HomeMy WebLinkAboutWestern Montana Mental Health Center's Affordable Housing Funds Request for the HOMEstead.pdf
REPORT TO: Honorable Mayor & City Commission
FROM: Doug Riley, Associate Planner
Tim McHarg, Planning Director
Chris Kukulski, City Manager
SUBJECT: Western Montana Mental Health Center’s Affordable Housing Funds Request for
the HOMEstead
MEETING DATE: February 7, 2011
AGENDA MEETING ITEM: Action
RECOMMENDATION: That if viewed favorably by the City Commission, any request for financial
assistance would be paid from the Affordable Housing mill levy money.
BACKGROUND: The Western Montana Mental Health Center (WMMH) has submitted the attached
request to the City for affordable housing funds in support of a new six (6) unit apartment building for
mentally ill members of the community. WMMH will leverage the funds received from the City as a
match for an application to the Montana Department of Commerce’s HOME program to further reduce
the debt of the building to keep the rents as low as possible (projected at $225/month or 12% of Area
Median Income).
This affordable housing project would be located at the new Gallatin Mental Health Center Campus
located off Haggerty Lane east of Bozeman Deaconess. The existing campus includes the Hope House
(crisis stabilization), an Outpatient Services building, a Peer Recovery Center, and the Dorothy Eck
House (a four-plex of one bedroom affordable housing apartments which are also charged at
$225/month).
The Community Affordable Housing Advisory Board (CAHAB) reviewed the request at their January
20, 2011 meeting. As noted in their attached memorandum, CAHAB recommended the funding of the
request with a $75,090 grant for reimbursement of impact fees for the Dorothy Eck House and the
HOMEstead buildings and a 5-10 year loan @ 2% for $46,800 for the new HOMEstead building.
UNRESOLVED ISSUES: WMMH has indicated that if the City was able to fund the entire request
($121,890) as a grant, the building would be debt free and they would be able to provide one unit to
someone at zero income.
Commission Memorandum
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ALTERNATIVES: 1) Approve the request for funds as recommended by the CAHAB.
2) Approve the request for funds in a different amount or allocation than
recommended by the CAHAB.
3) Deny the request for funding.
FISCAL EFFECTS: The current balance in the Housing mill levy fund is $307,056. After making a
$121,890 payment to WMMH, the balance in the fund would be $185,166. $75,090 of the $121,890
payment would be a grant and therefore would not be paid back to the fund. The remaining $46,800 of
the $121,890 payment would be a loan that would be paid back to the fund. If the loan term was 5
years at 2% interest amounting to $2,420 then approximately $49,220 would be paid back to the fund.
If the loan term was 10 years at 2% interest amounting to $4,875 then approximately $51,675 would be
paid back to the fund.
Attachments: WMMH letter of request.
CAHAB Memo/Recommendation
Report compiled on January 26, 2011
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