for different size units if affordability is tied
to 60% AMI vs 80% AMI, based on 2024 AMI numbers for Gallatin County. This would be the
maximum rent that could be charged by developers for “affordable units” and still meet
affordability requirements in their affordability plan (50% of units for deep incentives, 5% of units
for shallow incentives). Rent
considered
affordable at
60% AMI
Hourly wage needed
for an individual
working fulltime to
be able to afford this
rent
Rent
considered
affordable at
80% AMI
Hourly wage needed
for an individual
working fulltime to
be able to afford this
rent
Studio $1145/mo $22/hr $1526/mo $29/hr
1-Bedroom $1308/mo $25/hr $1745/mo $33/hr
2-Bedroom $1472/mo $28/hr $1963/mo $38/hr
3-Bedroom $1635/mo $31/hr $2180/mo $42/hr
We are seeing that luxury units have been overbuilt and now they are essentially going for the
same price point as the "affordable" units of the Guthrie, meaning that people at 80% AMI can
pay the same price for more space and amenities than at the Guthrie. Some supporters of the
Guthrie have stated that the deep incentives for affordable housing are working as written.
However, I strongly believe our affordable housing incentives are not helping us fill a gap in
housing; it is allowing undignified housing. For a renter like me, it is not about the location.
There is no good location for undignified housing like the Guthrie.
I am very grateful to the Inter Neighborhood Council for taking the extra time to discuss and
engage neighbors about the proposed Guthrie project and it means a lot for the Council to send
a unified message from the neighborhoods able to vote on the issue. It was encouraging to see
that the neighborhood representatives were able to get feedback from a decent number of
neighbors in such a short amount of time and I appreciate INC’s commitment to building
community within their neighborhood as well as between neighborhoods.
Many of the concerns being brought up by residents now about the Guthrie and with the deep
incentives in the affordable housing ordinance were brought up in 2022 by the Community
Development Boards and Commissioner Madgic. Approving application 23354 would set a
precedent for more similar products that are not addressing our housing needs. I urge the
Commission to deny application 23354 and rescind the deep incentives of the affordable
housing ordinance to avoid this precedent.
Thank you for your consideration.
Natsuki Nakamura