The Flathead County Commissioners, addressing a packed audience, rejected a $9 million affordable housing investment from the state and private entities. This decision makes Flathead one of only three Montana counties to oppose the homebuyer assistance program. The initiative stems from the 2023 Montana Community Reinvestment Plan, part of House Bill 819, which designated $56 million to aid low- and middle-income families. The plan seeks to mitigate soaring housing costs, with Montana’s median home price reaching $452,050, while in Flathead County, it exceeds $650,000.
The 2-to-1 vote against the funding means the allocation will be redirected to other counties embracing the program. Commissioner Randy Brodehl, opposing the measure, argued it unfairly redistributes taxpayer money and poses undue risk. Commissioner Brad Abell was the sole supporter of the funding. Despite overwhelming public support through comments and letters from organizations such as the Northwest Montana Association of Realtors and the Kalispell Chamber of Commerce, the majority of the commission remained unconvinced.
Kalispell Mayor Mark Johnson emphasized the importance of the $9 million for workforce housing, while Whitefish Finance Director Lanie Gospodarek noted it’s a chance to leverage private investments without financial risk. Brodehl, who labeled HB 819 a “socialized program,” criticized the $225 million fiscal note, advocating instead for taxpayer returns. He highlighted property tax rebates as a preferable alternative.
Community Reinvestment
House Bill 819, backed by bipartisan support, introduced programs to tackle housing issues statewide. It includes a $50 million deed-restricted housing initiative, allocating funds proportionally to counties based on GDP. An extra $6 million supports counties near state-owned facilities housing over 100 inmates.
The bill mandates counties to opt in, partnering with a Community Reinvestment Organization to manage funds and match state allocations with private investments, doubling available funds to $112 million. The homebuyer assistance program offers residents making 60% to 140% of the median income interest-free loans and caps payments at 30% of gross income.
Three counties—Flathead, Sweet Grass, and Fallon—voted against the program, while Richland and Daniels took no action, effectively opting out. Richland County Commissioner Duane Mitchell likened the program to socialism, praising Flathead’s decision.
Making their case
During the meeting, attendees expressed concerns over young professionals leaving due to prohibitive housing costs. Kalispell resident Drew Rafkin supported HB 819, emphasizing its potential to retain talent within the community. Conversely, opponents like Doug Adams and Montana Rep. Tanner Smith argued against government intervention in housing.
Smith criticized HB 819, claiming it followed California-style policies. The bill, sponsored by Republican Rep. Paul Green, passed the GOP-controlled legislature with substantial support.
Commissioner Pam Holmquist opposed the measure, citing concerns over government overreach and potential debt for homebuyers. She mentioned market corrections and resisted government funding interference.
Commissioner Abell, despite program flaws, supported accepting the funds rather than losing them to other counties.
In the final stretch, counties schedule votes on homebuyer assistance
As the deadline approached, Valley County voted to accept $310,000, while Sanders County took $360,000. Sanders Commissioner Tony Cox acknowledged the necessity of accepting funds to benefit the community.
With only five counties declining the program, Flathead was the largest to opt out. The $4.5 million initially allocated to Flathead will be redistributed to participating counties, enhancing their funding opportunities.
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