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Our Redeemer, Helena-area nonprofits request $2.4M subsidy for affordable housing project
A 113-unit housing development project born out of a partnership between Our Redeemer Lutheran Church and three Helena-area nonprofits is seeking $2.4 million in subsidies from local government.
Gretchen Krumm, a project architect with Helena firm Mosaic Architecture, who is spearheading the planning phase of the project on behalf of Our Redeemer, told local government officials during a joint meeting Tuesday evening that “affordable housing can’t be developed on the site without public subsidy.”
The church intends to sell about 11 acres of its land, located between Benton Avenue and Green Meadow Drive just north of Custer Avenue, at a cost that will facilitate low-income housing development.
Helena Area Habitat for Humanity, YWCA Helena and Rocky Mountain Development Council (RMDC) are the nonprofits involved, and RMDC’s board recently approved a plan for its organization to act as lead developer contingent upon the local subsidies.
The plan is for the construction of 33 Habitat for Humanity single-story duplexes, 60 RMDC-administered apartment rentals and 20 units for YWCA Helena clients unable to graduate out of the program because of the runaway local housing market at a total estimated cost of $40 million.
Krumm said a large “green parkway” will run across the entirety of the development over a gas line easement and the large block will be bounded by landscaped walking paths.
Our Redeemer intends to develop other portions of its land alongside the nonprofits. It plans to build a new facility to house its expanding preschool, which currently resides within the church, as well as additional space for a privately run day care facility and small market.
The $2.4 million subsidy would go toward the purchase of the land.
Former Helena City Manager Rachel Harlow-Schalk had previously said the city would consider spending $2.4 million in federal aid through the American Rescue Plan Act to purchase the land and connect to city utilities.
The project was also championed by former City Commissioner Heather O’Loughlin.
Though that was one city manager and three city commissioners ago.
Interim City Manager Tim Burton said Tuesday the city is in the process of determining its own need for its nearly $8.5 million distribution from the U.S. Treasury and that it is about two months away from determining how best to decide on how to allocate those funds to outside efforts.
City staff is drafting applications for such projects to formally request ARPA dollars.
Lewis and Clark County Commissioner Andy Hunthausen said the county has already allocated about $11 million of its $13 million in ARPA funds to “do a lot of good things that will contribute greatly to the needs of our community,” but that he’d like “to study a way the county can participate in this project.”
“Obviously I’m not committing anything, but I would like to look at ways to participate in a positive way,” Hunthausen said.
County Commissioner and Chairman Jim McCormick offered the county as a sponsor on any federal funding or grant dollars that would require a local government sponsor as a passthrough.
Burton said city staff has been in conversations within the last month with U.S. Department of Housing and Urban Development and that “they do want to partner with us on a project.”
County Commissioner Tom Rolfe expressed reservations about committing money to the project.
“I’m concerned about setting up a beautiful project like this only to need several thousand more dollars a year to keep it going,” Rolfe said. “I’d kinda like to see how things pan out long term.”
He asked to see examples of similar housing models succeeding over decades.
“We’re facing some real uncertain times with government-caused inflation, and I’d like to see that it has worked and can work over that course of time,” he said.
The first major hurdle facing the actual development would be the extension of Horse Shoe Bend Road between Benton Avenue and Green Meadow Drive, which would need to occur to allow for ingress and egress of the development, with RMDC taking the lead on that as well.
The projected timeline, should the requested subsidy from either or both county or city government be approved, has the road work beginning in 2024 and the partner organization projects beginning in 2025.
