Coversheet

Meetings

City of Helena, Montana

October 30, 2020

To:

Rachel Harlow-Schalk, City Manager

From:

Sharon Haugen, Community Development Director

Chris Couey, Budget Analyst

Thomas J. Jodoin, City Attorney

Subject:

Consider a resolution establishing an affordable housing trust fund to meet affordable housing needs in the City of Helena.

Present Situation:

At the October 21, 2020 Administrative meeting and prior to that the August 19, 2020 Commission Administration meeting, the City Manager received consensus direction to bring before the Commission a resolution to establish an Affordable Housing Trust Fund that includes:

• requires the City Manager to include a $100,000 transfer from the General Fund to the Trust Fund in the City Manager’s fiscal year preliminary budget, and
• dedicates funds not otherwise committed from the sale of General Fund property to the fund.

No additional funds are necessary to establish the fund currently. However, the City Manager plans to review funds that may be reallocated to the fund as a result of reimbursements received from COVID-19 CARES Act funding made available by the State of Montana.

Additionally, operation and programmatic management of the Fund will be determined by the FY21 budget approved Housing Coordinator who will provide a work plan to the Commission soon after starting to ensure policies of importance to the Commission are incorporated as well as establishment of a review Committee for the program.

As a reminder, the City has engaged the community on the establishment of this fund through the Housing Task Force. The Housing Task Force is made up of representatives from the low-income housing providers, such as RMDC, Habitat for Humanity, and others; the Helena Housing Authority; Helena Builders Association, Helena Realtors Assn, the Chamber of Commerce, MBAC and representatives from Lewis and Clark County and East Helena

In 2018, the City of Helena participated in the Tri-County Housing Needs Assessment which identified the population of Helena continues to grow while the affordability of housing (homes owned or rented) continues to decline. One of the strategies identified in that assessment was the creation of a local housing trust fund. This toll was further identified in the Housing Strategy presented to the Joint Work Session in December2019. Additionally, the City of Helena’s Growth Policy as adopted by the Commission on June 29, 2020 responds to the Assessment and supports the need to establish such a fund in support of affordability in Helena.

While the creation of this fund is not unique to Helena, it is reflective of Montana’s authority given to local governments and meets the expectations of establishment. Other communities across the nation utilize Affordable Housing Funds including Missoula, Montana and the City of Bend, Oregon. The structure of the fund as identified in this resolution reflects a financial commitment by Helena within its abilities as a municipality in Montana.

Background Information:

Establish an affordable housing trust fund, ensure that annual dollars will be set aside in the amount of $100,000, and dedicate funds not otherwise committed from the sale of General Fund property to the fund to continue the allocation of resources in Helena thus assuring the City’s commitment to affordability.

Proposal/Objective:

Advantage:

Implementing this affordable housing fund and setting aside dollars not only establishes a clear commitment to affordability, it also allows the City to leverage potential other federal resources and attract other investors in the community to improve affordability.

Notable Energy Impact:

N/A

Disadvantage:

If the fund is not established and dollars set at a minimum level to operate, it is anticipated the City will continue to struggle to improve the diversity of housing stock in the community.

Notice of Public Hearing:

N/A

Staff Recommendation:

ATTACHMENTS:
2019 Growth Policy, Chapter 9 Coordination & Implementation
Tri-County Housing Needs Assessment
Resolution