Whitefish Community Housing Committee
Regular MeetingWhitefish, MT · October 23, 2023
Minutes
Whitefish Community Housing Committee Minutes
Monday, October 23, 2023, at 4:00 p.m.
City Hall – City Council Conference Room
Present: Cameron Blake, Ben Davis, Rhonda Fitzgerald,
Leanette Galaz, Roxann Gallagher, Carolyn Pittman, Daniel Sidder
Staff: Dana Smith, City Manager; Wendy Compton-Ring, Senior Planner; Luke Sponable, Housing
Planner, Angie Jacobs, City Attorney
Public – Jerod Slaybaugh, Aaron Roberts, Rebekkah Alcott
1. Call to order. 4:05 pm
2. Communications from the public: none
3. Approval of minutes from the September 25th meeting. Cameron moved to approve, Rhonda
seconded, all in favor.
4. Continue to review light deed restriction drafts and annexation policy.
Angie introduced drafts of deed restrictions based upon decisions made by committee to date,
Owner Occupied Deed Restriction.
Dana – Committee still need to decide when these deed restrictions would apply.
Angie - 10 months, administrative fee – flat fee – one-time from WHA. Commensurate with time spent.
WHA bringing us numbers.
Discussed rental of room or room. Helps with home ownership. Consistent with goals.
Rhonda – leaving wide open for July and August rental to vacationers.
Cameron – can we do one year then?
Ben – solution keep 10 months, but lease has to be 12 months.
What if need a roommate to afford the mortgage?
Do we need to restrict?
Dana - what if allowed for rentals for qualified tenant. Could restrict to workforce.
Daniel - Who’s going to track.
Daniel - inclusionary zoning hasn’t worked out across the country – on the whole units added will be for
low to middle – need to figure out adding more supply to get to lower prices.
Ben – this is not inclusionary zoning/price-controlled. Goal from Housing Plan says 70%/30% with 70
goal of primary resident/owner occupied. This is a soft deed restriction.
Rhonda – endless supply will not solve problem – has not. We saw built 1100 units – none affordable.
Ben – irrelevant as not controlling price.
Dana - Kalispell can build out, Whitefish never will – demand.
Ben proposed at least 90 days. All seemed okay. (Owner renting a room(s))
Angie – zoning and deed restriction so need to be clear.
Leanette – Would like to see someone be able to rent out room – treat all the same whether $300,000 or
$1 million house.
Carolyn - Why 30 days or less for short term.
Angie explained state landlord – tenant law. State law is outdated.
Daniel – take out “Qualified” – it means 10 months.
Rhonda – take out short term. Rent for 90 days. All agreed.
Owner Occupied Workforce Deed Restriction
Angie – Work 30 hours a week or more for qualified business. Also added language to allow for retired
or disability.
Daniel – when use?
Angie – The development agreement could provide for percentages of each. Trying to provide a mix of
products to utilize, depending on lots of factors (size of property, locations, etc.)
? Change rental property to mirror owner occupied.
All - Discussed definition of household. Workforce? Different opinions.
Dana – light deed restriction calls for workforce in roadmap.
Discussed workforce priority – remote? Physically located?
Angie - People want to be part of community, but work in Kalispell? How not to exclude.
Dana- workforce is simply a priority. Need to serve people here. Have to have employee housing.
Roxann - Qualified business – physical location?
Discussion over remote, where work. Effect of remote workers. They don’t need help as higher income.
Ben – workforce has always been a priority.
Angie not sure if in the deed or process through Housing Authority?
Roxann – business should physically in location.
Cameron – what if no one is interested in buying with qualifications. Should there be a 5th priority?
Wendy – If no one qualifies reverts to owner occupied.
Everyone agreed that is a good solution.
Ben – what if we narrow buyers to those working -
Cameron – how long do wait for buyers before goes to owner-occupied?
Angie – restrictions are a tradeoff for annexation. Looking at when does it make sense for the City.
Ben – developer has no idea what sales price will be of owner-occupied workforce house.
Discussion over how developers figure it out, pricing, sales.
Ben – in workforce pool stays in workforce pool.
Add physical Location, take out number 4 and also number 5.
Rental deed restriction same as owner-occupied.
Discussion over retirement age – 60 came from Big Sky. Get rid of age. Retired and worked for
qualified business for 5 years.
Ben – units for workforce, why are retirees allowed.
Angie – concerned over discrimination if we don’t allow retirees.
Discussion over age for retirement. 65 is Medicare age – let’s use that. All agreed.
Rental Housing Deed Restriction
Angie reviewed – occupy unit for 10 months. But requiring one year lease. Usually, leases are for one
year. Who rents and doesn’t live here. More applicable to workforce rental deed restriction.
Wendy – would covenant make more sense or agreement with housing authority and landlord?
Angie – how qualify – do you live in Whitefish? does just living there 10 months get us somewhere.
Luke – 12 months is what workforce is looking for. If in STR zone this would restrict.
Angie – City prohibited from getting involved in Landlord- Tenant relationship. Reviewed annexation –
they are getting something in return – services.
Ben – would be nice to have a standardized formula – don’t want to be negotiating with developers.
This is the framework for this.
Cameron – is less than one year, seasonal happening in apartment market.
Leanette – mostly long-term. Owner-occupied also typically long-term. (basement apartment or
duplex)
Angie - We do not want to get involved in lease agreement – says that in deed restriction.
Leanette – leases are typically restrictive as to who can live there.
Discussed – do we even need this if goal is workforce housing.
Angie – where this may make more sense is in workforce so drafted.
Workforce rental housing deed restriction.
Reviewed draft.
Cameron – should make age 65 like ownership.
Discussion over lease terms and annexation. Tradeoff.
Developers are choosing to annex.
Roxanne – if invalidated turns into contractual obligation between parties.
Ben – next question - when do we address - when do these apply?
Rhonda – have we looked at?
Dana - just in context of Road Map. Not the details yet.
Ben – let’s look at that next meeting.
Wendy – under new Senate Bill 382 we will be identifying appropriate zoning ahead of any potential
annexation. Will assign actual zoning to parcels.
5. Discuss enforcement of housing policies/short-term rentals
Rhonda – we need to send notice to the council that this is important.
Dana – short staffed in finance department. Working on filling. (part-time position)
Bringing up funding staffing full-time and updating business license at the Nov 20th City Council
Meeting.
This Committee already made a motion to prioritize this.
Senate Bill 262 restricted licensing ability of City.
Ben - less than 20% zoned for STR in City.
Rhonda – City limits – over 600 active – last month 800.
Cameron – can we limit 30 days renting for 5.
Ben – no - we tried.
Ben - we already have zoning that limits STR, Whitefish is unique in Montana.
Leanette - What about caps.
Ben, Wendy - zoning is the cap.
6. Discuss new date for December meeting
Tuesday, December 19th.
7. Review procedure for conversion from temporary to standing committee
Current committee members will all need to reinterview.
8. Other items not on the agenda.
Luke – requested committee members write a letter of support for Pro Housing grant.
9. Next committee meeting - Monday, November 27th at 4:00 p.m.
10.Adjourned at 6 pm.
Agenda
WHITEFISH COMMUNITY
HOUSING COMMITTEE AGENDA
Monday, October 23, 2023, at 4:00 p.m.
City Hall – City Council Conference Room
1. Call to order.
2. Communications from the public.
3. Approval of minutes from the September 25th meeting.
4. Continue to review light deed restriction drafts and annexation policy with
Angie.
5. Discuss enforcement of housing policies/short-term rentals
6. Discuss new date for December meeting
7. Review procedure for conversion from temporary to standing committee
8. Other items not on the agenda.
9. Next committee meeting.
a. Monday, November 27th at 4:00 p.m.
10. Adjourn.
Committee Documents:
Click here to access the Whitefish Community Housing Roadmap
Click here to access the 2022 Whitefish Area Community Housing Needs Assessment
Click here to access the Workforce Housing Needs Assessment
Click here to access the 2017 Whitefish Strategic Housing Plan
Whitefish Community Housing Committee Minutes
Monday, September 25, 2023, at 4:00 p.m.
City Hall – City Council Conference Room
Present: Cameron Blake, Ben Davis, Rhonda Fitzgerald,
Leanette Galaz, Roxann Gallagher, Dwarne Hawkins,
Staff: Dana Smith, City Manager; Wendy Compton-Ring, Senior Planner; Luke Sponable, Housing
Planner, Angie Jacobs, City Attorney
Others: Joel Temple – University of Hawaii
1. Call to order at 4 pm by Ben Davis
2. Communications from the public. Joel introduced himself. He is here talking to local communities
about the gentrification of Mountain towns for his master’s thesis.
3. Approval of minutes from the August 28th meeting. Rhonda moved with correction of her last name,
Cameron seconded, approved.
4. Continue to review light deed restriction drafts with Angie (ownership and rental).
Dana - reviewed past decisions and decisions to be made. Made decisions related to light deed decision
(no income requirement) Need to define qualified household. Questions around ownership, rentals and
annexation (size).
Rhonda – in residence for 10 months leaves July and August open to rental - loophole
Dana – still have to rent to qualified household – 10 months or more unless primary resident. But should
we even allow within first three years?
Cameron – what are they getting in return? Where is monetary benefit to developers – when is it not
worth it? Financial cost?
Dana – only restriction is primary resident for ownership – as drafted not a workforce requirement (as
drafted)
First question – what is a qualified household? Keeping expectation with 70-30 roadmap split (primary
to secondary) to just do primary. Or do we add workforce? If we add workforce what is qualified?
Angie – could do three - primary, workforce and rental – maybe we want mix.
Discussed remote workers, more opportunities remotely, penalized for seeking growth, some see remote
worker as problem earning income and driving others out – out of balance. Some are part of the
community. How to differentiate between types of remote– residency – 10 months?
Ben – practical example – 10 lots single family subdivision – 1 house owned by someone who works at
local business. What if it is too expensive. How does this work?
Dana – Lets do deed type definitions first, talk about how they’ll be used later.
Angie – type will depend on developer negotiations – what do they want to provide?
Leanette – Could this create space for new folks to move here, move up, free up stock? Is that how
others see it?
Dana – this won’t serve lowest earner – can’t restrict by price. Developer agreement important as
mutually agreed upon.
Leanette - So workforce definition is trying to get around restriction on price? Concern with workforce
is restrictive – school, family considerations.
Dana – require qualification only at time of purchase.
Ben –Ownership forever, workforce temporary. Better solved with rental where city has subsidy or
ownership? Financial risk borne by others versus owners.
Dana - if definitions are in place can use for other purposes – doesn’t have to be workforce. Could be a
future resort tax funded situation.
Dana - Need ownership option 1) primary 10 months or more and 2) 10 months or more primary plus
workforce 30 hours a week.
Discussion around rentals – owner occupancy?
Ben - Annexation policy 70% of all units primary and Rentals 1) primary or 2) , need two for rentals.
Cameron – Couldn’t go back to council if not marketable?
Dana – yes, Trailview did this
Dana – so two for rentals too. 1) one-year lease – 12 months or more for a rental and 10 months or more
for ownership (10 months came from Legacy homes, teachers).
Angie – rental deed restriction based on ADU – must be a year. Does the committee feel this is the
same?
Dana – qualified tenant – occupied as primary residence.
Ben – affidavit or self-certification that purchasing as a primary resident.
Leanette – need enforcement.
All agreed:
• Ownership 1 - owner-occupied for 10 months or as more primary residence.
• Rental 1 - occupied for 10 months or more as primary residence with 12-month lease.
• Ownership 2 – owner occupied for 10 months or more and works 30 hours a week for a
Qualified Business.
Discussed and agreed on Qualified business definition – Located in (by priority) 1) City limits, 2)
59937, 3) Flathead County, 4) everywhere
Who is eliminated? Retirees are not if worked for business. Remote workers are.
Leanette- who is impacting housing stock - 40% who don’t live here full time affecting more than
remote workers.
Cameron – we are trying to solve the issue of local business worker shortage.
Discussion there are other solutions for seasonal and increasing supply could help too.
Only one person on lease has to meet qualified business definition.
Consensus – 12 months.
Dana – two other items for rentals
1) Section 2 – constructed same as other units?
Discussion – integration, similar finishes, similar size. Consensus – yes – but should go in developer
agreement and not go in deed restriction.
2) Section 9 - maintenance
Dana – probably covered under landlord-tenant – leave to State law.
All agreed.
Dana - next time annexation policy development agreement.
Dana & Angie – will bring back a clean draft for next time.
Annexation – developers are bringing a proposal to City that will have mix. Incentive - City services
Ben – big picture of implementing – very complex ––administration. . Example of Legacy homes
policies and procedures.
Dana – Policy has to be drafted. Similar to Legacy homes.
Ben – sees as presenting a program to potential annexors. Council needs to be able to have right to
approve or deny.
Cameron – how does developer agreement work vis a vis deed restriction.
Discussion around how it would work, what gets recorded. When goes to deed – initially or upon
subdivision.
Roxanne – recommended recording only development agreement memorandum.
Rhonda – timeline – we need a win. Let’s not spend six more months.
5. Discuss canceling or rescheduling December meeting since the 4th Monday falls on Christmas Day.
Reschedule to earlier time – will decide at next meeting. Dana expecting in late December.
Congratulations! Out through early Feb.
6. Review current Committee membership and possibly recommend to the City Council that the
Whitefish Community Housing Committee be created as a standing committee.
Dana – sent to expire end of December. Would need to re-apply. Two-year term.
Membership – is every group represented?
Discussion around combining committees (climate action) was turned down by council.
Leanette – periodically committees representatives meet to share?
Rhonda – could we do brown bag lunch housing to share information?
Leanette – should have renter, workforce on community – prioritize.
Dana reviewed membership make-up and history.
Ben – bring up membership at council as they are deciding.
Consensus - makes sense to make a standing committee.
7. Other items not on the agenda.
Cameron – STR Enforcement?
Rhonda – latest AIRDNA Almost 800 in City limits and 1600 in 59937.
Dana - Many are 30 -day. Short-staffed, Once fully staffed in finance department who helps with
enforcement. Will have more time. Need solid answer from State meeting of City Managers in October
before proposed changes to business licenses needed to fund full time position.
Message to council to prioritize.
Lawsuit against City to control short term rentals by zone.
Luke - HUD grant – working on to fund work needed for growth policy. Changing zoning to better
accommodate affordable housing. $1 million ask to hire consultants for better rounded idea on what will
work – planning grant.
8. Next committee meeting. a. Monday, October 23rd at 4:00 p.m.
9. Adjourned at 6:10 pm
LIGHT DEED RESTRICTIONS/ANNEXATION POLICY
DECISIONS MADE:
• Qualified Household may rent to another Qualified Household, but primary residency is s�ll
required at 10 months or more.
• Delete Sec�ons:
o 2.3 - Maintenance and Inspec�on of Property
o 5.1.ii - Sale of Property
o 6. - Op�on to Purchase
PENDING DECISIONS:
Ownership – Have 2 Deed Restric�ons (OPTION 1 and OPTION 2)
• Define Qualified Household -
o Op�on 1: Owner occupied as primary residence for 10 months or more.
o Op�on 2: Owner occupied as primary residence for 10 months or more and works 30
hours per week for a qualified business.
If Op�on 2: Define Qualified Business – Legacy Homes Defini�on + County before
everyone.
Does it include remote workers? Is priority given to City businesses and then
those located in the 59937 Zip Code before allowing anyone to purchase?
• Should we require the property to be used for 3 years as primary before ren�ng to another
qualified household as their primary residence? No
• Administra�ve fee – Change the fee to a flat fee? What is the appropriate rate, if any? Flat Fee –
will create a chart of fees based on hours.
Rentals – Have 2 Deed Restric�ons (OPTION 1 and OPTION 2)
• Define Qualified Tenant:
o Op�on 1: Occupied as primary residence for 10 months or more.
Lease term 12 months
o Op�on 2: Occupied as primary residence for 10 months or more and works at least 30
hours per week for a qualified business.
Define Qualified Business – Legacy Homes Defini�on + County before everyone.
(Same as Ownership)
Lease term 12 months
• Determine minimum lease term:
o Current dra� requires at least one year lease based on City’s ADU deed restric�ons.
o Other term op�ons? Seasonal? No
• Do we remove paragraph in Sec�on 2 regarding construc�on of units since there are no price
restric�ons? Developer Agreement
• Do we remove paragraph in Sec�on 9 regarding maintenance? Remove
Annexa�on Policy – Development Agreement
• When do deed restric�ons apply?
o Size of annexa�on by pe��on?
• What percentage of units should be deed restricted?
o Mul�-family rentals
o Ownership units
• What type of deed restric�ons for ownership units if there are two types (example: primary
resident and primary resident w/ workforce requirement)?
o Percentage for primary residence?
o Percentage for workforce?
o Example: 70% of a development must serve primary residences with 20% of those units
being restricted to workforce. Follows minimum primary residences need per Roadmap
and the former Legacy Homes program for workforce housing.
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