City faces affordable housing shortage

A recent study on Whitefish’s housing needs shows most low- and moderate-income families can’t afford to live here.

Without a stock of more affordable housing, Whitefish risks alienating public and private workers who make the city tick, says Sawyer Shirley of National Facility Consultants, the firm hired by the Whitefish Housing Authority to assess local housing needs.

“The result will be like many northwestern resort communities where the workers cannot afford to live in their own community. This has been the case in towns like Jackson Hole, Wyo., where even affordable housing is not accessible to moderate-income families.”

Homeownership in Whitefish for those at 30 percent of median income is simply not attainable, Shirley notes. A family at that income rate could afford to buy a home between $60,000 and $70,000.

“There is no available stock in this price range,” he goes on.

The same can be said for families at 50 percent of median income where house prices would have to fall between $110,000 and $120,000

Underwriting standards at mortgage institutions are also standing in the way of middle income families and home ownership.

“The assumed 3 percent down payment is simply insufficient to qualify for a mortgage,” Shirley said. “Buyers will either have to save up for a 10 percent down payment or qualify for a down payment assistance program.”

The Housing Authority can play a critical role in helping close the affordability gap by continuing to offer assistance for qualified buyers, Shirley says.

Since 2005 the authority has operated a homeownership program that provides assistance with down payments and closing costs, and direct subsidy on mortgages.

“This program has been quite successful with 25 homes being sold to date,” Shirley notes.

Of those 25 homes, 11 are deed restricted, meaning the sale price is kept down so the unit remains affordable to potential buyers.

However, since the decline in the real estate market, funding for the authority’s homeownership program has been limited. That funding is based on the Voluntary Inclusionary Zoning program which provides developers density bonuses if they make 10 percent of the development’s units affordable.

“In order to ensure that payments continue and sufficient affordable housing is preserved, the program should become mandatory for all new development,” Shirley said.

The affordability gap isn’t solely related to homeownership. Middle- and low-income families also struggle with finding affordable rentals in Whitefish.

About 40 percent of renters here are paying in excess of 30 percent of their income for rental housing. The median rent in Whitefish is $736 per month.

The Housing Authority continues to make an impact by providing low-income rentals at the 50-unit Mountain View Manor. The property designated for elderly and disabled is in a healthy position with “extremely” high occupancy rates and low turnover, Shirley says.

“The property is in demand,” the report notes.

The average rent at the Manor is $321 per month.

Along with managing the Manor, the authority facilitates a Housing Choice Voucher program which provides subsidies for low-income renters.

Shirley’s report shows that all 16 of the vouchers were under lease.

“This indicates a very high need for affordable rental housing for families,” he says.