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Ronan selected for affordable housing incentive

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RONAN – Housing is a basic need: without a home it is difficult to care for a family, hold down a job or be part of a community. More options for affordable, high-quality housing in Ronan are on the horizon thanks to incentives from the federal government. 

A proposal from Lake County Community Housing and the Ronan Housing Authority in partnership with the nonprofit Rural Community Assistance Corporation has been selected as one of five Montana affordable housing projects to be supported by tax credits. 

According to a press release from Governor Steve Bullock’s office, $30.6 million in federal tax credits have been awarded to Montana affordable housing projects this year. The credits will allow developers to construct or renovate housing and rent it to eligible low-income families for reduced rates (see sidebar).

The Ronan project, named Meadowlark Vista, was awarded $4,182,970. The project will construct 24 family housing units. According to a press release from the governor’s office, it is expected that the construction projects across Montana will generate 75 Montana jobs and $3.4 million in wages.

The other projects that have been awarded tax credits are in Billings, Havre, Helena and Whitefish. 

According to Jodie Paxton, executive director of the LCCH and RHA, Ronan is in dire need of affordable housing. As part of the application for tax credits, the organizations did a market study on housing in the area. Between the study and the RHA waiting list, the RHA identified 587 families who were seeking affordable housing. There was only one affordable housing unit available at the time.

A partnership with the nonprofit RCAC made it possible for Ronan to put together a competitive proposal. RCAC is a nonprofit based in Sacramento, California, that helps rural western communities improve access to affordable housing. Paxton heard about RCAC’s involvement in building affordable housing in Kalispell. She approached RCAC about partnering to build affordable housing in Ronan. 

“The housing authority in Ronan is very small and has just a few staff, so they didn’t have the capacity or knowledge to take on a project like this,” said Dave Ferrier, director of housing programs at RCAC. Paxton said RCAC’s experience with the process likely boosted Ronan’s chances of being selected for the tax credits. RCAC’s involvement assured the housing board that the project would be well managed. 

Ferrier said the partnership with a local organization is an integral part of RCAC’s process. “We will always be willing to help, but we will not be the sole developer,” Ferrier said. 

According to Ferrier, shortages of affordable housing are less widely recognized in rural areas. As a result, urban projects can have an advantage in the competition for tax credits. “Smaller communities are sometimes left out of the equation,” Ferrier said.

Housing shortages can have devastating impacts on rural communities like Ronan.

“Rents are increasing rapidly and vacancy rates are going down,” Ferrier said. Paxton said St. Luke Community Healthcare, Rocky Mountain Twist and the Confederated Salish and Kootenai Tribes have faced challenges retaining employees who cannot find housing in the area. 

“They’re having difficulty attracting and keeping workers,” Paxton said. When businesses can’t retain their employees, Ferrier says it “can cause a community to die on the vine.”

According to Ferrier, construction on Meadowlark Vista will likely start next spring. The housing will be located off Round Butte Road adjacent to Acre Lawn apartments, an existing affordable housing community. The units will be energy efficient to keep environmental impacts and heating costs at a minimum. The two-phase project will eventually produce 40 affordable housing units.

“We want to be ready to hit the ground running once weather permits,” he said. Ferrier expects the project to take nine to 12 months to construct. He said his “guess” was that Ronan residents could expect the housing to be available in late winter or early spring of 2021. “This is a really wonderful thing for Ronan,” Paxton said. 

 

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